Agenda - 06-12-2007-4gg - Laserfiche WebLink

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~~ . s ~ ~f Cap' ~~, EF~AND SEWER SYSTEM Proposal for Rate Study for Small Wastewater Collection Utility INNOVATION & CREATIVITY One of the most important aspects of this Study will be to integrate strategic .financial. planning into the development of a program of rates and charges. RFC has extensive experience developing targeted financial plans that balance a utility's O&M and capital revenue requirements with its pricing objectives. Since such a large subsidy is being provided to operate the Efland 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 sufficiency, 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 financially and considers the broader impact on customers. FAMILIARITY WITH LOW INCOME RATE PAYERS RFC has successfully structured and implemented affordability programs for a number of utilities across the country including the Charlotte Mecklenburg Utilities, Columbus Water Works (Georgia), Portland Water Bureau (Oregon), Birmingham Water Works Board (Alabama) and Buffalo Water Board (New York). Descriptions of these projects are provided in Relevant Experience and References section. Additionally, Chapter 17-Affordability of Mr. Raftelis' book, Water and Wastewater Finance and Pricing. A Comprehensive Guide. was written by Patrick Smyth, one of RFC's proposed team members. The chapter discusses affordability and related policies and programs, and provides case studies. DATA REQUEST LIST The preliminary information required for this Study is provided in the list below. A formal data request list will. be submitted to the County prior to the Project Kick-Off meeting It is possible that additional data will be requested as the project progresses. Where possible, detailed data should be provided in digital spreadsheet format (®) to allow for efficient data manipulation. The County is encouraged to contact RFC with any questions regarding the data request list • Financial. Policies • Sewer Master Plan • Budgets for the three most recent fiscal years • Audited financial statements for the three most recent years St~mmari7ed annual demand data for the Efland System for the three most recent years • Up-to-date debt service schedules allocated to the Efland System • Number of customers, by class and meter sizes • Five-year capital improvement plan • Capital funding plan, if available • Documentation of utility financial policies • Bond Official Statements, including debt service coverage requirements CONSULTANTS, NC.11