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Home My WebLink About164-25 RESOLUTION Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 164-25 File Number: 2025-1132 A RESOLUTION TO ACCEPT AND ADOPT THE 2025 RECYCLING AND TRASH COLLECTION RATE STUDY WHEREAS, on August 20, 2024, the City passed Resolution 213-24 authorizing a contract with Raftelis Financial Consultants, pursuant to RFP 24-08, to conduct a Recycling and Trash Collection Rate Study which includes a ten-year financial plan and a proposed five-year rate schedule of solid waste rates. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby accepts and adopts the Recycling & Trash Collection Rate Study, a copy of which is attached to this Resolution. PASSED and APPROVED on July 15, 2025 Approved: _______________________________ Molly Rawn, Mayor Attest: _______________________________ Kara Paxton, City Clerk Treasurer Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2025-1132 MEETING OF JULY 15, 2025 TO: Mayor Rawn and City Council THRU: Keith Macedo, Chief of Staff FROM: Peter Nierengarten, Environmental Director SUBJECT: Recycling and Trash Division 2025 Rate Study Adoption RECOMMENDATION: Staff recommends approval of a resolution adopting the 2025 Recycling and Trash Collection Rate Study prepared by Raftelis Consulting, pursuant to RFP 24-08. BACKGROUND: The City of Fayetteville Recycling and Trash Collections Division (RTC) provides solid waste and recycling collection services to City residents and businesses. All materials are delivered to the City-owned and RTC- operated transfer and recycling center. The City has the exclusive rights to solid waste and recyclables generated within the City limits, but franchises to private haulers to provide some roll-off services. RTC operates through an enterprise fund with revenues derived from fees levied for trash collection, recycling and compost revenues, and container sales and leases. In 2024, RTC operations had a cost of $17,380,544 and revenue generation of $17,187,599. The City has operated a Pay-As-You-Throw residential trash collection program since 2003. Residents can choose from three trash cart sizes and pay less for smaller cart sizes. Recyclables are collected curbside in 18-gallon bins and manually sorted at the curb into multiple compartment trucks. This service is available to mostly single-family residential developments and some small commercial businesses. The City services a few multifamily residential developments with large, partitioned recycling roll-off containers at the largest apartment complexes with >100 units. However, the majority of the approximately 21,000 multifamily units are not able to receive recycling services due to limitations of the City’s current programs. Developing an on-site recycling program to service these households is critical to being able to increase the community’s waste diversion rate, which has remained stuck at 20% for over a decade. The City also operates two recycling drop-off centers and five food waste drop-offs where residents can bring recyclables and organics. In 2024, the City processed 6,423 tons of materials (cardboard, mixed paper, aluminum cans, steel cans, 1 and #2 plastic bottles and glass). Additionally, the City collected 8,672 tons of food and yard waste for composting. The City’s current recycling programs include the following services offered to residents and businesses: • Curb Sort Recycling – This program primarily serves single-family housing units and RTC staff sort the 7 permitted materials by hand at the curb. This program currently accounts for 43% of the RTC’s recycling collections and has a low contamination rate of ~1%. However, compared to other community curbside recycling programs, it has a low participation rate of between 30-40%. • Apartment Recycling - This Program serves large apartment complexes that have adequate parking Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov space for a large “battleship” container. RTC currently has 10 containers in apartment complexes. Residents sort recyclables and dispose of them in the appropriate container. This program has a higher rate of contamination (12%) and it accounts for ~1% of the total recyclable materials collected by RTC. • Commercial Recycling - Commercial customers can recycle glass, paper and cardboard. This program sees moderate levels of contamination and accounts for 37% of the overall recyclables collected by RTC. • Recycling Drop-offs are available at two locations and account for 19% of overall collections. 2025 Recycling and Trash Collection Rate Study: In August 2024, the City contracted with Raftelis Financial Consultants to conduct a Recycling and Trash Collection Rate Study (Study) which includes a ten-year financial plan and a proposed five-year rate schedule of solid waste rates. In recent years, inflation has significantly increased, impacting existing operating and infrastructure costs. Factors such as rising fuel prices, increases in labor expenses, collection, and disposal costs have necessitated reassessing the revenue sufficiency of the Division. The City’s last solid waste rate study occurred in Fiscal Year 2018 with recommendations through Fiscal Year 2023. It is important to note that while the City has a Consumer Price Index (CPI) escalation, that rate has not kept pace with inflation and the costs of changing operations. Increasing operational costs are primarily driven by labor costs, employee turnover, and injury costs. DISCUSSION: The study evaluated three recycling operational scenarios in addition to their current recycling operations for rate-setting purposes. The proposed operational changes were evaluated based on their potential to enhance overall program performance, safety, and long-term fiscal sustainability, relative to their financial impact on the system. 1. Status Quo: Current Curb-sort Recycling 2. Scenario 1: Dual Stream Cart-based Recycling 3. Scenario 2: All-in-one Cart-based Recycling - Weekly 4. Scenario 3: All-in-one Cart-based Recycling – Every Other Week BUDGET/STAFF IMPACT: N/A ATTACHMENTS: 3. Staff Review Form, 4. Fayetteville_SW_Report_Draft 2_With Appendices, 5. Fayetteville Solid Waste - Presentation Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2025-1132 A RESOLUTION TO ACCEPT AND ADOPT THE 2025 RECYCLING AND TRASH COLLECTION RATE STUDY WHEREAS, on August 20, 2024, the City passed Resolution 213-24 authorizing a contract with Raftelis Financial Consultants, pursuant to RFP 24-08, to conduct a Recycling and Trash Collection Rate Study which includes a ten-year financial plan and a proposed five-year rate schedule of solid waste rates. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby accepts and adopts the Recycling & Trash Collection Rate Study, a copy of which is attached to this Resolution. Comments: Purchase Order Number: Change Order Number: Previous Ordinance or Resolution # Approval Date: Original Contract Number: Project Number Budget Impact: FundAccount Number Project Title City of Fayetteville Staff Review Form 2025-1132 Item ID 7/15/2024 City Council Meeting Date - Agenda Item Only Approval of a resolution adopting the 2025 Recycling and Trash Collection Rate Study. N/A for Non-Agenda Item Action Recommendation: Submitted By Leif Olson SUSTAINABILITY/RESILIENCE (631) Division / Department 6/26/2025 Submitted Date No -$ -$ V20221130 Budgeted Item? Does item have a direct cost? Is a Budget Adjustment attached? Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget -$ -$ No No -$ -$ CITY OF FAYETTEVILLE Recycling and Trash Collection Rate Study REPORT / June 24, 2025 Image credit: Image credit: https://www.fayetteville-ar.gov/3160/About-Fayetteville THIS PAGE INTENTIONALLY LEFT BLANK 341 N. Maitland Avenue, Suite 300, Maitland, FL 32751 www.raftelis.com June 24, 2025 Mr. Peter Nierengarten, PE Environmental Director Sustainability Department 125 W Mountain Street Fayetteville, AR 72701 Subject: 2025 Recycling and Trash Collection Rate Study Dear Mr. Nierengarten: Raftelis Financial Consultants, Inc. (Raftelis) has completed for your consideration, our analysis of the City of Fayetteville (City) Recycling and Trash Collection Division (Division) revenue sufficiency study (Study). The Study review period encompassed the Fiscal Year 2025 (current budget year) through 2034 (collectively, the “Forecast Period”) with the account period from January 1 through December 31 being the “Fiscal Year”. The purpose of the Study was to:  To evaluate and recommend operational improvements to the collection system  Develop and recommend that fairly recover costs while supporting the financial sustainability of the enterprise fund. The Study is based on information provided by City staff including, but not limited to, the number of properties charged for collection services, historical waste deliveries, historical financial operating results, budgetary information, capital plans, fixed asset information, and other financial and statistical information. While Raftelis relied upon the information provided by City staff, care and due diligence measures were taken where practical to validate information for purposes of financial planning such as but not limited to: i) interviews with staff concerning questions related to data interpretation; ii) data testing such as revenue testing reported customer accounts; iii) trend analysis; and iv) other analytical procedures as needed. Following this letter, we have detailed our findings, observations, and recommendations in greater detail for your consideration. It has been a pleasure working with you and we thank you and the City staff for the support provided during the course of this study. Sincerely, Thierry A. Boveri, CGFM Sarah Neely Vice President Senior Consultant City of Fayetteville / Trash Collection Rate Study Table of Contents 1. Executive Summary ..................................................................... 8 1.1. Background ................................................................................................................... 8 1.2. Methodology ................................................................................................................ 10 1.3. Key Assumptions ........................................................................................................ 10 1.4. Recycling Operations Scenarios ............................................................................... 11 1.5. Solid Waste Financial Plan – Status Quo .................................................................. 12 1.6. Proposed Solid Waste Financial Plan – Scenario 2 ................................................. 14 1.7. Proposed Solid Waste Rates ...................................................................................... 17 1.8. Monthly Residential Bill Comparison ........................................................................ 20 2. Methodology ............................................................................... 21 3. Key Inputs and Assumptions ..................................................... 23 3.1. Current Rates and Operations ................................................................................... 23 3.2. Customer Statistics .................................................................................................... 25 3.2.1. Customer Accounts ...................................................................................................... 25 3.2.2. Waste Generation ........................................................................................................ 27 3.3. Revenues ..................................................................................................................... 27 3.3.1. Other Revenues ........................................................................................................... 30 3.4. Expenditures ............................................................................................................... 32 3.4.1. Operating Expenses .................................................................................................... 32 3.4.2. Escalation Factors ....................................................................................................... 34 3.4.3. Capital Expenditures .................................................................................................... 34 3.4.4. Existing and Proposed Debt Service............................................................................ 35 3.4.5. Minimum Cash Reserve Targets .................................................................................. 35 3.5. Recycling Scenarios ................................................................................................... 36 4. Solid Waste Financial Plan ......................................................... 40 4.1. Proposed Financial Plan and Revenue Adjustments ............................................... 40 5. Cost of Service ........................................................................... 43 6. Proposed Solid Waste Rates and Charges ................................ 44 6.1. Proposed 5-Year Solid Waste Rate Schedule ........................................................... 44 City of Fayetteville / Trash Collection Rate Study 7. Solid Waste Fee Comparison ..................................................... 47 7.1. Monthly Residential Bill Comparison ........................................................................ 47 City of Fayetteville / Trash Collection Rate Study List of Tables Table 1-1: Recycling Scenario Operational and Financial Comparison .................................................... 11 Table 1-2: Solid Waste Revenue Adjustments (Status Quo) .................................................................... 12 Table 1-3: Proposed Solid Waste Revenue Adjustments (S2: All-in-one Weekly Collection) ................... 14 Table 1-4: Proposed Five-Year Solid Waste Monthly Rate Schedule - Carts ........................................... 17 Table 1-5: Proposed Five-Year Solid Waste Rate Schedule - Dumpsters ................................................ 18 Table 3-1: Current Residential Solid Waste Rate Structure ...................................................................... 23 Table 3-2: Current Commercial Solid Waste Rate Structure .................................................................... 24 Table 3-3: Projected Residential Customer Statistics ............................................................................... 25 Table 3-4: Projected Commercial Customer Statistics .............................................................................. 26 Table 3-5: Projected Waste Generation .................................................................................................... 27 Table 3-6: Projected Cart Collection Revenues Under Current Rates (in thousands) .............................. 28 Table 3-7: Projected Collection Revenues Under Current Rates (in thousands) ...................................... 29 Table 3-8: Other Operating Revenues (in thousands) .............................................................................. 31 Table 3-9: Operating Expense Projection by Cost Center ........................................................................ 33 Table 3-10: Inflationary Assumptions ........................................................................................................ 34 Table 3-11: Capital Improvement Plan...................................................................................................... 34 Table 3-12: Reserve Targets .................................................................................................................... 35 Table 3-13: Recycling Scenario Operational and Financial Comparison .................................................. 38 Table 4-1: Proposed Solid Waste Revenue Adjustments (S2: All-in-one Weekly Collection) ................... 40 Table 5-1: Proposed 5-Year Cart-Based Solid Waste Rate Schedule ...................................................... 44 Table 5-2: Proposed 5-Year Non-Residential Solid Waste Rate Schedule .............................................. 45 List of Figures Figure 1-1: Historical Bill Comparison for Average 64-gallon Residential Customer .................................. 9 Figure 1-2: Solid Waste Financial Plan (Status Quo)................................................................................ 13 Figure 1-3: Solid Waste Financial Plan: Cash Reserves (Status Quo) ..................................................... 14 Figure 1-4: Proposed Solid Waste Financial Plan (S2: All-in-one Weekly Collection) .............................. 15 Figure 1-5: Proposed Solid Waste Financial Plan: Cash Reserves (S2: All-in-one Weekly Collection) ............................................................................................................................................... 