This article provides the SCS methodology used to make projections for the financial performance of solid waste collection and disposal during a five-year planning period for the City of Pensacola, Florida. The projections were then used to model different possible rate structures for approval by the City Council.
After discussion and two public readings of the ordinance amending the sanitation rate, the Pensacola City Council adopted a new monthly sanitation rate and established a sanitation equipment surcharge. These additional revenues enable the full funding of departmental services to continue and will provide for ongoing replacement of sanitation equipment.
Cutting Solid Waste Collection Costs
A six-month pilot program was initiated to identify possible program savings and how the program would be rolled out to its residents. An SCS Engineers rate study conducted at that time suggested possible operational savings, which could enable the City to defer a solid waste rate increase. The good results shown during the pilot program encouraged the City decision-makers to move ahead with once a week collection. The latest statistical data from the City of Clearwater, Florida shows a 21% decrease in solid waste generation and an annual savings of $107,000 in tipping fees. Operational savings for the City achieved the projected $400,000 savings as forecasted in the SCS rate study.
Assessing the Financial Performance of Operating and Proposed Solid Waste Programs
Financial analysis is an increasingly important issue in solid waste decision making. In an era where the mantra of doing more with less” is on the lips of most political decision-makers, it is critical to assess the financial performance of operating and proposed solid waste programs. The three issues discussed in this article provide some guidelines on how these kinds of assessments can be conducted.
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Marc J. Rogoff, Ph.D. and Laurel C. Ureña, M.S., explain the major cost categories and how they impact a specific cost analysis for a recycling program. The format uses examples to put the financial information into context for a Public Works Director or Project Manager to understand how cost analysis can help in determining the feasibility of a new or enhanced program.
The economic concept of the time value of money is an important one to understand because it allows the recycling coordinator or analyst to compare the feasibility of different solid waste program alternatives. Driven by interest and inflation, it boils down to one simple rule: a dollar invested tomorrow is worth less than a dollar received today.
Read the full article as published in the Florida APWA Reporter, June 2017 edition.
Read the Doing More with Less series of blogs, articles, and case studies of real solutions in an era of reduced budgets.
One of the biggest challenges our industry faces is how to provide services with fewer resources. Our latest blog series Doing More With Less shares best practices and strategies that are working in the solid waste industry.
The latest statistical data from the City of Clearwater, Florida shows a 21% decrease in solid waste generation and an annual savings of $107,000 in tipping fees. Operational savings for the City achieved the projected $400,000 savings as forecasted in the SCS rate study.