Municipal Solid Waste Services Full Cost Accounting ...Municipal Solid Waste Services Full Cost...

Municipal Solid Waste Services Full Cost Accounting Workbook

for

Texas Local Governments

Prepared by:

Reed-Stowe & Co., Inc. 101 West Sixth Street, Suite 225

Austin, Texas 78701

and Camp Dresser & McKee

801 Cherry Street, Suite 1130 Fort Worth, Texas 76102

and Yvette Thompson, P.E.

12770 Coit Road, Suite 1107 Dallas, Texas 75251

(512) 479-0991

(817) 429-9240

(214) 458-9388

April 1995 RG-127

P

TNRCC John Hall, Chairman

Pam Reed, Commissioner Peggy Garner, Commissioner

Dan Pearson, Executive Director

Authorization for use or reproduction of any original material contained in this publication, ;.e., not obtained from other sources, is freely granted. The Commission would appreciate acknowledgement.

Published and distributed by the

Texas Natural Resource Conservation Commission Post Office Box 13087

Austin, Texas 7871 1-3087

Copies of this document may be obtained from the Texas Natural Resource Conservation Commission by contacting Publications at (51 2)239-0028.

The TNRCC is an equal opportunityjafftrmative action employer. The agency does not allow discrimination on the basis of race, color, religion, national origin, sex, disability, age, sexual orientation or veteran status. In compliance with the Americans with Disabilities Act, this document may be requested in alternate formats by contacting the TNRCC at (512)2394010, Fax 239-0055, or 14300RElAY-TX (TDD), or by writing P.O. Box 13087. Austin, TX 7871 1-3087.

TABLE OF CONTENTS

SECTION

1. INTRODUCTION

A. Background B. Goals Of The Workbook C. Benefits Of Full Cost Accounting And Using The Workbook D. Comments Conceming The Workbook

II. THE FULL COST ACCOUNTING METHODOLOGY

A. Full Cost Accounting Defined B. Cost Components

1. Direct Costs 2. Indirect Costs

C. Other Revenue

111. HOW TO USE THE WORKBOOK

A. Steps To Be Completed B. Forms Provided In The Workbook C. How To Use The Forms

Exhibit 1 Process Flow Chart Exhibit 2 Data Collection And Form Flow Chart

IV. SUMMARY FORMS

A. Program Cost Summary (Form A) 8. Rate Calculation Summary (Form B) C. Customer Class Cost Summary (Form C)

V. DETAILED COST INFORMATION FORMS

A. Salaries, Wages & Benefits (Form 1) B. Vehicle Expense

Monthly Vehicle Expense Report (Form 2) Annual Vehicle Expense Report (Form 3)

C. Capital Costs (Form 4) D. Other Direct Landfill Costs

Other Landfill Costs (Form 5) Predevelopment And Construction Costs (Form 6) Closure & Post-Closure Care Costs (Form 7)

. E. General Operation & Maintenance Costs (Form 8) F. Other Costs (Form 9) G. Indirect Costs

Method I: Internal Assessment Allocation (Form 10) Method II: Employee Based Allocation (Form 11)

PAGE

1

3

6

9

11

11 13

15 18

23 25 26

H. Other Revenue I. Weight And Volume Information

Monthly Materials (Form 12) Annual Materials (Form 13)

J. Customer Class Costs - Detail (Form 14)

VI. GLOSSARY

VII. ADDENDUM Daily Truck WeightNolume Record

29 30

32

34

35

1. INTRODUCTION

A. Background

In recent years there has been an increased focus upon the rising costs associated with providing municipal solid waste services. Cities across the state, both large and small, have seen significant increases in these costs. As a result, the 73rd Texas Legislature introduced and passed legislation which required the Texas Natural Resource Conservation Commission (TNRCC) to conduct demonstrat ion projects and studies to help local governments and the private sector determine rates that reflect the full cost of providing solid waste services. To meet this objective, in August 1994 the TNRCC retained the project team of Reed-Stowe & Co., Inc.; Camp Dresser & McKee; and Yvette Thompson, P.E. to develop a full cost accounting workbook for municipal solid waste services.

6. Goals Of The Workbook

The primary goal of the workbook is to provide the municipalrty with a system for collecting cost data and establishing rates which reflect the full cost of providing solid waste services. While the workbook focuses on collection, disposal, recycling and yard waste programs; the workbook may be used to determine the costs associated with all of the ctty's solid waste programs. This would include the costs associated with maintaining and operating the city's household hazardous waste program, used oil collection program, used battery program, etc. The term "city" and "municipality" will be used throughout the workbook. However, the workbook will also prove beneficial for those counties, governmental agencies and private operators that are attempting to establish cost of service based rates.

A secondary goal of the workbook is to help the city in developing a comprehensive solid waste management plan. Once the municipalrty has determined the full cost of each solid waste program and the rate per household, it will be able to use this information to better evaluate the financial performance of the various programs. With this information, the crty can decide which programs will provide the most benefit, given the municipaltty's financial resources.

The worksheets and methodology presented in this workbook offer a cost of service based approach with regard to the development of solid waste rates. However, this workbook is not presented as the only methodology which may be used to record solid waste costs and to calculate customer charges and tipping fees. A city might determine that it is accurately capturing all of its solid waste costs using a methodology and reporting format that is different from the one presented in this workbook. In this case the workbook can be used as a guide and reference tool.

It is not required that cities use this workbook in establishing their solid waste service rates, rather it is a tool that is being made available to cities that believe they will benefit from using the workbook to develop their solid waste customer charges and tipping fees.

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C. Benefits Of Full Cost Accounting And Using The Workbook

In addition to the obvious benefit of developing solid waste rates that are cost of service based, there are additional reasons why a municipallty will benefit from using the workbook to develop their solid waste rates. They are as follows:

e The city will begin to develop a database that has been compiled using a consistent methodology. This will allow the crty to easily identify any trends with regard to increases in tonnage (e.g. solid waste, recyclables, yard waste, etc.) and costs (e.g. salaries, fuel, repairs and maintenance, debt service, etc.).

e The collection of data and development of a solid wade budget utilizing a full cost accounting approach will aid the municipality in the development of both short-range and long-range solid waste management plans.

e Use of a full cost accounting approach to compile and present solid waste cost data will enable the ctty to better explain to its customers the costs associated with the clty's particular solid waste services.

e The compilation of solid waste cost data using a full cost accounting approach will allow the city to examine various financial scenarios and the resulting impact upon solid waste rates.

D. Comments Concerning The Workbook

The project team appreciates the time and effort expended by the cities and governmental agencies that assisted in the development of this workbook. We are confident that this workbook will be of benefit to so l i waste service providers throughout Texas, and it will help all service providers to better manage their solid waste system. We welcome and encourage any comments or suggestions with regard to the workbook and the full cost accounting methodology described herein. If you have any questions or comments please contact:

Mr. David S. Yanke Reed-Stowe & Co., Inc.

101 West Sixth Street, Suite 225 Austin, Texas 78701

(512) 479-0991

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II. THE FULL COST ACCOUNTING METHODOLOGY

A. Full Cost Accounting Defined

Full cost accounting is defined as the identification and inclusion of all direct and indirect costs associated with the providing of a particular service or program. For purposes of this workbook, full cost accounting will be discussed from a ratemaking perspective, which emphasizes a modified cash basis. Many of the recent articles and presentations on full cost accounting have focused on the topic from a financial reporting and enterprise fund accounting perspective, which utilizes an accrual basis.

If a ctty establishes customer charges utilizing an accrual basis it runs the risk of incurring a cash shodfall. If a municipaltty wants to ensure the full recovery of all cash costs associated with providing solid waste services, full cost accounting should be based on what is called a "modified cash basis." The difference between the modified cash basis and accrual basis is that principal payments and cash capital outlays are used instead of depreciation expense to recover capital costs. A comparison of the two methods is detailed below:

Modified Cash Basis: Accrual Basis:

Salaries, Wages & Benefits General O&M Costs Vehicle Expense Capital Costs

- Principal Payments - Interest Expense - Cash Capital Outlays

Predevelopment Costs Closure & Post-Closure Care Costs

Salaries, Wages & Benefits General O&M Costs Vehicle Expense Capital Costs - Depreciation Expense

- Interest Expense

Predevelopment Costs Closure & Post-Closure Care Costs

Because most cities budget and operate their solid waste utility on a cash basis, it is important that rates be established on a cash basis to ensure the recovery of the cash costs associated with these services. Use of the accrual basis in establishing solid waste rates could result in a potential under recovery of solid waste revenues. For instance, if a ctty has a transfer station which is being depreciated over 30 years but is financed with a 20 year revenue bond, the bond's annual principal payments will be greater than the annual depreciation expense. This will result in a cash shortfall for the city in the early years and a surplus in the later years. In addition, if the city's solid waste facilities are financed with revenue bonds, there are typically coverage and reserve requirements. If these coverage and reserve requirements are not incorporated into the revenue requirement, the crty risks not only a revenue shodfall, but the potential violation of loan covenants. The violation of these covenants could result in the city either defaulting on its debt or at the very least, restricting the city from issuing any new revenue bonds.

The use of the accrual basis to set rates also enters a level of uncertainty for the investment community which is familiar with the establishment of municipal utility rates on a cash basis. This uncertainty could adversely impact the city's debt ratings. The modified cash basis should aid the city in avoiding any potential cash shodfalls while maintaining the financial integrity of the city's solid waste utilrty.

