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

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as 0`~,~`.. S~~' f u ~ ~«. r.~.~~•' EF~AND SEWER SYSTEM Proposal for Rate Study for Small Wastewater Collection Utility undertake its Capital Improvement Program. In order to generate the revenues needed to address projected increases in operating costs and debt service costs, the City decided 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 improvement plan and was structured so that the City could use the model to evaluate revenue impacts under various scenarios. Since July 2000, 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 2006 rate update for the City. PROJECT DETAILS Town of Cary, North Carolina Cost of Service Study RFC developed afive-year water financial p nning and rate model for the Public Works and Rate Study Utility Department of the Town of Cary ("Town"). The project included a review of cost Bond Feasibility Rate Model allocations between water and sewer to ensure that neither utility was subsidizing the other. Impact Fee Anew water rate structure was recommended based on a three-tiered residential rate to REFERENCE encourage conservation. The Town was planning significant capital expenditures in 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 alternative Town of Cary 316 N. Academy Street financing plans. In addition, the project involved development of updated and cost justified Cary, NC 27512 development fees for water, sewer, streets, and recreation facilities. Both the proposed rate Phone: (919) 469-4110 structures and development fees were designed to assist the Town in managing 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 master plan and utilized the rate model to generate forecasts for bond feasibility studies for inclusion in Official Statements issued in 2001 and 2004 for approximately $19 million and $26 million, respectively. Finally, RFC helped the Town develop water and sewer impact fees. PROJECT DETAILS Neuse Regional Water & Sewer Authority, North Carolina Feasibility Study RFC recently assisted the Neuse Regional Water & Sewer Authority ("NRWASA") in REFERENCE evaluating the financial feasibility of the proposed construction of a 20.0 million gallon per Mr. Harold Herring day ("MGD'~ Regional Surface Water Treatment Plant ("W'TP") and associated distribution Executive Director Neuse Regional Water & Sewer system. The NRWASA was created in 2000 to address the State of North Carolina's Authority mandate to limit future ground water withdrawals from the Black Creek and Upper Cape 327 N. Queen St., Suite 121 Fear aquifers by approximately 15 municipalities in Lenoir County, Pitt County, and Greene Kinston, NC 28501 Phone: (919) 481-4342 County. As a start up regional orates utility, the financing plan for the project incorporated approximately $70.75 million in USDA Rural Development Loans and approximately $26.34 million in SRF Loans issued to pap a portion of the costs to construct the water system. The remaining project funds were provided through various grant funding sources ($34.9 million) and member contributions ($6.275 million). The report focused on the financial feasibility of the NRWASA as a going concern during the construction of the water system assets and ONSULTANTS, NC 15,