HomeMy WebLinkAbout11-04-19 City Commission Packet Materials - A2. Res 5102, Establishing Rates for Solid Waste Services for FY20 and FY21
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Kristin Donald, Finance Director
SUBJECT: Commission Resolution No. 5102 – Establishing rates for Solid Waste
services for the City of Bozeman for fiscal year 2020 and fiscal year 2021
MEETING DATE: November 4, 2019
AGENDA ITEM: Action
RECOMMENDATION: Approve Resolution No. 5102 – Updating the City’s Solid Waste
rates for effective bills due December 15, 2019 and September 15, 2020.
BACKGROUND:
The City recently underwent a rate study that was presented and accepted by the Commission
August 19, 2019.
The study outlined the following recommendations:
• Residential: Continue incentives for smaller carts (no increases), develop modest
rate increases for customers with larger cart sizes
• Recycling: Maintain current rates to encourage diversion
• Temporary Dumpsters: Implement delivery and disposal fees
• Cardboard (OCC) Dumpster: Implement new collection fees (currently no
charge)
• Commercial Dumpster and Roll-off: Need for greater increases to recover the
cost of service
224
Based on the Commission feedback on August 19th Commission Meeting we have prepared
Resolution 5102 with the recommended rates from the study for FY2020 and FY2021.
ALTERNATIVES: As suggested by the Commission
FISCAL EFFECTS: This rate increase will go into effect for garbage service for bills due
December 15, 2019. It is estimated to increase solid waste revenues by approximately $173,091
for the rest of the year, all of which is deposited to the Solid Waste Fund.
For our typical resident, utilizing a 65 gallon tote for weekly service, their garbage fee will
increase by $0.57/month or 3% increase, from $19.09 to $19.66. While totes under 65 gallons
and recycling remain at the current rates.
Attachment: Resolution No. 5102
Rate Study Final Report
Report compiled on October 22, 2019
225
RESOLUTION 5102
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, ESTABLISHING RATES FOR SOLID WASTE SERVICES FOR THE CITY
OF BOZEMAN.
WHEREAS, the City Commission of the City of Bozeman did adopt Ordinance No.
1493 on the 17th day of May 1999, providing for the billing of solid waste collection fees on a
monthly basis; and
WHEREAS, said Ordinance No. 1493 provides for the setting of fees by resolution; and
WHEREAS, the City Commission of the City of Bozeman, following notice and public
hearing established a new Rate Schedule for the City of Bozeman’s Solid Waste Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, that the new rates for water services, based on a 30-day month, shall
become effective beginning with the bills due December 15, 2019 and September 15, 2020 as
follows, to wit:
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Resolution 5102, Establishing Rates for Solid Waste Services for the City of Bozeman
Page 2 of 5
Section 1 – Residential Rates
The schedule of rates for residential charges is:
Current FY20 FY21
35 Gal 1 pickup monthly 10.80 10.80 10.80
35 Gallon 14.52 14.52 14.52
45 Gallon 14.52 14.52 14.52
65 Gallon 19.09 19.66 20.25
100 Gallon 24.46 25.19 25.95
220 Gallon 40.85 42.08 43.34
300 Gallon 51.21 52.75 54.33
450 Gallon 73.79 76.00 78.28
Recycling 65/100gal 9.93 9.93 9.93
Recycling 300gal 15.45 15.45 15.45
Residential Refuse Monthly Rates
Other Residential Chagres Current/FY20/FY21
Extra Refuse bags $2 kitchen and $6 for yard bag
Extra pick up $10
Deposit for Tentant 35gal/45 gal -$50, 65gal-$65, 100 gal- $100, Recycling-$35
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Resolution 5102, Establishing Rates for Solid Waste Services for the City of Bozeman
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Section 2 – Commercial Rates
The schedule of rates for Commercial garbage charges is:
The schedule of rates for Commercial cardboard recycling dumpster charges is:
Dumpster Size 1X 2X 3X 4X 5X 6X 2X a Month
2 Cubic Yards 92.14 159.95 227.76 295.57 363.38 431.18 42.56
3 Cubic Yards 102.50 180.67 258.83 337.00 415.16 493.33 47.36
4 Cubic Yards 112.85 201.38 289.90 378.41 466.94 555.46 52.14
6 Cubic Yards 133.57 242.80 352.03 461.26 570.50 679.73 61.70
8 Cubic Yards 154.28 284.23 414.17 544.11 674.05 751.98 71.26
Dumpster Size 1X 2X 3X 4X 5X 6X 2X a Month
2 Cubic Yards 116.05 232.09 348.14 464.19 580.24 696.28 53.56
3 Cubic Yards 121.09 242.18 363.27 484.36 605.45 726.54 55.89
4 Cubic Yards 126.13 252.26 378.40 504.53 630.66 756.79 58.21
6 Cubic Yards 136.22 272.43 408.65 544.87 681.09 817.30 62.87
8 Cubic Yards 146.30 292.60 438.91 585.21 731.51 877.81 67.57
Dumpster Size 1X 2X 3X 4X 5X 6X 2X a Month
2 Cubic Yards 118.58 237.16 355.73 474.31 592.89 711.47 54.73
3 Cubic Yards 123.62 247.24 370.86 494.48 618.10 741.72 57.06
4 Cubic Yards 128.66 257.33 385.99 514.65 643.31 771.98 59.38
6 Cubic Yards 138.75 277.50 416.24 554.99 693.74 832.49 64.04
8 Cubic Yards 148.83 297.67 446.50 595.33 744.16 893.00 68.69
FY20
Collection per Week
FY21
Collection per Week
Current
Collection per Week
Dumpster Size 1X 2X 3X 4X 5X 6X 2X a Month
Current
FY2020 28.25 56.50 84.74 112.99 141.24 169.49 13.04
FY2021 31.07 62.15 93.22 124.29 155.36 186.44 14.34
Cardboard Dumpster Customers Collection per Week
Free with Garbage Service
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Resolution 5102, Establishing Rates for Solid Waste Services for the City of Bozeman
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Section 3 – Temporary Dumpster/Roll off Rates
Rates are set based on the cost of service, which is based on dumpster delivery, collection,
and disposal. Rates will be set based on costs by the Solid Waste Superintendent.
Section 4 – Billing Procedures
Charges for solid waste services under this schedule shall be made a part of the current
monthly bill, to be shown by separate item on such bill. If any bill is not paid on or before the
fifteenth day of that month, it will then become delinquent; and if not paid in full by the fifteenth
day of the following month, solid waste service to the premises involved may be discontinued,
after a ten-day written notice.
Section 5 – Late Fee
For those accounts that become delinquent, a 1.5 percent (1.5%) late fee will be assessed
on the next bill. The minimum late fee shall be $1.00.
Section 6 – Protests
In cases where water service charges under this schedule are claimed to be unfair,
unreasonable, or not in proportion to charges made to other water customers, the person or persons
against whom such charges are made may apply to the City Manager for an adjustment, stating the
circumstances. The City Manager, or his designated representative, may make such adjustment of
the water charges as is deemed necessary, fair and equitable.
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Resolution 5102, Establishing Rates for Solid Waste Services for the City of Bozeman
Page 5 of 5
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 4th day of November 2019; and
effective beginning with that billing period which will first appear on the December 2019 Solid
Waste service billing.
___________________________________
CYNTHIS L. ANDRUS
Mayor
ATTEST:
_____________________________________
ROBIN CROUGH
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
230
Solid Waste Cost of Service and
Rate Design Study
City of Bozeman, Montana
FINAL REPORT
September 13, 2019
231
Solid Waste Rate Study Table of Contents
City of Bozeman, Montana TOC-1 Burns & McDonnell
TABLE OF CONTENTS
Page No.
EXECUTIVE SUMMARY ...........................................................................................................1
1.0 INTRODUCTION AND CURRENT SYSTEM .......................................................... 1-1 1.1 Project Approach ................................................................................................. 1-1
1.1.1 Data Requests........................................................................................ 1-1
1.1.2 Project Kick-Off Meeting ..................................................................... 1-1 1.1.3 Ongoing Staff Communications ........................................................... 1-2 1.2 Report Organization ............................................................................................. 1-2 1.3 Current Services and Rates .................................................................................. 1-3
1.3.1 Residential............................................................................................. 1-3
1.3.2 Recycling .............................................................................................. 1-3 1.3.3 Temporary Dumpster ............................................................................ 1-3 1.3.4 Commercial Dumpster .......................................................................... 1-3 1.3.5 Commercial Roll-Off ............................................................................ 1-4
2.0 COST OF SERVICE ..................................................................................................... 2-1
2.1 Methodology Overview ....................................................................................... 2-1 2.2 Development of the Test Year Revenue Requirement ........................................ 2-2 2.2.1 Selection of the Test Year ..................................................................... 2-2 2.2.2 Relationship between the Budget and the Revenue Requirement ........ 2-2
2.2.3 Development of the Revenue Requirement Forecast ............................ 2-3
2.2.4 Allocation of Costs to Cost Centers ...................................................... 2-4 2.2.5 Allocation to Customer Classes ............................................................ 2-5 2.2.6 Determination of Billing Units ............................................................. 2-6 2.2.7 Residential............................................................................................. 2-6
2.2.8 Recycling .............................................................................................. 2-7
2.2.9 Temporary Dumpster ............................................................................ 2-7 2.2.10 Commercial Dumpster .......................................................................... 2-7 2.2.11 Commercial Roll-off ............................................................................. 2-9 2.2.12 Calculation of the Cost of Service ........................................................ 2-9
2.2.13 Residential............................................................................................. 2-9
2.2.14 Recycling. ........................................................................................... 2-11 2.2.15 Temporary Dumpster .......................................................................... 2-11 2.2.16 Commercial Dumpster ........................................................................ 2-12 2.2.17 Commercial Roll-Off .......................................................................... 2-13
3.0 RATE DESIGN .............................................................................................................. 3-1
3.1 Net Revenue from Current Rates ......................................................................... 3-1 3.2 90-Day Reserve .................................................................................................... 3-2
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Solid Waste Rate Study Table of Contents
City of Bozeman, Montana TOC-2 Burns & McDonnell
3.3 Proposed Rates ..................................................................................................... 3-3 3.3.1 Approach to Proposed Rates ................................................................. 3-4
3.3.2 Annual Rate Adjustment Summary ...................................................... 3-4
3.3.3 Residential............................................................................................. 3-5 3.3.4 Recycling .............................................................................................. 3-6 3.3.5 Temporary Dumpster ............................................................................ 3-7 3.3.6 Commercial Dumpster .......................................................................... 3-7
3.3.7 Commercial Roll-Off ............................................................................ 3-9
3.4 Net Revenue with Recommended Rates .............................................................. 3-9 3.5 Key Findings and Recommendations ................................................................ 3-11
4.0 BENCHMARK ANALYSIS ..........................................................................................4-1 4.1 Methodology ........................................................................................................ 4-1
4.2 Residential Benchmarking ................................................................................... 4-1
4.2.1 Residential Rates and Services Comparison ......................................... 4-1 4.2.2 Residential Refuse Collection Service .................................................. 4-4 4.2.3 Residential Curbside Recycling Collection Service ............................. 4-4 4.2.4 Residential Separate Yard Waste Collection Service ........................... 4-5
4.2.5 Residential Bulky Waste Collection Service ........................................ 4-6
4.3 Commercial Dumpster Benchmarking ................................................................ 4-7 4.4 Commercial Roll-off Benchmarking ................................................................... 4-8 4.5 Benchmark Analysis Key Findings ..................................................................... 4-9
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Solid Waste Rate Study Table of Contents
City of Bozeman, Montana TOC-3 Burns & McDonnell
LIST OF TABLES
Page No.
Table ES-1: Solid Waste Revenue Requirement Forecast ........................................................................... 2 Table ES-2: Revenue Requirement by Cost Center ..................................................................................... 3 Table ES-3: Recovery Basis for Cost Centers by Customer Class .............................................................. 3
Table ES-4: Over (Under) Recovery by Customer Class - Current Rates ................................................... 4 Table ES-5: Five-Year Reserve Forecast Based on Current Rates .............................................................. 5 Table ES-6: Recommended Rate Increase Percentages ............................................................................... 7
Table ES-7: Five-Year Reserve Forecast Based on Recommended Rates .................................................. 7 Table 1-1: Current Front-Load Refuse Monthly Rates ........................................................................... 1-4 Table 2-1: Solid Waste Revenue Requirement ....................................................................................... 2-3 Table 2-2: Cost Centers .......................................................................................................................... 2-4 Table 2-3: Revenue Requirement by Cost Center................................................................................... 2-5 Table 2-4: Recovery Basis for Cost Centers by Customer Class ............................................................ 2-6 Table 2-5: Residential Refuse Billing Unit Forecast .............................................................................. 2-6 Table 2-6: Recycling Billing Unit Forecast ............................................................................................ 2-7 Table 2-7: Temporary Dumpster Billing Unit Forecast .......................................................................... 2-7 Table 2-8: Commercial Dumpster Collections Forecast ......................................................................... 2-8 Table 2-9: Commercial Roll-off Pull Forecast........................................................................................ 2-9
Table 2-10: Residential Cost of Service ................................................................................................. 2-10 Table 2-11: Residential Monthly Cost of Service by Cart Size .............................................................. 2-11 Table 2-12: Recycling Monthly Cost of Service by Cart Size ................................................................ 2-11
Table 2-13: Temporary Dumpster Cost of Service by Request .............................................................. 2-11 Table 2-14: Commercial Dumpster Refuse Cost of Service ................................................................... 2-12 Table 2-15: OCC Dumpster Cost of Service .......................................................................................... 2-13
Table 2-16: Commercial Roll-Off Cost of Service ................................................................................. 2-14 Table 3-1: Over (Under) Recovery by Customer Class Based on Current Rates ................................... 3-1 Table 3-2: 90-Day Reserve Based on Current Rates .............................................................................. 3-3Table 3-3: Recommended Rate Increase Percentages ............................................................................ 3-4 Table 3-4: Recommended Monthly Rates for Residential Refuse .......................................................... 3-6 Table 3-5: Recommended Monthly Rates for Commercial Dumpster Refuse Customers ..................... 3-7 Table 3-6: Recommended Monthly Rates for OCC Dumpster Customers ............................................. 3-8 Table 3-7: Recommended Rates for Commercial Roll-off ..................................................................... 3-9 Table 3-8: Over (Under) Recovery by Customer Class Based on Recommended Rates........................ 3-9 Table 3-9: 90-Day Reserve Based on Recommended Rates ................................................................. 3-10Table 4-1: Residential Services Available for Benchmark Cities ........................................................... 4-2 Table 4-2: Residential Base Rates and Services ..................................................................................... 4-3 Table 4-3: Refuse Collection .................................................................................................................. 4-4 Table 4-4: Curbside Recycling Collection .............................................................................................. 4-5
Table 4-5: Separate Yard Waste Collection ............................................................................................ 4-6 Table 4-6: Bulky Waste Collection ......................................................................................................... 4-7
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Solid Waste Rate Study Table of Contents
City of Bozeman, Montana TOC-4 Burns & McDonnell
LIST OF FIGURES
Page No.
Figure ES-1: Annual Net Revenue by Customer Class Based on Current Rates ......................................... 5 Figure ES-2: Five-Year Reserve Forecast Based on Current Rates ............................................................. 6 Figure ES-3: Five-Year Reserve Forecast Based on Recommended Rates ................................................. 8
Figure 2-1: Breakdown of Residential Cost of Service (Monthly Cost per Resident and Percentage of Total) . 2-10 Figure 3-1: Annual Net Revenue by Customer Class Based on Current Rates ..................................... 3-2 Figure 3-2: Net Revenue and Reserve Fund Days Based on Current Rates .......................................... 3-3
Figure 3-3: Recommended Rate Increase Percentages .......................................................................... 3-5 Figure 3-4: Recommended Monthly Rates for Residential Refuse........................................................ 3-6 Figure 3-5: Net Revenue by Customer Class Based on Recommended Rates .................................... 3-10 Figure 3-6: Net Revenue and Reserve Fund Days Based on Recommended Rates............................. 3-11 Figure 4-1: Residential Base Rate Comparison ..................................................................................... 4-3 Figure 4-2: Commercial Dumpster Cost per CY Comparison ............................................................... 4-8 Figure 4-3: Commercial Roll-off Total Cost Comparison ..................................................................... 4-9
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Solid Waste Rate Study Table of Contents
City of Bozeman, Montana TOC-5 Burns & McDonnell
APPENDIX
o Schedule 1: Test Year
o Schedule 2: Five-Year Forecast
o Schedule 3: Revenue Requirement
o Schedule 4: Residential Cost of Service
o Schedule 5: Recycling Cost of Service
o Schedule 6: Temporary Dumpster Cost of Service
o Schedule 7: Commercial Dumpster Cost of Service
o Schedule 8: Commercial Roll-off Cost of Service
o Schedule 9: Net Revenue - Current Rates
o Schedule 10: Net Revenue - Recommended Rates
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Solid Waste Rate Study Executive Summary
City of Bozeman, Montana ES-1 Burns & McDonnell
EXECUTIVE SUMMARY
The City of Bozeman, MT (City) retained Burns & McDonnell to conduct a solid waste cost of service
and rate design study (Study) for the Solid Waste Division that is part of the Public Works Department.
The purpose of this study was to determine the total cost of providing residential and commercial refuse
and recycling collection services, equitably distribute the cost to customers and design rates to safeguard
the financial integrity of the operation. This report provides a discussion of the methodology utilized to
conduct the analysis, the cost of providing services as determined by the analysis and recommended rates.
Report Organization
This report is organized into four sections, plus this Executive Summary and an Appendix containing the
financial schedules. Section 1 includes an overview of the services provided and the current rates.
Section 2 focuses on the cost of service analysis and includes an overview of the methodology utilized to
determine the cost of service for the City’s solid waste system as well as the cost of service-based rates.
Section 3 provides the projected financial impact of the current rates, and presents the recommended rates
based on the current and future operations. Section 4 provides a benchmark analysis to compare the
City’s programs and rates for residential and commercial services to those of similar cities.
Overview of Solid Waste Services Provided by the City
The City, in competition with the region’s private haulers, provides residential and commercial refuse and
recycling collection services. Key services include the following:
•Residential refuse collection. The City provides scheduled residential refuse and yard waste
collection for single-family homes. Bulk item pickup is also provided on a call-in basis.
