Rate Setting Design
Determining a rate for your PAYT program can be a challenge. A rate that is too high might cause community dissent, while a rate that is too low sometimes creates financial problems. Rate Structure Design: Setting Rates for a Pay-As-You-Throw Program is an essential tool created to help local officials design a rate to strike the necessary balance.
The rate setting booklet helps decision-makers understand and work through the different approaches to developing a pricing structure for their PAYT program. Section I outlines the general steps involved in rate setting, or rate structure design, and discusses the three types of PAYT pricing structures (proportional, variable, and multi-tiered) in detail. Then, in Sections II and III, readers can learn about two different methods for setting PAYT rates: using data from comparable communities and building from your community's own data using a targeted six-step process. The booklet also points out things to consider when refining your PAYT rate. Through step-by-step sample calculations, case studies, and useful tips, this resource helps takes the guesswork out of the potentially challenging process of setting PAYT rates.