Page 439 - FY 2021-22 Blue Book Volume 2

SOLID WASTE RESOURCES REVENUE FUND

BASIS FOR THE PROPOSED BUDGET

The 2021-22 Proposed Budget for the Solid Waste Resources Revenue Fund (SWRRF) relates to current year
funding as follows:

Amount % Change

2020-21 Adopted Budget $ 392,727,609

2021-22 Proposed Budget $ 319,493,245

Change from 2020-21 Budget $ (73,234,364) (18.6%)

The Solid Waste Collection, Transfer, Recycling, Recovery of Waste Resources, and Disposal Fee (Solid Waste
Fee) is imposed on all single-family dwellings in the City and upon multiple-unit dwellings for which the City provides
refuse collection services. All receipts from the Solid Waste Fee are deposited into the SWRRF and are used for
all costs associated with the collection, disposal, and recycling of solid waste. Further, these revenues can be used
for the payment of principal and interest on both existing and future revenue bonds for the above listed activities
that are eligible for funding from bond proceeds.

BUDGET HIGHLIGHTS

• The City has not adjusted the Solid Waste Fee since 2009. The rate structure of $36.32 per month for
single-family dwellings and $24.33 for multi-family dwellings is insufficient to support the cost providing
these services. The subsidy provided by the General Fund in 2021-22 is $73,141,023. The Bureau of
Sanitation is working on a rate study to determine the fee level necessary to cover the cost of these services.

• Funding in the amount of $8.7 million in the General City Purposes (GCP) is provided for the Lifeline Rate
Program ($6.1 million) and solid resources collection and disposal service ($2.6 million) for other City
departments and special events. Pursuant to Proposition 218, the General Fund is required to reimburse
the SWRRF for providing subsidies for Lifeline customers and providing refuse collection services at City
facilities and special events.

• Solid waste tip fees (or landfill disposal fees) and Material Recovery Facilities (MRF) fees for residential
collection activity increased by $20 million from $71 million in 2019-20 to $91 million in 2020-21. They will
continue at $91 million in 2021-22. As a result of China’s National Sword Policy, which restricts waste and
metal imports into the country, the MRF’s costs for processing and marketing the City’s recyclables has
significantly increased. For administrative efficiency, tip fees for the Multi-family Bulky Item Program and
other special funds are paid by SWRRF and reimbursed from those special funds.

• Funding in the amount of $14 million for cash financing the Container Replacement Program (CRP) is
continued in 2021-22. The CRP annually replaces approximately 215,000 worn, damaged, and lost
residential containers. This funding also supports technology improvements for the container asset
management system.

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