SOLID WASTE COST OF SERVICE STUDY
APRIL 13, 2023
PREPARED BY
SOLID WASTE CONSULTANTS
TO LOCAL GOVERNMENT
Exhibit 2
PAGE INTENTIONALLY LEFT BLANK
Solid Waste Rate Study
Table of Contents
1. Executive Summary 1
2. Approach and Limitations 6
2.1 Study Approach 6
2.2 Limitations 6
3. Financial Plan 7
3.1 Comparison of Projected Revenues with Revenue Requirement 7
3.2 Projected Operating Results if Rates are Not Adjusted 7
3.3 Projected Operating Results with Proposed Rate Adjustments 9
3.4 Projected Long-term Operating Results with Proposed Rate Adjustments 10
4. Rate Design 12
4.1 Revenue Requirement 12
4.2 Rate Design Method 12
4.3 Rate Design Calculations 13
4.4 Projected Rate Revenue based on Proposed Rate Adjustments 17
5. Percent of Customers Affected 21
Appendix A- Revenue and Expense Detail
Table of Tables
Table 1 – Proposed Monthly Rates .................................................................................................... 4 Table 2 – Projected Operating Results – Without Rate Adjustments .............................................. 7 Table 3 – Projected Capital Expenditures .......................................................................................... 8 Table 4 – Analysis of Cash Without Rate Adjustments ..................................................................... 8 Table 5 – Projected Operating Results – With Rate Adjustments .................................................. 10 Table 6 – Analysis of Cash With Proposed Rate Adjustment ......................................................... 10 Table 7 – Projected Revenue Requirements ................................................................................... 12 Table 8 – Allocated Rate Revenue Target ........................................................................................ 13 Table 9 –Operating Cost Statistics ................................................................................................... 15 Table 10 – Direct Cost for Each Level of Service ............................................................................. 16 Table 11 – Indirect Cost and Sum of Total Cost for Each Level of Service ..................................... 17 Table 12 – Summary of Automated Cart Rate Revenue ................................................................. 18 Table 13 – Summary of Frontload Bin Rate Revenue ..................................................................... 19 Table 14 – Summary of Rate Revenue and Reconciliation to Revenue Requirement .................. 20 Table 15 – Percent of Customers Affected ...................................................................................... 21
Table of Charts
Chart 1 – Rate Comparison – Monthly Rate for Single-family Collection Service ........................... 5 Chart 2 – Projected Operating Results Without Rate Adjustments ................................................. 9 Chart 3 – Projected Operating Results With Rate Adjustments .................................................... 11
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1. EXECUTIVE SUMMARY
The City generates revenue to pay for its solid waste collection service costs through rates charged to its residential customers. The City separately records its revenues and expenses for its solid waste operations in the solid waste enterprise fund. The solid waste enterprise fund maintains a cash balance to fund its ongoing ope rations. The revenues of the solid waste enterprise fund are intended to fully cover the City’s current and future solid waste operating and capital costs, and maintain its cash balance. Although the City’s operating costs have increased due to inflation, and other significant factors, the City has not increased the solid waste rates it charges to its customers since 2010.
Significant Factors Driving Cost Increases
China Ban on Recyclables
At the beginning of 2018, China reduced the level of acceptable contamination in the recyclable material it received, and limited the type of recyclable materials it would accept. As a result, the worldwide market value of recyclables decreased significantly, reducing the revenue that solid waste service providers (including the City) previously used to offset their operating costs. This market disruption continues to create upward pressure on the City’s operating costs.
Commercial Franchising
The City re cently implemented significant changes to the solid waste collection services it provides in the City . In December 2021, the City implemented a franchise system for businesses, and for large multi -family complexes with five (5) or more units. Under the franchise system, four (4) private haulers now provide exclusive collection service in four (4) separate geographic areas of the City. The City is now only responsible to collect waste and recyclables from single -family customers, and from small multi -family customers with two (2) to four (4) dwelling units.
In previous years, rates for residential collection services have not been set at a rate to fully recover costs associated with those services. Furthermore, the rates for residential and multi-family customers with 2-4 units have not changed since 2010. The reduction in the City’s overall solid waste customer base brought about by franchising the business and large multi-family customer sectors has resulted in the City having fewer customers over which it is able to allocate its fixed costs. This has resulted in additional upward pressure on the cost per unit for the remaining residential customers.
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SB 1383
In addition to the significant change brought about by the franchising of the commercial waste sector, the City is in the midst of complying with the most sweeping changes to State solid waste regulations in the last thirty years. SB 1383 establishes statewide methane reduction targets, and is bringing about several fundamental changes to municipal solid waste management.
Under SB 1383, all local jurisdictions must arrange for the collection of organics, ensure that edible food is recovered, conduct education and outreach, purchase a certain amount of organic content products, se cure access to organic processing capacity, and conduct extensive monitoring, compliance and enforcement activities. As a result, solid waste rates throughout the State are increasing significantly.
Closure of Scholl Canyon Landfill
The Scholl Canyon Landfill is expected to permanently close around December 2025. After the landfill closes, the City’s trucks will be required to travel farther to empty their loads, and may be required to use a disposal facility with a higher tipping fee. As a result, the City expects it will be required to purchase two additional route vehicles, and incur additional operating costs to use a more distant landfill. These expected additional operating costs will create additional upward pressure on the City’s solid waste rates.
Industry Trends
Additionally, there are several current trends in the solid waste industry that are creating extraordinary cost increases. These trends include shortages of refuse truck drivers, supply chain delays in the purchase of trucks, and increased costs for raw materials such as steel used to manufacture trucks and containers.
Required Rate Adjustments
Operating Cash
As a result of the impact of these industry trends, the China Ban, the cost of complying with SB 1383, and the divestiture of its business and large multi-family operations, the revenue and cost structure of the City’s solid waste enterprise fund has changed significantly. To meet the current and future financial obligations of the solid waste enterprise fund, the City must increase the rates it charges to its single family and small multi-family residential customers. If the City does not increase current collection rates, and rates remain at their current levels, the cash balance in the enterprise fund will be completely depleted in fiscal 2024.
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Collection Rates
To fully fund the City’s solid waste operations over the next five years, the City’s collection rates must be increased on average by approximately 90% on July 1, 2023, followed by annual increases of 45% in July 2024, and 25% on July 2025. In July 2026 and 2027, collection rates will need to be increased by 10% each year.
In addition, the City’s rates, which have not increased since 2010, do not accurately reflect the City’s current cost of service. As a result, t he initial rate adjustment on July 1, 2023, will restructure the rate schedule to ensure that the rates more accurately reflect the City’s actual cost of service. As a result, not all customers will receive the same initial rate adjustment. For example, as shown in Table 1 on page 4, single-family residential customers with a 64-gallon container will initially receive a 146% increase. However, single-family customers with a 96- gallon container will initially receive a 76% increase. After the rates are restructured in July 2023, customer rates will be adjusted across the board by the same percent each year on July 1st. Table 1 on page 4 shows the current and proposed rates for customers with most common levels of service. The City is seeking approval of these rates for the next five years.
