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I. INTRODUCTION A. Background In recent years there has been an increased focus upon the rising costs associated with providing municipal solid waste services. Cities across the state, both large and small, have seen sign'rficant increases in these costs. As a result, the 73rd Texas Legislature introduced and passed legislation which required the Texas Natural Resource Conservation Commission (TNRCC) to conduct demonstration projects and studies to help local governments and the private sector determine rates that reflect the full cost of providing solid waste services. To meet this objective, in August 1994 the TNRCC retained the project team of Reed-Stowe & Co., Inc.; Camp Dresser & McKee; and Yvette Thompson, P.E. to develop a full cost accounting workbook for municipal solid waste services. B. Goals Of The Workbook The primary goal of the workbook is to provide the municipality with a system for collecting cost data and establishing rates which reflect the full cost of providing solid waste services. While the workbook focuses on collection, disposal, recycling and yard waste programs; the workbook may be used to determine the costs associated with all of the city's solid waste programs. This would include the costs associated with maintaining and operating the citys household hazardous waste program, used oil collection program, used battery program, etc. The term "city" and "municipality" will be used throughout the wor{dbook. However, the workbook will also prove beneficial for those counties, governmental agencies and private operators that are attempting to establish cost of service based rates. A secondary goal of the workbook is to help the city in developing a comprehensive solid waste management.plan. Once the municipality has determined the full cost of each solid waste program and the rate per hoUsehold, it will be able to use this information to better evaluate the financial performance of the various programs. With this information, the city can decide which programs will provide the most benefit, given the municipality's financial resources. The worksheets and methodology presented in this workbook offer a cost of service based approach with regard to the development of solid waste rates. However, this workbook is not presented as the only methodology which may be used to record solid waste costs and to calculate customer charges and tipping fees. A city might determine that it is accurately capturing all of its solid waste costs using a methodology and reporting format that is different from the one presented in this worldbook. In this case the workbook can be used as a guide and reference tool. It is not required that cities use this workbook in establishing their solid waste service,rates, rather it is a tool that is being made available to cities that believe they will benefit trom using the workbook to develop their solid waste customer charges and tipping fees. . 000193