Municipal Solid Waste Services Full Cost Accounting Workbook

Transcription

1 P Municipal Solid Wast Srvics Full Cost Accounting Workbook for Txas Local Govrnmnts Prpard by: Rd-Stow & Co., nc. 101 Wst Sixth Strt, Suit 225 Austin, Txas (512) and Camp Drssr & McK 801 Chrry Strt, Suit 1130 Fort Worth, Txas (817) and Yvtt Thompson, P.E Coit Road, Suit 1107 Dallas, Txas (214) April 1995 RG-127

2 TNRCC John Hall, Chairman Pam Rd, Commissionr Pggy Garnr, Commissionr Dan Parson, Excutiv Dirctor Authorization for us or rproduction of any original matrial containd in this publication, ;.., not obtaind from othr sourcs, is frly grantd. Th Commission would apprciat acknowldgmnt. Publishd and distributd by th Txas Natural Rsourc Consrvation Commission Post Offic Box Austin, Txas Copis of this documnt may b obtaind from th Txas Natural Rsourc Consrvation Commission by contacting Publications at (51 2) Th TNRCC is an qual opportunityjafftrmativ action mployr. Th agncy dos not allow discrimination on th basis of rac, color, rligion, national origin, sx, disability, ag, sxual orintation or vtran status. n complianc with th Amricans with Disabilitis Act, this documnt may b rqustd in altrnat formats by contacting th TNRCC at (512) , Fax , or 14300RElAY-TX (TDD), or by writing P.O. Box Austin, TX

3 TABLE OF CONTENTS SECTON 1. NTRODUCTON PAGE 1. A. Background B. Goals Of Th Workbook C. Bnfits Of Full Cost Accounting And Using Th Workbook D. Commnts Concming Th Workbook THE FULL COST ACCOUNTNG METHODOLOGY A. Full Cost Accounting Dfind B. Cost Componnts 1. Dirct Costs 2. ndirct Costs C. Othr Rvnu HOW TO USE THE WORKBOOK 6 V. A. Stps To B Compltd B. Forms Providd n Th Workbook C. How To Us Th Forms Exhibit 1 Procss Flow Chart Exhibit 2 Data Collction And Form Flow Chart SUMMARY FORMS A. Program Cost Summary (Form A) 8. Rat Calculation Summary (Form B) C. Customr Class Cost Summary (Form C) 9 V. DETALED COST NFORMATON FORMS A. Salaris, Wags & Bnfits (Form 1) B. Vhicl Expns Monthly Vhicl Expns Rport (Form 2) Annual Vhicl Expns Rport (Form 3) C. Capital Costs (Form 4) D. Othr Dirct Landfill Costs Othr Landfill Costs (Form 5) Prdvlopmnt And Construction Costs (Form 6) Closur & Post-Closur Car Costs (Form 7). E. Gnral Opration & Maintnanc Costs (Form 8) F. Othr Costs (Form 9) G. ndirct Costs Mthod : ntrnal Assssmnt Allocation (Form 10) Mthod : Employ Basd Allocation (Form 11)

4 V. V. H. Othr Rvnu. Wight And Volum nformation Monthly Matrials (Form 12) Annual Matrials (Form 13) J. Customr Class Costs - Dtail (Form 14) GLOSSARY ADDENDUM Daily Truck WightNolum Rcord

5 1. NTRODUCTON A. Background n rcnt yars thr has bn an incrasd focus upon th rising costs associatd with providing municipal solid wast srvics. Citis across th stat, both larg and small, hav sn significant incrass in ths costs. As a rsult, th 73rd Txas Lgislatur introducd and passd lgislation which rquird th Txas Natural Rsourc Consrvation Commission (TNRCC) to conduct dmonstrat ion projcts and studis to hlp local govrnmnts and th privat sctor dtrmin rats that rflct th full cost of providing solid wast srvics. To mt this objctiv, in August 1994 th TNRCC rtaind th projct tam of Rd-Stow & Co., nc.; Camp Drssr & McK; and Yvtt Thompson, P.E. to dvlop a full cost accounting workbook for municipal solid wast srvics. 6. Goals Of Th Workbook Th primary goal of th workbook is to provid th municipalrty with a systm for collcting cost data and stablishing rats which rflct th full cost of providing solid wast srvics. Whil th workbook focuss on collction, disposal, rcycling and yard wast programs; th workbook may b usd to dtrmin th costs associatd with all of th ctty's solid wast programs. This would includ th costs associatd with maintaining and oprating th city's houshold hazardous wast program, usd oil collction program, usd battry program, tc. Th trm "city" and "municipality" will b usd throughout th workbook. Howvr, th workbook will also prov bnficial for thos countis, govrnmntal agncis and privat oprators that ar attmpting to stablish cost of srvic basd rats. A scondary goal of th workbook is to hlp th city in dvloping a comprhnsiv solid wast managmnt plan. Onc th municipalrty has dtrmind th full cost of ach solid wast program and th rat pr houshold, it will b abl to us this information to bttr valuat th financial prformanc of th various programs. With this information, th crty can dcid which programs will provid th most bnfit, givn th municipaltty's financial rsourcs. Th workshts and mthodology prsntd in this workbook offr a cost of srvic basd approach with rgard to th dvlopmnt of solid wast rats. Howvr, this workbook is not prsntd as th only mthodology which may b usd to rcord solid wast costs and to calculat customr chargs and tipping fs. A city might dtrmin that it is accuratly capturing all of its solid wast costs using a mthodology and rporting format that is diffrnt from th on prsntd in this workbook. n this cas th workbook can b usd as a guid and rfrnc tool. t is not rquird that citis us this workbook in stablishing thir solid wast srvic rats, rathr it is a tool that is bing mad availabl to citis that bliv thy will bnfit from using th workbook to dvlop thir solid wast customr chargs and tipping fs. 1

6 C. Bnfits Of Full Cost Accounting And Using Th Workbook n addition to th obvious bnfit of dvloping solid wast rats that ar cost of srvic basd, thr ar additional rasons why a municipallty will bnfit from using th workbook to dvlop thir solid wast rats. Thy ar as follows: Th city will bgin to dvlop a databas that has bn compild using a consistnt mthodology. This will allow th crty to asily idntify any trnds with rgard to incrass in tonnag (.g. solid wast, rcyclabls, yard wast, tc.) and costs (.g. salaris, ful, rpairs and maintnanc, dbt srvic, tc.). Th collction of data and dvlopmnt of a solid wad budgt utilizing a full cost accounting approach will aid th municipality in th dvlopmnt of both short-rang and long-rang solid wast managmnt plans. Us of a full cost accounting approach to compil and prsnt solid wast cost data will nabl th ctty to bttr xplain to its customrs th costs associatd with th clty's particular solid wast srvics. Th compilation of solid wast cost data using a full cost accounting approach will allow th city to xamin various financial scnarios and th rsulting impact upon solid wast rats. D. Commnts Concrning Th Workbook Th projct tam apprciats th tim and ffort xpndd by th citis and govrnmntal agncis that assistd in th dvlopmnt of this workbook. W ar confidnt that this workbook will b of bnfit to soli wast srvic providrs throughout Txas, and it will hlp all srvic providrs to bttr manag thir solid wast systm. W wlcom and ncourag any commnts or suggstions with rgard to th workbook and th full cost accounting mthodology dscribd hrin. f you hav any qustions or commnts plas contact: Mr. David S. Yank Rd-Stow & Co., nc. 101 Wst Sixth Strt, Suit 225 Austin, Txas (512)

7 . THE FULL COST ACCOUNTNG METHODOLOGY A. Full Cost Accounting Dfind Full cost accounting is dfind as th idntification and inclusion of all dirct and indirct costs associatd with th providing of a particular srvic or program. For purposs of this workbook, full cost accounting will b discussd from a ratmaking prspctiv, which mphasizs a modifid cash basis. Many of th rcnt articls and prsntations on full cost accounting hav focusd on th topic from a financial rporting and ntrpris fund accounting prspctiv, which utilizs an accrual basis. f a ctty stablishs customr chargs utilizing an accrual basis it runs th risk of incurring a cash shodfall. f a municipaltty wants to nsur th full rcovry of all cash costs associatd with providing solid wast srvics, full cost accounting should b basd on what is calld a "modifid cash basis." Th diffrnc btwn th modifid cash basis and accrual basis is that principal paymnts and cash capital outlays ar usd instad of dprciation xpns to rcovr capital costs. A comparison of th two mthods is dtaild blow: Modifid Cash Basis: Salaris, Wags & Bnfits Gnral O&M Costs Vhicl Expns Capital Costs - Principal Paymnts - ntrst Expns - Cash Capital Outlays Prdvlopmnt Costs Closur & Post-Closur Car Costs Accrual Basis: Salaris, Wags & Bnfits Gnral O&M Costs Vhicl Expns Capital Costs - Dprciation Expns - ntrst Expns Prdvlopmnt Costs Closur & Post-Closur Car Costs Bcaus most citis budgt and oprat thir solid wast utility on a cash basis, it is important that rats b stablishd on a cash basis to nsur th rcovry of th cash costs associatd with ths srvics. Us of th accrual basis in stablishing solid wast rats could rsult in a potntial undr rcovry of solid wast rvnus. For instanc, if a ctty has a transfr station which is bing dprciatd ovr 30 yars but is financd with a 20 yar rvnu bond, th bond's annual principal paymnts will b gratr than th annual dprciation xpns. This will rsult in a cash shortfall for th city in th arly yars and a surplus in th latr yars. n addition, if th city's solid wast facilitis ar financd with rvnu bonds, thr ar typically covrag and rsrv rquirmnts. f ths covrag and rsrv rquirmnts ar not incorporatd into th rvnu rquirmnt, th crty risks not only a rvnu shodfall, but th potntial violation of loan covnants. Th violation of ths covnants could rsult in th city ithr dfaulting on its dbt or at th vry last, rstricting th city from issuing any nw rvnu bonds. Th us of th accrual basis to st rats also ntrs a lvl of uncrtainty for th invstmnt community which is familiar with th stablishmnt of municipal utility rats on a cash basis. This uncrtainty could advrsly impact th city's dbt ratings. Th modifid cash basis should aid th city in avoiding any potntial cash shodfalls whil maintaining th financial intgrity of th city's solid wast utilrty. 3