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The term "modified cash basis" is used because two significant costs that are unique to the operation of a landfill need to be recognized in the establishment of solid waste rates. These two expenditures are predevelopment costs and closure & post-closure care costs. Since both of these costs are material in nature they should be recognized during the life of the landfill versus being expensed when the costs are incurred. These costs are discussed in greater detail in Section V. Detailed Cost Information Forms (Other Direct Landfill Costs - Forms 5, 6 and 7).

B. Cost Components

Full cost accounting is defined as the "identification and inclusion of all direct and indirect costs associated with providing a particular service." The first step in developing cost of service based rates for the city's solid waste services is to determine what costs are to be included.

1. Direct Costs Direct Costs are those expenditures which are specifically budgeted for solid waste services. They are also directly and clearly attributable to the specific service performed. The use of an enterprise fund for tracking and recording a crty's solid waste costs will make the identification of direct costs easier. However, even if a city records its solid waste costs in the general fund, these costs can usually be identified using the city budget and supporting financial records. Examples of direct costs include:

Salaries, Wages & Benefits Debt Service Annual Cash Capital Outlays General O&M Costs Equipment O&M Costs

Professional Services Utilities Contract Services Closure & Post-Closure Care Costs Predevelopment Costs

The workbook will provide the means to calculate not only the direct costs associated with the city's solid waste utility, but also the direct assignment and allocation of these costs between individual solid waste programs, such as collection, disposal, recycling and yard waste. The workbook separates direct costs into the following six sections:

Salaries, Wages & Benefits Vehicle Expense Capital Costs

Other Landfill Costs General O&M Costs Other Costs

2. Indirect Costs The full cost for a municipal solid waste program cannot be calculated without taking into account the indirect costs associated with the program. Indirect costs represent services which are provided to the city's solid waste operations by other departments within the city. Indirect costs are those that relate to administrative or general services that are shared by many departments within a municipality. Indirect costs include such services as:

Administrat iodcity Manager Central Purchasing Finance Department AccountingBilli ng City Council

Legal Department Personnel Administration City Engineer Management Information Systems General Insurance

4

There are several accepted and commonly used methods for allocating indirect costs to a city's solid waste utility. Provided in the workbook is a description of two allocation methodologies. The city may use either of these methodologies to allocate indirect costs to its solid waste utility (See Section V. Detailed Cost Information Forms, Indirect Costs - Forms 10 and 11). A municipality is not required to use one of the indirect cost allocation methodologies presented in this workbook. However, the municipality should develop an allocation methodology that accurately captures the indirect costs associated with the clty's solid waste programs. If a crty presently has an allocation methodology in place, they need only to veriiy that it is a fair and equitable methodology.

C. Other Revenue

Once the city has identified its direct and indirect costs, the crty must account for any special revenues generated by the city's solid waste programs. These special revenues may include revenues from the sale of recyclabl es, interest income and miscellaneous income. These revenues are then subtracted from the direct and indirect costs in developing cost of service based rates. These revenues will be discussed in greater detail in Section V. Detailed Cost Information Forms, Other Revenue.

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111. HOW TO USE THE WORKBOOK

A. Steps To Be Completed

The purpose of the workbook is to assist the municipalrty in developing cost of service based rates for the ctty's solid waste programs. The workbook was designed as a tool to assist the municipality in capturing the necessary financial and volumetric data that will allow the city to calculate solid waste rates (e.g. customer charges, tipping fees, etc.) that reflect the full cost of providing the various solid waste programs (e.g. collection, disposal, recycling, yard waste, etc.).

There are five steps that the city must follow in order to calculate its cost of service based solid waste rates:

Step 1. The city must identrfy all direct costs associated with the crty's solid waste services.

Step 2. The city must identify all indirect costs associated with the city's solid waste services.

Step 3. Using the city's financial records, the city must directly assign and/or allocate the solid waste costs (identified in Steps 1 & 2) to the solid waste programs which are the beneficiaries of these expenditures.

Step 4. If applicable, the city must allocate the program costs identified in Step 3 (e.g. collection costs, disposal costs, etc.) among the crty's solid waste customer classes (e.g. residential, commercial, etc.)

Step 4 is only necessary when the city serves more than one customer class.

Step 5. The final step is to calculate the crty's user fees.

The workbook will provide the city with the necessary forms to complete these five steps. Once the city has completed these steps, the crty will then be able to identtfy the cost of each solid waste program offered by the city, as well as the cost per customer served (see Exhibit 1).

Depending on how the ctty is presently recording its solid waste costs and volumes, the city may not have to use the workbook to complete all five steps. For instance, if the city records its direct and indirect solid waste costs in a solid waste enterprise fund, then the city does not need to use the workbook to complete Steps 1 and 2. Since every city is unique, each city will have to review the entire workbook and then determine which forms in the workbook should be used to calculate the city's solid waste rates.

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Exhibit 1

Identify Identify MSW

City Budget and Solid

Texas Natural Resource Conservation Commission Municipal Solid Waste - Full Cost Accounting Workbook

Process Flow Chart

Identify Identify Cost cost Per Customer

r r l m Information

Waste Records I Directcosts I

From:

.) Enterprise Fund Idente Directly from Budget;

or

!) General Fund Identtfl Directly from Budget or Calculate Using Forms 1 through 9.

MSW = Municipal Solid Waste

I Indirect Costs 1 I Perprogram J

1) Indirect Costs Already Identified by City

cproceed to Step 3);

or

2) Indirect Costs Need to be Determined

Use: I) Internal Assessment Allocation (Form 10); or

(Form 11). b) Employee Based Allocation

1) Direct Costs Are Directly Assigned or Allocated by Program

I) If Direct Costs Already Identified by Program (in Step l), Proceed to Step 4; or

by Program, Calculate Program Costs Using Forms 1 through 9.

)) If Direct Costs not Identified

and

2) Indirect Costs Allocated by Program

Based on a Composite of Direct costs or # of Employees.

I

1) Direct Costs Are Directly Assigned or Allocated by Customer Class

I) Direct Costs Already Identified by Customer Class; or

3) If Direct Costs not Identified by Customer Class, Calculate Customer Class Costs Using Form 14.

and

2) lndirect Costs Allocated by Customer Class

Based on a Composite of

d . c a w a t e TOM calculate Total Cost

Rates to be Calculated: 1) Rate Per Household 2) Rate Per Container 3) Rate Per Special Program ( Tire, Battery, Used 011, etc.)

B. Forms Provided In The Workbook

The workbook is constructed in such a manner that there are three summary forms and fourteen data collection forms that may be used by the city to compile its detailed cost and volumetric data. Forms A and B and Forms 1-1 3 may be used to determine the cost for each of the city's solid waste programs. For those cities that have more than one class of customers (e.g. residential, commercial, etc.), Form C and Form 14 will help those cities to determine the program costs by customer class. Exhibit 2 provides a flow chart describing how the forms are used to develop a city's solid waste rates. The following forms are included in the workbook:

Summary Forms Form A Program Cost Summary

Form B Rate Calculation Summary

Form C Customer Class Cost Summary

Detailed Cost Information Forms Form 1 Salaries, Wages & Benefits

Form 2 Monthly Vehicle Expense Report

Form 3 Annual Vehicle Expense Report

Form 4 Capital Costs

Form 5 Other Landfill Costs

Form 6 Predevelopment And Construction Costs

Form 7 Closure & Post-Closure Care Costs

Form 8 General Operation & Maintenance Costs

Form 9 Other Costs

Form 10 Indirect Costs - Method I: Internal Assessment Allocation

Form 11 Indirect Costs - Method II: Employee Based Allocation

Detailed Volume Information Forms Form 12 Monthly Materials

Form 13 Annual Materials

Detailed Customer Class Allocation Form Form 14 Customer Class Costs - Detail

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Exhibit 2


Data Collection And Form Flow Chart

Detailed Cost Information Forms -

Form 1 Salaries, Wages & Benefits I 1 Form 2 Monthly Vehicle Expense Report

Form 3 Annual Vehicle Expense Report I. 1 Form 4 Capital Costs

Form 5 Other Landfill Costs I 6 Redevelopment And I Construction Costs

I Care Costs 7 Closure & Post-Closure

Operation & Maintenance

Form 9 Other Costs I 10 Indirect Costs - Method I: I Internal Assessment Allocation

11 Indirect Costs - Method 11: Employee Based Allocation I -

Summary Forms

Program Cost Summary Customer Class Cost Summary (if applicable)

FormC

i Rate Calculation Summary

A

I Form13

Form 12 r- Annual Materials

Monthly Materials

Customer Class Costs - Detail

C. How To Use The Forms

After the clty has reviewed the workbook, it can then determine which forms need to be used to calculate its solid waste rates. Form A, Program Cost Summary, will provide a breakdown of the city's total solid waste costs, by program. If the clty has a solid waste budget, it should be entered into Form A, column A.

After identifying all direct costs, indirect costs and revenue offsets associated with a c w s solid waste utility, the city should allocate these costs by solid waste program (Step 3). Cities which already track and record their solid waste costs by program will not need to use Forms 1-1 1. Those cities that have not identified their solid waste costs by program can use Forms 1-1 1 to calculate the cost of each solid waste program. Based on the clty's financial records, they may not need to use all of the detailed cost information forms. For instance, a c w s accounting system might track capital costs by program, therefore they would not need to use Form 4, Capital Costs.

After identifying the costs for each of the city's different solid waste programs, the next step is to allocate the costs by customer class (Step 4). This step may not need to be completed by all cities, depending upon the types of solid waste programs offered by the city, as well as the types of customers served. Typically, cities will not need to allocate program costs by customer class unless they offer collection service to residential and commercial customers. To identify program costs, by customer class, the city may use Form C and Form 14.

