HomeMy WebLinkAboutDiscussion of Curbside Recycling Program Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Debbie Arkell, Director of Public Services
Steve Johnson, Solid Waste Superintendent
Chris Kukulski, City Manager
SUBJECT: Curbside Recycling Business Plan
MEETING DATE: January 14, 2008
RECOMMENDATION: Hear Solid Waste Superintendent Steve Johnson’s presentation on
curbside recycling proposal. Hear public comment. Consider business plan. Direct staff to
proceed / not to proceed with curbside recycling.
BACKGROUND: Due to the interest in a curbside recycling program, Solid Waste
Superintendent Steve Johnson included funding for the start up of a curbside recycling program
in the FY08 budget. The Commission approved that funding with the caveat that a business plan
be developed.
Considerable research has since occurred and the attached business plan prepared. Pro Forma
Cash Flow Scenarios have been prepared by the Finance Director to provide the Commission
with information regarding whether such a program can be self-sustaining. These scenarios
show that the success of the program depends on the number of customers using the service, as
well as the amount of commodity recycled and the commodity market. It is estimated $230,000
in Solid waste reserve funds will be needed to start the program. If under 1,000 customers sign
up for curbside service, or if the commodity market is not strong, the revenue will not cover
expenditures and solid waste reserve funds will be needed to operate the program.
There are currently three companies that offer curbside recycling pickup services in the City for
a fee (ranging from $15 to $20 per month), and the Gallatin Solid Waste Management District
plans to continue to operate the five Binnie drop-off sites where recycling commodities can be
deposited at no cost to the customer. These services would be in direct competition for the
projected program.
Commission Memorandum - Curbside Recycling Business Plan
January 14, 2008 - Page 2
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PROGRAM HIGHLIGHTS:
· Commodities collected will be: plastics, tin cans, aluminum, newsprint, magazines and
cardboard.
· Approximately $230,000 in solid waste reserve funds will be used to begin the program.
It is unlikely all (if any) of these funds would be repaid to the reserve.
· The FY08 budget estimated the program could operate on a $10 per month subscription
fee. It is worth mentioning that in Fiscal Year 2007, we paid over $50,000 from the
Solid Waste Collection Division to the Headwaters Recycling Cooperative Program; in
Fiscal Year 2008, we budgeted to spend over $16,000, approximately 4 months worth
until the District took over. Upon joining the County Solid Waste Management District,
the District will be paying this fee. A $10 per month subscription fee puts the program
more at risk from “less than expected” growth in customer accounts.
· A $12 per month subscription fee would better accommodate slow-growth in customer
accounts and could possibly recover a small portion of start-up costs beginning in Year 6.
· City Solid Waste customers currently pay $10.96 per month for a 35 gallon tote and
$14.10 per month for a 65 gallon tote
· There is no guaranteed number of customers.
· There is no guaranteed rate of commodity sales.
· It is estimated we will receive approximately $30 per customer per year in commodity
sales ($30,000 per year total) and $30,000 per year in commercial cardboard sales.
· A collection truck costs approximately $200,000. It will take approximately nine (9)
months to order and get delivery of a collection truck.
· An additional 1.0 FTE will operate the Recycling Truck to begin the program. Once 800
accounts are signed up, and addition 0.5 FTE will be hired.
· Up to 1,600 accounts can be served by one collection truck. A second truck and
additional .5 FTE (for a total of 2 FTE) will be needed once that number is reached.
· The recycling operation will utilize the Solid Waste facility and support personnel at no
expense to the recycling operation fund. This includes, but is not necessarily limited to,
office support and expenses (electricity, etc.), commercial cardboard collection, finance
office support (AR/AP), office and computer supplies and equipment, and supervision.
FISCAL EFFECTS: As described above and in the attached business plan and pro-forma
scenarios.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
_________________________________ ____________________________
Debbie Arkell, Director of Public Services Chris A. Kukulski, City Manager
Attachments: Recycling Curbside Collection Business Plan
Report compiled on December 18, 2007
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CITY OF BOZEMAN
SOLID WASTE DIVISION
RECYCLING CURBSIDE COLLECTION PLAN
January 9, 2008
I. EXECUTIVE SUMMARY
The City of Bozeman began participating in recycling in 1997 as a member of the
Headwaters Recycling Cooperative. The City’s solid waste division expanded recycling
opportunities as the interest in recycling expanded by implementing city-operated
cardboard and compost programs.