8 Th trm "modifid cash basis" is usd bcaus two significant costs that ar uniqu to th opration of a landfill nd to b rcognizd in th stablishmnt of solid wast rats. Ths two xpnditurs ar prdvlopmnt costs and closur & post-closur car costs. Sinc both of ths costs ar matrial in natur thy should b rcognizd during th lif of th landfill vrsus bing xpnsd whn th costs ar incurrd. Ths costs ar discussd in gratr dtail in Sction V. Dtaild Cost nformation Forms (Othr Dirct Landfill Costs - Forms 5, 6 and 7). B. Cost Componnts Full cost accounting is dfind as th "idntification and inclusion of all dirct and indirct costs associatd with providing a particular srvic." Th first stp in dvloping cost of srvic basd rats for th city's solid wast srvics is to dtrmin what costs ar to b includd. 1. Dirct Costs Dirct Costs ar thos xpnditurs which ar spcifically budgtd for solid wast srvics. Thy ar also dirctly and clarly attributabl to th spcific srvic prformd. Th us of an ntrpris fund for tracking and rcording a crty's solid wast costs will mak th idntification of dirct costs asir. Howvr, vn if a city rcords its solid wast costs in th gnral fund, ths costs can usually b idntifid using th city budgt and supporting financial rcords. Exampls of dirct costs includ: Salaris, Wags & Bnfits Dbt Srvic Annual Cash Capital Outlays Gnral O&M Costs Equipmnt O&M Costs Profssional Srvics Utilitis Contract Srvics Closur & Post-Closur Car Costs Prdvlopmnt Costs Th workbook will provid th mans to calculat not only th dirct costs associatd with th city's solid wast utility, but also th dirct assignmnt and allocation of ths costs btwn individual solid wast programs, such as collction, disposal, rcycling and yard wast. Th workbook sparats dirct costs into th following six sctions: Salaris, Wags & Bnfits Vhicl Expns Capital Costs Othr Landfill Costs Gnral O&M Costs Othr Costs 2. ndirct Costs Th full cost for a municipal solid wast program cannot b calculatd without taking into account th indirct costs associatd with th program. ndirct costs rprsnt srvics which ar providd to th city's solid wast oprations by othr dpartmnts within th city. ndirct costs ar thos that rlat to administrativ or gnral srvics that ar shard by many dpartmnts within a municipality. ndirct costs includ such srvics as: Administrat iodcity Managr Cntral Purchasing Financ Dpartmnt AccountingBilli ng City Council Lgal Dpartmnt Prsonnl Administration City Enginr Managmnt nformation Systms Gnral nsuranc 4

9 Thr ar svral accptd and commonly usd mthods for allocating indirct costs to a city's solid wast utility. Providd in th workbook is a dscription of two allocation mthodologis. Th city may us ithr of ths mthodologis to allocat indirct costs to its solid wast utility (S Sction V. Dtaild Cost nformation Forms, ndirct Costs - Forms 10 and 11). A municipality is not rquird to us on of th indirct cost allocation mthodologis prsntd in this workbook. Howvr, th municipality should dvlop an allocation mthodology that accuratly capturs th indirct costs associatd with th clty's solid wast programs. f a crty prsntly has an allocation mthodology in plac, thy nd only to vriiy that it is a fair and quitabl mthodology. C. Othr Rvnu Onc th city has idntifid its dirct and indirct costs, th crty must account for any spcial rvnus gnratd by th city's solid wast programs. Ths spcial rvnus may includ rvnus from th sal of rcyclabl s, intrst incom and miscllanous incom. Ths rvnus ar thn subtractd from th dirct and indirct costs in dvloping cost of srvic basd rats. Ths rvnus will b discussd in gratr dtail in Sction V. Dtaild Cost nformation Forms, Othr Rvnu. 5

10 111. HOW TO USE THE WORKBOOK A. Stps To B Compltd Th purpos of th workbook is to assist th municipalrty in dvloping cost of srvic basd rats for th ctty's solid wast programs. Th workbook was dsignd as a tool to assist th municipality in capturing th ncssary financial and volumtric data that will allow th city to calculat solid wast rats (.g. customr chargs, tipping fs, tc.) that rflct th full cost of providing th various solid wast programs (.g. collction, disposal, rcycling, yard wast, tc.). Thr ar fiv stps that th city must follow in ordr to calculat its cost of srvic basd solid wast rats: Stp 1. Stp 2. Stp 3. Stp 4. Th city must idntrfy all dirct costs associatd with th crty's solid wast srvics. Th city must idntify all indirct costs associatd with th city's solid wast srvics. Using th city's financial rcords, th city must dirctly assign and/or allocat th solid wast costs (idntifid in Stps 1 & 2) to th solid wast programs which ar th bnficiaris of ths xpnditurs. f applicabl, th city must allocat th program costs idntifid in Stp 3 (.g. collction costs, disposal costs, tc.) among th crty's solid wast customr classs (.g. rsidntial, commrcial, tc.) Stp 4 is only ncssary whn th city srvs mor than on customr class. Stp 5. Th final stp is to calculat th crty's usr fs. Th workbook will provid th city with th ncssary forms to complt ths fiv stps. Onc th city has compltd ths stps, th crty will thn b abl to idnttfy th cost of ach solid wast program offrd by th city, as wll as th cost pr customr srvd (s Exhibit 1). Dpnding on how th ctty is prsntly rcording its solid wast costs and volums, th city may not hav to us th workbook to complt all fiv stps. For instanc, if th city rcords its dirct and indirct solid wast costs in a solid wast ntrpris fund, thn th city dos not nd to us th workbook to complt Stps 1 and 2. Sinc vry city is uniqu, ach city will hav to rviw th ntir workbook and thn dtrmin which forms in th workbook should b usd to calculat th city's solid wast rats. 6

11 rrlm nformation Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Procss Flow Chart Exhibit 1 City Budgt and Solid Wast Rcords dntify Dirctcosts dntify MSW ndirct Costs 1 dntify cost Prprogram J dntify Cost Pr Customr From:.) Entrpris Fund dnt Dirctly from Budgt; or!) Gnral Fund dnttfl Dirctly from Budgt or Calculat Using Forms 1 through 9. Us: 1) ndirct Costs Alrady dntifid by City or cprocd to Stp 3); 2) ndirct Costs Nd to b Dtrmind ) ntrnal Assssmnt Allocation (Form 10); or b) Employ Basd Allocation (Form 11). 1) Dirct Costs Ar Dirctly Assignd or Allocatd by Program ) f Dirct Costs Alrady dntifid by Program (in Stp l), Procd to Stp 4; or )) f Dirct Costs not dntifid by Program, Calculat Program Costs Using Forms 1 through 9. and 2) ndirct Costs Allocatd by Program Basd on a Composit of Dirct costs or # of Employs. cawat TOM 1) Dirct Costs Ar Dirctly Assignd or Allocatd by Customr Class ) Dirct Costs Alrady dntifid by Customr Class; or 3) f Dirct Costs not dntifid by Customr Class, Calculat Customr Class Costs Using Form 14. and 2) lndirct Costs Allocatd by Customr Class Basd on a Composit of d. calculat Total Cost MSW = Municipal Solid Wast Rats to b Calculatd: 1) Rat Pr Houshold 2) Rat Pr Containr 3) Rat Pr Spcial Program ( Tir, Battry, Usd 011, tc.)

12 B. Forms Providd n Th Workbook Th workbook is constructd in such a mannr that thr ar thr summary forms and fourtn data collction forms that may b usd by th city to compil its dtaild cost and volumtric data. Forms A and B and Forms may b usd to dtrmin th cost for ach of th city's solid wast programs. For thos citis that hav mor than on class of customrs (.g. rsidntial, commrcial, tc.), Form C and Form 14 will hlp thos citis to dtrmin th program costs by customr class. Exhibit 2 provids a flow chart dscribing how th forms ar usd to dvlop a city's solid wast rats. Th following forms ar includd in th workbook: Summary Forms Form A Form B Form C Program Cost Summary Rat Calculation Summary Customr Class Cost Summary Dtaild Cost nformation Forms Form 1 Salaris, Wags & Bnfits Form 2 Form 3 Form 4 Form 5 Form 6 Form 7 Form 8 Form 9 Form 10 Form 11 Monthly Vhicl Expns Rport Annual Vhicl Expns Rport Capital Costs Othr Landfill Costs Prdvlopmnt And Construction Costs Closur & Post-Closur Car Costs Gnral Opration & Maintnanc Costs Othr Costs ndirct Costs - Mthod : ntrnal Assssmnt Allocation ndirct Costs - Mthod : Employ Basd Allocation Dtaild Volum nformation Forms Form 12 Monthly Matrials Form 13 Annual Matrials Dtaild Customr Class Allocation Form Form 14 Customr Class Costs - Dtail 7

13 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Data Collction And Form Flow Chart Exhibit 2 Dtaild Cost nformation Forms - Form 1 Salaris, Wags & Bnfits 1 Form 2 Monthly Vhicl Expns Rport. 1 Form 3 Form 4 Form 5 Annual Vhicl Expns Rport Capital Costs Othr Landfill Costs 6 Rdvlopmnt And Construction Costs 7 Closur & Post-Closur Car Costs Form 9 Othr Costs Opration & Maintnanc 10 ndirct Costs - Mthod : ntrnal Assssmnt Allocation 11 ndirct Costs - Mthod 11: - Employ Basd Allocation Program Cost Summary Summary Forms i Rat Calculation Summary A Customr Class Cost Summary (if applicabl) FormC Form13 Annual Matrials r- Form 12 Monthly Matrials Customr Class Costs - Dtail

