ecomaine.org

March 15, 2018

2

FY 2020 Budget Presentation

March 21, 2019

ecomaine provides comprehensive long-term solid waste

solutions in a safe, environmentally responsible,

economically sound manner, and is a leader in raising public

awareness of sustainable waste management strategies.

ecomaine.org

Revenues down $.4 MM or 2.2% (favorable MSW and recycling tipping fees of $.5 MM and decrease of $.9 MM due to 41% decrease in recycling market rate from $47.44 to $28.03.)

Operating Expenses are expected to be down $.6 MM or 3.7%. Major reasons are 4.2% favorable spending in Waste to Energy and unused contingency of $.25 MM.

Non Cash Operating expenses up $.2 MM due to increase in depreciation expense.

Net Cash Provided by Operations of $1.7 MM, which is $.1 MM favorable to budget.

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ecomaine.org

Revenues are up $.4 MM or 2% (owner and commercial tonnage up along with a 3.5% increase in the tipping fee, electrical revenue down 5% and recycling revenue up due to processing charge to owner communities).

Operating Expenses up $.4 MM or 2.5% due to payroll and benefits resulting from annual wage adjustments and addition of staff.

Net Cash Provided by Operations is $1.63 MM, which is even with budget.

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ecomaine.org

Historical Trends

and Projections

4

Revenue, Volume, Unit Values

ecomaine.org

MSW Volume from Owner CommunitiesTons are down 14% over last 14 years but up 12% from a low of 48,021 tons in

FY 13

30,000

40,000

50,000

60,000

70,000

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

0

5

ecomaine.org

Commercial MSW Tons

30,000

40,000

50,000

60,000

70,000

80,000

90,000

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

0

6

ecomaine.org

Associate & Contract Member MSW TonsUp 335% since 2006, up 56% from FY 18

7

1,000

6,000

11,000

16,000

21,000

26,000

31,000

36,000

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

0

ecomaine.org

Spot Market MSW Tons Recent decreases are due to movement to contract tons

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

0

8

ecomaine.org

Overall Solid Waste Tons

100,000

110,000

120,000

130,000

140,000

150,000

160,000

170,000

180,000

190,000

FY0

6FY

07

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

0

9

ecomaine.org

MSW Tipping FeesDown 13% from FY 06, 7% increase from FY 14

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000FY

06

FY0

7FY

08

FY0

9FY

10

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

0

10

ecomaine.org

Electricity Sold Megawatt Hours

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000FY

06

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

0

Megawatt Hours Sold

Power Generation expected to be even with FY 18

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ecomaine.org

Electricity Sold Market Value per MWh

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

0

$/MWh

Up 16% from FY 13 low, down 38% from FY 10 peak

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ecomaine.org

Inbound Recycling TonsDown 16% from record year in FY 15

-

10,000

20,000

30,000

40,000

50,000FY

06

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

0

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ecomaine.org

Recycling - $/ Inbound Ton

$-

$20

$40

$60

$80

$100

$120

BLUE: Recycling revenue without tipping fees

RED: Additional revenue from tipping fees

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ecomaine.org

The Recycle Market – Total RevenueFY 20 Revenue will be up 52% from FY 19

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

0

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ecomaine.org

Sources of Revenue

$(2,000,000)

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

FY 11

FY 12

FY 13

FY 14

FY 15

FY 16

FY 17

FY 18

FY 19

FY 20

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ecomaine.org

Total ecomaine RevenuesDown 26% since FY 06 and up 5% since FY 15

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

FY0

6

FY0

7

FY0

8

FY0

9

FY1

0

FY1

1

FY1

2

FY1

3

FY1

4

FY1

5

FY1

6

FY1

7

FY1

8

FY1

9

FY2

017

ecomaine.org

Operating Costs

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

Landfill

Recycle

WTE

Admin

(Data excludes Contingency & Major Repairs)

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Up an average of 2.0% annually since FY 11

ecomaine.org

❖ Comparing the FY 19 Budget to

the FY 19 Forecast

❖ Comparing the FY 19 Budget to

the FY 20 Budget

❖ Comparing the FY 19 Forecast

to the FY 20 Budget

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Comparisons

ecomaine.org

❖ Comparing the FY 19 Budget to the FY 19 ForecastReduced loss by $.5 million (20%)

Revenue Expense Net

FY 19 Budget $19,014,000 $21,742,000 $ (2,728,000)

Tipping Fee Revenue – volume up 2% & average rates up 5% 240,000 240,000

Electrical Rev. – MWH down 2%, rate up 1% (41,000) (41,000)

Recycle Revenue – market rates down 33% (625,000) (625,000)

Operating Expense – down 4% overall, primarily in WTE (386,000) 386,000

Contingency – not required (250,000) 250,000

Non Cash Expenses – Primarily Depreciation 176,000 (176,000)

