HomeMy WebLinkAbout2023 08 14 Awards/Presentation 102 - Solid Waste Rate Study MSW ConsultantsAWARDS AND PRESENTATIONS ITEM 102
CITY COMMISSION AGENDA | AUGUST 14, 2023 REGULAR MEETING
TITLE
Solid Waste Rate Study - MSW Consultants
SUMMARY
In 2006, the City entered into a franchise agreement with Waste Pro of Florida, Inc.
This agreement was established by Ordinance 2006-01. The residential collection and
disposal rates for residential services were established with Resolution 2006-06
(attached). In 2006 this rate was set at $18.10 for monthly residential service which
includes 2 garbage collections, 1 yard waste collection and 1 recycling collection
weekly and disposal at the County's landfill. This rate has not changed since March
2006. The Waste Pro contract allows for a CPI increase up to 2.5% per year and
recently the County increased its rates for the landfill. Staff had learned the County is
considering a charge for recyclables. As the City's costs have been increasing over the
last 18 years, it has not passed these increases on to residents. This has required the
use of reserves to cover the costs.
The City engaged MSW Consultants to perform an analysis on the rates charged for
collection and disposal of household waste. MSW will present the results of their
analysis and the reports are attached.
FUNDING SOURCE
RECOMMENDATION
Staff requests the City Commission receive the presentation and consider the Solid
Waste Rate Options presented by MSW Consultants.
18
Winter Springs
MSW Consultants 1
800.679.9220 x 11 | mswconsultants.com
Solid Waste Rate Study: Findings
for Commission Meeting
Conducted for
August 14, 2023
About MSW Consultants
800.679.9220 x 11 | mswconsultants.com
•Independent Consultants Specializing in the
Municipal Waste Management Sector
•Wide Knowledge of National Waste
Management Best Practices
•Industry-Leading Solid Waste Operational
Evaluation &
Performance Modeling
•Specialization in Solid Waste Utility
Cost-of-Service & Rate Analysis
•Project Manager with Broad Exposure to
Municipal Programs
1
2
19
Winter Springs
MSW Consultants 2
Initial data request and kick-off meeting
Review of ordinances, contracts, and interlocal
agreements
Compile internal admin and management costs
Forecast growth of customer base and select inflation
assumptions
Compare full cost rate to current rates to baseline
revenue sufficiency
Collaborate with City staff to design rate paths and
recommendations
Submittal of draft report and exhibits for City feedback and finalization of report
Methodology Summary
800.679.9220 x 11 | mswconsultants.com
Seminole County Communities
800.679.9220 x 11 | mswconsultants.comSource: Survey provided by City of Lake Mary to City of Winter Springs
Municipality Households Service Provider
Contract
Expiration
Seminole County 68,994 Advanced Disposal & Waste Pro 12/31/27
Sanford 14,939 Waste Pro 05/31/26
Winter Springs 12,466 Waste Pro 02/28/27
Oviedo 12,462 Waste Pro 09/30/23
Winter Park 9,300 Waste Pro 10/01/23
Casselberry 7,976 Waste Pro 12/31/27
Altamonte Springs 6,792 City N/A
Lake Mary 5,543 Waste Pro 02/28/22
Longwood 5,251 Waste Pro 09/30/25
Maitland 3,869 Waste Pro 09/30/23
3
4
20
Winter Springs
MSW Consultants 3
Benchmarking Comparisons
800.679.9220 x 11 | mswconsultants.com
Municipality
Solid Waste
Rate per HH
Collection
Cost per HH
Garbage
Frequency
Recycling
Frequency
Yard Waste
Frequency
Oviedo $25.00 $17.35 1x/wk 1x/wk 1x/wk
Seminole County $25.00 $14.24 2x/wk 1x/wk Varies
Casselberry $24.15 $17.10 2x/wk 1x/wk 1x/wk
Longwood $24.05 $21.46 2x/wk 1x/wk 1x/wk
Maitland $23.75 $14.22 2x/wk 1x/wk 1x/wk
Altamonte Springs $22.75 N/A 2x/wk 1x/wk 1x/wk
