Item 004 - ARR FY26 Forecast Presentation — original pdf

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FY2026-2030 Forecast Presentation May 14, 2025 April 14, 2021 Presentation Topics • ZWAC Priorities • Department Overview - Key Performance Metrics • Rate Development • FY26 Department Forecast • Residential Rates Forecast • CIP Highlights • Budget Timeline ZWAC PRIORITIES Facilities • Transfer Station – Feasibility Study Complete • Service Center – Northeast Service Center Breaking Ground Fleet • Electrification – 1st Fully Electric Rear-Loader Purchased; Fleet electrification study • Additional Vehicles – Continued Investment; Fleet Study Planned • Efficiencies – Route automation; Rubicon; On-Demand Services Staff • Compensation – Pay Grade Increase in FY2025 for Operator Positions • Staffing Levels – Organizational Development ZWAC PRIORITIES Compliance • Policies – City Code and Administrative Rule Changes Litter Abatement • Dedicated Teams for Creek Cleanup and Homeless Encampments • Illegal Dumping – Coordinate with COA Compliance team • On-demand service offering Department Overview Key Performance Measure FY22 Actuals FY23 Actuals FY24 Actuals FY25 Amended Lost Time Injury Rate Per the Equivalent of 100 Employees .87 1.22 4.25 .75 Percentage of Combined Residential Collection Services Collected On-Time Estimated Percentage of Curbside Collected Materials Diverted from Landfills by ARR Percentage of URO-Affected Properties Reporting Access to Recycling for Employees and Tenants 99.85 99.82 99.82 100.00 38.32 63.42 36.55 40.00 84.56 62.30 59.29 60.00 Rate Development Goal: Rates/fees cover total Cost of Service Customers Direct + Indirect Expenses Cost of Service Revenue Offsets Cost of Service Components Direct + Indirect Expenses • Payroll Costs (D) • Fleet Management Costs (D) • Administrative & Staff Support (I) • Citywide Support Costs (I) Revenue Offset • Single Stream Recycling Revenue • Extra Garbage Customers • Projected Customer Count Five-Year Financial Forecast FY 2025 Budget $134.5 M $200.0 Cost Drivers $9.0 M New Invest. $0.6 M FY 2026 Forecast $144.1 M Forecast 161.4 166.6 171.7 $150.0 $134.5 144.1 149.8 $100.0 $50.0 $0.0 $38.85 11.7 $40.40 13.4 $41.60 12.4 $43.65 13.1 $44.60 $45.50 12.6 12.8 2025 Budget 2026 Forecast 2027 Forecast 2028 Forecast 2029 Forecast 2030 Forecast Budget ($ millions) CIP ($ millions) Typical Rate Payer ∗ Typical Rate Payer data reflects monthly residential rate in dollars Base Forecast Highlights  28 new positions to account for customer growth  $4.10 Base Fee increase  $0.60 Residential Clean Community Fee increase  $1.95 increase for the 24- through 64-gallon trash carts; $17.25 increase for 96-gallon trash carts CLEAN COMMUNITY FEE 2025 2026 2027 2028 2029 2030 ARR Residential $ 5.45 $ 5.70 $ 5.70 $ 6.00 $ 6.00 $ 6.05 AMENDED FORECAST PLANNED FORECAST FORECAST FORECAST BASE FEE CART FEES $ 21.90 $ 22.85 $ 23.40 $ 25.15 $ 25.50 $ 26.00 Small Res 24-gal $ 4.30 $ 4.45 $ 4.70 $ 4.70 $ 4.90 $ 5.05 Medium Res 32-gallon $ 5.75 $ 5.90 $ 6.25 $ 6.25 $ 6.55 $ 6.70 Large Res 64-gallon $ 11.50 $ 11.85 $ 12.50 $ 12.50 $ 13.10 $ 13.45 Extra-Large Res 96-gallon $ 36.50 $ 40.30 $ 41.30 $ 49.45 $ 50.90 $ 53.75 TYPICAL RESIDENTIAL RATEPAYER CCF+ Base fees + Large Cart $ 38.85 $ 40.40 $ 41.60 $ 43.65 $ 44.60 $ 45.50 Forecast Residential Rates Five-Year Forecast Fund Summary Projects by Category Vehicles and equipment Landfill Improvements Buildings and Improvements FY26 Estimated Spending Plan $13.4 million $0.0 million $0.0 million FY 2026 Estimated Appropriation: $13.4 million FY 2026 Estimated Spending Plan: $13.4 million CIP Forecast Highlights • Northeast Service Center • Groundbreaking – Fall ‘25 • Estimated Annual Debt Service by FY28 is $8.7M • Managed by COA Public Facilities Corporation Budget Timeline • April 8, 2025 Financial Forecast • May 9, 2025 Proposed Budget Due • July 15, 2025 Proposed Budget to Council • July/Aug Dates Council Worksessions • August 13-15, 2025 Budget & Tax Rate Readings Questions