NS Purchasing - Raftelis Financial Consultant - Efland Sewer Rates Study

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ai ~~f*xr. ~ ~~~yrr ~`rr! txr~~~Fr EF~A~D SEUI~ER SYSTEM Proposal far Rata Study far Sma Wast~~rat~r Col~~ctior~ Utility undertake its Capital Improvement Program.. In order to generate th.e revenues needed to address pro jected increases in operating cons and debt service cons, the City deeded to review and update their previous water and wastewater utility rate structure. The financial planning model developed by RFC incorporated the City's intensive capital am.pxoveament plan. and was structured so that the City could use the model to evaluate revenue impacts under various scenarios. Since July 20x0, RFC has updated the model annually for the City of oxford to ensure that the City has the revenue sufficiency needed to continue to perform its needed capital improvements. RFC is currently performing its FY 2DOG rate update for the City. PROJECT RETAILS Town of Cary, North Carolina Cost of Service Study RFC developed a f ve-year water financial planning and rate model for the Public works and Rate Study ~~~ Department of the Town of Cary ~"Town"}. The project included a review of cost Band Feasibility Rate Made! allocations between water and sewer to ensure that neither utility was subsidizing the other. Impact Fee Anew water rate s~ucture was recommended based vn a three-dered residential rate to REFERENCE encourage conservation. The Town was Alarming significant capital expenditures ~. the near Ms. Karen Mills future to expand the water treatment plant and to accommodate a high rate of growth in Finance Director customers and demand. The model has been used to evaluate rate impacts of alte~aative Town of Cary 318 N. Academy Street financing plans. In addition, the project involved development of updated and cost justified Cary, NC 27512 development fees for waxer, sewer, streets, and recreation facilities. Both the proposed rate Phone: (9~9) ~6g~4~~0 structures and development fees were designed to assist the Town m. managin-g growth more effectively. The original engagement took approximately four months and was completed in July 1998. Since that time, RFC has also assisted in the development of a water conservation na.aster plan and utilized the crate model to generate forecasts for bond feasib~.ity studies for inclusion ifl Ufficial Statements issued in 24Di and 20x4 for approximately $l9 million and $2G million, respectively. Finally, RFC helped the Town develop water and sewer impact fees. PROJECT DETAILS Meuse Regional water & Sewer Authority, North Carolina Feasibility Study ~C recentl assisted the Meuse Re 'oval water & Sewer Authori "1vRwASA" in y ~ ~~ ~ REFERENCE evaluating the financial feasibility of the proposed construction of a 20.0 naiilian gallon per Mr. Harold Herring day ~"MGD"} Regional Surface water Treatment Plaaat ~"wTP"} and associated distribution Facecuhve Director Neese Regional Water & Sower system. The NRwASA was created in 2040 to address the State of North Carolina's Authority mandate to limit future ground water withdrawals from the Black Greek and tipper Cape 327 N. Queen St., Suite 121 Fear aquifers by approximately 15 muricipalifies in Lenoir County, Pitt County, and Greene Kinston, NC 28581 Phone: ~919~ 48~3~Z County. As a start up regional water unity, the fua.ancing plan. for the project incorporated approximately $70.75 million in USDA Rural Development Loans and approximately $2G.34 million ha. SRF Loans issued to pay a portion of the costs to construct the water system. The remaining project fiands were provided through various grant funding sources x$34.9 million} and member contributions ~$G.275 mi~%on}. The report focused on the fi~aancial feasib~.aty of the NRwASA as a going concern dufing the construction of the water system assets and ONSULTANTS, NC 15I