1. Scope of Work/Specifications The Village of Lisle services approximately 6,200 water and sewer customers. Water is received through the DuPage Water Commission, and sewage is sent to DuPage County for treatment. The Village also delivers water purchased by the Illinois-American Water Company to the Illinois-American system. The current Village system capacity is 10.8 million gallons per day, with an average daily demand of 2.7 MGD. Water and sewer charges are accounted for and reported as an enterprise fund of the Village. The Village recovers its costs through a service charge based on meter size, along with a volumetric rate charge ($ per 1,000 gallons). Commercial and multi-family customers are billed monthly, and single-family residential customers are billed every other month. Rates are periodically reviewed to ensure they cover future estimated operating costs along with planned capital improvements to the water and sewer infrastructure of the Village as presented in the most recent 5-year capital improvement plan. The Village now seeks a professional rate study to guide future policy and rate-setting decisions. 2. Objectives The primary objectives of the Water and Sewer Rate Study are: 1. Evaluate current water and sewer rates, and revenues. 2. Assess projected operating and capital expenses, including system maintenance and replacement needs. 3. Ensure rates provide adequate funding for reserves, and long-term financial stability. 4. Provide a multi-year financial model and phased rate adjustment plan. 3. Scope of Services The Village of Lisle is requesting proposals from qualified firms to conduct a comprehensive financial analysis and rate study for the Village’s Water and Sewer Fund. The selected consultant will be expected to perform the following services: 1. Data Collection and Review • Review historical financial records, budgets, billing data, and capital improvement plans. • Evaluate customer usage trends. 2. Financial Analysis • Develop a cost-of-service analysis for both water and sewer systems. • Identify revenue requirements to meet operating and capital needs. • Evaluate adequacy of reserves. • Prepare a five-year forecast of revenues, operation and maintenance expenses and capital improvements. 3. Rate Structure Evaluation • Assess current rate structure. • Evaluate system development charges and connection fees. 4. Comparative Benchmarking • Compare Village rates with neighboring and similar-sized communities. 5. Recommendations • Provide rate adjustment recommendations to fund estimated operating and capital expenditures for the next five years. • Provide options for phased implementation of rate changes. • Provide annual targets for fund balance. • Present findings in a clear, public-friendly format. 6. Presentations and Deliverables • Provide interim updates to staff. • Provide draft report to staff. Prior to finalizing the report, the Consultant shall address any comments and/or suggestions on the final report. • Present the final report at a Village Board meeting. • Deliver a final written report, including financial model spreadsheets.