16 Figure 1-6: Monthly Residential Fee Comparison Based on 64 gallon ..................................................... 20 City of Fayetteville / Trash Collection Rate Study Figure 3-1 Operating Expense by Type of Cost ........................................................................................ 32 Figure 3-2: Residential Waste Composition .............................................................................................. 36 Figure 3-3: Recycling Options Analysis .................................................................................................... 37 Figure 4-1: Proposed Solid Waste Financial Plan (S2: All-in-one Weekly Collection) .............................. 41 Figure 4-2: Solid Waste Financial Plan: Cash Reserves (S2: All-in-one Weekly Collection) .................... 42 Figure 6-1: Monthly Residential Fee Comparison ..................................................................................... 47 List of Appendices Appendix A: Solid Waste Cash Flow Appendix B: Operating Expense Projections Appendix C: Capital Improvement Plan City of Fayetteville / Trash Collection Rate Study 8 1. Executive Summary 1.1. Background The Fayetteville Recycling and Trash Collections Division operates and is established as an enterprise fund. As such, the enterprise fund must have revenues equal to the cost of services provided by the system and the City must establish rates sufficient to cover the cost of operating, maintaining, repairing and financing the system. According to the Governmental Accounting Standards Board: “Enterprise Funds should be used to account for operations that are financed and operated in a manner similar to private business enterprises – where the intent of the governing body is that costs of providing services to the general public on a continuing basis be financed or recovered primarily through user charges.” In August 2024 the City of Fayetteville (City) contracted with Raftelis Financial Consultants (Raftelis) to conduct a Recycling and Trash Collection Rate Study (Study) which includes a ten-year financial plan and proposed five-year rate schedule of the solid waste rates. This report presents the financial plans and the resulting solid waste rates. In recent years, inflation has significantly increased impacting existing operating and infrastructure costs. Factors such as rising fuel prices, increases in labor expenses, collection, and disposal costs have contributed to reassessing the revenue sufficiency for the Division. The City’s last solid waste rate study occurred in Fiscal Year 2018 with recommendations through Fiscal Year 2023. It is important to note that while the City has a Consumer Price Index (CPI) escalation, that rates have not kept pace with inflation and the costs of changing operations. Highlighted in the figure below, we notice this difference in how the rates that have been in effect have been outpaced by the Garbage and Trash Index over the last several years. (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 9 Figure 1-1: Historical Bill Comparison for Average 64-gallon Residential Customer The City’s Sustainability Department through the Recycling and Trash Collection Division (Division) provides trash collection service and recycling collection to a population of over 29,400 customers in the City. These collection services are managed by the Division which are funded through service charges billed monthly to customers based on their level of service. Residential customers and commercial customers have the flexibility to choose their level of service based on their individual needs. This choice includes options such as the size of trash carts, additional trash carts, extra one-time pickups, bulky waste collection, recycling, food waste and yard waste collection. The City also provides disposal services through their transfer station and composting sites. On an annual basis, the City generates over 76,100 refuse tons. Additionally, the City generates approximately over 6,000 recycling tons annually. The City offers waste collection services tailored to meet the needs of both residential and commercial customers. For residents, the base level of service includes options for one-32, 64, or 96-gallon cart for weekly refuse collection. Additionally, the base level of service includes weekly curb-sort recycling 2-18-gallon bins, and yard waste, and every other week food waste collection as a pilot program. Any additional yard waste or bulky waste collection required will incur an additional charge. Commercial customers have a variety of different levels of service for refuse and recycling collection, ranging from two to eight cubic yard dumpsters and compactors with pickups ranging from one to six times a week, drop box collection from 20-40 cubic yard $18.94 City of Fayetteville / Trash Collection Rate Study 10 dumpsters and compactors and cart service for glass recycling and food waste collection. To facilitate these collection services, the City operates and maintains its own fleet through an Internal Fleet Fund. The Division works with the City’s Fleet Department that oversees the procurement and upkeep of vehicles for various trash collection services. Presently, the City’s fleet comprises of 27 residential trucks to service 90 routes with 38 full-time employees (FTEs) and 14 commercial trucks to service 53 routes per week with 12 FTEs. 1.2. Methodology The foundation of the Study and the primary objective of the solid waste rates are to reasonably recover the cost of providing service, cost of infrastructure investment and compliance with covenants of internal fiscal targets (referred to as the "Revenue Sufficiency" evaluation). In order to address the sustainability of the City’s charges for service, Raftelis developed a solid waste financial plan for the City which set forth the total revenue adjustments needed to meet capital investment, operational expenses, and cash reserves needs during the five-year rate-setting period. Raftelis worked with City staff to refine inputs and provide scenarios of revenue adjustments for the City consideration. A key component of the plan was a projection of the Net Revenue Requirements from rates, which equates to the expenditure requirements funded from monthly user charges. An illustration of the components that make up the Net Revenue Requirements is summarized below: + Cost of Operation and Maintenance + Indirect Cost Allocations + Capital & Fleet Funding Requirements + Deposits to Reserves for Policy Compliance and Future Expenditures – Other Operating Revenue – Interest Income / Transfers from Operating Reserves = Net Revenue Requirements (Funded from Rates) Performing a thorough evaluation of the City’s funding requirements allows us to provide sound-rate recommendations to help ensure the City has sufficient resources to fund operations and achieve their objectives. 1.3. Key Assumptions Raftelis developed the solid waste financial model in Microsoft Excel to project financial and rate calculations over a 10-year study previously defined as the Forecast Period. All assumptions were discussed with and reviewed by City staff. This report will detail all the assumptions developed in support of the financial plan, however below details some of the key assumptions Gross Revenues Gross Revenue Requirements City of Fayetteville / Trash Collection Rate Study 11  The City’s fiscal year spans from January 1 through December 31.  Customer growth was assumed on average at 2% throughout the forecast year  Projections in future years were generally made based on the budgeted Fiscal Year 2025 data using a range of escalation factors from 4%-7% o Expenses were based on the Fiscal Year 2025 budget and escalated for inflation and changes in operations o Revenues were based on billing statistics and reported financials and were escalated for growth and rate adjustments  The forecast targets a 120-day operating reserve balance by the end of the Forecast Period 1.4. Recycling Operations Scenarios Through the Study, the Division looked to evaluate three recycling operational scenarios in addition to their current recycling operations for rate setting purposes. The proposed operational changes were evaluated based on their potential to enhance overall program performance, safety, and long-term fiscal sustainability, relative to their financial impact on the system. 1. Status Quo: Current Curb-sort Recycling 2. Scenario 1: Dual Stream Cart-based Recycling 3. Scenario 2: All-in-one Cart-based Recycling - Weekly 4. Scenario 3: All-in-one Cart-based Recycling – Every Other Week The table below breaks down the impact of each of the scenarios, by tons, trucks, the customers per route, and the costs associated. Table 1-1: Recycling Scenario Operational and Financial Comparison Tons Recycled Trucks Weekly Routes Households/ Route /Day Incremental Vehicles Costs (1) Incremental Cart Costs Operating Expenses Status Quo 2,534 12 50 465 n/a n/a $19,105,142 S1: Dual Stream Cart Recycling 3,727 8 30 776 $1,514,000 $3,540,522 $17,916,857 S2: All-in-one Cart Recycling 5,083 6 23 1,008 $418,750 $1,770,261 $17,663,957 S3: All-in-one Cart Recycling EOW 5,083 4 14 1,629 $0 $2,655,392 $17,184,665 (1) The City utilizes fleet replacement credit for vehicles through their Fleet Department and these values are reflective of the approximate costs after the use of the credit. (2) City of Fayetteville / Trash Collection Rate Study 12 More detail is provided in later sections in the report on each scenario and their impact to the City and its residents. 1.5. Solid Waste Financial Plan – Status Quo Based on the key assumptions of the Study we have determined that the existing rates for solid waste services under each scenario will not be adequate to generate sufficient revenues to fund the projected needs of the Division. For purposes of this section, the following figures and tables depict the forecast under Status Quo which is the continuation of current operations. Table 1-1 shows the necessary rate revenue adjustments for the Forecast Period and highlights the initial five-year study recommendation period under current operations. Implementation for the identified rate adjustments were assumed at the outset of each fiscal year, beginning on January 1. It is recommended that the need for any future identified rate revenue adjustments be reviewed in the Fiscal Year 2030 or in the event of a significant change in conditions during the recommendation period which would necessitate additional rate revenues (i.e., change in regulations, material increases in cost, change in operations, etc.). Table 1-2: Solid Waste Revenue Adjustments (Status Quo) Effective Date Assumed CPI Additional Status Quo January 1, 2026 4.50% 5.00% 9.50% January 1, 2027 4.50% 5.00% 9.50% January 1, 2028 4.50% 1.00% 5.50% January 1, 2029 4.50% 0.00% 4.50% January 1, 2030 4.50% 0.00% 4.50% Key factors influencing the need for identified revenue adjustments include:  As can be seen in Figure 1-1, solid waste rates have not kept pace with the Consumer Price Index (CPI) or Water and Sewer and Trash Collection Services Index (WS&T).  As shown in Figure 1-2, the Study indicates a funding deficiency to cover rate-funded capital improvements within the Fiscal Year 2026, which continues to grow through the forecast period.  The Division is looking to potentially change their recycling operations from a manual curb-sort to all- in-one cart-based recycling  The remainder of the necessary revenue increase is to address assumed inflation in operating expenses.  Addressing the Solid Waste Services funding deficiency, changes in operations, and inflation will provide adequate funding for operations, capital funding, and support deposits to reserves in outer years to help maintain compliance with internal minimum cash reserve targets. Figure 1-2 provides a breakdown of the projected revenue requirements of the Division. As can be seen from the gap analysis, the Division’s current period expenditure exceeds existing revenues, which only grows over time due to inflation in the cost of operations and the increased need for sufficient reserves. The rate revenues at existing rates is shown by the green line. Projected rate revenues with the status-quo rate adjustments is City of Fayetteville / Trash Collection Rate Study 13 shown by the dotted green line. Annual expenditures are shown by the dark blue columns. The bright blue bar represents transfers to reserves, and the pink bar represents capital funded through rates. Figure 1-2: Solid Waste Financial Plan (Status Quo) *Existing revenue includes assumed 4.5% CPI escalation increases City of Fayetteville / Trash Collection Rate Study 14 Figure 1-3: Solid Waste Financial Plan: Cash Reserves (Status Quo) Figure 1-3 shows projected operating cash balances (blue bars) at the end of each fiscal year over the Forecast Period relative to the City’s total reserve targets of 120-day operating reserves under the status quo financial plan. Reserves are drawn down in the first fiscal year to help cover annual operating costs, fund capital expenditures, and allow for the phase-in of annual rate revenue adjustments for the benefit of the rate payers. As can be seen, with the rate increases, the City does not meet the reserve target within the five-year rate setting window and is short approximately $1 million in reaching the target by FY 2030. 1.6. Proposed Solid Waste Financial Plan – Scenario 2 Through the development of the scenarios and financial plans with City Staff, it was determined that Scenario 2: All-in-one weekly recycling collection meets the operational objectives of the Division, while providing for a smaller bill overall impact to residents. The following tables and figures below show the proposed rate revenue adjustments for the Forecast Period and highlights the initial five-year study recommendation period. Table 1-3: Proposed Solid Waste Revenue Adjustments (S2: All-in-one Weekly Collection) Effective Date Rate Adj. January 1, 2026 9.50% January 1, 2027 7.50% January 1, 2028 3.50% January 1, 2029 3.50% January 1, 2030 3.50% City of Fayetteville / Trash Collection Rate Study 15 Key benefits of the proposal include:  Increased Recycling Diversion by expanding service to multi-family and commercial customers, potentially doubling recycling collection volumes;  Enhanced Driver Safety through the automation of collection processes, reducing manual handling and related risks;  Lower Operational Costs driven by automation, enabling route consolidation, fewer trucks on the road, and reduced labor hours;  Smaller Rate Adjustments as a result of cost savings, helping to minimize customer impact and maintain competitive rates compared to peer communities; and  Policy Compliance through improved operational performance, full funding of the capital plan, and achievement of minimum fiscal targets.  