10 cost recovery mechanism and ring fencing lgu accounts - s
DESCRIPTION
Taken from the "National Conference on Environment & Natural Resources (ENR) Financing" Sept. 23-24, 2009, Crowne Plaza Hotel, Quezon City, PhilippinesMore at http://ecosolutionsmanila.blogspot.com/TRANSCRIPT
HON. SENEN C. HON. SENEN C. LLORENLLOREN
Municipal CouncilorChairman, SWM - TWG
The Original Maker of The Original Maker of CalamayCalamay
JAGNA MUNICIPAL HALLJAGNA MUNICIPAL HALL
3RD Class Coastal Municipality 2008 Population – 36,528;
# of households- 6,134 2008 Income 55M (IRA 43M; LI
12M) 2008 Allocation for SWM – 1M Total Number of Brgys. – 33 Collection area – 8 barangays
(Metro Jagna Cluster) 1 Port Facility
67%
11%
20%2%
Bio-degradable Recyclable Residuals Special Waste
JAGNA HAS AN AVERAGE DAILY OF 10 TONS
OF SOLID WASTE
A. Organization of SWM-TWG & ESWMBB. Formulation of the 10-Yr SWM PlanC. Establishment of SWM Facilities & Acquisition of Equipments D. Implementation of the Enforcement PlanE. Sustainability Mechanisms 1. Social Marketing 2. Economic Enterprise
JAGNA SWM KEY IMPLEMENTATION JAGNA SWM KEY IMPLEMENTATION STAGESSTAGES
(2002 – PRESENT)(2002 – PRESENT)
A. Organization of SWM-TWG & A. Organization of SWM-TWG & ESWMBESWMB
Letter of Intent/MOA Signing LGU- EcoGov Creation of TWG / SWM Board – 2002
Orientation of the TWG & Board-2003
B. Formulation of the 10-Yr SWM PlanB. Formulation of the 10-Yr SWM Plan
Enactment of the SWM Ordinance (initial) Waste Characterization (WACS) – 2003 Consensus Building (Brgy Level) for the 10Yr Plan – SWM – 2003 Household Survey Disposal Practices Training of Trainors (Speakers Bureau)
IEC Campaign Purok level for the 7 Barangays – Orientation of Solid Waste Management Plan and Draft Plan RA 9003 (2003)
Finalization of 10Yr SWM Plan (2nd Qtr 2004) Presentation of Plan to SWMB & Approval: Adopted by MDC & SB
Enactment of SWM Ordinance (modified)
C. Establishment of SWM Facilities & C. Establishment of SWM Facilities & Acquisition of EquipmentsAcquisition of Equipments
Establishment of Central MRF (4th 2004)
Site-selection Sanitary Landfill & Inspection (Tubod Mar – March 2005)
Establishment of Central Composting Facility (2005)
Acquisition of Vermi Worms/Shredder
Assessment of Soil, Suitability of SLF by EMB, MGB 2007 – approved 2007
Orientation/Consolidation SLF area (Feb. 2008 Tubod Mar)
MOA Signing SLF (LGU–Brgy. Tubod Mar
Acquisition of Land for SLF 2007 Acquisition of Office equipments and vehicles
D. Implementation of the Enforcement PlanD. Implementation of the Enforcement Plan
Info-drive for Business establishment (SWM orientation/business permit – Dec. 2004)
Formulation of Enforcement Plan (1st Qtr 2006)
Establishment of SWM Office and Creation of SWM Action Officer & Personnel
IEC to 7 Brgys: March 2006
Training of Brgy & Mun. Enforcers (April)
Dry Run: Full SWM Process (May 1, 2006 – Aug. 2006)
Launching August 15, 2006 (Caravan, Parade, Program)
Enactment of M.O. No. 14-04-2005 on Regulation of Buy & Sell Operation of Scrap Materials
E. Sustainability MechanismsE. Sustainability Mechanisms Social Marketing Implementation(Behavior Change Tools Mechanism)
Creation of Social Marketing Core Group (April 2006)
Social Marketing Plan Formulation (June)
Launching of Social Marketing (Sept. 20, 2006) Goyo Boy Mascot
Enacted JAGNA YOUNG ECO-SAVERS CLUB Ordinance (M.O. No. 4-05-2006)
Orientation to teachers & Students: SWM & JYESC
Implementation of JYESC (Oct. 20, 2007)
Expansion of JYESC to JCES (June 27, 2008)
Economic Enterprise (2008) (Jagna SWM Code - Art. 16, Sec. 58)
Cost Recovery Ring Fencing (June 2008) SWM Cost-Recovery Plan Finalization
Bottom Lines in Waste Bottom Lines in Waste ManagementManagement
1. Primary Objective: Waste diversion2. Revenue Objective: Recover the costs of
providing a quality, consistent and dependable SWM Program.
