**PULLED – This item will not be considered on October 19, 2022

ORDINANCE approving the creation of the Container Lease Fund (“the Fund”) with zero beginning fund balance to receive revenues from Container Lease Fees for Solid Waste Management Department (the “Department”); establishing the sources and uses of the Funds therein for the Operation, Maintenance and Support of the Department’s container lease related programs; appropriating any and all Funds received into the Fund for the purposes set out herein and authorized expenditures consistent with the purpose thereof

The Director of the Solid Waste Management Department (SWMD) recommends that City Councils approve the creation of a special revenue fund, called the Container Lease Fund for maintenance related services led by SWMD. 

The Container Lease Fund will ensure SWMD provides customers an adequate level of service regardless of market-based fluctuations. This proposal will dedicate revenues from container lease fees administered by SWMD to the Container Lease Fund. In turn, SWMD's container lease related expenditures will be paid out of this fund.

The Chapter 39 establishes a container lease fee of $0.57 per container, or $1.14 per customer household served. The container lease fee revenue assessed monthly by the department shall be deposited within the Container Lease Fund. This revenue supports appropriate maintenance and purchasing of both black and green containers, replacing parts and tools, rolling stock, and personnel to support deliveries in the four solid waste operations quadrants.

Currently, the container lease fee revenues of $4,500,000 and expenditures of $3,581,918.58 are budgeted in SWMD General Fund.  The fund for both revenues and expenditures will transfer to the Container Lease Fund upon approval, which will take effect July 1, 2022.Approved budget for revenues and expenditures detail are included in Attachment A.

The Container Lease Fund should be created only with the corresponding fee adjustment. Without the adjustment, the Container Lease Fund’s revenues will not sustain its projected expenditures.

FISCAL NOTE: No significant fiscal operating impact is anticipated as a result of this ordinance.

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Mark C. Wilfalk

Director

Solid Waste Management 

LD-CON- 0000000242 Solid Waste Management Container Lease Special Revenue Fund Creation 

Mark C. Wilfalk, SWMD Director – (832) 393-0431

Wealthia White, SWMD Assistant Director – (832) 393-0446