Other Inc./Exp. – investments (505,000) 505,000

FY 19 Forecast $18,588,000 $20,777,000 $(2,189,000)

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ecomaine.org

Comparing the FY19 Budget to FY20 BudgetThe FY 20 Loss of $2.5 million is favorable to the FY19 Budget by $.2 million

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Revenue Expense Net

FY 19 Budget $19,014,000 $21,742,000 $ (2,728,000)

MSW Revenue – Average tip fee up 4% 481,000 481,000

Electrical Revenue – market rates down 2% and MWh units down 3% (216,000) (216,000)

Recycling Revenue – tonnage down 7%, OCC down 37% and Owner Fee set to $35 109,000 109,000

Operating Expenses – up 2.5% - primarily due to payroll and benefits in all departments 436,000 (436,000)

Non Cash Expenses – depreciation 258,000 (258,000)

Other Inc./Exp. – interest (530,000) 530,000

FY 20 Budget $19,388,000 $21,906,000 ($2,518,000)

ecomaine.org

Comparing the FY19 Forecast to the FY20 BudgetThe FY 20 Loss of $2.5 million is $.3 million unfavorable to the FY19 Projected loss

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Revenue Expense Net

FY 19 Forecast $18,587,000 $20,776,000 $ (2,189,000)

MSW Revenue 240,000 240,000

Electrical Revenue – MWh’s sold down 1% and rate down 3% (175,000) (175,000)

Recycle Revenue – Owner fee set to $35/ton 735,000 735,000

Operating Expenses – unfavorable 5% due to payroll, benefits and additional positions 823,000 (823,000)

Contingency – budgeted for FY20 250,000 (250,000)

Non Cash Expenses – Depreciation 61,000 (61,000)

Other Income/Expense – Investments (5,000) 5,000

FY 20 Budget $19,387,000 $21,905,000 ($2,518,000)

ecomaine.org

Statement of Cash Balances – Key Items Cash generated from operations is down 88% ($11.7 million from FY 11), Long Term Debt Payments ($13.2 million in FY 11) have been eliminated. Major cash investments are up

$1 MM or 18%

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

Cash GeneratedDebt Repayments

Cash Used inInvesting

FY 11

FY 12

FY 13

FY 14

FY 15

FY 16

FY 17

FY 18

FY 19

FY 20

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ecomaine.org

Capital Investments – Excluding Investment Income & Sale of Assets

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

Capital Investments

FY 11

FY 12

FY 13

FY 14

FY 15

FY 16

FY 17

FY 18

FY 19

FY 20

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ecomaine.org

Capital Projects – FY 20Total $7.2 million of investment

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WTE Building – Waterproofing, Siding, Roofing and Remodeling (continued from FY19)

$2,950,000

Superheaters A & B 1,050,000

Boiler refractory (tile) 500,000

Secondary air nozzle upgrade 500,000

Sorting Equipment Upgrades 300,000

480 volt switchgear 250,000

Suspension System Repair 150,000

Replace cooling structure/valves and joints 150,000

Upgrade Nox controls 130,000

Replacement of CEM analyzers 125,000

Tipping Hall – Phase 2 of resurface 100,000

Landfill – Temporary Cover 100,000

Construct washbay 100,000

Miscellaneous 795,000

ecomaine.org

Statement of Cash Balances – Key ItemsCash balances are down 31% ($9.5 million) from the peak year of FY 17

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

Cash Balance at Yr End

Long Term Debt Balance

FY 11

FY 12

FY 13

FY 14

FY 15

FY 16

FY 17

FY 18

FY 19

FY 20

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ecomaine.org

❑ FY 20 Revenues Less Expenses are expected to be favorable to the FY 19 budget by $.2MM➢ Increase total revenue $.4MM ➢ Increase operating expenses $.4MM➢ Increase depreciation expense $.3MM➢ Increase in investment income $.5MM

❑ Budgeted Revenues for FY 20 are favorable to the FY 19 budget by 2%➢ Increase MSW revenue due to rate increase ➢ Increase recycling revenue due to $35 fee charged to owner communities➢ Significant decrease in Recycling Market Value➢ Maintain strong investment income

❑ FY 20 Expenses are unfavorable to FY 19 budget by 2.5%➢ Overall payroll and benefit increase➢ Addition of positions 1-WTE, 1-Recycling, 1 Educator and 1- Admin

❑ FY 20 Capital Expenditures will total $7.2MM, part of which is a carry over from FY19

❑ FY 20 will show a total cash decline from $26MM down to $21MM

❑ Stay the course with Recycling, consider technology improvements for recycling contamination, increase outreach to meet recycling needs, proceed with non-ferrous recovery from ash and monitor cash flows closely.

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ecomaine.org

ecomaine provides comprehensive long-term solid

waste solutions in a safe, environmentally responsible, economically sound manner,

and is a leader in raising public awareness of sustainable waste

management strategies.

Our Mission

28