•Recycling collection. The City provides curbside recycling cart collection for residential and
commercial customers on a subscription basis.
•Temporary dumpster collection. The City provides residential customers with temporary
refuse and yard waste dumpsters by request for home projects.
•Commercial dumpster collection. The City provides commercial dumpster refuse and
cardboard collection with frequency between twice a month and six times per week.
•Commercial roll-off. The City provides roll-off container collection and disposal for
commercial customers, as well as City departments, non-profit organizations, and Gallatin
County.
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Solid Waste Rate Study Executive Summary
City of Bozeman, Montana ES-2 Burns & McDonnell
Cost of Service
Section 2 describes the tasks involved in conducting the solid waste cost of service analysis. This section
details steps to develop an annual revenue requirement for a Test Year. The revenue requirement
represents the total revenue that solid waste operations will need to recover during a year in order to fund
all expenses associated with the provision of solid waste services. After developing the revenue
requirement for the Test Year, Burns & McDonnell developed a five-year forecast and projected costs for
customer classes that include residential, recycling, temporary dumpster, commercial dumpster, and
commercial roll-off. Table ES-1 provides an overview of the revenue requirement for the five-year
forecast.
Table ES-1: Solid Waste Revenue Requirement Forecast
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Administration1 $987,864 $1,020,910 $1,050,739 $1,081,450 $1,113,069
Operating & Capital2
$3,619,203 $3,760,611 $3,858,074 $3,958,946 $4,063,359
Total3 $4,607,067 $4,781,521 $4,908,813 $5,040,395 $5,176,428
1.Includes building maintenance, collection equipment route software, and overhead for theCity's Public Works Department.
2.Includes costs of City collection, refuse disposal, recycling processing, and equipmentreplacement.
3.Values may not calculate exactly due to rounding.
Table ES-2 shows the five-year revenue requirement, allocated by the cost centers (as shown in the first
column). On average, City expenses were projected to grow annually by three percent. City staff
provided a forecast of the annual cost of equipment replacement and other capital improvement projects
(CIP). Annual contributions to CIP were included in the revenue requirement to ensure the City can
sufficiently fund the costs of updating and expanding fleet as its customer base grows.
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Solid Waste Rate Study Executive Summary
City of Bozeman, Montana ES-3 Burns & McDonnell
Table ES-2: Revenue Requirement by Cost Center
Cost Center FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Administration $987,864 $1,020,910 $1,050,739 $1,081,450 $1,113,069
Residential
Refuse $1,396,184 $1,442,320 $1,477,905 $1,514,786 $1,553,015
Recycling $441,827 $456,641 $469,363 $482,519 $496,122
Bulky1 $29,013 $47,119 $49,000 $50,948 $52,965
Yard Waste $179,309 $186,210 $191,392 $196,720 $202,198
Tote Delivery $117,813 $123,114 $126,394 $129,774 $133,258
Commercial
Refuse $709,039 $729,430 $746,009 $763,153 $780,886
OCC Collection $116,572 $122,354 $126,655 $131,124 $135,769
Dumpster Delivery $86,192 $89,746 $92,178 $94,685 $97,268
Commercial Roll-off $389,657 $404,078 $415,445 $427,245 $439,498
Compost $134,372 $139,417 $143,046 $146,788 $150,646
Special Events $19,225 $20,182 $20,686 $21,204 $21,734
Total2 $4,607,067 $4,781,521 $4,908,813 $5,040,395 $5,176,428
1.The 62% increase in bulky expenses in FY 2021 is due to the Solid Waste Division acquiring a truck outfitted witha knuckleboom crane and hiring a driver for bulk item collection.
2.Values may not calculate exactly due to rounding.
Table ES-3 summarizes how the cost centers were allocated to the customer classes. Customer classes
represent the billing categories for customers and include residential, recycling, temporary dumpster,
commercial dumpster, and commercial roll-off.
Table ES-3: Recovery Basis for Cost Centers by Customer Class
Cost Center Residential Recycling Temporary Dumpster Commercial Dumpster Commercial Roll-off
Administration
Residential Refuse
Residential Recycling
Bulky
Yard Waste
Commercial
Commercial Roll-Off
Tote Delivery
Dumpster Delivery
Special Events
Compost
OCC Collection
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Solid Waste Rate Study Executive Summary
City of Bozeman, Montana ES-4 Burns & McDonnell
Burns & McDonnell evaluated the net rate revenue by determining the projected revenue using the
current rate structure. Table ES-4 summarizes this evaluation for each customer class. A positive number
means the City is generating sufficient rate revenue from the customer to fully cover the cost of service,
and a negative number means the City’s current rates do not fully cover the cost of service. Figure ES-1
provides a visual representation of each customer class’ annual net revenue. Under current rates, the City
only recovers the costs of its residential customers. Commercial dumpster and roll-off customers account
for 49% and 39% of the total Solid Waste Division under-recovery in FY 2020, respectively.
Table ES-4: Over (Under) Recovery by Customer Class - Current Rates
Customer Class FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Residential $236,064 $163,542 $124,977 $84,506 $42,050
Recycling ($39,760) ($54,194) ($65,736) ($77,783) ($90,357)
Temporary Dumpster ($70,275) ($74,709) ($77,837) ($81,075) ($84,427)
Commercial Dumpster ($290,653) ($316,274) ($335,895) ($356,356) ($377,690)
Commercial Roll-Off ($196,757) ($212,804) ($225,431) ($238,567) ($252,234)
Annual Over (Under) Recovery1 ($361,381) ($494,440) ($579,921) ($669,275) ($762,658)
Cumulative Over (Under) Recovery1
($361,381) ($855,821) ($1,435,742) ($2,105,017) ($2,867,675)
1.Values may not calculate exactly due to rounding.
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Solid Waste Rate Study Executive Summary
City of Bozeman, Montana ES-5 Burns & McDonnell
Figure ES-1: Annual Net Revenue by Customer Class Based on Current Rates
90-Day Reserve
The City informally maintains a reserve fund goal equal to 90 days of annual operational and capital
expenses. Table ES-5 shows the fall in the City’s reserve fund each year of the five-year forecast under
current rates. By FY 2021, the City will not maintain a 90-day reserve fund balance, and by FY 2023, the
City will have a negative reserve fund balance. Figure ES-2 provides a visual representation of the fall in
reserve days under current rates.
Table ES-5: Five-Year Reserve Forecast Based on Current Rates
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Beginning Balance $1,606,283 $1,244,902 $750,462 $170,541 ($498,734)
Net Revenue ($361,381) ($494,440) ($579,921) ($669,275) ($762,658)
Reserve Fund Balance1 $1,244,902 $750,462 $170,541 ($498,734) ($1,261,392)
Reserve Days 99 57 13 -36 -89
1.Values may not calculate exactly due to rounding.
($500,000)
($400,000)
($300,000)
($200,000)
($100,000)
$0
$100,000
$200,000
$300,000
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Residential Recycling Temporary Dumpster Commercial Dumpster Commercial Roll-off
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Solid Waste Rate Study Executive Summary
City of Bozeman, Montana ES-6 Burns & McDonnell
Figure ES-2: Five-Year Reserve Forecast Based on Current Rates
Recommended Rates
Section 3 describes the fees and rates that Burns & McDonnell recommends for the City to maintain a 90-
day reserve balance and to generate positive net revenue over the five-year forecast. Recommended rates
aim to incentivize residential refuse diversion through recycling and to generate additional revenue from
commercial customers to reduce customer under-recovery. Table ES-6 summarizes the recommended
rate increases by customer class.
-150
-100
-50
0
50
100
150
($1,500,000)
($1,000,000)
($500,000)
$0
$500,000
$1,000,000
$1,500,000
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 DaysAnnual Net Revenue Reserve Fund Balance Reserve Days
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Solid Waste Rate Study Executive Summary
City of Bozeman, Montana ES-7 Burns & McDonnell
Table ES-6: Recommended Rate Increase Percentages
Customer Class FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Residential1 3% 3% 3% 3% 3%
Recycling 0% 0% 0% 0% 0%
Temporary Dumpster2 0% 0% 0% 0% 0%
Commercial Dumpster3 10% 5% 5% 5% 5%
Commercial Roll-Off4 20% 5% 5% 5% 5%
1.Recommended residential rate increases only apply to customers with carts 65 gallons and larger.
2.Temporary dumpster customers do not have recommended rate changes for the price per cubic yard of materialdisposed. A $45 delivery charge and a $30 collection charge are recommended to be implemented in FY 2020.3.Rate increases apply to refuse dumpster collection. An additional rate is recommended for dumpster customers withcardboard collection beginning in FY 2020. Section 3 includes rate matrices for recommended cardboard dumpstercollection rates.4.Rate increases apply to pull fees for all paid roll-off customers. An additional delivery fee of $100 is recommendedto begin in FY 2020.
90-Day Reserve with Recommended Rates
Where prior Table ES-5 communicates a steady decline in the City’s reserve fund days under current
rates, Table ES-6 demonstrates how proposed rate revenue would build the reserve fund to cover the
City’s operational and capital costs for at least 119 days. Figure ES-3 is an updated version of prior
Figure ES-2 under recommended rates.
Table ES-7: Five-Year Reserve Forecast Based on Recommended Rates
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Beginning Balance $1,606,283 $1,591,084 $1,567,868 $1,595,613 $1,677,052
Net Revenue ($15,199) ($23,216) $27,746 $81,439 $97,161
Reserve Fund Balance1 $1,591,084 $1,567,868 $1,595,613 $1,677,052 $1,774,213
Reserve Days 126 120 119 121 125
1.Values may not calculate exactly due to rounding.
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Solid Waste Rate Study Executive Summary
City of Bozeman, Montana ES-8 Burns & McDonnell
Figure ES-3: Five-Year Reserve Forecast Based on Recommended Rates
Benchmarking Summary
Section 4 provides a benchmark analysis to compare the City’s programs and rates for residential and
commercial collection services to those of seven cities that, like Bozeman, prioritize environmental
consciousness. Even after accounting for the proposed rate increase, the City will continue to offer high
quality at relatively reasonable rates. Key findings from the benchmarking include:
•Residential collection. After accounting for the proposed FY 2020 rate increase, Bozeman
would have the second lowest residential rate of the benchmarked cities. The proposed rate of
$25.19 for a 100-gallon cart is 64.9 percent less than the average rate of $38.82 for the benchmark
cities.
•Commercial collection. After accounting for the proposed FY 2020 rate increase, Bozeman
would have the second lowest commercial dumpster rates of the benchmarked cities. Rates for
roll-off services would remain competitive.
100
105
110
115
120
125
130
($500,000)
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 DaysAnnual Net Revenue Reserve Fund Balance Reserve Days
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1.0 INTRODUCTION AND CURRENT SYSTEM
The City of Bozeman, Montana (City) retained Burns & McDonnell (Burns & McDonnell) to conduct a
solid waste and recycling cost of service and rate design study for the Solid Waste Division in the
Department of Public Works. The purpose of this study was to determine the total cost of providing solid
waste and recycling services, equitably distribute the cost to customers, and design rates to safeguard the
financial integrity of the operation. This report provides a discussion of the methodology utilized to
conduct the analysis, the cost of providing services as determined by the analysis, and recommended
rates.
1.1 Project Approach
The goal of a cost of service and rate design study is to determine the solid waste fees required to
adequately recover the costs of providing services. Burns & McDonnell developed a series of key tasks
that provided the foundation for the conduct of the study. The methodology will be discussed in Section
2.Burns & McDonnell utilized the following sources of information regarding the City’s current system
and financial requirements.
1.1.1 Data Requests
Burns & McDonnell submitted detailed data requests to the City to collect historical and background
information on operations and practices. The information requested included:
•Detailed financial reports and budgets
•Solid waste rates
•Personnel rosters
•Customer data
•Fleet inventory and costs
1.1.2 Project Kick-Off Meeting
Burns & McDonnell held a kick-off meeting with City staff on March 20, 2019 to initiate the study. This
meeting served as a forum to confirm the scope of services, discuss the data already collected and to be
provided, allocate personnel and equipment to cost centers, and finalize the cost centers to be used.
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1.1.3 Ongoing Staff Communications
During the course of the study, Burns & McDonnell communicated via email and conducted several
conference calls with City staff. This communication provided the opportunity for Burns & McDonnell
to review project progress, verify assumptions, and receive input from City staff.
1.2 Report Organization
This report is organized into four sections, as well as an Executive Summary and Appendix. Section 2
focuses on the cost of service analysis and includes an overview of the methodology utilized to determine
the cost of service for the City’s solid waste system as well as the cost of service-based rates. Section 3
provides the projected financial impact of the current rates, and presents the recommended rates based on
the current operations. Section 4 provides a benchmark analysis to compare the City’s programs and rates
for residential and commercial services to those of similar cities. The Appendix includes multiple
financial schedules. The report sections are listed below.
•Executive Summary
•Section 1 – Introduction
•Section 2 – Cost of Service Analysis
•Section 3 – Rate Recommendations
•Section 4 – Benchmarking Analysis
•Appendix – Schedules
o Schedule 1: Test Year
o Schedule 2: Five-Year Forecast
o Schedule 3: Revenue Requirement
o Schedule 4: Residential Cost of Service
o Schedule 5: Recycling Cost of Service
o Schedule 6: Temporary Dumpster Cost of Service
o Schedule 7: Commercial Dumpster Cost of Service
o Schedule 8: Commercial Roll-off Cost of Service
o Schedule 9: Net Revenue –Current Rates
o Schedule 10: Net Revenue – Recommended Rates
The remainder of this section provides a description of the current services and rates.
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1.3 Current Services and Rates
This section summarizes the current services by customer class and rates that the City provides to
residents and businesses. The following provides an overview of the City’s services and does not capture
all ancillary services provided by the City.
1.3.1 Residential
Residential services provided by the City include weekly refuse and yard waste cart collection service via
fully-automated side load collection vehicles. The City offers a pay-as-you-throw system where residents
may choose their refuse cart size based on their households’ waste needs, with lower monthly rates for
smaller carts. The current rate for residential service begins at $14.52 per month for a 35-gallon or 45-
gallon cart, with the option of receiving a 65-gallon cart service for $19.09 per month, or a 100-gallon
cart service for $24.46 per month. Larger cart sizes are available to residents for a monthly rate relatively
proportional to the number of additional gallons. Residents may receive additional weekly cart collection
for $6.10 per month or extra bagged refuse collection for $2.00 per bag. For an additional charge of $10
per pick-up, the City also picks up bulk items from residents on a call-in basis.
1.3.2 Recycling
The City provides residential and commercial customers with a subscription curbside recycling service
starting at $9.93 per month for a 65-gallon cart or 100-gallon cart collected every other week. Cart
services for 300-gallon containers is also provided every other week for $15.45 per month, weekly for
$30.90 per month, or twice a week for $46.35 per month. Rates apply to both residential and commercial
customers.
1.3.3 Temporary Dumpster
Residential customers may request temporary dumpster collection for refuse or yard waste. Customers
pay by the quantity of cubic yards (CY) collected and do not pay additional fees for dumpster delivery or
return. Temporary dumpster customers pay $15 per CY of municipal solid waste, $30 per CY of
construction and demolition waste, and $6.50 per CY of yard waste.
1.3.4 Commercial Dumpster
The City provides commercial front-load dumpster collection and disposal services for two, three, four,
six, and eight CY containers to businesses. Dumpster collections may occur between twice a month and
six times per week, depending on the customer's needs. Commercial customers may receive old
corrugated cardboard (OCC) collection at no additional cost via front-load dumpsters.
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Table 1-1 lists the monthly front-load refuse rates based on container size and collection frequency.
Table 1-1: Current Front-Load Refuse Monthly Rates
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x Twice a Month
2 CY $92.14 $159.95 $227.76 $295.57 $363.38 $431.18 $42.56
3 CY $102.50 $180.67 $258.83 $337.00 $415.16 $493.33 $47.36
4 CY $112.85 $201.38 $289.90 $378.41 $466.94 $555.46 $52.14
6 CY $133.57 $242.80 $352.03 $461.26 $570.50 $679.73 $61.70
8 CY $154.28 $284.23 $414.17 $544.11 $674.05 $751.98 $71.26
1.3.5 Commercial Roll-Off
The City provides roll-off containers and disposal to commercial customers on a permanent and
temporary basis. Customers are charged $250 per container pull if they do not have a contract with the
City, and a disposal fee of $27.00 per ton of municipal solid waste, $48.00 per ton of construction waste,
and $58.00 per ton of heavy construction waste. Temporary customers pay $2.00 per day for roll-off
containers after the first week. The City also provides a yard waste roll-off service for $135 per pull
without a disposal fee. Gallatin County, City departments, and non-profit organizations receive roll-off
service free of charge. The Bozeman Water Reclamation Facility receives roll-off pulls twice a day, six
days a week for sludge disposal for $170 per pull.
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2.0 COST OF SERVICE
This section describes the tasks involved in conducting the solid waste cost of service analysis. Before
describing each of the tasks in detail, Burns & McDonnell provides a brief overview of the overall rate
analysis methodology. This section of the report also describes the cost of service for solid waste and
recycling services.
2.1 Methodology Overview
This overview provides the background necessary to understand how data compiled in each task provides
the information required to determine the cost of service and fees that will adequately recover the cost of
service.
•Development of the Test Year Revenue Requirement – The first task in conducting the cost of
service analysis is the development of an annual revenue requirement for a Test Year. The revenue
requirement represents the total revenue that solid waste operations will need to recover during a year
in order to fund all expenses associated with the provision of solid waste services. Burns &
McDonnell worked with City staff to select a period that reflected the typical operation of the solid
waste system. City staff and Burns & McDonnell selected the FY 2020 budget as the basis for the
Test Year. Burns & McDonnell then reviewed the financial data and worked with City staff to make
any adjustments to costs to make them representative of a typical year. The resulting Test Year (FY
2020) was used as the basis for forecasting expenses for the five-year forecast, FY 2020 through FY
2024.
•Development of the Revenue Requirement Forecast – After developing the revenue requirement
for the Test Year, Burns & McDonnell worked with City staff to project changes in costs due to
inflation, salary increases, new equipment, new customers, etc. This resulted in the five-year revenue
requirement forecast.