The success of the recycling program in the Bozeman area resulted in collection
problems for Headwaters Cooperative as there is so much commodity deposited in the
Bozeman drop-off sites that they cannot adequately service the sites from their Helena
headquarters. As a result, many site locations were lost, as the private property owners
who allowed the collection bins to be placed on their property no longer wanted to deal
with the mess that resulted from over-flowing bins. With the expansion of the Gallatin
Solid Waste Management District to include the City of Bozeman, the District will be
assuming the service of the five remaining drop-off sites in the City. They are also
considering adding drop-off sites in other areas within the county.
The 2007 City of Bozeman Citizen Survey asked respondents to rate the quality of utility
services. For recycling, the City of Bozeman ranked in the 8th percentile of comparable
cities, putting it well below the norm in comparison to 74 similar jurisdictions (68 out of
74). The Survey showed a strong interest in recycling, with 38% of the respondents
stating they recycled more than 2 times per month, and 18% recycled at least one time
per month. Overall, 84% of the respondents reported engaging in recycling in the last 12
months. However, the Quality of our recycling service received a rating of 44 out of 100,
with 12% reporting excellent service; 35% reporting good service; 25% reporting fair
service, and 28% reporting poor service.
The 2006 Annual Solid Waste Division random customer phone survey showed 83% of
the respondents use the Binnie recycling sites. Seventy-six percent of the customers
surveyed indicated they would support a cost-effective curbside recycling collection
program.
Many citizens have requested curbside recycling services over the past several years.
The FY08 Commission approved budget for the Solid Waste Recycling Division includes
$354,837 for one FTE, operating costs and a curbside recycling collection vehicle,
subject to the review and approval of an operational business plan. Further review of the
program revises the operational and revenue projections. As it will take approximately 9
months to receive the collection vehicle once it is ordered, full operation could not begin
until FY09.
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Commodities that would be accepted are plastics, tin cans, aluminum, newsprint,
magazines and cardboard, and would be collected curbside one time per week. Revenue
from commodity sales will vary with the market and there is no guarantee of any amount
of income. Cardboard revenue was included in the FY08 revenue projection, but the
Binnie site cardboard will be now be processed by the SW District, and not by City
recycling. The City’s Solid Waste Collection Division will continue to collect and
market cardboard from their commercial customers who want this service, and revenues
received could be credited to the Recycling Division. Revenue from this operation for
the past 12 months netted $36,820 in commodity sales, which is 50% of the market rate.
The processor retains the remaining 50% and does not charge a processing fee.
The recycling operation will utilize the Solid Waste facility and support personnel at no
expense to the recycling operation in the beginning of the program. This includes, but is
not necessarily limited to, office support and expenses (electricity, etc.), commercial
cardboard collection, finance office support (AR/AP), office and computer equipment,
and supervision.
Section VIII, Revenue Projections, provides Pro Forma Cash Flow Scenarios for four
scenarios. Each scenario includes using $230,000 from solid waste cash reserves for
program startup. Based on current markets and an estimate of commodity collected per
household, approximately $30 per year per customer will be generated from commodity
sales. In addition to these sales, the revenue from commercial cardboard collection could
be used to supplement this curbside program. The two constant revenue assumptions in
the Scenarios are $30 per year per account in curbside commodity revenue and $30,000
per year in commercial cardboard revenue.
As shown in the Scenarios, the fund balance or deficit is dependent on the number of
accounts and the subscription fee. Subscription services of $10, $12, and $15 per month
for weekly collection were considered. While there is no guaranteed number of
participants, the scenarios were calculated using 800 and 1,000 subscribers per year, with
annual increases in the number of customers. A subscription service fee of $15 was
analyzed. It accumulated cash beyond the operating costs and replacement of vehicles.
Because this subscription service fee would cost more than regular garbage service for
most residential customers, we did not present the details in this report.
The Scenarios show that a $10 per month subscription fee puts the program more at risk
from “less than expected” growth in customer accounts (Scenario D), and would not
recover start-up costs in the foreseeable future. The startup costs would be treated as
sunk costs, and the goal would be to sustain the program after startup.
