NS Purchasing - Raftelis Financial Consultant - Efland Sewer Rates Study

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iy q~~~~~ 1 ~r*'~,~ .~ ~rrf ~xs+ii EFLAND SEWER SYSTEM Proposal for Rate Study far Srnall wastewater Calection Utility INNC~VATIgN & CR~ATTVITY one of the most impottant aspects of this Study will be to integrate strategic financ%al plarming into the development of a program of rates and charges. RFC has extensive experience developing targeted financial. plans that balance a utility's (J&M and capital revenue requirements with its pricing objectives. Since such a large subsidy is being provided tv operate the ~fland System, it will be critical to evaluate the potential impacts on customers as the County moves toward making the system self sufficient. It is important to remember that this process will likely take time, requiring a phased approach that balances customer impacts with the need to generate additional revenue. It will. also be important to communicate the fundamentals of revenue cuff ciency, rate equity and rate affordability, to ensure that the County's entire customer base, including the Efland System, understand its objectives to operating a utility that is both sound fnancially and considers the broader impact on customers. FAMILIARITY WITH LOW INCOME RATE PAYERS :ft~C has successfully structured and implemented affordability prograrn.s for a number of utilities across the country including the Charlotte Mecklenburg Util%ties, Columbus V~'ater ~7orks ~Georg~.~, Portland ~W'ater Bureau ~~]regan~, Birmingham Water Works Board ~Alabaxna~ and Buffalo Water Beard ~ew York. Descriptions of these projects are provided in Relevant experience and References section. Additionally, Chapter ~7 -.A~ordabiliy of Mr. Raftelis' book, Water and Wastewater Finance and Pricin . A Com rehensive Guide, was written by Patrick Smyth, one of RFC's proposed team members. The chapter discusses affordability and related polices and programs, and provides case studies. DATA REQUEST LIST The prelim.in,ary information required for thus Study is provided in the list below. A formal. data request list will be submitted to the Caunty prior to the Project ~.ick Off meeting It is possible that additional data, will be requested as the project progresses. Where possible, detailed data should be provided in digataJ. spreadsheet format ~ ~ } to allow for efficient data manipulation. The County is encouraged tv contact RFC with any questions regarding the data request list. • Financial Polities • Sewer Master Plan. • Budgets for the three :most recent f scat years • Audited f nancial. statements for the three most recent years • Summ~.rized annual demand data for the Efland System far the three most recent years l~l • Up-to~date debt service schedules allocated to the Ffland System. ~ • Number of customers, by class and meter sizes ~J • Five-year capital improvement plan ~ • Capital funding plan, if available • Documentation of ut~aity fnancial policies • Bond (Jfficial. Statements, including debt service coverage requirements ONSULTANTS, NC.11