The forms in this workbook are designed to provide a generic process, so they can be used by a wide variety of cities in Texas, all of which have different accounting and financial reporting requirements. Based on a city's specific needs, it may decide to create its own supplemental forms.

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IV. SUMMARY FORMS

This section of the workbook provides a brief description of the summary forms and how the city can use these forms to identify the cost of each solid waste program and develop the appropriate customer charges and tipping fees.

A. Program Cost Summary (Form A)

The Program Cost Summary Form will allow the city to determine the cost of each solid waste program offered by the city. The beginning point for most cities will be Column A, where they will enter the municipality's solid waste budget. Columns B-F will be used to determine the cost associated with each of the city's solid waste programs. The specific program costs can be determined either from the city's own financial records or by using Forms 1-1 1.

Those cities that provide solid waste services, but do not have a formal solid waste budget, can use Forms 1-11 to determine the cost of each solid waste program. The city can then total the program costs to arrive at the city's solid waste budget. This situation may occur when a municipality's solid waste services are included in the general fund and the solid waste expenditures are not summarized in a solid waste budget.

Finally, this workbook is being made available to cities in an attempt to help them identify all of their solid waste costs. If during the completion of the workbook a city discovers that their solid waste budget does not reflect all of the solid waste costs actually incurred by the city, the workbook can be used to assist in revising the city's solid waste budget to reflect the full cost of providing these services.

B. Rate Calculation Summary (Form B)

The Rate Calculation Summary Form will be used to determine the appropriate customer charges and tipping fees that will allow the city to recover the cost of providing solid waste services to its customers. Lines 1-3 will be used to calculate rates for each solid waste program offered by the city, provided that program has only one class of customers. If the city has more than one customer class for a particular solid waste program, then lines 4-6 will be used to calculate the rates.

Proclram Rates (lines 1-31 If the city has only one customer class and a standard billing unit for all customers of a particular solid waste program, then lines 1-3 of Form B can be used to calculate the appropriate rate. The program cost data compiled in the Program Cost Summary (Form A, line 22) will be divided by the appropriate number of billing units to arrive at the cost per household or container.

Customer Class Rates (lines 4-61 If the city provides a solid waste program which has more than one customer class, then the rates must be determined using lines 4-6 of Form B. An example of such a service would be if the city offered residential collection service (using standard 30, 60 and 90 gallon containers) and commercial collection service (using 4, 8 and 12 cubic yard containers). In this case the city will use the program cost data compiled in the Customer Class Cost Summary (Form C, line 22) and divided by the appropriate billing units to arrive at the rates for residential and commercial customers.

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If a ctty is establishing rates for residential customers, these rates are usually calculated "per household." If a city is establishing rates for commercial customers that use the larger commercial containers, these rates are usually determined based on the size of the container and frequency of pickups. Each city will need to determine the appropriate billing units for each of the solid waste services offered to its customers (e.9. $ per household, $ per container, $ per ton, $ per gallon, etc.). If a ctty provides only residential service and divides its program costs (Form 6, line 1) by number of households served (Form B, line 2) this will provide the annual cost per household for each program. By summing the annual costs per household for each program, the city can then determine the total annual cost per household for all solid waste services. An example is as follows:

Collection D ispo sa I Recycling 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 (households served)

Annual Cost Per Billing Unit $55.56 $69.44 $41.67 $1 66.67

The annual cost per household is $166.67. In order to recover the full cost of providing these services, the city will need to establish a monthly customer charge of $13.89 ($166.67 / 12 months).

The rates calculated in this example assume the city will bill its residential customers a flat monthly charge per household for solid waste services. In other words, all customers pay the same amount. In the past few years variable rates or "Pay-As-You-Throw" rates have become increasingly more commonplace in the United States. Variable rate fee structures are just now beginning to be implemented by a few cities in Texas. While relatively few cities in Texas have put in place a variable rate fee structure, they are gaining attention because the rate structure encourages residents to minimize the amount of waste they generate. Using a variable rate structure, the more garbage a household generates the larger that customer's garbage bill. While a description of how to develop variable rates is beyond the scope of this workbook, use of this workbook will allow the city to determine its full cost of providing solid waste services. This information can then be used to assist the city in developing variable rates for its solid waste services.

C. Customer Class Cost Summary (Form C)

The Customer Class Cost Summary will only be used by those cities that offer a solid waste program to more than one customer class. This form is similar to the Program Cost Summary (Form A), with the exception that this form is used to assign costs between customer classes, instead of between programs. Once these costs have been assigned, the city may then use Form B, lines 4-6 to calculate the solid waste rates, by customer class.

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Texas Natural Resource Conservation Commission

1 2 3 4 S 6 7 8 9

10 11 12 13

Service Provider: 1 Date Prepared: Fiscal Year:

A B C D E F 1

1 MSW Program Category rnllertinn 1 Disnnsal 1 Recvclinn I Yard Waste I Other

Salaries, Wages & Benefits (Form 1) Vehicle Expense (Forms 2 and 3) Other Long Term Debt Payment (Form 4) Short Term Debt Payment (Form 4) Cash Capital Outlays (Form 4) Extraordinarv Cash Outlaw (Form 4

Sub-Total General O&M (Form 8) Other Costs (Form 9)

Total Direct Costs

Other Revenue: 15 16 17 18 19 20 21

22

Note: (a) For those cities that have contracted to dispose of their solid waste at a private landfill or at a landfill owrated bv a Drivate waste management comaanv

(to Form B, Line 1)


Program: Residential

Service Provider: I

Commercial Other

Date Prepared: Fiscal Year:

A B C D E F Program Category

Collection I Disposal I Recycling I Yard Waste I Other I Total

1 Total Full Cost

(From Form A, Line 22 )

2 Billing Units (a)

Cost Per Billing Unit 3 ( Line 1 / Line 2)

Total Full Cost (From Form C, Line 22) 4

5 Billing Units (a)

Cost Per Billing Unit 6 (Line 4 / Line 5 )

Notes: (a) Number of households served, commercial containers x frequency, tons, etc. (b) This section should be completed for each solid waste program that has more than one customer class.


alaries, Wages & Benefits

Lrvice Provider: I

;hart Term Debt Payment :ash Capital Outlays

I A B C D

>eneral O&M kher Costs

I MSW PROGRAM: I Program Cost Customer Classes

Residential I Commercial I Other

traordinary Cash Outlays her Landfill Costs ntractual Dismsal Service (c)

rdirect Costs (b): Total Indirect Costs I I I I 1

Mher Revenue (b): nterest Income I I I I I Sale of Recyclables vliscellaneous Revenues Zquipment Salvage Value 3her

I I I I I

Total Full Cost (Lines 13+14-21) I I I I f (to Form B, Line 4)

otes: a) This form should be completed for each solid waste program that has more than one class of customers. b) Calculated using Form 14. c) For those cities that have contracted to dispose of their solid waste at a private landfill or at a landfill

operated by a private waste management company, the annual amount paid should be entered here.

V. DETAILED COST INFORMATION FORMS

A. Salaries, Wages 81 Benefits (Form 1)

This form is designed to summarize a clty's detailed direct labor and employee benefit costs in an annual format which may then be assigned to the city's various solid waste programs. The purpose of this form is to capture the salaries, wages and benefits of only those employees who work exclusively within the city's solid waste department. The form will include the costs associated with both full time and part time employees. The form is not to be used to capture the salaries, wages and benefits associated with personnel such as the city manger, director of finance, etc. These salaries, or portions thereof, will be captured in the indirect cost allocation forms as calculated using either Form 10 or 11.

The city will need to complete one Salaries, Wages & Benefits Form for each of the city's solid waste programs. For instance, if the city has three solid waste programs (collection, disposal and recycling), the city should complete this form for each program. This will allow the city to clearly identify the salaries, wages and benefits associated with each solid waste program. If the city's annual budget already provides salaries, wages and benefits by program, the city does not need to use Form 1. Instead, the city may simply enter the salaries, wages and benefits by program, directly from the city's budget on to the Program Cost Summav Form (Form A, line 1).

Employees who perform duties for more than one program should designate such information when filling out their detailed timesheets. Distinctions should be made between different solid waste programs, as well as between residential and commercial customer classes, if applicable.

Data to be entered into Form 1 is as follows:

Service Provider: Name of city, government agency, or private operator completing the workbook.

Date Prepared: Date the form is completed.

Fiscal Year: Record the fiscal year which applies.

Program: Record the name of the solid waste program. The city should fill out one Salaries, Wages & Benefit Form for each of the city's solid waste programs.

Employee: Enter the name or other identification of each employee who works on this program.

Total Wages: Record each employee's annual wages including overtime, bonuses and other monetary compensation. (Some of these items may need to be estimated.)

Benefits: Include FICA, vacatiodsick leave, worker's compensation, unemployment insurance, retirement contribution and other pertinent benefits. These costs can be developed on an individual employee basis or using a composite factor depending on the type of records kept by the municipality.

Total Wages & Benefits: Combined Wages and Benefits for the employee.

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0 Proportion of Time on this Program: Record percentage of time that employee spends working on this program. After completing the Salaries, Wages & Benefit Forms for each program, make sure for any individuals whose time was allocated between different programs that the percentages total to 100%.

0 Wages and Benefits this Program: This entry is calculated by multiplying the "Total Wages and Benefits" column by the "Proportion of Time on this Program."

The salaries, wages and benefits for each program are then totalled at the bottom of Form 1 and entered on the Salaries, Wages & Benefits line of the Program Cost Summary for each respective program (Form A, line 1).

