The FY 04-05 SW budget

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The FY 04-05 SW budget

Postby Norman Phillips » Wed Jan 07, 2004 3:25 pm

For a firm base for discussion, here is the SW budget for 04-05. FY 04-05 SOLID WASTE BUDGET FROM THE BOS (DEC 2003), AS THEN RECOMMENDED BY THE BUDGET COMMITTEE.


  • Personnel Costs (6 employees)
    Lines 8103-8136, + 8352 $364,011
  • Supplies, maintenance, etc.
    Lines 8201-8335, + 8420 $67,235
  • Landfill monitoring and outside
    services, Lines 8359 + 8370 $39,992
  • 8502 BUILDINGS ( Expand
    the Recycling building ) 55,440
  • 8508 OPERATING EQUIPMENT
    (New Baler for recyclables) 45,000
  • Solid Waste Disposal
  • 8350 MATERIAL HANDLING 243,763
    (Contracted loading operation)
  • 8354 SOLID WASTE HAULING 306,360* (-> 198,720)
  • 8355 SOLID WASTE DISPOSAL 962,000* (-> 624,000)
  • 8356 CONST. & DEMO. HAULING 39,760
  • 8357 CONST. & DEMO. DISPOSAL 104,000
  • 8388 SPECIAL WASTE DISPOSAL 34,200
  • TOTAL $2,261,761(-> $1,816,121)
  • *Line items 8354 and 8355 are based on 18,500 tons. The numbers in parentheses are based on a revised estimate of 12,000 tons.
  • Estimated Revenue from
    sale of recyclables $40,000
  • This leaves a total of $2,221,761 (->$1,776,121) for the entire Solid Waste operation to be raised from citizens and taxpayers of Merrimack, by some combination of taxes and fees.
  • An important point is that 18,500 tons is an extremely conservative maximum estimate of the tonnage that will go through the TS, because it takes no account of the intentions of all large haulers ( Waste Management, BFI, etc ) to take their collections directly out of town. However, this conservative estimate is reasonably safe to use in the budget, since if those concerns do use the TS, they will pay $110 per ton, which will more than recover the marginal expense of $81.70 per ton.
  • The tonnage estimate of 18,500 tons is split up into 7,500 from self-haulers plus 12,000 from commercial haulers.
  • The Revenue budget lists, in addition to the $40K from recyclables, an estimate of $1,320,000 from tipping fees paid on 12,000 tons @ $110 per ton by the commercial haulers ( who of course pass on this cost to their customers ).

  • Mr. Chase’s estimate for the self-haulers is 7500 tons. I view this as extremely conservative. If we use Mark Mercier’s calculation of 1.25 tons per household in his customer base, 7500 tons corresponds to 6000 households. This is only a few hundred less than the TOTAL number of single-family households in Merrimack. It would therefore require that almost all single family customers of Houle, Buckley and Mercier cancel their pickup contracts. This seems highly unlikely.
  • I personally prefer the estimates made one year ago by Chip Chesley: a total of 12,000 tons of which 6,500 would come from self-haulers. This would change the above numbers as follows.
  • 8354 SOLID WASTE HAULING 198,720
  • 8355 SOLID WASTE DISPOSAL 624,000
  • and, as noted, the net cost would go from $2,261,761 to $1,776,121
Sincerely, Norm Phillips
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Re: The FY 04-05 SW budget

Postby RBarnes » Wed Jan 07, 2004 5:19 pm

Norm, thank you for posting this information. I do have a couple questions though...

Norman Phillips wrote:However, this conservative estimate is reasonably safe to use in the budget, since if those concerns do use the TS, they will pay $110 per ton, which will more than recover the marginal expense of $81.70 per ton.


Where did the figure of $81.70 per ton come about? If you divide the total cost by the total tonnage you get different numbers...

At $2,261,761 with 18,500 tons that comes out to be $122.26 per ton.
At $1,816,121 with 12,000 tons that comes out to be $151.34 per ton.

If we take out the recycling revenue we get the following...