14 C. How To Us Th Forms Aftr th clty has rviwd th workbook, it can thn dtrmin which forms nd to b usd to calculat its solid wast rats. Form A, Program Cost Summary, will provid a brakdown of th city's total solid wast costs, by program. f th clty has a solid wast budgt, it should b ntrd into Form A, column A. Aftr idntifying all dirct costs, indirct costs and rvnu offsts associatd with a cws solid wast utility, th city should allocat ths costs by solid wast program (Stp 3). Citis which alrady track and rcord thir solid wast costs by program will not nd to us Forms Thos citis that hav not idntifid thir solid wast costs by program can us Forms to calculat th cost of ach solid wast program. Basd on th clty's financial rcords, thy may not nd to us all of th dtaild cost information forms. For instanc, a cws accounting systm might track capital costs by program, thrfor thy would not nd to us Form 4, Capital Costs. Aftr idntifying th costs for ach of th city's diffrnt solid wast programs, th nxt stp is to allocat th costs by customr class (Stp 4). This stp may not nd to b compltd by all citis, dpnding upon th typs of solid wast programs offrd by th city, as wll as th typs of customrs srvd. Typically, citis will not nd to allocat program costs by customr class unlss thy offr collction srvic to rsidntial and commrcial customrs. To idntify program costs, by customr class, th city may us Form C and Form 14. Th forms in this workbook ar dsignd to provid a gnric procss, so thy can b usd by a wid varity of citis in Txas, all of which hav diffrnt accounting and financial rporting rquirmnts. Basd on a city's spcific nds, it may dcid to crat its own supplmntal forms. 8

15 V. SUMMARY FORMS This sction of th workbook provids a brif dscription of th summary forms and how th city can us ths forms to idntify th cost of ach solid wast program and dvlop th appropriat customr chargs and tipping fs. A. Program Cost Summary (Form A) Th Program Cost Summary Form will allow th city to dtrmin th cost of ach solid wast program offrd by th city. Th bginning point for most citis will b Column A, whr thy will ntr th municipality's solid wast budgt. Columns B-F will b usd to dtrmin th cost associatd with ach of th city's solid wast programs. Th spcific program costs can b dtrmind ithr from th city's own financial rcords or by using Forms Thos citis that provid solid wast srvics, but do not hav a formal solid wast budgt, can us Forms 1-11 to dtrmin th cost of ach solid wast program. Th city can thn total th program costs to arriv at th city's solid wast budgt. This situation may occur whn a municipality's solid wast srvics ar includd in th gnral fund and th solid wast xpnditurs ar not summarizd in a solid wast budgt. Finally, this workbook is bing mad availabl to citis in an attmpt to hlp thm idntify all of thir solid wast costs. f during th compltion of th workbook a city discovrs that thir solid wast budgt dos not rflct all of th solid wast costs actually incurrd by th city, th workbook can b usd to assist in rvising th city's solid wast budgt to rflct th full cost of providing ths srvics. B. Rat Calculation Summary (Form B) Th Rat Calculation Summary Form will b usd to dtrmin th appropriat customr chargs and tipping fs that will allow th city to rcovr th cost of providing solid wast srvics to its customrs. Lins 1-3 will b usd to calculat rats for ach solid wast program offrd by th city, providd that program has only on class of customrs. f th city has mor than on customr class for a particular solid wast program, thn lins 4-6 will b usd to calculat th rats. Proclram Rats (lins 1-31 f th city has only on customr class and a standard billing unit for all customrs of a particular solid wast program, thn lins 1-3 of Form B can b usd to calculat th appropriat rat. Th program cost data compild in th Program Cost Summary (Form A, lin 22) will b dividd by th appropriat numbr of billing units to arriv at th cost pr houshold or containr. Customr Class Rats (lins 4-61 f th city provids a solid wast program which has mor than on customr class, thn th rats must b dtrmind using lins 4-6 of Form B. An xampl of such a srvic would b if th city offrd rsidntial collction srvic (using standard 30, 60 and 90 gallon containrs) and commrcial collction srvic (using 4, 8 and 12 cubic yard containrs). n this cas th city will us th program cost data compild in th Customr Class Cost Summary (Form C, lin 22) and dividd by th appropriat billing units to arriv at th rats for rsidntial and commrcial customrs. 9

16 f a ctty is stablishing rats for rsidntial customrs, ths rats ar usually calculatd "pr houshold." f a city is stablishing rats for commrcial customrs that us th largr commrcial containrs, ths rats ar usually dtrmind basd on th siz of th containr and frquncy of pickups. Each city will nd to dtrmin th appropriat billing units for ach of th solid wast srvics offrd to its customrs (.9. $ pr houshold, $ pr containr, $ pr ton, $ pr gallon, tc.). f a ctty provids only rsidntial srvic and divids its program costs (Form 6, lin 1) by numbr of housholds srvd (Form B, lin 2) this will provid th annual cost pr houshold for ach program. By summing th annual costs pr houshold for ach program, th city can thn dtrmin th total annual cost pr houshold for all solid wast srvics. An xampl is as follows: Collction D ispo sa Rcycling Total Total Full Cost $1,000,000 $1,250,000 $750,000 $3,000,000 Billing Units 18,000 18,000 18,000 18,000 (housholds srvd) Annual Cost Pr Billing Unit $55.56 $69.44 $41.67 $ Th annual cost pr houshold is $ n ordr to rcovr th full cost of providing ths srvics, th city will nd to stablish a monthly customr charg of $13.89 ($ / 12 months). Th rats calculatd in this xampl assum th city will bill its rsidntial customrs a flat monthly charg pr houshold for solid wast srvics. n othr words, all customrs pay th sam amount. n th past fw yars variabl rats or "Pay-As-You-Throw" rats hav bcom incrasingly mor commonplac in th Unitd Stats. Variabl rat f structurs ar just now bginning to b implmntd by a fw citis in Txas. Whil rlativly fw citis in Txas hav put in plac a variabl rat f structur, thy ar gaining attntion bcaus th rat structur ncourags rsidnts to minimiz th amount of wast thy gnrat. Using a variabl rat structur, th mor garbag a houshold gnrats th largr that customr's garbag bill. Whil a dscription of how to dvlop variabl rats is byond th scop of this workbook, us of this workbook will allow th city to dtrmin its full cost of providing solid wast srvics. This information can thn b usd to assist th city in dvloping variabl rats for its solid wast srvics. C. Customr Class Cost Summary (Form C) Th Customr Class Cost Summary will only b usd by thos citis that offr a solid wast program to mor than on customr class. This form is similar to th Program Cost Summary (Form A), with th xcption that this form is usd to assign costs btwn customr classs, instad of btwn programs. Onc ths costs hav bn assignd, th city may thn us Form B, lins 4-6 to calculat th solid wast rats, by customr class. 10

17 Txas Natural Rsourc Consrvation Commission S Srvic Providr: 1 Dat Prpard: Fiscal Yar: A B C D E F MSW Program Catgory rnllrtinn 1 Disnnsal 1 Rcvclinn Yard Wast Othr Salaris, Wags & Bnfits (Form 1) Vhicl Expns (Forms 2 and 3) Othr Long Trm Dbt Paymnt (Form 4) Short Trm Dbt Paymnt (Form 4) Cash Capital Outlays (Form 4) Extraordinarv Cash Outlaw (Form 4 Sub-Total Gnral O&M (Form 8) Othr Costs (Form 9) Total Dirct Costs 1 1 Othr Rvnu: (to Form B, Lin 1) Not: (a) For thos citis that hav contractd to dispos of thir solid wast at a privat landfill or at a landfill owratd bv a Drivat wast managmnt comaanv

18 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook 1 Srvic Providr: Dat Prpard: Fiscal Yar: Total Full Cost (From Form A, Lin 22 ) A B C D E F Program Catgory Collction Disposal Rcycling Yard Wast Othr Total 2 Billing Units (a) Cost Pr Billing Unit 3 ( Lin 1 / Lin 2) Program: Rsidntial Commrcial Othr 4 Total Full Cost (From Form C, Lin 22) 5 Billing Units (a) Cost Pr Billing Unit 6 (Lin 4 / Lin 5) Nots: (a) Numbr of housholds srvd, commrcial containrs x frquncy, tons, tc. (b) This sction should b compltd for ach solid wast program that has mor than on customr class.

19 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Lrvic Providr: A B C D alaris, Wags & Bnfits MSW PROGRAM: Program Cost Customr Classs Rsidntial Commrcial Othr ;hart Trm Dbt Paymnt :ash Capital Outlays traordinary Cash Outlays hr Landfill Costs ntractual Dismsal Srvic (c) >nral O&M khr Costs rdirct Costs (b): Total ndirct Costs 1 Mhr Rvnu (b): ntrst ncom Sal of Rcyclabls vliscllanous Rvnus Zquipmnt Salvag Valu 3hr Total Full Cost (Lins ) f (to Form B, Lin 4) ots: a) This form should b compltd for ach solid wast program that has mor than on class of customrs. b) Calculatd using Form 14. c) For thos citis that hav contractd to dispos of thir solid wast at a privat landfill or at a landfill opratd by a privat wast managmnt company, th annual amount paid should b ntrd hr.