3. Social Objective: Improve the health and sanitation conditions and preserve the environment.
4. Social Ownership: Ensure the continuity and sustainability of dependable SWM Program.
What is Cost-Recovery?What is Cost-Recovery?
Cost Recovery is the process of passing on to the waste generators or service users the full or partial cost of collecting wastes, composting, recycling, and disposing in the landfill
For example:
Total Cost P1,000,000Recovered Costs (fees, etc.) 600,000 Subsidy 400,000 Cost Recovery Rate 60%
1. GEN MGT & Admin (Inc. IEC)
1. Collection2. Composting
3. Recycling
4. Disposal
SOLID WASTE MANAGEMENT PROCESSES
EXPENSES 2009 2010 2011
Salaries and Wages P 520,000 P 520,000 P 520,000
Fuel & Lubricants 100,000 120,000 120,000
Supplies and Materials 62,000 65,000 65,000
Seminars and Training 25,000 25,000 25,000
Repairs and Maintenance 50,000 55,000 60,000
Office Supplies 4,000 5,000 5,000
Travelling Expenses – Local 5,000 10,000 15,000
Depreciation Expenses 6,500 7,000 7,500
TOTAL EXPENSES P 772,500 P 807,000 P 817,500
DETAILS 2008 2009 2010 2011INCOME (Actual )
Vermi Cast 47, 250 P 70,000 P 80,000 P 100,000
Recyclables 8,500 10,000 11,000 12,100
Permit To Transport 5,500 8,500 10,000 15,000
Biodegradable collection fee 11,000 13,500 14,850 16,335
Households Garbage Fee:
Looc 12,960 13,000 15,600 16,000
Poblacion 12,000 12,000 15,600 17,100
Tejero 10,560 11,000 20,000 22,600
Canjulao 12,000 12,000 27,600 30,100
Pagina 10,800 11,000 16,800 20,285
Can-upao 1,500 2,000 15,600 25,000
Bunga Mar 4,500 5,000 17,000 23,500
Pangdan 3,600 4,000 14,750 21,500
Garbage Fees (Business) 180,000 200,000 220,000 242,000
TOTAL INCOME P 320,170 P 372,000 P 478,800 P 561,520
2009 2010 2011
LGU SUBSIDY PERCENTAGE
52% 41% 31.4%
COST RECOVERYRATE 48% 59% 68.6%
2009 2010 2011
EXPENDITURES P 772,500 P 807,000 P 817,500
INCOME 372,000 478,800 561,520
LGU SUBSIDY (P400,500) (P328,200) (P255,980)
What is Ring-Fencing?What is Ring-Fencing?
Ring fencing means:
Keeping the resources earmarked for implementation exclusive to the program
Plowing back revenues generated through activities to the program for use in implementation.
JAGNA SWM RING FENCING STATUSJAGNA SWM RING FENCING STATUS Jagna SWM Code – Art. 18, Sec. 60, 61 Municipal Resolution No. 12-03-2008 to open special account and separate bank account for SWM (FCB Checking Account Number 19-0106-00028-2)
COMPONENTS OF SWM RING-COMPONENTS OF SWM RING-FENCED ACCOUNTFENCED ACCOUNT
Financial Guidelines on collection, utilization, recording and reporting.
Accounting has already segregated to all SWM transactions.
Treasurer’s Office has provided a separate Official Receipt booklet for SWM collections.
As part of the business license renewal, the applicant has to pass through the SWM office for assessment of corresponding fees to be included in the annual license fees.
Legal Bases For Cost-Recovery/Ring-Legal Bases For Cost-Recovery/Ring-FencingFencing
RA 9003 (ESWM Act of 2000) authorize LGUs to impose adequate fees to pay for the cost of preparing, adopting and implementing SWM plans and programs.