Although the City’s rates need to be significantly increased, the same trends that are creating upward pressure on the City’s rates are also impacting all other jurisdictions in California. Even after the City’s rates are adjusted, they are expected to be reasonable in relation to rates for similar solid waste collection service in other jurisdictions. A comparison of the City’s single- family rate to those in other jurisdictions is shown in Chart 1 on page 5.
Proposition 218
The City’s collection rates are subject to Article XIII D, Section 6 of the California Constitution (Proposition 218). When setting property-related user fees (such as solid waste collection rates), local jurisdictions must satisfy the following requirements:
• Revenues derived from the fee or charge must not exceed the funds required to provide the property-related service;
• Revenues derived from the fee or charge must not be used for any purpose other than that for which the fee is imposed;
• The amount of a fee or charge imposed upon any parcel or person as an incident of property ownership must not exceed the proportional cost of the service attributable to the parcel.
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The City is required to set a public ‘majority protest’ hearing, and provide all record owners of each identified parcel no less than 45 days prior notice of the proposed rates. Unless a majority of customers object to the proposed rates, the City Council may adopt the proposed rates at the public hearing upon a majority vote.
Table 1 – Proposed Monthly Rates
Description Current Rate
Proposed
Rate Effective
July 1, 2023
Proposed
Rate Effective
July 1, 2024
Proposed
Rate Effective
July 1, 2025
Proposed
Rate Effective
July 1, 2026
Proposed
Rate Effective
July 1, 2027
Automated Cart Service - Single Family
Monthly Rate Standard 64 gallon cart $11.72 $11.72 $28.78 $41.73 $52.16 $57.38 $63.12 Adjustment Amount $17.06 $12.95 $10.43 $5.22 $5.74
Adjustment Percent 146% 45% 25% 10% 10%
Monthly Rate - Standard 96 gallon cart $18.34 $18.34 $32.34 $46.90 $58.63 $64.49 $70.94 Adjustment Amount $14.00 $14.56 $11.73 $5.86 $6.45
Adjustment Percent 76% 45% 25% 10% 10%
Automated Cart Service - Multi-family 2-4 unts
Monthly Rate - Standard 64 gallon cart $14.82 $14.82 $28.78 $41.73 $52.16 $57.38 $63.12 Adjustment Amount $13.96 $12.95 $10.43 $5.22 $5.74
Adjustment Percent 94% 45% 25% 10% 10%
Monthly Rate - Standard 96 gallon cart $18.34 $18.34 $32.34 $46.90 $58.63 $64.49 $70.94 Adjustment Amount $14.00 $14.56 $11.73 $5.86 $6.45
Adjustment Percent 76% 45% 25% 10% 10%
Monthly Rate - Additional 64 gallon cart $11.72 $11.72 $28.78 $41.73 $52.16 $57.38 $63.12 Adjustment Amount $17.06 $12.95 $10.43 $5.22 $5.74
Adjustment Percent 146% 45% 25% 10% 10%
Front Loading Bin Service - MFR 2-4 units
Monthly Rate - One cubic yard bin 1/week $33.00 $33.00 $87.45 $126.80 $158.50 $174.35 $191.79 Adjustment Amount $54.45 $39.35 $31.70 $15.85 $17.44
Adjustment Percent 165% 45% 25% 10% 10%
Monthly Rate - Two cubic yard bin 1/week $45.35 $45.35 $109.95 $159.42 $199.28 $219.21 $241.13 Adjustment Amount $64.60 $49.47 $39.86 $19.93 $21.92
Adjustment Percent 142% 45% 25% 10% 10%
Monthly Rate - Three cubic yard bin 1/week $58.15 $58.15 $132.44 $192.04 $240.05 $264.06 $290.47 Adjustment Amount $74.29 $59.60 $48.01 $24.01 $26.41
Adjustment Percent 128% 45% 25% 10% 10%
Front Loading Bin Service - MFR 2-4 units - Additional Pickups Monthly Rate - One cubic yard bin 1/week $22.63 $22.63 $87.45 $126.80 $158.50 $174.35 $191.79 Adjustment Amount $64.82 $39.35 $31.70 $15.85 $17.44
Adjustment Percent 286% 45% 25% 10% 10%
Monthly Rate - Two cubic yard bin 1/week $22.63 $22.63 $109.95 $159.42 $199.28 $219.21 $241.13 Adjustment Amount $87.32 $49.47 $39.86 $19.93 $21.92
Adjustment Percent 386% 45% 25% 10% 10%
Monthly Rate - Three cubic yard bin 1/week $22.63 $22.63 $132.44 $192.04 $240.05 $264.06 $290.47 Adjustment Amount $109.81 $59.60 $48.01 $24.01 $26.41
Adjustment Percent 485% 45% 25% 10% 10%
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Chart 1 – Rate Comparison – Monthly Rate for Single-family Collection Service
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2. APPROACH AND LIMIT A TIONS
2.1 Study Approach
This cost of service study consists of a financial plan analysis, and a rate design analysis.
• Financial Plan Analysis – The ‘big picture.’ This analysis considers the total amount of current and projected operating and capital expenditures, available cash, any planned debt financing, and required debt service coverage requirements. The result of this analysis is the projected revenue requirement, which is matched with the projected rate revenues from the proposed rates. This ensures that the City will generate sufficient revenues to meet its financial obligations.
• Rate Design Analysis – This analysis identifies the cause -and-effect relationship between the activities undertaken and resources used to provide various levels of service. Rates are designed to reflect the cost of service and proportionality requirements of Proposition 218.
2.2 Limitations
The financial plan analysis is subject to certain limitations. The pro-forma projections in the financial plan are based on assumptions regarding future inflation, and planned capital expenditures, etc. There will usually be differences between projected and actual results, because events and circumstances frequently do not occur as expected, and those differences may be material. Moreover, these projections were prepared for the sole use of the City for the purpose of analyzing the City’s solid waste rates. They are not intended to be used for any other purpose.
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3. FINANCIAL PLAN
3.1 Comparison of Projected Revenues with Revenue Requirement
The financial plan for the solid waste enterprise fund compares the projected rate revenues with the projected revenue requirement (the enterprise fund’s projected operating expenses net of any use of cash balance). The enterprise fund’s projected operating results were projected over a five-year period under two scenarios. Section 3.2 below shows the projected operating results assuming that rates are not adjusted and remain at current levels. Section 3.3 further below shows the projected operating results assuming that rates are adjusted to generate revenue that will meet the enterprise fund’s financial obligations over a five-year period.
3.2 Projected Operating Results if Rates are Not Adjusted
Table 2 below shows the operating results for the solid waste enterprise fund if rates are not adjusted. Table 2 shows that the enterprise fund is currently experiencing an annual shortfall, which is expected to grow significantly over the next five years, if rates are not adjusted.
Table 2 – Projected Operating Results – Without Rate Adjustments
Table 3 on the following page shows a breakdown by asset type of the projected capital expenditures included in the projected operating results.