20 V. DETALED COST NFORMATON FORMS A. Salaris, Wags 81 Bnfits (Form 1) This form is dsignd to summariz a clty's dtaild dirct labor and mploy bnfit costs in an annual format which may thn b assignd to th city's various solid wast programs. Th purpos of this form is to captur th salaris, wags and bnfits of only thos mploys who work xclusivly within th city's solid wast dpartmnt. Th form will includ th costs associatd with both full tim and part tim mploys. Th form is not to b usd to captur th salaris, wags and bnfits associatd with prsonnl such as th city mangr, dirctor of financ, tc. Ths salaris, or portions throf, will b capturd in th indirct cost allocation forms as calculatd using ithr Form 10 or 11. Th city will nd to complt on Salaris, Wags & Bnfits Form for ach of th city's solid wast programs. For instanc, if th city has thr solid wast programs (collction, disposal and rcycling), th city should complt this form for ach program. This will allow th city to clarly idntify th salaris, wags and bnfits associatd with ach solid wast program. f th city's annual budgt alrady provids salaris, wags and bnfits by program, th city dos not nd to us Form 1. nstad, th city may simply ntr th salaris, wags and bnfits by program, dirctly from th city's budgt on to th Program Cost Summav Form (Form A, lin 1). Employs who prform dutis for mor than on program should dsignat such information whn filling out thir dtaild timshts. Distinctions should b mad btwn diffrnt solid wast programs, as wll as btwn rsidntial and commrcial customr classs, if applicabl. Data to b ntrd into Form 1 is as follows: Srvic Providr: Nam of city, govrnmnt agncy, or privat oprator complting th workbook. Dat Prpard: Dat th form is compltd. Fiscal Yar: Rcord th fiscal yar which applis. Program: Rcord th nam of th solid wast program. Th city should fill out on Salaris, Wags & Bnfit Form for ach of th city's solid wast programs. Employ: Entr th nam or othr idntification of ach mploy who works on this program. Total Wags: Rcord ach mploy's annual wags including ovrtim, bonuss and othr montary compnsation. (Som of ths itms may nd to b stimatd.) Bnfits: nclud FCA, vacatiodsick lav, workr's compnsation, unmploymnt insuranc, rtirmnt contribution and othr prtinnt bnfits. Ths costs can b dvlopd on an individual mploy basis or using a composit factor dpnding on th typ of rcords kpt by th municipality. Total Wags & Bnfits: Combind Wags and Bnfits for th mploy. 11

21 0 Proportion of Tim on this Program: Rcord prcntag of tim that mploy spnds working on this program. Aftr complting th Salaris, Wags & Bnfit Forms for ach program, mak sur for any individuals whos tim was allocatd btwn diffrnt programs that th prcntags total to 100%. 0 Wags and Bnfits this Program: This ntry is calculatd by multiplying th "Total Wags and Bnfits" column by th "Proportion of Tim on this Program." Th salaris, wags and bnfits for ach program ar thn totalld at th bottom of Form 1 and ntrd on th Salaris, Wags & Bnfits lin of th Program Cost Summary for ach rspctiv program (Form A, lin 1). 12

22 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Srvic Providr: Dat Prpard: Fiscal Yar: Program: Total Proportion of Total Wags & Tim on Wags and Bnfits Total Salaris, Wags & Bnfits (To Form A, Lin 1)

23 B. Vhicl Expns (Forms 2 and 3) Th purpos of th vhicl xpns forms is to assist th city in budgting its annual costs associatd with oprating and maintaining quipmnt for ach of th city's solid wast programs. Ths costs includ parts, supplis, ful, and all labor involvd in th maintnanc and rpair of th city's solid wast vhicls. Thr ar a numbr of mthods which th crty may us to track and rcord ths costs: 1) th us of an intrnal srvics fund; 2) th us of som othr financial rporting systm within th crty; or 3) th us of Forms 2 and 3. Th workbook will provid a brif ovrviw of th first two accounting mthods and a mor dtaild dscription of Forms 2 and 3. f th city has a currnt vhicl cost rporting systm that allows thm to budgt vhicl xpnss, and idntify which solid wast program(s) uss th vhicl, th city will not nd to us Forms 2 and 3. For thos citis that do not hav a systm in plac to track and rcord vhicl costs by solid wast program, Forms 2 and 3 will hlp citis to idntify ths costs. 1) ntrnal Srvics Funds Prior to dtrmining th city's vhicl costs for ach solid wast program, th city should first rviw th procss it is currntly using to rcord vhicl costs. Many citis us an intrnal srvics fund to track and rcord th costs associatd with purchasing and maintaining its flt of city vhicls. This quipmnt is' thn "lasd" to th individual dpartmnts within th city. f th city tracks and rcords all vhicl costs (purchass, rpairs, ful, tc.) through th us of an intmal srvics fund, th city will probably not hav to us Forms 2 and 3 to dtrmin vhicl costs. Onc th intrnal srvics fund has dtrmind th annual costs associatd with ach of th clty's solid wast vhicls, th only rmaining stp is to idntify which vhicls, or portions of vhicls ar associatd with spcific solid wast programs. Th city can thn dtrmin th vhicl costs associatd with ach solid wast program. 2) Othr Financial Rporting Systms Whil a city may not hav an intrnal srvics fund, it may still utiliz a financial rporting systm that allows th city to track costs associatd with ach vhicl. As long as th systm is capabl of rcording th costs associatd with ach vhicl and th city can dtrmin which soli wast program(s) uss th vhicl, th city will not hav to us Forms 2 and 3. 3) Forms 2 and 3 For a city that has not historically trackd vhicl xpnss, by vhicl, Forms 2 and 3 may b usd to dtrmin ths costs. Form 2 will nd to b filld out monthly for ach solid wast program. For instanc, using Form 2 th city's collction program will list ach pic of quipmnt that is usd in th collction of solid wast, including quipmnt that is partially usd (xampl: 50% collction, 50% rcycling). Aftr complting a Form 2 for ach of th city's solid wast programs, th city will hav th total monthly ful, rpair labor, parts and supplis, outsid costs, and las costs associatd with ach vhicl in a solid wast program. Th annual vhicl cost for ach program is calculatd by complting Form 2 on a monthly basis for ach solid wast program and thn rcording th monthly costs on Form 3. This will provid th crty with what it costs on an annual basis to own and oprat its flt of solid wast vhicls by program. This figur may thn b usd as a basis to dtrmin th amount of vhicl xpnss which will b budgtd for ach solid wast program. Th budgtd amount may thn b ntrd on Form A, lin 2. f th costassociatd with th purchas of vhicls is includd in th intrnal srvics fund or on Forms 2 and 3, mak sur ths sam costs ar not includd on th Capital Costs Form (Form 4) to avoid "doubl-counting" th purchas costs of any vhicls. 13

24 Forms 2 and 3 hav th following ntris: Srvic Providr: Nam of city, govrnmnt agncy, or privat oprator complting th workbook. Dat Prpard: Dat th form is compltd. Month: Th month for which this rport applis. Program: Th program for which th form is bing compltd. Vhicl D: Numbr or othr idntification for th spcific vhicl. Ful: Total ful costs. Rpair Labor: Costs of all labor chargs for rpair. PartdSupplis: Cost of all parts and fluids usd for rpair and maintnanc. Outsid Costs: Any xtrnal rpair srvics rquird. Las Cost: f th city purchass its vhicls through an intmal srvics fund and th financing costs ar not rcordd on th Capital Costs Form (Form 4), th city should rcord th monthly "las cost" in this column. Total Monthly Costs of Vhicl: This column provids a total of th monthly costs incurrd for ach vhicl. Prcnt of Us in Program: Th proportion of tim that th vhicl is usd by ach of th ctty's solid wast programs. For most vhicls "100%" will b ntrd in this blank. Howvr, if a vhicl is usd 50% by collction and 50% by rcycling, thn 50% should b ntrd for this vhicl on th Form 2 which is compltd for th collction program, as wll as th Form 2 which is compltd for th rcycling program. Total Monthly Program Costs of Vhicl: Th rsult of multiplying "Total Monthly Costs of Vhicl" by th "Prcnt of Us in Program." This dollar amount rprsnts th proportion of th vhicl costs which ar associatd with this particular solid wast program. Total Monthly Vhicl Expns by Program: Th total monthly vhicl xpns by program is totalld at th bottom of Form 2. Th monthly totals ar thn ntrd on Form 3 to arrii at th annual vhicl costs of ach program. 14

25 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Srvic Providr: Dat Prpard: Month: Progralll: Total YO Total Monthly Rpair Outsid Monthly Costs of Us Program costs ( To Form 3)

26 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook r srvic Providr: Dat Prpard: 1 Fiscal Yar: program: Month Total Monthly Vhicl Exons by Prmram Jaw Fbruary March May Jun July August Sptmbr Octobr Novmbr Dcmbr 1 Annual Vhicl Expns by Program

27 ~ oprator C. Capital Costs (Form 4) Providing municipal solid wast srvics rquirs that quipmnt, facilitis and land b purchasd and usd. Som of th "smallr" asst purchass ar oftn financd with "cash capital outlays." n ths instancs, th assts ar paid for with cash, rathr than through th issuanc of dbt. Largr capital purchass such as land, th construction of facilitis, and th purchas of som typs of quipmnt ar usually fundd with dbt. Cash capital outlays ar usd as a "financing vhicl" by most solid wast utilitis and ar oftn rlativly constant from on yar to th nxt. As such, th historical cash capital outlays of a municipal solid wast program srvic can oftn b usd to prdict futur cash capital outlays. Financing largr xpnditurs with dbt allows th ratabl collction of funds ovr th lif of th asst. Sinc most municipalitis oprat on a cash basis, this workbook uss what is calld a "modifid cash basis" to nsur th stablishmnt of cost of srvic basd solid wast rats. Using annual principal and cash capital outlays in liu of dprciation xpns is an important diffrnc btwn th modifid cash basis and th accrual basis. Th modifid cash basis is prfrrd in th dvlopmnt of cost of srvic and rat dsign studis, sinc th purpos of ths studis is to captur th full "cash" cost of providing th solid wast srvic on an annual basis. As mntiond arlir in th workbook, thr ar situations whr th us of dprciation xpns in th stablishmnt of solid wast rats would gnrat insiufficint cash rvnus on an annual basis to rcovr th dbt srvic associatd with an asst. As mntiond in th Vhicl Expns Sction (Forms 2 and 3), many municipalitis us an intrnal srvics fund to purchas and maintain quipmnt. Ths funds purchas th rquird quipmnt and thn "las" it to th othr city dpartmnts using a dprciation factor. This is an accptabl mthodology, with th las paymnt usd in liu of dbt srvic, spcially sinc ths assts ar oftn purchasd with cash instad of dbt. For purposs of this workbook, th intrnal srvics fund "las cost" appars on th workbook's Vhicl Expns Form (Form 2), in anticipation of th sam intrnal srvics fund also providing maintnanc and rpair activitis as wll. f a solid wast program plans to purchas a major pic of quipmnt without using dbt, or an intrnal srvics fund, its impact on "cash capital outlays" will b significant at th tim of purchas and not accptabl from a rat dsign viwpoint. n this spcial cas an amortization factor should b usd in ordr to rcoup th cash outlay ratably ovr th lif of th asst. This situation is rfrrd to as an "xtraordinary cash outlay" on Form 4. n this cas, th annual cost of th asst is dtrmind by dividing th purchas pric by th forcastd srvic lif. Salvag valus, whn ralizd, will b rcordd in th "Othr Rvnu" sction of Form A, Program Cost Summary. Form 4, Capital Costs, is a form that can hlp a crty dtrmin th annual capital costs ndd for ach solid wast program by considring th annual cash outlays and dbt srvic associatd with ach program. Th city will nd to complt a Capital Costs Form for ach of th city's solid wast programs. This will allow th city to clarly idntify th capital costs associatd with ach solid wast program. Form 4 has th following ntris: Srvic Providr: Nam of city, govrnmnt agncy, or privat complting th workbook. Dat Prpard: Dat th form is compltd. 15

