Agenda Item Title:
Approve Resolution No. 2024-096 - A Resolution Providing Financial Assurance For Subtitle D Landfills And Authorizing A Transfer Of $500,000 From
Origination Group:
Public Works Committee
Origination Meeting Date:
11/26/2024
City Council Hearing Date:
12/02/2024
Staff Contact:
Daniel Ainslie
Agenda Item Summary:
Federal and state laws require landfills to have enough funds set aside to close all active landfill cells when needed. By the end of this year, approximately $1.5 million is required to meet this obligation. Currently, the Solid Waste Fund does not have enough reserves to cover this amount.
To address this, the City Council is being asked to approve two transfers:
$500,000 from the Water Enterprise Fund (Fund 602)
$500,000 from the Wastewater Enterprise Fund (Fund 604)
These funds, along with existing Solid Waste Fund resources, will be placed into a certificate of deposit (CD) at Black Hills Community Bank. This ensures compliance with regulations and allows the money to earn interest, which will be credited as usual. The CD will be managed and updated annually by the City, with SDANR maintaining required signing authority.
Without this transfer, the Solid Waste Fund would have to cancel important planned projects to meet the requirement. This temporary loan provides a responsible solution, allowing the Solid Waste Fund to repay the amount as its cash balance improves.
This is a responsible and efficient solution to fulfill our legal and financial obligations.
Funding Source & Fiscal Impact (if applicable):
Funding | Cost Center |
---|---|
Enterprise | Water |
Enterprise | Water Reclamation |
Is Funding Budgeted?:
Budgeted