At $2,221,761 with 18,500 tons that comes out to be $120.10 per ton.
At $1,776,121 with 12,000 tons that comes out to be $148.01 per ton.

So as you can see the less trash taken to the TS the MORE it will cost us per ton.

I'm guessing the $81.70 is what we the town pays out for hauling and tipping and does not include the cost of running the facility. Is this correct?

Regardless of how much waste come into the facility we as a town will be paying FAR more in total for all of our solid waste expenses due to this TS.
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Postby Norman Phillips » Wed Jan 07, 2004 6:35 pm

Riock, yes, the marginal cost is the cost only for hauling and disposal, all other costs having been paid for by the assumed 12,000 or 18,500 tons.
Sincerely, Norm Phillips
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Postby RBarnes » Thu Jan 08, 2004 9:09 am

Norman Phillips wrote:Riock, yes, the marginal cost is the cost only for hauling and disposal, all other costs having been paid for by the assumed 12,000 or 18,500 tons.


So if my math is correct the base cost of the TS saying we have zero additional trash to account for is $835,721, correct?

What's even more troubling is that town officials did not use ANY of that figure when trying to calculate the tipping fee. They were only using the cost of hauling and disposing and in the most extreme cases adding in the construction costs of the building and the scale but NONE of the operational costs were even discussed. So does the town expect that we the taxpayers should cover 100% of the operational costs? From what I’m hearing and have seen so far it sounds like it.
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Postby Naticook » Thu Jan 08, 2004 3:47 pm

this is getting old
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Postby Muriel Lortie » Thu Jan 08, 2004 3:49 pm

Naticook wrote:this is getting old


It will be new when your next tax bill comes knocking at your door. :wink:
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Postby Mark Fitzgerald » Thu Jan 08, 2004 3:54 pm

Naticook,

Aside from the economics at hand, the bigger issue to MMK residents SHOULD be..................has any lesson been learned when it comes to certain activities in areas where it doesn't make sense? You now have this same issue (albeit in a slightly different form) facing you on those 170 acres at the other end of town. You have one benefit those on LR didn;t have, that being the Planning Board isn't hiding under a rock waiting for the whole thing to blow over because of politics. You should use them to your full advantage.
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Re: The FY 04-05 SW budget

Postby Ann Goldman » Thu Jan 08, 2004 4:07 pm

Norman Phillips wrote:For a firm base for discussion, here is the SW budget for 04-05. FY 04-05 SOLID WASTE BUDGET FROM THE BOS (DEC 2003), AS THEN RECOMMENDED BY THE BUDGET COMMITTEE.


  • Personnel Costs (6 employees)
    Lines 8103-8136, + 8352 $364,011


wouldn't a stop sign be cheaper?????


oops, wrong thread! :D

:wink:
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Postby RBarnes » Thu Jan 08, 2004 4:54 pm

Naticook wrote:this is getting old


The TS just opened, it's FAR from old.

But if you are tired of reading about it just ignore it. The fact you are coming here and reading AND responding tells me you are more worried the facts will slowly cause people to question this big waste of money middleman we are all paying for.

So far though it's funny to see how many of the predictions of Marks have come true while so far the TS supporters haven't been right about much.

The tipping fee has caused rates to go up so high people to look at other options (and it doesn't even cover the full cost we as a town pay per ton at the current rate). The large haulers are taking trash directly out of town driving up the cost per ton for the rest of us.
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Re: The FY 04-05 SW budget

Postby Devils Advocate » Thu Jan 08, 2004 6:28 pm

Ann Goldman wrote:
Norman Phillips wrote:For a firm base for discussion, here is the SW budget for 04-05. FY 04-05 SOLID WASTE BUDGET FROM THE BOS (DEC 2003), AS THEN RECOMMENDED BY THE BUDGET COMMITTEE.


  • Personnel Costs (6 employees)
    Lines 8103-8136, + 8352 $364,011


wouldn't a stop sign be cheaper?????


oops, wrong thread! :D

60000 per employee, sounds a little high to me for sanitation engineers. Me thinks you could hire 6 at 30k per year. And yes, a stop sign should be much cheaper.

:wink:
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