28 Fiscal Yar: Rcord th fiscal yar that applis. Program: Th solid wast program that th dbt srvic and cash outlays support. Long Trm Dbt Paymnt: 0 Short-Trm Dbt Paymnt: Dbt ssu - Th dat and siz of th bond issu. Total Principal and ntrst (P&l) Annual Amount - Th total annual paymnt (principal and intrst) for th spcifid bond. Dpnding on th payback schdul this numbr can chang from yar to yar or rmain constant. n addition, applicabl covrag and rvnu rquirmnts should b includd for rvnu bonds. Prcntag To Program - Th proportion of assts rlatd to this program as a prcntag of th ntir dbt issu. A dscription of th fundd assts should b spcifid in th bond issu. f th lvl of dtail is insufficint to dvlop a prcntag, stimats should b mad with original purchas prics. Program P&l Annual Amount - Calculatd by multiplying th "Total P&l Annual Amount" by th "Prcntag to Program." Yar Dbt Expirs - This is th final yar of dbt srvic associatd with th bond issu. This column is not usd in th capital cost analysis but is idntifid to facilitat subsqunt rporting. Early dbt payoffs and/or rfinancings will nd to b considrd in futur rport dvlopmnt. 8 Dbt ssu - Dscription of warrant or short-trm lnding instrumnt. 8 Total P&l Annual Amount - Annual paymnt for dbt issu. 8 Prcntag To Program - Prcntag of principal which was idntifid for assts usd by this program. Ths short-trm dbt issus ar normally passd by city ordinanc. Th original ordinanc should hav a dscription of th assts it was to b usd for. Mak stimats as ncssary to dvlop prcntag. 8 Program P&l Annual Amount - Calculatd by multiplying th "Total P&l Annual Amount" by th "Prcntag to Program." 8 Yar Dbt Expirs - This is th final yar of dbt srvic associatd with th bond issu. 16

29 Cash Capital Outlays: Dscription - Cash Capital Outlays ar gnrally dscribd in th city's budgt. f insufficint dtail is availabl at th budgt lvl, stimats must b mad and/or supporting analysis usd. Purchas Amount - Dollars idntifid for ach group of capital xpnd it u rs. m Prcntag To Program - Prcntag of ach capital xpnditur which is to b usd by this solid wast program. Again, dtail must b locatd or stimatd to dvlop this prcntag. Program Annual Amount - Calculatd by multiplying "Purchas Amount" by th "Prcntag To Program." f a larg group of program assts is budgtd to b purchasd from cash capital outlays, which is considrd outsid th cours of normal oprations, an amortization of this xpnditur may b usd to avoid "rat spiks." Th following ntris ar usd in this situation: 0 Extraordinary Cash Outlays Dscription - Larg capital assts budgtd to b purchasd with cash. Purchas Amount - Estimatd or actual purchas pric. m Expctd Lif - Numbr of yars th quipmnt is projctd to rmain in srvic. Amortizd Annual Amount - Purchas pric dividd by xpctd lif. Any salvag valu ralizd at th nd of th asst's lif will b includd in Othr Rvnus (Form A, Program Cost Summary). Rtirmnt Yar - Dat th pic of quipmnt is forcastd to b takn out of srvic. This column is includd to facilitat subsqunt rportings. 17

30 - Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Long Trm Dbt Paymnt TotalP& Prcntag ProgramP& Yar Dbt Dbt ssu Annual Amount To Program Annual Amount Expirs Total (1) Cash Capital Outlays Purchas Prcntag Dscription Amount ToRogram AnnualAmount 1 Total (1) Total (1) (1) To Form A, Lins 4-7

31 D. Othr Dirct Landfill Costs (Forms 5, 6 and 7) Landfill managmnt has bcom an incrasingly complx businss. Landfill oprators ar facd with closur costs, nvironmntal monitoring, prdvlopmnt costs, construction costs, not to mntion th costs associatd with th day-to-day opration of a landfill. Whil th costs of salaris, vhicls, gnral O&M, tc. ar capturd using th othr forms providd in th workbook, thr ar crtain costs which ar uniqu to th opration of a landfill. Thr forms hav bn spcifically dvlopd to addrss ths costs. Form 5 Othr Landfill Costs may b usd to rcord th annual costs incurrd in oprating a landfill. Daily covr and lachat collction ar xampls of som of th costs which may b rcordd on Form 5. n addition, "Prdvlopmnt and Construction Costs" and "Closur & Post- Closur Car Costs" may b calculatd using Forms 6 and 7, rspctivly. Th totals on Forms 6 and 7 ar thn brought forward and rcordd on Form 5, lins 11 and 12. Onc Form 5, Othr Landfill Costs, has bn compltd, th total cost on lin 16 is rcordd on th Program Cost Summary Form (Form A, lin 8, column C.) Not: f prdvlopmnt and construction costs ar alrady includd on th Capital Costs Form (Form 4), ths costs should not b includd on Form 5. f ths costs ar rcordd on both forms, this will rsult in an ovrstatmnt of disposal costs. Othr Landfill Costs (Form 5) Data to b ntrd into Form 5 is as follows: 0 Srvic Providr: Nam of city, govrnmnt agncy, or privat oprator complting th workbook. 0 Dat Prpard: Dat th form is compltd. 0 Fiscal Yar: Rcord th fiscal yar that applis. 0 Sit: Physical location of th landfill, nam or prmit numbr. 0 Oprating Costs: Th annual costs of oprating th landfill should b rcordd on lins 1 through 9. Ths costs should not includ salaris, wags & bnfits; vhicl xpnss; gnral O&M; or any othr costs which ar alrady rcordd lswhr using th forms providd in th workbook. To do so would rsult in an ovrstatmnt of th ctty's disposal costs. 0 Annualizd Prdvlopmnt and Construction Costs: Ths costs ar calculatd on Form 6 and should b brought forward and ntrd on this lin. This lin may b $0 if ths costs ar fully capturd in th Capital Costs Form (Form 4). 0 Closur and Post-Closur Car Costs: Ths costs ar calculatd on Form 7 and should b brought forward and ntrd on this lin. 0 Total: Sum lins 10 and 15. This is th cws annual Othr Landfill Costs and should b rcordd on Form A, lin 8, column C. 18

32 - Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Oprating Costs: 1 CovrMatrial 2 Laboratory Tsting 3 prmits 4 Gas Collction 5 lachat Collction & Disposal 6 Enginring 7 Lgal 8 Rgulatory Fs (i.. TNRCC Fs) 9 Othr 10 Sub-Total 11 Annualizd Rdvlopmnt and Construction Costs (From Form 6, Lin 20) 12 Closur and Post-Closur Car Costs (From Form 7, Lin 19) 13 Othr 14 Othr 15 Sub-Total 16 Total 0 (to Form A, Lin 8)

33 Prdvlopmnt And Construction Costs (Form 6) Form 6 is usd to rcord thos costs which ar incurrd during th planning and construction of th city's landfill. Bcaus ths costs ar matrial in natur, it is important that thy b rcognizd during th lif of th landfill. By dvloping rats which rcogniz ths costs ovr th lif of th landfill, th ctty nsurs that all usrs of th landfill shar qually in its construction. As mntiond arlir, if ths costs or a portion of thm ar alrady includd in th capital costs (Form 4), thy should not b includd on Form 6 to avoid doubl-counting ths costs. Data to b ntrd into Form 6 is as follows: Srvic Providr: Nam of city, govrnmnt agncy, or privat oprator complting th workbook. Dat Prpard: Dat th form is compltd. Fiscal Yar: Rcord th fiscal yar which applis. Sit: Physical location of th landfill, nam or prmit numbr. Prdvlopmnt Costs: Th prdvlopmnt costs associatd with th dvlopmnt of th crty's landfill should b rcordd on lins 1 through 6. f ths costs ar alrady includd in capital costs (Form 4), lav this sction blank. Construction Costs: Th construction costs associatd with th construction of th city's landfill should b rcordd on lins 8 through 16. f ths costs ar alrady includd in capital costs (Form 4), lav this sction blank. Total Prdvlopmnt and Construction Costs: Sum lins 7 and 17. Expctd Landfill Lif (yars): Numbr of yars th landfill is xpctd to rmain opn. Annual Cost: This cost should b calculatd by dividing total prdvlopmnt and construction costs by th xpctd lif of th landfill. Th Annual Cost is thn rcordd on Form 5, lin

34 Txas Natural Rsourc Consrvation Commission MuniciDal Solid Wast - Full Cost Accounting Workbook Srvic Providr: Dat Prpard: Fiscal Yar: Sit: Prdvlopmnt Costs: 1 Enginring and Dsign 2 Prmiting 3 Lgal 4 Landhrchas 5 Kdministrativ 6 Othr 7 Total Prdvlopmnt Costs Construction Costs: 8 Earthwork 9 Linr Systm 10 Lachat Systm 11 Gasvnting 12 Scal Systm 13 Landscaping 14 Construction Enginring 15 Othr 16 Othr 17 Total Construction Costs 18 Total Prdvlopmnt and Construction Costs 19 Expctd Landfill Lif (yars) 20 Annual Cost (Lin 18 Dividd by Lin 19) 0 (to Form 5, Lin 11)