•Allocation of Costs to Cost Centers – Burns & McDonnell worked with staff to assign and allocate
costs to various cost centers. The cost centers represent the primary solid waste services provided by
the City and are listed in Section 2.2.4.
•Allocation to Customer Classes – Burns & McDonnell grouped the cost centers based on the
customer classes that represent ratepayers in the City’s system. The revenue from ratepayers must
recover all the expenses incurred by the City to provide solid waste services. The customer classes
include residential, recycling, temporary dumpster, commercial dumpster, and commercial roll-off.
•Determination of Billing Units – Burns & McDonnell identified the appropriate billing units for
each customer class. For example, the residential rate is charged per customer per month, which is
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one single-family household. Therefore, the residential customer, or the single-family household,
was utilized as the billing unit for this customer class. Billing units include only active accounts that
generate revenue and not vacant residences that do not receive services or exempt accounts (e.g., City
facilities).
•Calculation of the Cost of Service – Burns & McDonnell distributed the costs for each customer
class across the appropriate billing units to determine the cost of service for each customer class.
•Revenue Reconciliation and Rate Development – Section 3 addresses the revenue reconciliation
and rate development. The revenue reconciliation compares the revenue using the current rate
structure to the revenue requirement to determine which services the City is over- or under-recovering
the cost of service. Based on this, Burns & McDonnell developed recommended rates to fully
recover the cost of service, including the funding of reserves at appropriate levels, over the five-year
forecast period.
2.2 Development of the Test Year Revenue Requirement
2.2.1 Selection of the Test Year
In developing the Test Year revenue requirement for the City, Burns & McDonnell used the FY 2020
proposed budget as the basis for the Test Year. Burns & McDonnell and City staff reviewed each line of
the budget to determine whether any adjustments were required for FY 2020 to represent a typical year.
Schedule 1 in the Appendix provides the detailed Test Year.
2.2.2 Relationship between the Budget and the Revenue Requirement
Burns & McDonnell would like to emphasize that there is a fundamental difference between a budget and
a revenue requirement. The budget represents the costs associated with operations that directly support
solid waste programs. The City, like most other municipal operations, has several operational budgets
within the Division. However, there are typically more service offerings than budgets and people and
other resources may often be shared between operations. The revenue requirement shows the cost for
each service offering, independent of the budgets.
In addition, the revenue requirement focuses on the revenue that must be generated through solid waste
rates. The revenue requirement is net of non-rate revenues that are included in the budget. These revenue
offsets reduce the overall amount that the City must recover from solid waste service rates. Categories of
the revenue offsets include the following:
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•Roll-off container rental
•Compost sales
•Interest income
•Bulk item pickup revenue
2.2.3 Development of the Revenue Requirement Forecast
In addition to developing the Test Year revenue requirement, Burns & McDonnell forecasted the annual
revenue requirement for FY 2020 through FY 2024. In order to develop this forecast, Burns &
McDonnell projected how costs would change annually due to factors such as inflation based on the
following categories of costs:
•General: 3.0 percent
•Salary and benefits: 2.5 percent
•Equipment maintenance: 5.0 percent
•Fuel: 5.0 percent
•Taxes and assessments: 4.5 percent
In addition to forecasting cost increases due to inflation, Burns & McDonnell accounted for the following
planned capital improvement plan costs over the five-year forecast:
•Equipment replacement
•Additional fleet
•Professional consulting services
Table 2-1 shows the revenue requirement for the five-year forecast. The administration revenue
requirement represent 21.4 percent of the total departmental revenue requirement. Administration
expenses that contribute to the revenue requirement include building maintenance, equipment route
software, and overhead for the City’s Public Works Department. The detailed composition of the forecast
is provided in Schedule 2 in the Appendix.
Table 2-1: Solid Waste Revenue Requirement
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Administration $987,864 $1,020,910 $1,050,739 $1,081,450 $1,113,069
Operating & Capital $3,619,203 $3,760,611 $3,858,074 $3,958,946 $4,063,359
Total1 $4,607,067 $4,781,521 $4,908,813 $5,040,395 $5,176,428
1.Values may not calculate exactly due to rounding.
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2.2.4 Allocation of Costs to Cost Centers
The City provides a number of services to its customers. To determine the costs for each service, there is
a need to allocate costs to cost centers that represent the primary solid waste and recycling services
provided. The cost centers were determined through a series of discussions with City staff and are shown
in Table 2-2.
Table 2-2: Cost Centers
Residential Commercial Other
•Residential Refuse
•Residential Recycling1
•Yard Waste
•Bulky
•Tote Delivery
•Dumpster Delivery2
•Compost
•Commercial Refuse
•Commercial Roll-off
•OCC Collection
•Administration
•Compost
•Special Events3
1.Commercial customers may receive the same subscription recycling cart collection service as residential customers.
2.Dumpster delivery captures the costs associated with transporting temporary dumpsters to residential customers.
3.The City provides refuse carts and dumpsters for community events, including arts and music festivals.
Identifying the total costs associated with each cost center was a critical step in determining adequate
rates that reflect the cost of providing service. These costs were isolated by cost center in order to fully
recover the total revenue requirement by matching those customers that utilize the service with the actual
costs associated with that service. Table 2-3 identifies the cost of providing service for each cost center
(from Table 2-2) for FY 2020 through FY 2024 based on their respective revenue requirements. Schedule
3 in the Appendix also details the revenue requirement for the five-year forecast. The allocation of cost
centers to customer classes is discussed further in Section 2.2.5.
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Table 2-3: Revenue Requirement by Cost Center
Cost Center FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Administration $987,864 $1,020,910 $1,050,739 $1,081,450 $1,113,069
Residential
Refuse $1,396,184 $1,442,320 $1,477,905 $1,514,786 $1,553,015
Recycling $441,827 $456,641 $469,363 $482,519 $496,122
Bulky $29,013 $47,119 $49,000 $50,948 $52,965
Yard Waste $179,309 $186,210 $191,392 $196,720 $202,198
Tote Delivery $117,813 $123,114 $126,394 $129,774 $133,258
Commercial
Refuse $709,039 $729,430 $746,009 $763,153 $780,886
OCC Collection $116,572 $122,354 $126,655 $131,124 $135,769
Dumpster Delivery $86,192 $89,746 $92,178 $94,685 $97,268
Commercial Roll-off $389,657 $404,078 $415,445 $427,245 $439,498
Compost $134,372 $139,417 $143,046 $146,788 $150,646
Special Events $19,225 $20,182 $20,686 $21,204 $21,734
Total1 $4,607,067 $4,781,521 $4,908,813 $5,040,395 $5,176,428
1.Values may not calculate exactly due to rounding.
2.2.5 Allocation to Customer Classes
After calculating the costs for each cost center over the five-year forecast period, the costs were then
allocated to customer classes. This assists in identifying the appropriate customers to be charged for each
service provided. The following lists the customer classes for solid waste and recycling services.
•Residential
•Recycling
•Temporary Dumpster
•Commercial Dumpster
•Commercial Roll-off
Table 2-4 summarizes how the expenses associated with each cost center were allocated to the customer
classes.
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Table 2-4: Recovery Basis for Cost Centers by Customer Class
Cost Center Residential Recycling Temporary Dumpster Commercial Dumpster Commercial Roll-off
Administration
Residential Refuse
Residential Recycling
Bulky
Yard Waste
Commercial
Commercial Roll-Off
Tote Delivery
Dumpster Delivery
Special Events
Compost
OCC Collection
2.2.6 Determination of Billing Units
In order to calculate the appropriate user fees, it was necessary to determine the proper number of annual
billing units for various customer classes. Burns & McDonnell received billing data for each customer
class from City staff and determined the cost of service by dividing the revenue requirement by the
appropriate billing units. The annual percentage increases utilized to project the billing units for
residential and commercial customer classes is 1.0 percent. While the City has experienced high growth
in recent years, Burns & McDonnell chose conservative growth rates to prevent billing units from
growing faster than costs, which would result in a per unit decrease in the cost of service for each
customer type over the five-year study period.
2.2.7 Residential
The residential rate is a monthly fee for one refuse cart, with an additional fee for each additional refuse
cart. Customers receive seasonal weekly yard waste collection included in the monthly rate.
Correspondingly, the appropriate billing unit for this customer class is the number of active refuse
accounts served by the City. Table 2-5 provides the billing unit forecast for the residential refuse
customer class assuming a 1.0 percent annual growth rate.
Table 2-5: Residential Refuse Billing Unit Forecast
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Number of Refuse Accounts 11,288 11,401 11,515 11,630 11,746
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2.2.8 Recycling
On a paid subscription basis, residential and commercial customers may receive recycling cart collection
service every other week, with options for varying frequency. Correspondingly, the appropriate billing
unit for this customer class is the number of subscription accounts served by the City. Table 2-6 provides
the billing unit forecast for the recycling customer class assuming a 1.0 percent annual growth rate.
Table 2-6: Recycling Billing Unit Forecast
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Number of Recycling Subscriptions 4,515 4,560 4,605 4,651 4,698
2.2.9 Temporary Dumpster
Residential customers may request temporary dumpster service for occasions leading to higher volumes
of refuse or yard waste. Currently, customers pay for the service by CY disposed. Correspondingly, the
appropriate billing unit for this customer class is the annual number of CY collected by the temporary
dumpster service.1 Table 2-7 provides the billing unit forecast for the temporary dumpster customer class
assuming a 1.0 percent annual growth rate. Based on the annual number of temporary dumpster requests
shown in Table 2-7, the average temporary dumpster customer disposes of roughly eight CY of refuse or
yard waste per request.
Table 2-7: Temporary Dumpster Billing Unit Forecast
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Number of Cubic Yards Disposed 4,515 4,560 4,605 4,651 4,698
Temporary Dumpster Requests 566 571 577 583 589
2.2.10 Commercial Dumpster
Commercial dumpster customers are provided refuse collection via two-, three-, four-, six- and eight-CY
dumpsters and range in collection frequency from twice a month to six times per week. Commercial
customers may also receive old corrugated cardboard collection without an additional fee. Table 2-8
shows the projected billing units for commercial dumpster refuse collections in a matrix for each year
assuming a 1.0 percent annual growth rate.
1 Temporary dumpster pricing is variable based on whether municipal solid waste, construction and demolition material or yard waste is collected. The City does not incur significant differences in expenses among the different types of waste collected by temporary dumpsters.
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Table 2-8: Commercial Dumpster Collections Forecast
FY 2020
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x Twice a Month
2 CY 49 10 7
3 CY 68 14 8 3 5
4 CY 33 13 7 1 1 13
6 CY 40 33 11 6 2 6
8 CY 13 9 4 1 1 3 1
FY 2021
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x Twice a Month
2 CY 50 10 7
3 CY 68 14 8 3 5
4 CY 34 13 7 1 1 13
6 CY 41 34 11 6 2 6
8 CY 13 9 4 1 1 3 1
FY 2022
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x Twice a Month
2 CY 50 10 7
3 CY 69 14 8 3 5
4 CY 34 13 7 1 1 13
6 CY 41 34 11 6 2 6
8 CY 13 9 4 1 1 3 1
FY 2023
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x Twice a Month
2 CY 51 10 7
3 CY 70 15 8 3 5
4 CY 34 14 7 1 1 14
6 CY 42 34 11 6 2 6
8 CY 14 9 4 1 1 3 1
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Table 2-8: Commercial Dumpster Collections Forecast
FY 2024
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x Twice a Month
2 CY 51 11 7
3 CY 70 15 8 3 5
4 CY 35 14 7 1 1 14
6 CY 42 35 12 6 2 6
8 CY 14 9 4 1 1 3 1
2.2.11 Commercial Roll-off
The City provides roll-off container service for commercial customers. Roll-off customers may request
20-yard, 30-yard, 40-yard, 40-yard compacting, or yard waste roll-off containers and pay per pull and per
ton disposed. The City provides discounted container rates to the Water Reclamation Facility and free
service to City departments, Gallatin County, and non-profit organizations hosting fundraisers.
Correspondingly, the appropriate billing unit for this customer class is the number of pulls for paid and
free roll-off containers. Table 2-9 provides an estimate of annual pulls for commercial roll-off customers
assuming a 1.0 percent annual growth rate.
Table 2-9: Commercial Roll-off Pull Forecast
Roll-off Type FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Free Refuse Pulls1 73 73 74 75 76
Paid Refuse Pulls 751 759 767 774 782
Yard Waste Pulls 39 40 40 41 41
Water Reclamation Facility Pulls2 624 624 624 624 624
1.The City provides roll-offs city departments, Gallatin County, and non-profit fundraiserswith roll-off service free of charge.
2.The Bozeman Water Reclamation Facility receives two container pulls six days a week.
2.2.12 Calculation of the Cost of Service
Burns & McDonnell determined the cost of service for the various solid waste and recycling services.
The cost of service rates are not the rates Burns & McDonnell recommends be adopted by the City. The
recommended rates are provided in Section 3.
2.2.13 Residential
Table 2-10 shows the projected cost of service for residential refuse customers. The cost of service
includes the revenue requirement for refuse, bulk item pickup, yard waste, tote delivery, and special
events. Administration, disposal, and composting costs are also factored into the cost of service.
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Table 2-10: Residential Cost of Service
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Administration $506,673 $523,623 $538,922 $554,673 $570,891
Residential Refuse $1,152,775 $1,196,478 $1,229,605 $1,264,002 $1,299,723
Bulky $29,013 $47,119 $49,000 $50,948 $52,965
Yard Waste $179,309 $186,210 $191,392 $196,720 $202,198
Tote Delivery $98,179 $102,597 $105,330 $108,147 $111,050
Special Events $19,225 $20,182 $20,686 $21,204 $21,734
Compost $134,372 $139,417 $143,046 $146,788 $150,646
Disposal $243,408 $245,842 $248,301 $250,784 $253,292
Total1 $2,362,955 $2,461,467 $2,526,282 $2,593,266 $2,662,499
Total Households 11,288 11,401 11,515 11,630 11,746
Total Cost per Household per Month1
$17.44 $17.99 $18.28 $18.58 $18.89
1.Values may not calculate exactly due to rounding.
Schedule 4 in the Appendix provides further details on the cost of service for residential customers such
as a breakdown of the costs on a per account per month basis. For FY 2020, the total cost of service for
residential customers is $17.44 per month. Figure 2-1 provides a graphical break-down of the residential
cost of service. Table 2-11 shows the residential cost-of-service by cart size.
Figure 2-1: Breakdown of Residential Cost of Service (Monthly Cost per Resident and Percentage of Total)
Administration,
$3.91, 22%
Residential Refuse,
$8.67, 49%
Bulky, $0.22, 1%Yard Waste, $1.58,
9%
Tote Delivery, $1.07, 6%
Compost, $0.42, 2%
Disposal1, $1.80, 10%
FY 2020 Cost of Service
1.Disposal cost is based on the average size of a refuse cart collected, approximately 69 gallons.
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Table 2-11: Residential Monthly Cost of Service by Cart Size
Cart Type FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
35 Gallon (Monthly Collection) $6.73 $6.92 $7.04 $7.17 $7.30
35 Gallon Weekly $16.68 $17.23 $17.52 $17.82 $18.13
45 Gallon Weekly $16.95 $17.50 $17.79 $18.09 $18.40
65 Gallon Weekly $17.50 $18.05 $18.34 $18.64 $18.95
100 Gallon Weekly $18.45 $19.01 $19.30 $19.60 $19.91
220 Gallon Weekly $21.74 $22.29 $22.58 $22.88 $23.19
300 Gallon Weekly $23.92 $24.47 $24.77 $25.07 $25.37
450 Gallon Weekly $28.02 $28.57 $28.87 $29.17 $29.47
2.2.14 Recycling
Table 2-12 lists the projected cost of service for subscription recycling collection for the five-year
forecast based on frequency of collection and cart size. The costs presented in the table account for the
cost of collection and commingled material processing. Schedule 5 in the Appendix provides further
details on the cost of service for recycling subscribers such as a breakdown of the costs on a per account
per month basis.
Table 2-12: Recycling Monthly Cost of Service by Cart Size
Cart Type FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
65 Gallon Every Other Week $10.12 $10.38 $10.59 $10.81 $11.03
100 Gallon Every Other Week $11.28 $11.58 $11.81 $12.05 $12.29
300 Gallon Every Other Week $17.97 $18.39 $18.76 $19.13 $19.52
300 Gallon Weekly $33.61 $34.38 $35.04 $35.72 $36.41
300 Gallon 2x/Week $64.89 $66.35 $67.61 $68.89 $70.21
300 Gallon 3x/Week $96.17 $98.32 $100.17 $102.07 $104.01
2.2.15 Temporary Dumpster
Table 2-13 lists the projected cost of service for temporary dumpsters for the five-year forecast based on
annual requests. The costs presented in the table account for the cost of dumpster delivery, collection, and
disposal. Schedule 6 in the Appendix provides further details on the cost of service for temporary
dumpster services such as a breakdown of the cost of dumpster delivery, collection, and disposal.
Table 2-13: Temporary Dumpster Cost of Service by Request
Temporary Dumpster FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Cost of Delivery and Collection per Request $227.17 $233.70 $237.83 $242.05 $246.37
Cost of Disposal per Request $15.26 $15.26 $15.26 $15.26 $15.26
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2.2.16 Commercial Dumpster
Table 2-14 lists the projected cost of service for commercial dumpster customers for the five-year forecast
based on frequency of collection and dumpster size. The costs presented in the table account for the cost
of collection and disposal. Table 2-15 lists the projected cost of service for OCC dumpster customers for
the five year-forecast based on frequency of collection. In addition to the information in Tables 2-14 and
2-15, Schedule 7 in the Appendix provides a complete cost of service matrix for refuse and OCC
collection.
