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

Browse Search

~~ A 9 EFLAND SEWER SYSTEM Proposal for Rate Study for Small Wastewater Collection Utility calculate various miscellaneous utility fees, including public and private fire protection charges and water turn-on services. PROJECT DETAILS Durham Cownty, North Carolina Bond Feasibility For Durham County ("County', RFC prepared a financial feasibility study for the Rate Model issuance of approximately $25 million in revenue bonds, the first such issuance for REFERENCE Durham County. A rate model developed by RFC earlier in 2002 was used to project Mr. Chuck 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 construction 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 Bement between the Coun and the Town of C where Phone: (919) 560-7992 y ~ ~ ~~ Cary would use up to four MGD of treatment capacity and in return pay an O&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 Burlington, North Carolina Rate Study In May 2003, the City of Burlington ("City' engaged RFC to perform a water and REFERENCE wastewater rate and financial planning. study. The key deliverable of the study was the Frank Hope development of a rate and financial. planning 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 projections with the closing of major industrial users within past pears. Since the City had 425 S. Lexington Avenue more than sufficient water supply, its primacy motivation was to increase usage and Burlington, NC 27216 Phone: (336) 222-5125 revenue. Recent upgrades to the system and expansion along with the loss of industry had left the enterprise fund for water operating at a deficit for the past two years forcing it to be subsidized by City 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 customers and to place greater emphasis on promoting water sales. The City was interested in improving their financial and capital planning capabilities by developing rates in the context of a 10 to 15 year financial forecast. In addition, the City requested that RFC evaluate the current level of impact fees and assessments and determine a more appropriate methodology for calculating these fees resulting in revised cost justified development impact fees. PROJECT DETAILS City of Oxford, North Carolina Rate Study Bond Feasibility In July 2000, the City of Oxford retained RFC to develop a comprehensive financial planning and rate model to evaluate revenue sufficiency for both the water and wastewater REFERENCE utilities. The City of Oxford was anticipating a significant increase in growth due to its Larry Thomas Public Works Director proximity to the Raleigh-Durham area. The growth was expected to be both residential City of Oxford and industrial customers. Due to the expected growth in the area and the need for P.O. Box 1307 Williamsboro Street renewal and replacement of assets, the City anticipated significant financing needs to Oxford, NC 27565 one: (919) 603.1110 14 CONSULTANTS, NC.