35 Closur & Post-Closur Car Costs (Form 7) This form is usd to dtrmin th annual landfill closur and post-closur car costs. With th nactmnt of Subtitl D ths costs hav bcom a much mor significant part of th ovrall cost of oprating a landfill. Onc a clty's closur and post-closur car costs ar stimatd, if a ctty is going to stablish cost of srvic basd solid wast rats, it should includ this cost in th city's tipping fs and/or customr chargs. t should b notd that citis ar rquird to rcalculat th closur and postclosur car costs ach yar, which can rsult in this cost incrasing byond its original stimat. Bcaus of th matriality of this cost, it is rcommndd that citis us Form 7 to assist thm in rcovring this cost through th inclusion of this xpns in thir tipping fs and customr chargs. Form 7 rcognizs that th closur of a landfill is compltd in a sris of phass ovr th lif of th landfill. Thrfor, closur costs ar r-calculatd annually for ach phas of th landfill that is currntly rciving wast. Th amount of closur costs that nd to b rcovrd in th tipping f is dtrmind as follows: Estimatd closur costs - Amount alradv rsrvd Expctd numbr of yars until funds ar rquird A simplifid xampl will show how this amount may b calculatd annually: Assum that a clty's closur costs ar stimatd at $300,000 for a phas that will clos in thr yars. n th first yar $100,000 will nd to b rcovrd through tipping fs and st asid for closur costs ($300,000/ 3 yars = $l00,ooo). Assum that in th scond yar th stimatd closur costs hav risn 3%. Closur costs ar now stimatd at $309,000. Th city will nd to rcovr $104,500 through tipping fs in th scond yar to st asid for closur costs ($309,000- $1OO,OOO) / 2 yars = $104,500. n th final yar, assuming costs again incras 3%, th closur costs ar now stimatd at $318,270. n th third and final yar th city will nd to rcovr $1 13,770 through tipping fs and st this amount asid for closur costs ($318,270- $204,500) / 1 yar = $1 13,770. Post-closur car costs will b calculatd in th sam mannr as closur costs, howvr thy will b calculatd ovr th lif of th landfill, as opposd to just a phas of th landfill. Onc th annual closur and post-closur car costs ar calculatd thy ar thn addd togthr and rcordd on Form 7, lin 19. This amount is thn forwardd to Form 5, lin 12. t is not rquird by law that citis in Txas stablish a cash rsrv in rcognition of ths closur and post-closur car costs. Citis ar only rquird to satisfy th financial assuranc rquirmnts (Til 30, Txas Administrativ Cod, Chaptr 330, Subchaptr K) and rcogniz this liability in thir financial rports. Howvr, from a ratmaking standpoint this is a known and masurabl cost which citis ar going to incur in th futur and which is cratd by th currnt usrs of th landfill. Thrfor, it is rcommndd that citis includ this annual cost (as calculatd using Form 7) in thir currnt tipping fs, so as to bgin rcovring th closur and post-closur car costs from th usrs of th landfill which ar th gnrators of this futur liability. Th portion of th tipping f associatd with th closur and post-closur car costs could thn b dpositd by th city in a rsrv account. Citis that own and oprat landfills undr th small arid landfill xmption should b awar that thy ar not xmpt from complying with landfill closur and posttlosur car rquirmnts. 20

36 For citis that dsir additional information concrning this issu, plas rfr to: 1. Titl 30 Txas Administrativ Cod Chaptr 330, Municipal Solid Wast Subchaptr K: Financial Assuranc and 2. Statmnt No. 18 of th Govrnmntal Accounting Standards Board Accounting for Municipal Solid Wast Landfill Closur and Postclosur Car Costs August 1993 Data to b ntrd into Form 7 is as follows: Srvic Providr: Nam of city, govrnmnt agncy, or privat oprator complting th workbook. Dat Prpard: Dat th form is compltd. Fiscal Yar: Rcord th fiscal yar which applis. Sit: Physical location of th landfill, nam or prmit numbr. Dat of Cost Estimat: Dat Closur and Post-Closur Costs wr last stimatd. Phas 1 Closur Cost: Th ctty's stimatd cost of closur for Phas 1 of th landfill. (This sam cost stimating mthodology is usd for Phas 2, or howvr many phass th landfill will ultimatly clos.) Lss Amount Alrady Rsrvd For Closur: Amount of mony alrady rsrvd by th city to pay for closur costs. Nt Rmaining Closur Costs: "Phas 1 Closur Cost" lss "Amount Alrady Rsrvd For Closur" (lin 1 - lin 2). Expctd Numbr of Yars Until Funds Ar Rquird: Numbr of yars until th phas is closd. Annual Cost For Phas 1 Closur: Calculatd by dividing "Nt Rmaining Closur Costs" by "Expctd Numbr of Yars Until Funds Ar Rquird." (Sam calculation is don for Phas 2, or howvr many phass th landfill will ultimatly clos.) Total Annual Closur Costs: Th summation of th stimatd annual closur costs for all phass of th landfill prsntly rciving wast. Post-Closur Car Costs: Th city's stimatd post-closur car costs for th landfill. 21

37 Lss Amount Alrady Rsrvd For Post-Closur: Amount of mony alrady rsrvd by th city to pay for post-closur car costs. Nt Rmaining Post-Closur Costs: "Post-Closur Car Costs" lss "Amount Alrady Rsrvd For Post-Closur" (lin 14 - lin 15). Expctd Numbr of Yars Until Funds Ar Rquird: Th numbr of yars until th clty closs th landfill. Annual Post-Closur Car Costs: "Nt Rmaining Post-Closur Costs" (lin 16) dividd by "Expctd Numbr of Yars Until Funds Ar Rquird" (lin 17). Total Annual Closur & Post-Closur Car Costs: Lin 13 plus lin 18. This amount is thn rcordd on Form 5, lin

38 Txas Natural Rso rc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Srvic Providr: Dat Prpard: Fiscal Yar: Sit: Dat of Cost Estimat: Closur Costs (1): 1 Phas 1 Closur Cost Lss amount alrady rsrvd for closur Nt rmaining closur costs (Lin 1 - Lin 2) Expctd numbr of yars until funds ar rquird Annual cost for phas 1 closur (Lin 3/ Lin 4) 6 'Phas 2 Closur Cost 7 Lss amount alrady rsrvd for closur 8 Nt rmaining closur costs (Lin 6 - Lin 7) 9 Expctd numbr of yars until funds ar rquird Fl vars $ Pr yar Annual cost for phas 2 closur (Lin 8/ Lin 9) Total Annual Closur Costs: Phas1 (Lin5) Phas 2 (Lin 10) [$ ]Pry- 13 Total (Lin 11 + Lin 12) Post-Closur Car Costs: 14 Post-Closur Car Costs Lss amount alrady rsrvd for post-closur Nt rmaining post-closur costs (Lin 14 - Lin 15) Expctd numbr of yars until funds ar rquird Annual Post-Closur Car Costs (Lin 16 / Lin 17) 19 Total Annual Closur and Post-Closur Car Costs: (Lin 13 + Lin 18) - S lpcyar [ l p r y - (to Form 5, Lin 12) Not: ( 1) Rcognizing that closur may b carrid out in a sris of phass at th landfill. For an xampl of how fs may b stablishd to rcovr closur and post-closur car costs plas rfr to th xampl on p. 20 of this workbook.

39 E. Gnral Opration & Maintnanc Costs (Form 8) This form is usd to compil th Gnral Opration & Maintnanc Costs (Gnral O&M) which ar spcifically budgtd in th Clty's solid wast budgt. Exampls of Gnral O&M includ offic supplis, utilitis, small quipmnt purchass, las paymnts (othr than thos includd in th Vhicl Expns Form), insuranc (othr than that which is includd in th Salaris, Wags & Bnfits Form), travl and training, and outsid paymnts for srvics. Th first stp in assigning Gnral O&M costs to th city's solid wast programs is to group th costs in two catgoris, "Dirctly Assignabl Costs" and "Allocatd Costs." "Dirctly Assignabl Costs" ar thos costs which can b dirctly associatd with a particular program, or which ar allocatd basd on a profssional standard or ducatd stimat. For instanc, nginring fs might b dirctly assignabl to th clty's landfill oprations. Othr costs might b assignd basd on th city staffs familiarity with a particular xpnditur. For xampl, public ducation costs associatd with th distribution of pamphlts might b assignd btwn th collction, rcycling and yard wast programs basd on th staffs knowldg of how th funds wr xpndd. Howvr, thr ar som costs that will b unclar vn to city staff as to how thy should b allocatd among th city's solid wast programs. n this cas, ths Gnral O&M costs should b allocatd to th city's solid wast programs basd on a composit of th dirct costs as summarizd on Form A, lin 10. Fdr instanc, if 50% of th dirct costs on Form A, lin 10 ar rlatd to th city's collction program, and th city has $1OO,OOO in Gnral O&M costs that cannot b dirctly assignd, thn 50%, or $50,000, of ths costs should b allocatd to th collction program. Form 8 is usd to dtrmin th amount of Gnral O&M Costs associatd with ach of th city's solid wast programs. This is accomplishd in a two stp procss: first by idnttfying all of th dirctly assignabl costs and assigning thm to th appropriat solid wast programs; and scond, by taking th rmaining Gnral O&M costs that ar not dirctly assignabl and allocating thm to th solid wast programs basd on a composit of th solid wast utilrty's dirct costs (Form A, lin 10). Th ntris on th worksht ar dscribd blow: 0 Srvic Providr: Nam of city, govrnmnt agncy, or privat oprator complting th workbook. 0 Dat Prpard: Dat th form is compltd. 0 Fiscal Yar: Rcord th fiscal yar which applis. 0 Dirctly Assignabl Costs: Thos costs which can b dirctly assignd to a program or which can b allocatd basd on profssional standards or ducatd stimats. 8 Account Numbr - Entrd, if applicabl. 8 Dscription - Dscription of th cost (.g. nginring fs, tc.). 8 Total Cost - Annual cost for th particular Gnral O&M cost. 8 Program Catgory - Entr amount of costs dirctly assignabl to solid wast programs (.g. Collction, Disposal, Rcycling, Yard Wast and Othr). Th total of ths fiv columns should qual th numbr ntrd in th "Total Cost" column. 23

