Create/Review Operational Budget
We’ve been developing and reviewing waste facility budgets for over 20 years, and we know operations. Our proprietary LFCOST model contains several hundred line items that are thoroughly cross-linked. Don’t operate
blindly in these difficult economic times.
Let us build a practical budget for your facility.
A detailed, site-specific operating budget is vital to getting a balanced perspective of where most of the money is spent. For example, how do labor costs compare to equipment costs? Are your tipping fees covering all your costs including future replacement costs, if necessary? If you have to cut 10 percent off your operating costs, which 10 percent will you cut? When you compare your budget to actual operating costs are there any discrepancies that can be remedied by improving efficiency? A detailed operating budget can answer these questions and more, by examining capitol costs and operating costs.
The capital cost portion of a landfill budget accounts for costs associated with installing liner, closing portions of the landfill, constructing buildings, etc. The capital cost component shows when the capital costs will occur, as well as the amount of each cost. Obviously, in order to be effective and realistic, the capital costs must be tied directly to the long-term sequence plan and the annual access plan. In order to quantify a site’s capital costs, we consider historical capital cost data, current price quotes, as well as client information. We then combine that information with site specific data into an interactive spreadsheet that will determine when capital costs will occur. Finally, we put it all into a calendarized (timeline) format.
The Operating Budget
The operating cost budget accounts for costs associated with day-to-day operation of the site. This component is divided into numerous sections including site development, personnel and administration, equipment maintenance, operations, training, and more. Whereas the capital cost budget component shows a broad, long-range schedule of costs, the operating cost budget component shows the operational costs in detail. This component is also set up in an interactive spreadsheet format, linking information such as equipment owning and operating costs, optimum density, and optimum cell size to basic budget calculations. As an example of the level of detail provided by a Blue Ridge budget, consider that a typical operating cost spreadsheet will have 400+ cost items.