Kern’s Universal-Collection Fund Plans a $356,552 Operating Deficit

Expense growth outruns the revenue plan

Kern County’s Universal Collection Enterprise Fund moves from a $26,087 operating gain in 2024–25 to a budgeted $356,552 operating loss in 2025–26. The $382,639 swing occurs even though operating revenue increases.

Operating revenue rises 4.7%, from $26,630,706 to $27,894,002. Operating expense rises 6.2%, from $26,604,619 to $28,250,554. What’s the Scoop With Broach calculated those rates from printed pages 337–338 of the adopted budget.

Because the program finances universal waste collection, a narrow percentage mismatch matters at this scale: expenses grow about $1.65 million while revenue grows about $1.26 million.

The plan uses 9.4% of opening net position

The fund begins with $3,795,797 in net position and budgets an ending amount of $3,439,245. The planned $356,552 decline equals 9.4% of the opening balance.

Taxes provide $27,681,394 of the operating revenue. Services and supplies account for $28,225,232 of expense, up 6.2% from the latest actual year; other charges add $25,322.

The adopted document contains no separate capital contribution or transfer that reverses the loss. Its financing plan therefore explicitly relies on accumulated position for the gap.

Limits and the next accountability measure

The summarized fund statement does not disclose households served, route miles, vendor rates, contamination charges or delinquency. It cannot show whether the expense increase reflects contract escalation, fuel, volume or a service change.

The finding is limited to the county’s authorized plan, not a claim that a rate increase is certain. This report’s contribution is the growth comparison and balance-draw calculation; actual tonnage, contract invoices and year-end results are the next test.