Table 2-14: Commercial Dumpster Refuse Cost of Service
FY 2020
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x
Twice a
Month
2 CY $116.05 $232.09 $348.14 $464.19 $580.24 $696.28 $53.56
3 CY $121.09 $242.18 $363.27 $484.36 $605.45 $726.54 $55.89
4 CY $126.13 $252.26 $378.40 $504.53 $630.66 $756.79 $58.21
6 CY $136.22 $272.43 $408.65 $544.87 $681.09 $817.30 $62.87
8 CY $146.30 $292.60 $438.91 $585.21 $731.51 $877.81 $67.52
FY 2021
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x
Twice a
Month
2 CY $118.58 $237.16 $355.73 $474.31 $592.89 $711.47 $54.73
3 CY $123.62 $247.24 $370.86 $494.48 $618.10 $741.72 $57.06
4 CY $128.66 $257.33 $385.99 $514.65 $643.31 $771.98 $59.38
6 CY $138.75 $277.50 $416.24 $554.99 $693.74 $832.49 $64.04
8 CY $148.83 $297.67 $446.50 $595.33 $744.16 $893.00 $68.69
FY 2022
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x
Twice a
Month
2 CY $120.42 $240.83 $361.25 $481.66 $602.08 $722.49 $55.58
3 CY $125.46 $250.92 $376.37 $501.83 $627.29 $752.75 $57.90
4 CY $130.50 $261.00 $391.50 $522.00 $652.50 $783.00 $60.23
6 CY $140.58 $281.17 $421.75 $562.34 $702.92 $843.51 $64.89
8 CY $150.67 $301.34 $452.01 $602.68 $753.35 $904.02 $69.54
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Table 2-14: Commercial Dumpster Refuse Cost of Service
FY 2023
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x
Twice a
Month
2 CY $122.31 $244.61 $366.92 $489.22 $611.53 $733.83 $56.45
3 CY $127.35 $254.70 $382.04 $509.39 $636.74 $764.09 $58.78
4 CY $132.39 $264.78 $397.17 $529.56 $661.95 $794.34 $61.10
6 CY $142.48 $284.95 $427.43 $569.90 $712.38 $854.85 $65.76
8 CY $152.56 $305.12 $457.68 $610.24 $762.80 $915.36 $70.41
FY 2024
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x
Twice a
Month
2 CY $124.25 $248.50 $372.75 $497.00 $621.25 $745.50 $57.35
3 CY $129.29 $258.59 $387.88 $517.17 $646.47 $775.76 $59.67
4 CY $134.34 $268.67 $403.01 $537.34 $671.68 $806.01 $62.00
6 CY $144.42 $288.84 $433.26 $577.68 $722.10 $866.52 $66.66
8 CY $154.51 $309.01 $463.52 $618.02 $772.53 $927.03 $71.31
Table 2-15: OCC Dumpster Cost of Service
Collections per Week
OCC Dumpster1 1x 2x 3x 4x 5x 6x
Twice a
Month
FY 2020 $56.50 $112.99 $169.49 $225.99 $282.48 $338.98 $26.08
FY 2021 $58.46 $116.92 $175.37 $233.83 $292.29 $350.75 $26.98
FY 2022 $59.82 $119.63 $179.45 $239.26 $299.08 $358.90 $27.61
FY 2023 $61.21 $122.42 $183.64 $244.85 $306.06 $367.27 $28.25
FY 2024 $62.65 $125.29 $187.94 $250.59 $313.24 $375.88 $28.91
1.The cost of service for OCC dumpster customers does not vary by dumpster size.
2.2.17 Commercial Roll-Off
Table 2-16 lists the projected cost of service for commercial roll-off customers for the five-year forecast
based on number of annual paid container pulls. Disposal costs for paid refuse roll-offs are passed on to
customers, with the per ton disposal rate determined by Logan Landfill. As roll-off customer expenses
are offset only by paid customers, the cost of service represents the amount per pull that each paid
customer would need to be charged to fully recover all commercial roll-off expenses. Schedule 8 in the
Appendix provides a complete cost break-down for the five-year forecast period based on frequency of
pulls.
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Table 2-16: Commercial Roll-Off Cost of Service
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Commercial Roll-off Pulls $350.58 $361.27 $369.44 $377.87 $386.56
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3.0 RATE DESIGN
This section provides analysis of the current rate structure and recommended rates that will enable the
City to fully fund the Revenue Requirement described in Section 2.
3.1 Net Revenue from Current Rates
Burns & McDonnell evaluated the net rate revenue by comparing the revenue requirement to the
projected revenue using the current rate structure, as described in Section 1.3. Table 3-1 summarizes this
evaluation for each customer class and Schedule 9 in the Appendix provides additional detail. A positive
number means the City is generating enough revenue from the customer to fully cover the cost of service.
A negative number means the City’s current rates do not fully cover the cost of service. Figure 3-1 shows
annual net revenue visually by customer class for the five-year forecast.
Table 3-1: Over (Under) Recovery by Customer Class Based on Current Rates
Customer Class FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Residential $236,064 $163,542 $124,977 $84,506 $42,050
Recycling ($39,760) ($54,194) ($65,736) ($77,783) ($90,357)
Temporary Dumpster ($70,275) ($74,709) ($77,837) ($81,075) ($84,427)
Commercial Dumpster ($290,653) ($316,274) ($335,895) ($356,356) ($377,690)
Commercial Roll-Off ($196,757) ($212,804) ($225,431) ($238,567) ($252,234)
Annual Over (Under) Recovery1
($361,381) ($494,440) ($579,921) ($669,275) ($762,658)
Cumulative Over (Under) Recovery1 ($361,381) ($855,821) ($1,435,742) ($2,105,017) ($2,867,675)
1.Values may not calculate exactly due to rounding.
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Figure 3-1: Annual Net Revenue by Customer Class Based on Current Rates
3.2 90-Day Reserve
The City maintains a reserve goal of 90 days of its annual operating and capital revenue requirement.
With current rates, the reserve ranges from $1,244,902, or 99 days of expenses, to ($1,261,392), or a
deficit of 89 days of expenses. At the start of FY 2020, the City has an unrestricted cash balance of
$1,742,145 from which the City adjusts based on capital improvement contributions to determine its
reserve. The City will not maintain a 90-day after FY 2020 based on current rates, as shown in Table 3-2.
Figure 3-2 provides a visual representation of the decline in reserve days the City will have over the five-
year forecast based on current rates.
($500,000)
($400,000)
($300,000)
($200,000)
($100,000)
$0
$100,000
$200,000
$300,000
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Residential Recycling Temporary Dumpster
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Table 3-2: 90-Day Reserve Based on Current Rates
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Reserve Beginning Balance1 $1,606,283 $1,244,902 $750,462 $170,541 ($498,734)
Annual Net Revenue ($361,381) ($494,440) ($579,921) ($669,275) ($762,658)
Reserve Ending Balance2 $1,244,902 $750,462 $170,541 ($498,734) ($1,261,392)
Reserve Days 99 57 13 -36 -89
1.The beginning balance in FY 2020 is equal to the remaining FY 2020 beginning fund balance after subtractingcash committed to capital improvement projects.
2.Values may not calculate exactly due to rounding.
Figure 3-2: Net Revenue and Reserve Fund Days Based on Current Rates
3.3 Proposed Rates
This section provides a summary of the rates that Burns & McDonnell recommends for the City to fully
recover its revenue requirement through the five-year forecast. The revenue for FY 2020 reflects the
proposed FY 2020 rates and projected service level demand.
-150
-100
-50
0
50
100
150
($1,500,000)
($1,000,000)
($500,000)
$0
$500,000
$1,000,000
$1,500,000
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 DaysAnnual Net Revenue Reserve Fund Balance Reserve Days
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3.3.1 Approach to Proposed Rates
Burns & McDonnell’s rate recommendation aims to address customer net revenue under-recovery with
revenue enhancements. Proposed rates changes are highest for commercial dumpster and roll-off
customers, which contribute to 49 and 33 percent of the City’s FY 2020 under-recovery, respectively. To
prevent high year-over-year rate increases, additional fees for under-recovering commercial customers
were considered to help offset the cost of service. The approach to proposed rates for residential services,
including curbside collection and temporary dumpsters, focused on incentivizing residents who divert
their waste from the landfill. Analysis of the City’s current and proposed rates compared to similar cities
is provided in Section 4.
3.3.2 Annual Rate Adjustment Summary
Based on discussion with City staff, rates will increase for all customers, effective FY 2020. Table 3-3
shows the base rate percentage increases by customer class for FY 2020 through FY 2024 and is
represented visually in Figure 3-3. Sections 3.3.3 through 3.3.8 provide further details of proposed rates
for each customer, including recommendations for additional fees to help recover the cost of service.
Table 3-3: Recommended Rate Increase Percentages
Customer Class FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Residential1 3% 3% 3% 3% 3%
Recycling 0% 0% 0% 0% 0%
Temporary Dumpster2 0% 0% 0% 0% 0%
Commercial Dumpster 10% 5% 5% 5% 5%
Commercial Roll-Off3 20% 5% 5% 5% 5%
1.Discussed further in section 3.3.3, an annual three percent rate increase is for customers with carts 65 gallons andlarger.2.Discussed further in section 3.3.5, there are is no proposed change to the per CY rate charged to temporarydumpster customers. Proposed changes to temporary dumpster service include a delivery and collection fee.3.Commercial roll-off rate changes are for pull charges. Disposal costs are determined by Logan Landfill.
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Figure 3-3: Recommended Rate Increase Percentages
3.3.3 Residential
Table 3-4 shows the recommended residential rates based on the percentage increases identified in Table
3-3. The annual recommended rate increases for each refuse cart size is represented visually in Figure 3-
4. To offset the higher cost of service for 35-gallon and 45-gallon carts, a rate change for carts 65 gallons
and larger, a three percent rate change is recommended for each year of the five-year forecast. In addition
to rate increases for residential services, the fee for bulky item pick-up is recommended to increase from
$10 per item to $25 per item in FY 2020.
0%
5%
10%
15%
20%
25%
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Residential (45-gallon cart and smaller)*Residential (65-gallon cart and larger)Commercial Dumpster Commercial Roll-Off
*Residents with 45-gallon carts or smaller do not have a proposed rate change through FY 2024
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Table 3-4: Recommended Monthly Rates for Residential Refuse
Cart Type Current Rate1 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
35 Gallon (Monthly) $10.80 $10.80 $10.80 $10.80 $10.80 $10.80
35 Gallon $14.52 $14.52 $14.52 $14.52 $14.52 $14.52
45 Gallon $14.52 $14.52 $14.52 $14.52 $14.52 $14.52
65 Gallon $19.09 $19.66 $20.25 $20.86 $21.49 $22.13
100 Gallon $24.46 $25.19 $25.95 $26.73 $27.53 $28.36
220 Gallon $40.85 $42.08 $43.34 $44.64 $45.98 $47.36
300 Gallon $51.21 $52.75 $54.33 $55.96 $57.64 $59.37
450 Gallon $73.79 $76.00 $78.28 $80.63 $83.05 $85.54
1.Additional refuse cart to remain at $3.66 per cart per month. Extra refuse bags, and extra pick-ups are not subjectto rate changes.
Figure 3-4: Recommended Monthly Rates for Residential Refuse
3.3.4 Recycling
Current rates are not proposed to change for subscription recycling customers. While the City under-
recovers the cost of service for recycling customers, incentivizing residents to recycle is a priority that the
$0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00
Current Rate
FY 2020
FY 2021
FY 2022
FY 2023
FY 2024
35 Gallon 45 Gallon 65 Gallon 100 Gallon 220 Gallon 300 Gallon
*The proposed monthly rates for weekly 450-gallon container collection during the five-year forecast are detailed in Table 3-4
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City aims to continue by maintaining current rates during the five-year forecast. The proposed rate
increase for residential customers allows the City to continue providing recycling collection at current
rates despite expenses increasing at an average of three percent annually.
3.3.5 Temporary Dumpster
Temporary dumpster service under-recovers its cost of service each year of the five-year forecast due to
the operating costs of dumpster transportation and costs of disposal. A proposed delivery fee of $45 and a
collection fee of $30 beginning in FY 2020 would help the City offset the loss of temporary dumpster
service by $296,602 by the end of FY 2024.
3.3.6 Commercial Dumpster
Tables 3-5 show the recommended commercial dumpster rates based on the percentage increases
identified in Table 3-3. Commercial customers who currently receive OCC collection for free are
recommended to begin paying for the service beginning in FY 2020, with pricing calculated based on the
cost of providing the service. Rates vary based on collection frequency, and do not change with larger
OCC dumpster sizes. Table 3-6 shows the recommended rate matrix for OCC dumpsters.
Table 3-5: Recommended Monthly Rates for Commercial Dumpster Refuse Customers
FY 2020
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x Twice a Month
2 CY $101.35 $175.95 $250.54 $325.13 $399.72 $474.30 $46.82
3 CY $112.75 $198.74 $284.71 $370.70 $456.68 $542.66 $52.10
4 CY $124.14 $221.52 $318.89 $416.25 $513.63 $611.01 $57.35
6 CY $146.93 $267.08 $387.23 $507.39 $627.55 $747.70 $67.87
8 CY $169.71 $312.65 $455.59 $598.52 $741.46 $827.18 $78.39
FY 2021
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x Twice a Month
2 CY $106.42 $184.74 $263.06 $341.38 $419.70 $498.01 $49.16
3 CY $118.39 $208.67 $298.95 $389.24 $479.51 $569.80 $54.70
4 CY $130.34 $232.59 $334.83 $437.06 $539.32 $641.56 $60.22
6 CY $154.27 $280.43 $406.59 $532.76 $658.93 $785.09 $71.26
8 CY $178.19 $328.29 $478.37 $628.45 $778.53 $868.54 $82.31
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Table 3-5: Recommended Monthly Rates for Commercial Dumpster Refuse Customers
FY 2022
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x Twice a Month
2 CY $111.74 $193.98 $276.22 $358.45 $440.69 $522.91 $51.61
3 CY $124.31 $219.11 $313.90 $408.70 $503.49 $598.29 $57.44
4 CY $136.86 $244.22 $351.58 $458.92 $566.28 $673.63 $63.23
6 CY $161.99 $294.46 $426.92 $559.39 $691.87 $824.34 $74.83
8 CY $187.10 $344.70 $502.28 $659.87 $817.45 $911.96 $86.42
FY 2023
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x Twice a Month
2 CY $117.33 $203.68 $290.03 $376.38 $462.72 $549.06 $54.20
3 CY $130.52 $230.06 $329.59 $429.13 $528.66 $628.20 $60.31
4 CY $143.70 $256.43 $369.16 $481.86 $594.60 $707.32 $66.39
6 CY $170.09 $309.18 $448.27 $587.36 $726.47 $865.56 $78.57
8 CY $196.46 $361.93 $527.40 $692.86 $858.33 $957.56 $90.74
FY 2024
Collections per Week
Dumpster Size 1x 2x 3x 4x 5x 6x Twice a Month
2 CY $123.20 $213.86 $304.53 $395.19 $485.86 $576.51 $56.91
3 CY $137.05 $241.57 $346.07 $450.59 $555.09 $659.61 $63.32
4 CY $150.89 $269.26 $387.61 $505.96 $624.33 $742.68 $69.71
6 CY $178.59 $324.64 $470.68 $616.73 $762.79 $908.84 $82.50
8 CY $206.28 $380.03 $553.77 $727.51 $901.24 $1,005.44 $95.28
Table 3-6: Recommended Monthly Rates for OCC Dumpster Customers
Collections per Week
OCC Dumpster1 1x 2x 3x 4x 5x 6x
Twice a
Month
FY 2020 $28.25 $56.50 $84.74 $112.99 $141.24 $169.49 $13.04
FY 2021 $31.07 $62.15 $93.22 $124.29 $155.36 $186.44 $14.34
FY 2022 $34.18 $68.36 $102.54 $136.72 $170.90 $205.08 $15.78
FY 2023 $37.60 $75.20 $112.79 $150.39 $187.99 $225.59 $17.35
FY 2024 $41.36 $82.72 $124.07 $165.43 $206.79 $248.15 $19.09
1.The cost of service for OCC dumpster customers does not vary by dumpster size.
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3.3.7 Commercial Roll-Off
Table 3-7 shows the recommended commercial roll-off rates based on the percentage increases identified
in Table 3-3. Gallatin County, City departments, and non-profit organizations receiving free roll-off
container pulls will continue to receive free pulls under the rate recommendation. To supplement rate
changes for commercial roll-off customers, an additional fee of $100 per container delivery is
recommended to begin in FY 2020 for free and paid roll-off customers.
Table 3-7: Recommended Rates for Commercial Roll-off
Roll-off Size
Current Rate per Pull1 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Free 20, 30, 40 CY $0 $0 $0 $0 $0 $0
20, 30, 40 CY $250 $300.00 $315.00 $330.75 $347.29 $364.65
Yard Waste $135 $162.00 $170.10 $178.61 $187.54 $196.91
Water Reclamation Facility $170 $204.00 $214.20 $224.91 $236.16 $247.96
1.A rate change for the daily rental fee is not proposed.
3.4 Net Revenue with Recommended Rates
Table 3-8 is a revised version of Table 3-1 based on the recommended rates described in Section 3.1.
Schedule 10 in the Appendix provides additional detail. Figure 3-5 provides a visual representation of the
annual net revenue by customer class based on recommended rates.
Table 3-8: Over (Under) Recovery by Customer Class Based on Recommended Rates
Customer Class FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Residential $290,412 $274,971 $296,338 $318,767 $342,306
Recycling ($39,760) ($54,194) ($65,736) ($77,783) ($90,357)
Temporary Dumpster ($12,130) ($15,982) ($18,522) ($21,167) ($23,921)
Commercial Dumpster ($135,905) ($112,796) ($76,290) ($38,212) ($39,338)
Commercial Roll-Off ($117,816) ($115,215) ($108,044) ($100,166) ($91,531)
Annual Over
(Under) Recovery1 ($15,199) ($23,216) $27,746 $81,439 $97,161
Cumulative Over (Under) Recovery1
($15,199) ($38,415) ($10,670) $70,769 $167,930
1.Values may not calculate exactly due to rounding.
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Figure 3-5: Net Revenue by Customer Class Based on Recommended Rates
The City will maintain an ending fund balance of at least 90 days, or roughly 25%, of its annual expenses
each year of the five-year study period. Table 3-9 shows the changes in reserve given the proposed rate
adjustments. Figure 3-6 provides a visual representation of the City’s reserve fund balance under
proposed rates for the five-year forecast.
