Blackstone Environmental conducted a tipping fee rate study for the City of St. Joseph, Missouri landfilling operations. The focus of the study involved developing a Pro Forma model to project the year-to-year landfill finances for the next 20 years. Because the landfill operates as an enterprise fund, a thorough analysis of current and forecasted expenditures and remaining landfill life was required to develop a more accurate bottom line. The results of the study allowed Blackstone to recommend a series of tipping fee adjustment schedules based on different rates of accepted waste.
The overall objective of this rate study was to calculate the solid waste fees and assessments required to recover the costs of providing solid waste and recycling services to the residents, businesses, and other institutions of the City of St. Joseph. The development of the model was based on: an evaluation of current and future operating costs, capital expenses (equipment purchases, cell construction costs, cell closure and post-closure costs), obligatory financial requirements, market competition, regulatory requirements, accepted waste rates, and miscellaneous sources of revenue not generated by the landfill tipping fee. Historical tonnage and financial data were implemented to help calibrate the model.
Four different model scenarios –– each with varying quantities of accepted waste quantities –– were ran and a 20-year tipping fee adjustment schedule was generated based on the minimum revenue demanded by operational expenses over that time period and cell construction and closure costs beyond the range of the model. The City used the model results to plan a tipping fee schedule and provide a recommendation to the City Commissioners.