Phase 1 includes the following: 1. Review the City’s historical operating trends and how the City performed on various key financial metrics including debt service coverage and fund balance levels. 2. Highlight the City’s current rate structure, historic rate structure, and the impacts to typical customers. 3. Review the City’s covenants and conditions on currently outstanding debt including but not limited to rate covenants, additional bonds tests, and debt service reserve requirements. 4. Create a financial model/multi-year pro-forma of the City’s Water and Sewer Fund including operating revenue and expenditures, capital expenditures, and outstanding debt. 5. Utilize the Finance model to analyze the City’s Water and Sewer Fund’s financial health and ensure the system is self-supporting while also funding the capital needs which would include the necessary revenue increases (multi-year if necessary) in the fund. 6. Evaluate the City’s Capital Improvement plan and consider the impact of such projects, including reviewing the potential financing options available to the City and analyze various potential debt service repayment structures under each option. 7. Present findings, in person, to staff and the City Council. Phase 2 includes the following: 1. Review the City’s current rate structure and model the potential impacts of changing volumetric vs. fixed, inside City vs. outside City, and water vs. sewer. 2. Peer comparison analysis of average utility bills 3. Present findings, in person, to Staff and Council.
