NS Purchasing - Raftelis Financial Consultant - Efland Sewer Rates Study

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ao ~0`~~ic 1 ~•f+~ r EFLAND SEwE~ SYSTEM Proposal for Rafe Study for Smal! wastewafier Callec~ion U~ilit}r calculate various rnisce~laneous utility fees, including public and private fire protection charges and water turn on services. PROJECT DETAILS ~Jurham Cowdty, ~'axth Ca~ro~ia.a Bond Feasibiiity For Durham County ~"County"~, RFC prepared a financial. feasibility study for the Rate ~°del issuance of approximately X25 million in revenue bonds, the first such issuance for REFERENCE Durham County. A rate model developed by RFC earlier in 2oa2 was used to project Mr. Crack Hill wastewater rates in the feasibility study based on the proposed bond issue. The proceeds Division Manage Durham County of the bond issue were allocated to a portion of the construcd.on cost of a new wastewater 120 E, Parrish Street, Suite 110 treatment plant to replace the lone existing plant in the County's Enterprise System. The Durham, NC 27701 stud included a Service A eernent between the Coup and the Town of C ,where Phone. ~g19~ 560.7992 y ~ ~ ~ Cary would use up to four MGD of treatment capacity and in return. pay an C)&M Charge and a portion of the debt service of the bonds through a Capital Charge. The resulting .rates from the rate model and other financial. data regarding the five-year forecast period are incorporated into a bond feasibility model and report. PROJECT DETAILS City of Buria%agto~n, Na~rtb. Caxoli~a.a Rate Study ~, May ZCD3, the City of Burlington ~"Cit~'} engaged RFC to perform a water and REFERENCE wastewater rate and financial. planning, study. The key deliverable of the study was the Frank Hake developn~.ent of a rate and financial plarming model that would be used to evaluate various Revenue Collections Manager alterations of the current rate structure. The City had had difficulty reaching demand City of Burlington P.o. Box 1358 pro jecdons with the closing of major industrial. users witlaha. past years. Since th.e City had 425 S, Lexington Avenue sore than sufficient water supply, its primary mvtivativn was to increase usage and Burlington, NC 27216 phone; ~336~ ~2Z*525 revenue. Recent upgrades to the system and expansion along with the loss of uadustty had left the enterprise fund for water operating at a defiat for the past two pears forting it to be subsidized by Cite reserves and the sewer enterprise fund to make up the revenue shortfall. As part of the study, the City was interested in evaluating opportunities to revise and update the current water and sewer rates; to create self sufficiency of both the water and sewer utility, to provide for increased equity among classes of custommers and to place greater emphasis an promoting water sales. The City was interested in improving their financial and capital plarmin.g capabilities by developing rates in the context of a 10 to ~ 5 year f ~nan..cial forecast. n addirion, the City requested that RFC evaluate the current level of impact fees and assessments and detearamine a more appropriate methodology for calculating these fees resulting in revised cost justified development impact fees. PROJECT DETAILS City of I]xford, Nom Caroliuna Rate Study In July 2oU4, the City of Oxford retained RFC to develop a comprehensive financial Bond Feasibility planning and rate model to evaluate revenue cuff ciency for both the water and wastewater REFERENCE utilities. The City of C)xford was anticipating a sigJuficant increase in growth due tv its Larry Thomas Public works Director proxirrvty to the Raleigh-Durham area. The growth was expected tv be both residential City of oxford and industrial. customers. Due to the expected growth in the area and the need for P.Q. Sox 1301 williamsbora Street renewal and replacement of assets, the City anticipated scant financing needs to Dxford, NC 27565 P one; (91 } 603.1 ~ 0 14 RAF"I"ELIS FINANCIAE C~NSUI.TANTS, INC.