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Service Provider: Date Prepared: Fiscal Year: Program:

Total Proportion of Total Wages & Time on Wages and Benefits

I I I I I Total Salaries, Wages & Benefits

(To Form A, Line 1)

B. Vehicle Expense (Forms 2 and 3)

The purpose of the vehicle expense forms is to assist the city in budgeting its annual costs associated with operating and maintaining equipment for each of the city's solid waste programs. These costs include parts, supplies, fuel, and all labor involved in the maintenance and repair of the city's solid waste vehicles. There are a number of methods which the crty may use to track and record these costs: 1) the use of an internal services fund; 2) the use of some other financial reporting system within the crty; or 3) the use of Forms 2 and 3.

The workbook will provide a brief overview of the first two accounting methods and a more detailed description of Forms 2 and 3. If the city has a current vehicle cost reporting system that allows them to budget vehicle expenses, and identify which solid waste program(s) uses the vehicle, the city will not need to use Forms 2 and 3. For those cities that do not have a system in place to track and record vehicle costs by solid waste program, Forms 2 and 3 will help cities to identify these costs.

1) Internal Services Funds Prior to determining the city's vehicle costs for each solid waste program, the city should first review the process it is currently using to record vehicle costs. Many cities use an internal services fund to track and record the costs associated with purchasing and maintaining its fleet of city vehicles. This equipment is' then "leased" to the individual departments within the city. If the city tracks and records all vehicle costs (purchases, repairs, fuel, etc.) through the use of an intemal services fund, the city will probably not have to use Forms 2 and 3 to determine vehicle costs. Once the internal services fund has determined the annual costs associated with each of the clty's solid waste vehicles, the only remaining step is to identify which vehicles, or portions of vehicles are associated with specific solid waste programs. The city can then determine the vehicle costs associated with each solid waste program.

2) Other Financial Reporting Systems While a city may not have an internal services fund, it may still utilize a financial reporting system that allows the city to track costs associated with each vehicle. As long as the system is capable of recording the costs associated with each vehicle and the city can determine which s o l i waste program(s) uses the vehicle, the city will not have to use Forms 2 and 3.

3) Forms 2 and 3 For a city that has not historically tracked vehicle expenses, by vehicle, Forms 2 and 3 may be used to determine these costs. Form 2 will need to be filled out monthly for each solid waste program. For instance, using Form 2 the city's collection program will list each piece of equipment that is used in the collection of solid waste, including equipment that is partially used (example: 50% collection, 50% recycling). After completing a Form 2 for each of the city's solid waste programs, the city will have the total monthly fuel, repair labor, parts and supplies, outside costs, and lease costs associated with each vehicle in a solid waste program. The annual vehicle cost for each program is calculated by completing Form 2 on a monthly basis for each solid waste program and then recording the monthly costs on Form 3. This will provide the crty with what it costs on an annual basis to own and operate its fleet of solid waste vehicles by program. This figure may then be used as a basis to determine the amount of vehicle expenses which will be budgeted for each solid waste program. The budgeted amount may then be entered on Form A, line 2.

If the costassociated with the purchase of vehicles is included in the internal services fund or on Forms 2 and 3, make sure these same costs are not included on the Capital Costs Form (Form 4) to avoid "double-counting" the purchase costs of any vehicles.

13

Forms 2 and 3 have the following entries:

e Service Provider: Name of city, government agency, or private operator completing the workbook.

e Date Prepared: Date the form is completed.

e Month: The month for which this report applies.

e Program: The program for which the form is being completed.

e Vehicle ID: Number or other identification for the specific vehicle.

e Fuel: Total fuel costs.

e Repair Labor: Costs of all labor charges for repair.

e PartdSupplies: Cost of all parts and fluids used for repair and maintenance.

e Outside Costs: Any external repair services required.

e Lease Cost: If the city purchases its vehicles through an intemal services fund and the financing costs are not recorded on the Capital Costs Form (Form 4), the city should record the monthly "lease cost" in this column.

e Total Monthly Costs of Vehicle: This column provides a total of the monthly costs incurred for each vehicle.

e Percent of Use in Program: The proportion of time that the vehicle is used by each of the ctty's solid waste programs. For most vehicles "100%" will be entered in this blank. However, if a vehicle is used 50% by collection and 50% by recycling, then 50% should be entered for this vehicle on the Form 2 which is completed for the collection program, as well as the Form 2 which is completed for the recycling program.

e Total Monthly Program Costs of Vehicle: The result of multiplying "Total Monthly Costs of Vehicle" by the "Percent of Use in Program." This dollar amount represents the proportion of the vehicle costs which are associated with this particular solid waste program.

e Total Monthly Vehicle Expense by Program: The total monthly vehicle expense by program is totalled at the bottom of Form 2. The monthly totals are then entered on Form 3 to arriie at the annual vehicle costs of each program.

14


Service Provider: Date Prepared:

Month: Progralll:

Total YO Total Monthly Repair Outside Monthly Costs of Use Program costs

( To Form 3)


r service Provider: I I Date Prepared: 1

Month

Jaw February

March

May

June

July

August

September

October

November

December

Fiscal Year: program:

Total Monthly Vehicle Exoense by Prmram

1 Annual Vehicle Expense by Program

C. Capital Costs (Form 4)

Providing municipal solid waste services requires that equipment, facilities and land be purchased and used. Some of the "smaller" asset purchases are often financed with "cash capital outlays." In these instances, the assets are paid for with cash, rather than through the issuance of debt. Larger capital purchases such as land, the construction of facilities, and the purchase of some types of equipment are usually funded with debt.

Cash capital outlays are used as a "financing vehicle" by most solid waste utilities and are often relatively constant from one year to the next. As such, the historical cash capital outlays of a municipal solid waste program service can often be used to predict future cash capital outlays. Financing larger expenditures with debt allows the ratable collection of funds over the life of the asset.

Since most municipalities operate on a cash basis, this workbook uses what is called a "modified cash basis" to ensure the establishment of cost of service based solid waste rates. Using annual principal and cash capital outlays in lieu of depreciation expense is an important difference between the modified cash basis and the accrual basis. The modified cash basis is preferred in the development of cost of service and rate design studies, since the purpose of these studies is to capture the full "cash" cost of providing the solid waste service on an annual basis. As mentioned earlier in the workbook, there are situations where the use of depreciation expense in the establishment of solid waste rates would generate insiufficient cash revenues on an annual basis to recover the debt service associated with an asset.

As mentioned in the Vehicle Expense Section (Forms 2 and 3), many municipalities use an internal services fund to purchase and maintain equipment. These funds purchase the required equipment and then "lease" it to the other city departments using a depreciation factor. This is an acceptable methodology, with the lease payment used in lieu of debt service, especially since these assets are often purchased with cash instead of debt. For purposes of this workbook, the internal services fund "lease cost" appears on the workbook's Vehicle Expense Form (Form 2), in anticipation of the same internal services fund also providing maintenance and repair activities as well.

If a solid waste program plans to purchase a major piece of equipment without using debt, or an internal services fund, its impact on "cash capital outlays" will be significant at the time of purchase and not acceptable from a rate design viewpoint. In this special case an amortization factor should be used in order to recoup the cash outlay ratably over the life of the asset. This situation is referred to as an "extraordinary cash outlay" on Form 4. In this case, the annual cost of the asset is determined by dividing the purchase price by the forecasted service life. Salvage values, when realized, will be recorded in the "Other Revenue" section of Form A, Program Cost Summary.

Form 4, Capital Costs, is a form that can help a crty determine the annual capital costs needed for each solid waste program by considering the annual cash outlays and debt service associated with each program. The city will need to complete a Capital Costs Form for each of the city's solid waste programs. This will allow the city to clearly identify the capital costs associated with each solid waste program.

Form 4 has the following entries:

e Service Provider: Name of city, government agency, or private ~ operator completing the workbook.

e Date Prepared: Date the form is completed.

15

Fiscal Year: Record the fiscal year that applies.

Long Term Debt Payment:

Program: The solid waste program that the debt service and cash outlays support.

Debt Issue - The date and size of the bond issue.

Total Principal and Interest (P&l) Annual Amount - The total annual payment (principal and interest) for the specified bond. Depending on the payback schedule this number can change from year to year or remain constant. In addition, applicable coverage and revenue requirements should be included for revenue bonds.

Percentage To Program - The proportion of assets related to this program as a percentage of the entire debt issue. A description of the funded assets should be specified in the bond issue. If the level of detail is insufficient to develop a percentage, estimates should be made with original purchase prices.

Program P&l Annual Amount - Calculated by multiplying the "Total P&l Annual Amount" by the "Percentage to Program."

Year Debt Expires - This is the final year of debt service associated with the bond issue. This column is not used in the capital cost analysis but is identified to facilitate subsequent reporting. Early debt payoffs and/or refinancings will need to be considered in future report development.

0 Short-Term Debt Payment:

8 Debt Issue - Description of warrant or short-term lending instrument.

8 Total P&l Annual Amount - Annual payment for debt issue.

8 Percentage To Program - Percentage of principal which was identified for assets used by this program. These short-term debt issues are normally passed by city ordinance. The original ordinance should have a description of the assets it was to be used for. Make estimates as necessary to develop percentage.

8 Program P&l Annual Amount - Calculated by multiplying the "Total P&l Annual Amount" by the "Percentage to Program."

8 Year Debt Expires - This is the final year of debt service associated with the bond issue.

16

e Cash Capital Outlays:

Description - Cash Capital Outlays are generally described in the city's budget. If insufficient detail is available at the budget level, estimates must be made and/or supporting analysis used.