Description Actual
FY 2020
Actual
FY 2021
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Revenues:
Rate Revenue $17,397 $17,347 $11,404 $6,769 $6,589 $6,654 $6,721 $6,788 $6,855 Other Revenue 7,808 6,409 5,837 4,940 5,022 5,151 4,848 4,444 4,722 Total $25,204 $23,756 $17,241 $11,708 $11,611 $11,805 $11,569 $11,231 $11,577 Expenditures:
Labor $9,955 $8,649 $6,107 $9,147 $8,297 $8,437 $8,578 $8,723 $8,869 Vehicles 4,100 3,635 3,584 3,723 4,142 3,612 3,684 3,758 3,833 Disposal/Processing 4,729 6,577 5,138 7,168 7,168 8,724 9,231 9,416 9,604 Overhead 5,547 6,820 5,268 3,364 4,442 4,561 4,640 4,673 5,004 Total Operating Expenses $24,330 $25,681 $20,098 $23,403 $24,050 $25,333 $26,133 $26,570 $27,311 Operating Surplus/(Shortfall) 874 (1,925) (2,857) (11,694) (12,439) (13,528) (14,564) (15,339) (15,734) Capital Expenditures (111) 0 4,735 1,220 4,315 3,165 466 4,387 3,320 Total Expenditures $24,219 $25,681 $24,832 $24,623 $28,365 $28,498 $26,600 $30,957 $30,631 Total Surplus/(Shortfall) $985 ($1,925) ($7,591) ($12,914) ($16,754) ($16,693) ($15,031) ($19,725) ($19,054) (in 000s)
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Table 3 – Projected Capital Expenditures
Table 4 below analyzes the annual change in cash resulting from the projected annual shortfalls in the enterprise fund. Table 4 shows how the beginning cash balance is reduced by the annual shortfall. Table 4 shows that without adjusting its current rates, the enterprise fund is expected to deplete its cash balance sometime in fiscal 2024.
Table 4 – Analysis of Cash Without Rate Adjustments
Chart 2 on the following page shows how the annual operating results are projected to change the balance in the enterprise fund’s operating cash over the next five years if rates are not adjusted.
Description
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Sweepers $834 $911
Route Vehicles 1,655 830 1,790 640 434 3,476 3,198
Medium Duty Vehicles 50 40 32 123
Containers 1,546 350 2,525 2,525 0 0 0
Land Improvements 650 0 0 0 0 0 0
Total Capital Expenditures $4,735 $1,220 $4,315 $3,165 $466 $4,387 $3,320 (in 000s)
Description Actual
FY 2020
Actual
FY 2021
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Cash Reserve:
Beginning Cash $38,763 $35,621 $31,258 $26,199 $16,577 ($177) ($16,870) ($31,901) ($51,626) Operating Surplus/(Shortfall) 874 (1,925) (2,857) (11,694) (12,439) (13,528) (14,564) (15,339) (15,734) Capital Expenditures 111 0 (4,735) (1,220) (4,315) (3,165) (466) (4,387) (3,320) Other Changes to Cash (4,127) (2,438) 2,533 3,293 0 0 0 0 0 Ending Cash $35,621 $31,258 $26,199 $16,577 ($177) ($16,870) ($31,901) ($51,626) ($70,680) (in 000s)
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Chart 2 – Projected Operating Results Without Rate Adjustments
The red and blue bars in Chart 2 represent the relationship between operating expenses and current revenues, respectively. These show how the annual shortfall reduces the operating cash (green line) over time. Chart 2 graphically shows how, if rates are not adjusted, the cash balance in the solid waste enterprise fund will be completely depleted sometime during fiscal 2024.
3.3 Projected Operating Results with Proposed Rate Adjustments
Table 5 on the following page shows the operating results for the solid waste enterprise fund if rates are adjusted. (Table 5 is comparable to Table 2, which shows the projected operating results without the rate adjustments). The detailed amounts for the revenue and expenditures shown in Table 5 are shown in Appendix A. Table 5 shows that, if rates are adjusted, the enterprise fund will continue to generate significant shortfalls in fiscal 2024 and fiscal 2025, however, these shortfalls will be progressively less severe as rates continue to be adjusted each year. The enterprise fund is projected to generate a modest surplus in fiscal 2026, followed by a modest shortfall in fiscal 2027. The shortfall in fiscal 2027 is mainly due to an increase in capital expenditures in that year. In fiscal 2028, the enterprise fund is projected to generate a surplus of approximately $2.7 million.
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Table 5 – Projected Operating Results – With Rate Adjustments
Table 6 below analyzes the annual change in operating cash resulting from the projected annual shortfalls and surpluses in the enterprise fund assuming that rates are adjusted. Table 6 is comparable to the analysis of cash balances in Table 4, which shows the impact on cash balances if rates were not adjusted. Table 6 shows that, if rates are adjusted, the cash balance in the enterprise fund is expected to decrease significantly in fiscal years 2023, 2024 and 2025, and range between approximately $2 million to $4 million over the following fiscal years.
Table 6 – Analysis of Cash With Proposed Rate Adjustment
3.4 Projected Long-term Operating Results with Proposed Rate Adjustments
Chart 3 on the following page shows how the annual operating results are projected to change the balance in the enterprise fund’s operating cash over the next five years if rates are adjusted.
Description Actual
FY 2020
Actual
FY 2021
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Revenues:
Rate Revenue $17,397 $17,347 $11,404 $6,769 $12,519 $18,333 $23,145 $25,713 $28,567 Other Revenue 7,808 6,409 5,837 4,940 5,022 5,151 4,848 4,444 4,722 Total $25,204 $23,756 $17,241 $11,708 $17,541 $23,484 $27,994 $30,157 $33,289 Expenditures:
Labor $9,955 $8,649 $6,107 $9,147 $8,297 $8,437 $8,578 $8,723 $8,869 Vehicles 4,100 3,635 3,584 3,723 4,142 3,612 3,684 3,758 3,833 Disposal/Processing 4,729 6,577 5,138 7,168 7,168 8,724 9,231 9,416 9,604 Overhead 5,547 6,820 5,268 3,364 4,442 4,561 4,640 4,673 5,004 Total Operating Expenses $24,330 $25,681 $20,098 $23,403 $24,050 $25,333 $26,133 $26,570 $27,311 Operating Surplus/(Shortfall) 874 (1,925) (2,857) (11,694) (6,509) (1,849) 1,860 3,587 5,978 Capital Expenditures (111) 0 4,735 1,220 4,315 3,165 466 4,387 3,320 Total Expenditures $24,219 $25,681 $24,832 $24,623 $28,365 $28,498 $26,600 $30,957 $30,631 Total Surplus/(Shortfall) $985 ($1,925) ($7,591) ($12,914) ($10,824) ($5,014) $1,394 ($800) $2,658 (in 000s)
Description Actual
FY 2020
Actual
FY 2021
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Cash Reserve:
Beginning Cash $38,763 $35,621 $31,258 $26,199 $16,577 $5,753 $738 $2,132 $1,332 Operating Surplus/(Shortfall) 874 (1,925) (2,857) (11,694) (6,509) (1,849) 1,860 3,587 5,978 Capital Expenditures 111 0 (4,735) (1,220) (4,315) (3,165) (466) (4,387) (3,320) Other Changes to Cash (4,127) (2,438) 2,533 3,293 0 0 0 0 0 Ending Cash $35,621 $31,258 $26,199 $16,577 $5,753 $738 $2,132 $1,332 $3,990 (in 000s)
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(Chart 3 is comparable to Chart 2, which showed the projected operating results if rates are not adjusted). Chart 3 shows how, if rates are adjusted, the cash balance in the solid waste enterprise fund will decrease significantly but remain positive over the next five years. Chart 3 shows that, assuming rates are adjusted, the enterprise fund will be able to meet its current and future financial obligations.
