Fiscal Year 2013 Recommended Budget Book - Lake County

Department: Public WorksProgram: CovantaActual Adopted Estimated BudgetExpenditures/Positions FY 2011 FY 2012 FY 2012 FY 2013Expenditures by CategoryPersonal Services $ 35,279 $ 35,838 $ 36,948 $ 36,602Operating 5,276,792 5,579,710 5,579,710 6,013,467Capital Outlay - - - -Subtotal Operating Expenditures $ 5,312,071 $ 5,615,548 $ 5,616,658 $ 6,050,069Capital Improvements - - - -Debt Service 80,873 1,043,050 1,043,050 1,036,900Grants and Aids - - - -Transfers - - - -Reserves - - - -Total Operating Expenditures $ 5,392,943 $ 6,658,598 $ 6,659,708 $ 7,086,969Service Charge Reimbursements - - - -Net Expenditures $ 5,392,943 $ 6,658,598 $ 6,659,708 $ 7,086,969Expenditures by FundLandfill Enterprise $ 5,392,943 $ 6,658,598 $ 6,659,708 $ 7,086,969Total Expenditures $ 5,392,943 $ 6,658,598 $ 6,659,708 $ 7,086,969Highlights:Personal Services for Fiscal Year 2013 does not include any salary increases for employees and reflects an increase from $5,500to $6,900 in life and health insurance costs. The program includes 40 percent of the Financial Coordinator's salary and benefitswhile the other 60 percent is a personal services administration expense of the Solid Waste Division. This position has primaryresponsibility for monitoring contract compliance for the Covanta contract.Operating Expenses for Fiscal Year 2013 associated with Covanta will be paid in part from a General Fund interfund transfer inthe amount of $3,299,120, and is primarily comprised of the $5,504,339 annual contractual payment to Covanta. All othersignificant expenditures relate to the Covanta program and include $75,000 in professional services, $200,000 in utility servicesand $221,500 in operating supplies. Additionally, the budget reflects the increased risk insurance allocation from 25 percent to100 percent for all County departments.The Covanta debt payment was restructured in FY 2010 on the waste-to-energy plant which is wholly guaranteed by the servicefee Lake County pays to Covanta for the disposal of waste. The debt is a $10 million Solid Waste Note Payable issued onNovember 20, 2002 that refinanced previously outstanding debt for a ten-year period at a fixed interest rate of 3.69 percent withSunTrust Bank. Principal payments of $1 million are payable annually on December 1 and interest is payable semi-annually onJune 1 and December 1, with the final payment due on December 1, 2012. The note is secured by solid waste system netrevenues and a covenant by the county to budget and appropriate a sufficient amount to pay the debt service when due. There is asecond debt instrument in the Lake County Resource Recovery Industrial Development Refunding Revenue Bond issued onDecember 14, 2004 in the amount of $51,515,196. The Series 2004 Bonds were refunded on February 8, 2010 by the issuanceof a bond for $20,234,780 bearing an interest rate of 4.16percent per annum with a maturity date of October 1, 2013. This debt isnot an obligation of Lake County; however, the County is responsible for the debt service through an agreement with Covanta,Inc.F - 152