Lake Mary $20.90 $16.45 1x/wk 1x/wk 1x/wk
Sanford $20.76 $16.91 2x/wk 1x/wk 1x/wk
Winter Park $18.71 $14.48 2x/wk 1x/wk 1x/wk
Winter Springs $18.10 $16.13 2x/wk 1x/wk 1x/wk
Source: Survey provided by City of Lake Mary to City of Winter Springs
Waste Pro current charges and CPI adjustments for
collection cost
Commercial, roll-off, and residential franchise fee
revenues
Key Data for Financial Model
800.679.9220 x 11 | mswconsultants.com
Current charge to residents
Starting reserve balance
Household counts and annual household growth rates
General fund transfer allocations for customer service,
franchise fee, and storm reserve obligations
Seminole County current charges and CPI adjustments
for disposal and processing costs
Tonnage for garbage, recycling, and yard waste
Environmental revenue share from Seminole County
5
6
21
Winter Springs
MSW Consultants 4
Projected Price Increase of
Collection Contract Re-Bid
800.679.9220 x 11 | mswconsultants.com
Year
CPI - All
Items Waste Pro
2007 3.5% 2.5%
2008 3.7% 2.5%
2009 -0.2% -0.2%
2010 1.2% 1.2%
2011 3.5% 2.5%
2012 2.2% 2.2%
2013 1.0% 1.0%
2014 1.7% 1.7%
2015 0.2% 0.2%
2016 1.6% 1.6%
2017 2.0% 2.0%
2018 2.5% 2.5%
2019 1.8% 1.8%
2020 1.2% 1.2%
2021 6.2% 2.5%
2022 7.7% 2.5%
2023 5.0% 2.5%
2024 5.0% 2.5%
2025 5.0% 2.5%
2026 5.0% 2.5%
2027 5.0% 2.5%
Overall
Change
Since 2006
88.5% 48.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
Cumulative Change to Collection Pricing Since 2006
All Items Contractual Escalation
Key Assumptions
800.679.9220 x 11 | mswconsultants.com
•Starting operating reserve balance for FY 2023 - $325,211
•Operating reserve balance target for FY 2023 - $790,287
•Projected operating reserve deficit for FY 2024 -($161,375)
•Seminole County reported rate path based on 2022 Stantec study
•Current disposal or processing cost per ton
•Trash - $37.58
•Recycling - $0.00
•Yard Waste - $37.58
•General fund transfer allocations per customer per month
•Customer Service - $0.65
•Franchise Fee - $0.35
•Storm Reserve - $0.00
Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Seminole County
CPI Adjustment
Rate
N/A 5.25% 5.25% 5.25% 5.25% 4.75% 4.75% 4.75% 4.75% 4.75%
7
8
22
Winter Springs
MSW Consultants 5
Status Quo Projections
800.679.9220 x 11 | mswconsultants.com
($161,375)
($16,847,692)
$790,287
$1,516,601
($20,000,000)
($17,500,000)
($15,000,000)
($12,500,000)
($10,000,000)
($7,500,000)
($5,000,000)
($2,500,000)
$0
$2,500,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Projected Reserve Fund Deficit with No Rate Increases
Projected Reserve Fund Balance Projected Reserve Fund Requirement
Rate Path Options
800.679.9220 x 11 | mswconsultants.com
•Option 1 (One-Year Shock)
•Option 2 (Two-Year Ramp Up)
•Option 3 (Three-Year Ramp Up)
9
10
23
Winter Springs
MSW Consultants 6
Rate Path Options
800.679.9220 x 11 | mswconsultants.com
Rate Path Options 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Option 1
Rate Increase N/A 56.0% 3.0% 3.0% 3.0% 3.0% 2.0% 2.0% 2.0% 2.0%
Monthly Rate per HH $18.10 $28.24 $29.08 $29.96 $30.85 $31.78 $32.42 $33.06 $33.73 $34.40
Option 2
Rate Increase N/A 25.0% 25.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Monthly Rate per HH $18.10 $22.63 $28.28 $29.41 $30.59 $31.81 $33.09 $34.41 $35.78 $37.22
Option 3
Rate Increase N/A 18.0% 18.0% 18.0% 5.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Monthly Rate per HH $18.10 $21.36 $25.20 $29.74 $31.23 $32.47 $33.77 $35.12 $36.53 $37.99
Option 1 Rate Path
Considerations
800.679.9220 x 11 | mswconsultants.com
Option 1 (One-Year Shock):
•Pro: Assures rapid recovery of reserve fund balance
requirement by EOY 2024.