Chart 3 – Projected Operating Results With Rate Adjustments
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4. RA TE DESIGN
In this analysis, cost-based collection rates were designed for each level of service to achieve the revenue requirement. Rates were designed by identifying the ‘cause-and-effect’ relationship between the activities or use of resources (cost drivers), and the resulting costs incurred. As a result, the individual customer rates reflect the cost of service and proportionality requirements of Proposition 218.
4.1 Revenue Requirement
The revenue requirement is the total rate revenue that the enterprise fund must generate to meet its annual financial obligations. These obligations include covering its operating and capital expenditures, and maintaining its cash balance. The revenue requirement is comprised of operating and maintenance costs, and rate-funded capital expenditures, net of any other or non- rate revenues. Non-rate revenues include items such as grants, interest income, and AB 939 Fees, etc. The revenue requirement is decreased in years when the City uses its cash balance to help fund its operations; the revenue requirement is increased in years when the City increases its cash balance. Table 7 below shows the enterprise fund’s projected revenue requirements over the next five years. The annual revenue requirements in Table 7 are derived using the total annual expenditures and other revenue in Table 5, and the annual change in cash in Table 6.
Table 7 – Projected Revenue Requirements
4.2 Rate Design Method
Cost-based collection rates were designed by identifying the cost types associated with each of these cost ‘drivers’:
• Route Operating Cost - the time it takes to travel from stop to stop in the service area.
This cost was allocated among customers based on the number of pickups. For example, a multi-family customer with three bin pickups per week is allocated three times as much of this cost as a customer with one pickup per week.
Description Actual
FY 2020
Actual
FY 2021
Pre-audited
Actual
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Revenue Requirement
Total Expenditures $24,219 $25,681 $24,832 $24,623 $28,365 $28,498 $26,600 $30,957 $30,631 Total Surplus/(Shortfall) ($12,914) ($10,824) ($5,014) $1,394 ($800) $2,658 Other Revenue (5,022) (5,022) (5,151) (4,848) (4,444) (4,722) Total Rate Revenue Requirement $6,686 $12,519 $18,333 $23,145 $25,713 $28,567 (in 000s)
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• Disposal/Processing Tip Fee Cost – the cost of fees per ton incurred at disposal and processing sites. This cost was allocated among customers based on the amount of container capacity serviced per week. This is because the amount of container capacity serviced per week is a reasonable measure of the relative weight of waste collected and delivered to the landfill.
• Overhead – Indirect costs such as buildings, utilities, general and administrative costs were allocated proportionately based on the amount of direc t cost allocated to each level of service.
4.3 Rate Design Calculations
Table 8 below, and Table 9, Table 10, Table 11 on the following pages show the 10 steps used to calculate the proposed cost-based rates according to the rate design method.
Table 8 – Allocated Rate Revenue Target
Column A B
Description Projected
FY 2024
Percent of
Total
Expenditures
Total Expenditures:
1 Labor $8,297,388
2 Vehicles 8,456,843
3 Subtotal - Route Operating Cost 16,754,230 59.07%
4 Disposal/Processing 7,168,400 25.27%
5 Overhead 4,442,467 15.66%
6 Total Expenditures $28,365,098 100.00%
7 Total Expenditures $28,365,098
8 Deduct Other Income (5,022,113)
9 Total Surplus/(Shortfall) (10,824,359)
10 Total Annual Rate Revenue Requirement $12,518,625
Allocated Revenue Requirement:
11 Route Operating Cost $7,394,296 59.07%
12 Disposal/Processing 3,163,695 25.27%
13 Indirect 1,960,634 15.66%
14 Total Allocated Rate Revenue Requirement $12,518,625 100.00% Step 3 - Allocate Total Revenue Target to Cost Pools based on Percent of Total Expenditures
Row
Step 1 - Organize Total Cost into Cost Pools (Route Operating; Disposal/Processing; and Overhead)
Step 2 - Determine Total Annual Revenue Requirement
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Table 8 shows how the rate revenue requirement for the initial rates is calculated. The revenue requirement is the total amount of rate revenue needed for the enterprise fund to meet its financial obligations. For fiscal 2024, the revenue requirement is the $12,518,625 shown on Row 10 in Table 8.
Step 1 in Table 8 organizes the enterprise fund’s total expenditures for the base year (fiscal 2024) into three pools of cost: 1) Route Operating Cost, 2) Disposal/Processing Cost, and 3) Indirect Costs.
Step 2 in Table 8 shows the total amount of annual rate revenue that the initial rates are designed to generate. The total rate revenue requirement is equal to: 1) the enterprise fund’s total expenditures; less, 2) other income (non-rate revenues such as AB 939 Fees) ; less, 3) the projected shortfall (which is the amount of cash reserves used to fund the revenue requirement).
These amounts are shown on lines 7, 8, and 9 in Table 8. The total annual rate revenue requirement of $12,518,625 is shown on Row 10 and on Row 14 in Table 8.
Step 3 in Table 8 shows how the annual rate revenue target is allocated among the three cost pools based on their proportionate share of total expenditures. Table 8 also shows that Indirect Costs are 15.66% of total cost. This percentage will be used further below to assign indirect costs to the rates in Step 9 in Table 11.
Table 9 on the following page shows the operating cost statistics used to calculate the rates. Step 4 in Table 9 shows the calculation of the total number of gallons (on which Disposal/Processing Cost is assigned to the rates), and the total number of stops (on which Route Operating Cost is assigned to the rates). An equivalent stop factor was used to increase the weight of the stops for front loading bin service to reflect the fact that front loader routes take more time per stop than automated side loader routes.
Step 5 in Table 9 shows the calculation of the average Disposal/Processing Cost per Gallon, and the average Route Operating Cost per stop. The average Disposal/Processing Cost per Gallon is derived by dividing the Annual Disposal/Processing Cost Revenue Target (from line 12 of Table 8) by the total number of gallons per year. The average Route Operating Cost per stop is derived by dividing the Annual Route Operating Cost (from line 11 of Table 8) by the total number of stops per year.
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Table 9 –Operating Cost Statistics
Table 10 on the following page shows the calculation of the Disposal/Processing Cost, and the Route Operating Cost, for each level of service. Step 6 in Table 10 calculates the monthly Disposal/Processing Cost per unit for each level of service by multiplying the average Disposal/Processing Cost per gallon by the gallons per month.
Step 7 in Table 10 calculates the monthly Route Operating Cost per unit for each level of service by multiplying the average Route Operating Cost per Stop by the stops per month. Step 8 in Table 10 calculates the direct cost per unit by combining the Disposal/Processing Cost per unit and the Route Operating Cost per unit.
