Section 845-RICR-00-00-4.5 - ProcedureA. Beginning September 1, 2016 and every other year thereafter, the following procedure shall be used to determine the Municipal Disposal Fee to be charged in the two subsequent fiscal years beginning July 1, noting that a Municipal Disposal Fee increase is warranted only when the Corporation's projected cash balance falls below the minimum cash balance requirement: 1. The Corporation shall prepare a five-year financial projection of its cash flows and balances no later than October 1. This five-year projection shall use as the baseline municipal disposal fee the prevailing municipal disposal fee in effect at the time of the analysis; the baseline fee shall carry through all five years of the projection. The projection shall include full funding of landfill closure/post-closure liabilities.2. If a cash deficit shows in either of the first two years of the projection period then the formula described in § 4.5(A)(3) of this Part below will be used to determine the new Municipal Disposal Fee to be effective for those two fiscal years. The disposal fee as derived shall become the new baseline fee, against which further determinations of the need for future increases shall be measured. If a cash surplus is projected in each of the first two years of the projection then the municipal disposal fee will not be adjusted, and the baseline fee in effect at the time of the projection analysis shall be the municipal disposal fee effective for the subsequent two fiscal years.3. The projected Municipal Price per ton shall be calculated for each year of the five-year projections using the following formula or as amended by future rulemaking: a. {Operating Cash Expenses + Debt Service + Normalized Capital and Capping + Extraordinary Cash Expenses} - Recycling Cash Revenue = Total Landfill Cash Expensesb. Total Landfill Cash Expenses - Commercial Revenue = Cash Required from Municipal Tip Feesc. Cash Required from Municipal Tip Fees / Target Municipal Tonnage = Projected Municipal Price per Ton4. The Municipal Disposal Fee shall be equal to the arithmetic average of the projected Municipal Price per Ton of the first two years of the five-year projection period, rounded to the nearest whole dollar amount. Projection years three through five shall use the set fee for planning and directional purposes only. The adjustments to the Municipal Disposal Fee will be approved and authorized by the Corporation's Board of Commissioners pursuant to R.I. Gen. Laws § 23-19-10(10) as amended, and communicated to municipalities no later than December 31, for implementation the following July 1.5. All other fees shall be evaluated annually (see § 4.6 of this Part).6. Pursuant to R.I. Gen. Laws § 23-19-31 as amended, recyclable materials as determined by the Department of Environmental Management shall be accepted for processing by the Corporation without a disposal fee, with the exception of those materials deemed prohibitive or contaminated, as described in § 4.6(B) of this Part.845 R.I. Code R. 845-RICR-00-00-4.5