•Pro: Only requires smaller 3% and 2% annual increases
afterwards.
•Con: Greatly over accrues reserve fund balance as a result
of current and projected deficit.
11
12
24
Winter Springs
MSW Consultants 7
Option 2 Rate Path
Considerations
800.679.9220 x 11 | mswconsultants.com
Option 2 (Two-Year Ramp Up):
•Pro: Assures timely recovery of reserve fund balance
requirement by EOY 2025
•Pro: Only requires 4% annual increases afterwards
•Con: Will over accrue reserve fund balance as a result of
current and projected deficit.
•Con: Reserve fund balance will be negative in 2023 and
2024.
Option 3 Rate Path
Considerations
800.679.9220 x 11 | mswconsultants.com
Option 3 (Three-Year Ramp Up):
•Pro: Spreads out initial rate increases over three years.
•Pro: Operating reserves track closely to policy (no over-
accrual).
•Neutral: Moderate 5% and 4% rate increases starting in
year four.
•Con: Reserve fund balance will be negative 2023 through
2025.
•Con: Reserve fund balance recovery not achieved until
EOY 2026.
13
14
25
Winter Springs
MSW Consultants 8
Considerations During Re-Bid
800.679.9220 x 11 | mswconsultants.com
The City has options to manage the cost of solid
waste services that were not evaluated in this study.
Reduce residential refuse collection frequency from 2x to
1x per week
Establish carted (automated) residential yard waste
collection
Establish carted (single-stream) recycling collection
(subject to development of Orange County Regional MRF)
Retain professional procurement advisor to integrate best
practices and market assessment
Contacts
John Culbertson, Principal
407.380.8951 | jculbertson@mswconsultants.com
Frank Canepa, Associate Project Manager
407.801.1369 | fcanepa@mswconsultants.com
800.679.9220 x 11 | mswconsultants.com
15
16
26
Solid Waste Rate Study
DRAFT REPORT
Prepared by August 4, 2023
27
This report was delivered electronically. If it is necessary to print a hard copy, please
use recycled-content/FSC-certified paper and recycle when no longer needed.
28
Winter Springs i
TABLE OF CONTENTS
1. INTRODUCTION ................................................................................................... 1
2. METHODOLOGY ................................................................................................... 1
3. CONTRACTUAL ESCALATION ........................................................................... 2
4. BENCHMARKING ................................................................................................. 4
5. FINANCIAL MODEL ............................................................................................. 5
5.1 Current System ............................................................................................................................. 5
5.2 Operating Reserve Policy and Status Quo Projections .......................................................... 6
6. RATE RECOMMENDATION ................................................................................ 7
6.1 Rate Path Options ........................................................................................................................ 7
6.2 Rate Recommendation ................................................................................................................ 8
List of Figures
Figure 3-1 Comparison of Contractual Escalation vs. CPI-All Items (Life of Contract) ....................... 4
Figure 5-1 Projected Reserve Fund Deficit with No Rate Increases ......................................................... 7
Figure 6-1 Projected Operating Results .......................................................................................................... 8
Figure 6-2 Projected Reserve Fund Surplus With Recommended Rate Increases ................................. 9
List of Tables
Table 3-1 Comparison of Contractual Escalation vs. CPI – All Items ...................................................... 3
Table 4-1 Benchmarking Summary (Monthly Rates and Charges) ............................................................. 5
Table 5-1 Full Cost Monthly Rates per Household ...................................................................................... 6
Table 6-1 Rate Path Options ............................................................................................................................ 7
List of Exhibits
Exhibit A – Benchmarking Data
29
ii Winter Springs
This page is intentionally left blank.
30
Winter Springs 1
CITY OF WINTER SPRINGS RATE STUDY
1. INTRODUCTION
The City of Winter Springs (City) provides curbside collection service to its residential customers. The City
contracts with Waste Pro for these services, including garbage, yard trash, recycling, and bulky waste
collections. The City incurs administrative expense to manage the contract, establish service level policies,
provide public outreach and education, and plan future changes to the solid waste program. The City relies
on Seminole County to accept its wastes and recyclables for disposal or processing and pays the County’s
established disposal tip fees and recyclables processing charges on top of the cost of its collection contract.
