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Crowe Horwath Mr. Steven Bocian Page 14 December 23, 2013 Impact(s): Decrease in fuel and oil costs in CY 2013 by$56,017 and in CY 2014 by$61,387. Legal and Accounting PGS projected legal and accounting expenditures in CY 2013 and CY 2014 by applying a 3.00 percent CPI index to the prior year's expense.We believe a more reasonable approach is to maintain the methodology used for other cost categories.We estimated first half of CY 2013 expenses by doubling actual legal and accounting expenses from the first three months of the year, and applied the annual CPI index to the second half of the year.We estimated CY 2014 expenses by applying the full annual CPI index to the 2013 estimate. Impact(s): Decrease in legal and accounting costs in CY 2013 by$52,943 and in CY 2014 by$56,478. Taxes and Licenses PGS estimated payroll tax expenses by calculating the ratio of payroll taxes to total wages in CY 2012 and applying this ratio to projected wages in CY 2013 and 2014. PGS's assumed the payroll tax percentage was 7.28 percent for CY 2013($5,153,233 in wages and$374,989 in payroll taxes)and also for CY 2014($5,327,201 in wages and $387,774 in payroll taxes). We calculated a slightly higher payroll tax percentage of 7.35 percent. Our calculation was based on PGS' reported CY 2012 wages of$4,905,141 and payroll taxes of$360,559.Applying this adjusted percentage to the Crowe's estimates for total payroll yields slightly higher expected payroll tax expenditures for both CY 2013 and CY 2014. We also made slight adjustments to DMV licenses, property taxes,and other taxes and fees based on our adjusted CPI index. Impact(s): Ei Increase in taxes and licenses for CY 2013 by$2,386 and decrease in taxes and licenses for CY 2014 by$1,565. Other Expense PGS projected CY 2013 other expenses by line item resulting in relatively no change in the category from CY 2012. PGS projected the CY 2014 costs by applying its CPI index to the CY 2013 estimate.We accepted this methodology but reduced estimates to reflect our adjusted CPI index assumption. Impact(s): 0 Decrease in other expenses$117 in CY 2014. Landfill Maintenance and Closure PGS projected landfill maintenance and closure expenses in CY 2013 and CY 2014 by applying a 3.00 percent CPI index to the prior year's expense.We accepted this methodology but used our adjusted CPI index of 2.56 percent for both years.