Purchase Amount - Dollars identified for each group of capital expend it u res.

m Percentage To Program - Percentage of each capital expenditure which is to be used by this solid waste program. Again, detail must be located or estimated to develop this percentage.

Program Annual Amount - Calculated by multiplying "Purchase Amount" by the "Percentage To Program."

If a large group of program assets is budgeted to be purchased from cash capital outlays, which is considered outside the course of normal operations, an amortization of this expenditure may be used to avoid "rate spikes." The following entries are used in this situation:

0 Extraordinary Cash Outlays

Description - Large capital assets budgeted to be purchased with cash.

Purchase Amount - Estimated or actual purchase price.

m Expected Life - Number of years the equipment is projected to remain in service.

Amortized Annual Amount - Purchase price divided by expected life. Any salvage value realized at the end of the asset's life will be included in Other Revenues (Form A, Program Cost Summary).

Retirement Year - Date the piece of equipment is forecasted to be taken out of service. This column is included to facilitate subsequent reportings.

17

-

Total


(1)

Long Term Debt Payment

I I I I Total I

TotalP&I Percentage ProgramP&I Year Debt Debt Issue Annual Amount To Program Annual Amount Expires

(1)

Total

Cash Capital Outlays Purchase

(1)

Percentage Description Amount ToRogram AnnualAmount

I I I I 1

(1) To Form A, Lines 4-7

D. Other Direct Landfill Costs (Forms 5, 6 and 7)

Landfill management has become an increasingly complex business. Landfill operators are faced with closure costs, environmental monitoring, predevelopment costs, construction costs, not to mention the costs associated with the day-to-day operation of a landfill. While the costs of salaries, vehicles, general O&M, etc. are captured using the other forms provided in the workbook, there are certain costs which are unique to the operation of a landfill. Three forms have been specifically developed to address these costs. Form 5 Other Landfill Costs may be used to record the annual costs incurred in operating a landfill. Daily cover and leachate collection are examples of some of the costs which may be recorded on Form 5. In addition, "Predevelopment and Construction Costs" and "Closure & Post- Closure Care Costs" may be calculated using Forms 6 and 7, respectively. The totals on Forms 6 and 7 are then brought forward and recorded on Form 5, lines 11 and 12. Once Form 5, Other Landfill Costs, has been completed, the total cost on line 16 is recorded on the Program Cost Summary Form (Form A, line 8, column C.)

Note: If predevelopment and construction costs are already included on the Capital Costs Form (Form 4), these costs should not be included on Form 5. If these costs are recorded on both forms, this will result in an overstatement of disposal costs.

Other Landfill Costs (Form 5)


0 Service Provider: Name of city, government agency, or private operator completing the workbook.

0 Date Prepared: Date the form is completed.

0 Fiscal Year: Record the fiscal year that applies.

0 Site: Physical location of the landfill, name or permit number.

0 Operating Costs: The annual costs of operating the landfill should be recorded on lines 1 through 9. These costs should not include salaries, wages & benefits; vehicle expenses; general O&M; or any other costs which are already recorded elsewhere using the forms provided in the workbook. To do so would result in an overstatement of the ctty's disposal costs.

0 Annualized Predevelopment and Construction Costs: These costs are calculated on Form 6 and should be brought forward and entered on this line. This line may be $0 if these costs are fully captured in the Capital Costs Form (Form 4).

0 Closure and Post-Closure Care Costs: These costs are calculated on Form 7 and should be brought forward and entered on this line.

Total: Sum lines 10 and 15. This is the c w s annual Other Landfill Costs and should be recorded on Form A, line 8, column C.

0

18

-


Operating Costs: 1 CoverMaterial 2 Laboratory Testing 3 permits 4 Gas Collection 5 lachate Collection & Disposal 6 Engineering 7 Legal 8 9 Other

Regulatory Fees (i.e. TNRCC Fees)

10 Sub-Total

11 Annualized Redevelopment and Construction Costs

12 Closure and Post-Closure Care Costs

13 Other 14 Other

(From Form 6, Line 20)

(From Form 7, Line 19)

15 Sub-Total

16 Total 0 (to Form A, Line 8)

Predevelopment And Construction Costs (Form 6)

Form 6 is used to record those costs which are incurred during the planning and construction of the city's landfill. Because these costs are material in nature, it is important that they be recognized during the life of the landfill. By developing rates which recognize these costs over the life of the landfill, the ctty ensures that all users of the landfill share equally in its construction. As mentioned earlier, if these costs or a portion of them are already included in the capital costs (Form 4), they should not be included on Form 6 to avoid double-counting these costs.





Site: Physical location of the landfill, name or permit number.

Predevelopment Costs: The predevelopment costs associated with the development of the crty's landfill should be recorded on lines 1 through 6. If these costs are already included in capital costs (Form 4), leave this section blank.

Construction Costs: The construction costs associated with the construction of the city's landfill should be recorded on lines 8 through 16. If these costs are already included in capital costs (Form 4), leave this section blank.

Total Predevelopment and Construction Costs: Sum lines 7 and 17.

Expected Landfill Life (years): Number of years the landfill is expected to remain open.

Annual Cost: This cost should be calculated by dividing total predevelopment and construction costs by the expected life of the landfill. The Annual Cost is then recorded on Form 5, line 11.

19

Texas Natural Resource Conservation Commission MuniciDal Solid Waste - Full Cost Accounting Workbook

Service Provider: Date Prepared: Fiscal Year: Site:

Predevelopment Costs: 1 Engineering and Design 2 Permiting 3 Legal 4 Landhrchase 5 Kdministrative 6 Other

7 Total Predevelopment Costs

Construction Costs: 8 Earthwork 9 Liner System

10 Leachate System 11 Gasventing 12 Scale System 13 Landscaping 14 Construction Engineering 15 Other 16 Other

17 Total Construction Costs

18 Total Predevelopment and Construction Costs

19 Expected Landfill Life (years)

20 Annual Cost (Line 18 Divided by Line 19) 0 (to Form 5, Line 11)

Closure & Post-Closure Care Costs (Form 7)

This form is used to determine the annual landfill closure and post-closure care costs. With the enactment of Subtitle D these costs have become a much more significant part of the overall cost of operating a landfill. Once a clty's closure and post-closure care costs are estimated, i f a ctty is going to establish cost of service based solid waste rates, it should include this cost in the city's tipping fees and/or customer charges. It should be noted that cities are required to recalculate the closure and postclosure care costs each year, which can result in this cost increasing beyond its original estimate. Because of the materiality of this cost, it is recommended that cities use Form 7 to assist them in recovering this cost through the inclusion of this expense in their tipping fees and customer charges.

Form 7 recognizes that the closure of a landfill is completed in a series of phases over the life of the landfill. Therefore, closure costs are re-calculated annually for each phase of the landfill that is currently receiving waste. The amount of closure costs that need to be recovered in the tipping fee is determined as follows:

Estimated closure costs - Amount alreadv reserved Expected number of years until funds are required

A simplified example will show how this amount may be calculated annually:

Assume that a clty's closure costs are estimated at $300,000 for a phase that will close in three years. In the first year $100,000 will need to be recovered through tipping fees and set aside for closure costs ($300,000 / 3 years = $l00,OOO). Assume that in the second year the estimated closure costs have risen 3%. Closure costs are now estimated at $309,000. The city will need to recover $104,500 through tipping fees in the second year to set aside for closure costs ($309,000 - $1OO,OOO) / 2 years = $104,500. In the final year, assuming costs again increase 3%, the closure costs are now estimated at $318,270. In the third and final year the city will need to recover $1 13,770 through tipping fees and set this amount aside for closure costs ($318,270 - $204,500) / 1 year = $1 13,770.

Post-closure care costs will be calculated in the same manner as closure costs, however they will be calculated over the life of the landfill, as opposed to just a phase of the landfill. Once the annual closure and post-closure care costs are calculated they are then added together and recorded on Form 7, line 19. This amount is then forwarded to Form 5, line 12.

It is not required by law that cities in Texas establish a cash reserve in recognition of these closure and post-closure care costs. Cities are only required to satisfy the financial assurance requirements (Tile 30, Texas Administrative Code, Chapter 330, Subchapter K) and recognize this liability in their financial reports. However, from a ratemaking standpoint this is a known and measurable cost which cities are going to incur in the future and which is created by the current users of the landfill. Therefore, it is recommended that cities include this annual cost (as calculated using Form 7) in their current tipping fees, so as to begin recovering the closure and post-closure care costs from the users of the landfill which are the generators of this future liability. The portion of the tipping fee associated with the closure and post-closure care costs could then be deposited by the city in a reserve account.

Cities that own and operate landfills under the small arid landfill exemption should be aware that they are not exempt from complying with landfill closure and posttlosure care requirements.

20

For cities that desire additional information concerning this issue, please refer to:

1. Title 30 Texas Administrative Code Chapter 330, Municipal Solid Waste Subchapter K: Financial Assurance

and

2. Statement No. 18 of the Governmental Accounting Standards Board Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs August 1993





Site: Physical location of the landfill, name or permit number.

Date of Cost Estimate: Date Closure and Post-Closure Costs were last estimated .

Phase 1 Closure Cost: The ctty's estimated cost of closure for Phase 1 of the landfill. (This same cost estimating methodology is used for Phase 2, or however many phases the landfill will ultimately close.)

Less Amount Already Reserved For Closure: Amount of money already reserved by the city to pay for closure costs.