Currently, the City charges a rate of $18.10 per household per month for these services, and pays Waste
Pro $16.13 per household per month for the performance of the curbside collection services. For disposal
and processing, the City pays Seminole County $37.58 per ton of refuse or yard waste and $0.00 per ton
recyclables. At this time, the City is expecting to incur significant increases in the cost of collection when
their current contract expires and it is necessary to procure a new contractor at current market rates, which
have risen appreciably due to recent macroeconomic forces. Further, Seminole County has published a
10-year projection of its disposal and processing rates, which are expected to escalate at a much higher rate
going forward. These impending increases to system expenses will require the City to raise its solid waste
rates if the City wishes to maintain break-even financial performance within its solid waste management
program.
MSW Consultants (MSW) was retained by the City to conduct a solid waste rate study including a test year
revenue sufficiency projection and a five-year revenue sufficiency forecast that captures the impacts of
higher contract collection costs as well as more rapidly escalating disposal and recycling fees. The financial
model prepared for the City compares current rates to projected full cost rates. Based on these calculations,
MSW Consultants collaborated with City Finance and Public Works staff to develop and recommend rate
paths to assure the financial stability of the program.
2. METHODOLOGY
Development of the financial model followed conventional steps to utility rate analysis. An abbreviated
list of the study approach is shown in the bullets below.
Attend an in-person kick-off meeting,
Submit an initial data request,
Review the Solid Waste ordinance,
Review the Waste Pro contract as well as all amendments,
Review the interlocal agreement with Seminole County for material disposal and processing,
Compile internal administrative and management costs,
Forecast the growth of the customer base and select assumptions about inflation for the life of the
financial model,
Compare full cost rates to current rates to baseline revenue recovery,
Collaborate with City staff to design a rate recommendation including up to three rate paths,
Attend virtual meetings as needed to complete the work,
Submit a concise draft report with supporting financial and rate exhibits, and
Submit the final report addressing City feedback on the draft.
31
CITY OF WINTER SPRINGS RATE STUDY
2 Winter Springs
3. CONTRACTUAL ESCALATION
The City is currently contracted with Waste Pro for the provision of solid waste, recycling, and yard waste
collection services for the City’s residential households. This contract is slated to expire in 2027. In what
has been a significant contractual benefit to the City, Waste Pro agreed to cap annual rate escalation to 2.5
percent for the life of the contract. While this escalation cap did not materially impair either party in the
early years of the contract, the recent period of high inflation has prevented Waste Pro from aligning its
rates with underlying cost increases. It is likely that a new contract, where bidders set their pricing based
on current market conditions, will result in significantly higher prices for Winter Springs.
To gain some perspective on the potential impact of resetting collection contract rates to market, MSW
compared the contractually capped rate escalation in the Waste Pro contract with the actual consumer
price index (CPI) changes over the life of the contract. The comparison was made using the All Items in
U.S. City Average, All Urban Consumers, Not-Seasonally Adjusted (CUUR0000SA0) CPI dataset.
Table 3-1 compares the contractually allowed increases to the actual CPI based on the above-mentioned
index. This table also projects the CPI inflation rate for 2023 through 2027, the end year of the current
contract. Figure 3-1 shows this same comparison visually using 2006 as the base year.
32
CITY OF WINTER SPRINGS RATE STUDY
Winter Springs 3
Table 3-1 Comparison of Contractual Escalation vs. CPI – All Items
Year
CPI - All
Items
Waste Pro
Contractual
Escalation
2007 3.5% 2.5%
2008 3.7% 2.5%
2009 -0.2% -0.2%
2010 1.2% 1.2%
2011 3.5% 2.5%
2012 2.2% 2.2%
2013 1.0% 1.0%
2014 1.7% 1.7%
2015 0.2% 0.2%
2016 1.6% 1.6%
2017 2.0% 2.0%
2018 2.5% 2.5%
2019 1.8% 1.8%
2020 1.2% 1.2%
2021 6.2% 2.5%
2022 7.7% 2.5%
2023 5.0% 2.5%
2024 5.0% 2.5%
2025 5.0% 2.5%
2026 5.0% 2.5%
2027 5.0% 2.5%
Overall Change
Since 2006 88.5% 48.6%
33
CITY OF WINTER SPRINGS RATE STUDY
4 Winter Springs
Figure 3-1 Comparison of Contractual Escalation vs. CPI-All Items (Life of Contract)
As shown, had Waste Pro been able to increase their rates in line with inflation, the City’s rates would be
substantially higher than they are at the present time. When compared to All Items CPI, the contractual
rate escalation lags almost 40 percent. In the professional opinion of MSW Consultants, the contract rebid
in 2027 is likely to result in substantially higher rates than the City currently enjoys as the market seeks to
incorporate economic price increases into their services.
