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Task 3 - Project Revenue Requirements The "revenue requirement" is just what it implies. Itis the total amount of money the County must collect to pay District expenditures needed to provide its targeted levels of service while meeting its financial requirements (e.g.,funding debt service obligations, maintaining coverage ratios, and maintaining fund balance requirements, etc.). The revenue requirement also will include long-term capital expenditures that are paid out of current rates and not paid by bond proceeds, if any. The revenue requirement at the time of ratemaking will be determined by annualizing the fiscal year-to-date cash expenditures. Additionally, adjustments would be made by SCS for any significant non-recurring expenditures (e.g., one-time payments at the end of the fiscal year). Revenue requirements for future years (e.g., 10 years through 2025) would then be projected by applying anticipated changes in the expenditures to the current revenue requirement. These changes may include such items as: inflation, increases in worker' wages, fuel adjustments, more strict requirements from regulating agencies, and leachate treatment adjustments. They may also include expected costs for new projects and new programs. In addition to projected cash-expenditures, any adjustments will be made to account for required increases, if any, in fund balance or County financial policies. Task 4-Design New Tipping Fees and Assessments After completion of Task 3, SCS will finalize the Pro Forma Model to enable development of rate designs (e.g., tipping fee and waste generation units (WGU) pursuant to the District's Resolution No. 95-1). There are various issues with the Resolution No. 95-1 (vacancy_ credits, recycling credits, and deviation policies) as well as the assessment categories themselves. SCS will evaluate waste generation rates for various land use categories, as needed. SCS will analyze these issues and prepare recommendations for consideration by the District. SCS will prepare three sensitivity runs of the Model (e.g., different estimated inflation rates, waste generation growth, and recycling rates) for possible recommended rates and assessments by the District. Task 5-Draft and Final Reports Once these steps outlined above are completed, SCS will then prepare a Draft Report of the conceptual design of the system rate study. The Draft Rate Study will be issued to the County for review and comment. Based on comments received, SCS will then modify the Draft Rate Study Report and prepare a Final Report. SCS staff will prepare a PowerPoint presentation summarizing the results of the study and be available for attendance at a Board of County Commissioners meeting to discuss the recommended rates and assessments.