Table 3-9: 90-Day Reserve Based on Recommended Rates
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Beginning Balance $1,606,283 $1,591,084 $1,567,868 $1,595,613 $1,677,052
Net Revenue ($15,199) ($23,216) $27,746 $81,439 $97,161
Reserve Fund Balance1 $1,591,084 $1,567,868 $1,595,613 $1,677,052 $1,774,213
Reserve Days 126 120 119 121 125
1.Values may not calculate exactly due to rounding.
($200,000)
($100,000)
$0
$100,000
$200,000
$300,000
$400,000
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Annual Net Revenue
Residential Recycling Temporary Dumpster Commercial Dumpster Commercial Roll-off
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Solid Waste Rate Study Rate Design
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Figure 3-6: Net Revenue and Reserve Fund Days Based on Recommended Rates
3.5 Key Findings and Recommendations
Below are several key findings and recommendations based on the projected Revenue Requirement and
recommended rates:
1.The current recycling, temporary dumpster, commercial dumpster and commercial roll-off rates
are insufficient to maintain the 90-Day Reserve after FY 2020.
2. Burns & McDonnell recommends the following rate adjustments during the five-year forecast:
a.The City implements a 3.0 percent rate increase in FY 2020, and each of the following years
in the five-year forecast for residential carts sized 65 gallons and larger.
b. The City increases the fee for bulk item pickup in FY 2020.
c.The City maintains current recycling rates to incentivize subscribers to continue recycling.
d.The City implements delivery and collection fees for temporary dumpster customers.
e.The City implements a ten percent rate increase in FY 2020 and 2021, followed by a five
percent rate increase each year between FY 2022 and 2024 for commercial refuse customers.
f.The City begins charging commercial customers for OCC collection at about a third of the
price of refuse dumpster collection.
100
105
110
115
120
125
130
($500,000)
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 DaysAnnual Net Revenue Reserve Fund Balance Reserve Days
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3. The City implements a twenty percent rate increase in FY 2020, followed by a five percent rate
increase each year between FY 2022 and 2024 for paid commercial roll-off customers. A
delivery charge is also recommended to begin in FY 2020 for all roll-off customers.
4.Given the proposed rate changes, the City will be able to maintain at least a 90-day reserve during
each year of the five-year study period.
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4.0 BENCHMARK ANALYSIS
Burns & McDonnell completed a benchmark analysis to compare the City’s programs and rates for
residential and commercial collection services to those of similar cities. Before describing the results,
Burns & McDonnell provides a brief overview of the overall methodology.
4.1 Methodology
Burns & McDonnell selected the cities for the residential benchmark analysis (as shown in Table 4-1) in
collaboration with City staff throughout the cost of service study. The cities selected for benchmarking
were chosen due to their similarities to the City, including their population, size, physical geography, and
commitment to preserving their natural features. Many of the benchmarked cities are destinations for
ecotourism and are known for their environmental consciousness.
4.2 Residential Benchmarking
The residential benchmark analysis compared the cities’ current residential services base rates, services
provided with the base rates, and any fees for additional services not included in the base rates.
Residential services evaluated for each benchmark city, whether provided in base-level services or for an
additional fee, included collection of refuse, recycling, yard waste, and bulk item pickup. As it is the case
with the City of Bozeman, the cities of Austin, TX; Cheyenne, WY; Flagstaff, AZ; and Tempe, AZ
provide service for residential customers with city crews. Washoe County, NV (includes the City of
Reno) receives residential services exclusively through Waste Management, and Gresham, OR designates
private haulers to service different zones through a competitive procurement. Eugene, OR is served by an
open system of private haulers.
The benchmarked cities have unique characteristics that contribute to rate and service detail differences.
In general, services offered are comparable among all cities evaluated. The largest variable in this
analysis is each city’s monthly base rate, rather than the level of services offered. The frequency which
services are provided and whether services require additional fees are the primary reasons for differences
in the base rates among the benchmark cities.
4.2.1 Residential Rates and Services Comparison
A comparison of residential collection service base rates for the City of Bozeman and the benchmark
cities is presented in Table 4-1. The City provides all four benchmark services, either included in the base
rates, or at an additional charge.
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Table 4-1: Residential Services Available for Benchmark Cities
Benchmark City Base Rate (Monthly)1 Residential Refuse Recycling Bulk Separate Yard Waste2
Bozeman, MT (Current) $24.46
Bozeman, MT (Proposed) $25.19
Tempe, AZ $25.09
Washoe County, NV $26.58 –
Cheyenne, WY $29.15
Gresham, OR $47.53
Austin, TX $51.80
Eugene, OR $52.75
Flagstaff, AZ3 Not Available –
1.Base rates presented in Table 4-1 include stated base rates plus any applicable monthly fees added to customers’ solid waste charges,such as an administrative or public education fee. If a city has a pay-as-you-throw rate structure, the rates for carts sized 90-100 gallonswere chosen. Where tax values were specifically identified as a separate value from base rates, tax was not included in the presentedbase rate value.2.Flagstaff and Washoe County collect yard waste in the same cart as refuse. All other cities provide yard waste collection separately.3.As of the date of this report, the City of Flagstaff has not provided its monthly residential rate.
Legend
Included in Base Rate Available at Additional Charge Not Available
–
Sections 4.2.2 through 4.2.5 compare services offered by Bozeman and each benchmark city. Two of the
benchmark cities, Tempe and Austin, provide base-rate options for all four of the benchmark services
included in the analysis. Three cities—Cheyenne, Eugene, and Gresham—include three of the
benchmark services in their rate, with the fourth service at an additional charge. Washoe County and
Flagstaff provide two and three services in their base rates, respectively, but do not offer residents
separate yard waste collection. Table 4-2 shows the percent differences in base rate to Bozeman’s current
and proposed rates. Figure 4-1 compares the monthly base rates among the benchmark cities visually.
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Solid Waste Rate Study Benchmark Analysis
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Table 4-2: Residential Base Rates and Services
Benchmark City Residential Service Provider Base Rate (Monthly)1,2
% Change from Bozeman (Proposed)
Bozeman, MT (Current) Public $24.46 (3.0%)
Bozeman, MT (Proposed) Public $25.19 0.0%
Tempe, AZ Public $25.09 (0.4%)
Washoe County, NV Public $26.58 5.6%
Cheyenne, WY Public $29.15 15.7%
Gresham, OR Private $47.53 88.7%
Austin, TX Public $51.80 105.6%
Eugene, OR Private $52.75 109.4%
Flagstaff, AZ3 Public Not Available N/A
Average N/A $38.82 64.9%
1.Base rates presented in Table 4-2 include stated base rates plus any applicable monthly fees added to customers’solid waste charges, such as an administrative or public education fee. Solid waste tax data was not available for allcities. Where tax values were specifically identified as a separate value from base rates, tax was not included in thepresented base rate value. Where solid waste tax data was not specified separately from the city’s base rate, the statedbase rate was included.2.Austin, Bozeman, Cheyenne, Eugene, Gresham, and Washoe County have variable rate structures to incentivizeresidents using recyclables. Rates shown in the table include refuse collection for carts sized 90- to 100-gallons.3.Flagstaff did not provide details on their residential rates after being contacted.
Figure 4-1: Residential Base Rate Comparison
$52.75
$51.80
$47.53
$29.15
$26.58
$25.19
$25.09
$24.46
$0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 $55
Eugene, OR
Austin, TX
Gresham, OR
Cheyenne, WY
Washoe County, NV
Bozeman - FY 2020 Proposed
Tempe, AZ
Bozeman - Current
Monthly Base Rate for Carts Sized 90 to 100 Gallons
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City of Bozeman, Montana 4-4 Burns & McDonnell
4.2.2 Residential Refuse Collection Service
Refuse collection service is offered weekly for all benchmark cities, included in the base rate. Like
Bozeman, most benchmark cities provide residents with a pay-as-you-throw variable rate structure.
Bozeman offers residents comparably large cart sizes, and the lowest cost per additional cart. Table 4-3
provides further detail on refuse collection frequency and additional costs for additional fees and services.
Table 4-3: Refuse Collection
City Service Included in Base Rate Collection Frequency Additional Services and Fees
Bozeman, MT (Current) 100-gallon carts1 Weekly Additional cart available at $6.10/month.
Bozeman, MT (Proposed) 100-gallon carts1 Weekly Additional cart available at
$6.10/month.
Tempe, AZ 90-gallon carts1 Weekly Additional cart available at
$16.74/month.
Washoe County, NV 96-gallon carts1 Weekly Additional cart available at $7.69/month.
Cheyenne, WY 95-gallon carts1 Weekly Additional cart available at $9.80/month.
Gresham, OR 95-gallon carts1 Weekly Additional cart available at $27.50/month.
Austin, TX 96-gallon carts1 Weekly Bag tags are available for $4.00 per bag of additional refuse.
Eugene, OR 90-gallon carts1 Weekly Additional cart available at
$46.00/month.
Flagstaff, AZ 90-gallon carts Weekly N/A
1.City provides a pay-as-you-throw pricing. Refuse benchmarking is provided for carts sized between 90- and 100-gallon. For allcities in the study besides Bozeman, carts sized between 90- and 100-gallons represent the highest level of service. Bozemanalso offers 220-, 300-, and 450-gallon carts to residents with pricing based on size.
4.2.3 Residential Curbside Recycling Collection Service
Curbside recycling collection is provided in the base rate for most benchmark cities. Bozeman and
Flagstaff offer subscription services for recycling collection. Of the six cities that provide recycling in
their base rates, Tempe, Gresham, and Flagstaff provide weekly collection, with the remaining benchmark
cities providing collection every other week. Bozeman’s subscription recycling service offers large
recycling carts to residential customers to complement the City’s pay-as-you-throw base rate structure.
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City of Bozeman, Montana 4-5 Burns & McDonnell
Table 4-4: Curbside Recycling Collection
City Service Included in Base Rate Collection Frequency Additional Services and Fees
Bozeman, MT (Current) N/A Every Other Week
Subscription recycling is available to residents for $9.93 per month for a 100-gallon cart collected every other week. 300-gallon carts are available for $15.00 per
month.
Bozeman, MT (Proposed) N/A Every Other Week
Subscription recycling is available to residents for $9.93 per month for a 100-
gallon cart collected every other week. 300-gallon carts are available for $15.00 per month.
Tempe, AZ 90-gallon carts Weekly N/A
Washoe County, NV 96-gallon carts Every Other Week N/A
Cheyenne, WY 95-gallon carts Every Other Week Additional cart available at $6.95 per month.
Gresham, OR 60-gallon carts Weekly N/A
Austin, TX 96-gallon carts Every Other Week Additional cart available for no extra charge.
Eugene, OR 90- or 95-carts1 Every Other Week
Additional cart available at $3.40 per month.
Residents may receive recycling collection without refuse collection for $7.60 per
month.
Flagstaff, AZ 90-gallon carts Weekly
Recycling collection included in the base rate does not include glass. Separate glass collection
is offered by subscription at $3.81 per month.
1.Cart size varies by hauler.
4.2.4 Residential Separate Yard Waste Collection Service
Separate yard waste collection is the only service that is not provided by all benchmarked cities. Flagstaff
and Washoe County do not include yard waste in their base rates or via a subscription service. The
remaining cities offer yard waste collection, with frequency ranging from three times a year to weekly.
Along with Austin, Eugene, and Gresham, Bozeman provides weekly service at no additional cost to
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Solid Waste Rate Study Benchmark Analysis
City of Bozeman, Montana 4-6 Burns & McDonnell
residents. Of the four cities providing weekly yard waste collection in their base rates, Bozeman offers its
residents the lowest base rate after the proposed rate change. Table 4-5 provides further detail on separate
yard waste collection frequency and additional services and fees.
Table 4-5: Separate Yard Waste Collection
City Items Collected Collection Frequency Additional Services and Fees
Bozeman, MT (Current) Grass clippings, leaves, small branches Weekly N/A
Bozeman, MT (Proposed) Grass clippings, leaves, small branches Weekly N/A
Tempe, AZ Leaves, small branches Three Times per Year Service is provided during three of the six
bulk collection days.
Washoe County, NV N/A N/A
Residents combine yard waste in their refuse bins or bring it to a
transfer station.
Cheyenne, WY Brush, yard waste Weekly
Service offered via subscription for an additional $9.20/month for a 95-gallon cart.
Gresham, OR Grass clippings, leaves,
small branches Weekly N/A
Austin, TX Grass clippings, leaves, small branches Weekly Service provided via cart or kraft bag.
Eugene, OR Varies by Hauler Week/Every Other Week1 N/A
Flagstaff, AZ N/A N/A Residents combine yard waste in their refuse
bins.
1.Frequency of collection varies by hauler.
4.2.5 Residential Bulky Waste Collection Service
Bulky waste has greater variation in service among benchmark cities than refuse, recycling, and yard
waste collection services, particularly in pricing and frequency of collection. Of the eight cities studied,
three provide scheduled residential bulk item collections, with frequency ranging from twice per year to
monthly. The remaining cities offer call-in bulk item collection programs, with only Eugene providing
service at no additional charge. After the proposed fee change from $10 to $25 per pickup, Bozeman
provides a low cost for on-call bulk item pickup compared to the benchmark cities. As noted by City
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City of Bozeman, Montana 4-7 Burns & McDonnell
staff, the low cost of bulk item collection incentivizes Bozeman residents to properly dispose of their bulk
waste. Table 4-6 provides further detail on bulky collection frequency and associated costs.
Table 4-6: Bulky Waste Collection
City Service Included in Base Rate Collection Collection Type/ Frequency Additional Services and Fees
Bozeman, MT (Current) None Call-in Bulk item pickup available for $10 per item.
Bozeman, MT (Proposed) None Call-in Bulk item pickup available for $25 per item.
Tempe, AZ Six pickups per year Every Other Month Additional bulk item pickup available for $200 plus disposal
costs.
Washoe County, NV None Call-in Bulk item pickup available for $11.99 per cubic yard.
Cheyenne, WY Unlimited Call-in N/A
Gresham, OR None Call-in Bulk item pickup pricing starts at $26 for large items.
Austin, TX Two pickups per year Twice per Year Additional bulk item pickup available for $120 for two items.
Eugene, OR N/A Call-in
Bulk item pickup pricing starts at $25, with additional fees variable by hauler.
Flagstaff, AZ 10-12 pickups per year 10-12 times per Year
Additional bulk item pickup available for $76.58 per half
hour of crew time.
4.3 Commercial Dumpster Benchmarking
Burns & McDonnell performed commercial dumpster service benchmarking based on commercial
dumpster collection matrices for cities with city-provided or publicly available rates. Benchmark cities
that were not included in the analysis are Flagstaff, which does not provide details on commercial
dumpster rates, and Austin, which has varied dumpster rates determined by private haulers. In order to
compare the rates for each city, Burns & McDonnell calculated the cost of disposal and collection per
cubic yard (CY) per month for commercial customers in applicable cities in Figure 4-1. The City of
Bozeman charges less than all benchmark cities besides Tempe, even after the proposed FY 2020 rate
change.
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Solid Waste Rate Study Benchmark Analysis
City of Bozeman, Montana 4-8 Burns & McDonnell
Figure 4-2: Commercial Dumpster Cost per CY Comparison
4.4 Commercial Roll-off Benchmarking
The commercial roll-off benchmark analysis compared the City’s cost of roll-off container pull charge,
waste disposal, and daily rental fees to those of the benchmarked cities. Benchmark cities that were not
included in the analysis are Flagstaff, which does not provide details on commercial roll-off rates, and
Austin, which has varied roll-off rates determined by private haulers. Burns & McDonnell determined
that a cost of a 30 CY roll-off container disposing of four tons of solid waste material over a 15-day-rental
period would serve as a common scenario to determine differences in service costs among cities. Figure
4-2 shows the comparison of commercial roll-off rates given these assumptions.
$19.42
$17.57
$11.82
$7.42
$6.58
$5.98
$4.30
$0 $5 $10 $15 $20
Eugene, OR
Gresham, OR
Washoe County, NV
Cheyenne, WY
Bozeman - FY 2020 Proposed
Bozeman - Current
Tempe, AZ
Average Cost per CY
Average Cost Per Cubic Yard (Collection + Disposal)
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Solid Waste Rate Study Benchmark Analysis
City of Bozeman, Montana 4-9 Burns & McDonnell
Figure 4-3: Commercial Roll-off Total Cost Comparison
The City of Bozeman remains competitive with benchmark cities after a proposed 20 percent rate increase
on paid pulls and $100 delivery charge in FY 2020. Proposed rate changes would allow the City to
continue providing free pulls to Gallatin County and City departments and would reduce the under-
recovery of roll-off customers by 40 percent in FY 2020.
4.5 Benchmark Analysis Key Findings
The City of Bozeman has comparably low fees for its customers across its waste collection and disposal
services. The following findings demonstrate that even after the proposed rate increases, the City offers
high quality service at a relatively reasonable price.
1. The City’s proposed FY 2020 base residential rate for a 100-gallon refuse cart is on average 64.9
percent less expensive than the benchmark cities with similar cart sizes. For the services provided,
the City provides comparable quality to all the benchmark cities, with yard waste collected weekly.
Beyond the base monthly rate, the City also offers the lowest additional rate for extra refuse
containers and a bulk item pickup program with low additional costs to residents.
2. Based on collection and disposal cost to commercial dumpster customers, the City charges one of the
lowest rates compared to the benchmark cities.
$767.40
$662.83
$524.00
$510.04
$505.96
$403.65
$374.00
$0 $100 $200 $300 $400 $500 $600 $700 $800 $900
Gresham, OR
Washoe County, NV
Bozeman - FY 2020 Proposed
Eugene, OR
Cheyenne, WY
Tempe, AZ
Bozeman - Current
Average Total Cost Per Pull
Average Total Cost Per Pull (30 CY, 4 Tons Disposal)
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Solid Waste Rate Study Benchmark Analysis
City of Bozeman, Montana 4-10 Burns & McDonnell
3.Given a common scenario for commercial roll-off customers, the City offers competitive prices for
pull fees, rental, and disposal compared to the benchmark cities after FY 2020 proposed rate changes
and proposed delivery fees.