As shown above, it has been assumed that contract collection will jump at minimum of 40 percent when
the new collection contract is procured in 2027. Note that this is only an estimate; actual collection pricing
could increase more or less than the estimate used in this rate study based on market conditions at the
time of procurement. In the professional opinion of MSW Consultants, the increase is likely to be higher
than 40 percent, as we are aware of other communities in Florida that have experienced price increases
above 60 percent upon rebidding a long term, expiring collection contract.
4. BENCHMARKING
It is informative to compare the service levels and costs of solid waste collection and disposal in Winter
Springs with other Central Florida municipalities and counties. The City provided benchmarking data
collected by the City of Lake Mary, which is summarized here and includes various data points such as:
Households counts,
Monthly charge to residents,
Service provider for curbside collection,
Monthly cost per household paid to service provider,
Collection technology,
Collection frequency, and
Contract expiration dates.
Exhibit A contains a detailed tabular comparison, while Table 4-1 below summarizes shows the most
relevant comparisons from the perspective of setting solid waste rates for residential services. (Note that
MSW Consultants has not verified the validity of all the data points provided, but believes the data are
reasonable based on our knowledge of the industry and the regional market.)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026
All Items Contractual Escalation
34
CITY OF WINTER SPRINGS RATE STUDY
Winter Springs 5
Table 4-1 Benchmarking Summary (Monthly Rates and Charges)
Municipality
Households
Service
Provider
Solid Waste
Rate per HH
Collection
Cost per HH
Garbage
Frequency
Recycling
Frequency
Yard Waste
Frequency
Contract
Expiration
Oviedo 12,462 Waste Pro $25.00 $17.35 1x/wk 1x/wk 1x/wk 09/30/23
Seminole
County 68,994
Advanced
Disposal &
Waste Pro
$25.00 $14.24 2x/wk 1x/wk Varies 12/31/27
Casselberry 7,976 Waste Pro $24.15 $17.10 2x/wk 1x/wk 1x/wk 12/31/27
Longwood 5,251 Waste Pro $24.05 $21.46 2x/wk 1x/wk 1x/wk 09/30/25
Maitland 3,869 Waste Pro $23.75 $14.22 2x/wk 1x/wk 1x/wk 09/30/23
Altamonte
Springs 6,792 City $22.75 N/A 2x/wk 1x/wk 1x/wk Ongoing
Lake Mary 5,543 Waste Pro $20.90 $16.45 1x/wk 1x/wk 1x/wk 02/28/22
Sanford 14,939 Waste Pro $20.76 $16.91 2x/wk 1x/wk 1x/wk 05/31/26
Winter Park 9,300 Waste Pro $18.71 $14.48 2x/wk 1x/wk 1x/wk 10/01/23
Winter Springs 12,466 Waste Pro $18.10 $16.13 2x/wk 1x/wk 1x/wk 02/28/27
As shown in this table, Winter Springs’ current solid waste rates are the lowest in the region. Further, the
spread between collection costs and the full solid waste rate is extremely low for Winter Springs. In the
opinion of MSW Consultants, Winter Springs has provided a high level of service to its residents at an
extremely low cost. However, this study illustrates that it will not be possible to sustain such low rates.
