1 FY09 Diversion Rates

2 University City

3 Implementation - Feasibility 5,579 (74%) of University City properties receive municipal trash service $118 million (assessed value) $9.75 million total taxes paid (.0825 millage) They pay $4.1 million in property taxes (42% city share) $102 Philadelphia Sanitation budget $1.32 million (1.3% UC Share) They pay $1.32 million of this to the sanitation department Trash is 13.5% of UC tax burden, or $236 per “average” household

4 10,000 tons of waste are generated by University City every year. The average UC household generates 1.8 tons of trash This equals between 2 and 3 32-gallon can every week: Each can is billed at $9.20 / week Equal $110 / year Equals between $220 - $330 in user fees for an “average” property This will decrease as recycling rates increase. Most households will break even in the second year of PAYT, and save money thereafter. Implementation - Feasibility

5 Implementation: FY2010 Pass legislation moving the fee for trash removal to each households PGW utility bill. Consolidate University City into one sanitation district Repurpose the existing city recycling campaigns Coordinate the many offices that Philadelphia is fortunate to have already working on these problems Register University City residents Begin retailing bags through corner stores

6 Agenda

7

8 Implementation: FY2010 Pass legislation moving the fee for trash removal to each households PGW utility bill. Consolidate University City into one sanitation district Repurpose the existing city recycling campaigns Coordinate the many offices that Philadelphia is fortunate to have already working on these problems Register University City residents Begin retailing bags through corner stores

9 AssumptionsFY2009FY2010FY2011FY2012FY2013 FY2015 Total Waste Tipping Fee $ 65 $ 67 $ 69 $ 71 $ 72 $ 75 20% Premium $ - $ 13 $ 14 $ 15 Recycling Revenue $ (26) $ (10) $ - Fixed Cost / Ton [1] $ 62 $ 64 $ 66 $ 68 $ 70 $ 75 With PAYT Diversion Rate10%12%20%30%35%50% Waste Recycled Waste Cost $ 635,895 $ 621,764 $ 578,880 $ 516,810 $ 489,190 $ 375,000 plus Fixed Costs $ 673,940 $ 689,688 $ 703,801 $ 718,140 $ 750,000 Recycling Cost $ 28,262 $ 33,914 $ 21,600 $ - PAYT Sanitation $1,338,097 $1,329,618 $ 1,290,168 $ 1,220,611 $ 1,207,330 $ 1,125,000 Program Savings $ - $ 8,479 $ 49,248 $ 118,128 $ 135,468 $ 225,000 Premium $ - $ 115,776 $ 103,362 $ 97,838 $ 75,000 Net Revenue $ - $ 8,479 $ 165,024 $ 221,490 $ 233,306 $ 300,000

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12 AssumptionsFY2009FY2010FY2011FY2012FY2013 FY2015 Total Waste Tipping Fee $ 65 $ 67 $ 69 $ 71 $ 72 $ 75 20% Premium $ - $ 13 $ 14 $ 15 Recycling Revenue $ (26) $ (10) $ - Fixed Cost / Ton [1] $ 62 $ 64 $ 66 $ 68 $ 70 $ 75 With PAYT Diversion Rate10%12%20%30%35%50% Waste Recycled Waste Cost $ 635,895 $ 621,764 $ 578,880 $ 516,810 $ 489,190 $ 375,000 plus Fixed Costs $ 673,940 $ 689,688 $ 703,801 $ 718,140 $ 750,000 Recycling Cost $ 28,262 $ 33,914 $ 21,600 $ - PAYT Sanitation $1,338,097 $1,329,618 $ 1,290,168 $ 1,220,611 $ 1,207,330 $ 1,125,000 Program Savings $ - $ 8,479 $ 49,248 $ 118,128 $ 135,468 $ 225,000 Premium $ - $ 115,776 $ 103,362 $ 97,838 $ 75,000 Net Revenue $ - $ 8,479 $ 165,024 $ 221,490 $ 233,306 $ 300,000

13 PAYT Savings PAYT Current Program Cost Prep Year – 12% 1 st 20%2 nd 30% 5 th 50%

14 FY09 Diversion Rates

15 $0.00