284
APPENDIX
Schedules
285
City of Bozeman, MontanaSolid Waste Cost of Service Schedule 1Test Year
Account Nbr Description FY 2017 Actual FY 2018 Actual FY 2019 Projected 2020 Proposed Budget Adjustments Test Year Comments
COLLECTIONS640-5810-447.10-01 REGULAR EARNINGS $614,837 $664,835 $832,979 $896,034 $896,034640-5810-447.10-02 ADDITIONAL EARNINGS $10,140 $11,454 $11,228 $10,400 $10,400640-5810-447.10-03 DIFFERENTIAL EARNINGS $0 $0 $0 $0 $0
640-5810-447.10-04 TERMINATION PAY $4,907 $0 $0 $0 $0
640-5810-447.10-05 VACATION $35,555 $58,236 $0 $0 $0
640-5810-447.10-06 SICK LEAVE $17,755 $25,405 $0 $0 $0
640-5810-447.10-07 LONGEVITY $11,641 $12,029 $14,247 $12,895 $12,895
640-5810-447.11-20 OVERTIME $81,402 $90,146 $23,288 $23,288 $23,288640-5810-447.12-30 PERS $69,417 $99,459 $76,929 $83,137 $83,137640-5810-447.12-33 HEALTH/DENTAL INSURANCE $153,205 $182,408 $190,478 $206,956 $206,956640-5810-447.12-34 LIFE INSURANCE $564 $604 $660 $696 $696640-5810-447.12-35 UNEMPLOYMENT TAX $1,165 $2,125 $2,147 $3,218 $3,218640-5810-447.12-36 F.I.C.A $55,972 $61,280 $61,901 $69,892 $69,892640-5810-447.12-37 WORKERS' COMP $45,923 $58,841 $60,089 $77,666 $77,666640-5810-447.19-01 PENSION GASB68 NON-CASH -$123,689 $110,879 $0 $0 $0
640-5810-447.20-10 OFFICE SUPPLIES $4,426 $1,222 $2,500 $2,000 $2,000
640-5810-447.20-20 COMPUTER SUPPLIES $21,466 $6,801 $3,250 $5,250 $5,250
640-5810-447.20-21 PERSONAL COMPUTERS $1,255 $7,862 $7,560 $7,560 $7,560
640-5810-447.20-30 CLOTHING & UNIFORMS $4,675 $3,170 $4,500 $4,800 $4,800
640-5810-447.20-40 CHEMICALS $0 $0 $0 $0 $0
640-5810-447.20-50 ROAD SUPPLIES $55,095 $6,317 $5,000 $5,000 $5,000640-5810-447.20-60 VEHICLE SUPPLIES $4,312 $2,207 $1,700 $3,700 $3,700640-5810-447.20-61 GASOLINE AND OIL $153,419 $171,977 $143,000 $202,000 $202,000640-5810-447.20-65 SMALL EQUIPMENT AND TOOLS $609 $257 $2,000 $500 $500640-5810-447.20-70 BOOKS & REFERENCE MTRLS $0 $0 $0 $0 $0640-5810-447.20-80 GOODS PURCHSD FOR RESALE $0 $0 $0 $0 $0640-5810-447.20-99 GENERAL $147,461 $180,467 $205,500 $205,500 $205,500640-5810-447.30-10 REPAIR & MAINT- EQUIPMENT $178,759 $181,008 $140,000 $200,000 $200,000
640-5810-447.30-20 REPAIR & MAINT- BUILDINGS $1,228 $3,396 $5,000 $35,000 $35,000
640-5810-447.30-30 REPAIR & MAINT - OTHER $1,722 $4,983 $0 $0 $0
640-5810-447.40-10 ELECTRICITY $6,772 $6,794 $7,500 $7,000 $7,000
640-5810-447.40-20 WATER SERVICE $0 $0 $0 $0 $0
640-5810-447.40-30 SEWER SERVICE $0 $0 $0 $0 $0640-5810-447.40-40 NATURAL GAS $0 $0 $0 $0 $0640-5810-447.40-41 PROPANE GAS FOR BUILDINGS $19,308 $25,187 $15,000 $20,000 $20,000640-5810-447.40-50 TELEPHONE $3,928 $5,181 $8,900 $8,100 $8,100640-5810-447.40-55 INTERNET $2,004 $1,894 $2,600 $1,900 $1,900640-5810-447.40-60 REFUSE DISPOSAL $479,130 $517,109 $510,000 $572,000 $36,187 $608,187 (A)640-5810-447.40-70 STORM WATER $321 $312 $400 $320 $320640-5810-447.40-99 GENERAL $0 $0 $0 $0 $0
640-5810-447.50-10 CONSULTANTS & PROF SERV $84,969 $59,993 $64,200 $64,200 $64,200
640-5810-447.50-20 MAINTENANCE CONTRACTS $9,739 $8,901 $10,950 $10,950 $10,950
640-5810-447.50-30 JANITORIAL CONTRACTS $5,481 $7,000 $5,500 $7,000 $7,000
640-5810-447.50-80 MEDICAL SERVICES $2,575 $2,297 $3,300 $3,300 $3,300
640-5810-447.50-99 GENERAL $14,587 $22,402 $21,400 $21,400 $21,400
640-5810-447.60-10 IN-STATE $1,261 $1,048 $3,000 $3,000 $3,000640-5810-447.60-20 OUT-OF-STATE $7,007 $6,645 $9,000 $9,000 $9,000640-5810-447.70-10 ADVERTISING $9,158 $13,429 $47,500 $50,500 $50,500640-5810-447.70-20 SUBSCRIPTIONS $0 $229 $350 $350 $350640-5810-447.70-30 OPERATING INTEREST $0 $0 $0 $0 $0640-5810-447.70-40 POSTAGE $11,987 $11,159 $13,500 $13,500 $13,500640-5810-447.70-50 SHIPPING & HANDLING $0 $26 $0 $0 $0640-5810-447.70-55 DUES & SUBSCRIPTIONS $257 $257 $600 $1,000 $1,000
640-5810-447.70-60 TAXES & ASSESSMENTS $50,759 $62,113 $60,110 $63,747 $63,747
640-5810-447.70-70 INSURANCE $52,538 $99,444 $65,138 $69,148 $69,148
640-5810-447.70-80 DEPRECIATION $261,273 $325,535 $0 $0 $0
640-5810-447.70-81 CLOSURE LANDFILL COSTS $0 $0 $0 $0 $0
640-5810-447.70-82 AMORTIZATION OF BONDS $0 $0 $0 $0 $0640-5810-447.70-90 RENTS & LEASES $116 $64,000 $700 $700 $700640-5810-447.70-99 GENERAL $11,170 $14,713 $10,400 $15,400 $15,400640-5810-447.75-10 ADMINISTRATIVE OVERHEAD $449,463 $571,610 $549,711 $605,259 $605,259640-5810-447.75-30 VEH MAINT FUND ALLOCATION $156,563 $178,119 $162,723 $198,273 $198,273640-5810-447.75-99 GENERAL $0 $0 $0 $0 $0
Other Other
640-5810-447.80-10 VEH: AUTOS + LIGHT TRUCKS $73,144 $0 $0 $30,000 ($30,000)$0 (B)
640-5810-447.80-20 M&E: MACH+EQUIP/HEAVY TRUK $621,150 $100,000 $100,000 $860,000 ($105,862)$754,138 (B)
640-5810-447.80-40 M&E: OFFICE EQUIP+FURNITUR $2,793 $0 $0 $0 $0
640-5810-447.80-90 IMP: INFRASTRUCTURE+IMPROV $39,550 $0 $0 $0 $0
Blank Blank $0 $0 $0 $0 $0
Blank Blank $0 $0 $0 $0 $0BlankBlank$0 $0 $0 $0 $0BlankBlank$0 $0 $0 $0 $0
Total Collections $3,930,226 $4,052,766 $3,466,438 $4,691,539 ($99,675)$4,591,864
RECYCLING AND COMPOST640-5820-447.10-01 REGULAR EARNINGS $45,239 $44,529 $49,650 $51,636 $51,636
640-5820-447.10-02 ADDITIONAL EARNINGS $0 $0 $0 $0 $0
640-5820-447.10-03 DIFFERENTIAL EARNINGS $0 $0 $0 $0 $0
640-5820-447.10-04 TERMINATION PAY $0 $0 $0 $0 $0
640-5820-447.10-05 VACATION $1,170 $4,950 $0 $0 $0
640-5820-447.10-06 SICK LEAVE $1,352 $2,494 $0 $0 $0640-5820-447.10-07 LONGEVITY $570 $653 $832 $936 $936640-5820-447.11-20 OVERTIME $4,525 $3,770 $0 $0 $0640-5820-447.12-30 PERS $4,968 $6,835 $4,820 $5,057 $5,057640-5820-447.12-33 HEALTH/DENTAL INSURANCE $14,375 $14,510 $14,676 $15,251 $15,251640-5820-447.12-34 LIFE INSURANCE $42 $42 $42 $42 $42640-5820-447.12-35 UNEMPLOYMENT TAX $79 $138 $126 $184 $184640-5820-447.12-36 F.I.C.A $3,623 $3,849 $3,414 $3,565 $3,565
640-5820-447.12-37 WORKERS' COMP $3,340 $3,921 $3,636 $4,567 $4,567
640-5820-447.20-10 OFFICE SUPPLIES $0 $0 $500 $0 $0
640-5820-447.20-20 COMPUTER SUPPLIES $0 $0 $100 $0 $0
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City of Bozeman, MontanaSolid Waste Cost of Service Schedule 1Test Year
Account Nbr Description FY 2017 Actual FY 2018 Actual FY 2019 Projected 2020 Proposed Budget Adjustments Test Year Comments
640-5820-447.20-30 CLOTHING & UNIFORMS $0 $0 $250 $0 $0640-5820-447.20-40 CHEMICALS $0 $0 $0 $0 $0640-5820-447.20-50 ROAD SUPPLIES $0 $0 $0 $0 $0640-5820-447.20-60 VEHICLE SUPPLIES $0 $0 $250 $0 $0640-5820-447.20-61 GASOLINE AND OIL $6,199 $11,006 $17,000 $21,000 $21,000
640-5820-447.20-65 SMALL EQUIPMENT AND TOOLS $0 $0 $0 $0 $0
640-5820-447.20-70 BOOKS & REFERENCE MTRLS $0 $0 $0 $0 $0
640-5820-447.20-80 GOODS PURCHSD FOR RESALE $0 $0 $0 $0 $0
640-5820-447.20-99 GENERAL $28,244 $50,844 $130,000 $133,000 $133,000
640-5820-447.30-10 REPAIR & MAINT- EQUIPMENT $13,846 $9,088 $7,000 $26,000 $26,000640-5820-447.30-20 REPAIR & MAINT- BUILDINGS $0 $0 $0 $0 $0640-5820-447.30-30 REPAIR & MAINT - OTHER $0 $0 $0 $0 $0640-5820-447.40-10 ELECTRICITY $0 $0 $0 $0 $0640-5820-447.40-20 WATER SERVICE $0 $0 $0 $0 $0640-5820-447.40-30 SEWER SERVICE $0 $0 $0 $0 $0640-5820-447.40-40 NATURAL GAS $0 $0 $0 $0 $0640-5820-447.40-50 TELEPHONE $0 $0 $0 $0 $0
640-5820-447.40-60 REFUSE DISPOSAL $0 $0 $0 $0 $0
640-5820-447.40-99 GENERAL $0 $0 $600 $0 $0
640-5820-447.50-10 CONSULTANTS & PROF SERV $12,959 $75,009 $35,000 $175,000 $175,000
640-5820-447.50-20 MAINTENANCE CONTRACTS $11 $11 $50 $0 $0
640-5820-447.50-30 JANITORIAL CONTRACTS $0 $0 $0 $0 $0
640-5820-447.50-80 MEDICAL SERVICES $80 $0 $200 $0 $0640-5820-447.50-99 GENERAL $26,241 $17,559 $0 $0 $0640-5820-447.60-10 IN-STATE $0 $0 $0 $0 $0640-5820-447.60-20 OUT-OF-STATE $0 $0 $0 $0 $0640-5820-447.70-10 ADVERTISING $0 $0 $27,000 $27,000 $27,000640-5820-447.70-20 SUBSCRIPTIONS $0 $0 $0 $0 $0640-5820-447.70-30 OPERATING INTEREST $0 $0 $0 $0 $0640-5820-447.70-40 POSTAGE $0 $0 $2,500 $0 $0
640-5820-447.70-50 SHIPPING & HANDLING $0 $0 $0 $0 $0
640-5820-447.70-55 DUES & SUBSCRIPTIONS $0 $0 $0 $0 $0
640-5820-447.70-60 TAXES & ASSESSMENTS $0 $0 $0 $0 $0
640-5820-447.70-70 INSURANCE $0 $0 $0 $0 $0
640-5820-447.70-80 DEPRECIATION $15,515 $30,522 $0 $0 $0640-5820-447.70-81 CLOSURE LANDFILL COSTS $0 $0 $0 $0 $0640-5820-447.70-82 AMORTIZATION OF BONDS $0 $0 $0 $0 $0640-5820-447.70-90 RENTS & LEASES $0 $0 $0 $0 $0640-5820-447.70-99 GENERAL $0 $0 $0 $0 $0640-5820-447.75-99 GENERAL $0 $0 $0 $0 $0
Other Other
Blank Blank $0 $0
Blank Blank $0 $0
Blank Blank $0 $0
Blank Blank $0 $0
Blank Blank $0 $0
Blank Blank $0 $0BlankBlank$0 $0BlankBlank$0 $0
Total Recycling and Compost $182,376 $279,728 $297,646 $463,238 $0 $463,238
REVENUE OFFSETS640-0000-312.02-02 PENALTY AND INTEREST ($54)($234)$0 $0 $0640-0000-333.50-00 OTHER STATE REVENUE ($20,852)($24,471)$0 $0 $0640-0000-345.30-20 SPECIAL GARBAGE PICKUP ($51,160)($38,000)($39,250)$39,250 $0 (C)640-0000-345.30-22 DUMPSTER REVENUE ($561,433)($471,946)($490,824)$490,824 $0 (C)640-0000-345.30-24 TOTE REVENUE ($2,400,701)($2,448,568)($2,546,510)$2,546,510 $0 (C)
640-0000-345.30-26 ROLLOFF - SERVICE FEE ($287,908)($361,908)($376,384)$376,384 $0 (C)640-0000-345.30-28 ROLLOFF - DISPOSAL FEE ($177,990)($188,206)($195,734)($195,734)(D)640-0000-345.30-40 CURBSIDE RECYCLING REVENUE ($423,563)($384,300)($459,087)$459,087 $0 (C)640-0000-345.30-41 RECYCLING CARDBOARD ($10)$0 $0 $0640-0000-345.30-42 RECYCLING COMPOST ($17,382)($23,734)($24,684)($24,684)640-0000-345.30-45 CURBSIDE RECYCLE COMMODITY ($5,976)$0 $0 $0640-0000-361.00-00 INTEREST INCOME ($151)($6,995)($7,275)($7,275)640-0000-386.00-00 REFUNDS & REIMBURSEMENTS ($2,299)($3,078)$0 $0 ($13,691)($13,691)(E)640-0000-387.50-00 OTHER ($2,069)$0 ($8,240)($8,570)($6,580)($15,150)(F)640-0000-387.50-10 ROLLOFF CONTAINER RENTAL ($14,778)($16,695)($17,363)($17,363)
Other Other
Blank Blank $0 $0
Blank Blank $0 $0BlankBlank$0 $0
Total Revenue Offsets ($25,274)($3,968,835)($3,948,592)($4,165,681)$3,891,784 ($273,897)
Solid Waste Revenue Requirement $4,087,328 $363,660 ($184,508)$989,096 $3,792,109 $4,781,205
Footnotes
A. Adjusted to account for disposal cost based on projected collection tonnage
B. Adjusted to consolidate contributions to CIP to a single budget item
C. Adjusted as revenue will be calculated based on collections
D. Adjusted to account for the calculated cost of disposal based on commercial roll-off tonnageE. Adjusted as revenue from refunds is expected during the five-year forecastF. Adjusted to account for the revenue of bulk items at $25 per item, as a proposed rate
Burns McDonnell Page 2 of 15 8/29/2019287
City of Bozeman, Montana
Solid Waste Cost of Service
Schedule 2
Five-Year Forecast
Account Nbr Description Basis of Inflation FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Collections
640-5810-447.10-01 REGULAR EARNINGS Salary $896,034 $940,644 $964,160 $988,264 $1,012,970
640-5810-447.10-02 ADDITIONAL EARNINGS Salary $10,400 $10,918 $11,191 $11,470 $11,757
640-5810-447.10-03 DIFFERENTIAL EARNINGS Not Used $0 $0 $0 $0 $0
640-5810-447.10-04 TERMINATION PAY Not Used $0 $0 $0 $0 $0
640-5810-447.10-05 VACATION Not Used $0 $0 $0 $0 $0
640-5810-447.10-06 SICK LEAVE Not Used $0 $0 $0 $0 $0
640-5810-447.10-07 LONGEVITY Salary $12,895 $13,537 $13,875 $14,222 $14,578
640-5810-447.11-20 OVERTIME Salary $23,288 $24,447 $25,059 $25,685 $26,327
640-5810-447.12-30 PERS Salary $83,137 $87,276 $89,458 $91,694 $93,987
640-5810-447.12-33 HEALTH/DENTAL INSURANCE Benefits $206,956 $217,259 $222,691 $228,258 $233,965
640-5810-447.12-34 LIFE INSURANCE Benefits $696 $731 $749 $768 $787
640-5810-447.12-35 UNEMPLOYMENT TAX Salary $3,218 $3,378 $3,463 $3,549 $3,638640-5810-447.12-36 F.I.C.A Benefits $69,892 $73,372 $75,206 $77,086 $79,013
640-5810-447.12-37 WORKERS' COMP Benefits $77,666 $81,533 $83,571 $85,660 $87,802
640-5810-447.19-01 PENSION GASB68 NON-CASH Not Used $0 $0 $0 $0 $0
640-5810-447.20-10 OFFICE SUPPLIES General $2,000 $2,060 $2,122 $2,185 $2,251640-5810-447.20-20 COMPUTER SUPPLIES General $5,250 $5,408 $5,570 $5,737 $5,909
640-5810-447.20-21 PERSONAL COMPUTERS General $7,560 $7,787 $8,020 $8,261 $8,509
640-5810-447.20-30 CLOTHING & UNIFORMS General $4,800 $4,944 $5,092 $5,245 $5,402
640-5810-447.20-40 CHEMICALS Not Used $0 $0 $0 $0 $0640-5810-447.20-50 ROAD SUPPLIES General $5,000 $5,150 $5,305 $5,464 $5,628
640-5810-447.20-60 VEHICLE SUPPLIES Collection Vehicle Maintenance $3,700 $3,988 $4,187 $4,397 $4,616
640-5810-447.20-61 GASOLINE AND OIL Collection Vehicle Fuel $202,000 $217,714 $228,600 $240,030 $252,031
640-5810-447.20-65 SMALL EQUIPMENT AND TOOLS General $500 $515 $530 $546 $563640-5810-447.20-70 BOOKS & REFERENCE MTRLS Not Used $0 $0 $0 $0 $0
640-5810-447.20-80 GOODS PURCHSD FOR RESALE Not Used $0 $0 $0 $0 $0
640-5810-447.20-99 GENERAL General $205,500 $211,665 $218,015 $224,555 $231,292
640-5810-447.30-10 REPAIR & MAINT- EQUIPMENT Collection Vehicle Maintenance $200,000 $215,558.31 $226,336 $237,653 $249,536
640-5810-447.30-20 REPAIR & MAINT- BUILDINGS General $35,000 $36,050 $37,132 $38,245 $39,393