A subscription fee of $12 per month would better accommodate slow-growth in customer
accounts (Scenario B), and could possibly recover a small amount ofstart-up costs
beginning in Year 6. It is important to stress that the customer and commodity sales
numbers are not guaranteed.
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While recycling may not “pay for itself”, it generates costs savings in other areas. When
recyclables are not thrown into the solid waste stream, collection trucks have more room
for additional accounts, and the landfill tipping fees are less. Recycled commodities are
re-used, saving resources, and valuable lined landfill cells are used for materials that
cannot be recycled. It is important to recognize that if this curbside recycling operation is
not self-sustaining, revenue from other sources must be infused into the program in order
for it to continue. These revenue sources could include the solid waste reserve fund,
increased solid waste collection fees, increased curbside fees, or general funds.
II. INVESTMENT CONSIDERATIONS
Solid waste division cash reserves in the amount of $230,000 will be used to cover start
up costs of the program. These funds could be paid back depending on program revenue.
A. Collection Vehicle. It is projected that one truck can serve 1,600 accounts
over a one week period. Once 1,600 accounts are achieved, another truck would have to
be purchased in order to serve the additional customers. At that point, the .5 FTE
position would have to be increased to a full time position to operate the second truck.
This projection is based on current production in the Spokane, Washington curbside
recycling division.
1) Purchase a truck for approximately $200,000 (preferred)
2) Lease-to-purchase a truck for $44,690 annually for 5 years, with
$1.00 buyout at the end of the lease ($223,451 total). If the
program ended before the 5 year lease expires, the Division would
continue to be responsible for the lease payments.
B. Collection Tubs. Purchase 1,200 tubs for approximately $8,000
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C. Advertising & Promotion. Expend approximately $4,000 for advertising
and promotion of the program
D. Cash reserves. Approximately $18,000.
III. TARGET MARKET
The target market will be residences and businesses within Bozeman City limits. There
are currently approximately 9,800 properties in the city that receive city water and/or
sewer services. While there is the potential for 9,800 customers to participate in the
curbside recycling program, it is unlikely this will occur because the Solid Waste District
proposes to continue operating the free recycling “Binnie” drop-off sites within the City,
there are three existing companies that offer curbside recycling, and not every household
or business is interested in recycling.
IV. THE COMPETITION
There are currently three companies that offer curbside recycling pickup services. As
private companies, they are not required to divulge their business details such as how
many customers they have. One company charges $15.00 per month and two companies
charge $20.00 per month. The free “Binnie” sites will also create competition, as people
interested in recycling can continue to take their commodities to the drop-off sites for no
monthly fee.
V. MARKETING OUTLINE AND SALES STRATEGY
A minimum of three months prior to the expected collection truck delivery date,
advertising for the service and signing up customers will begin. This will provide time
for the routes and accounts to be established by the Solid Waste residential collection
foreman and office personnel. Customers will not be billed until the service begins. The
convenience of the service will be stressed – the customer will set out their recycling tubs
on the same day their City solid waste collection occurs – as will the benefits of recycling
to the environment. Periodic advertising will continue throughout the year. Advertising
options include:
A. Bozeman Daily Chronicle – Quarter page advertisement at $630/day for
Monday through Saturday editions; $660/day for Sunday editions. Half page
advertisement at $1,205/day for Monday through Saturday editions; $1254/day for
Sunday editions.
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B. Flyers inserted in City utility statements - $900/10,000 copies.
C. Presentations at Civic Organizations – Staff time plus copy costs for
informational brochures
D. Informational booths at civic events (i.e. fairs) – Staff time plus copy costs
for informational brochures
E. Public school educational programs – Staff time plus copy costs for
informational brochures
F. Television ads
· KXLF, approximately $550/84 spots
· KTVM, approximately $1,000/30 spots
· Max Media, approximately $1,200 production & broadcast
charge
G. Radio ads
· KBOZ Stations, $490 / 140 30-second commercials (70
commercials provided free via good Neighbor contribution)
run over a 5-day period
· Clear Channel Stations, prices vary based on time of day and
station selected, average $20 per 30-second ad
H. Bresnan Cable Channel 20 slides – no cost
I. Offering the service to all new customers when they call to sign up for
solid waste collection service – no cost
VI. OPERATIONS
Customers will place their commodities in a recycling tub that is provided by the
Division, and place the tub at the curbside on their solid waste collection day. Customers
whose solid waste is picked up in alleys will place their recycling tubs at the curbside, not
in the alley with their solid waste. Pickup will occur one time each week.