Column A B C D E F G
Description Gallons
per Unit
Number
of Units
Gallons per
Month
Gallons per
Year
Number
of Stops
per Month
Stop
Adjustment
Factor
Stops per
Year
Automated Cart Service - Single Family
1 Standard 64 gallon cart 64 5,333 1,479,019 17,748,224 23,110 1 277,316 2 Standard 96 gallon cart 96 18,691 7,775,456 93,305,472 80,994 1 971,932 Automated Cart Service - Multi-family 2-4 unts
3 Standard 64 gallon cart 64 8,594 2,383,403 28,600,832 37,241 1 446,888 4 Standard 96 gallon cart 96 266 110,656 1,327,872 1,153 1 13,832 5 Additional 64 gallon cart 64 194 53,803 645,632 841 1 10,088 Front Loading Bin Service - MFR 2-4 units
6 One cubic yard bin 1/week 202 56 49,019 588,224 243 3 8,736 7 Two cubic yard bin 1/week 404 123 215,332 2,583,984 533 3 19,188 8 Three cubic yard bin 1/week 606 24 63,024 756,288 104 3 3,744 Front Loading Bin Service - Additional Pickups
9 One cubic yard bin 1/week 202 6 5,252 63,024 26 3 936 10 Two cubic yard bin 1/week 404 6 10,504 126,048 26 3 936 11 Three cubic yard bin 1/week 606 7 18,382 220,584 30 3 1,092 12 Total 33,300 12,163,849 145,966,184 144,300 1,754,688 Step 5 - Use Allocated Revenue Requirement to Calculate Average Disposal Cost per Gallon; Average Route Operating Cost per Stop Average Disposal Cost per Gallon
13 Annual Disposal/Processing Revenue Requirement $3,163,695 (from Row 12 in Step 3)
14 Gallons per Year 145,966,184
15 Disposal/Processing Revenue Requirement per Gallon $0.0217 Average Route Operating Cost per Stop
16 Annual Route Operating Revenue Requirement $7,394,296 (from Row 11 in Step 3)
17 Stops per Year 1,754,688
18 Annual Route Operating Revenue Requirement per Stop $4.21 Step 4 - Calculate Total Number of Annual Gallons and Stops Row
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Table 10 – Direct Cost for Each Level of Service
Table 11 on the following page calculates the indirect cost per unit, and summarizes the cost per unit of all three types of cost to arrive at the cost-based rate for each level of service. Step 9 calculates the indirect cost per unit based on indirect cost as a proportionate share of total cost from Row 13 of Table 8. Step 10, the final step, combines the cost per unit of the Disposal/Processing Cost, Route Operating Cost, and the Indirect Cost to arrive at the cost per unit for each level of service. These cost per unit amounts are found in the proposed monthly rates in Table 1, and are used to recalculate the annual rate revenue in Table 12 and Table 13.
Column A B C D E F G H I
Description Gallons
per Unit
Gallons
per Month
per Unit
Cost per
Gallon
Disposal
Processing
Cost per
Month
Equivalent
Stops per
Unit
Stops per
Unit per
Month
Cost per
Stop
Route
Operating
Cost per
Month
Total Direct
Costs
Step 8 - Sum
of Disposal
and Route
Operating
Cost per
month
Automated Cart - Single Family
1 Standard 64 gallon cart 64 277 $0.0217 $6.01 1 4.33 $4.21 $18.26 $24.27 2 Standard 96 gallon cart 96 416 0.0217 9.02 1 4.33 4.21 18.26 27.28 Automated Cart - Multi-family 2-4 units
3 Standard 64 gallon cart 64 277 0.0217 6.01 1 4.33 4.21 18.26 24.27 4 Standard 96 gallon cart 96 416 0.0217 9.02 1 4.33 4.21 18.26 27.28 5 Additional 64 gallon cart 64 277 0.0217 6.01 1 4.33 4.21 18.26 24.27 Front Loading Bin - MFR 2-4 units
6 One cubic yard bin 1/week 202 875 0.0217 18.97 3 13.00 4.21 54.78 73.75 7 Two cubic yard bin 1/week 404 1,751 0.0217 37.94 3 13.00 4.21 54.78 92.73 8 Three cubic yard bin 1/week 606 2,626 0.0217 56.92 3 13.00 4.21 54.78 111.70 Front Loading Bin - Additional Pickups
9 One cubic yard bin 1/week 202 875 0.0217 18.97 3 13.00 4.21 54.78 73.75 10 Two cubic yard bin 1/week 404 1,751 0.0217 37.94 3 13.00 4.21 54.78 92.73 11 Three cubic yard bin 1/week 606 2,626 $0.0217 $56.92 3 13.00 $4.21 $54.78 $111.70 Row
Step 6 - Calculate Disposal/Processing cost per
month for each level of service
Step 7 - Calculate Route Operating Cost per
Month for each level of service
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Table 11 – Indirect Cost and Sum of Total Cost for Each Level of Service
4.4 Projected Rate Revenue based on Proposed Rate Adjustments
Table 12 on the following page, Table 13 on page 19, and Table 14 on page 20 show how the proposed rates, when extended by the number of customers at each level of service, meet the City’s annual projected revenue requirements in Table 7. Table 12 shows the recalculation of the revenue requirement for automated cart rates, Table 13 shows the recalculation of the revenue requirement for frontload bin rates, and Table 14 summarizes the total revenue requirement from each of these tables.
Table 12, Table 13, and Table 14 show that the rates implemented on July 1, 2023 will generate approximately $12,518,625 in annual revenue. This amount corresponds with the 2024 revenue requirement in Table 7. Table 14 shows the average increase in revenue in each year. In fiscal 2024, the proposed rates are projected to increase annual revenue an average of 90%. In each of the fiscal years after fiscal 2024, the average annual growth in revenue includes an additional 1% to reflect the volume growth in the number of customers.