Contamination Management through the use of anti-contamination software on collection trucks Figure 1-4 provides a breakdown of the projected revenue requirements of the Division under Scenario 2. As can be seen from the gap analysis, as with Status Quo, the Division’s current period expenditure exceeds existing revenues, which only grows over time due to inflation in the cost of operations and the increased need for sufficient reserves. The rate revenues at existing rates is shown by the green line. Projected rate revenues with the proposed rate adjustments is shown by the dotted green line. Annual expenditures are shown by the dark blue columns. The bright blue bar represents transfers to the general fund, the yellow bar represents capital funded through rates, and the red bar represents deposits to cash reserves. Figure 1-4: Proposed Solid Waste Financial Plan (S2: All-in-one Weekly Collection) *Existing revenue includes assumed 4.5% CPI escalation increases City of Fayetteville / Trash Collection Rate Study 16 Figure 1-5: Proposed Solid Waste Financial Plan: Cash Reserves (S2: All-in-one Weekly Collection) Figure 1-3 shows projected operating cash balances (blue bars) at the end of each fiscal year over the Forecast Period relative to the City’s total reserve targets of 120-day operating reserves under the status quo financial plan. Reserves are drawn down in the first fiscal year to help cover annual operating costs, fund capital expenditures, and allow for the phase-in of annual rate revenue adjustments for the benefit of the rate payers. As can be seen, with the rate increases, the City meets the reserve target within the five-year rate setting window at Fiscal Year 2029. (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 17 1.7. Proposed Solid Waste Rates The proposed five-year solid waste rate schedule was developed based on the overall revenue adjustment needs of the System as discussed in further detail in Section 4 of this report. Error! Not a valid bookmark self-reference. and Table 1-4 below presents a summary of the proposed monthly rates for the Study. Table 1-4: Proposed Five-Year Solid Waste Monthly Rate Schedule - Carts Current Proposed Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Residential Inside City Residential Curbside Service - 32gal $12.40 $13.58 $14.60 $15.11 $15.64 $16.18 Residential Curbside Service - 64gal $18.94 $20.74 $22.29 $23.08 $23.88 $24.72 Residential Curbside Service - 96gal $26.89 $29.44 $31.65 $32.76 $33.91 $35.09 Outside City Residential Curbside Service - 32gal $18.58 $20.34 $21.87 $22.63 $23.42 $24.24 Residential Curbside Service - 64gal $28.36 $31.05 $33.38 $34.55 $35.76 $37.01 Residential Curbside Service - 96gal $40.25 $44.07 $47.37 $49.03 $50.75 $52.53 Commercial Inside City Commercial Curbside Service $24.21 $26.51 $28.50 $29.50 $30.53 $31.60 Food Waste Cart $20.47 $22.42 $24.10 $24.94 $25.82 $26.72 Recycling Cart $6.10 $6.68 $7.18 $7.43 $7.69 $7.96 Glass Cart $6.10 $6.68 $7.18 $7.43 $7.69 $7.96 Outside City Commercial Curbside Service $36.36 $39.81 $42.80 $44.30 $45.85 $47.45 (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 18 Table 1-5: Proposed Five-Year Solid Waste Rate Schedule - Dumpsters Current Proposed Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Shared Bin (Multi-Meter) Inside City Multi-Meter Dumpsters $11.84 $12.96 $13.94 $14.42 $14.93 $15.45 Outside City Multi-Meter Dumpsters $17.76 $19.45 $20.90 $21.64 $22.39 $23.18 Inside City Commercial Dumpsters Commercial Dumpster Pickup 2YD $57.86 $63.36 $68.11 $70.49 $72.96 $75.51 Commercial Dumpster Pickup 4YD $107.74 $117.98 $126.83 $131.27 $135.86 $140.62 Commercial Dumpster Pickup 6YD $140.09 $153.39 $164.90 $170.67 $176.64 $182.83 Commercial Dumpster Pickup 8YD $175.41 $192.07 $206.48 $213.71 $221.19 $228.93 Cardboard 4YD $26.93 $29.49 $31.70 $32.81 $33.95 $35.14 Cardboard 6YD $35.02 $38.35 $41.23 $42.67 $44.16 $45.71 Cardboard 8YD $43.86 $48.02 $51.62 $53.43 $55.30 $57.24 Food Waste Pilot 2 CY $43.40 $47.52 $51.09 $52.87 $54.72 $56.64 Food Waste Pilot 4 CY $80.80 $88.48 $95.12 $98.45 $101.89 $105.46 Compactors Compacted Trash 2YD $122.10 $133.70 $143.72 $148.75 $153.96 $159.35 Compacted Trash 4YD $244.22 $267.42 $287.48 $297.54 $307.95 $318.73 Compacted Trash 6YD $366.33 $401.13 $431.22 $446.31 $461.93 $478.10 Compacted Trash 8YD $488.43 $534.83 $574.94 $595.06 $615.89 $637.45 Compacted Cardboard 2YD $30.52 $33.42 $35.93 $37.19 $38.49 $39.84 Compacted Cardboard 4YD $61.05 $66.85 $71.86 $74.38 $76.98 $79.67 Compacted Cardboard 6YD $91.57 $100.27 $107.79 $111.57 $115.47 $119.51 Outside City Commercial Dumpsters Commercial Dumpster Pickup 2YD $86.79 $95.04 $102.16 $105.74 $109.44 $113.27 Commercial Dumpster Pickup 4YD $161.62 $176.97 $190.24 $196.90 $203.79 $210.92 Commercial Dumpster Pickup 6YD $210.13 $230.09 $247.35 $256.00 $264.96 $274.24 Commercial Dumpster Pickup 8YD $263.12 $288.11 $309.72 $320.56 $331.78 $343.39 Cardboard 4YD $40.47 $44.31 $47.64 $49.31 $51.03 $52.82 Cardboard 6YD $52.65 $57.65 $61.98 $64.14 $66.39 $68.71 Cardboard 8YD $65.93 $72.19 $77.60 $80.32 $83.13 $86.04 Commercial Bin Recycling $6.10 $6.68 $7.18 $7.43 $7.69 $7.96 Paper 4YD $26.93 $29.49 $31.70 $32.81 $33.95 $35.14 Table Continued on Following Page City of Fayetteville / Trash Collection Rate Study 19 Current Proposed Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Compactors Compacted Trash 4YD $348.89 $382.03 $410.68 $425.06 $439.93 $455.33 Compacted Trash 6YD $523.32 $573.04 $616.02 $637.58 $659.89 $682.99 Compacted Cardboard 4YD $87.21 $95.50 $102.66 $106.25 $109.97 $113.82 Compacted Cardboard 6YD $130.82 $143.25 $154.00 $159.39 $164.97 $170.74 Roll-Offs – By Pickups 20 yd - Roll Off $450.00 $492.75 $529.71 $548.25 $567.43 $587.29 30 yd - Roll Off $525.00 $574.88 $617.99 $639.62 $662.01 $685.18 40 yd - Roll Off $600.00 $657.00 $706.28 $730.99 $756.58 $783.06 Trash Compactor $300.00 $328.50 $353.14 $365.50 $378.29 $391.53 Cardboard Compactor $200.00 $219.00 $235.43 $243.66 $252.19 $261.02 Disposal Per Ton $64.00 $70.08 $75.34 $77.97 $80.70 $83.53 Roll-Offs – By Pickups Disposal Minimum (per Load) $44.00 $48.18 $51.79 $53.61 $55.48 $57.42 Disposal (Resident) (per Ton) $68.00 $74.46 $80.04 $82.85 $85.75 $88.75 Disposal (Out of Town) (per Ton) $82.00 $89.79 $96.52 $99.90 $103.40 $107.02 (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 20 1.8. Monthly Residential Bill Comparison For the purposes of this analysis, a solid waste fee comparison was prepared with other comparable entities for informational purposes. It should be noted that not all the entities in the comparison operate as an enterprise fund and service may be subsidized by the entity’s general fund. Figure 1-6 shows a comparison of the residential single-family monthly rates for solid waste collection as of Fiscal Year 2025. Figure 1-6: Monthly Residential Fee Comparison Based on 64 gallon m = Municipally operated trash and recycling ** = Subscription yard waste collection or drop-off only for yard waste *** = Every other week recycling collection **** = Every other week yard waste collection Key observations from the comparison include: i) the City provides comparable levels of service to the other entities with weekly solid waste collection; ii) the City provides higher level of service, yard waste collection and drop-off operations, glass recycling and multiple pay-as-you-throw options; iii) while the survey did not assess whether other entities fully funded operations from user fees alone, it should be noted that the City’s operations are funded exclusively from user fees and not subsidized by transfers from the general fund. City of Fayetteville / Trash Collection Rate Study 21 2. Methodology The foundation of the Study and the primary objective of the solid waste rates are to reasonably recover the cost of providing service, cost of infrastructure investment and compliance with covenants of internal fiscal targets (referred to as the "Revenue Sufficiency" evaluation). Ensuring adequate cash reserves and appropriate cash flows generally results in a sustainable long-term financial plan that can mitigate the financial and operating risk from unanticipated or sudden events to financial operations (e.g., changes in market conditions affecting operations, recovered materials revenues, reduced growth or tonnages, unanticipated or extraordinary expenses, unfunded mandates, etc.). The identified revenue requirements to be funded from rates are then allocated based on the type and level of service. In order to assess the sustainability of the City’s charges for service Raftelis developed a financial model capable of forecasting solid waste operations over a ten-year Forecast Period but with the recommended rate revenue adjustment period comprising the Fiscal Years 2026 through 2030. By forecasting operations over this period of time we are able to capture funding requirements that may not be annually occurring, test sensitivity to potential changes in operations or costs, and examine projections of cash reserves and net revenue margins to evaluate compliance with formal and informal fiscal policies. Performing a thorough evaluation of the City’s funding requirements allows us to provide sound rate recommendations to help ensure the City has sufficient resources to fund operations and achieve their objectives. The following provides a brief overview of the key activities performed for the Study: Gross Revenues Gross Revenue Requirements City of Fayetteville / Trash Collection Rate Study 22 1. An evaluation of the service area requirements for the City was performed. This included a review of recent historical customers served and corresponding waste generation such that: i) a representative forecast of the Division’s needs from a financial standpoint could be prepared; and ii) a projection of rate revenues consistent with the projected service area needs could be developed. 2. Raftelis with support of City staff, analyzed a projection of the Net Revenue Requirements from rates, which equates to the expenditure requirements funded from monthly user charges. An illustration of the components that make up the Net Revenue Requirements is summarized below: + Cost of Operation and Maintenance + Indirect Cost Allocations + Capital & Fleet Funding Requirements + Deposits to Reserves for Policy Compliance and Future Expenditures – Other Operating Revenue – Interest Income / Transfers from Operating Reserves = Net Revenue Requirements (Funded from Rates) 3. Based on the identified funding requirements and the cost of service associated with providing service over the Forecast Period, provide rate recommendations to ensure adequate funding for the City’s needs and meet the City’s rate goals and objectives. (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 23 3. Key Inputs and Assumptions Raftelis developed a solid waste financial model in Microsoft Excel to project financial and rate calculations over a 10-year study previously defined as the Forecast Period. The City’s fiscal year spans from January 1 through December 31. Projections in future years were generally made based on the budgeted Fiscal Year 2025 data using key assumptions as outlined below. All assumptions were discussed with and reviewed by City staff. This section will detail all the key assumptions developed in support of the financial plan. 3.1. Current Rates and Operations The City offers comprehensive waste collection services, including household garbage, recycling, yard waste, and bulky waste collection, to approximately 26,390 residential and over 4,400 commercial accounts, generating approximately 76,100 tons of waste and 6,000 recycling tons annually. These collection services are managed by the Sustainability Department through the Recycling and Trash Collection Division, funded through service charges billed monthly to customers based on their level of service. Residents have the flexibility to choose their level of service based on their individual needs. For residents, the base level of service includes options for one-32, 64, or 96-gallon cart for weekly refuse collection. Additionally, the base level of service includes weekly curb-sort recycling 2-18-gallon bins, and yard waste, and every other week food waste collection as a pilot program. Any additional yard waste or bulky waste collection required will incur an additional charge. These service options allow residents to tailor their waste management solutions according to their specific needs, providing them the flexibility to customize their services accordingly. As it relates to residential refuse collection service, the City provides residents with weekly residential refuse collection using a three-bin /cart system for garbage and recycling. The monthly rate for residents includes one (1) trash cart for their household garbage of their choice, and two (2) 18-gallon cart for recycling waste. Any additional carts are available for an additional fee. Table 3-1Error! Reference source not found. shows the current adopted residential trash rates . Table 3-1: Current Residential Solid Waste Rate Structure Residential Collection Rates 2025 Fayetteville Cart 32 $12.40 Fayetteville Cart 64 $18.94 Fayetteville Cart 96 $26.89 Outside Cart 32 $18.58 Outside Cart 64 $28.36 Outside Cart 96 $40.25 __________ [1] Charge for service includes garbage, recycling, yard waste City of Fayetteville / Trash Collection Rate Study 24 Along with residential collection service, the City provides dumpster collection service to its commercial customers, for trash, recycling, and cardboard which varies in the level of service based on demand. Table 3-2 shows the current adopted rates for commercial customers. Table 3-2: Current Commercial Solid Waste Rate Structure Commercial Collection Rates Existing Carts Commercial Cart $24.21 Commercial Recycling $6.10 Commercial Glass Cart $6.10 Commercial Food Waste $18.14 Outside City Commercial Cart $36.36 Multi-Meter - Commercial Shared Bin $11.84 Inside City Dumpsters 2 Cubic Yard - Trash $57.86 4 Cubic Yard - Trash $107.74 6 Cubic Yard - Trash $140.09 8 Cubic Yard - Trash $175.41 2 Cubic Yard - Compacted Trash $122.10 4 Cubic Yard - Compacted Trash $244.22 6 Cubic Yard - Compacted Trash $366.33 8 Cubic Yard - Compacted Trash $488.43 4 Cubic Yard - Cardboard $26.93 6 Cubic Yard - Cardboard $35.02 8 Cubic Yard - Cardboard $43.86 2 Cubic Yard - Compacted Cardboard $30.52 4 Cubic Yard - Compacted Cardboard $61.05 6 Cubic Yard - Compacted Cardboard $91.57 Dumpster Lease 2 YD $16.48 Dumpster Lease 4 YD $18.84 Dumpster Lease 6 YD $21.92 Dumpster Lease 8 YD $25.88 Outside City Dumpsters 2 Cubic Yard - Trash $86.79 4 Cubic Yard - Trash $161.62 6 Cubic Yard - Trash $210.13 8 Cubic Yard - Trash $263.12 4 Cubic Yard - Compacted Trash $366.33 6 Cubic Yard - Compacted Trash $549.49 4 Cubic Yard - Cardboard $40.47 6 Cubic Yard - Cardboard $52.65 8 Cubic Yard - Cardboard $65.93 Table Continued on Following Page. City of Fayetteville / Trash Collection Rate Study 25 Continued Rates Existing 4 Cubic Yard - Compacted Cardboard $91.57 6 Cubic Yard - Compacted Cardboard $137.36 Dumpster Lease 2 YD $24.73 Dumpster Lease 4 YD $28.26 Dumpster Lease 6 YD $32.88 Dumpster Lease 8 YD $38.82 Commercial Drop Box (per Pick-up) 20 Yard - Roll Off $450.00 30 Yard - Roll Off $525.00 40 Yard - Roll Off $600.00 Trash Compactor $300.00 Cardboard Compactor $200.00 Commercial Drop Box $450.00 Transfer Station (Per Ton) Disposal Minimum (per Load) $44.00 Disposal (Resident) (per Ton) $68.00 Disposal (Out of Town) (per Ton) $82.00 3.2. Customer Statistics 3.2.1. Customer Accounts The forecast of solid waste service revenues relied upon a review of recent historical trends in solid waste customer account growth and tonnage statistics. A 2% residential growth rate was assumed for the forecast and we assume an average growth rate of 1% for non-residential customers based on a detailed review of the historical period which consisted of Fiscal Year 2019 to Fiscal Year 2024 The following table provides a summary of projected trends in solid waste customer billing statistics: Table 3-3: Projected Residential Customer Statistics Accounts FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Fayetteville Cart 32 5,653 5,803 5,930 6,058 6,186 6,314 Fayetteville Cart 64 13,991 14,362 14,678 14,994 15,310 15,626 Fayetteville Cart 96 7,353 7,548 7,714 7,880 8,046 8,212 Outside Cart 32 48 49 50 51 53 54 Outside Cart 64 153 157 161 165 168 172 Outside Cart 96 124 127 130 133 136 139 City of Fayetteville / Trash Collection Rate Study 26 Table 3-4: Projected Commercial Customer Statistics Accounts FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Carts Commercial Cart 698 698 698 698 698 698 Commercial Glass Cart 10 10 10 10 10 10 Greenland Commercial Cart 37 37 37 37 37 37 Multi-Meter - Commercial Shared Bin 9,426 9,426 9,426 9,426 9,426 9,426 Inside City Dumpsters 2 Cubic Yard - Trash 161 161 162 162 163 163 4 Cubic Yard - Trash 320 321 322 323 324 325 6 Cubic Yard - Trash 436 437 438 439 441 442 8 Cubic Yard - Trash 428 429 431 432 433 434 2 Cubic Yard - Compacted Trash 2 2 2 2 2 2 4 Cubic Yard - Compacted Trash 2 2 2 2 2 2 6 Cubic Yard - Compacted Trash 7 7 7 7 7 7 8 Cubic Yard - Compacted Trash 1 1 1 1 1 1 4 Cubic Yard - Cardboard 80 82 84 86 88 90 6 Cubic Yard - Cardboard 115 118 121 124 127 130 8 Cubic Yard - Cardboard 106 109 111 114 117 120 2 Cubic Yard - Compacted Cardboard 0 0 0 0 0 0 4 Cubic Yard - Compacted Cardboard 2 2 2 2 2 2 6 Cubic Yard - Compacted Cardboard 4 4 4 4 4 4 Outside City Dumpsters 2 Cubic Yard - Trash 2 2 2 2 2 2 4 Cubic Yard - Trash 6 6 6 6 6 6 6 Cubic Yard - Trash 5 5 5 5 5 5 8 Cubic Yard - Trash 3 3 3 3 3 3 Commercial Drop Box – Pick-ups 20 Yard - Roll Off 299 299 299 299 299 299 30 Yard - Roll Off 893 893 893 893 893 893 40 Yard - Roll Off 819 819 819 819 819 819 Trash Compactor 834 834 834 834 834 834 Cardboard Compactor 57 57 57 57 57 57 Disposal Per Ton 5,747 5,747 5,747 5,747 5,747 5,747 Transfer Station Disposal Minimum (per Load) 4,228 4,228 4,228 4,228 4,228 4,228 Disposal (Resident) (per Ton) 2,433 2,433 2,433 2,433 2,433 2,433 Disposal (Out of Town) (per Ton) 7,264 7,264 7,264 7,264 7,264 7,264 City of Fayetteville / Trash Collection Rate Study 27 3.2.2. Waste Generation With respect to waste generation, the City currently collects approximately 76,100 tons of waste per year. The refuse is processed and disposed of at the City’s Transfer Station on Holly Road. The recycling waste is sorted at the curb, collected, processed, and disposed of by the City. The table shown below summarizes the City’s tonnage reports by type of customer. Table 3-5: Projected Waste Generation Description FY2025 FY2026 FY2027 FY2028 FY2029 FY2030 Commercial 32,817 34,108 35,397 36,688 37,975 39,254 Residential 20,021 20,540 20,982 21,425 21,867 22,309 Commercial Drop Box 10,272 10,272 10,272 10,272 10,272 10,272 Transfer Station 15,044 15,044 15,044 15,044 15,044 15,044 Total Tons 78,154 79,964 81,695 83,429 85,158 86,879 3.3. Revenues