5. FINANCIAL MODEL
5.1 CURRENT SYSTEM
MSW Consultants developed a financial model using data provided by the City to build a normalized
estimate of annual system revenues and full cost. The projections incorporated the City’s policies for
maintaining a cash operating reserve in addition to covering full system expense. The model combines the
following information:
The starting reserve balance for FY23,
Household counts and annual household growth rates,
Waste Pro CPI adjustment projections for contracted collection services,
Seminole County CPI adjustment projections (as stated in Seminole County’s 2022 Solid Waste
Revenue Sufficiency Analysis conducted by Stantec) affecting disposal charges,
General fund transfer allocations for customer service, franchise fee, and storm reserve obligations,
35
CITY OF WINTER SPRINGS RATE STUDY
6 Winter Springs
Tonnage (waste generation) for garbage, recycling, and yard waste streams,
Environmental revenue share from Seminole County, and
Commercial, roll-off, and residential franchise fee revenues.
Based on these inputs, the current monthly rate of $18.10 was found to be insufficient to meet the City’s
revenue needs. Table 5-1 shows the actual monthly cost per household for 2023 and the projected monthly
cost per household for 2024 through 2032. Note the expected significant increase in 2027, which is based
on the expectation that contract collection pricing will increase significantly based on market conditions
at the time of the procurement.
Table 5-1 Full Cost Monthly Rates per Household
Year 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Waste Pro CPI
Adjustment Rate N/A 2.50% 2.50% 2.50% 39.90% 5.00% 5.00% 5.00% 5.00% 5.00%
Seminole County
CPI Adjustment
Rate
N/A 5.25% 5.25% 5.25% 5.25% 4.75% 4.75% 4.75% 4.75% 4.75%
Monthly Full Cost
Rate per HH $21.13 $21.80 $22.48 $23.20 $30.45 $31.96 $33.54 $35.20 $36.94 $38.77
Annual
Percentage
Increase
N/A 3.1% 3.2% 3.2% 31.3% 4.9% 4.9% 4.9% 4.9% 4.9%
5.2 OPERATING RESERVE POLICY AND STATUS QUO PROJECTIONS
Figure 5-1 below shows the projected balance of the solid waste reserve fund versus the projected reserve
fund requirement, set as 25 percent of annual operating expenses. As seen, the City is already below its
reserve fund requirement and without any changes to household rates, the City will experience an
increasingly large deficit in its solid waste program.
36
CITY OF WINTER SPRINGS RATE STUDY
Winter Springs 7
Figure 5-1 Projected Reserve Fund Deficit with No Rate Increases
6. RATE RECOMMENDATION
6.1 RATE PATH OPTIONS
Based on the analysis described in this report it will be critical for the City to plan on either (a) increasing
its customer charges if it maintain current service levels, or (b) reducing collection frequency when it
reprocures services. For the purpose of developing rate options, the City and MSW Consultants agreed to
assume that service levels in the new contract will not be reduced.
Under these assumptions, and in consultation with City staff, MSW Consultants identified three rate path
options for consideration by the City. The options are defined below and summarized in Table 6-1.
Option 1 – One-Year Shock with Subsequent Annual Escalator,
Option 2 – Two-Year Ramp Up with Subsequent Annual Escalator, and
Option 3 – Three-Year Ramp Up with Subsequent Annual Escalator.
Table 6-1 Rate Path Options
Rate Path Options 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Option 1
Rate Increase N/A 56.0% 3.0% 3.0% 3.0% 3.0% 2.0% 2.0% 2.0% 2.0%
Monthly Rate per HH $18.10 $28.24 $29.08 $29.96 $30.85 $31.78 $32.42 $33.06 $33.73 $34.40
Option 2
Rate Increase N/A 25.0% 25.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Monthly Rate per HH $18.10 $22.63 $28.28 $29.41 $30.59 $31.81 $33.09 $34.41 $35.78 $37.22
Option 3
Rate Increase N/A 18.0% 18.0% 18.0% 5.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Monthly Rate per HH $18.10 $21.36 $25.20 $29.74 $31.23 $32.47 $33.77 $35.12 $36.53 $37.99
($161,375)
($16,847,692)
$790,287
$1,516,601
($20,000,000)
($17,500,000)
($15,000,000)
($12,500,000)
($10,000,000)
($7,500,000)
($5,000,000)
($2,500,000)
$0
$2,500,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Projected Reserve Fund Balance Projected Reserve Fund Requirement
37
CITY OF WINTER SPRINGS RATE STUDY
8 Winter Springs
6.2 RATE RECOMMENDATION
MSW Consultants recommends that the City implement Option 2. This option spreads out the shock of
significantly higher rates over two years, while enabling the City to reset its solid waste operation and
financial management on a sustainable path.
