2020 Solid Waste Rates Presentation to Regional Waste Advisory - - PowerPoint PPT Presentation

July 2020

Presentation to Regional Waste Advisory Committee

2020 Solid Waste Rates

When are rates typically adjusted?

.90¢/ton increase to the Excise Tax

JAN DEC

JUL

2

OCT Recommend $8.85/ton increase to the Tip Charge $107.20/ton $98.35/ton $97.45/ton

Why no rate increase in July?

? Unclear what impact COVID was having on tonnage Tonnage appeared to be in a steep decline Did not want to raise costs with economic uncertainty Tonnage appears to have shifted to residential

3

Budget reduction impacts?

?

4

• Budget reductions taken in FY19-20 and FY20-21 did not have

significant impact on rates but did reduce pressure on rate increase

• Primary impact on rates was pushing out rate increases necessary

to cover debt service to finance future capital improvements

• Originally, anticipated issuing bonds in FY21 – now deferred
• Fewer tons (new forecast coming)

What do rates cover each year?

PUBLIC OPERATIONS

staff & major contracts

$45M

REGIONAL PROGRAMS

Programs, grants, partnerships & projects

GENERAL GOVERNMENT

excise tax

$36M $18M $99M

TOTAL

5

Rate components and charges

Metro customers All ratepayers (disposed tonnage) All transfer station (incoming tons)

1 2 3

• Transaction charges
• Tonnage charges
• Regional system fee
• Excise tax
• DEQ fees
• Enhancement (host) fees

6

Solid waste fund reserve balance

$53M as of July 1, 2020

Restricted funds

• Landfill closure = $5.6M
• Pollution remediation (GASB 49) = $5M

Assigned reserves

• Capital reserves = $6M
• Renewal & Replacement = $5M
• Rate stabilization = $3M
• Operating reserves = $11M

$36M as of July 1, 2021

7

Rate increase components recommended

Tonnage fees Transaction fees

1 2

Regional system fees

8

Rate components

Tonnage fees include

1

• Charge on each ton of waste
• Covers operation of:

‐ Transfer stations ($16M) ‐ Disposal ($9M) ‐ Transport/fuel ($13M) ‐ Organics/compost ($3M)

• Increased cost of running Metro South of $4M annually

9

Rate increase components recommended

Tonnage charge/fees recommended increases

1

• $64.41 to $69.51/ton (increase of $5.10/ton)
• Metro customer charge
• Private transfer stations likely to follow suit

10

Rate components

Regional system fee includes

2

• Charge on every ton of solid waste disposed
• Paid by ratepayer/customers at all facilities
• Remitted to Metro by transfer station, MRFs, landfills,

generators and all persons disposing of waste in a landfill

• Used to fund regional solid waste programs

11

Rate increase components recommended

Regional system fee recommended increases

2

• Increase of $3.75/ton from $18.58 to $22.33/ton
• Charge on all disposed tons
• Reflect program costs in approved FY20-21 budget

12

Other charges: transaction fees

Transaction fee recommended increase

• Reflect actual costs
• 5% increase in self-haul customers
• Traffic control/load checks (asbestos)
• Automatic scale from $2 to $2.50 a transaction
• Staffed scale from $10 to $13 a transaction

13

Other charges: transaction fees

Transaction fees include

• Charged on each customer transaction at Metro TS
• Commercial customers = automated scale ($2)
• All other customers = staffed scale ($10)

14

Proposed minimum load charge increase

Current minimum load charge of

$28

Proposed minimum load charge of

$32

Increase of $4

15

What won’t increase?

• Excise tax (automatic 0.90 cent increase in July)
• DEQ fees ($1.89/ton)
• Enhancement fees ($1.00/ton)

16

What does this all mean ?

Current Increase Proposed Tonnage fee $64.41 $5.10 $69.51 Regional system fee $18.58 $3.75 $22.33 Excise tax $12.47 NA $12.47 DEQ fee $1.89 NA $1.89 Enhancement (host) fee $1.00 NA $1.00 TOTAL TIP FEE $98.75 $8.85 $107.20 (9%)

Other charges

Current Increase Proposed Transaction fee (automated) $2 $ .50 $2.50 Transaction fee (scalehouse) $10 $3.00 $13.00 Minimum charge $28 $4.00 $32.00

Tip fee impact on curbside rates

$32.55

a month

+ $0.57 $33.12

proposed increase new monthly billing

1.7%

increase

=

19

Tonnage charge covers new costs

$1M increase for traffic control at MSS $500K new green fuel program $4M increase to Recology contract at MSS (Operational cost increases and fewer tons)

20

Regional system fee covers

$3M I&I grant program $9M capital to buy future facility sites $4M capital for food processing equipment at Metro Central $2M in grants/partnerships, staff, and Regional Waste Plan

21

Other rate related issues to consider

• Tonnage allocations
• Mid-year adjustment for Metro to retain 40% of wet tons
• Goals-based allocation development/implementation in 2021
• Rate transparency
• Next step is 3rd party audit of private transfer stations
• Recommend no audit at private transfer stations if the stay at or below public

station rates

• New solid waste facilities
• Cornelius land purchase in 2020
• Clackamas County land purchase in 2021
• RFP for design and build of facilities in FY21-22

22