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111. HOW TO USE THE WORKBOOK A. Steps To Be Cornpleted The purpose of the wor{dbook is to assist the municipality in developing cost of service based rates for the city's solid waste programs. The workbook was designed as a tool to assist the municipality in capturing the necessary financial and volumetric data that will allow the city to calculate solid waste rates (e.g. customer charges, tipping fees, etc.) that reflect the full cost of providing the various solid waste programs (e.g. collection, disposal, recycling, yard waste, etc.). There are five steps that the city must follow in order to calculate its cost of service based solid waste rates Step 1. The city must identify all direct costs associated with the city's solid waste services. Step 2. The city must identify all indirect costs associated with the city's solid waste services. Step 3. Using the cit/s financial records, the city must directly assign and/or allocate the solid waste costs (identified in Steps 1& 2) to the solid waste programs which are the beneficiaries of these expenditures. Step 4. If applicable, the city must allocate the program costs identified in Step 3(e.g. collection costs, disposal costs, etc.) among the citys solid waste customer classes (e.g. residential, commercial, etc.) Step 4 is only necessary when the city serves more than one customer class. Step 5. The final step is to calculate the citys user f-ees. The workbook will provide the city with the necessary forms to complete these five steps. Once the city has completed these steps, the city will then be able to identify the cost of each solid waste program offered by the city, as well as the cost per customer served (see Exhibit 1). Depending on how the city is presently recording its solid waste costs and volumes, the city may not have to use the wor{dbook to complete all five steps. For instance, 'rf the ciry records its direct and indirect solid waste costs in a solid waste enterprise fund, then the city does not need to use the workbook to complete Steps 1 and 2. Since every city is unique, each city will have to review the entire workbook and then determine which forms in the workbook should be used to calculate the city's solid waste rates. . 000198 . 000011