Raftelis is completing a solid waste rate study and service delivery model examination for the City of Memphis (City) Solid Waste Management Department (Department). The Solid Waste Management Department provides services to more than 200,000 customers within the City for garbage, recycling, and outside trash collections. The Department is experiencing increased costs and will be facing a revenue shortage and depletion of reserves in the near future as a result. Due to customer demand and the presence of blight throughout the City, the Department increased its service level agreement, providing more frequent outside-cart trash collection. Raftelis worked with City staff to examine costs and develop rates to increase revenue while also providing options for an increase in service level.
This project included completing a benchmarking study, analyzing the Department’s operational costs and revenue, and developing a rate model and supporting documentation for the Department. Development of the rate model included updating the program’s baseline costs, developing and refining alternatives to that baseline cost, and developing full cost recovery rates in support of those alternatives.
Raftelis has supported the City with subsequent engagements, updating the rate model, and developing scenarios related to a potential rate structure change, rate change, and service provision changes for an outsourced collection area for the City.