All goods will be placed in the same tub in a select order. The collection truck is
specifically designed for recycling collection, and the cab is approximately 11-inches off
the ground, making exiting the truck safe and convenient. The box is divided into
compartments. The truck driver exits the truck, picks up the tub and places it on a shelf
on the box, and places the customer-separated commodities into each appropriate divider.
When the truck is full, the truck is driven to the processor, who will be chosen through
the required procurement RFP process. The separated product is unloaded at the
processor, who markets the product. This processor will accept the separated
commodities and will market the commodities. There are several options for selecting a
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company but our proposal is that processors responding to the RFP will propose a
monthly processing fee, with 100% of the commodity revenue returned to the City, for a
three year contract. Another option would be that the processor markets the commodity
and provides the city with a percentage of the commodity revenue.
For the FY08 budget, Staff projected 1 FTE would be needed to operate a curbside
collection service, until the program exceeded our initial estimate of 1000 accounts. In
the beginning, this operation will have to rely on the collection division to provide back-
up and assistance, which may not always be available due to the work load of that
division. When service is provided to over 1,600 customers, a second truck will be
needed and the .5 FTE will need to be increased to full time.
VII. MARKET
There is one processor currently operating in Gallatin County. Their current (December
1, 2007) pricing for bailing and marketing products delivered to their site is:
· Cardboard: $55 per ton
· Newspaper & magazines: $42 per ton mixed, collected together
· #1 & #2 Plastic bottles: $120 per ton mixed, collected together
· Aluminum: $0.25 per pound or $500 per ton, collected mixed with steel cans
· Steel (tin) cans: $50 per ton, collected mixed with aluminum
The current (December 1, 2007) net (after freight) market rate for commodity sales
follows. This rate fluctuates daily:
· Cardboard: $145 per ton
· Newspaper & magazines: $110 per ton
· #1 & #2 Plastic bottles: $220 per ton
· Aluminum: $0.80/pound
· Steel (tin) cans: $70 per ton
It is anticipated that each curbside customer will generate approximately $25.00 per year
in commodity sales revenue.
VIII. FINANCIAL DATA AND REVENUE PROJECTIONS
The monthly fee must be established by a Commission Resolution. Various options
could be considered, such as, but not limited to: 1) should the proposed fee be $10 per
month; $12 per month; or should the fee be higher or lower; 2) should non-City
Collection customers be charged a higher fee; 3) should non-City Collection customers
be offered the service. It is anticipated that if the fee is too high, some potential
customers may elect to continue to use the Binnie sites rather than utilize this service.
City solid waste residential collection customers currently pay $10.96 per month for a 35
gallon tote and $14.10 per month for a 65 gallon tote.