Net Remaining Closure Costs: "Phase 1 Closure Cost" less "Amount Already Reserved For Closure" (line 1 - line 2).

Expected Number of Years Until Funds Are Required: Number of years until the phase is closed.

Annual Cost For Phase 1 Closure: Calculated by dividing "Net Remaining Closure Costs" by "Expected Number of Years Until Funds Are Required." (Same calculation is done for Phase 2, or however many phases the landfill will ultimately close.)

Total Annual Closure Costs: The summation of the estimated annual closure costs for all phases of the landfill presently receiving waste.

Post-Closure Care Costs: The city's estimated post-closure care costs for the landfill.

21

e Less Amount Already Reserved For Post-Closure: Amount of money already reserved by the city to pay for post-closure care costs.

e Net Remaining Post-Closure Costs: "Post-Closure Care Costs" less "Amount Already Reserved For Post-Closure" (line 14 - line 15).

e Expected Number of Years Until Funds Are Required: The number of years until the clty closes the landfill.

e Annual Post-Closure Care Costs: "Net Remaining Post-Closure Costs" (line 16) divided by "Expected Number of Years Until Funds Are Required" (line 17).

e Total Annual Closure & Post-Closure Care Costs: Line 13 plus line 18. This amount is then recorded on Form 5, line 12.

22

Texas Natural Reso rce Conservation Commission Municipal Solid Waste - Full Cost Accounting Workbook

I Service Provider: I Date Prepared: Fiscal Year:

Closure Costs (1):


Closure Costs (1):

1 Phase 1 Closure Cost 2 3 4

5

Less amount already reserved for closure Net remaining closure costs (Line 1 - Line 2) Expected number of years until funds are required

Annual cost for phase 1 closure (Line 3/ Line 4)

6 'Phase 2 Closure Cost 7 8 9

10

Less amount already reserved for closure Net remaining closure costs (Line 6 - Line 7) Expected number of years until funds are required

Annual cost for phase 2 closure (Line 8/ Line 9)

11 12

Total Annual Closure Costs:

Phase1 (Line5) Phase 2 (Line 10)

13 Total (Line 11 + Line 12)

Post-Closure Care Costs:

14 Post-Closure Care Costs 15 16 17

18

Less amount already reserved for post-closure Net remaining post-closure costs (Line 14 - Line 15) Expected number of years until funds are required

Annual Post-Closure Care Costs (Line 16 / Line 17)

19 Total Annual Closure and Post-Closure Care Costs: (Line 13 + Line 18)

Note:

Site: Date of Cost Estimate:

vears Fl I$ Per year

. 4

[$ ]Pry-

I- I S lpecyear

[ l p e r y - (to Form 5, Line 12)

( 1) Recognizing that closure may be carried out in a series of phases at the landfill. For an example of how fees may be established to recover closure and post-closure care costs please refer to the example on p. 20 of this workbook.

E. General Operation & Maintenance Costs (Form 8)

This form is used to compile the General Operation & Maintenance Costs (General O&M) which are specifically budgeted in the Clty's solid waste budget. Examples of General O&M include office supplies, utilities, small equipment purchases, lease payments (other than those included in the Vehicle Expense Form), insurance (other than that which is included in the Salaries, Wages & Benefits Form), travel and training, and outside payments for services.

The first step in assigning General O&M costs to the city's solid waste programs is to group the costs in two categories, "Directly Assignable Costs" and "Allocated Costs." "Directly Assignable Costs" are those costs which can be directly associated with a particular program, or which are allocated based on a professional standard or educated estimate. For instance, engineering fees might be directly assignable to the clty's landfill operations. Other costs might be assigned based on the city staffs familiarity with a particular expenditure. For example, public education costs associated with the distribution of pamphlets might be assigned between the collection, recycling and yard waste programs based on the staffs knowledge of how the funds were expended.

However, there are some costs that will be unclear even to city staff as to how they should be allocated among the city's solid waste programs. In this case, these General O&M costs should be allocated to the city's solid waste programs based on a composite of the direct costs as summarized on Form A, line 10. Fdr instance, if 50% of the direct costs on Form A, line 10 are related to the city's collection program, and the city has $1OO,OOO in General O&M costs that cannot be directly assigned, then 50%, or $50,000, of these costs should be allocated to the collection program.

Form 8 is used to determine the amount of General O&M Costs associated with each of the city's solid waste programs. This is accomplished in a two step process: first by identtfying all of the directly assignable costs and assigning them to the appropriate solid waste programs; and second, by taking the remaining General O&M costs that are not directly assignable and allocating them to the solid waste programs based on a composite of the solid waste utilrty's direct costs (Form A, line 10). The entries on the worksheet are described below:

0 Service Provider: Name of city, government agency, or private operator completing the workbook.


0 Fiscal Year: Record the fiscal year which applies.

0 Directly Assignable Costs: Those costs which can be directly assigned to a program or which can be allocated based on professional standards or educated estimates.

8 Account Number - Entered, if applicable.

8 Description - Description of the cost (e.g. engineering fees, etc.).

8 Total Cost - Annual cost for the particular General O&M cost.

8 Program Category - Enter amount of costs directly assignable to solid waste programs (e.g. Collection, Disposal, Recycling, Yard Waste and Other). The total of these five columns should equal the number entered in the "Total Cost" column.

23

Total Dollar Amount - Summation of directly assignable costs, by program and in total.

Allocated Costs: Those General O&M costs which cannot be directly assigned and must instead be allocated based on percentages developed from the direct costs which are summarized on Form A, line 10.

Allocation Percentage - Calculated by summing the data on Form A, lines 1 through 9 and entering it on Form A, line 10. Using the data on line 10, calculate the percentage of direct costs associated with each program as a percentage of the total direct costs. This percentage is then entered on Form 8, line 11.

Account Number - Entered, if applicable.

Description - Description of the cost (e.g. copier service, etc.).

Total Cost - Annual cost for the particular General O&M cost.

Program Category - Assigned by multiplying "Allocation Percentage" (Form 8, line 11) by the "Total Cost" column for each separate cost item.

m Total Dollar Amount - Summation of allocated costs, by program and in total.

0 Total General O&M Costs Per Program: Sum of totals in "Directly Assignable Costs" and "Allocated Costs" groups (lines 10 and 18). This amount is then entered on Form A, line 11.

24


Total Cost

\Service Provider:, J

Program Category Collection I Disposal I Recycling I Yard Waste I Other

(Fiscal Year: I

Total Cost

DIRECI'LY ASSIGNABLE COSTS

Account Number Description

Program Category Collection 1 Disposal I Recycling I Yard Waste I Other

[Date Prepared:

11 I Allocation Percentage (1) 12 13 14 15

100% 1

10

Total Dollar Amount

ALLOCATED COSTS

I I I I I

Account Number

Total Dollar Amount I I I I I I

Description

18

19

F. Other Costs (Form 9)

This form is used to compile any additional costs associated with the city’s solid waste department that do not readily fall into one of the prior cost categories. It may be of use if a unique category of costs is incurred. The directions for Form 9 are identical to the directions for General Operation & Maintenance Costs (Form 8). Please refer to the General Operation & Maintenance Costs section for specific directions.

Once the Other Costs are calculated on Form 9, they are entered on Form A, line 12.

25


Total Cost

Service Provider: 4

Fiscal Year:

Program Category Collection I Disposal I Recycling I Yard Waste 1 Other

DIRECTLY ASSIGNABLE COSTS

9

IDate PreDared: I

1

Account Number

Account Number Description Total Cost

Description

Program Category Collection I Disposal I Recycling I Yard Waste I Other

ALLOCATED COSTS

G. Indirect Costs (Forms 10 and 11)

Indirect costs represent services which are provided to the clty's solid waste department by other departments within the clty. In order to develop cost of service based rates, an accurate allocation methodology must be developed in order to assign a portion of these indirect costs to the city's solid waste department.

There are several accepted and commonty used methods for allocating indirect costs. For purposes of the workbook, two methodologies are explained in detail. However, cities may use other methods to allocate indirect costs as long as they reflect the cost incurred to provide the service(s) to the solid waste utility.

Method I: Internal Assessment Allocation (Fom 10)

This methodology requires that each department providing support services to the solid waste utility determine the percentage of their total costs associated with providing service to the solid waste utiltty. For instance, the purchasing department might determine its level of support service provided to the solid waste utility based on the percentage of purchase orders processed for solid waste programs as a percentage of total purchase orders processed. In the finance department, costs could be allocated on a proportion of financial transactions. The engineering department could allocate costs based on the total number of hours spent on solid waste activities as a percentage of total hours in the department.

This methodology will also allow the allocation of department costs based on interviews with individuals in the department who may be able to better determine what percentage of their time is spent on solid waste activities. Form 10 provides a framework to support the internal assessment methodology.

0 Service Provider: Name of city, government agency or private operator completing the workbook.


0 Fiscal Year: Record the fiscal year that applies.

Part 1 - Indirect Costs Allocated to the MSW Department

0 Department: List the departments that provide support services to the c w s solid waste department (e.g. Purchasing Department, Finance Department, etc.)

0 Departmental Budget: Enter the annual budget for each department.

0 Percentage Attributable to Solid Waste Department: Based on the ctty's own internal assessment, determine the percentage of the budget which would be attributable to the solid waste department.

0 Dollar Amount Attributable to Solid Waste Department: Column 2 multiplied by Column 3.

26

Part 2 - Allocation of Indirect Costs to each MSW Program

e Program: Enter the name of each solid waste program in this column.

e Direct Costs: directly from Form A, line 13).