A B C D E F G
Total Direct
Costs
Indirect
cost as
percent of
total cost
Indirect
Cost per
month
Disposal
Processing
Cost per
Month
Route
Operating
Cost per
Month
Indirect
Cost per
month
Total Cost
of Service
per month
24.27 15.66% $4.51 $6.01 $18.26 $4.51 $28.78
27.28 15.66% 5.07 9.02 18.26 5.07 32.34
24.27 15.66% 4.51 6.01 18.26 4.51 28.78
27.28 15.66% 5.07 9.02 18.26 5.07 32.34
24.27 15.66% 4.51 6.01 18.26 4.51 28.78
73.75 15.66% 13.70 18.97 54.78 13.70 87.45
92.73 15.66% 17.22 37.94 54.78 17.22 109.95
111.70 15.66% 20.74 56.92 54.78 20.74 132.44
73.75 15.66% 13.70 18.97 54.78 13.70 87.45
92.73 15.66% 17.22 37.94 54.78 17.22 109.95
111.70 15.66% $20.74 $56.92 $54.78 $20.74 $132.44
Step 9 - Calculate Indirect cost per
month for each level of service
Step 10 - Summarize Dispoal/Processing,
Route Operatng and Indirect Cost per month
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Table 12 – Summary of Automated Cart Rate Revenue
Proposed
Rates
Effective
July 1, 2023
Proposed
Rates
Effective
July 1, 2023
Proposed
Rates
Effective
July 1, 2024
Proposed
Rates
Effective
July 1, 2025
Proposed
Rates
Effective
July 1, 2026
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Customer Count
Automated Cart Service - Single Family
Standard 64 gallon cart 5,333 5,333 5,333 5,386 5,440 5,494 5,549 Standard 96 gallon cart 18,691 18,691 18,691 18,878 19,067 19,258 19,451 Automated Cart Service - Multi-family 2-4 unts
Standard 64 gallon cart 8,594 8,594 8,594 8,680 8,767 8,855 8,944 Standard 96 gallon cart 266 266 266 268 270 272 274
Additional 64 gallon cart 194 194 194 196 198 200 202
Monthly Rates
Automated Cart Service - Single Family
Standard 64 gallon cart $11.72 $11.72 $28.78 $41.73 $52.16 $57.38 $63.12 Standard 96 gallon cart 18.34 18.34 32.34 46.90 58.63 64.49 70.94 Automated Cart Service - Multi-family 2-4 unts
Standard 64 gallon cart 14.82 14.82 28.78 41.73 52.16 57.38 63.12 Standard 96 gallon cart 18.34 18.34 32.34 46.90 58.63 64.49 70.94 Additional 64 gallon cart $11.72 $11.72 $28.78 $41.73 $52.16 $57.38 $63.12 Annual Rate Revenue
Automated Cart Service - Single Family
Standard 64 gallon cart $750,033 $750,033 $1,841,743 $2,697,093 $3,405,005 $3,782,949 $4,203,035 Standard 96 gallon cart 4,113,515 4,113,515 7,254,195 10,624,538 13,414,779 14,903,381 16,558,247 Automated Cart Service - Multi-family 2-4 unts
Standard 64 gallon cart 1,528,357 1,528,357 2,967,924 4,346,597 5,487,441 6,097,199 6,774,543 Standard 96 gallon cart 58,541 58,541 103,238 150,830 189,961 210,495 233,251 Additional 64 gallon cart 27,284 27,284 66,998 98,149 123,932 137,712 153,003 Total Annual Automated Cart Rate Revenue $6,477,731 $6,477,731 $12,234,098 $17,917,208 $22,621,117 $25,131,736 $27,922,079 Description
Current Rates
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Table 13 – Summary of Frontload Bin Rate Revenue
Proposed
Rates
Effective
July 1, 2023
Proposed
Rates
Effective
July 1, 2023
Proposed
Rates
Effective
July 1, 2024
Proposed
Rates
Effective
July 1, 2025
Proposed
Rates
Effective
July 1, 2026
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 Customer Count
Front Loading Bin Service - MFR 2-4 units
One cubic yard bin 1/week 56 56 56 57 58 59 60
Two cubic yard bin 1/week 123 123 123 124 125 126 127
Three cubic yard bin 1/week 24 24 24 24 24 24 24
Front Loading Bin Service - Additional Pickups
One cubic yard bin 1/week 6 6 6 6 6 6 6
Two cubic yard bin 1/week 6 6 6 6 6 6 6
Three cubic yard bin 1/week 7 7 7 7 7 7 7
Total Customers 222 222 222 224 226 228 230
Monthly Rates
Front Loading Bin Service - MFR 2-4 units
One cubic yard bin 1/week $33.00 $33.00 $87.45 $126.80 $158.50 $174.35 $191.79 Two cubic yard bin 1/week 45.35 45.35 109.95 159.42 199.28 219.21 241.13 Three cubic yard bin 1/week 58.15 58.15 132.44 192.04 240.05 264.06 290.47 Front Loading Bin Service - Additional Pickups
One cubic yard bin 1/week 22.63 22.63 87.45 126.80 158.50 174.35 191.79 Two cubic yard bin 1/week 22.63 22.63 109.95 159.42 199.28 219.21 241.13 Three cubic yard bin 1/week $22.63 $22.63 $132.44 $192.04 $240.05 $264.06 $290.47 Annual Rate Revenue
Front Loading Bin Service - MFR 2-4 units
One cubic yard bin 1/week 22,176 22,176 58,767 86,731 110,316 123,440 138,089 Two cubic yard bin 1/week 66,937 66,937 162,280 237,217 298,920 331,446 367,482 Three cubic yard bin 1/week 16,747 16,747 38,143 55,308 69,134 76,049 83,655 Front Loading Bin Service - Additional Pickups
One cubic yard bin 1/week 1,629 1,629 6,296 9,130 11,412 12,553 13,809 Two cubic yard bin 1/week 1,629 1,629 7,916 11,478 14,348 15,783 17,361 Three cubic yard bin 1/week $1,901 $1,901 $11,125 $16,131 $20,164 $22,181 $24,399 Total Annual Frontload Bin Rate Revenue $111,019 $111,019 $284,528 $415,995 $524,295 $581,452 $644,796 Description
Current Rates
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Table 14 – Summary of Rate Revenue and Reconciliation to Revenue Requirement
Description Projected
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
FY 2026
Projected
FY 2027
Projected
FY 2028
Annual Automated Cart Rate Revenue $6,477,731 $6,477,731 $12,234,098 $17,917,208 $22,621,117 $25,131,736 $27,922,079 Annual Frontload Bin Rate Revenue 111,019 111,019 284,528 415,995 524,295 581,452 644,796 Total Annual Rate Revenue $6,588,750 $6,588,750 $12,518,625 $18,333,203 $23,145,412 $25,713,188 $28,566,875 Average Percent Increase in Rate Revenue
(includes 1% for customer growth after FY 2023 90% 46% 26% 11% 11% Reconcile to Revenue Requirement:
Annual Rate Revenue Target $12,518,625 $18,333,203 $23,145,412 $25,713,188 $28,566,875
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5. PERCENT OF CUSTOMERS AFFECTED
Table 15 below shows the current rate, and the rate proposed to become effective July 1, 2023 along with the amount of the increase and percent change. The right-hand column shows the portion of total customers that will be affected by each percent change of rate adjustment.
