TO: Board of Directors
FROM: Steven Lederer, Agency Manager
REPORT BY: Steven Lederer, Agency Manager
SUBJECT: Board Discussion Regarding Members Grant Program and Operating Reserves
RECOMMENDATION
title
BOARD DISCUSSION REGARDING MEMBERS GRANT PROGRAM AND OPERATING RESERVES
DISCUSSION AND POSSIBLE ACTION: Agency Manager to present regarding previous uses of a Grant Program that has been in place to facilitate waste-related projects by Agency Members, as well as to provide information on the operating reserves policy. Input from the Board, which will be used to draft future policies is sought, though no final Board action is expected.
body
BACKGROUND
As a result of high volumes of debris being processed following the large fires of 2017, 2018, and 2020, the Agency’s fund balance increased from a couple of hundred thousand dollars to over $1.5 million. The Agency has a policy that requires only $35,000 of fund balance be reserved, but that policy and reserve amount has not been reviewed in the several years.
Due to the high fund balance the Agency, at Board direction, issued a Notice of Funds Availability (NOFA) to allow Member agencies to apply to use some of that fund balance for waste-related projects in their jurisdictions. The original NOFA is attached. Over the years each of the members have applied for grants, and several have followed through and acted on these requests after Board approval. A summary of those requests is below:
• In August 2020 and June 2023, the UVWMA board approved a proposed project from the City of St Helena, $120,000 for the Money Way Waste/Recycling Consolidation Project. St. Helena did not move forward with that project. In May 2024, UVWMA approved a project revision to instead purchase new recycling, compost and trash containers for City of St Helena parks. UVWMA staff recently viewed the newly installed bins and will be assisting with appropriate signage for each bin, showing what can go in. UVWMA staff have not received a reimbursement request from the City of St Helena.
• In August 2020, the UVWMA board approved a proposed project from the Town of Yountville, $77,679.56 for a mulching lawnmower and new trash and recycling bins through public property in town limits. UVWMA received and paid reimbursement requests totaling $76,651.26 in November 2020 and January 2021.
• In October 2020, the UVWMA board approved a proposed project from Napa County, $90,000 for security cameras to deter illegal dumping and message boards. UVWMA received and paid a reimbursement request of $67,300.64 in April 2024.
• In February 2023, the UVWMA board approved a proposed project from the Town of Yountville, $98,500 for “Big Belly” recycle, compost and trash bins in high traffic areas. UVWMA received and paid a reimbursement request of $98,500 in February 2025.
• In June 2023, the UVWMA board approved a proposed project from the City of Calistoga, $100,000 for a new street sweeper. UVWMA received and paid a reimbursement request of $100,000 in April 2025.
As the Agency still has a substantial fund balance, staff recommends the Agency continue the grant program. An updated draft solicitation is attached for information.
As the fund balance was built with one-time revenues that may not recur, and will decrease over time with this grant program, it is important that the Board consider the level of fund balance to maintain in the future. Typically, agencies maintain fund balances between 15-50% of their annual operating expenses (depending on the volatility of both revenue and expenses). Additional reserves may be retained for capital investments, debt, or other needs. The Agency’s revenues are generally quite stable (a percentage of the company’s revenue), and expenses are quite controllable from year to year. Staff thus recommends the Board discuss this, and direct staff to return to the Board with a policy to maintain reserves at 35% of annual operating expenses.
FISCAL & STRATEGIC PLAN IMPACT
|
Is there a Fiscal Impact? |
No |
|
Is it currently budgeted? |
Yes |
|
Where is it budgeted? |
$300,000 of grants are included in this year’s adopted budget |
|
Is it Mandatory or Discretionary? |
Discretionary |
|
Discretionary Justification: |
The Grant program supports various waste related programs for the JPA’s members. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: Not a project