Figure 6-1 and Figure 6-2 illustrate the benefits of implementing Option 2. Figure 6-1 confirms that these
rates will generate sufficient system revenue to accommodate projected and known underlying increases
in collection contract, disposal, and recycling expense. Figure 6-2 verifies that these recommended rates
allow the City to maintain an operating reserve to weather unforeseen disruptions in residential collection,
disposal, and processing services.
Figure 6-1 Projected Operating Results
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Waste Pro Collection Charges Seminole County Disposal/Processing Charges
Combined Revenues
38
CITY OF WINTER SPRINGS RATE STUDY
Winter Springs 9
Figure 6-2 Projected Reserve Fund Surplus With Recommended Rate Increases
It is particularly important to note that the recommended rate path positions the City closer to the
midpoint of customer charges in the Seminole County market in 2024. Thereafter, the City rates will be
positioned for the expected contractual collection cost increases from the re-bid process. While this
recommended rate path will likely be perceived as a shock by some customers, in practice it reflects a
correction of the City’s below-market rate structure that has evolved in the past several years and is not
sustainable. Additionally, these rate increases serve to reinforce the City’s reserve fund in a more rapid
fashion, with insufficient reserves only until 2024.
($161,375)
$1,608,464
$790,287
$1,516,601
($400,000)
($200,000)
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Projected Reserve Fund Balance Projected Reserve Fund Requirement
39
CITY OF WINTER SPRINGS RATE STUDY
10 Winter Springs
This page is intentionally left blank.
40
Winter Springs
EXHIBIT A
Benchmarking Data
41
Winter Springs
This page is intentionally left blank.
42
Exhibit A - Benchmarking Data
Municipality Households
Solid Waste
Rate per HH Service Provider
Collection Cost
per HH Tipping Fees
Collection
Technology
Garbage
Frequency
Recycling
Frequency
Yard Waste
Frequency
Exclusive
Franchise Type
Contract
Expiration
Exclusive or Open
Market (Commercial)
Oviedo 12,462 $25.00 Waste Pro $17.35 Included Automated 1x/wk 1x/wk 1x/wk Residential 09/30/23 Open
Seminole County 68,994 $25.00
Advanced Disposal
& Waste Pro $14.24 N/A Manual 2x/wk 1x/wk Varies Residential 12/31/27 Open
Casselberry 7,976 $24.15 Waste Pro $17.10 Seminole County Manual 2x/wk 1x/wk 1x/wk Residential 12/31/27 Exclusive (Separate
from Residential)
Longwood 5,251 $24.05 Waste Pro $21.46 Included Semi-Automated 2x/wk 1x/wk 1x/wk Residential 09/30/25 Waste Pro
Maitland 3,869 $23.75 Waste Pro $14.22 Seminole County Mix 2x/wk 1x/wk 1x/wk
Residential &
Commercial 09/30/23 Exclusive
Altamonte Springs 6,792 $22.75 City N/A Unknown Semi-Automated 2x/wk 1x/wk 1x/wk Residential Ongoing Open
Lake Mary 5,543 $20.90 Waste Pro $16.45 Included Semi-Automated 1x/wk 1x/wk 1x/wk
Residential &
Commercial 02/28/22 Waste Pro
Sanford 14,939 $20.76 Waste Pro $16.91 Included Manual 2x/wk 1x/wk 1x/wk
Residential &
Commercial 05/31/26 Waste Pro
Winter Park 9,300 $18.71 Waste Pro $14.48 Seminole County Automated 2x/wk 1x/wk 1x/wk
Residential &
Commercial 10/01/23 Waste Pro
Winter Springs 12,466 $18.10 Waste Pro $16.13 Seminole County Mix 2x/wk 1x/wk 1x/wk
Residential &
Commercial 02/28/27 Exclusive
Winter Springs Page 1 of 1 43
Winter Springs
This page is intentionally left blank.
44
45
11875 High Tech Ave., Ste. 150 | Orlando, FL 32817
mswconsultants.com | 800.679.9220
46
47
48
49
50
51
52
53