The revenues for the Division are principally generated from the rates for the solid waste services it provides, which include revenues generated from the monthly collection charges. Such revenues account for approximately 90% of gross revenues over the Forecast Period while the remaining balance of revenues or 10% of gross revenues are generated from recycling revenue (e.g., glass, cardboard), franchise fees, miscellaneous service charges, interest income on investments, and other fees. Since the majority of the system revenues are generated from the monthly residential charges, the forecast of revenues is primarily predicated on assumptions of the estimated number of customers receiving service and their demands (i.e., waste disposed) assumed for the Forecast Period. The rate revenue projections shown below assume that the current Fiscal Year 2025 rates as presented in Table 3-1 and 3-2 are effective throughout the Forecast Period and, therefore, represent estimated revenues in the absence of any rate increase. This provides a baseline to evaluate the need for rate revenue adjustments. Table 3-6 and Table 3-7 presents the revenues under the current rates for Solid Waste Services. (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 28 Table 3-6: Projected Cart Collection Revenues Under Current Rates (in thousands) Existing Revenues FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Fayetteville Cart 32 $859.3 $881.6 $900.7 $919.6 $938.6 $957.7 Fayetteville Cart 64 $3,248.7 $3,332.8 $3,404.7 $3,476.7 $3,548.5 $3,620.3 Fayetteville Cart 96 $2,424.0 $2,486.9 $2,540.5 $2,594.0 $2,647.6 $2,701.2 Outside Cart 32 $11.1 $11.4 $11.8 $12.0 $12.3 $12.5 Outside Cart 64 $54.8 $56.2 $57.2 $58.5 $59.9 $61.3 Outside Cart 96 $62.8 $64.2 $65.7 $67.1 $68.6 $70.0 Subtotal Residential Carts $6,661 $6,833 $6,980 $7,128 $7,275 $7,423 (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 29 Table 3-7: Projected Collection Revenues Under Current Rates (in thousands) Commercial Collection Rates FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Carts Commercial Cart $202.8 $202.8 $202.8 $202.8 $202.8 $202.8 Commercial Glass Cart $4.4 $4.4 $4.4 $4.4 $4.4 $4.4 Greenland Commercial Cart $2.7 $2.7 $2.7 $2.7 $2.7 $2.7 Multi-Meter - Commercial Shared Bin $2,577.0 $2,577.0 $2,577.0 $2,577.0 $2,577.0 $2,577.0 Inside City - Dumpsters 2 Cubic Yard - Trash $168.0 $170.8 $173.6 $177.1 $179.8 $182.6 4 Cubic Yard - Trash $623.2 $633.5 $645.2 $655.5 $665.9 $677.5 6 Cubic Yard - Trash $1,101.1 $1,119.6 $1,139.7 $1,158.2 $1,176.7 $1,196.9 8 Cubic Yard - Trash $1,355.6 $1,378.7 $1,401.9 $1,425.0 $1,448.2 $1,473.4 2 Cubic Yard - Compacted Trash $5.9 $7.3 $7.3 $7.3 $8.8 $8.8 4 Cubic Yard - Compacted Trash $14.7 $14.7 $17.6 $17.6 $17.6 $20.5 6 Cubic Yard - Compacted Trash $65.9 $70.3 $74.7 $79.1 $83.5 $87.9 8 Cubic Yard - Compacted Trash $17.6 $17.6 $23.4 $23.4 $23.4 $23.4 4 Cubic Yard - Cardboard $37.9 $39.8 $41.4 $43.4 $45.3 $46.9 6 Cubic Yard - Cardboard $71.2 $74.6 $77.9 $81.3 $84.7 $88.0 8 Cubic Yard - Cardboard $82.3 $86.0 $90.2 $93.9 $97.6 $101.8 4 Cubic Yard - Compacted Cardboard $2.2 $2.2 $2.2 $2.2 $2.2 $2.2 6 Cubic Yard - Compacted Cardboard $5.5 $6.6 $6.6 $6.6 $6.6 $6.6 Dumpster Lease 2 YD $45.5 $46.9 $48.3 $49.6 $51.0 $52.4 Dumpster Lease 4 YD $100.8 $103.8 $106.9 $110.1 $113.3 $116.4 Dumpster Lease 6 YD $131.8 $136.0 $139.9 $144.2 $148.1 $152.3 Dumpster Lease 8 YD $106.5 $109.9 $113.4 $116.5 $119.9 $123.0 Table Continued on Following Page City of Fayetteville / Trash Collection Rate Study 30 Continued FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Outside City - Dumpsters 2 Cubic Yard - Trash $2.1 $2.1 $2.1 $3.1 $3.1 $3.1 4 Cubic Yard - Trash $11.6 $13.6 $13.6 $13.6 $15.5 $15.5 6 Cubic Yard - Trash $12.6 $12.6 $15.1 $15.1 $15.1 $15.1 8 Cubic Yard - Trash $12.6 $12.6 $12.6 $12.6 $15.8 $15.8 Dumpster Lease 2 YD $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 Dumpster Lease 4 YD $1.0 $1.0 $1.0 $1.0 $1.0 $1.0 Dumpster Lease 6 YD $0.8 $0.8 $0.8 $0.8 $0.8 $0.8 Dumpster Lease 8 YD $0.9 $0.9 $0.9 $0.9 $0.9 $0.9 Commercial Drop Box 20 Yard - Roll Off $134.6 $134.6 $134.6 $134.6 $134.6 $134.6 30 Yard - Roll Off $468.8 $468.8 $468.8 $468.8 $468.8 $468.8 40 Yard - Roll Off $491.4 $491.4 $491.4 $491.4 $491.4 $491.4 Trash Compactor $250.2 $250.2 $250.2 $250.2 $250.2 $250.2 Cardboard Compactor $11.4 $11.4 $11.4 $11.4 $11.4 $11.4 Transfer Station Disposal Minimum (per Load) $186.0 $186.0 $186.0 $186.0 $186.0 $186.0 Disposal (Resident) (per Ton) $165.4 $165.4 $165.4 $165.4 $165.4 $165.4 Disposal (Out of Town) (per Ton) $595.6 $595.6 $595.6 $595.6 $595.6 $595.6 Non-Residential Subtotal $9,068 $9,153 $9,247 $9,329 $9,416 $9,504 3.3.1. Other Revenues Other revenues include but are not limited to recycling revenues due to the sale of commodities, franchise fees, penalties, miscellaneous service charges and investment income. As mentioned previously these other revenues equate to approximately 9% of gross revenues throughout the Rate Study Period. Based on discussions with City staff and to be conservative, under the Status Quo scenario recycling revenues and franchise fees are held constant throughout the Forecast Period. It should be noted, under the alternatives discussed in Section 3.5 Recycling Scenarios, recycling revenues may differ in the projection based on the respective processing costs. The table below details the revenues from the recycling commodities, and other revenues. (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 31 Table 3-8: Other Operating Revenues (in thousands) Revenue Type FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Franchise Fees $296.0 $296.0 $296.0 $296.0 $296.0 $296.0 Franchise Fees Waste Management $158.4 $158.4 $158.4 $158.4 $158.4 $158.4 Solid Waste Fees $206.3 $206.3 $206.3 $206.3 $206.3 $206.3 Miscellaneous $43.4 $43.4 $43.4 $43.4 $43.4 $43.4 Solid Waste Fees Dumpster Lease $387.7 $399.6 $411.5 $423.4 $435.3 $447.2 Long Term Lease $12.0 $12.0 $12.0 $12.0 $12.0 $12.0 Recycling Revenue Glass $2.7 $2.7 $2.7 $2.7 $2.7 $2.7 Recycling Revenue Aluminum $121.9 $121.9 $121.9 $121.9 $121.9 $121.9 Recycling Revenue Composting $102.9 $102.9 $102.9 $102.9 $102.9 $102.9 Recycling Revenue Cardboard $358.4 $358.4 $358.4 $358.4 $358.4 $358.4 Petroleum Plastic $32.1 $32.1 $32.1 $32.1 $32.1 $32.1 HDPE Plastic $20.6 $20.6 $20.6 $20.6 $20.6 $20.6 Office Paper $34.0 $34.0 $34.0 $34.0 $34.0 $34.0 Freon Recovery $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 Recycling Revenue Steel Cans $8.9 $8.9 $8.9 $8.9 $8.9 $8.9 Recycling Revenue Scrap Metal $12.0 $12.0 $12.0 $12.0 $12.0 $12.0 Recycle Bids and Carts $0.9 $0.9 $0.9 $0.9 $0.9 $0.9 Total Other Revenues $1,798.7 $1,810.7 $1,822.6 $1,834.4 $1,846.4 $1,858.2 (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 32 3.4. Expenditures The expenditures during the Forecast Period are primarily comprised of operation and maintenance (operating) expenses, capital outlay, and deposits to cash reserves to maintain adequate balances in compliance with the City’s reserve policy. 3.4.1. Operating Expenses The forecast of operating expenses was developed based upon: i) a review of the recent trends in historical expenses; ii) the adopted Fiscal Year 2025 budget, iii) assumed growth rates and escalation factors of costs based on industry trends in such costs to account for inflation in the costs of operation; and iv) discussions with the City staff. The table shown below presents an overview of the operating expense projections by type of cost. Figure 3-1 Operating Expense by Type of Cost The forecast assumes a customer growth rate of 2% and inflation in unit costs from 4% to 7%, which equates to an overall annual increase in the cost of operation of approximately 5% annually. The escalation factors are listed in more detail in section 3.4.2. Labor costs represent the largest funding requirement at 30%, followed by disposal, accounting for 21%, and fleet-related costs represent 20% of the total operating expenses of the Division. City of Fayetteville / Trash Collection Rate Study 33 The table below details the expense projection broken out by the Division’s budgetary cost centers representing the lines of service. Table 3-9: Operating Expense Projection by Cost Center Operating Expenses FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 5000 - Operations & Administration $3,150,908 $3,272,340 $3,399,539 $3,532,783 $3,672,355 $3,818,560 5010 - Commercial Collections $3,966,086 $4,124,575 $4,351,589 $4,589,655 $4,839,214 $5,100,453 5020 - Residential Collections $3,357,733 $3,480,540 $3,641,814 $3,810,313 $3,986,410 $4,483,533 5030 - Commercial Drop Box Collections $1,023,237 $1,043,665 $1,083,774 $1,125,420 $1,168,748 $1,213,797 5040 - Transfer Station $2,278,188 $2,350,478 $2,453,822 $2,561,767 $2,674,643 $2,792,638 5060 - Recycling $3,285,561 $3,431,544 $3,806,027 $3,974,304 $4,150,252 $4,334,225 5070 - Composting $1,347,087 $1,402,001 $1,459,231 $1,518,878 $1,581,042 $1,645,830 Total - Operating Expenses $18,408,799 $19,105,142 $20,195,796 $21,113,119 $22,072,664 $23,389,036 (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 34 3.4.2. Escalation Factors The operating expenses as presented in section 3.4.1 relied upon the application of inflation factors to the adopted Fiscal Year 2025 operating expense budget and are presented in the following Table 3-8. To ensure that future costs are reasonably forecasted, Raftelis worked with City staff to confirm the assumptions as outlined below. Table 3-10: Inflationary Assumptions Escalation Factors FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Direct Labor Costs 4.50% 4.50% 4.50% 4.50% 4.50% Insurance 4.00% 4.00% 4.00% 4.00% 4.00% General - Inflation 4.25% 4.25% 4.25% 4.25% 4.25% Maintenance 4.00% 4.00% 4.00% 4.00% 4.00% Disposal 5.00% 5.00% 5.00% 5.00% 5.00% Fuel 4.50% 4.50% 4.50% 4.50% 4.50% Fleet 4.00% 4.00% 4.00% 4.00% 4.00% Supplies 4.00% 4.00% 4.00% 4.00% 4.00% Other Charges and Services 5.00% 5.00% 5.00% 5.00% 5.00% Capital Appropriations 7.00% 6.00% 5.50% 5.00% 5.00% 3.4.3. Capital Expenditures The City has developed a comprehensive Capital Improvement Plan (CIP) over the course of the Forecast Period. Over the next five (5) years the City has allocated approximately $6.3 million into capital funding. The following table presents a summary of the planned annual capital spending over the Rate Study Period which is expected to average approximately $1.2 million annually. The capital needs are primarily for the fleet needs and infrastructure of the Division. Table 3-11: Capital Improvement Plan FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Technology Equip Replacement $19,000 $3,000 $8,000 $7,000 $21,000 Rate Study $0 $0 $0 $0 $100,000 Master Plan Expansion(1) $750,000 $800,000 $800,000 $850,000 $900,000 Route Optimization & RFID System $50,000 $40,000 $40,000 $40,000 $40,000 Compost Site Improvements $200,000 $200,000 $200,000 $200,000 $200,000 Compactors & Containers $160,000 $160,000 $160,000 $160,000 $160,000 Total Capital $1,179,000 $1,203,000 $1,208,000 $1,257,000 $1,421,000 ______ (1) Master plan expansion capital project includes vehicle purchases to address growth. City of Fayetteville / Trash Collection Rate Study 35 It should be noted that vehicle replacement expenditures are accounted for through the fleet services fund and recognized as an operating expense to the system. 3.4.4. Existing and Proposed Debt Service The Division does not have any existing debt service and the Study assumes no new debt issued and that all capital will be funded from reserves or future revenues. 3.4.5. Minimum Cash Reserve Targets Industry best practices recognize the need and benefit of maintaining minimum cash reserves to provide necessary liquidity to fund day to day operations, provide resources in order to appropriate funds for expected capital outlays, and provide a reasonable allowance for unexpected needs. The Government Finance Officers Association (GFOA) recommends that enterprise funds consider establishing reserves by purpose. Pursuant to discussions with City staff the Study assumed a 120 day minimum cash reserve target to provide adequate liquidity for day-to-day operations and provide a reasonable allowance for unexpected costs. The table below presents the forecast of minimum cash reserve targets assumed for the Study. Table 3-12: Reserve Targets FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Operating Reserves $6,052,208 $6,281,143 $6,639,714 $6,941,300 $7,256,766 $7,689,546 (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 36 3.5. Recycling Scenarios The City currently offers multiple recycling programs for their customers, including manual residential curb- sorted recycling, apartment recycling, commercial recycling, and recycling drop-off centers. The predominant component of the recycling program is the residential single-family curb-sorted recycling. According to the City’s September 2024 Waste Characterization Study, which analyzed residential waste and recycling composition, a significant volume of both recyclables and organic materials was identified within the municipal solid waste stream. This analysis determined a recycling capture rate of 40% of the total identified recoverable materials. The low recycling capture rate is likely due to lack of convenience and scalability of the curb-sort bin recycling program. The accompanying figure illustrates the recycling tonnage breakdown. Figure 3-2: Residential Waste Composition Source: Sept 2024 Fayetteville Waste Characterization Study The curb-sort program requires Staff to sort bins at the curb into seven material streams. Under these current manual operations, the City has kept a low contamination rate of approximately 1%, however, as mentioned previously, with the low capture rate, there are many operational challenges with the curb-sort program. These challenges include but are not limited to, driver injuries, driver safety (e.g., bin hazards, weather, traffic), high driver turnover, and collection efficiency. Based on these challenges and from the findings of the waste characterization study, the Division looked to evaluate three recycling operational scenarios in addition to their current recycling operations for rate setting purposes through this Study. The proposed operational changes were evaluated based on their potential to enhance overall program performance, safety, and long-term fiscal sustainability, relative to their financial impact on the system. Below is a listing of the scenarios analyzed: City of Fayetteville / Trash Collection Rate Study 37 1. Status Quo: Current Curb-sort Recycling (Manual) a. Requires two 18-gallon bins with lids 2. Scenario 1: Dual Stream Cart-based Recycling (Automated) a. Requires two 64-gallon cart 3. Scenario 2: All-in-one Cart-based Recycling – Weekly (Automated) a. Requires one 64-gallon cart 4. Scenario 3: All-in-one Cart-based Recycling – Every Other Week (Automated) a. Requires one 96 gallon cart The figure below evaluates how each of the recycling options was ranked by the Division to reach their key objectives. Figure 3-3: Recycling Options Analysis (Remainder of page intentionally left blank) Tons of Recyclables Captured Employee Injury/Safety Efficiency Customer Convenience Equity/ Growth Messaging/ Priorities Contamination Management Capital Cost 1‐yr Rate Increase 5‐yr Rate Increase Status Quo 2,534 High Slow Medium Very Limited Weak Manual Sort n/a 9.50% $7.22 S1: Dual Stream Cart Based Recycling 3,727 Low Medium Medium Good Strong Anti‐ Contamination Software $5M 12.50% $6.93 S2: All‐in‐one Cart Based Recycling (EW) 5,083 Low Fast High High Potential Very Strong Anti‐ Contamination Software $2.0M 9.50% $5.78 S3: All‐in‐one Cart Based Recycling (EOW) 5,083 Low Fast Medium High Potential Strong Anti‐ Contamination Software $2.6M 6.50% $4.88 City of Fayetteville / Trash Collection Rate Study 38 In addition to the safety and operational objectives, Raftelis evaluated the potential financial impacts to the system for each scenario. The table below breaks down the impact of each of the scenarios, by tons, trucks, the customers per route, and the costs associated. Table 3-13: Recycling Scenario Operational and Financial Comparison Tons Recycled Trucks Weekly Routes Households/ Route /Day Incremental Vehicles Costs (1) Incremental Cart Costs Operating Expenses (2) Status Quo 2,534 12 50 465 n/a n/a $19,105,142 S1: Dual Stream Cart Recycling 3,727 8 30 776 $1,514,000 $3,540,522 $17,916,857 S2: All-in-one Cart Recycling 5,083 6 23 1,008 $418,750 $1,770,261 $17,663,957 S3: All-in-one Cart Recycling EOW 5,083 4 14 1,629 $0 $2,655,392 $17,184,665 (1) The City utilizes fleet replacement credit for vehicles through their Fleet Department and these values are reflective of the approximate costs after the use of the credit. (2) Incremental change in operating expenses for S1-S3 include potential reductions in labor and fleet costs associated with route requirements, as well as potential changes in processing costs related to the quantity and method of processing recovered materials. For purposes of evaluating the rate increase needs and impacts to customers, all scenarios were assumed to reach the same endpoint of meeting revenue requirements and working towards meeting reserve targets. The table below details the bill impacts for the average customer with 64-gallon trash service. Bill Impacts for 64-gal FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total Bill Adj. Status Quo 0.00% 9.50% 9.50% 5.50% 4.50% 4.50% 38.1% S1: Dual Stream Cart Recycling 0.00% 12.50% 9.00% 5.00% 3.50% 3.50% 37.9% S2: All-in-one Cart Recycling 0.00% 9.50% 7.50% 3.50% 3.50% 3.50% 30.5% S3: All-in-one Cart Recycling EOW 0.00% 6.50% 6.50% 3.50% 3.50% 4.50% 27.0% Status Quo $18.94 $20.74 $22.71 $23.96 $25.04 $26.16 n/a S1: Dual Stream Cart Recycling $18.94 $21.31 $23.23 $24.39 $25.24 $26.12 n/a S2: All-in-one Cart Recycling $18.94 $20.74 $22.29 $23.08 $23.88 $24.72 n/a S3: All-in-one Cart Recycling EOW $18.94 $20.17 $21.48 $22.23 $23.01 $24.05 n/a $ Change - Baseline n/a $1.80 $1.97 $1.25 $1.08 $1.13 $7.22 S1 - Adjust n/a $2.37 $1.92 $1.16 $0.85 $0.88 $7.18 S2 - Adjust n/a $1.80 $1.56 $0.78 $0.81 $0.84 $5.78 S3 - Adjust n/a $1.23 $1.31 $0.75 $0.78 $1.04 $5.11 Based on the operational and financial evaluation, the Division has proposed to adapt their current operations to Scenario 2: All-in-one Weekly Cart Based Recycling. City of Fayetteville / Trash Collection Rate Study 39 Key benefits of the proposal include:  Increased Recycling Diversion by expanding service to multi-family and commercial customers, potentially doubling recycling collection volumes;  Enhanced Driver Safety through the automation of collection processes, reducing manual handling and related risks;  Lower Operational Costs driven by automation, enabling route consolidation, fewer trucks on the road, and reduced labor hours;  Smaller Rate Adjustments as a result of cost savings, helping to minimize customer impact and maintain competitive rates compared to peer communities; and  Policy Compliance through improved operational performance, full funding of the capital plan, and achievement of minimum fiscal targets.  