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<br />2. Cost of Service Analysis – Using the results of the Revenue Sufficiency Analysis, allocate all <br />of the City’s projected sanitation costs between service types to determine the revenue <br />requirement for sanitation for the residential and commercial customers served by the City. <br />3. User Charge Structure Analysis – Examine the City’s current sanitation user charge and <br />develop modifications, as appropriate, to generate a new user charge that is fair, equitable, <br />easy to understand, conform to accepted industry practice, and reflects the cost to serve City <br />customers. <br />REVENUE SUFFICIENCY ANALYSIS (RSA) <br />This analysis evaluated the sufficiency of the City’s user charge revenues to meet all of its current <br />and projected financial requirements over a ten-year projection period, and determined the level of <br />any user charge revenue adjustments necessary in each year of the projection period to provide <br />sufficient revenues to fund the City’s cost requirements. <br />The analysis determined that the City’s current user charge revenues are no longer sufficient to meet <br />the current projected financial needs of the City to fund its ongoing operations, capital program, debt <br />service and coverage requirements, and working capital reserves. Therefore, a long-term financial <br />management plan and series of revenue adjustments was developed, as shown in the table below. <br />COST OF SERVICE ANALYSIS (COSA) <br />In order to calculate the cost to provide sanitation services for The City, the City’s operating and <br />capital budgets must be allocated accordingly. The City’s costs were allocated to 5 cost center pools: <br />• <br />• <br />• <br />Right-of-Way (ROW) Cleaning – Cleaning of sidewalks and alleys of debris, trash and weed <br />removal and abatement <br />Illegal Dumping – Clearing rubbish and bulky items from streets and sidewalks disposed of in <br />unauthorized locations <br />Sanitation Code Compliance – Enforcing compliance with all of the Sanitation related <br />municipal codes and regulations adopted by the Council <br />• <br />• <br />Street Sweeping – Roadway cleaning to remove trash and other debris from the streets <br />Emergency Services – Provide sanitation services in an emergency situation <br />The results of the COSA reflect the costs to provide each of these services. The results from this <br />analysis are used as the revenue requirement for calculating the updated user charge. <br />The table below reflects the relative expenses incurred in providing each service. <br />4