Table 15 – Percent of Customers Affected
Description Current Rate
Proposed Rate
Effective July 1,
2023
Adjustment
Amount per
Month
Percent
Adjustment
Number of
Customers
Affected
Percent of Total
Customers
Affected
Automated Cart Service - Single Family
Standard 64 gallon cart $11.72 $28.78 $17.06 146% 5,333 16.0% Standard 96 gallon cart $18.34 $32.34 $14.00 76% 18,691 56.1% Automated Cart Service - Multi-family 2-4 unts
Standard 64 gallon cart $14.82 $28.78 $13.96 94% 8,594 25.8% Standard 96 gallon cart $18.34 $32.34 $14.00 76% 266 0.8% Additional 64 gallon cart $11.72 $28.78 $17.06 146% 194 0.6% Front Loading Bin Service - MFR 2-4 units
One cubic yard bin 1/week $33.00 $87.45 $54.45 165% 56 0.2% Two cubic yard bin 1/week $45.35 $109.95 $64.60 142% 123 0.4% Three cubic yard bin 1/week $58.15 $132.44 $74.29 128% 24 0.1% Front Loading Bin Service - Additional Pickups
One cubic yard bin 1/week $22.63 $87.45 $64.82 286% 6 0.0% Two cubic yard bin 1/week $22.63 $109.95 $87.32 386% 6 0.0% Three cubic yard bin 1/week $22.63 $132.44 $109.81 485% 7 0.0% Total 33,300 100.0%
Appendix A – Revenue and Expenditure Detail
A-1
Actual Actual Pre-audited
Actual Projected Projected Projected Projected Projected Projected FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Rate Revenue
Residential refuse fees $12,986,604 $12,989,259 $9,437,437 $6,588,750 $12,518,625 $18,333,141 $23,145,334 $25,713,102 $28,566,781 Commercial bin srv multi units 3,472,044 3,500,923 1,577,316 180,000 - - - - - Commercial bin srv business 902,808 831,148 358,048 - - - - - - Refuse bin drop off fees 35,430 25,273 31,278 - - - - - - Subtotal - Rate Revenue 17,396,886 17,346,603 11,404,079 6,768,750 12,518,625 18,333,141 23,145,334 25,713,102 28,566,781 Other Revenue
Disaster relief reimb federal - - - - - - - - - Recyclables state grant 108,024 (50,104) 5,053 - 50,000 50,000 50,000 50,000 50,000 State grants 88,214 100,623 389,357 - - - - - - Collectible jobs overhead - - - - - - - - - Merchant fee charges (5,805) (10,904) (8,396) (5,000) - - - - - Commercial refuse fees 2,787,201 2,772,163 1,215,336 - - - - - - Bin Rental Fee (324) - - - - - - - - Sale of recyclables 367,379 370,024 72,461 - - - - - - AB 939 fees 2,836,900 2,317,607 3,080,449 3,402,831 3,800,000 3,952,000 4,110,080 4,274,483 4,445,463 Private hauler permit fees 33,144 37,152 41,304 10,000 44,000 44,880 45,778 46,693 47,627 Vehicle charges - - - - - - - - - Equipment usage charges - - - - - - - - - Rebate revenue - - - - - - - - - Unclaimed money and property 11 338,456 603,549 - - - - - - Miscellaneous revenue 51,264 578,707 6,000 362,800 3,000 3,060 3,121 3,184 3,247 Misc. revenue - Host Fees - - - 800,000 880,000 1,056,000 538,560 - - Citywide collection revenue - - - - - - - - - Interest income 762,098 454,002 369,662 369,000 230,113 29,535 85,293 53,298 159,606 Interest GASB31 686,921 (514,303) (1,595,208) - - - - - - Sales of property 92,550 16,000 1,657,135 - 15,000 15,300 15,606 15,918 16,236 Subtotal - Other Revenue $7,807,577 $6,409,423 $5,836,702 $4,939,631 $5,022,113 $5,150,775 $4,848,438 $4,443,576 $4,722,179 Total Revenue $25,204,463 $23,756,026 $17,240,781 $11,708,381 $17,540,738 $23,483,916 $27,993,772 $30,156,678 $33,288,960 Expenses
Labor
Salaries 4,012,860 3,993,128 3,684,504 4,723,117 4,459,188 4,526,076 4,593,967 4,662,876 4,732,820 Unfilled positions
Additional pay persable 16,357 19,621 11,142 7,362 8,423 8,549 8,678 8,808 8,940 Additional pay non-pers 88,341 85,741 78,119 78,011 70,509 71,567 72,640 73,730 74,836 Overtime 1,119,485 1,063,669 1,067,264 586,470 100,000 100,000 100,000 100,000 100,000 Hourly wages 119,480 98,538 132,152 219,062 172,123 174,705 177,325 179,985 182,685 Vacation and compensatory time 105,052 46,247 42,105 89,005 139,580 141,674 143,799 145,956 148,145 Sick leave 50,425 30,751 20,512 33,722 31,814 32,291 32,776 33,267 33,766 OPEB Funding Exp 29,267 16,456 21,166 26,482 27,407 27,818 28,235 28,659 29,089 Other benefits 38,289 40,547 36,990 14,375 13,410 13,611 13,815 14,022 14,232 Life insurance 6,400 7,575 6,313 8,090 6,633 6,766 6,901 7,039 7,180 Disability insurance 17,025 16,970 14,992 19,516 18,801 19,177 19,560 19,952 20,351 Vision insurance 14,376 14,135 11,710 13,111 11,698 11,932 12,170 12,414 12,662 Medical insurance 594,000 627,269 639,145 955,912 952,657 971,710 991,145 1,010,967 1,031,187 Dental insurance 31,465 30,682 26,388 29,368 26,605 27,137 27,679 28,233 28,798 Unemployment insurance 1,605 2,620 9,891 11,242 2,268 2,314 2,360 2,407 2,455 Workers compensation insurance 747,543 616,594 410,349 417,249 510,611 520,823 531,240 541,865 552,702 Medicare 71,946 70,123 67,392 76,422 71,263 72,689 74,142 75,625 77,138 Social security and PARS 3 18 - - - - - - - PERS retirement 1,442,152 1,553,697 1,585,685 1,979,881 1,775,030 1,810,531 1,846,742 1,883,676 1,921,350 PERS cost sharing (172,693) (171,430) (140,571) (148,533) (106,447) (108,576) (110,747) (112,962) (115,221) PERS funding reversal (1,251,351) (1,372,518) (1,731,653) - - - - - - PERS GASB 68 expense 2,628,901 1,614,173 (198,168) - - - - - - PERS vacant positions 238,572 239,369 305,846 - 6,406 6,535 6,665 6,799 6,934 Auto allowance 5,113 5,418 5,957 6,791 (592) (604) (616) (628) (640) Subtotal - Labor 9,954,613$ 8,649,393$ 6,107,230$ 9,146,655$ 8,297,387$ 8,436,725$ 8,578,476$ 8,722,690$ 8,869,409$ Description
Appendix A – Revenue and Expenditure Detail
A-2
Actual Actual Pre-audited
Actual Projected Projected Projected Projected Projected Projected FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Vehicles
Repairs to equipment 58,339 113,157 440 77,500 77,500 79,050 80,631 82,244 83,888 Vehicle maintenance - - - - - - - - - Fuel natural gas - - - - - - - - - Fuel gasoline - - - - - - - - - Fuel diesel - - - - - - - - - Fleet equipment rental 3,814,650 3,337,149 3,337,149 3,337,148 3,604,050 3,063,443 3,124,711 3,187,206 3,250,950 Liability Insurance 226,749 184,767 246,751 308,821 460,293 469,498 478,888 488,466 498,235 Subtotal - Vehicles 4,099,738$ 3,635,073$ 3,584,340$ 3,723,469$ 4,141,843$ 3,611,991$ 3,684,230$ 3,757,916$ 3,833,073$ Disposal/Processing