40 Total Dollar Amount - Summation of dirctly assignabl costs, by program and in total. Allocatd Costs: Thos Gnral O&M costs which cannot b dirctly assignd and must instad b allocatd basd on prcntags dvlopd from th dirct costs which ar summarizd on Form A, lin 10. Allocation Prcntag - Calculatd by summing th data on Form A, lins 1 through 9 and ntring it on Form A, lin 10. Using th data on lin 10, calculat th prcntag of dirct costs associatd with ach program as a prcntag of th total dirct costs. This prcntag is thn ntrd on Form 8, lin 11. Account Numbr - Entrd, if applicabl. Dscription - Dscription of th cost (.g. copir srvic, tc.). Total Cost - Annual cost for th particular Gnral O&M cost. Program Catgory - Assignd by multiplying "Allocation Prcntag" (Form 8, lin 11) by th "Total Cost" column for ach sparat cost itm. m Total Dollar Amount - Summation of allocatd costs, by program and in total. 0 Total Gnral O&M Costs Pr Program: Sum of totals in "Dirctly Assignabl Costs" and "Allocatd Costs" groups (lins 10 and 18). This amount is thn ntrd on Form A, lin

41 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook \Srvic Providr:, (Fiscal Yar: J [Dat Prpard: DREC'LY ASSGNABLE COSTS Account Numbr Dscription Total Cost Program Catgory Collction Disposal Rcycling Yard Wast Othr 10 ALLOCATED COSTS Account Numbr 11 Allocation Prcntag (1) Total Dollar Amount Dscription Total Cost Program Catgory Collction 1 Disposal Rcycling Yard Wast Othr 100% Total Dollar Amount

42 F. Othr Costs (Form 9) This form is usd to compil any additional costs associatd with th city s solid wast dpartmnt that do not radily fall into on of th prior cost catgoris. t may b of us if a uniqu catgory of costs is incurrd. Th dirctions for Form 9 ar idntical to th dirctions for Gnral Opration & Maintnanc Costs (Form 8). Plas rfr to th Gnral Opration & Maintnanc Costs sction for spcific dirctions. Onc th Othr Costs ar calculatd on Form 9, thy ar ntrd on Form A, lin

43 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Srvic Providr: 4 Fiscal Yar: DRECTLY ASSGNABLE COSTS Account Numbr Dscription Total Cost Dat PrDard: Program Catgory Collction Disposal Rcycling Yard Wast 1 Othr 9 1 ALLOCATED COSTS Account Numbr Dscription Total Cost Program Catgory Collction Disposal Rcycling Yard Wast Othr

44 G. ndirct Costs (Forms 10 and 11) ndirct costs rprsnt srvics which ar providd to th clty's solid wast dpartmnt by othr dpartmnts within th clty. n ordr to dvlop cost of srvic basd rats, an accurat allocation mthodology must b dvlopd in ordr to assign a portion of ths indirct costs to th city's solid wast dpartmnt. Thr ar svral accptd and commonty usd mthods for allocating indirct costs. For purposs of th workbook, two mthodologis ar xplaind in dtail. Howvr, citis may us othr mthods to allocat indirct costs as long as thy rflct th cost incurrd to provid th srvic(s) to th solid wast utility. Mthod : ntrnal Assssmnt Allocation (Fom 10) This mthodology rquirs that ach dpartmnt providing support srvics to th solid wast utility dtrmin th prcntag of thir total costs associatd with providing srvic to th solid wast utiltty. For instanc, th purchasing dpartmnt might dtrmin its lvl of support srvic providd to th solid wast utility basd on th prcntag of purchas ordrs procssd for solid wast programs as a prcntag of total purchas ordrs procssd. n th financ dpartmnt, costs could b allocatd on a proportion of financial transactions. Th nginring dpartmnt could allocat costs basd on th total numbr of hours spnt on solid wast activitis as a prcntag of total hours in th dpartmnt. This mthodology will also allow th allocation of dpartmnt costs basd on intrviws with individuals in th dpartmnt who may b abl to bttr dtrmin what prcntag of thir tim is spnt on solid wast activitis. Form 10 provids a framwork to support th intrnal assssmnt mthodology. 0 Srvic Providr: Nam of city, govrnmnt agncy or privat oprator complting th workbook. 0 Dat Prpard: Dat th form is compltd. 0 Fiscal Yar: Rcord th fiscal yar that applis. Part 1 - ndirct Costs Allocatd to th MSW Dpartmnt 0 Dpartmnt: List th dpartmnts that provid support srvics to th cws solid wast dpartmnt (.g. Purchasing Dpartmnt, Financ Dpartmnt, tc.) 0 Dpartmntal Budgt: Entr th annual budgt for ach dpartmnt. 0 Prcntag Attributabl to Solid Wast Dpartmnt: Basd on th ctty's own intrnal assssmnt, dtrmin th prcntag of th budgt which would b attributabl to th solid wast dpartmnt. 0 Dollar Amount Attributabl to Solid Wast Dpartmnt: Column 2 multiplid by Column 3. 26

45 Part 2 - Allocation of ndirct Costs to ach MSW Program Program: Entr th nam of ach solid wast program in this column. Dirct Costs: Entr th total dirct costs for ach program in column A (Entr dirctly from Form A, lin 13). Prcntag of Total MSW Dirct Costs: Divid th Dirct Costs for ach program (Column A) by th "Total MSW Dirct Costs" at th bottom of Column A, lin Total From Part 1 ($ Amount): Entr th total "Dollar Amount Attributabl to Solid Wast Dpartmnt" (Column 4, lin 13) on ach lin in Column C. ndirct Cost to Program: Multiply Column B by Column C to dtrmin th indirct cost associatd with ach of th citys solid wast programs. This amount is thn ntrd on Form A, lin 14, for ach solid wast program. Mthod 11..Employ Basd Allocation (Form 11) This allocation is basd on a ratio of solid wast mploys to total municipal mploys. Th subsqunt allocation to individual programs is accomplishd by idntifying th numbr of solid wast mploys associatd with ach solid wast program. Srvic Providr: Nam of city, govrnmnt agncy or privat oprator complting th workbook. 0 Dat Prpard: Dat th form is compltd. Fiscal Yar: Rcord th fiscal yar which applis. Part 1 - Budgts for Dpartmnts Providing ndirct Snric to Solid Wast Dpartmnt 0 Dpartmnt: List th dpartmnts which provid support srvics to th clty's solid wast dpartmnt (.g. Purchasing Dpartmnt, Financ Dpartmnt, tc.) Dpartmnt Budgt: Entr th annual budgt for ach dpartmnt. Part 2 - ndirct Costs Allocatd to th MSW dpartmnt Solid Wast Employs: Entr th total numbr of solid wast mploys on lin 14. Part-tim mploys should b addd as a fraction (.g. 112, 1/4, tc.). 0 Total Municipal Employs: Entr th total numbr of municipal mploys on lin 15. This numbr should includ all municipal mploys, both full-tim and part-tim mploys. 0 Ratio of MSW Employs to Total: Divid lin 14 by lin

46 - 0 Amount Allocatd to MSW: Total from Part 1, lin 13 multiplid by th prcntag in Part 2, lin 16. Part 3 - Allocation of ndirct Costs to ach MSW Program 0 Program: Entr th nam of ach solid wast program in this column. 0 Solid Wast Employs by Program: Entr th total numbr of solid wast mploys associatd with ach spcific solid wast program. Part-tim mploys should b addd as a fraction (.9. 1/2, 1/4, tc.). 0 Prcntag of Total MSW Employs: Divid th numbr of MSW mploys for ach program (Column A) by th "Total MSW Employs" at th bottom of Column A, lin 24. (Not: "Total MSW Employs" should qual th numbr of solid wast mploys from Part 2, lin 14.) 0 $ Amount from Part 2, Lin 17: Entr th total dollar amount from Part 2, Lin 17 on ach lin in Column C. 0 ndirct Cost to Program: Multiply Column B by Column C to dtrmin th indirct costs associatd with ach of th citvs solid wast programs. This amount is thn ntrd on Form A, Lin 14, for ach solid wast program. 28

47 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook /Srvic Providr: 1 Dat Prpard: Fiscal Yar: S Amount % Attributabl Attributabl to Dpartmnt Dpartmntal Budgt to Solid Wast Dpt. Solid Wast Dpt. ~ TOTAL u (To Part 2, Column C) Program, A B C D Dirct Costs (From Form A, Lin 13) Total from % of Total MSW Part1 ndirct cast to Dirct Costs (S Amount) program (BXC) Collction Disposal Rcycling Yard Wast Othr 1 Total MSW Dirct Costs1 1 Oo?h (To Form A, Lin 14)

48 ~~~~ Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Srvic Providr: Dat Prpard: Fiscal Yar: Dpartmnt Dpartmntal Budgt l TOTAL 14 Solid Wast Employs 15 Total Municipal Employs 16 Ratio of MSW Employs to Total l(lin 14 dividd by Lin 15) 17 Amount Allocatd to MSW Y l ( T 0 t a l from Part 1 multiplid by Lin 16 Program A B C D Solid Wast % &Total MSW S Amount From ndirct Cost to Employs by Program Employs Part 2, Lin 17 Program (BXC) Collction Disposal Rcycling Yardwast Othr Total MSW Employs 1 lw? (To Form A, Lin 1 1

49 H. Othr Rvnu Sourcs of othr rvnu for th city's solid wast utility ar listd on Form A, Lins 15 through 20. Ths rvnus includ intrst incom, rvnus gnratd from th sal of rcyclabls, miscllanous rvnu and th salvag valu of any quipmnt sold by th city's solid wast utility. Ths rvnus should b rcordd as a rvnu offst in th dtrmination of th city's cost of providing solid wast srvics. Whr rvnus can b dirctly assignd to a solid wast program thy should b rcordd as a rvnu offst to only that program. For instanc, th sal of any rcyclabls should b rcordd as a rvnu offst to th rcycling program (Form A, Lin 16, Column D). For thos rvnus which cannot b clarly idntifid with a particular solid wast program, thy should b allocatd among th programs basd on a composit of th program's dirct costs (Form A, Lin 13). 29

