municipalities and to draw down the balance in the Reserve Fund to an appropriate level. There is a risk that should the Authority experience financial stress, significant increased assessments to the municipalities may be required in future years. Annual rate increases are being proposed in the 15-year plan in order to minimize this risk.
Financial Matters:
The City's budget requirements will differ from those presented by EWSWA. This difference is due primarily, to the following:
The City's budget for tipping fees had been set at a level of 52,000 tonnes for 2019, which differed from the EWSWA's budgeted tonnage of 51,000 tonnes. The City sets its tonnage budget based on historical collection amounts and expected trends for the upcoming year. This includes amounts for bulk collection and yard waste as well. For 2020 both the City and EWSWA have increased expected tonnage to 54,000 tonnes, bringing both budget's into line with one another.
With respect to Landfill #3 Perpetual Care costs, a reserve account was established in 2014 as a means to maintain a consistent budget for this expenditure while absorbing leachate cost fluctuations as a result of clay capping that occurred at the Landfill as part of the Herb Gray Parkway project. Despite EWSWA proposed reductions in Landfill #3 costs over the past few years, the City's budget has been maintained at its current level with annual surpluses and deficits flowing through this account. The current balance in Reserve #1790 is $88,936, with no transfers being made to the reserve in 2017 or 2018. As part of the 2019 year-end process, a determination of whether or not this reserve should continue to be maintained, will be made.
As a result of the above, the City's 2020 budget requirements for landfill tipping fees and perpetual care costs for Landfill #3 are as follows:
| 2019 City Budget | 2020 EWSWA Allocation | 2020 Budget Increase/ | |
|---|---|---|---|
| (Decrease) | |||
| Fixed Fees | $4,407,225 | $4,640,815 | |
| Tipping Fees | $1,929,168 | $2.052,000 | |
| EWSWA Fixed Fee and Tip Fees - | $6,336,393 | $6,692,815 | $356,422 |
| Landfill #3 Perpetual Care Costs - | $707,347 | $563,365 | $0 |
Budget Issue #2020-0238 in the 2020 Operating Budget document, accounts for this budget increase.
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