640-5810-447.30-30 REPAIR & MAINT - OTHER Not Used $0 $0 $0 $0 $0
640-5810-447.40-10 ELECTRICITY General $7,000 $7,210 $7,426 $7,649 $7,879
640-5810-447.40-20 WATER SERVICE Not Used $0 $0 $0 $0 $0
640-5810-447.40-30 SEWER SERVICE Not Used $0 $0 $0 $0 $0
640-5810-447.40-40 NATURAL GAS Not Used $0 $0 $0 $0 $0
640-5810-447.40-41 PROPANE GAS FOR BUILDINGS General $20,000 $20,600 $21,218 $21,855 $22,510
640-5810-447.40-50 TELEPHONE General $8,100 $8,343 $8,593 $8,851 $9,117
640-5810-447.40-55 INTERNET General $1,900 $1,957 $2,016 $2,076 $2,138
640-5810-447.40-60 REFUSE DISPOSAL Other $608,187 $614,269 $620,412 $626,616 $632,882
640-5810-447.40-70 STORM WATER General $320 $330 $339 $350 $360
640-5810-447.40-99 GENERAL Not Used $0 $0 $0 $0 $0
640-5810-447.50-10 CONSULTANTS & PROF SERV General $64,200 $66,126 $68,110 $70,153 $72,258640-5810-447.50-20 MAINTENANCE CONTRACTS General $10,950 $11,279 $11,617 $11,965 $12,324
640-5810-447.50-30 JANITORIAL CONTRACTS General $7,000 $7,210 $7,426 $7,649 $7,879
640-5810-447.50-80 MEDICAL SERVICES General $3,300 $3,399 $3,501 $3,606 $3,714
640-5810-447.50-99 GENERAL General $21,400 $22,042 $22,703 $23,384 $24,086640-5810-447.60-10 IN-STATE General $3,000 $3,090 $3,183 $3,278 $3,377
640-5810-447.60-20 OUT-OF-STATE General $9,000 $9,270 $9,548 $9,835 $10,130
640-5810-447.70-10 ADVERTISING General $50,500 $52,015 $53,575 $55,183 $56,838
640-5810-447.70-20 SUBSCRIPTIONS General $350 $361 $371 $382 $394640-5810-447.70-30 OPERATING INTEREST Not Used $0 $0 $0 $0 $0
640-5810-447.70-40 POSTAGE General $13,500 $13,905 $14,322 $14,752 $15,194
Burns McDonnell Page 3 of 15 8/29/2019288
City of Bozeman, Montana
Solid Waste Cost of Service
Schedule 2
Five-Year Forecast
Account Nbr Description Basis of Inflation FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
640-5810-447.70-50 SHIPPING & HANDLING Not Used $0 $0 $0 $0 $0640-5810-447.70-55 DUES & SUBSCRIPTIONS General $1,000 $1,030 $1,061 $1,093 $1,126
640-5810-447.70-60 TAXES & ASSESSMENTS Taxes and Assessments $63,747 $66,616 $69,613 $72,746 $76,019
640-5810-447.70-70 INSURANCE General $69,148 $71,222 $73,359 $75,560 $77,827
640-5810-447.70-80 DEPRECIATION Not Used $0 $0 $0 $0 $0
640-5810-447.70-81 CLOSURE LANDFILL COSTS Not Used $0 $0 $0 $0 $0
640-5810-447.70-82 AMORTIZATION OF BONDS Not Used $0 $0 $0 $0 $0
640-5810-447.70-90 RENTS & LEASES General $700 $721 $743 $765 $788
640-5810-447.70-99 GENERAL General $15,400 $15,862 $16,338 $16,828 $17,333
640-5810-447.75-10 ADMINISTRATIVE OVERHEAD General $605,259 $623,417 $642,119 $661,383 $681,224
640-5810-447.75-30 VEH MAINT FUND ALLOCATION Collection Vehicle Maintenance $198,273 $213,697 $224,382 $235,601 $247,381
640-5810-447.75-99 GENERAL Not Used $0 $0 $0 $0 $0
Other Other640-5810-447.80-10 VEH: AUTOS + LIGHT TRUCKS Not Used $0 $0 $0 $0 $0
640-5810-447.80-20 M&E: MACH+EQUIP/HEAVY TRUK Other $580,000 $580,000 $580,000 $580,000 $580,000
640-5810-447.80-40 M&E: OFFICE EQUIP+FURNITUR Not Used $0 $0 $0 $0 $0
640-5810-447.80-90 IMP: INFRASTRUCTURE+IMPROV Not Used $0 $0 $0 $0 $0BlankBlankNot Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Total Collections $4,417,726 $4,577,902 $4,692,307 $4,810,535 $4,932,730
RECYCLING AND COMPOST640-5820-447.10-01 REGULAR EARNINGS Salary $51,636 $54,207 $55,562 $56,951 $58,375
640-5820-447.10-02 ADDITIONAL EARNINGS Not Used $0 $0 $0 $0 $0
640-5820-447.10-03 DIFFERENTIAL EARNINGS Not Used $0 $0 $0 $0 $0
640-5820-447.10-04 TERMINATION PAY Not Used $0 $0 $0 $0 $0
640-5820-447.10-05 VACATION Not Used $0 $0 $0 $0 $0
640-5820-447.10-06 SICK LEAVE Not Used $0 $0 $0 $0 $0
640-5820-447.10-07 LONGEVITY Salary $936 $983 $1,007 $1,032 $1,058
640-5820-447.11-20 OVERTIME Not Used $0 $0 $0 $0 $0
640-5820-447.12-30 PERS General $5,057 $5,209 $5,365 $5,526 $5,692
640-5820-447.12-33 HEALTH/DENTAL INSURANCE Benefits $15,251 $16,010 $16,411 $16,821 $17,241
640-5820-447.12-34 LIFE INSURANCE Salary $42 $44 $45 $46 $47
640-5820-447.12-35 UNEMPLOYMENT TAX Salary $184 $193 $198 $203 $208
640-5820-447.12-36 F.I.C.A Benefits $3,565 $3,742 $3,836 $3,932 $4,030640-5820-447.12-37 WORKERS' COMP Benefits $4,567 $4,794 $4,914 $5,037 $5,163
640-5820-447.20-10 OFFICE SUPPLIES Not Used $0 $0 $0 $0 $0
640-5820-447.20-20 COMPUTER SUPPLIES Not Used $0 $0 $0 $0 $0
640-5820-447.20-30 CLOTHING & UNIFORMS Not Used $0 $0 $0 $0 $0640-5820-447.20-40 CHEMICALS Not Used $0 $0 $0 $0 $0
640-5820-447.20-50 ROAD SUPPLIES Not Used $0 $0 $0 $0 $0
640-5820-447.20-60 VEHICLE SUPPLIES Not Used $0 $0 $0 $0 $0
640-5820-447.20-61 GASOLINE AND OIL Compost Vehicle Fuel $21,000 $22,050 $23,153 $24,310 $25,526640-5820-447.20-65 SMALL EQUIPMENT AND TOOLS Not Used $0 $0 $0 $0 $0
640-5820-447.20-70 BOOKS & REFERENCE MTRLS Not Used $0 $0 $0 $0 $0
640-5820-447.20-80 GOODS PURCHSD FOR RESALE Not Used $0 $0 $0 $0 $0
640-5820-447.20-99 GENERAL General $133,000 $136,990 $141,100 $145,333 $149,693640-5820-447.30-10 REPAIR & MAINT- EQUIPMENT Compost Vehicle Maintenance $26,000 $27,300 $28,665 $30,098 $31,603
640-5820-447.30-20 REPAIR & MAINT- BUILDINGS Not Used $0 $0 $0 $0 $0
Burns McDonnell Page 4 of 15 8/29/2019289
City of Bozeman, Montana
Solid Waste Cost of Service
Schedule 2
Five-Year Forecast
Account Nbr Description Basis of Inflation FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
640-5820-447.30-30 REPAIR & MAINT - OTHER Not Used $0 $0 $0 $0 $0640-5820-447.40-10 ELECTRICITY Not Used $0 $0 $0 $0 $0
640-5820-447.40-20 WATER SERVICE Not Used $0 $0 $0 $0 $0
640-5820-447.40-30 SEWER SERVICE Not Used $0 $0 $0 $0 $0
640-5820-447.40-40 NATURAL GAS Not Used $0 $0 $0 $0 $0
640-5820-447.40-50 TELEPHONE Not Used $0 $0 $0 $0 $0
640-5820-447.40-60 REFUSE DISPOSAL Not Used $0 $0 $0 $0 $0
640-5820-447.40-99 GENERAL Not Used $0 $0 $0 $0 $0
640-5820-447.50-10 CONSULTANTS & PROF SERV General $175,000 $180,250 $185,658 $191,227 $196,964
640-5820-447.50-20 MAINTENANCE CONTRACTS Not Used $0 $0 $0 $0 $0
640-5820-447.50-30 JANITORIAL CONTRACTS Not Used $0 $0 $0 $0 $0
640-5820-447.50-80 MEDICAL SERVICES Not Used $0 $0 $0 $0 $0
640-5820-447.50-99 GENERAL Not Used $0 $0 $0 $0 $0
640-5820-447.60-10 IN-STATE Not Used $0 $0 $0 $0 $0640-5820-447.60-20 OUT-OF-STATE Not Used $0 $0 $0 $0 $0
640-5820-447.70-10 ADVERTISING General $27,000 $27,810 $28,644 $29,504 $30,389
640-5820-447.70-20 SUBSCRIPTIONS Not Used $0 $0 $0 $0 $0
640-5820-447.70-30 OPERATING INTEREST Not Used $0 $0 $0 $0 $0640-5820-447.70-40 POSTAGE Not Used $0 $0 $0 $0 $0
640-5820-447.70-50 SHIPPING & HANDLING Not Used $0 $0 $0 $0 $0
640-5820-447.70-55 DUES & SUBSCRIPTIONS Not Used $0 $0 $0 $0 $0
640-5820-447.70-60 TAXES & ASSESSMENTS Not Used $0 $0 $0 $0 $0640-5820-447.70-70 INSURANCE Not Used $0 $0 $0 $0 $0
640-5820-447.70-80 DEPRECIATION Not Used $0 $0 $0 $0 $0
640-5820-447.70-81 CLOSURE LANDFILL COSTS Not Used $0 $0 $0 $0 $0
640-5820-447.70-82 AMORTIZATION OF BONDS Not Used $0 $0 $0 $0 $0640-5820-447.70-90 RENTS & LEASES Not Used $0 $0 $0 $0 $0
640-5820-447.70-99 GENERAL Not Used $0 $0 $0 $0 $0
640-5820-447.75-99 GENERAL Not Used $0 $0 $0 $0 $0
Other Other
Blank Blank Not Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Total Recycling and Compost $463,238 $479,582 $494,557 $510,020 $525,989
REVENUE OFFSETS640-0000-312.02-02 PENALTY AND INTEREST Not Used $0 $0 $0 $0 $0
640-0000-333.50-00 OTHER STATE REVENUE Not Used $0 $0 $0 $0 $0
640-0000-345.30-20 SPECIAL GARBAGE PICKUP Not Used $0 $0 $0 $0 $0
640-0000-345.30-22 DUMPSTER REVENUE Not Used $0 $0 $0 $0 $0640-0000-345.30-24 TOTE REVENUE Not Used $0 $0 $0 $0 $0
640-0000-345.30-26 ROLLOFF - SERVICE FEE Not Used $0 $0 $0 $0 $0
640-0000-345.30-28 ROLLOFF - DISPOSAL FEE Other ($195,734)($197,691)($199,668)($201,665)($203,682)
640-0000-345.30-40 CURBSIDE RECYCLING REVENUE Not Used $0 $0 $0 $0 $0640-0000-345.30-41 RECYCLING CARDBOARD Not Used $0 $0 $0 $0 $0
640-0000-345.30-42 RECYCLING COMPOST No Inflation ($24,684)($24,684)($24,684)($24,684)($24,684)
Burns McDonnell Page 5 of 15 8/29/2019290
City of Bozeman, Montana
Solid Waste Cost of Service
Schedule 2
Five-Year Forecast
Account Nbr Description Basis of Inflation FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
640-0000-345.30-45 CURBSIDE RECYCLE COMMODITY Not Used $0 $0 $0 $0 $0640-0000-361.00-00 INTEREST INCOME Interest Income ($7,275)($7,384)($7,495)($7,607)($7,721)
640-0000-386.00-00 REFUNDS & REIMBURSEMENTS Other ($13,691)($13,691)($13,691)($13,691)($13,691)
640-0000-387.50-00 OTHER No Inflation ($15,150)($15,150)($15,150)($15,150)($15,150)
640-0000-387.50-10 ROLLOFF CONTAINER RENTAL No Inflation ($17,363)($17,363)($17,363)($17,363)($17,363)
Other Other
Blank Blank Not Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Blank Blank Not Used $0 $0 $0 $0 $0
Total Revenue Offsets ($273,897)($275,963)($278,051)($280,160)($282,291)
Total Revenue Requirement $4,607,067 $4,781,521 $4,908,813 $5,040,395 $5,176,428
Burns McDonnell Page 6 of 15 8/29/2019291
City of Bozeman, Montana
Solid Waste Cost of Service
Schedule 3
Revenue Requirement
Year 1 Year 2 Year 3 Year 4 Year 5
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Admin $987,864 $1,020,910 $1,050,739 $1,081,450 $1,113,069
Residential Refuse $1,396,184 $1,442,320 $1,477,905 $1,514,786 $1,553,015
Residential Recycling $441,827 $456,641 $469,363 $482,519 $496,122
Bulky $29,013 $47,119 $49,000 $50,948 $52,965
Yard Waste $179,309 $186,210 $191,392 $196,720 $202,198
Commercial $709,039 $729,430 $746,009 $763,153 $780,886
Commercial Roll-Off $389,657 $404,078 $415,445 $427,245 $439,498
Tote Delivery $117,813 $123,114 $126,394 $129,774 $133,258
Dumpster Delivery $86,192 $89,746 $92,178 $94,685 $97,268
Special Events $19,225 $20,182 $20,686 $21,204 $21,734
Compost $134,372 $139,417 $143,046 $146,788 $150,646
OCC Collection $116,572 $122,354 $126,655 $131,124 $135,769
Blank $0 $0 $0 $0 $0
Blank $0 $0 $0 $0 $0
Total Revenue Requirement $4,607,067 $4,781,521 $4,908,813 $5,040,395 $5,176,428
Cost Center
Burns McDonnell Page 7 of 15 8/29/2019292
City of Bozeman, Montana
Solid Waste Cost of Service
Schedule 4
Residential Cost of Service
Admin $506,673 $523,623 $538,922 $554,673 $570,891
Residential Refuse $1,152,775 $1,196,478 $1,229,605 $1,264,002 $1,299,723
Bulky $29,013 $47,119 $49,000 $50,948 $52,965
Yard Waste $179,309 $186,210 $191,392 $196,720 $202,198
Tote Delivery $98,179 $102,597 $105,330 $108,147 $111,050
Special Events $19,225 $20,182 $20,686 $21,204 $21,734
Compost $134,372 $139,417 $143,046 $146,788 $150,646
Cost of Admin $506,673 $523,623 $538,922 $554,673 $570,891
Cost of Collection $1,612,874 $1,692,002 $1,739,060 $1,787,809 $1,838,317
Cost of Disposal $243,408 $245,842 $248,301 $250,784 $253,292
Total Cost of Service $2,362,955 $2,461,467 $2,526,282 $2,593,266 $2,662,499
Total Household Count 11,288 11,401 11,515 11,630 11,746
Total/Household/Month $17.44 $17.99 $18.28 $18.58 $18.89
Monthly Cost of Service FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Admin $3.74 $3.83 $3.90 $3.97 $4.05
Residential Refuse $8.51 $8.75 $8.90 $9.06 $9.22
Bulky $0.21 $0.34 $0.35 $0.37 $0.38
Yard Waste $1.32 $1.36 $1.39 $1.41 $1.43
Tote Delivery $0.72 $0.75 $0.76 $0.77 $0.79
Special Events $0.14 $0.15 $0.15 $0.15 $0.15
Compost $0.99 $1.02 $1.04 $1.05 $1.07
Disposal $1.80 $1.80 $1.80 $1.80 $1.80
Total $17.44 $17.99 $18.28 $18.58 $18.89
Collections per Year 583,376 589,210 595,102 601,053 607,063
Cost per Collection $2.76 $2.87 $2.92 $2.97 $3.03
Annual Capacity Collected (Gallons)38,581,414 38,967,228 39,356,901 39,750,470 40,147,974
Cost of Disposal per Gallon $0.01 $0.01 $0.01 $0.01 $0.01
35 Gallon (Monthly Collection)$6.73 $6.92 $7.04 $7.17 $7.30
35 Gallon Weekly $16.68 $17.23 $17.52 $17.82 $18.13
45 Gallon Weekly $16.95 $17.50 $17.79 $18.09 $18.40
65 Gallon Weekly $17.50 $18.05 $18.34 $18.64 $18.95
100 Gallon Weekly $18.45 $19.01 $19.30 $19.60 $19.91
220 Gallon Weekly $21.74 $22.29 $22.58 $22.88 $23.19
300 Gallon Weekly $23.92 $24.47 $24.77 $25.07 $25.37
450 Gallon Weekly $28.02 $28.57 $28.87 $29.17 $29.47
FY 2024Cost Center FY 2020 FY 2021 FY 2022 FY 2023
FY 2024Monthly Cost of Service by Cart FY 2020 FY 2021 FY 2022 FY 2023
Burns McDonnell Page 8 of 15 8/29/2019293
City of Bozeman, Montana
Solid Waste Cost of Service
Schedule 5
Recycling Cost of Service
Admin $125,956 $130,170 $133,973 $137,889 $141,920
Residential Recycling $266,827 $276,391 $283,706 $291,292 $299,158
Tote Delivery $19,634 $20,518 $21,064 $21,627 $22,208
Cost of Admin $125,956 $130,170 $133,973 $137,889 $141,920
Cost of Collection $286,461 $296,908 $304,770 $312,919 $321,366
Cost of Processing $175,000 $180,250 $185,658 $191,227 $196,964
Total Cost of Service*$587,417 $607,328 $624,400 $642,035 $660,251
Cart Customer Count 4,515 4,560 4,605 4,651 4,698
Monthly Cost of Service FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Admin $2.32 $2.40 $2.47 $2.55 $2.62
Residential Refuse $0.00 $0.00 $0.00 $0.00 $0.00
