Item 44 - Public Hearing – Adopt a Resolution Adjusting Sanitation Services Users Charge

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