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The City of Pasadena currently provides solid waste and recycling collection service to approximately 27,000 residential units (single family residences and multi-family units) within the City’s incorporated limits. Based on the results of a pilot program in response to AB939, the City implemented a “Pay As You Throw” subscription program, which allows homeowners to select a 32, 60, or 100-gallon, mixed waste rolling cart (green lid), based on their individual waste collection needs, thus providing a monetary incentive to recycle. A rate model was developed, which enabled our team to make projections of financial performance of residential refuse collection for the upcoming 10-year planning period (2006-2015) and model various user rate structures to help eliminate the Refuse Fund’s existing negative cash balance.
At the outset of the work effort, SCS developed a Microsoft Excel™ spreadsheet-based, rate model to assist in the evaluation of several feasible residential rate structures. The model includes the following facets:
- An analysis of operational funds (personnel, services and supplies, landfill disposal charges, internal service charges, abatements)
- Analysis of fleet replacement and financing program (vehicle replacement by year)
- Funds analysis (reserve requirements, transfers to general fund, beginning and ending fund balances)
- Revenue sufficiency analysis (annual revenue projections and rate plan to provide sufficient revenues)
Based on data and information provided by City staff, these individual spreadsheets were linked to develop an overall rate model to evaluate the impact of critical City cost and program revenues areas on different potential rate options.
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