Contamination Management through the use of anti-contamination software on collection trucks (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 40 4. Solid Waste Financial Plan This section combines the assumptions previously discussed in the report to determine the overall revenue adjustments and total amount of revenue required from rates. The revenue covers operating and maintenance (O&M), and capital expenses as well as reserve funding. Revenue adjustments represent the average rate increase for the City as a whole, with the rates adjusted across the board. Financial plan assumptions previously discussed in Section 3 were provided by and discussed in detail with City staff. To develop the financial plan, Raftelis projected annual expenses and revenues, modeled reserve balances, and added planned capital expenditures. The City is not anticipating financing any capital improvements. 4.1. Proposed Financial Plan and Revenue Adjustments The proposed revenue adjustments help ensure adequate revenue to fund operating expenses, capital expenditures, and meet reserve targets. The Financial Plan modelling assumes the first revenue adjustment occurs on January 1, 2026 and is representative of an operational change to Scenario 2’s All-in-one weekly collection. The proposed revenue adjustments would enable the City to meet operating costs and to execute the CIP shown in Table 3-11, adapt recycling operations based on the estimated plan for Scenario 2, and meet reserve targets by Fiscal Year 2029. Table 4-1 presents the proposed revenue adjustments for the initial five- year rate-setting period. It is recommended that the need for any future identified rate revenue adjustments be reviewed in the Fiscal Year 2028 or in the event of a significant change in conditions during the recommendation period which would necessitate additional rate revenues (i.e., change in regulations, material increase in the cost of contracted disposal, recycling operational changes etc.). Table 4-1: Proposed Solid Waste Revenue Adjustments (S2: All-in-one Weekly Collection) Effective Date Rate Adj. January 1, 2026 9.50% January 1, 2027 7.50% January 1, 2028 3.50% January 1, 2029 3.50% January 1, 2030 3.50% Appendices A presents the cash flow detail over the Rate Study Period for the solid waste operating fund. Figure 4-1 provides a breakdown of the projected revenue requirements of the Division under Scenario 2. As can be seen from the gap analysis, as with Status Quo, the Division’s current period expenditure exceeds existing revenues, which only grows over time due to inflation in the cost of operations and the increased need for sufficient reserves. The rate revenues at existing rates is shown by the green line. Projected rate revenues with the proposed rate adjustments is shown by the dotted green line. Annual expenditures are shown by the dark blue columns. The bright blue bar represents transfers to the general fund, the yellow bar represents capital funded through rates, and the red bar represents deposits to cash reserves. Assuming the City of Fayetteville / Trash Collection Rate Study 41 implementation of the recommended rate revenue adjustments, we have forecasted the City to maintain compliance with minimum operating and capital reserve targets. Figure 4-1: Proposed Solid Waste Financial Plan (S2: All-in-one Weekly Collection) *Existing revenue includes assumed 4.5% CPI escalation increases (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 42 Figure 4-2 shows projected operating cash balances (blue bars) at the end of each fiscal year over the Forecast Period relative to the City’s total reserve targets of 120-day operating reserves under the status quo financial plan. Reserves are drawn down in the first fiscal year to help cover annual operating costs, fund capital expenditures, and allow for the phase-in of annual rate revenue adjustments for the benefit of the rate payers. As can be seen, with the rate increases, the City meets the reserve target within the five-year rate setting window at Fiscal Year 2029. Figure 4-2: Solid Waste Financial Plan: Cash Reserves (S2: All-in-one Weekly Collection) (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 43 5. Cost of Service The last cost of service study was performed in 2018 and the City has not materially changed operations. While Raftelis performed a cost of service evaluation as part of the engagement, based on discussions with City staff and to minimize variations to bill impacts across customer classes an across-the-board application of the rate revenue adjustments was assumed. It is recommended that the City consider reviewing and potentially revising rates as operations change. (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 44 6. Proposed Solid Waste Rates and Charges The City’s solid waste fee is charged monthly for residential and non-residential bin collections. The proposed five-year solid waste rate schedule was developed based on the overall revenue adjustment needs of the System as previously discussed in further detail in Section 4 of this report. 6.1. Proposed 5-Year Solid Waste Rate Schedule Table 6-1 and Table 6-12 show the proposed 5-year schedule of solid waste rates. Table 6-1: Proposed 5-Year Cart-Based Solid Waste Rate Schedule Current Proposed Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Residential Inside City Residential Curbside Service - 32gal $12.40 $13.58 $14.60 $15.11 $15.64 $16.18 Residential Curbside Service - 64gal $18.94 $20.74 $22.29 $23.08 $23.88 $24.72 Residential Curbside Service - 96gal $26.89 $29.44 $31.65 $32.76 $33.91 $35.09 Outside City Residential Curbside Service - 32gal $18.58 $20.34 $21.87 $22.63 $23.42 $24.24 Residential Curbside Service - 64gal $28.36 $31.05 $33.38 $34.55 $35.76 $37.01 Residential Curbside Service - 96gal $40.25 $44.07 $47.37 $49.03 $50.75 $52.53 Commercial Inside City Commercial Curbside Service $24.21 $26.51 $28.50 $29.50 $30.53 $31.60 Food Waste Cart $20.47 $22.42 $24.10 $24.94 $25.82 $26.72 Recycling Cart $6.10 $6.68 $7.18 $7.43 $7.69 $7.96 Glass Cart $6.10 $6.68 $7.18 $7.43 $7.69 $7.96 Outside City Commercial Curbside Service $36.36 $39.81 $42.80 $44.30 $45.85 $47.45 (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 45 Table 6-2: Proposed 5-Year Non-Residential Solid Waste Rate Schedule Current Proposed Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Shared Bin (Multi-Meter) Inside City Multi-Meter Dumpsters $11.84 $12.96 $13.94 $14.42 $14.93 $15.45 Outside City Multi-Meter Dumpsters $17.76 $19.45 $20.90 $21.64 $22.39 $23.18 Inside City Commercial Dumpsters Commercial Dumpster Pickup 2YD $57.86 $63.36 $68.11 $70.49 $72.96 $75.51 Commercial Dumpster Pickup 4YD $107.74 $117.98 $126.83 $131.27 $135.86 $140.62 Commercial Dumpster Pickup 6YD $140.09 $153.39 $164.90 $170.67 $176.64 $182.83 Commercial Dumpster Pickup 8YD $175.41 $192.07 $206.48 $213.71 $221.19 $228.93 Cardboard 4YD $26.93 $29.49 $31.70 $32.81 $33.95 $35.14 Cardboard 6YD $35.02 $38.35 $41.23 $42.67 $44.16 $45.71 Cardboard 8YD $43.86 $48.02 $51.62 $53.43 $55.30 $57.24 Food Waste Pilot 2 CY $43.40 $47.52 $51.09 $52.87 $54.72 $56.64 Food Waste Pilot 4 CY $80.80 $88.48 $95.12 $98.45 $101.89 $105.46 Compactors Compacted Trash 2YD $122.10 $133.70 $143.72 $148.75 $153.96 $159.35 Compacted Trash 4YD $244.22 $267.42 $287.48 $297.54 $307.95 $318.73 Compacted Trash 6YD $366.33 $401.13 $431.22 $446.31 $461.93 $478.10 Compacted Trash 8YD $488.43 $534.83 $574.94 $595.06 $615.89 $637.45 Compacted Cardboard 2YD $30.52 $33.42 $35.93 $37.19 $38.49 $39.84 Compacted Cardboard 4YD $61.05 $66.85 $71.86 $74.38 $76.98 $79.67 Compacted Cardboard 6YD $91.57 $100.27 $107.79 $111.57 $115.47 $119.51 Outside City Commercial Dumpsters Commercial Dumpster Pickup 2YD $86.79 $95.04 $102.16 $105.74 $109.44 $113.27 Commercial Dumpster Pickup 4YD $161.62 $176.97 $190.24 $196.90 $203.79 $210.92 Commercial Dumpster Pickup 6YD $210.13 $230.09 $247.35 $256.00 $264.96 $274.24 Commercial Dumpster Pickup 8YD $263.12 $288.11 $309.72 $320.56 $331.78 $343.39 Cardboard 4YD $40.47 $44.31 $47.64 $49.31 $51.03 $52.82 Cardboard 6YD $52.65 $57.65 $61.98 $64.14 $66.39 $68.71 Cardboard 8YD $65.93 $72.19 $77.60 $80.32 $83.13 $86.04 Commercial Bin Recycling $6.10 $6.68 $7.18 $7.43 $7.69 $7.96 Paper 4YD $26.93 $29.49 $31.70 $32.81 $33.95 $35.14 Table Continued on Following Page City of Fayetteville / Trash Collection Rate Study 46 Current Proposed Description FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Compactors Compacted Trash 4YD $348.89 $382.03 $410.68 $425.06 $439.93 $455.33 Compacted Trash 6YD $523.32 $573.04 $616.02 $637.58 $659.89 $682.99 Compacted Cardboard 4YD $87.21 $95.50 $102.66 $106.25 $109.97 $113.82 Compacted Cardboard 6YD $130.82 $143.25 $154.00 $159.39 $164.97 $170.74 Roll-Offs – By Pickups 20 yd - Roll Off $450.00 $492.75 $529.71 $548.25 $567.43 $587.29 30 yd - Roll Off $525.00 $574.88 $617.99 $639.62 $662.01 $685.18 40 yd - Roll Off $600.00 $657.00 $706.28 $730.99 $756.58 $783.06 Trash Compactor $300.00 $328.50 $353.14 $365.50 $378.29 $391.53 Cardboard Compactor $200.00 $219.00 $235.43 $243.66 $252.19 $261.02 Disposal Per Ton $64.00 $70.08 $75.34 $77.97 $80.70 $83.53 Roll-Offs – By Pickups Disposal Minimum (per Load) $44.00 $48.18 $51.79 $53.61 $55.48 $57.42 Disposal (Resident) (per Ton) $68.00 $74.46 $80.04 $82.85 $85.75 $88.75 Disposal (Out of Town) (per Ton) $82.00 $89.79 $96.52 $99.90 $103.40 $107.02 (Remainder of page intentionally left blank) City of Fayetteville / Trash Collection Rate Study 47 7. Solid Waste Fee Comparison 7.1. Monthly Residential Bill Comparison For the purposes of this analysis, a solid waste fee comparison was prepared with other comparable entities for informational purposes. It should be noted that not all the entities in the comparison operate as an enterprise fund and service may be subsidized by the entity’s general fund. Figure 7-1 shows a comparison of the residential single-family monthly rates for solid waste collection as of Fiscal Year 2025. Figure 7-1: Monthly Residential Fee Comparison m = Municipally operated trash and recycling ** = Subscription yard waste collection or drop-off only for yard waste *** = Every other week recycling collection **** = Every other week yard waste collection Key observations from the comparison include: i) the City provides comparable levels of service to the other entities with weekly solid waste collection; ii) the City provides higher level of service, yard waste collection and drop-off operations, glass recycling and multiple pay-as-you-throw options; iii) while the survey did not assess whether other entities fully funded operations from user fees alone, it should be noted that the City’s operations are funded exclusively from user fees and not subsidized by transfers from the general fund. City of Fayetteville / Trash Collection Rate Study 48 APPENDIX: Fayetteville Recycling and Trash Collection Cost of Service Study for Solid Waste FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Operating Cash Flow Rev Class Fund Beginning Cash Reserves 6,451,584$ 3,477,207$ 3,023,291$ 3,460,367$ 4,378,518$ 5,577,347$ 6,658,368$ 8,017,448$ 9,750,471$ 11,901,888$ Rate Revenues Commercial Collection Rate Revenue 5010 $3,664,273 $3,726,153 $3,801,120 $3,862,598 $3,928,646 $3,995,906 $4,063,583 $4,125,323 $4,192,107 $4,259,471 Residential Collection Rate Revenue 5020 $7,142,476 $7,270,064 $7,378,694 $7,487,519 $7,596,266 $7,705,013 $7,813,742 $7,922,414 $8,031,311 $8,140,467 Commercial Drop Box Rate Revenue 5030 $1,765,327 $1,765,175 $1,765,175 $1,765,175 $1,765,175 $1,765,175 $1,765,175 $1,765,175 $1,765,175 $1,765,175 Transfer Station Revenues Rate Revenue 5040 $1,314,932 $1,314,932 $1,314,932 $1,314,932 $1,314,932 $1,314,932 $1,314,932 $1,314,932 $1,314,932 $1,314,932 Recycling Rate Revenue 5060 $2,280,458 $2,343,807 $2,398,516 $2,453,119 $2,507,552 $2,562,116 $2,616,500 $2,671,209 $2,725,715 $2,779,922 Composting Rate Revenue 5070 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Rate Revenue Under Existing / Adopted Rates $16,167,466 $16,420,130 $16,658,436 $16,883,343 $17,112,572 $17,343,142 $17,573,931 $17,799,052 $18,029,239 $18,259,966 Revenue Adjustments Year Effective Month % Adj. FY 2025 12 January 0.0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 FY 2026 12 January 9.5% $1,559,912 $1,582,551 $1,603,918 $1,625,694 $1,647,598 $1,669,523 $1,690,910 $1,712,778 $1,734,697 FY 2027 12 January 9.5% $1,732,894 $1,756,290 $1,780,135 $1,804,120 $1,828,128 $1,851,546 $1,875,492 $1,899,493 FY 2028 12 January 5.5%$1,113,395 $1,128,512 $1,143,717 $1,158,937 $1,173,783 $1,188,963 $1,204,179 FY 2029 12 January 4.5%$974,111 $987,236 $1,000,373 $1,013,188 $1,026,291 $1,039,425 FY 2030 12 January 4.5%$1,031,662 $1,045,390 $1,058,782 $1,072,474 $1,086,199 FY 2031 12 January 4.5%$1,092,433 $1,106,427 $1,120,736 $1,135,078 FY 2032 12 January 4.5%$1,156,216 $1,171,169 $1,186,157 FY 2033 12 January 4.5%$1,223,871 $1,239,534 FY 2034 12 January 4.5%$1,295,313 Subtotal $0 $1,559,912 $3,315,445 $4,473,603 $5,508,453 $6,614,334 $7,794,785 $9,050,852 $10,391,773 $11,820,074 Total Revenues from Rates $16,167,466 $17,980,043 $19,973,882 $21,356,946 $22,621,024 $23,957,475 $25,368,717 $26,849,904 $28,421,012 $30,080,040 Other Revenues Fund Classification GL Code Franchise Fees 5000 Franchise Fees 4105.10 $295,968 $295,968 $295,968 $295,968 $295,968 $295,968 $295,968 $295,968 $295,968 $295,968 Franchise Fees Waste Management 5000 Franchise Fees 4105.07 $158,406 $158,406 $158,406 $158,406 $158,406 $158,406 $158,406 $158,406 $158,406 $158,406 Solid Waste Fees 5000 Other 4430.00 $206,336 $206,336 $206,336 $206,336 $206,336 $206,336 $206,336 $206,336 $206,336 $206,336 Solid Waste Tax 5000 Other 4430.02 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Non routine Maint Fee 5000 Other 4430.27 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Long Term Lease Sales Tax 5000 Other 4435.20 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Miscellaneous 5000 Other 6999.00 $43,448 $43,448 $43,448 $43,448 $43,448 $43,448 $43,448 $43,448 $43,448 $43,448 Solid Waste Fees Dumpster Lease 5010 Lease 4430.24 $386,675 $398,528 $410,440 $422,304 $434,216 $446,081 $457,965 $470,140 $481,742 $493,654 Long Term Lease 5030 Lease 4435.00 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 Long Term Lease Short Term Rental 5030 Lease 4435.02 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Recycling Revenue Glass 5060 Recycle 4430.04 $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 $2,685 Recycling Revenue Aluminum 5060 Recycle 4430.05 $121,933 $121,933 $121,933 $121,933 $121,933 $121,933 $121,933 $121,933 $121,933 $121,933 Recycling Revenue Newspaper 5060 Recycle 4430.06 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Recycling