TITLE
Title
SOLID WASTE BUDGET AMENDMENT: ADJUST WHITE GOODS DISPOSAL FEE REVENUE - $97,952
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SPONSOR
Sponsor
J. Leslie Bell
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BACKGROUND
Background
Pursuant to NCGS 130A-309.80, the North Carolina White Goods program was created to discourage the illegal disposal of white goods and encourage recycling of refrigerant gases. The state program is funded by a $3.00 disposal tax on the retail sale of all white goods. The NC Department of Revenue (NCDOR) collects the disposal taxes and redistributes these funds to counties, who are required to spend this revenue on a combination of the following expenses directly related to the management of their White Goods programs:
-operating costs;
-capital improvements; and/or
-clean-up of illegal dump sites.
White Goods Disposal Fee funding is distributed to counties on a quarterly basis and payments are issued by NCDOR approximately 45 days after the end of the fiscal quarter. To remain eligible to receive tax distributions counties must submit Annual Financial Information Reports (AFIR) verifying that the unappropriated portion of White Goods disposal fee fund balance is equal to or less than 25% of the total funding the county received, or would have received, during the prior fiscal year. Guilford County annually appropriates these funds towards a combination of operating, capital and illegal dump site clean-up expenses in its White Goods program housed at the Scrap Tire and White Goods Collection Facility located at 2138 Bishop Road, Greensboro, NC. However, as a result of lump sum disposal tax payments made by a few large corporate businesses, Guilford County received the equivalent of an annual White Goods Disposal fee allocation during the first two quarters of FY 2017-18. The distribution breakdown is listed below:
Quarter 1 (FY 2017-18): $57,442
Quarter 2 (FY 2017-18): $178,248
Total: $235,690
Guilford County did not receive White Goods disposal tax distributions during the third and fourth quarters of FY 2017-18, nor did it receive distributions during the first and second quarters of FY 2018-19. As of December 2018, the unappropriated balance in White Goods Disposal Fee funding is $97,952, which is above the threshold amount of $58,923 the county must report in undesignated fund balance to regain eligibility to receive White Goods Disposal tax distribution revenue. Staff requests to adjust the FY 2018-19 Solid Waste budget by decreasing the amount of Federal/State revenue by $97,952 and increase the Appropriated Fund Balance in this budget by the same amount. This change will more accurately reflect the revenue sources for FY 2018-19 and eliminate the county's unappropriated White Goods disposal fee fund balance, making Guilford eligible to receive tax distributions once again.
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BUDGET IMPACT
Budget Impact
Budget Ordinance Amendment
General Fund
$97,952 Decrease in Federal/State Revenue (White Goods Disposal Tax Rev.)
$97,952 Increase in Appropriated Fund Balance (White Goods Disposal)
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REQUESTED ACTION
Requested Action
Approve an amendment to the FY 2018-19 Solid Waste budget to decrease Federal/State Revenue from White Goods Disposal tax distributions from the NC Department of Revenue by $97,952 and increase White Goods Appropriated Fund Balance by the same amount in order to meet the State's maximum White Goods fund balance requirement and resume receipt of disposal fee payments.
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