Enter the total direct costs for each program in column A (Enter

e Percentage of Total MSW Direct Costs: Divide the Direct Costs for each program (Column A) by the "Total MSW Direct Costs" at the bottom of Column A, line 20.

0 Total From Part 1 ($ Amount): Enter the total "Dollar Amount Attributable to Solid Waste Department" (Column 4, line 13) on each line in Column C.

e Indirect Cost to Program: Multiply Column B by Column C to determine the indirect cost associated with each of the citys solid waste programs. This amount is then entered on Form A, line 14, for each solid waste program.

Method 11. .Employee Based Allocation (Form 11)

This allocation is based on a ratio of solid waste employees to total municipal employees. The subsequent allocation to individual programs is accomplished by identifying the number of solid waste employees associated with each solid waste program.

e Service Provider: Name of city, government agency or private operator completing the workbook.


e Fiscal Year: Record the fiscal year which applies.

Part 1 - Budgets for Departments Providing Indirect Senrice to Solid Waste Department

0 Department: List the departments which provide support services to the clty's solid waste department (e.g. Purchasing Department, Finance Department, etc.)

e Department Budget: Enter the annual budget for each department.

Part 2 - Indirect Costs Allocated to the MSW department

e Solid Waste Employees: Enter the total number of solid waste employees on line 14. Part-time employees should be added as a fraction (e.g. 112, 1/4, etc.).

0 Total Municipal Employees: Enter the total number of municipal employees on line 15. This number should include all municipal employees, both full-time and part-time employees.

Ratio of MSW Employees to Total: Divide line 14 by line 15. 0

27

-

0 Amount Allocated to MSW: Total from Part 1, line 13 multiplied by the percentage in Part 2, line 16.

Part 3 - Allocation of Indirect Costs to each MSW Program

0 Program: Enter the name of each solid waste program in this column.

0 Solid Waste Employees by Program: Enter the total number of solid waste employees associated with each specific solid waste program. Part-time employees should be added as a fraction (e.9. 1/2, 1/4, etc.).

0 Percentage of Total MSW Employees: Divide the number of MSW employees for each program (Column A) by the "Total MSW Employees" at the bottom of Column A, line 24. (Note: "Total MSW Employees" should equal the number of solid waste employees from Part 2, line 14.)

0 $ Amount from Part 2, Line 17: Enter the total dollar amount from Part 2, Line 17 on each line in Column C.

0 Indirect Cost to Program: Multiply Column B by Column C to determine the indirect costs associated with each of the citvs solid waste programs. This amount is then entered on Form A, Line 14, for each solid waste program.

28


S Amount % Attributable Attributable to

Department Departmental Budget to Solid Waste Dept. Solid Waste Dept. ~

/Service Provider: 1

Direct Costs (From Form A, Line 13)


Total from % of Total MSW Part1 Indirect cast to

Direct Costs (S Amount) program (BXC)

TOTAL u (To Part 2, Column C)

A B C D ,

Program

Collection Disposal Recycling Yard Waste Other

I 1 I I I Total MSW Direct Costs1 1 Oo?h (To Form A, Line 14)


18 19 20 21 22

I Service Provider: I

Collection Disposal Recycling Yardwaste Other


Department Departmental

Budget

I I

11 12 l::

TOTAL

14 Solid Waste Employees 15 Total Municipal Employees

I ~~~~

16 Ratio of MSW Employees to Total l(Line 14 divided by Line 15)

17 Amount Allocated to MSW Y l ( T 0 t a l from Part 1 multiplied by Line 16

A B C D

Program Solid Waste % &Total MSW S Amount From Indirect Cost to

Employees by Program Employees Part 2, Line 17 Program (BXC)

23 1 I I I

I I I I I I I I I

24 Total MSW Employees 1 lW? (To Form A, Line 1 I 1

H. Other Revenue

Sources of other revenue for the city's solid waste utility are listed on Form A, Lines 15 through 20. These revenues include interest income, revenues generated from the sale of recyclables, miscellaneous revenue and the salvage value of any equipment sold by the city's solid waste utility. These revenues should be recorded as a revenue offset in the determination of the city's cost of providing solid waste services.

Where revenues can be directly assigned to a solid waste program they should be recorded as a revenue offset to only that program. For instance, the sale of any recyclables should be recorded as a revenue offset to the recycling program (Form A, Line 16, Column D). For those revenues which cannot be clearly identified with a particular solid waste program, they should be allocated among the programs based on a composite of the program's direct costs (Form A, Line 13).

I

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1. Weight and Volume Information (Forms 12 and 13)

Weight and volume information is critical if a municipalrty wants to establish cost of service based rates for its customers. Examples of solid waste programs that rely on volume or weight based billing units include commercial service with different sizes of bulk containers; landfill service provided to other municipalities; special services such as demolition debris disposal; and variable rates for residential service (customer charges are typically established based on the size of container used). Additionally, weight and volume information will prove to be valuable when implementing new programs, projecting usage, and evaluating capactty.

Many cities already have in place a reporting system that records and tracks the city's solid waste stream. However, for the city that does not have a reporting system in place, Forms 12 and 13 can be used by the city to track the amount of solid waste, recyclables, yard waste, etc. generated by the city on an annual basis. Many different methods for gathering this information are possible and a municipalrty must determine what type of reporting system will best meets its needs. At a minimum, a detailed accounting of the source, amount, and type of waste handled at each facility should be recorded.

Monthly Materials (Form 12)

This form provides a monthly summary to consolidate the amounts of waste handled at each of the clty's facilities. It is important that outside source waste (e.g. waste from another municipality) be designated separately so as not to include it in the ctty's waste stream. If a significant amount of outside waste is handled, separate detailed records should be maintained on the volume and type of outside waste handled. The city may wish to establish a separate customer class under the solid waste disposal program for this particular user(s). These schedules along with the daily schedules should be kept on file to provide historical records of the city's waste stream. Depending on the manner in which the city calculates its customer charges and tipping fees, the information gathered on Forms 12 and 13 may be used to calculate the city's solid waste rates on Form B.

(If the city desires a report to track detailed daily waste stream activity, a Daily Truck WeightNolume Record is attached as an addendum to this workbook. This form will feed daily activity directly to Form 12 which then summarizes the materials collected on a monthly basis.)


0 Service Provider: Name of city, government agency or private operator completing the workbook.


0 MontMYear: Month and year for which the data is being collected.

0 Units: An entry for units is available if different units are used for various categories of waste (e.9. tons, cubic yards, etc.)

0 Residential Solid Waste: The amount of solid waste collected from the clty's residential customers during that month.

0 Commercial Solid Waste: The amount of solid waste collected from the

30

city's commercial customers during that month.

e Recyclables: The amount of recyclables collected from the city's solid waste customers during that month.

e Yard Waste: The amount of yard waste collected from the city's solid waste customers during that month.

e Outside Sources: The amount of solid waste collected from sources outside the ctty during that month. Depending on the number of haulers and type of waste collected, the ctty will want to consider possibly recording this data in greater detail (e.g. by hauler, type of waste, etc.)

e Other: For any other types of waste.

0 Totals: Once the columns are summed the city then has a detailed record which describes the types of waste generated on a monthly basis.

Annual Materials (Form 13)

This form is a summary of the Monthly Materials Forms (Form 12). This form will provide the city with an annual materials summary report that details the amount of waste generated, by customer class (e.g. residential, commercial and outside city). The report will also summarize the amount of recyclables and yard waste collected on an annual basis. The city can then use this information to aid in calculating the city's cost of service based rates (on Form B). Finally, this information will allow the ctty to develop a database which will aid the city in identifying any trends with regard to decreased waste generation per capita, increases in recycling, participation in the city's yard waste collection program, etc.

31


Residential Commercial Yard Solid Waste Solid Waste Recyclables Waste

Units:

Service Provider: I

Outside Other Source

Date Prepared: Month I Year:

Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Totals


Residential Commercial Solid Waste Solid Waste Recyclables

1

Service Provider: I

Yard Outside Other Waste Source

Date PreDared: I

Totals

Year: I

units: I I I I 1 1 I

Month

January February

March

Apfil

f i Y

June

July

August

September

October

November

December

V

J. Customer Class Costs - Detail (Form 14)

Some cities may serve more than one customer class and need to calculate customer charges for each customer class. Typically, cities will not need to allocate program costs by customer class unless they offer collection service to residential and commercial customers. Recycling and yard waste programs are usually structured to serve primarily residential customers. In this case, there is only one customer class and the costs are borne entirely by the residential customers. The ctty will have to examine each of its solid waste programs to determine the customer classes served.

For purposes of this workbook, the residential customer class consists of single family home and multi- family units (typically four families or less). The non-residential customer class consists of commercial businesses, multi-family units (larger than four families), industrial users, and govemmental entities. The residential customer is assumed to use standard collection containers (30, 60, 90 gallon cans), while the non-residential customer class consists of commercial containers (typically 4 to 12 cubic yard containe IS).

It is important to note that if a city provides collection service to residential and commercial customers, but both classes use the traditional 30, 60 or 90 gallon containers, the ctty can usually treat all customers as one class. Distinct customer classes are created only when customers have different usage and volume characteristics, causing their cost of service to differ. In this case, since both residential and commercial customers use the same type of container, they will most likely have similar usage characteristics.

How to Calculate Rates For Different Customer Classes

If a city has more than one customer class, the methodology described in Example #1 should be used. The only exception is if a city’s disposal program (e.g. landfill) provides service to more than one customer class. In this case the methodology in Example #2 should be used.