RA 7160, Sec. 17 (Local Government Code)
M.O. No. 20-11-2004 (Modified SWM Ord.)
M.O. No. 4-02-2009 (JAGNA SWM CODE)
Ring fencing of SWM fund allows implementors to monitor performance and do proper budgeting and planning. Funds are more wisely used. Reliable data is available to determine the succeeding years subsidy level and for validating existing tariff rates
The system helps keep the SWM team
focused on their performance targets.
Financials are stronger due to increased revenues and controlled
expenses.
Why did Jagna decide to Why did Jagna decide to implement cost-recovery and ring implement cost-recovery and ring fencing? fencing?
High cost of providing the service
LGU has limited funds
Collection is done daily without regard for operating cost
Concern for sustainability of the program
How did Jagna do cost-recoveryHow did Jagna do cost-recovery
Cost and revenue analysis was conducted in January 2008
Action planning was conducted to address low collection efficiency of from garbage fee at 47% and high subsidy level at 77%
Formulated financial management guidelines in March 2008
Opened a separate bank account exclusively for SWM in June 2008
Attended business planning workshops in May and August 2008
Reviewed fee structure (business vis-à-vis households) in the context of polluters pay principle
Enacted the SWM code Finalized the cost-recovery plan Conducted regular review of operation
Tapping opportunities for substantial and sustainable revenue growth.
Cost recovery plan targets only operating costs and does not take into consideration capital investments required down the road
Maintaining quality of service so that people will continue paying.
The political will of the leaders and the commitment of the implementors are critical to a successful program.
Creation of SWM Board & MOA Creation of SWM Board & MOA Signing with ECOGOV and DENRSigning with ECOGOV and DENR
Jagna Central MRFJagna Central MRF
Sanitary Sanitary Landfill Landfill
SiteSite
Jagna Central Jagna Central Composting Composting
FacilityFacility
Formal Launching of SWM August 15, 2006
(Caravan at 7 Barangays Collection Area)
SWM Official ReceptaclesSWM Official Receptacles
Municipal Municipal Enforcer on Enforcer on
DutyDuty
Biodegradable Biodegradable FeeFee
Billboard (16’ x 10 ft., tarpaulin)
LAWAS PANGGA-ON, BASURA ATIMANON.LAWAS PANGGA-ON, BASURA ATIMANON.
MAGAMITPA
DELIKADO
MALATADILI NA
MAGAMIT • Pakpak sa prutas ug utanon • Sagbot, dahon, abo • Sinapsap ug sinapilya sa kahoy • Tae sa mananap (baka, baboy, kabaw, kabayo, kanding ug uban pa) • Bagaso, saw dust • Bagaw sa itlog • Tahop• Hasang, tinae ug tunok sa isda
• Battery • Bombilya/flourescent • Hupas nga medicina • Chemical Containers • Guba nga appliances • Used oil
• Sanitary napkins ug diapers • Guba nga sapatos, tsinelas ug sandals • Disposables ( plastic glass, paper plate, picnic box) • Guba nga tela ug trapo • Putos nga carton (medisina,sabon) • Cellophane ug ubang humukon nga plastic • Papel ug cartoon nga dili na magamit o lata na • Styrofoam • Ceramics • Sachets
• Papel ug carton nga maayo pa • Puthaw • Lata • Hard plastics • Botelya / Buak nga botelya • Ligid sa sakyanan • Botelya sa medisina ug ubang grapa • Newspaper• Botelya sa purified water (PET)BEMOEco Gov DENR
BROUGHT TO YOU BY: IN PARTNERSHIP WITH:
JAGNA
Creation of SWM MascotCreation of SWM Mascot
Creation of Jagna Young Eco-Savers Club Creation of Jagna Young Eco-Savers Club by virtue of M.O. No. 4-05-2006by virtue of M.O. No. 4-05-2006
Formal launching on July 17,
2007
Redemption of recyclable items
every Wednesday
SWM Garbage SWM Garbage CompactorCompactor
SWM Dump SWM Dump TruckTruck
Provincial SWM AwardProvincial SWM Award
P
C
I
JAGNA’S 3 WORDS TO JAGNA’S 3 WORDS TO REMEMBERREMEMBER
– Political Will
– Commitment
– Innovativeness