Revenue Composting 5060 Recycle 4430.07 $102,868 $102,868 $102,868 $102,868 $102,868 $102,868 $102,868 $102,868 $102,868 $102,868 Recycling Revenue Cardboard 5060 Recycle 4430.08 $358,380 $358,380 $358,380 $358,380 $358,380 $358,380 $358,380 $358,380 $358,380 $358,380 Petroleum Plastic 5060 Recycle 4430.09 $32,079 $32,079 $32,079 $32,079 $32,079 $32,079 $32,079 $32,079 $32,079 $32,079 HDPE Plastic 5060 Recycle 4430.10 $20,632 $20,632 $20,632 $20,632 $20,632 $20,632 $20,632 $20,632 $20,632 $20,632 Office Paper 5060 Recycle 4430.12 $33,973 $33,973 $33,973 $33,973 $33,973 $33,973 $33,973 $33,973 $33,973 $33,973 Freon Recovery 5060 Recycle 4430.14 $542 $542 $542 $542 $542 $542 $542 $542 $542 $542 Recycling Revenue Steel Cans 5060 Recycle 4430.16 $8,941 $8,941 $8,941 $8,941 $8,941 $8,941 $8,941 $8,941 $8,941 $8,941 Recycling Revenue Scrap Metal 5060 Recycle 4430.28 $11,969 $11,969 $11,969 $11,969 $11,969 $11,969 $11,969 $11,969 $11,969 $11,969 Apartment Recycling 5060 Recycle 4430.30 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Recycle Bids and Carts 5060 Recycle 4430.31 $888 $888 $888 $888 $888 $888 $888 $888 $888 $888 Subtotal $1,797,702 $1,809,555 $1,821,467 $1,833,332 $1,845,244 $1,857,109 $1,868,992 $1,881,168 $1,892,769 $1,904,681 Investment Income Interest Rate 1.25% 1.25% 1.25% 1.25% 1.25%1.25% 1.25% 1.25% 1.25% 1.25% Investment Income $62,055 $40,628 $40,523 $48,993 $62,224 $76,473 $91,724 $111,049 $135,327 $164,638 Total Revenues $18,027,223 $19,830,226 $21,835,872 $23,239,271 $24,528,492 $25,891,057 $27,329,433 $28,842,121 $30,449,108 $32,149,360 Revenue Model Check (s/b zero)$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 O&M Expenses Direct Labor Costs Labor $5,765,615 $6,025,068 $6,296,196 $6,579,524 $6,875,602 $7,185,004 $7,508,328 $7,846,204 $8,199,282 $8,568,250 Insurance Benefits $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 General ‐ Inflation Gen‐Inflation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Maintenance Maintenance $80,200 $83,408 $86,744 $90,216 $93,825 $97,578 $101,480 $105,539 $109,759 $114,147 Disposal Disposal $4,081,202 $4,175,720 $4,415,615 $4,667,018 $4,930,648 $5,206,658 $5,496,292 $5,800,406 $6,119,248 $6,451,770 Fuel Fuel $501,759 $524,338 $547,932 $572,589 $598,355 $625,280 $653,418 $682,821 $713,548 $745,658 Fleet Fleet $3,780,108 $3,931,314 $4,088,568 $4,252,110 $4,422,196 $4,599,085 $4,783,049 $4,974,369 $5,173,343 $5,380,276 Supplies Supplies $624,190 $649,158 $675,126 $702,132 $730,218 $759,427 $789,807 $821,398 $854,254 $888,423 Other Charges and Services ProfSvc $2,653,953 $2,786,655 $2,925,988 $3,072,294 $3,225,910 $3,387,205 $3,556,564 $3,734,396 $3,921,117 $4,117,172 Interfund Transfers/Contribution to Reserves Constant $921,772 $921,772 $921,772 $921,772 $921,772 $921,772 $921,772 $921,772 $921,772 $921,772 Capital Appropriations Capital $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Incremental Expeneses Incremental $0 $7,709 $237,855 $255,464 $274,137 $607,027 $906,042 $953,673 $1,003,745 $1,127,190 Total O&M Expenses $18,408,799 $19,105,142 $20,195,796 $21,113,119 $22,072,664 $23,389,036 $24,716,753 $25,840,578 $27,016,067 $28,314,658 12.9% 3.8% 5.7% 4.5% 4.5% 6.0% 5.7% 4.5% 4.5% 4.8% Capital Expenses funded by Rates Containers Containers $404,792 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 Equipment Equipment $76,382 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 Vehicles Vehicles $305,608 $750,000 $800,000 $800,000 $850,000 $900,000 $820,000 $834,000 $840,800 $848,960 Technology Technology $11,696 $69,000 $43,000 $48,000 $47,000 $61,000 $53,600 $50,520 $52,024 $52,829 Fayetteville Recycling and Trash Collection Cost of Service Study for Solid Waste FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Operating Cash Flow Rev Class Fund Infrastructure Infrastructure $1,211,922 $0 $0 $0 $0 $0 $0 $0 $0 $0 Maintenance / Repair Maintenance / Repair $13,291 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Other $569,111 $0 $0 $0 $0 $100,000 $20,000 $24,000 $28,800 $34,560 Cart Grants Cart Grants $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total CIP $2,592,802 $1,179,000 $1,203,000 $1,208,000 $1,257,000 $1,421,000 $1,253,600 $1,268,520 $1,281,624 $1,296,349 Debt Service Existing Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Proposed Debt Service Long Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Capital Leases $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Debt Service $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Tranfers Subtotal Transfers $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net Cash Flow ($2,974,377) ($453,916) $437,076 $918,151 $1,198,829 $1,081,021 $1,359,080 $1,733,023 $2,151,417 $2,538,353 Ending Cash Reserves $3,477,207 $3,023,291 $3,460,367 $4,378,518 $5,577,347 $6,658,368 $8,017,448 $9,750,471 $11,901,888 $14,440,241 Operating Reserve Target Y 120 $6,052,208 $6,281,143 $6,639,714 $6,941,300 $7,256,766 $7,689,546 $8,126,056 $8,495,532 $8,881,995 $9,308,929 Net Above / (Below) Target ($2,575,001) ($3,257,852) ($3,179,347) ($2,562,782) ($1,679,419) ($1,031,178) ($108,608)$1,254,939 $3,019,893 $5,131,312 Fayetteville Recycling and Trash Collection Actual Actual FY 2025 Adjusted Projected Projected Projected Projected Projected Projected Projected Projected Projected Cost of Service Study for Solid Waste FY 2023 FY 2024 Budgeted Adjustments FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Expense Forecast Expense Summary by Inflation Factor Labor Direct Labor Costs $4,860,173 $4,839,388 $5,765,615 $0 $5,765,615 $6,025,068 $6,296,196 $6,579,524 $6,875,602 $7,185,004 $7,508,328 $7,846,204 $8,199,282 $8,568,250 BenefitsInsurance $0$0$0$0$0$0$0$0$0$0$0$0$0$0 Gen‐Inflation General ‐ Inflation $0$0$0$0$0$0$0$0$0$0$0$0$0$0 Maintenance Maintenance $166,329 $197,050 $80,200 $0 $80,200 $83,408 $86,744 $90,216 $93,825 $97,578 $101,480 $105,539 $109,759 $114,147 Disposal Disposal $2,531,456 $2,928,615 $3,495,403 $585,799 $4,081,202 $4,175,720 $4,415,615 $4,667,018 $4,930,648 $5,206,658 $5,496,292 $5,800,406 $6,119,248 $6,451,770 Fuel Fuel $469,910 $587,362 $501,759 $0 $501,759 $524,338 $547,932 $572,589 $598,355 $625,280 $653,418 $682,821 $713,548 $745,658 Fleet Fleet $3,133,953 $3,367,906 $3,780,108 $0 $3,780,108 $3,931,314 $4,088,568 $4,252,110 $4,422,196 $4,599,085 $4,783,049 $4,974,369 $5,173,343 $5,380,276 Supplies Supplies $559,587 $609,147 $624,190 $0 $624,190 $649,158 $675,126 $702,132 $730,218 $759,427 $789,807 $821,398 $854,254 $888,423 ProfSvc Other Charges and Services $2,049,414 $2,637,090 $2,653,953 $0 $2,653,953 $2,786,655 $2,925,988 $3,072,294 $3,225,910 $3,387,205 $3,556,564 $3,734,396 $3,921,117 $4,117,172 Constant Interfund Transfers/Contribution to Reserves $864,049 $1,092,124 $921,772 $0 $921,772 $921,772 $921,772 $921,772 $921,772 $921,772 $921,772 $921,772 $921,772 $921,772 Capital Capital Appropriations $25,071 $47,852 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Incremental Incremental Expenses $0 $0 $0 $0 $0 $7,709 $237,855 $255,464 $274,137 $607,027 $906,042 $953,673 $1,003,745 $1,127,190 Eliminate Eliminate $899,127 $1,665,625 $905,000 ($905,000) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total $15,559,069 $17,972,160 $18,728,000 ($319,201) $18,408,799 $19,105,142 $20,195,796 $21,113,119 $22,072,664 $23,389,036 $24,716,753 $25,840,578 $27,016,067 $28,314,658 Expense Summary by Cost Center 5000 5000 ‐ Operations & Administration $2,552,748 $2,979,280 $3,150,908 $0 $3,150,908 $3,272,340 $3,399,539 $3,532,783 $3,672,355 $3,818,560 $3,971,713 $4,132,150 $4,300,213 $4,476,267 5010 5010 ‐ Commercial Collections $2,883,135 $3,203,700 $3,697,127 $268,959 $3,966,086 $4,124,575 $4,351,589 $4,589,655 $4,839,214 $5,100,453 $5,374,648 $5,662,874 $5,964,873 $6,279,763 5020 5020 ‐ Residential Collections $2,716,242 $3,050,344 $3,126,387 $231,346 $3,357,733 $3,480,540 $3,641,814 $3,810,313 $3,986,410 $4,483,533 $4,689,056 $4,903,606 $5,127,880 $5,362,172 5030 5030 ‐ Commercial Drop Box Collections $761,185 $819,524 $994,592 $28,645 $1,023,237 $1,043,665 $1,083,774 $1,125,420 $1,168,748 $1,213,797 $1,260,613 $1,309,238 $1,359,824 $1,412,421 5040 5040 ‐ Transfer Station $1,672,263 $1,990,534 $2,221,338 $56,850 $2,278,188 $2,350,478 $2,453,822 $2,561,767 $2,674,643 $2,792,638 $2,915,954 $3,044,800 $3,179,543 $3,320,413 5060 5060 ‐ Recycling $2,917,171 $3,048,739 $3,285,561 $0 $3,285,561 $3,431,544 $3,806,027 $3,974,304 $4,150,252 $4,334,225 $4,791,416 $5,004,185 $5,226,663 $5,530,104 5070 5070 ‐ Composting $1,157,198 $1,214,414 $1,347,087 $0 $1,347,087 $1,402,001 $1,459,231 $1,518,878 $1,581,042 $1,645,830 $1,713,352 $1,783,725 $1,857,072 $1,933,517 5080 5080 ‐ Solid Waste Projects $899,127 $1,665,625 $905,000 ($905,000) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total $15,559,069 $17,972,160 $18,728,000 $18,408,799 $19,105,142 $20,195,796 $21,113,119 $22,072,664 $23,389,036 $24,716,753 $25,840,578 $27,016,067 $28,314,658 Cost Center Expense Escalation Actual Actual Budgeted Adjusted Projected Projected Projected Projected Projected Projected Projected Projected Projected Description Category Factor FY 2023 FY 2024 Budgeted Adjustments FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Inflation Factors Direct Labor Costs Labor 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% Insurance Benefits 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% General ‐ Inflation Gen‐Inflation 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% 4.25% Maintenance Maintenance 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Disposal Disposal 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Fuel Fuel 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% Fleet Fleet 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Supplies Supplies 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% Other Charges and Services ProfSvc 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Interfund Transfers/Contribution to Reserves Constant 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Eliminate Eliminate ‐100.00% (100.00%) (100.00%) (100.00%) (100.00%) (100.00%) (100.00%) (100.00%) (100.00%) (100.00%) Capital Appropriations Capital 7.00% 7.00% 6.00% 5.50% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5000 ‐ Operations & Administration Personnel Services 5000 Labor $847,096 $677,149 $1,086,343 $0 $1,086,343 $1,135,228 $1,186,313 $1,239,697 $1,295,483 $1,353,780 $1,414,700 $1,478,362 $1,544,888 $1,614,408 Materials & Supplies 5000 Supplies $57,691 $59,953 $81,037 $0 $81,037 $84,278 $87,649 $91,155 $94,801 $98,593 $102,537 $106,638 $110,904 $115,340 Services and Charges 5000 ProfSvc $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Public Notification : 5000 5500.750.5000‐5301.00 ProfSvc $228 $750 $500 $0 $500 $525 $551 $579 $608 $638 $670 $704 $739 $776 Uniforms/Personal Equipment 5000 5500.750.5000‐5302.00 ProfSvc $65,474 $65,140 $65,000 $0 $65,000 $68,250 $71,663 $75,246 $79,008 $82,958 $87,106 $91,461 $96,034 $100,836 Publications & Dues : 5000 5500.750.5000‐5303.00 ProfSvc $50,629 $60,000 $60,000 $0 $60,000 $63,000 $66,150 $69,458 $72,931 $76,578 $80,407 $84,427 $88,648 $93,080 Travel & Training : 5000 5500.750.5000‐5304.00 ProfSvc $15,957 $28,100 $25,000 $0 $25,000 $26,250 $27,563 $28,941 $30,388 $31,907 $33,502 $35,177 $36,936 $38,783 Postage Postage 5000 5500.750.5000‐5305.00 ProfSvc $172,058 $204,620 $166,910 $0 $166,910 $175,256 $184,019 $193,220 $202,881 $213,025 $223,676 $234,860 $246,603 $258,933 Business Meals 5000 5500.750.5000‐5306.00 ProfSvc $0 $150 $150 $0 $150 $158 $166 $174 $183 $192 $202 $212 $223 $234 Audit Expense : 5000 5500.750.5000‐5307.00 ProfSvc $5,500 $5,500 $5,775 $0 $5,775 $6,064 $6,367 $6,685 $7,019 $7,370 $7,739 $8,126 $8,532 $8,959 Rental Equipment 5000 5500.750.5000‐5308.03 ProfSvc $4,879 $500 $500 $0 $500 $525 $551 $579 $608 $638 $670 $704 $739 $776 Lease Software 5000 5500.750.5000‐5309.02 ProfSvc $6,542 $14,400 $12,294 $0 $12,294 $12,909 $13,554 $14,232 $14,944 $15,691 $16,476 $17,300 $18,165 $19,073 Utilities Telephone 5000 5500.750.5000‐5310.01 ProfSvc $14,535 $21,655 $21,655 $0 $21,655 $22,738 $23,875 $25,069 $26,322 $27,638 $29,020 $30,471 $31,995 $33,595 Utilities AEP Electric 5000 5500.750.5000‐5310.10 ProfSvc $39,164 $38,950 $23,950 $0 $23,950 $25,148 $26,405 $27,725 $29,111 $30,567 $32,095 $33,700 $35,385 $37,154 Utilities Fayetteville Water/Sewer 5000 5500.750.5000‐5310.30 ProfSvc $8,154 $8,300 $8,300 $0 $8,300 $8,715 $9,151 $9,609 $10,089 $10,593 $11,123 $11,679 $12,263 $12,876 Utilities Black Hills Energy 5000 5500.750.5000‐5310.50 ProfSvc $2,620 $9,500 $9,500 $0 $9,500 $9,975 $10,474 $10,998 $11,548 $12,125 $12,731 $13,368 $14,036 $14,738 Utilities Ozarks Electric 5000 5500.750.5000‐5310.60 ProfSvc $649 $600 $600 $0 $600 $630 $662 $695 $730 $767 $805 $845 $887 $931 Insurance Vehicles/Buildings 5000 5500.750.5000‐5311.00 ProfSvc $14,605 $25,890 $25,890 $0 $25,890 $27,185 $28,544 $29,971 $31,470 $33,044 $34,696 $36,431 $38,253 $40,166 Insurance Self (Third Party Damage) 5000 5500.750.5000‐5311.03 ProfSvc $0 $6,300 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Insurance Self (Non‐Vehicle Damage) 5000 5500.750.5000‐5311.04 ProfSvc $0 $500 $500 $0 $500 $525 $551 $579 $608 $638 $670 $704 $739 $776 Professional Services : 5000 5500.750.5000‐5314.00 ProfSvc $27 $100 $100 $0 $100 $105 $110 $116 $122 $128 $134 $141 $148 $155 Contract Services : 5000 5500.750.5000‐5315.00 ProfSvc ($12,121) $132,600 $144,200 $0 $144,200 $151,410 $158,981 $166,930 $175,277 $184,041 $193,243 $202,905 $213,050 $223,703 Bad Debt Expense 5000 5500.750.5000‐5319.00 ProfSvc $110,929 $100,000 $100,000 $0 $100,000 $105,000 $110,250 $115,763 $121,551 $127,629 $134,010 $140,711 $147,747 $155,134 Bank Charges Credit Card 5000 5500.750.5000‐5320.02 ProfSvc $92,385 $124,300 $100,000 $0 $100,000 $105,000 $110,250 $115,763 $121,551 $127,629 $134,010 $140,711 $147,747 $155,134 In Lieu Of Taxes Solid Waste 5000 5500.750.5000‐5321.02 ProfSvc $446,822 $464,182 $511,000 $0 $511,000 $536,550 $563,378 $591,547 $621,124 $652,180 $684,789 $719,028 $754,979 $792,728 In Lieu Of Taxes Other 5000 5500.750.5000‐5321.99 ProfSvc $0 $13,461 $33,561 $0 $33,561 $35,239 $37,001 $38,851 $40,794 $42,834 $44,976 $47,225 $49,586 $52,065 Recognition Employee 5000 5500.750.5000‐5329.00 ProfSvc $1,383 $1,200 $1,200 $0 $1,200 $1,260 $1,323 $1,389 $1,458 $1,531 $1,608 $1,688 $1,772 $1,861 Collection Expense 5000 5500.750.5000‐5333.00 ProfSvc $390 $1,750 $1,750 $0 $1,750 $1,838 $1,930 $2,027 $2,128 $2,234 $2,346 $2,463 $2,586 $2,715 Sales Tax Inventory Items 5000 5500.750.5000‐5372.00 ProfSvc $11,367 $14,000 $14,000 $0 $14,000 $14,700 $15,435 $16,207 $17,017 $17,868 $18,761 $19,699 $20,684 $21,718 Motorpool 5000 Fleet ($0) ($2) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Motorpool Charges Maintenance 5000 5500.750.5000‐5331.00 Fleet $1,736 $1,956 $2,270 $0 $2,270 $2,361 $2,455 $2,553 $2,655 $2,761 $2,871 $2,986 $3,105 $3,229 Motorpool Charges Replacement 5000 5500.750.5000‐5331.01 Fleet $10,542 $11,342 $11,680 $0 $11,680 $12,147 $12,633 $13,138 $13,664 $14,211 $14,779 $15,370 $15,985 $16,624 Motorpool Charges Shop Overhead 5000 5500.750.5000‐5331.02 Fleet $1,111 $1,057 $1,534 $0 $1,534 $1,595 $1,659 $1,725 $1,794 $1,866 $1,941 $2,019 $2,100 $2,184 Motorpool Charges Shop OH Insurance 5000 5500.750.5000‐5331.03 Fleet $488 $203 $677 $0 $677 $704 $732 $761 $791 $823 $856 $890 $926 $963 Cost Allocation 5000 Constant $481,380 $583,932 $583,932 $0 $583,932 $583,932 $583,932 $583,932 $583,932 $583,932 $583,932 $583,932 $583,932 $583,932 Maintenance 5000 Maintenance $0 $9,389 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Building & Grounds Maintenance 5000 5500.750.5000‐5400.00 Maintenance $75,230 $142,500 $50,000 $0 $50,000 $52,000 $54,080 $56,243 $58,493 $60,833 $63,266 $65,797 $68,429 $71,166 Equipment Maint Office Machine 5000 5500.750.5000‐5401.00 Maintenance $0 $500 $500 $0 $500 $520 $541 $563 $586 $609 $633 $658 $684 $711 Maintenance Vehicle & Machine 5000 5500.750.5000‐5403.00 Maintenance $225 $500 $500 $0 $500 $520 $541 $563 $586 $609 $633 $658 $684 $711 Debt Service 5000 Constant $0 $0 $100 $0 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 Capital 5000 Capital $0 $47,852 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Non‐Operating Interest 5000 Capital $25,071 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Operating Transfers Out 5000 Constant $0 $100,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,552,748 $2,979,280 $3,150,908 $0 $3,150,908 $3,272,340 $3,399,539 $3,532,783 $3,672,355 $3,818,560 $3,971,713 $4,132,150 $4,300,213 $4,476,267 5010 ‐ Commercial Collections Personnel Services 5010 Labor $567,843 $644,009 $770,569 $0 $770,569 $805,245 $841,481 $879,348 $918,919 $960,270 $1,003,482 $1,048,639 $1,095,828 $1,145,140 Materials & Supplies 5010 Supplies $0$0$0$0$0$0$0$0$0$0$0$0$0$0 Minor Equipment : 5010 5500.750.5010‐5210.00 Supplies $2,374 $3,090 $2,890 $0 $2,890 $3,006 $3,126 $3,251 $3,381 $3,516 $3,657 $3,803 $3,955 $4,113 Signs : 5010 5500.750.5010‐5212.00 Supplies $1,478 $1,270 $2,000 $0 $2,000 $2,080 $2,163 $2,250 $2,340 $2,434 $2,531 $2,632 $2,737 $2,846 Fuel Unleaded/Diesel 5010 5500.750.5010‐5213.04 Fuel $154,001 $184,842 $163,874 $0 $163,874 $171,248 $178,954 $187,007 $195,422 $204,216 $213,406 $223,009 $233,044 $243,531 Container Maint Supplies : 5010 5500.750.5010‐5226.00 Supplies $3,348 $14,450 $13,800 $0 $13,800 $14,352 $14,926 $15,523 $16,144 $16,790 $17,462 $18,160 $18,886 $19,641 Containers RTC 5010 5500.750.5010‐5227.00 Supplies $197,331 $218,416 $181,000 $0 $181,000 $188,240 $195,770 $203,601 $211,745 $220,215 $229,024 $238,185 $247,712 $257,620 Services and Charges 5010 ProfSvc $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Insurance Self (City Vehicles) 5010 5500.750.5010‐5311.01 ProfSvc $982 $2,000 $2,000 $0 $2,000 $2,100 $2,205 $2,315 $2,431 $2,553 $2,681 $2,815 $2,956 $3,104 Insurance Self (Non‐Vehicle Damage) 5010 5500.750.5010‐5311.04 ProfSvc $0 $100 $100 $0 $100 $105 $110 $116 $122 $128 $134 $141 $148 $155 Disposal Solid Waste 5010 5500.750.5010‐5316.00 Disposal $1,006,972 $1,214,055 $1,444,745 $268,959 $1,713,704 $1,781,120 $1,913,208 $2,052,327 $2,198,753 $2,352,492 $2,514,634 $2,686,064 $2,866,321 $3,054,313 Motorpool 5010 Fleet $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Motorpool Charges Maintenance 5010 5500.750.5010‐5331.00 Fleet $260,259 $204,941 $237,609 $0 $237,609 $247,113 $256,998 $267,278 $277,969 $289,088 $300,652 $312,678 $325,185 $338,192 Motorpool Charges Replacement 5010 5500.750.5010‐5331.01 Fleet $490,472 $546,928 $661,428 $0 $661,428 $687,885 $715,400 $744,016 $773,777 $804,728 $836,917 $870,394 $905,210 $941,418 Motorpool Charges Shop Overhead 5010 5500.750.5010‐5331.02 Fleet $54,288 $53,124 $85,442 $0 $85,442 $88,860 $92,414 $96,111 $99,955 $103,953 $108,111 $112,435 $116,932 $121,609 Motorpool Charges Shop OH Insurance 5010 5500.750.5010‐5331.03 Fleet $21,835 $16,920 $28,766 $0 $28,766 $29,917 $31,114 $32,359 $33,653 $34,999 $36,399 $37,855 $39,369 $40,944 Cost Allocation 5010 Constant $76,584 $92,904 $92,904 $0 $92,904 $92,904 $92,904 $92,904 $92,904 $92,904 $92,904 $92,904 $92,904 $92,904 Maintenance 5010 Maintenance $45,370 $6,651 $10,000 $0 $10,000 $10,400 $10,816 $11,249 $11,699 $12,167 $12,654 $13,160 $13,686 $14,233 $2,883,135 $3,203,700 $3,697,127 $268,959 $3,966,086 $4,124,575 $4,351,589 $4,589,655 $4,839,214 $5,100,453 $5,374,648 $5,662,874 $5,964,873 $6,279,763 5020 ‐ Residential Collections Personnel Services 5020 Labor $846,296 $902,119 $1,001,269 $0 $1,001,269 $1,046,326 $1,093,411 $1,142,614 $1,194,032 $1,247,763 $1,303,912 $1,362,588 $1,423,904 $1,487,980 Materials & Supplies 5020 Supplies $0$0$0$0$0$0$0$0$0$0$0$0$0$0 Supplies Office/Printing 5020 5500.750.5020‐5200.00 Supplies $0 $2,000 $800 $0 $800 $832 $865 $900 $936 $973 $1,012 $1,052 $1,094 $1,138 Minor Equipment : 5020 5500.750.5020‐5210.00 Supplies $100,849 $106,800 $100,000 $0 $100,000 $104,000 $108,160 $112,486 $116,985 $121,664 $126,531 $131,592 $136,856 $142,330 Fuel Unleaded/Diesel 5020 5500.750.5020‐5213.04 Fuel $170,829 $202,720 $166,044 $0 $166,044 $173,516 $181,324 $189,484 $198,011 $206,921 $216,232 $225,962 $236,130 $246,756 Solid Waste Collection Supplies 5020 5500.750.5020‐5225.00 Supplies $2,083 $3,500 $1,000 $0 $1,000 $1,040 $1,082 $1,125 $1,170 $1,217 $1,266 $1,317 $1,370 $1,425 Services and Charges 5020 ProfSvc ($0) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Insurance Self (City Vehicles) 5020 5500.750.5020‐5311.01 ProfSvc $462 $2,550 $1,350 $0 $1,350 $1,418 $1,489 $1,563 $1,641 $1,723 $1,809 $1,899 $1,994 $2,094 Insurance Self (Non‐Vehicle Damage) 5020 5500.750.5020‐5311.04 ProfSvc $0 $250 $250 $0 $250 $263 $276 $290 $305 $320 $336 $353 $371 $390 Disposal Solid Waste 5020 5500.750.5020‐5316.00 Disposal $623,701 $749,849 $814,151 $231,346 $1,045,497 $1,072,599 $1,134,077 $1,198,515 $1,266,099 $1,336,978 $1,411,307 $1,489,055 $1,570,679 $1,656,222 Motorpool 5020 Fleet ($0) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Motorpool Charges Maintenance 5020 5500.750.5020‐5331.00 Fleet $244,092 $236,810 $202,277 $0 $202,277 $210,368 $218,783 $227,534 $236,635 $246,100 $255,944 $266,182 $276,829 $287,902 Motorpool Charges Replacement 5020 5500.750.5020‐5331.01 Fleet $583,553 $678,883 $656,390 $0 $656,390 $682,646 $709,952 $738,350 $767,884 $798,599 $830,543 $863,765 $898,316 $934,249 Motorpool Charges Shop Overhead 5020 5500.750.5020‐5331.02 Fleet $60,530 $65,640 $86,166 $0 $86,166 $89,613 $93,198 $96,926 $100,803 $104,835 $109,028 $113,389 $117,925 $122,642 Motorpool Charges Shop OH Insurance 5020 5500.750.5020‐5331.03 Fleet $25,580 $21,464 $27,926 $0 $27,926 $29,043 $30,205 $31,413 $32,670 $33,977 $35,336 $36,749 $38,219 $39,748 Cost Allocation 5020 Constant $54,384 $65,964 $65,964 $0 $65,964 $65,964 $65,964 $65,964 $65,964 $65,964 $65,964 $65,964 $65,964 $65,964 Maintenance 5020 Maintenance $3,882 $11,795 $2,800 $0 $2,800 $2,912 $3,028 $3,149 $3,275 $3,406 $3,542 $3,684 $3,831 $3,984 $2,716,242 $3,050,344 $3,126,387 $231,346 $3,357,733 $3,480,540 $3,641,814 $3,810,313 $3,986,410 $4,170,440 $4,362,762 $4,563,551 $4,773,482 $4,992,824 5030 ‐ Commercial Drop Box Collections Personnel Services 5030 Labor $180,890 $207,943 $227,005 $0 $227,005 $237,220 $247,895 $259,050 $270,707 $282,889 $295,619 $308,922 $322,823 $337,350 Materials & Supplies 5030 Supplies ($0) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Minor Equipment : 5030 5500.750.5030‐5210.00 Supplies $666 $1,379 $1,279 $0 $1,279 $1,330 $1,383 $1,438 $1,496 $1,556 $1,618 $1,683 $1,750 $1,820 Signs : 5030 5500.750.5030‐5212.00 Supplies $22 $0 $1,000 $0 $1,000 $1,040 $1,082 $1,125 $1,170 $1,217 $1,266 $1,317 $1,370 $1,425 Fuel Unleaded/Diesel 5030 5500.750.5030‐5213.04 Fuel $33,600 $55,084 $48,068 $0 $48,068 $50,231 $52,491 $54,853 $57,321 $59,900 $62,596 $65,413 $68,357 $71,433 Container Maint Supplies : 5030 5500.750.5030‐5226.00 Supplies $252 $500 $500 $0 $500 $520 $541 $563 $586 $609 $633 $658 $684 $711 Services and Charges 5030 ProfSvc ($0) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Contract Services : 5030 5500.750.5030‐5315.00 ProfSvc $6,002 $8,000 $8,000 $0 $8,000 $8,400 $8,820 $9,261 $9,724 $10,210 $10,721 $11,257 $11,820 $12,411 Disposal Solid Waste 5030 5500.750.5030‐5316.00 Disposal $419,574 $420,959 $507,759 $28,645 $536,404 $536,404 $555,202 $574,616 $594,749 $615,601 $637,172 $659,462 $682,574 $706,508 Motorpool 5030 Fleet $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Motorpool Charges Maintenance 5030 5500.750.5030‐5331.00 Fleet $32,081 $21,118 $34,308 $0 $34,308 $35,680 $37,107 $38,591 $40,135 $41,740 $43,410 $45,146 $46,952 $48,830 Motorpool Charges Replacement 5030 5500.750.5030‐5331.01 Fleet $64,827 $80,119 $131,889 $0 $131,889 $137,165 $142,652 $148,358 $154,292 $160,464 $166,883 $173,558 $180,500 $187,720 Motorpool Charges Shop Overhead 5030 5500.750.5030‐5331.02 Fleet $7,802 $7,634 $15,395 $0 $15,395 $16,011 $16,651 $17,317 $18,010 $18,730 $19,479 $20,258 $21,068 $21,911 Motorpool Charges Shop OH Insurance 5030 5500.750.5030‐5331.03 Fleet $3,202 $2,571 $4,885 $0 $4,885 $5,080 $5,283 $5,494 $5,714 $5,943 $6,181 $6,428 $6,685 $6,952 Cost Allocation 5030 Constant $10,308 $12,504 $12,504 $0 $12,504 $12,504 $12,504 $12,504 $12,504 $12,504 $12,504 $12,504 $12,504 $12,504 Maintenance 5030 Maintenance $1,960 $1,713 $2,000 $0 $2,000 $2,080 $2,163 $2,250 $2,340 $2,434 $2,531 $2,632 $2,737 $2,846 $761,185 $819,524 $994,592 $28,645 $1,023,237 $1,043,665 $1,083,774 $1,125,420 $1,168,748 $1,213,797 $1,260,613 $1,309,238 $1,359,824 $1,412,421 5040 ‐ Transfer Station Personnel Services 5040 Labor $153,751 $160,321 $187,226 $0 $187,226 $195,651 $204,455 $213,655 $223,269 $233,316 $243,815 $254,787 $266,252 $278,233 Materials & Supplies 5040 Supplies $21,718 $18,021 $22,515 $0 $22,515 $23,416 $24,353 $25,327 $26,340 $27,394 $28,490 $29,630 $30,815 $32,048 Services and Charges 5040 ProfSvc $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rental Equipment 5040 5500.750.5040‐5308.03 ProfSvc $0 $100 $100 $0 $100 $105 $110 $116 $122 $128 $134 $141 $148 $155 Contract Services : 5040 5500.750.5040‐5315.00 ProfSvc $903,372 $1,156,364 $1,181,600 $0 $1,181,600 $1,240,680 $1,302,714 $1,367,850 $1,436,243 $1,508,055 $1,583,458 $1,662,631 $1,745,763 $1,833,051 Disposal Solid Waste 5040 5500.750.5040‐5316.00 Disposal $481,209 $543,752 $728,748 $56,850 $785,598 $785,598 $813,128 $841,561 $871,048 $901,587 $933,179 $965,825 $999,674 $1,034,726 Motorpool 5040 Fleet $95,938 $92,983 $93,673 $0 $93,673 $97,420 $101,317 $105,370 $109,585 $113,968 $118,527 $123,268 $128,199 $133,327 Cost Allocation 5040 Constant $3,444 $4,176 $4,176 $0 $4,176 $4,176 $4,176 $4,176 $4,176 $4,176 $4,176 $4,176 $4,176 $4,176 Maintenance 5040 Maintenance $12,831 $14,817 $3,300 $0 $3,300 $3,432 $3,569 $3,712 $3,860 $4,014 $4,175 $4,342 $4,516 $4,697 $1,672,263 $1,990,534 $2,221,338 $56,850 $2,278,188 $2,350,478 $2,453,822 $2,561,767 $2,674,643 $2,792,638 $2,915,954 $3,044,800 $3,179,543 $3,320,413 5060 ‐ Recycling Personnel Services 5060 Labor $1,774,644 $1,821,881 $1,960,568 $0 $1,960,568 $2,048,794 $2,140,990 $2,237,335 $2,338,015 $2,443,226 $2,553,171 $2,668,064 $2,788,127 $2,913,593 Materials & Supplies 5060 Supplies $29 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Minor Equipment : 5060 5500.750.5060‐5210.00 Supplies $5,730 $11,600 $6,000 $0 $6,000 $6,240 $6,490 $6,750 $7,020 $7,301 $7,593 $7,897 $8,213 $8,542 Signs : 5060 5500.750.5060‐5212.00 Supplies $550 $3,000 $1,000 $0 $1,000 $1,040 $1,082 $1,125 $1,170 $1,217 $1,266 $1,317 $1,370 $1,425 Cost Center Expense Escalation Actual Actual Budgeted Adjusted Projected Projected Projected Projected Projected Projected Projected Projected Projected Description Category Factor FY 2023 FY 2024 Budgeted Adjustments FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Fuel Unleaded/Diesel 5060 5500.750.5060‐5213.04 Fuel $111,480 $144,716 $123,773 $0 $123,773 $129,343 $135,163 $141,245 $147,601 $154,243 $161,184 $168,437 $176,017 $183,938 Solid Waste Collection Supplies 5060 5500.750.5060‐5225.00 Supplies $26,114 $32,950 $39,800 $0 $39,800 $41,392 $43,048 $44,770 $46,561 $48,423 $50,360 $52,374 $54,469 $56,648 Container Maint Supplies : 5060 5500.750.5060‐5226.00 Supplies $27 $300 $300 $0 $300 $312 $324 $337 $350 $364 $379 $394 $410 $426 Containers RTC 5060 5500.750.5060‐5227.00 Supplies $66,621 $73,000 $93,000 $0 $93,000 $96,720 $100,589 $104,613 $108,798 $113,150 $117,676 $122,383 $127,278 $132,369 Services and Charges 5060 ProfSvc $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Rental Equipment 5060 5500.750.5060‐5308.03 ProfSvc $0 $100 $100 $0 $100 $105 $110 $116 $122 $128 $134 $141 $148 $155 Lease Software 5060 5500.750.5060‐5309.02 ProfSvc $0 $15,675 $17,918 $0 $17,918 $18,814 $19,755 $20,743 $21,780 $22,869 $24,012 $25,213 $26,474 $27,798 Insurance Vehicles/Buildings 5060 5500.750.5060‐5311.00 ProfSvc $0 $100 $100 $0 $100 $105 $110 $116 $122 $128 $134 $141 $148 $155 Insurance Self (City Vehicles) 5060 5500.750.5060‐5311.01 ProfSvc $0 $2,000 $100 $0 $100 $105 $110 $116 $122 $128 $134 $141 $148 $155 Insurance Self (Non‐Vehicle Damage) 5060 5500.750.5060‐5311.04 ProfSvc $0 $2,000 $2,000 $0 $2,000 $2,100 $2,205 $2,315 $2,431 $2,553 $2,681 $2,815 $2,956 $3,104 Contract Services : 5060 5500.750.5060‐5315.00 ProfSvc $2,340 $24,600 $2,000 $0 $2,000 $2,100 $2,205 $2,315 $2,431 $2,553 $2,681 $2,815 $2,956 $3,104 Promotionals Activities 5060 5500.750.5060‐5342.00 ProfSvc $83,598 $80,403 $104,300 $0 $104,300 $109,515 $114,991 $120,741 $126,778 $133,117 $139,773 $146,762 $154,100 $161,805 Motorpool 5060 Fleet ($0) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Motorpool Charges Maintenance 5060 5500.750.5060‐5331.00 Fleet $168,812 $148,447 $159,884 $0 $159,884 $166,279 $172,930 $179,847 $187,041 $194,523 $202,304 $210,396 $218,812 $227,564 Motorpool Charges Replacement 5060 5500.750.5060‐5331.01 Fleet $385,097 $493,010 $543,464 $0 $543,464 $565,203 $587,811 $611,323 $635,776 $661,207 $687,655 $715,161 $743,767 $773,518 Motorpool Charges Shop Overhead 5060 5500.750.5060‐5331.02 Fleet $49,438 $54,004 $78,140 $0 $78,140 $81,266 $84,517 $87,898 $91,414 $95,071 $98,874 $102,829 $106,942 $111,220 Motorpool Charges Shop OH Insurance 5060 5500.750.5060‐5331.03 Fleet $17,595 $13,752 $23,090 $0 $23,090 $24,014 $24,975 $25,974 $27,013 $28,094 $29,218 $30,387 $31,602 $32,866 Cost Allocation 5060 Constant $99,684 $120,924 $120,924 $0 $120,924 $120,924 $120,924 $120,924 $120,924 $120,924 $120,924 $120,924 $120,924 $120,924 Maintenance 5060 Maintenance $21,168 $6,277 $9,100 $0 $9,100 $9,464 $9,843 $10,237 $10,646 $11,072 $11,515 $11,976 $12,455 $12,953 Operating Transfers Out 5060 Constant $104,245 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,917,171 $3,048,739 $3,285,561 $0 $3,285,561 $3,423,835 $3,568,172 $3,718,840 $3,876,115 $4,040,291 $4,211,668 $4,390,567 $4,577,316 $4,772,262 5070 ‐ Composting Personnel Services 5070 Labor $489,653 $425,967 $532,635 $0 $532,635 $556,604 $581,651 $607,825 $635,177 $663,760 $693,629 $724,842 $757,460 $791,546 Materials & Supplies 5070 Supplies $72,704 $58,918 $76,269 $0 $76,269 $79,320 $82,493 $85,793 $89,225 $92,794 $96,506 $100,366 $104,381 $108,556 Services and Charges 5070 ProfSvc $482 $400 $1,700 $0 $1,700 $1,785 $1,874 $1,968 $2,066 $2,169 $2,277 $2,391 $2,511 $2,637 Motorpool 5070 Fleet ($0) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Motorpool Charges Maintenance 5070 5500.750.5070‐5331.00 Fleet $115,269 $113,760 $106,890 $0 $106,890 $111,166 $115,613 $120,238 $125,048 $130,050 $135,252 $140,662 $146,288 $152,140 Motorpool Charges Replacement 5070 5500.750.5070‐5331.01 Fleet $393,042 $442,644 $513,453 $0 $513,453 $533,991 $555,351 $577,565 $600,668 $624,695 $649,683 $675,670 $702,697 $730,805 Motorpool Charges Shop Overhead 5070 5500.750.5070‐5331.02 Fleet $37,849 $48,341 $49,048 $0 $49,048 $51,010 $53,050 $55,172 $57,379 $59,674 $62,061 $64,543 $67,125 $69,810 Motorpool Charges Shop OH Insurance 5070 5500.750.5070‐5331.03 Fleet $8,517 $10,256 $23,824 $0 $23,824 $24,777 $25,768 $26,799 $27,871 $28,986 $30,145 $31,351 $32,605 $33,909 Cost Allocation 5070 Constant $34,020 $41,268 $41,268 $0 $41,268 $41,268 $41,268 $41,268 $41,268 $41,268 $41,268 $41,268 $41,268 $41,268 Maintenance 5070 Maintenance $5,662 $2,909 $2,000 $0 $2,000 $2,080 $2,163 $2,250 $2,340 $2,434 $2,531 $2,632 $2,737 $2,846 Operating Transfers Out 5070 Constant $0 $69,952 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $1,157,198 $1,214,414 $1,347,087 $0 $1,347,087 $1,402,001 $1,459,231 $1,518,878 $1,581,042 $1,645,830 $1,713,352 $1,783,725 $1,857,072 $1,933,517 5080 ‐ Solid Waste Projects Materials & Supplies 5080 Eliminate $39,839 $167,675 $5,000 ($5,000) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Services and Charges 5080 Eliminate $0 $112,633 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Capital 5080 Eliminate $859,288 $985,468 $557,000 ($557,000) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Operating Transfers Out 5080 Eliminate $0 $399,850 $343,000 ($343,000) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $899,127 $1,665,625 $905,000 ($905,000) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Incremental Expenses Commercial Collection Labor 5010 Labor Incremental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fleet Leases 5010 Fleet Incremental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fleet Variable 5010 Fleet Incremental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Residential Collection Labor 5020 Labor Incremental $0 $0 $0 $0 $0 $135,626 $141,730 $148,107 $154,772 $161,737 Fleet Leases 5020 Fleet Incremental $0 $0 $0 $0 $0 $88,733 $92,283 $95,974 $99,813 $103,805 Fleet Variable 5020 Fleet Incremental $0 $0 $0 $0 $0 $88,733 $92,283 $95,974 $99,813 $103,805 Recycling Labor 5060 Labor Incremental $0 $0 $177,722 $185,719 $194,076 $202,810 $423,873 $442,947 $462,880 $495,046 Fleet Leases 5060 Fleet Incremental $0 $0 $45,216 $47,025 $48,906 $50,862 $105,793 $110,025 $114,426 $178,504 Fleet Variable 5060 Fleet Variable Incremental $0 $7,709 $14,917 $22,720 $31,155 $40,262 $50,082 $60,646 $72,042 $84,292 Disposal 5060 Fleet Incremental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Composting Labor 5070 Labor Incremental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fleet Leases 5070 Fleet Incremental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Fleet Variable 5070 Fleet Incremental $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Incremental Expenses $0 $0 $0 $0 $0 $7,709 $237,855 $255,464 $274,137 $607,027 $906,042 $953,673 $1,003,745 $1,127,190 Budget Total $15,559,069 $17,972,160 $18,728,000 ($319,201) $18,408,799 $19,105,142 $20,195,796 $21,113,119 $22,072,664 $23,389,036 $24,716,753 $25,840,578 $27,016,067 $28,314,658 Fayetteville Recycling and Trash Collection Cost of Service Study for