budgeting waste management

SWANA WASTECON 2021 Virtual Event – Embracing Disruption

January 26, 2021

The solid waste and recycling industry is being reshaped by powerful forces – fiscal uncertainty, a critical need for infrastructure investment; local governments pushed to engage in creative city-to-city and public/private partnerships, and the need to leverage technology to connect to our communities and customers. “When we embrace disruptions, we can lean in and make decisions that help accelerate needed solutions and sunset legacy practices that can stand in the way of progress,” said SWANA Deputy Executive Director Meri Beth Wojtaszek. “This has some leaders replacing the phrase ‘before and after’ to ‘before and faster.’”

Visit WASTECON.org for program updates and registration information as it becomes available.

WASTECON Highlights

 

Tuesday, January 26, 2021, at 4:00 PM – 4:45 PM (EST)
Keynote: Outside the Box: Reinventing Your Organization in Response to COVID-19 features a diverse panel that will share some innovative ways their organizations have responded and reinvented themselves to remain relevant during the pandemic. Three speakers provide perspective including, Carlton Williams – City of Philadelphia; James Walsh – SCS Engineers; John Brusa, Jr. – Barton & Loguidice

 

Thursday, January 28, at 3:00 PM – 3:45 PM (EST)
Keynote: Paying for Waste Services During the Downturn features a panel that will present options for financing solid waste operations during the economic downturn and ways to plan for the future. Economist Vita Quinn – SCS Engineers; John Chalmers – Baltimore City Department of Public Works; Kim Braun – Culver City, CA

 

Anytime! On-Demand Resourcesat your convenience, these short, non-commercial sessions are available in the SCS Learning Center. Click the title to begin playing.

Budget and Operational Strategies for Municipalities

A solid waste expert, an economist, and a city council member discuss municipal funding resources and strategies. Each brings their perspective and experience to inform and answer questions from a live audience including, the big picture approach, expense-based solutions, revenue diversification and optimization strategies, financial modeling of solid waste services.

Solid Waste Strategic Planning for Financial Security

This discussion, moderated by Bob Gardner, provides useful strategies when developing a business case analysis for SMM, recycling, or composting programs. The process also helps identify opportunities to increase efficiency and reduce operating costs, design a Capital Plan, and secure support for rate increases. Michelle Leonard assesses the effect of the pandemic on recycling programs, state regulatory policy, and funding challenges. Vita Quinn presents a financial modeling scenario employing financial modeling and solid waste facility software to help decision-makers visualize the impact of various alternatives on the planning process. The model is useful for budgeting and testing alternative scenarios for future waste policies, strategies, and funding.

 

Low Carbon Fuels Program SWANA Ohio 2020

Cassandra Drotman discusses the California Low Carbon Fuel Standard and market opportunities. She covers how the program works, what counts in California, and how other states are using California as a market in addition to their regional markets. She’s not just talking about green fuel; Cassandra examines the increasing range of low-carbon and renewable alternatives that are helping to drive transportation sector fuel pools to cleaner, reliable, and economically viable options.

Built to Last – Design, Build, and Operate Landfills for Extreme Weather Resiliency

Each U.S. region faces unique weather and climate events. Solid waste facilities and landfills are particularly vulnerable to extreme weather since they are exposed 24/7 to the environment. Extreme weather can disrupt safe and cost-effective operations, increase maintenance needs, and may compromise landfill stability. Increase your facility’s longevity and ability to survive extreme weather. The recording includes Q&A from solid waste professionals and features Robert Gardner and Bob Isenberg, who bring decades of expertise to the table, including landfill design and solid waste master planning. They provide strategies and resources based on successful solutions that help support your facility as you prepare for and likely will experience severe weather disruptions.

 

Staying Ahead of Odor Management at Solid Waste Facilities to Avoid Ramifications

The video will be posted following the live session on January 21 @ 2:00 pm – 3:00 pm ET.

More so than ever before, the solid waste industry faces complex and challenging odor issues based upon public, regulatory, and legal actions. Since odors are generally enforced through nuisance regulations, compliance can be difficult to achieve, not to mention almost impossible to define. Enforcement of odor nuisances is subjective, usually at the discretion of an environmental inspector or Air Pollution Control Officer, and often based upon citizen complaints. When citizen complaints mount, and enforcement action is leveraged, lawsuits often surface as an added ongoing challenge to waste facility operations. This free webinar will help you develop capabilities to assess the potential for odor issues and, by doing so, set realistic benchmarks toward cost-effective and meaningful mitigation measures.