Disposal/Processing 4,729,014 6,576,683 5,137,696 7,168,400 7,168,400 8,723,761 9,231,239 9,415,863 9,604,180 Landfill Sinking fund - - - - - - - - - Subtotal - Disposal/Processing 4,729,014$ 6,576,683$ 5,137,696$ 7,168,400$ 7,168,400$ 8,723,761$ 9,231,239$ 9,415,863$ 9,604,180$ Overhead
Repairs to buildings and grounds - - 15,443 - - - - - - Contract Services:
Billing Services 16,821 50,848 12,443 20,000 - 15,000 15,000 15,000 15,000 Landfill Maintenance 158,306 172,842 169,710 375,000 375,000 400,000 400,000 400,000 400,000 Outreach 144,233 556,062 135,797 394,491 602,000 614,000 626,000 639,000 652,000 Recycling Center Operations 55,804 33,829 17,358 185,000 385,000 185,000 205,000 215,000 230,000 Regulatory Compliance 113,690 246,481 203,620 556,548 556,548 572,500 572,500 597,500 612,500 Right--of-Way Cleaning 221,829 302,193 113,291 360,000 110,000 400,000 405,000 420,000 425,000 Temporary Labor 1,083,703 1,644,013 1,351,635 360,000 360,000 400,000 400,000 400,000 400,000 Waste Reduction Programs 80,174 137,416 230,997 405,000 405,000 325,000 350,000 375,000 545,000 Other Contract Services 151,913 48,144 32,082 38,350 73,350 75,000 77,000 79,000 81,000 Subtotal - Contract Services 2,026,473 3,191,828 2,266,933 2,694,389 2,866,898 2,986,500 3,050,500 3,140,500 3,360,500 Advertising - - 25,000 - - - - - - Janitorial Services 981 2,689 1,979 - - - - - - Postage 946 1,143 6,310 4,700 4,700 4,794 4,890 4,988 5,087 Travel 916 - - 2,000 2,000 2,040 2,081 2,122 2,165 Laundry and towel service 1,493 12,240 14,308 18,500 18,500 18,870 19,247 19,632 20,025 Training 8,547 7,229 10,056 76,500 76,500 78,030 79,591 81,182 82,806 Computer software 685 4,735 3,319 - - - - - - Regulatory 33,356 28,061 35,421 132,200 157,200 160,344 163,551 166,822 170,158 Membership and dues 5,873 937 1,623 6,000 6,000 6,120 6,242 6,367 6,495 Periodicals and newspapers - 445 450 - - - - - - Books - - - - - - - - - Furniture and equipment 2,101 858 12,418 10,000 10,000 10,200 10,404 10,612 10,824 Computer hardware 36,316 - - - - - - - - Office supplies 7,442 5,282 8,111 10,000 10,000 10,200 10,404 10,612 10,824 Small tools - 869 - 1,000 1,000 1,020 1,040 1,061 1,082 General supplies 292,042 372,216 89,901 330,000 330,000 336,600 343,332 350,199 357,203 Printing and graphics - 1,139 2,593 6,000 6,000 6,120 6,242 6,367 6,495 Uncollectable accounts 55,864 84,957 243,345 60,000 60,000 61,200 62,424 63,672 64,946 Business meetings 2,364 555 1,240 1,200 1,200 1,224 1,248 1,273 1,299 Miscellaneous 827 12,408 9,747 3,100 3,100 3,162 3,225 3,290 3,356 Discount earned and lost - - - - - - - - - Utilities 49,921 47,669 58,012 65,618 72,180 73,624 75,096 76,598 78,130 Rent - - 8,114 - - - - - - Cost allocation charge 789,494 803,711 829,498 896,279 852,924 724,985 739,485 754,275 769,360 ITD service charge 521,078 540,933 581,687 708,445 722,614 614,222 626,506 639,036 651,817 Building maint service charge 78,699 74,029 82,049 78,175 80,316 81,922 83,561 85,232 86,937 GWP municipal billing 481,553 481,553 481,553 481,553 481,553 491,184 501,008 511,028 521,248 Contractual cost reduction - (5,926) - - - - - - - Electrice Vehicles and Infrastructure - - - - - - Street sweeping offset (221,317) (474,490) (230,258) (234,863) (330,612) (244,351) Transfer to general fund 1,150,000 1,150,000 479,167 - - - - - - Projected Underexpenditures - - - (2,000,000) (845,727) (881,216) (915,704) (930,915) (962,036) Subtotal - Overhead $5,546,971 $6,819,560 $5,268,277 $3,364,342 $4,442,468 $4,560,887 $4,639,510 $4,673,341 $5,004,370 Total Operating Expenses $24,330,336 $25,680,709 $20,097,543 $23,402,866 $24,050,098 $25,333,364 $26,133,455 $26,569,810 $27,311,032 Description
Appendix A – Revenue and Expenditure Detail
A-3
Actual Actual Pre-audited
Actual Projected Projected Projected Projected Projected Projected FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Capital Expenditures
Asset Capitalization Adjustment (111,169)
Subtotal - FY 2022
Street Sweeper 445,000
Street Sweeper 388,571
Automated Sideloader 325,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
Automated Sideloader 365,000
2011 Ford F350 Stake Bed with Liftgate 50,000
Asset Capitialization (1,503,848)
Underground Tank Removal 500,000
Temporary CNG Station 150,000
Subtotal - FY 2022 4,734,723
Pickup Truck 40,000
Mini rear loader 225,000
Mini rear loader 225,000
Mini Automated Sideloader 380,000
Containers 350,000
Subtotal - FY 2023 1,220,000
Rearloader 235,000
Rearloader 235,000
Automated Sideloader 450,000
Automated Sideloader 450,000
Automated Sideloader 420,000
Containers 2,525,000
Subtotal - FY 2024 4,315,000
Description
Appendix A – Revenue and Expenditure Detail
A-4
Actual Actual Pre-audited
Actual Projected Projected Projected Projected Projected Projected FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 FY 26-27 FY 27-28 Automated Sideloader 320,000
Automated Sideloader 320,000
Containers 2,525,000
Subtotal - FY 2025 3,165,000
Automated Sideloader 434,157
Refuse-Bin Truck 32,200
Containers 0
Subtotal - FY 2026 466,357
Street Sweeper 455,258
Street Sweeper 455,258
Rearloader 390,460
Rearloader 398,230
Automated Sideloader 447,182
Automated Sideloader 447,182
Automated Sideloader 447,182
Automated Sideloader 448,289
Automated Sideloader 449,396
Automated Sideloader 448,289
Containers 0
Subtotal - FY 2027 4,386,726
Automated Sideloader 468,578
Automated Sideloader 468,578
Rolloff Truck 404,349
Automated Sideloader 464,018
Automated Sideloader 464,018
Automated Sideloader 464,018
Automated Sideloader 464,018
Flatbed Trucks, Single-Axle 87,992
Compact Pickup 34,672
Containers 0
Subtotal - FY 2028 3,320,241
Total Capital Expenditures (111,169) 0 4,734,723 1,220,000 4,315,000 3,165,000 466,357 4,386,726 3,320,241 Total Expenditures 24,219,167 25,680,709 24,832,266 24,622,866 28,365,098 28,498,364 26,599,812 30,956,536 30,631,273 Total Surplus/(Shortfall) 985,296 (1,924,683) (7,591,485) (12,914,485) (10,824,360) (5,014,448) 1,393,960 (799,858) 2,657,687 Description