The following Pro Forma Cash Flow Scenarios have been established and are attached:
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· Scenario A, $12/month fee, beginning with 1,000 customers per year
· Scenario B, $12/month fee, beginning with 800 customers per year
· Scenario C, $10/month fee, beginning with 1000 customers per year
· Scenario D, $10/month fee, beginning with 800 customers per year
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Pro‐Forma Financial StatementsCity of BozemanCurbside‐Recycling PlanEscalation FactorsYear 2 Year 3 Year 4 Year 5 Year 6RevenuesMonthly Service Fee (See Individual Scenario) 0.00% 0.00% 0.00% 0.00% 0.00%ExpensesUtilities 3.00% 3.00% 3.00% 3.00% 3.00%Labor 3.85% 3.85% 3.85% 4.00% 4.00%Benefit ‐ Medical 10.00% 10.00% 10.00% 10.00% 10.00%Benefits ‐ Other 2.00% 2.00% 2.00% 2.00% 2.00%Materials & Supplies 3.00% 3.00% 3.00% 3.00% 3.00%Chemicals 10.00% 10.00% 10.00% 10.00% 10.00%Electricity 8.00% 8.00% 8.00% 8.00% 8.00%Natural Gas 5.00% 5.00% 5.00% 5.00% 5.00%Gas & Oil 5.00% 5.00% 5.00% 5.00% 5.00%Equipment 3.00% 3.00% 3.00% 3.00% 3.00%Miscellaneous 2.00% 2.00% 2.00% 2.00% 2.00%109
Scenario ACurbside Recycling ProgramFY09 TOTAL Startup1Qtr2nd Qtr 3rd Qtr 4th Qtr Year 1 Year 2 Year 3 Year 4 Year 5 Year 6Beginning Balance 230,000 18,000 13,625 16,999 28,024 18,000 68,580 162,739 268,710 388,295 279,818 Cash Flow From Operations** Number of Accounts 400 600 8001000100012001320145016001760 Monthly Service Fees ($12/month) 14,400 21,600 28,800 36,000 100,800 172,800 190,080 208,800 230,400 253,440 Commodity Sales ($30/acct/year) 3,000 4,500 6,000 7,500 21,000 36,000 39,600 43,500 48,000 52,800 Commodity Sales Commercial Cardboard 30,000 30,000 30,000 30,000 30,000 30,000 Total Cash Receipts17,400 26,100 34,800 43,500 151,800 238,800 259,680 282,300 308,400 336,240 Total Cash Available230,000 35,400 39,725 51,799 71,524 169,800 307,380 422,419 551,010 696,695 616,058 Cash Paid Out Office Supplies 375 375 375 375 1,500 1,545 1,591 1,639 1,688 1,739 Computer Supplies 125 125 125 125 500 515 530 546 563 580 Clothing & Uniforms 75 75 75 75 300 309 318 328 338 348 Advertising & Promotion 4,000 1,500 1,500 1,500 1,500 6,000 10,000 10,300 10,609 10,927 11,255 Fuel 1,500 2,250 3,000 3,750 10,500 18,900 21,830 25,178 29,172 33,694 Insurance‐ Repairs & Maintenance 1,000 1,200 1,500 2,000 5,700 8,308 8,628 8,960 9,318 9,691 Payroll‐ Wages ‐ 1 FTE, 1.5 FTE, 2 in Year 6 11,346 11,346 11,346 17,019 51,058 70,698 73,420 76,247 79,297 110,116 Medical Benefits ‐ 1 FTE, 1.5 FTE, 2 in Year 6 2,214 2,214 2,214 3,321 9,964 14,614 16,076 17,683 19,452 28,530 Other Benefits ‐ 1 FTE, 1.5 FTE, 2 in Year 6 2,277 2,277 2,277 3,416 10,247 14,187 14,471 14,760 15,056 20,475 Small Equipment/Misc Vehicle Supplies 113 113 113 113 450 464 477 492 506 522 General Miscellaneous (Unanticipated) 1,250 1,250 1,250 1,250 5,000 5,100 5,202 5,306 5,412 5,520 Sub Total 4,000 21,775 22,725 23,775 32,944 101,220 144,641 152,844 161,749 171,729 222,470 Capital Purchases Collection Truck 200,000 244,000 253,760 Recycling Tubs 8,000 ‐ ‐ 865 966 1,148 1,120 Total Cash Paid Out 212,000 21,775 22,725 23,775 32,944 101,220 144,641 153,709 162,715 416,877 477,350 Ending Cash Balance 18,000 13,625 16,999 28,024 38,580 68,580 162,739 268,710 388,295 279,818 138,708 110