 

 

 

 

 

 

Posted by Laura Dorn at 8:00 am

Recycling Markets: Forces and Recent Trends Affecting the Recycling Markets

October 4, 2017

Potential changes to the market initiated by the Chinese is cause for concern and for assessing contingencies. While the actual effect on the U.S. recycling market is not clear yet, it is recommended that public works officials keep a close eye on these developments in the near future. This may include asking your project managers to update their pro forma models for a recycling program to evaluate the partial or total temporary loss of these revenue streams.

This article points out some of the key market variables of which a public works director should be aware and of how many states have recently attempted to strengthen existing markets and develop new markets through a variety of institutional tools.

Read and share the article here.

 

 

 

Posted by Diane Samuels at 6:00 am

Regional Waste Management Authority Uses SCS Pro Forma Model for Short and Long-term Operational Excellence and Budgeting

November 30, 2015

An SCS pro forma model for waste management gives you the much-needed ability to analyze how different elements of a business plan will impact your cash flows and value. Subsequently, using individual forecasts and operations data, you can analyze when in the future you might need financing allowing you the time to plan to acquire sufficient resources, permits, and equipment. Read the Merced County case study here to learn more.

SCS Engineers assisted the Merced County, California, Regional Waste Management Authority (RWA) in developing a Pro Forma Model that encompasses projected operational costs and revenues to help decision-makers develop timely cash flow forecasts. The RWA now has a useful tool for annual budgeting and developing long-term capital policies.

Merced County, California, Highway 59 Landfill
Merced County, California, Highway 59 Landfill (pictured here) uses an SCS Pro Forma Model for managing the day to day business and long-term planning decisions.

After several years of revenue declines for numerous reasons, including the recession, a change in management in 2012 ordered a re-assessment of RWA’s operational and administrative functions. Throughout the year-long process, a new Regional Waste Director was selected to implement a progressive strategy that would realize operational efficiencies, cost savings, an expanded customer base, and lower long-term debt through bond refinancing. These measures provided considerable benefit, particularly in regards to the long-term financial health of the agency; however, it was not clear if cash could be generated quickly enough to meet the existing need. As a result, the agency hired a rate consultant in April 2015 to assess the anticipated shortfall and prepare a report to the RWA’s governing board.

The RWA owns and operates two disposal and recycling facilities, each located near the population centers of Merced County. Both landfills need expansions to increase disposal capacity in the coming years. SCS Engineers developed a Pro Forma Model to help the RWA prepare a long-term cash flow analysis and assess whether or not funds were available from operations to forestall a bond issue for the capital improvements as well as to fund adequate emergency reserves. At the beginning of SCS’s engagement, RWA staff provided background data and information concerning residential collection revenues and operating expenses.

The Pro Forma Model estimated annual net revenues during the 12-year planning horizon; determined that the current debt service is a major drain until the bonds mature in FY 2026/27; calculated that funds for projected capital improvements, fleet replacement, and a new “Rainy Day Fund” can be realized even if the RWA receives low waste deliveries to the landfill; and projected cash reserves. The model recommended that the RWA consider funding a landfill gas to energy project out of cash reserves rather than bond proceeds and projected annual revenues from methane sales.

The RWA adopted the findings of the proposed pro forma model in October 2015. Conducting the pro forma modeling effort enabled the RWA’s decision-makers to project costs of the various capital, fleet, and waste flow options. Key among the lessons learned was the implementation of a “Rainy Day Fund” to provide a long-term financial backstop for unforeseen events in landfill operations that cannot be predicted today. Such events could include groundwater and landfill gas remediation, issues with landfill liners, and weather events. The fund is capped at 25 percent of the RWA’s annual operating costs, which can also provide three to four months of operating expenses. While typical of many large County or municipal General Funds, it is less typical of individual enterprise funds in the past. Such Rainy Day Funds are becoming more and more prominent across solid waste agencies in the United States.

Lastly, the RWA now has a financial tool that can be updated annually and will continue to project future revenues and capital expenditures and ultimately forecast rate needs more accurately.

Marc Rogoff, Ph.D., is a Project Director for SCS Engineers’ and our National Expert on Solid Waste Rate Studies. Marc has over 30 years of experience in solid waste management as a public agency manager and consultant and has managed more than 200 consulting assignments across the United States on all facets of solid waste management. He has written and co-authored many articles, including the following:

Compatibility of Recycling Goals and the Continued Development and Operation of Integrated Waste Management Facilities, Including Landfills

Conducting Solid Waste Rate Studies and Business Plans

Trends in Solid Waste Collection

Click here for more information about SCS Engineers Solid Waste Services

Posted by Diane Samuels at 11:49 am