Laserfiche WebLink
i <br />RATE ANALYSIS <br />Table 1 illustrates the cost per resident per month for public and <br />private collection, and compares the resulting expenditures to <br />revenues using the current rate, as well as the rate required to <br />break even. As shown, using current revenues, City collection <br />results in a deficit of $406,080, with rate increase of $4.23 <br />needed to fully fund the operation without general fund revenues. <br />This results in a break-even rate of $11.73 per household per <br />month. <br />TABLE 1 <br />CURRENT REVENUE CURRENT BREAK-EVEN <br />ACTUAL COST REVENUE SHORTAGE RATE RATE <br />PUBLIC $1,125,988 $720,000 ($406,080) $7.50 $11.73 <br />PRIVATE $1,140,480 $720,000 ($420,480) $7.50 $11.88 <br />The same comparison using private collection results in a deficit <br />of $420, 480, with a rate increase of $4.38 needed to fully fund the <br />operation without general fund revenues. This results in a break- <br />even rate of $11.88 per household per month. <br />It should be noted that private collection and disposal contract <br />typically have an indexed price increase, adjusted yearly. This <br />will require yearly rate adjustments. By contrast, public <br />collection and disposal costs are controlled, through the budget <br />process, by the City. An examination of past budgets reveals <br />increases well below the Consumer Price Index, with the current <br />request 2.5% less than the previous year. <br />