SWAG agenda 110316 - Laserfiche WebLink

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Orange County, NC Financial Plan & Rate Study for Solid Waste Enterprise Fund Year was used as the basis for forecasting expenses for the 5 -year forecast (FY 2016- 17 to FY 2020 -21). • Develop Revenue Requirement Projection — After developing the revenue requirement for the Test Year, SCS worked with County staff to project changes in anticipated costs due to inflation, labor increases, facility and vehicle maintenance, planning costs, etc. This resulted in a 5 -year revenue requirement forecast for the entire sanitation program including collection, recycling, disposal of solid waste, public education, etc. • Revenue Offsets — SCS worked with County staff to identify revenue sources and develop estimates for the sale of recyclables, C &D permit revenues, C &D tipping fees, mulch and compost sales, LFG recovery, etc. • Determination of the Number of Customer Units — SCS worked with County staff to develop reasonable estimates of future number of customers over the next 5 -year period. • Calculation of the Annual County Solid Waste Programs Assessed Fee — SCS distributed the revenue needs across the four Divisions to estimate the cost of service and calculate the annual Program Fee needed to balance the budget. Appendices D and E identify projected revenues and expenses, respectively, by service area used in the Model for the Department for FY 2016 -17 through FY 2020 -21. 2.1.7 Model Scenarios SCS developed two Rate Model scenarios to evaluate impacts to the Enterprise Fund financial situation over the 5 -year planning period. Depending on the individual scenario, the Model assesses net revenue needs if the Program Fee, other revenues, and operating costs equal those in the Budget for FY 2016 -17 with inflation factors applied, known capital items accounted for, and other adjustments made to specific line items as detailed in Appendix C: • Scenario 1 — Scenario 1 assumes status quo for the Department Solid Waste Program Fee ($107 per year). This scenario is intended to be used as a baseline or "Status Quo" scenario to enable comparison with Scenario 2. • Scenario 2 — This scenario serves as an assessment of the required increase in the Program Fee to balance projected operating expenses and revenues for solid waste and recycling services. Scenario 2 assumes the Program Fee balances the Fund's annual budget if other revenues and operating costs equal those projected in the Budget for FY 2016 -17, dependent on the sub - scenario. This iteration serves as a "break- even" analysis. EM