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There are several accepted and commonly used methods for allocating indirect costs to a city's solid <br />waste utility. Provided in the worldbook is a description of two allocation methodologies. The city may <br />use either of these methodologies to allocate indirect costs to fts solid waste utility (See Section V. <br />Detailed Cost Information Forms, Indirect Costs - Forms 10 and 11). A municipality is not required to <br />use one of the indirect cost allocation methodofogies presented in this worfdbook. However, the <br />municipality should develop an allocation methodology that accurately captures the indirect costs <br />associated with the city's solid waste programs. If a c'rty presently has an allocation methodology in <br />place, they need only to verify that it is a fair and equitable methodology. <br />C. Other Revenue <br />Once the city has identified its direct and indirect costs, the city must account for any special revenues <br />generated by the citys solid waste programs. These special revenues may include revenues from the <br />sale of recyclables, interest income and miscellaneous income. These revenues are then subtracted <br />from the direct and indirect costs in developing cost of service based rates. These revenues will be <br />discussed in greater detail in Section V. Detailed Cost Information Forms, Other Revenue. <br />. 000197 <br />