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SOUTH BEND (INDIANA) SOLID WASTE
<br />CALCULATION OF PROPOSED TRASH FEES
<br />2015 2016
<br />Budgeted operating expenses (pages 7 - 8)
<br />$5,119,097
<br />$5,272,670 (4)
<br />Less: Recycling budgeted expenses (page 7)
<br />(745,088)
<br />(767,441)
<br />Plus: Additional container purchase cost (1)
<br />-
<br />53,800
<br />Annual lease payments (2)
<br />754,519
<br />905,232
<br />Total customers ** 6,000
<br />Estimated Annual Revenue Requirements
<br />5,128,528
<br />5,464,261
<br />Less: Test year special pickups revenue (page 4)
<br />(35,760)
<br />(35,760)
<br />Less: Estimated miscellaneous service revenues (3)
<br />(182,172)
<br />(277,276)
<br />Less: Test year interest income (page 4)
<br />(2,279)
<br />(2,279)
<br />Less: Budgeted code enforcement reimbursement (per 2015 budget)
<br />(488,473)
<br />(488,473)
<br />Estimated Net Annual Revenue Requirements
<br />4,419,844
<br />4,660,473
<br />Divided by calculated EU's (page 13) 373,938 374,801
<br />Calculated Annual Fee per EU (current $10.56) $11.82 $12.43
<br />Shortfall in Revenues @ Target Residential Rate $112,200 * ($18,700)
<br />Rate Per Residential (current $10.56) $11.52 $12.48
<br />$ Increase $0.96 $0.96
<br />%Increase 9.1% 8.3%
<br />(1) Assumes cost of $250,000 spread over 5 years at 2.5% interest rate
<br />(2) See page 11.
<br />(3) Calculated as follows: 2015
<br />2016
<br />Additional containers:
<br />Annual customers 13,156
<br />13,156
<br />Times: Monthly charge $6.55
<br />$7.09
<br />Subtotal $86,172
<br />$93,276
<br />Yard waste bins:
<br />Total customers ** 6,000
<br />11,500
<br />Times: Annual charge $16.00
<br />$16.00
<br />Subtotal $96,000
<br />$184,000
<br />Total $182,172
<br />$277,276
<br />(4) Assumes a 3% increase in operating costs.
<br />* With a May 1, 2015 rate implementation the estimated 2015 shortfall will be approximately $260,000.
<br />** Per utility management, current yard waste bin customers are approximately 6,000 and it is anticipated if the City
<br />chose to implement
<br />a container only yard waste system an additional 5,000 -6,000 customers would be added.
<br />(See Accountants' Report)
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