Scenario BCurbside Recycling ProgramFY09 TOTAL Startup1Qtr2nd Qtr 3rd Qtr 4th Qtr Year 1 Year 2 Year 3 Year 4 Year 5 Year 6Beginning Balance 230,000 18,000 3,687 (4,863) (5,763) 18,000 26,843 73,227 129,366 194,776 24,812 Cash Flow From Operations** Number of Accounts 150 300 5008008009001000110012001300 Monthly Service Fees ($12/month) 5,400 10,800 18,000 28,800 63,000 129,600 144,000 158,400 172,800 187,200 Commodity Sales ($30/acct/year) 1,125 2,250 3,750 6,000 13,125 27,000 30,000 33,000 36,000 39,000 Commodity Sales Commercial Cardboard 30,000 30,000 30,000 30,000 30,000 30,000 Total Cash Receipts6,525 13,050 21,750 34,800 106,125 186,600 204,000 221,400 238,800 256,200 Total Cash Available230,000 24,525 16,737 16,887 29,037 124,125 213,443 277,227 350,766 433,576 281,012 Cash Paid Out Office Supplies 375 375 375 375 1,500 1,545 1,591 1,639 1,688 1,739 Computer Supplies 125 125 125 125 500 515 530 546 563 580 Clothing & Uniforms 75 75 75 75 300 309 318 328 338 348 Advertising & Promotion 4,000 1,500 1,500 1,500 1,500 6,000 10,300 10,609 10,927 11,255 11,593 Fuel 563 1,125 1,875 3,000 6,563 14,175 16,538 19,101 21,879 24,887 Insurance‐ Repairs & Maintenance 1,000 1,200 1,500 2,000 5,700 8,308 8,628 8,960 9,318 9,691 Payroll‐ Wages ‐ 1 FTE, 1.5 FTE 11,346 11,346 11,346 17,019 51,058 70,698 73,420 76,247 79,297 82,469 Medical Benefits ‐ 1 FTE, 1.5 FTE 2,214 2,214 2,214 3,321 9,964 14,614 16,076 17,683 19,452 21,397 Other Benefits ‐ 1 FTE, 1.5 FTE 2,277 2,277 2,277 3,416 10,247 14,187 14,471 14,760 15,056 15,357 Small Equipment/Misc Vehicle Supplies 113 113 113 113 450 464 477 492 506 522 General Miscellaneous (Unanticipated) 1,250 1,250 1,250 1,250 5,000 5,100 5,202 5,306 5,412 5,520 Sub Total 4,000 20,838 21,600 22,650 32,194 97,282 140,216 147,861 155,990 164,764 174,102 Capital Purchases Collection Truck 200,000 244,000 ‐ Recycling Tubs 8,000 ‐ ‐ ‐ ‐ ‐ 700 Total Cash Paid Out 212,000 20,838 21,600 22,650 32,194 97,282 140,216 147,861 155,990 408,764 174,802 Ending Cash Balance 18,000 3,687 (4,863) (5,763) (3,157) 26,843 73,227 129,366 194,776 24,812 106,209 111
Scenario CCurbside Recycling ProgramFY09 TOTAL Startup1Qtr2nd Qtr 3rd Qtr 4th Qtr Year 1 Year 2 Year 3 Year 4 Year 5 Year 6Beginning Balance 230,000 18,000 11,225 10,999 17,224 18,000 51,780 116,839 190,821 275,288 128,083 Cash Flow From Operations** Number of Accounts 400 600 8001000100012001320145016001760 Monthly Service Fees ($10/month) 12,000 18,000 24,000 30,000 84,000 144,000 158,400 174,000 192,000 211,200 Commodity Sales ($30/acct/year) 3,000 4,500 6,000 7,500 21,000 36,000 39,600 43,500 48,000 52,800 Commodity Sales Commercial Cardboard 30,000 30,000 30,000 30,000 30,000 30,000 Total Cash Receipts15,000 22,500 30,000 37,500 135,000 210,000 228,000 247,500 270,000 294,000 Total Cash Available230,000 33,000 33,725 40,999 54,724 153,000 261,780 344,839 438,321 545,288 422,083 Cash Paid Out Office Supplies 375 375 375 375 1,500 1,545 1,591 1,639 1,688 1,739 Computer Supplies 125 125 125 125 500 515 530 546 563 580 Clothing & Uniforms 75 75 75 75 300 309 318 328 338 348 Advertising & Promotion 4,000 1,500 1,500 1,500 1,500 