2016-03-07 General Committee - Item 2 - Waste Management PBA Final Report - ATTACHMENT 1

Figure 2.2: Operating Revenue Sources
                 1.4% 0.6%
       17.2%
                                             Utility Charges

                                             Fees & Other
                                             Charges
                                             Internal Sales

                                             Community Service
                                             Obligations
                              80.7%




2.7      Operating Expenditure
Total operating expenses for the business in 2015/16 are $11 million. Significant expenditure items
include materials and services of $8.2 million, employee costs of $0.6 million, depreciation costs of
$0.5 million and corporate overhead costs of $1.1 million.

Figure 2.3: Operating Expenditure Sources
                 4.6%
         10.1%
                                             Employee Benefits

  5.0%                                5.7%   Materials & Services

                                             Depreciation

                                             Internal Expenditure

                                             Competitive
                                             Neutrality
                  74.5%



2.8      Competition and Pricing
Waste collection charges are based on user pays principles and are levied on all properties
receiving a general waste and recycling service. The collection service includes a weekly general
waste service and a fortnightly recycling service. The 2015/16 annual charge for the service is
$275.00 for one 240L refuse and one 240L recycling bin. The business also offers an optional
fortnightly green waste collection service for customers. The current charge for this service is
$65.00 per 240L bin. Liquid waste collection services are also provided for approximately 78
customers in the shire with waste holding tanks. Charges for this service are also users pays
based according to the frequency of required services.
Collection services in the shire are generally non-competitive in nature, with the business providing
a monopoly service for all standard general waste and recycling bin collections in accordance with
the provisions contained in the Local Government Act 1993. The business also levies commercial


Waste Management Public Benefit Assessment                                                   Page 12