Example #1 A city calculating cost of service based rates for different customer classes will start with Form A. For instance, if the city provides collection service to both residential and commercial customers, the crty will need to allocate the Collection Program Costs (Form A, Column B) between these two customer classes. The same methodology that was used to allocate costs between so l i waste programs will be used to allocate costs between customer classes.

Step 1. The collection program costs (Form A, Column B) will be entered on Form C, Column A.

Step 2. The next step will be to directly assign and/or allocate the program costs between the residential and commercial customer classes. To complete this direct assignment andor allocation of costs, the city will use Form 14, Customer Class Costs - Detail. Those costs which can be directly assigned to the residential or commercial customer classes should be identified. The remaining costs will be allocated based on a composite of the directly assigned costs.

For instance, to identify the Salaries, Wages & Benefits for each customer class, the city will need to review Form 1 Salaries, Wages & Benefits, which was completed for the Collection Program. The ctty will need to determine which of the individuals worked on commercial routes versus residential routes. Most cities will identify by route number the crews and equipment which are operating each week. This infprmation will also identify if the crews and equipment are operating on a residential or commercial route. This information can then be used to allocate labor costs between the different customer classes.

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This same methodology will be used to allocate the remaining costs between customer classes. Form 14 summarizes the costs which the city will need to directly assign and/or allocate between customer classes. While Form 14 will most likely not provide sufficient room for the clty to complete its customer class allocations, the form does provide a layout of the costs that need to be distributed between the different customer classes, and the methodology for determining the costs for each customer class.

Note: If the ctty did not use any, or only used some of Forms 1-1 1 to complete the calculation of its program costs, the clty will need to review its solid waste budget and financial records to determine whether they provide sufficient detail to assign andlor allocate program costs by customer class. If the ctty's financial records do not provide sufficient detail, it may choose to use some or all of Forms 1 - 11, depending on the crty's records.

Example #2 If the ctty has more than one customer class which utilizes the ctty's landfill, the disposal rate is calculated in a different manner than in Example # l . To calculate rates for the city's disposal program the city does not use Form 14. Instead, the rates are calculated as follows:

The total cost of the disposal program is divided by the tonnage received at the landfill, to establish a tipping fee'per ton. To calculate the residential customer's annual cost for the disposal program, the number of tons generated by residential customers is multiplied by the tipping fee to determine the total annual disposal costs for residential customers. This dollar amount is then divided by the number of households to arrive at the annual disposal cost per household. Commercial customers would have their cost calculated in the same manner, except their cost would be "$ per container." This same methodology would be used if the city recorded its waste in cubic yards.

33


Identification

[Service Provider: I

Expense

IDate Preeared: I IFiscaI Year: I (Program: I

( Columns A and B are taken directly from Form 1) A B C D E

I EmDlovee Salaries, Customer Classes I Waees & Benefits I Residential 1 Commercial I Other I

I Total (To Form C)

Annual vehicle expense may be calculated by determining the annual costs of each vehicle associated with the solid waste program for which rates are being established. This information may be gathered from the ciws internal services fund or by summing the "Total Monthly Program Costs of Vehicle" from Form 2 for 12 months and using this information to develop a budgeted amount in annual vehicle expense for each vehicle. This amount would then be assigned to the appropriate customer classes.

I Vehicle I Annual Vehicle I Customer Classes I

of 5 )

Long Term Program P&I Debt Issue: Annual Amount

Texas Natural Resource Conservation Commission MuniciDal Solid Waste - Full Cost Accounting: Workbook

Customer Classes Residential Commercial Other I I

-Provider: I

Short Term Program P&I Debt Issue: Annual Amount

Date Prepared: I

Customer Classes Residential I Commercial I Other

Fiscal Year: Program:

Cash Capital Outlays Program Customer Classes

I Commercial I Other Description: Annual Amount Residential J

--(Columns A and B are taken directly from Form 4)

Extraordinary Cash Outlays:

A B C

Amortized Customer Classes Annual Amount Residential I Commercial I Other

E

I I I I I I I I I I

Total (To Form C)I I I I 1

I Total (To Form C )

I I I I I I ~~

I I I I I Total (To Form C)I I I I 1

(Page 3 of 5)

Allocation Percentage (1)

- Texas Natural Resource Conservation Commission

Municipal Solid Waste - Full Cost Accounting Workbook

100%

kervice Provider: I

I Total (To Form C)

~ ~~~~

Date Prepared: Fiscal Year: Program:

- ---I I

Other Direct Landfill Costs are related solely to the city's disposal program. Because Form 14 is not needed to allocate disposal program costs between customer classes, these costs are not shown on this form. To allocate disposal program costs among customer classes refer to Example #2 on page 33 ofthis "Mxxk

-(General OgLM is taken directly from Form 8)

I I TotalCostforthe I Customer Classes I DescriDtion I Pmram I Residential I Commercial I Other

(1) This percentage is calculated based on a composite of the city's direct costs as &totaled on Form C, line 10. For instance, if 50% of the direct costs on Form C, line 10 are related to the residential customer class, then 50% is entered on this line under residential. 50% of the General M M costs are then allocated to the residential customer class.

(Page 4 of 5)


Service Provider: Date Prepared: Fiscal Year: Program:

Total Cost for the Customer Classes Description Program Residential I Commercial I Other

j Allocation Percentage (2) 100%

Total P o Form C )

(2) Other costs are allocated among customer classes in the same manner as are General O&M costs (Form 14, Part 5).

I Total Indirect Costs 1 For the Program

Direct Costs (from Form C ) Program I Residen tial I Commercial I Other

2 Direct Costs I I I I I (From Form C, Line 13)

3 YO of Direct Costs by Customer Class (calculated using data on Line 2)

Indirect Cost for the Program Multiplied by

(Line 1 multiplied by Line 3) (to Form C ) (to Form C) (to Form C ) 4 the Customer Class Direct Cost YO

Texas Natural Resource Conservation Commission MuniciDal Solid Waste - Full Cost Accounting Workbook

~ ~~


Isenice Provider: I

I Program: I

(Other Revenue for the Program is taken directly from Form C, Lines 15-20, Column A)

I hscriotion Total Revenue for the Customer Classes (3) I Program Residential I Commercial I Other

I I I I

Total (To Form c>I I I I I

(3) These revenues should be directly assigned where possible. If they cannot be directly assigned, they should be allocated among customer classes based on a composite of the direct costs associated with each customer class (Form C, Line 13).

VI. GLOSSARY

The following terms are used in the workbook:

1.

2.

3.

4.

5.

6.

7.

8.

Accrual Basis: Follows the revenue realization principle that revenue is recorded when earned, and uses the matching principle to indicate that expenses may be incurred and matched against revenue even though no cash outflow has occurred.

Allocated Costs: Those costs which are allocated based on a composite of the direct costs as identified in the workbook.

Customer Charge: A fee, typically monthly, which is charged to solid waste customers for the provision of particular solid waste services (e.g. collection and disposal, recycling, yard waste collection, etc.)

Directly Assignable Costs: Those costs which can be directly associated with a paflicular program, or which are allocated based on a professional standard or educated estimate.

Modified Cash Basis: The modified cash basis recognizes debt service and cash capital outlays instead of depreciation expense to recover capital costs. Predevelopment costs and closure and post-closure care costs are recognized over the life of the landfill versus being recognized only when cash is expended.

Solid Waste Program (or Service): A specific solid waste activity that utilizes a particular set of equipment, facilities, labor or other resources to provide a specific service. Examples of solid waste programs include collection, disposal, recycling, yard waste and household hazardous waste. ("Solid Waste Program" and "Solid Waste Service" are used interchangeably throughout the workbook.)

Solid Waste Utility: Refers to the city's solid waste organization. This may be a department or division within the city; however, for purposes of the workbook it is defined as the "Solid Waste Utility."

Tipping Fee: A fee for disposing of solid waste at a landfill, transfer station or material recovery facility. The fee is usually stated in dollars per ton or dollars per cubic yard.

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VII. ADDENDUM

Daily Truck Weight/Volume Record

This form is to be used at each facility (e.g. landfill, transfer station, material recovery facility, etc.) operated by the crty. A new form should be used each day in order to track the daily activity at the ctty's transfer station(s), landfill or material recovery facility.

Note: If the city records waste collected at its transfer station using this "Daily Truck Weight/Volume Record," and also records that same waste at its landfill using a separate "Daily Truck Weight/Volume Record," the city must make sure the data is not double-counted when compiling these daily reports into the monthly summary report (Form 12). This would resutt in an over statement of the waste actually disposed of by the city.

Data to be entered on the form is as follows:

. a Service Provider: Name of city, government agency or priiate operator completing the workbook.

a Date: Date trucks deliver the materials.

a Site: Location of the facility receiving the solid waste or recyclable materials.

0 Truck Identification: Hauler, truck number or other identification.

a Time: Time of delivery.

a Source:

Program Category: The program that generated the solid waste or recyclable materials.

Outside Source: Used to identify solid waste delivered from outside the municipalrty.

0 Waste Type: Type of waste or recyclable materials.

a Weight In: Scale weight as vehicle enters site.

a Weight Out: Scale weight as vehicle leaves site.

a Net Weight Delivered: The net weight of waste delivered.

a Totals: The column total for tons of materials delivered.

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ervice Provider: I kite: I late: I

I I I I

I I I I

+ Weight Weight Net Weight

In out Delivered (2)

HH Residential Solid Waste T Tires

R Recyclables - CP Composting -

- c Commercial Solid Waste Y Yard Waste

!) If materials are not weighed, enter the estimated volume of each truck in this column.

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