6,000 10,300 10,609 10,927 11,255 11,593 Fuel 1,500 2,250 3,000 3,750 10,500 18,900 21,830 25,178 29,172 33,694 Insurance‐ Repairs & Maintenance 1,000 1,200 1,500 2,000 5,700 8,308 8,628 8,960 9,318 9,691 Payroll‐ Wages ‐ 1 FTE, 1.5 FTE, 2 in Year 6 11,346 11,346 11,346 17,019 51,058 70,698 73,420 76,247 79,297 110,116 Medical Benefits ‐ 1 FTE, 1.5 FTE, 2 in Year 6 2,214 2,214 2,214 3,321 9,964 14,614 16,076 17,683 19,452 28,530 Other Benefits ‐ 1 FTE, 1.5 FTE, 2 in Year 6 2,277 2,277 2,277 3,416 10,247 14,187 14,471 14,760 15,056 20,475 Small Equipment/Misc Vehicle Supplies 113 113 113 113 450 464 477 492 506 522 General Miscellaneous (Unanticipated) 1,250 1,250 1,250 1,250 5,000 5,100 5,202 5,306 5,412 5,520 Sub Total 4,000 21,775 22,725 23,775 32,944 101,220 144,941 153,153 162,068 172,057 222,807 Capital Purchases Collection Truck 200,000 244,000 253,760 Recycling Tubs 8,000 ‐ ‐ 865 966 1,148 1,120 Total Cash Paid Out 212,000 21,775 22,725 23,775 32,944 101,220 144,941 154,018 163,033 417,205 477,688 Ending Cash Balance 18,000 11,225 10,999 17,224 21,780 51,780 116,839 190,821 275,288 128,083 (55,605) 112
Scenario DCurbside Recycling ProgramFY09 TOTAL Startup1Qtr2nd Qtr 3rd Qtr 4th Qtr Year 1 Year 2 Year 3 Year 4 Year 5 Year 6Beginning Balance 230,000 18,000 2,787 (7,563) (11,463) 18,000 16,343 41,127 73,266 112,276 (86,488) Cash Flow From Operations** Number of Accounts 150 300 5008008009001000110012001300 Monthly Service Fees ($10/month) 4,500 9,000 15,000 24,000 52,500 108,000 120,000 132,000 144,000 156,000 Commodity Sales ($30/acct/year) 1,125 2,250 3,750 6,000 13,125 27,000 30,000 33,000 36,000 39,000 Commodity Sales Commercial Cardboard 30,000 30,000 30,000 30,000 30,000 30,000 Total Cash Receipts5,625 11,250 18,750 30,000 95,625 165,000 180,000 195,000 210,000 225,000 Total Cash Available230,000 23,625 14,037 11,187 18,537 113,625 181,343 221,127 268,266 322,276 138,512 Cash Paid Out Office Supplies 375 375 375 375 1,500 1,545 1,591 1,639 1,688 1,739 Computer Supplies 125 125 125 125 500 515 530 546 563 580 Clothing & Uniforms 75 75 75 75 300 309 318 328 338 348 Advertising & Promotion 4,000 1,500 1,500 1,500 1,500 6,000 10,300 10,609 10,927 11,255 11,593 Fuel 563 1,125 1,875 3,000 6,563 14,175 16,538 19,101 21,879 24,887 Insurance‐ Repairs & Maintenance 1,000 1,200 1,500 2,000 5,700 8,308 8,628 8,960 9,318 9,691 Payroll‐ Wages ‐ 1 FTE, 1.5 FTE 11,346 11,346 11,346 17,019 51,058 70,698 73,420 76,247 79,297 82,469 Medical Benefits ‐ 1 FTE, 1.5 FTE 2,214 2,214 2,214 3,321 9,964 14,614 16,076 17,683 19,452 21,397 Other Benefits ‐ 1 FTE, 1.5 FTE 2,277 2,277 2,277 3,416 10,247 14,187 14,471 14,760 15,056 15,357 Small Equipment/Misc Vehicle Supplies 113 113 113 113 450 464 477 492 506 522 General Miscellaneous (Unanticipated) 1,250 1,250 1,250 1,250 5,000 5,100 5,202 5,306 5,412 5,520 Sub Total 4,000 20,838 21,600 22,650 32,194 97,282 140,216 147,861 155,990 164,764 174,102 Capital Purchases Collection Truck 200,000 244,000 ‐ Recycling Tubs 8,000 ‐ ‐ ‐ ‐ ‐ 700 Total Cash Paid Out 212,000 20,838 21,600 22,650 32,194 97,282 140,216 147,861 155,990 408,764 174,802 Ending Cash Balance 18,000 2,787 (7,563) (11,463) (13,657) 16,343 41,127 73,266 112,276 (86,488) (36,291) 113