50 1. Wight and Volum nformation (Forms 12 and 13) Wight and volum information is critical if a municipalrty wants to stablish cost of srvic basd rats for its customrs. Exampls of solid wast programs that rly on volum or wight basd billing units includ commrcial srvic with diffrnt sizs of bulk containrs; landfill srvic providd to othr municipalitis; spcial srvics such as dmolition dbris disposal; and variabl rats for rsidntial srvic (customr chargs ar typically stablishd basd on th siz of containr usd). Additionally, wight and volum information will prov to b valuabl whn implmnting nw programs, projcting usag, and valuating capactty. Many citis alrady hav in plac a rporting systm that rcords and tracks th city's solid wast stram. Howvr, for th city that dos not hav a rporting systm in plac, Forms 12 and 13 can b usd by th city to track th amount of solid wast, rcyclabls, yard wast, tc. gnratd by th city on an annual basis. Many diffrnt mthods for gathring this information ar possibl and a municipalrty must dtrmin what typ of rporting systm will bst mts its nds. At a minimum, a dtaild accounting of th sourc, amount, and typ of wast handld at ach facility should b rcordd. Monthly Matrials (Form 12) This form provids a monthly summary to consolidat th amounts of wast handld at ach of th clty's facilitis. t is important that outsid sourc wast (.g. wast from anothr municipality) b dsignatd sparatly so as not to includ it in th ctty's wast stram. f a significant amount of outsid wast is handld, sparat dtaild rcords should b maintaind on th volum and typ of outsid wast handld. Th city may wish to stablish a sparat customr class undr th solid wast disposal program for this particular usr(s). Ths schduls along with th daily schduls should b kpt on fil to provid historical rcords of th city's wast stram. Dpnding on th mannr in which th city calculats its customr chargs and tipping fs, th information gathrd on Forms 12 and 13 may b usd to calculat th city's solid wast rats on Form B. (f th city dsirs a rport to track dtaild daily wast stram activity, a Daily Truck WightNolum Rcord is attachd as an addndum to this workbook. This form will fd daily activity dirctly to Form 12 which thn summarizs th matrials collctd on a monthly basis.) Data to b ntrd into Form 12 is as follows: 0 Srvic Providr: Nam of city, govrnmnt agncy or privat oprator complting th workbook. 0 Dat Prpard: Dat th form is compltd. 0 MontMYar: Month and yar for which th data is bing collctd. 0 Units: An ntry for units is availabl if diffrnt units ar usd for various catgoris of wast (.9. tons, cubic yards, tc.) 0 Rsidntial Solid Wast: Th amount of solid wast collctd from th clty's rsidntial customrs during that month. 0 Commrcial Solid Wast: Th amount of solid wast collctd from th 30

51 city's commrcial customrs during that month. Rcyclabls: Th amount of rcyclabls collctd from th city's solid wast customrs during that month. Yard Wast: Th amount of yard wast collctd from th city's solid wast customrs during that month. Outsid Sourcs: Th amount of solid wast collctd from sourcs outsid th ctty during that month. Dpnding on th numbr of haulrs and typ of wast collctd, th ctty will want to considr possibly rcording this data in gratr dtail (.g. by haulr, typ of wast, tc.) Othr: For any othr typs of wast. 0 Totals: Onc th columns ar summd th city thn has a dtaild rcord which dscribs th typs of wast gnratd on a monthly basis. Annual Matrials (Form 13) This form is a summary of th Monthly Matrials Forms (Form 12). This form will provid th city with an annual matrials summary rport that dtails th amount of wast gnratd, by customr class (.g. rsidntial, commrcial and outsid city). Th rport will also summariz th amount of rcyclabls and yard wast collctd on an annual basis. Th city can thn us this information to aid in calculating th city's cost of srvic basd rats (on Form B). Finally, this information will allow th ctty to dvlop a databas which will aid th city in idntifying any trnds with rgard to dcrasd wast gnration pr capita, incrass in rcycling, participation in th city's yard wast collction program, tc. 31

52 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Srvic Providr: Dat Prpard: Month Yar: Day Units: Rsidntial Commrcial Yard Solid Wast Solid Wast Rcyclabls Wast Outsid Sourc Othr Totals

53 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook Srvic Providr: Dat PrDard: Yar: Rsidntial Commrcial Solid Wast Solid Wast Rcyclabls 1 Yard Outsid Othr Wast Sourc units: 1 1 Month January Fbruary March Apfil fiy Jun July August Sptmbr Octobr Novmbr Dcmbr Totals V

54 J. Customr Class Costs - Dtail (Form 14) Som citis may srv mor than on customr class and nd to calculat customr chargs for ach customr class. Typically, citis will not nd to allocat program costs by customr class unlss thy offr collction srvic to rsidntial and commrcial customrs. Rcycling and yard wast programs ar usually structurd to srv primarily rsidntial customrs. n this cas, thr is only on customr class and th costs ar born ntirly by th rsidntial customrs. Th ctty will hav to xamin ach of its solid wast programs to dtrmin th customr classs srvd. For purposs of this workbook, th rsidntial customr class consists of singl family hom and multifamily units (typically four familis or lss). Th non-rsidntial customr class consists of commrcial businsss, multi-family units (largr than four familis), industrial usrs, and govmmntal ntitis. Th rsidntial customr is assumd to us standard collction containrs (30, 60, 90 gallon cans), whil th non-rsidntial customr class consists of commrcial containrs (typically 4 to 12 cubic yard contain S). t is important to not that if a city provids collction srvic to rsidntial and commrcial customrs, but both classs us th traditional 30, 60 or 90 gallon containrs, th ctty can usually trat all customrs as on class. Distinct customr classs ar cratd only whn customrs hav diffrnt usag and volum charactristics, causing thir cost of srvic to diffr. n this cas, sinc both rsidntial and commrcial customrs us th sam typ of containr, thy will most likly hav similar usag charactristics. How to Calculat Rats For Diffrnt Customr Classs f a city has mor than on customr class, th mthodology dscribd in Exampl #1 should b usd. Th only xcption is if a city s disposal program (.g. landfill) provids srvic to mor than on customr class. n this cas th mthodology in Exampl #2 should b usd. Exampl #1 A city calculating cost of srvic basd rats for diffrnt customr classs will start with Form A. For instanc, if th city provids collction srvic to both rsidntial and commrcial customrs, th crty will nd to allocat th Collction Program Costs (Form A, Column B) btwn ths two customr classs. Th sam mthodology that was usd to allocat costs btwn soli wast programs will b usd to allocat costs btwn customr classs. Stp 1. Th collction program costs (Form A, Column B) will b ntrd on Form C, Column A. Stp 2. Th nxt stp will b to dirctly assign and/or allocat th program costs btwn th rsidntial and commrcial customr classs. To complt this dirct assignmnt andor allocation of costs, th city will us Form 14, Customr Class Costs - Dtail. Thos costs which can b dirctly assignd to th rsidntial or commrcial customr classs should b idntifid. Th rmaining costs will b allocatd basd on a composit of th dirctly assignd costs. For instanc, to idntify th Salaris, Wags & Bnfits for ach customr class, th city will nd to rviw Form 1 Salaris, Wags & Bnfits, which was compltd for th Collction Program. Th ctty will nd to dtrmin which of th individuals workd on commrcial routs vrsus rsidntial routs. Most citis will idntify by rout numbr th crws and quipmnt which ar oprating ach wk. This infprmation will also idntify if th crws and quipmnt ar oprating on a rsidntial or commrcial rout. This information can thn b usd to allocat labor costs btwn th diffrnt customr classs. 32

55 This sam mthodology will b usd to allocat th rmaining costs btwn customr classs. Form 14 summarizs th costs which th city will nd to dirctly assign and/or allocat btwn customr classs. Whil Form 14 will most likly not provid sufficint room for th clty to complt its customr class allocations, th form dos provid a layout of th costs that nd to b distributd btwn th diffrnt customr classs, and th mthodology for dtrmining th costs for ach customr class. Not: f th ctty did not us any, or only usd som of Forms to complt th calculation of its program costs, th clty will nd to rviw its solid wast budgt and financial rcords to dtrmin whthr thy provid sufficint dtail to assign andlor allocat program costs by customr class. f th ctty's financial rcords do not provid sufficint dtail, it may choos to us som or all of Forms 1-11, dpnding on th crty's rcords. Exampl #2 f th ctty has mor than on customr class which utilizs th ctty's landfill, th disposal rat is calculatd in a diffrnt mannr than in Exampl #l. To calculat rats for th city's disposal program th city dos not us Form 14. nstad, th rats ar calculatd as follows: Th total cost of th disposal program is dividd by th tonnag rcivd at th landfill, to stablish a tipping f'pr ton. To calculat th rsidntial customr's annual cost for th disposal program, th numbr of tons gnratd by rsidntial customrs is multiplid by th tipping f to dtrmin th total annual disposal costs for rsidntial customrs. This dollar amount is thn dividd by th numbr of housholds to arriv at th annual disposal cost pr houshold. Commrcial customrs would hav thir cost calculatd in th sam mannr, xcpt thir cost would b "$ pr containr." This sam mthodology would b usd if th city rcordd its wast in cubic yards. 33

56 Txas Natural Rsourc Consrvation Commission Municipal Solid Wast - Full Cost Accounting Workbook [Srvic Providr: Dat Prard: Fisca Yar: (Program: ( Columns A and B ar takn dirctly from Form 1) A B C D E Salaris, Customr Classs EmDlov Was & Bnfits Rsidntial 1 Commrcial Othr Total (To Form C) dntification Annual vhicl xpns may b calculatd by dtrmining th annual costs of ach vhicl associatd with th solid wast program for which rats ar bing stablishd. This information may b gathrd from th ciws intrnal srvics fund or by summing th "Total Monthly Program Costs of Vhicl" from Form 2 for 12 months and using this information to dvlop a budgtd amount in annual vhicl xpns for ach vhicl. This amount would thn b assignd to th appropriat customr classs. Vhicl Annual Vhicl Customr Classs Expns

57 Txas Natural Rsourc Consrvation Commission MuniciDal Solid Wast - Full Cost Accounting: Workbook pag 2 of 5) -Providr: Dat Prpard: Fiscal Yar: Program: l (Co - - A and B ar takn dirctly from Form 4) A B C E Long Trm Program P& Customr Classs Dbt ssu: Annual Amount Rsidntial Commrcial Othr Total (To Form C) 1 Short Trm Dbt ssu: Program P& Annual Amount Customr Classs Rsidntial Commrcial Othr J Cash Capital Outlays Program Customr Classs Dscription: Annual Amount Rsidntial Commrcial Othr Total (To Form C) Extraordinary Cash Outlays: Amortizd Customr Classs Annual Amount Rsidntial Commrcial Othr ~~ Total (To Form C) 1