Residential Recycling $4.93 $5.10 $5.24 $5.38 $5.52
Tote Delivery $0.36 $0.38 $0.39 $0.40 $0.41
Processing $3.23 $3.29 $3.36 $3.43 $3.49
Total $10.84 $11.18 $11.46 $11.75 $12.05
Collections per Year 110,467 111,572 112,687 113,814 114,952
Cost per Collection $2.59 $2.66 $2.70 $2.75 $2.80
Annual Capacity Collected (Gallons)11,349,375 11,462,869 11,577,497 11,693,272 11,810,205
Cost of Processing per Gallon $0.02 $0.02 $0.02 $0.02 $0.02
Monthly Cost of Service by Cart FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
65 Gallon Every Other Week $10.12 $10.38 $10.59 $10.81 $11.03
100 Gallon Every Other Week $11.28 $11.58 $11.81 $12.05 $12.29
300 Gallon Every Other Week $17.97 $18.39 $18.76 $19.13 $19.52
300 Gallon Weekly $33.61 $34.38 $35.04 $35.72 $36.41
300 Gallon 2x/Week $64.89 $66.35 $67.61 $68.89 $70.21
300 Gallon 3x/Week $96.17 $98.32 $100.17 $102.07 $104.01
FY 2024Cost Center FY 2020 FY 2021 FY 2022 FY 2023
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Solid Waste Cost of Service
Schedule 6
Temporary Dumpster Cost of Service
Admin $29,401 $30,385 $31,272 $32,186 $33,128
Commercial $25,833 $26,576 $27,180 $27,805 $28,451
Dumpster Delivery $73,254 $76,543 $78,767 $81,060 $83,425
Cost of Collection and Delivery $128,488 $133,504 $137,220 $141,052 $145,004
Cost of Disposal $8,629 $8,715 $8,802 $8,890 $8,979
Total Temporary Dumpster Cost $137,117 $142,220 $146,022 $149,942 $153,983
Annual Temporary Dumpster Requests FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
2 Cubic Yards 73 73 74 75 76
3 Cubic Yards 41 42 42 43 43
4 Cubic Yards 136 138 139 140 142
6 Cubic Yards 315 318 321 325 328
Temporary Dumpster Cost of Service FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Cost per Temporary Dumpster Request $227.17 $233.70 $237.83 $242.05 $246.37
Cost of Disposal $15.26 $15.26 $15.26 $15.26 $15.26
FY 2024Cost Center FY 2020 FY 2021 FY 2022 FY 2023
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Solid Waste Cost of Service
Schedule 7
Commercial Dumpster Cost of Service
Commercial Refuse
Admin $174,437 $180,272 $185,539 $190,962 $196,546
Commercial $527,321 $545,410 $559,810 $574,740 $590,220
Dumpster Delivery $3,006 $3,130 $3,215 $3,302 $3,393
Refuse Collection Total $704,764 $728,812 $748,564 $769,004 $790,158
OCC
Admin $45,039 $46,546 $47,906 $49,306 $50,748
Dumpster Delivery $1,303 $1,357 $1,394 $1,432 $1,471
OCC Collection $116,572 $122,354 $126,655 $131,124 $135,769
OCC Collection Total $162,914 $170,257 $175,954 $181,861 $187,987
Commercial Refuse FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Cost of Refuse Collection $704,764 $728,812 $748,564 $769,004 $790,158
Cost of Disposal $155,885 $157,444 $159,019 $160,609 $162,215
Total Cost of Commercial Refuse $860,649 $886,256 $907,583 $929,613 $952,373
Commercial Refuse Collections per Year 28,821 29,110 29,401 29,695 29,992
Cost per Collection $24.45 $25.04 $25.46 $25.90 $26.35
Cubic Yards Collected 133,962 135,302 136,655 138,022 139,402
Cost of Disposal per Cubic Yard $1.16 $1.16 $1.16 $1.16 $1.16
FY 2020
Container CY 1 2 3 4 5 6 Twice a Month
2 $116.05 $232.09 $348.14 $464.19 $580.24 $696.28 $53.56
3 $121.09 $242.18 $363.27 $484.36 $605.45 $726.54 $55.89
4 $126.13 $252.26 $378.40 $504.53 $630.66 $756.79 $58.21
6 $136.22 $272.43 $408.65 $544.87 $681.09 $817.30 $62.87
8 $146.30 $292.60 $438.91 $585.21 $731.51 $877.81 $67.52
FY 2021
Container CY 1 2 3 4 5 6 Twice a Month
2 $118.58 $237.16 $355.73 $474.31 $592.89 $711.47 $54.73
3 $123.62 $247.24 $370.86 $494.48 $618.10 $741.72 $57.06
4 $128.66 $257.33 $385.99 $514.65 $643.31 $771.98 $59.38
6 $138.75 $277.50 $416.24 $554.99 $693.74 $832.49 $64.04
8 $148.83 $297.67 $446.50 $595.33 $744.16 $893.00 $68.69
FY 2022
Container CY 1 2 3 4 5 6 Twice a Month
2 $120.42 $240.83 $361.25 $481.66 $602.08 $722.49 $55.58
3 $125.46 $250.92 $376.37 $501.83 $627.29 $752.75 $57.90
4 $130.50 $261.00 $391.50 $522.00 $652.50 $783.00 $60.23
6 $140.58 $281.17 $421.75 $562.34 $702.92 $843.51 $64.89
8 $150.67 $301.34 $452.01 $602.68 $753.35 $904.02 $69.54
FY 2023
Container CY 1 2 3 4 5 6 Twice a Month
2 $122.31 $244.61 $366.92 $489.22 $611.53 $733.83 $56.45
3 $127.35 $254.70 $382.04 $509.39 $636.74 $764.09 $58.78
4 $132.39 $264.78 $397.17 $529.56 $661.95 $794.34 $61.10
6 $142.48 $284.95 $427.43 $569.90 $712.38 $854.85 $65.76
8 $152.56 $305.12 $457.68 $610.24 $762.80 $915.36 $70.41
FY 2024
Container CY 1 2 3 4 5 6 Twice a Month
2 $124.25 $248.50 $372.75 $497.00 $621.25 $745.50 $57.35
3 $129.29 $258.59 $387.88 $517.17 $646.47 $775.76 $59.67
4 $134.34 $268.67 $403.01 $537.34 $671.68 $806.01 $62.00
6 $144.42 $288.84 $433.26 $577.68 $722.10 $866.52 $66.66
8 $154.51 $309.01 $463.52 $618.02 $772.53 $927.03 $71.31
FY 2024Cost Center FY 2020 FY 2021 FY 2022 FY 2023
Monthly Refuse Cost of Service Based on Collections per Week
Monthly Cost of Service Based on Collections per Week
Monthly Cost of Service Based on Collections per Week
Monthly Cost of Service Based on Collections per Week
Monthly Cost of Service Based on Collections per Week
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Solid Waste Cost of Service
Schedule 7
Commercial Dumpster Cost of Service
OCC FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Cost of OCC Collection $162,914 $170,257 $175,954 $181,861 $187,987
Cost of Processing $0 $0 $0 $0 $0
Total Cost of OCC $162,914 $170,257 $175,954 $181,861 $187,987
Collections per Year 12,496 12,621 12,747 12,874 13,003
Cost per Collection $13.04 $13.49 $13.80 $14.13 $14.46
Dumpster Size 1 2 3 4 5 6 Twice a Month
1 Cubic Yards $56.50 $112.99 $169.49 $225.99 $282.48 $338.98 $26.08
2 Cubic Yards $56.50 $112.99 $169.49 $225.99 $282.48 $338.98 $26.083 Cubic Yards $56.50 $112.99 $169.49 $225.99 $282.48 $338.98 $26.08
4 Cubic Yards $56.50 $112.99 $169.49 $225.99 $282.48 $338.98 $26.08
5 Cubic Yards $56.50 $112.99 $169.49 $225.99 $282.48 $338.98 $26.088 Cubic Yards $56.50 $112.99 $169.49 $225.99 $282.48 $338.98 $26.08
Dumpster Size 1 2 3 4 5 6 Twice a Month
1 Cubic Yards $58.46 $116.92 $175.37 $233.83 $292.29 $350.75 $26.98
2 Cubic Yards $58.46 $116.92 $175.37 $233.83 $292.29 $350.75 $26.983 Cubic Yards $58.46 $116.92 $175.37 $233.83 $292.29 $350.75 $26.98
4 Cubic Yards $58.46 $116.92 $175.37 $233.83 $292.29 $350.75 $26.98
5 Cubic Yards $58.46 $116.92 $175.37 $233.83 $292.29 $350.75 $26.988 Cubic Yards $58.46 $116.92 $175.37 $233.83 $292.29 $350.75 $26.98
Dumpster Size 1 2 3 4 5 6 Twice a Month
1 Cubic Yards $59.82 $119.63 $179.45 $239.26 $299.08 $358.90 $27.61
2 Cubic Yards $59.82 $119.63 $179.45 $239.26 $299.08 $358.90 $27.613 Cubic Yards $59.82 $119.63 $179.45 $239.26 $299.08 $358.90 $27.61
4 Cubic Yards $59.82 $119.63 $179.45 $239.26 $299.08 $358.90 $27.61
5 Cubic Yards $59.82 $119.63 $179.45 $239.26 $299.08 $358.90 $27.61
8 Cubic Yards $59.82 $119.63 $179.45 $239.26 $299.08 $358.90 $27.61
Dumpster Size 1 2 3 4 5 6 Twice a Month1 Cubic Yards $61.21 $122.42 $183.64 $244.85 $306.06 $367.27 $28.25
2 Cubic Yards $61.21 $122.42 $183.64 $244.85 $306.06 $367.27 $28.25
3 Cubic Yards $61.21 $122.42 $183.64 $244.85 $306.06 $367.27 $28.254 Cubic Yards $61.21 $122.42 $183.64 $244.85 $306.06 $367.27 $28.25
5 Cubic Yards $61.21 $122.42 $183.64 $244.85 $306.06 $367.27 $28.25
8 Cubic Yards $61.21 $122.42 $183.64 $244.85 $306.06 $367.27 $28.25
Dumpster Size 1 2 3 4 5 6 Twice a Month1 Cubic Yards $62.65 $125.29 $187.94 $250.59 $313.24 $375.88 $28.91
2 Cubic Yards $62.65 $125.29 $187.94 $250.59 $313.24 $375.88 $28.91
3 Cubic Yards $62.65 $125.29 $187.94 $250.59 $313.24 $375.88 $28.914 Cubic Yards $62.65 $125.29 $187.94 $250.59 $313.24 $375.88 $28.91
5 Cubic Yards $62.65 $125.29 $187.94 $250.59 $313.24 $375.88 $28.91
8 Cubic Yards $62.65 $125.29 $187.94 $250.59 $313.24 $375.88 $28.91
Monthly Cost of Service Based on OCC Collections per Week
Monthly Cost of Service Based on OCC Collections per Week
Monthly Cost of Service Based on OCC Collections per Week
Monthly Cost of Service Based on OCC Collections per Week
Monthly Cost of Service Based on OCC Collections per Week
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Solid Waste Cost of Service
Schedule 8
Commercial Roll-off Cost of Service
Admin $106,357 $109,915 $113,127 $116,433 $119,837
Commercial Roll-Off $389,657 $404,078 $415,445 $427,245 $439,498
Cost of Collection $496,014 $513,993 $528,571 $543,678 $559,335
Cost of Disposal*$0 $0 $0 $0 $0
Total Cost of Commercial Roll-Off $496,014 $513,993 $528,571 $543,678 $559,335
Roll-off Pulls
Paid General Roll off Pulls 751 759 767 774 782
Water Reclamation Facility Pulls 624 624 624 624 624
Yard Waste Pulls 39 40 40 41 41
Cost of Service per Pull FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
General Roll-Off Pull $350.58 $361.27 $369.44 $377.87 $386.56
Disposal*$0.00 $0.00 $0.00 $0.00 $0.00
Cost of Service per Pull FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Water Reclamation Facility Pull $350.58 $361.27 $369.44 $377.87 $386.56
Disposal**$0.00 $0.00 $0.00 $0.00 $0.00
Cost of Service per Pull FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Yard Waste Pull $350.58 $361.27 $369.44 $377.87 $386.56
Compost $0.00 $0.00 $0.00 $0.00 $0.00
*Cost of disposal is passed through to the customer, includes free and discounted pulls to City departments, non-profit organizations, and the county
**Water and Sewer is billed directly for disposal of Water Reclamation Facility pulls
FY 2024Cost Center FY 2020 FY 2021 FY 2022 FY 2023
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City of Bozeman, Montana
Solid Waste Cost of Service
Schedule 9
Net Revenue - Current Rates
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Residential
Revenue Requirement ($2,362,955)($2,461,467)($2,526,282)($2,593,266)($2,662,499)
Revenue $2,599,019 $2,625,009 $2,651,260 $2,677,772 $2,704,550
Net Revenue $236,064 $163,542 $124,977 $84,506 $42,050
Recycling
Revenue Requirement ($587,417)($607,328)($624,400)($642,035)($660,251)
Revenue $547,657 $553,133 $558,665 $564,251 $569,894
Net Revenue ($39,760)($54,194)($65,736)($77,783)($90,357)
Temporary Dumpster
Revenue Requirement ($137,117)($142,220)($146,022)($149,942)($153,983)
Revenue $66,842 $67,510 $68,185 $68,867 $69,556
Net Revenue ($70,275)($74,709)($77,837)($81,075)($84,427)
Commercial Dumpster
Refuse
Revenue Requirement ($860,649)($886,256)($907,583)($929,613)($952,373)
Revenue $732,910 $740,239 $747,642 $755,118 $762,669
OCC
Revenue Requirement ($162,914)($170,257)($175,954)($181,861)($187,987)
Revenue $0 $0 $0 $0 $0
Net Revenue ($290,653)($316,274)($335,895)($356,356)($377,690)
Commercial Roll-off
Revenue Requirement ($496,014)($513,993)($528,571)($543,678)($559,335)
Revenue $299,258 $301,189 $303,141 $305,111 $307,101
Net Revenue ($196,757)($212,804)($225,431)($238,567)($252,234)
Total
Revenue Requirement ($4,607,067)($4,781,521)($4,908,813)($5,040,395)($5,176,428)
Revenue $4,245,686 $4,287,082 $4,328,892 $4,371,120 $4,413,771
Net Revenue ($361,381)($494,440)($579,921)($669,275)($762,658)
Cumulative Net Revenue ($361,381)($855,821)($1,435,742)($2,105,017)($2,867,675)
Service
Projected Annual Revenue
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City of Bozeman, Montana
Solid Waste Cost of Service
Schedule 10
Net Revenue - Recommended Rates
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
Residential
Revenue Requirement ($2,362,955)($2,461,467)($2,526,282)($2,593,266)($2,662,499)
Revenue $2,653,367 $2,736,439 $2,822,620 $2,912,033 $3,004,806
Net Revenue $290,412 $274,971 $296,338 $318,767 $342,306
Recycling
Revenue Requirement ($587,417)($607,328)($624,400)($642,035)($660,251)
Revenue $547,657 $553,133 $558,665 $564,251 $569,894
Net Revenue ($39,760)($54,194)($65,736)($77,783)($90,357)
Temporary Dumpster
Revenue Requirement ($137,117)($142,220)($146,022)($149,942)($153,983)
Revenue $124,988 $126,237 $127,500 $128,775 $130,062
Net Revenue ($12,130)($15,982)($18,522)($21,167)($23,921)
Commercial Dumpster
Refuse
Revenue Requirement ($860,649)($886,256)($907,583)($929,613)($952,373)
Revenue $806,201 $854,977 $906,703 $961,558 $976,918
OCC
Revenue Requirement ($162,914)($170,257)($175,954)($181,861)($187,987)
Revenue $81,457 $88,741 $100,544 $111,705 $124,104
Net Revenue ($135,905)($112,796)($76,290)($38,212)($39,338)
Commercial Roll-off
Revenue Requirement ($496,014)($513,993)($528,571)($543,678)($559,335)
Revenue $378,198 $398,779 $420,528 $443,513 $467,805
Net Revenue ($117,816)($115,215)($108,044)($100,166)($91,531)
Total
Revenue Requirement ($4,607,067)($4,781,521)($4,908,813)($5,040,395)($5,176,428)
Revenue $4,591,868 $4,758,305 $4,936,559 $5,121,834 $5,273,589
Net Revenue ($15,199)($23,216)$27,746 $81,439 $97,161
Cumulative Net Revenue ($15,199)($38,415)($10,670)$70,769 $167,930
Service
Projected Annual Revenue
Burns McDonnell Page 15 of 15 8/29/2019300
Burns & McDonnell
8911 N. Capital of Texas Hwy, Suite 3100
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