Orange County NC Website
Browse       Search
30 <br /> Orange County, NC <br /> Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS <br /> 2. 1 .8 Model Results <br /> Exhibit 12 shows the Modeled Budgetary Gap for Scenario 1 and the break-even Program Fees <br /> for Scenario 2 for FY 2016-17 to FY 2020-21, all of which reflect a continuance of the General <br /> Fund contribution. In addition to developing the Test Year revenue requirements, SCS forecasted <br /> the annual revenue requirement for FY 2016-17 to FY 2020-21 based on the projected annual <br /> expenses. The assumptions used to develop the forecast for Fund reserves and expenses are <br /> presented in Appendix C. These forecasted revenues and expenses were utilized with the Rate <br /> Model to calculate the Fund's potential annual net revenue/deficit or break-even Program Fee, <br /> depending on the scenario. Note that the Program Fee was back-calculated using an optimization <br /> algorithm. Complete financial model results highlighting the Fund's projected annual net <br /> revenue/deficits are presented in Appendix F. <br /> Exhibit 12. Scenario Modeling Results — Projected Fund <br /> Budgetary Gap <br /> Scenario FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 <br /> 1 — Status Quo Budgetary <br /> Gap with $107 Program ($1,780,040) ($2,015,497) ($2,064,603) ($2,345,290) ($2,593,011) <br /> Fee <br /> 2— Break Even Program <br /> Fee with $0 Budgetary $137 $140 $141 $145 $148 <br /> Gap <br /> Note: Negative values indicate a projected gap. <br /> 2. 1 .9 Division Budgetary Leveling <br /> SCS developed a methodology to present the net revenue and expense output by the Model as if <br /> the Program Fee contribution in the various Scenarios were disbursed across all four Department <br /> Divisions, rather than solely through the Environmental Services Division. Allocations to the <br /> respective Department Divisions were made proportionally based on the expenses of those <br /> divisions and were calculated with the net output of the Model. This "Division Budgetary <br /> Leveling" should be considered for clarity and reference purposes only and is not a financial <br /> recommendation. <br /> 20 <br />