Solid Waste Inflated Capital Projects Funding Source FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 CIP Projects Capital Improvement Plan CIP Source Updated 5.5.2025 RTC Technology Equip Repl Rates $19,000 $3,000 $8,000 $7,000 $21,000 $11,600 $10,120 $11,544 $12,253 RTC Rate Study Rates $0 $0 $0 $0 $100,000 $20,000 $24,000 $28,800 $34,560 RTC Master Plan Expansion Rates $750,000 $800,000 $800,000 $850,000 $900,000 $820,000 $834,000 $840,800 $848,960 RTC Scale House Impr Rates $0 $0 $0 $0 $0 $0 $0 $0 $0 RTC Route Optimization & RFID System Rates $50,000 $40,000 $40,000 $40,000 $40,000 $42,000 $40,400 $40,480 $40,576 RTC Compost Site Impr Rates $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 RTC Compactors & Containers Rates $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 $160,000 Technology Equipment Replacements, Recycling Trash Collection Minor Equipment Rates $9,085 Fixed Assets Rates 8,000 Fiber Optic Cable (Other Funds) Minor Equipment Rates 47,297 RTC ‐ Solid Waste Compactors Improvements ‐ Solid Waste Rates 107,999 Container Costs Rates 200,786 RTC ‐ Solid Waste Commercial Rate Study Professional Services Rates 94,601 Fixed Assets Rates 51,174 Contingency ‐ Capital Project Rates 11,186 RTC ‐ Office and Transfer Station Exp, Site Improvements Improvements ‐ Solid Waste Rates 3,563 RTC ‐ Office and Transfer Station Exp, Solid Waste New Offices Professional Services Rates 699 Building Costs Rates 681 Building Efficiency Improvements, Energy Savings Performance Contract Building Costs Rates 1 RTC ‐ Container Maint Building Upgrade Improvements ‐ Solid Waste Rates 13,290 RTC ‐ Master Plan Expansion Vehicles & Equipment ‐ base Rates 292,696 Improvements ‐ Solid Waste Rates 665,683 Trannsfers to Funds ‐ Shop Rates 412,150 RTC ‐ Master Plan Expansion, RTC Facility Improvements Improvements ‐ Solid Waste Rates 23,603 Capital Prof Svcs ‐ Engineering Rates 68 RTC ‐ Scale House Improvements Building Costs Rates 54,390 Improvements ‐ Solid Waste Rates 274 RTC ‐ Route Optimization & RFID System Improvements ‐ Solid Waste Rates 11,696 RTC ‐ Truck Electrical Outlets & Block Heaters Improvements ‐ Solid Waste Rates 12,000 RTC ‐ Compost Site Improvements Vehicles & Equipment ‐ base Rates 12,912 Improvements ‐ Solid Waste Rates 462,961 RTC ‐ Compactors & Containers, Miscellaneous Containers ‐ RTC Rates 15,151 Container Costs Rates 70,000 RTC ‐ Recycling Grant, 2021 Recycle Dollies Containers ‐ RTC Rates 296 RTC‐ Recycling Grant, Publuic Spaces Recycling Containers Containers ‐ RTC Rates 10,244 RTC ‐ Recycling Grant, Food Waste Collection Buckets Containers ‐ RTC Rates 251 RTC ‐ Recycling Grant, Compost Collection Containers Containers ‐ RTC Rates $65 Subtotal Capital Costs $2,592,802 $1,179,000 $1,203,000 $1,208,000 $1,257,000 $1,421,000 $1,253,600 $1,268,520 $1,281,624 $1,296,349 Incremental Capital Costs related to Scenarios S1: Dual Stream Glass Curb Sort Trucks Capital Lease $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Containers Rates $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Containers ‐ Grant Funding Grant Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 S2: Dual Stream Cart Recycling Trucks Capital Lease $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Containers ‐ Debt Funded Proposed Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Containers ‐ Cash Funded Rates $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Containers ‐ Grant Funding Grant Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 S3: All‐in‐one Cart Recycling Weekly Trucks Capital Lease $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Containers ‐ Debt Funded Rates $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Containers ‐ Cash Funded Rates $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Containers ‐ Grant Funding Grant Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 S4: All‐in‐one Cart Recycling EOW Trucks Capital Lease $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Containers ‐ Debt Funded Proposed Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Containers ‐ Cash Funded Rates $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Containers ‐ Grant Funding Grant Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Capital Costs $2,592,802 $1,179,000 $1,203,000 $1,208,000 $1,257,000 $1,421,000 $1,253,600 $1,268,520 $1,281,624 $1,296,349 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Summary by Funding Source Rates Rates $2,592,802 $1,179,000 $1,203,000 $1,208,000 $1,257,000 $1,421,000 $1,253,600 $1,268,520 $1,281,624 $1,296,349 Existing debt Existing debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Proposed Debt Proposed Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Capital Lease Capital Lease $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Grant Funding Grant Funding $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,592,802 $1,179,000 $1,203,000 $1,208,000 $1,257,000 $1,421,000 $1,253,600 $1,268,520 $1,281,624 $1,296,349 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 SCENARIO RELATED INCREMENTAL CAPITAL S2: Dual Stream Cart Recycling Trucks Assumed # of Trucks Needed 12.00 7.00 8.00 8.00 8.00 8.00 8.00 8.00 9.00 9.00 Funding Source FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 Assumed Cost of Trucks $500,000 $515,000 $530,450 $546,364 $562,754 $579,637 $597,026 $614,937 $633,385 $652,387 Truck Costs $0 $3,605,000 $0 $0 $0 $0 $0 $0 $0 $0 Replacement Truck Credit (2,091,000)00000000 Recognized Related Truck Costs $0 $1,514,000 $0 $0 $0 $0 $0 $0 $0 $0 Containers 60 Gallon Cart ‐ Rate $60.00 $61.80 $63.65 $65.56 $67.53 $69.56 $71.64 $73.79 $76.01 $78.29 Start up 60 Gallon Cart ‐ Amount Needed 27,922 28,645 29,263 29,881 30,499 31,117 31,735 32,352 32,971 33,590 Carts per HH 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Start up Container Costs $0 $3,540,522 $0 $0 $0 $0 $0 $0 $0 $0 Incremental Amount of Carts Needed 0 723 618 618 618 618 618 617 619 619 Growth Related Container Costs $0 $0 $39,338 $40,518 $41,734 $42,986 $44,275 $45,530 $47,048 $48,459 Grants for Carts $0$0 $0$0$0$0$0$0$0$0 Subtotal S2 $0 $5,054,522 $39,338 $40,518 $41,734 $42,986 $44,275 $45,530 $47,048 $48,459 S3: All‐in‐one Cart Recycling Weekly Trucks Assumed # of Trucks Needed 126 66666677 Assumed Cost of Trucks $380,000 $391,400 $403,142 $415,236 $427,693 $440,524 $453,740 $467,352 $481,373 $495,814 Start‐up Truck Costs $0 $2,348,400 $0 $0 $0 $0 $0 $0 $0 $0 Replacement Truck Credit (2,091,000)00000000 Recognized Related Truck Costs $0 $257,400 $0 $0 $0 $0 $0 $0 $0 $0 Containers 60 Gallon Cart ‐ Rate $60.00 $61.80 $63.65 $65.56 $67.53 $69.56 $71.64 $73.79 $76.01 $78.29 Start up 60 Gallon Cart ‐ Amount Needed 27,922 28,645 29,263 29,881 30,499 31,117 31,735 32,352 32,971 33,590 Start up Container Costs $0 $1,770,261 $0 $0 $0 $0 $0 $0 $0 $0 Incremental Amount of Carts Needed 0 723 618 618 618 618 618 617 619 619 Growth Related Container Costs $0 $0 $39,338 $40,518 $41,734 $42,986 $44,275 $45,530 $47,048 $48,459 Grants for Carts $0$0 $0$0$0$0$0$0$0$0 Subtotal S3 $0 $2,027,661 $39,338 $40,518 $41,734 $42,986 $44,275 $45,530 $47,048 $48,459 S4: All‐in‐one Cart Recycling EOW Trucks Assumed # of Trucks Needed 124 44444444 Assumed Cost of Trucks $430,000 $442,900 $456,187 $469,873 $483,969 $498,488 $513,442 $528,846 $544,711 $561,052 Start‐up Truck Costs $0 $1,771,600 $0 $0 $0 $0 $0 $0 $0 $0 Replacement Truck Credit (1,771,600)00000000 Recognized Related Truck Costs $0$0 $0$0$0$0$0$0$0$0 Containers 90 Gallon Cart ‐ Rate $90.00 $92.70 $95.48 $98.35 $101.30 $104.33 $107.46 $110.69 $114.01 $117.43 Start up 90 Gallon Cart ‐ Amount Needed 27,922 28,645 29,263 29,881 30,499 31,117 31,735 32,352 32,971 33,590 Start up Container Costs $0 $2,655,392 $0 $0 $0 $0 $0 $0 $0 $0 Incremental Amount of Carts Needed 0 723 618 618 618 618 618 617 619 619 Growth Related Container Costs $0 $0 $59,007 $60,777 $62,601 $64,479 $66,413 $68,295 $70,572 $72,689 Grants for Carts $0$0 $0$0$0$0$0$0$0$0 Containers Subtotal S4 $0 $2,655,392 $59,007 $60,777 $62,601 $64,479 $66,413 $68,295 $70,572 $72,689 From:Nierengarten, Peter To:CityClerk Cc:Macedo, Keith Subject:City Council Agenda Addition Date:Wednesday, July 9, 2025 8:56:23 AM Attachments:Fayetteville Solid Waste - Agenda Session Presentation 061025.pdf Could you please add this presentation to agenda item C2 – Recycling and Trash Division Rate Study? In summary the presentation provides: A financial overview of RTC’s existing financials – highlighting revenue deficiency to cover existing programs Review of existing curb-sort recycling programs and challenges resulting in depressed waste diversion rates An analysis of three cart-based recycling options and recommendation for weekly all-in-one cart based recycling Costs and rate impact of implementing weekly cart based recycling – cart-based recycling results in a lower rate increase than continuing with the existing curb-sort program Summary of the benefits of transitioning to cart-based recycling – benefit include: Ability to expand service to multi-family and commercial customers Doubling our recycling collections Improved route driver safety Reduced RTC cost Savings to customers due to lower rate increases Please let me know if you have any questions. Peter Nierengarten, PE Environmental Director Sustainability Department City of Fayetteville, Arkansas pnierengarten@fayetteville-ar.gov 479.575.8272 o 479.601.7834 c Website | Facebook | Twitter | Instagram | YouTube City of Fayetteville Solid Waste Cost of Service Study June 10, 2025 Image credit: https://www.fayetteville-ar.gov/3160/About-Fayetteville 1.Key Objectives 2.Background 3.Operational Scenarios 4.Financial Plan 5.Findings Summary 2 Agenda 3 1. Key Objectives 1. Key Objectives 4 •Scope ›Existing program review ›Financial Plan and COS Analysis •Key Objectives ›Develop ten-year forecast that recovers the full cost of service ›Evaluate Changes to Operations ›Propose rates that promote fiscal sustainability •Data Driven Process: •Historical Billing Statistics •Historical Financial Data •Collection Routing Data •Current Budget and Financial Plan •Capital Improvement Plan 1. Key Objectives: Revenue Sufficiency for Recycling and Trash Collections (RTC) Enterprise Fund 5 Gross Revenues Revenue Requirements FINANCIAL PLAN REVENUE SUFFICIENCY $ Surplus $ (Deficiency) $ Balanced 6 2. Background 2. Background –Recent Trends 7 $18.94 2. Background –Status Quo Baseline Financials •Revenue Requirements and Reserves shown as status quo with no rate increases 8 Service Class Trash Recycling Food Waste Yard Waste Bulk HHW Residential Collection 1x Week 32-64-96 gal $ for Extra Bags 1x Week 2-18 Gal Bins Curbsort 1x EOW 5 gal PILOT program 1x Week No Cart On-Call 1 pickup / year $ for Add’l pickups 4x year resident free drop off at Transfer Station Self-haul to Drop-off Site Commercial & Roll off Collection 1x –6x Week 2-8 cy Dumpsters & Compactors 20-40 cy Roll-offs 1x –6x Week 2-8 cy Dumpsters & Compactors (Cardboard, Glass, Paper, Bottle/Cans) 3x Week 64 Gal Carts 2-4 cy Dumpster Self-haul to Compost Facility Self-haul to Drop-off Site Self-haul to Drop-off Site Transfer Station Inside / Outside City Tip Fee Recycle Drop Off Compost for Sale / Delivery Compost for Sale Inside / Outside City Tip Fee Self-haul to Drop-off Site 2. Background: Services Overview 9 96 64 32 2. Current Recycling Programs ›Curbsort Recycling Program –Primarily Single Family –Staff sort bins at curb (7 materials) –30 –40% participation rate –Low contamination (1%) –43% of collections ›Apartment Recycling –Large Apartment Complexes (10) w/parking lot space –Residents sort recyclables –Higher contamination –plastics –1% of collections ›Commercial Recycling –Glass, Paper & Cardboard –Moderate Contamination –37% of collections ›Recycling Drop-off (w/part time staff) –2 locations –Plastics Contamination –19% of collections 2. Background–Tonnages 12 Metal and Aluminium 6% Glass 20% Cardboard and Paper 65% Plastics 5% HHW & E Waste 1% Comingled 3% 2024 Recycling Tonnage Breakdown 2024 Waste Diversion Rate = 20% Source: Fayetteville Transparency Website https://www.fayetteville-ar.gov/3766/Transparency Material Type FY 2024 Food Waste 1,218 Yard Waste 7,454 Recyclables 6,423 Solid Waste 62,147 Total Tonnages 77,242 Source: City transparency collection end market reports. Transfer Station 16,512 Commercial Drop Box 10,272 Source: City waste management reports 15,095 tons diverted 2. Background: Residential Waste Composition (tons per year) 13 Capture Rate = 40% (2534 tons) residential recyclables collected Source: Sept 2024 Fayetteville Waste Characterization Study 3,778 tons 2,534 tons Challenge with existing Curbsort Recycling •Low Capture Rate •Driver Injuries (3x) •Driver Safety •Bin Hazards •Weather •Traffic •Driver Turnover •Collection Efficiency •Messaging/Priorities •Truck Idling •Growth/Equity 15 3. Operational Scenarios Recycling Options Status Quo – Current Curbsort Recycling S1: Dual Stream Cartbased Recycling S2: Every week (EW)S3: Every other week (EOW) All-in-one Cartbased Recycling *Glass Collection TBD Recycling Options Analysis All-in-one weekly Cart Based Recycling has additional benefits: •Reduced Fleet due to Redundancy •Continued Recycling Transparency •Regional Coordination Tons of Recyclables Captured Employee Injury/Safety Efficiency Customer Convenience Equity/ Growth Messaging/ Priorities Contamination Management Capital Cost 1-yr Rate Increase 5-yr Rate Increase Status Quo 2,534 High Slow Medium Very Limited Weak Manual Sort n/a 9.50%$7.22 S1: Dual Stream Cart Based Recycling 3,727 Low Medium Medium Good Strong Anti- Contamination Software $5M 12.50%$6.93 S2: All-in-one Cart Based Recycling (EW)5,083 Low Fast High High Potential Very Strong Anti- Contamination Software $2.0M 9.50%$5.78 S3: All-in-one Cart Based Recycling (EOW)5,083 Low Fast Medium High Potential Strong Anti- Contamination Software $2.6M 6.50%$4.88 19 4. Financial Plan 4. Financial Plan –Key Assumptions •Growth Assumed at 2% •Inflation in Unit Costs from 4% to 7% •Revenues based on billing statistics and financials ›Escalated for growth & rate adjustments •Expenses based on FY25 Budget ›Escalated for Inflation & Changes in Operations •Targeted 120-day operating reserve balance 20 $2M from RTC reserves (or grants) for Carts and Trucks 4. Financial Plan –Projected Revenue 21 •All-in-one Cart Based Recycling (EW) provides sufficient revenue to cover expenses 4. Financial Plan –Recycling Scenarios 22 Bill Impacts –64-gal FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 Total Bill Adj. Status Quo 9.50%9.50%5.50%4.50%4.50%38.1% S2: All-in-one Cart Recycling 9.50%7.50%3.50%3.50%3.50%30.5% Status Quo $18.94 $20.74 $22.71 $23.96 $25.04 $26.16 n/a S2: All-in-one Cart Recycling $18.94 $20.74 $22.29 $23.08 $23.88 $24.72 n/a $ Change –Status Quo n/a $1.80 $1.97 $1.25 $1.08 $1.13 $7.22 S2 -Adjust n/a $1.80 $1.56 $0.78 $0.81 $0.84 $5.78 Tons Recycled Trucks Weekly Routes Households per Route per Day Vehicles Costs Cart Costs Operating Expenses Status Quo 2,534 12 50 465 $750,000 $160,000 $19,105,142 S2: All-in-one Cart Recycling 5,083 6 23 1,008 $257,400 $1,770,261 $17,663,957 •All-in-one Cart Based Recycling (EW) has lower operating expenses •All-in-one Cart Based Recycling (EW) allows lower rate increases 4. Financial Plan –Scenario 2 Rate Revenue Adj. 23 •All-in-one Cart Based Recycling (EW) rebuilds RTC reserves by 2029 All-in-one Cart Based Recycling (EW)Status Quo: Curbsort Recycling 24 5. Findings & Recommendations 5. Findings & Recommendations –Rate Comparison •Most other NWA Cities provide EW Cart Based Recycling •No Peer City provides level of service as high as Fayetteville RTC ›Subscription or drop-off yard waste ›PAYT -(32, 64, 96 gal carts) ›Add EOW Trash Collection option –NEW! ›Residential Food Waste Collection –NEW! ›Glass Recycling •Fayetteville provides higher level of services at rates that are comparable to other peer cities •Rate Study to City Council in July •Transition to Cart Based Recycling with Every Week (EW) Collections –S2 ›Issue RFP for Processing Recyclables –Glass? ›Order new trucks ›Order recycling carts ›Design Education & Outreach Campaign 5. Recommendations & Findings –Next Steps 26 •Improved Recycling Program Diversion & Equity ›Expand to Multi-Family and Commercial Customers ›2x Recycling Collections •Improved Driver Safety ›Reduce employee injuries ›Reduced employee turnover •Reduced RTC Cost & Fiscal Sustainability ›Lower Operating Expenses ›Provides sufficient revenue to cover expenses ›Rebuild RTC reserves by 2029 •Lower Rate Increases ›2-yr phase in with 9.5% rate increase in 2026 and 7.5% in 2027 (CPI = 4.8%) ›Fayetteville Rates continue to be competitive with peer Cities •Plan results in compliance with all policy goals and fully funds CIP 5. Recommendations & Findings -Summary 27 2828 Thank you! 29 Raftelis Contacts: Thierry Boveri, CGFM, Vice President tboveri@raftelis.com Sarah Neely, Senior Consultant sneely@raftelis.com