1. Project Initiation and Data Review a. Conduct a project kick-off meeting with City staff. b. Collect and review City-provided data, including historic revenues/expenses, billing data, projected budgets, and capital improvement plans. c. Interview City officials to understand financial, operational, and regulatory context. d. Provide a preliminary comparative review of City rates against peer communities. 2. Revenue Requirements and Financial Planning a. Develop long-range financial plans (5–10 years). b. Forecast revenues under existing rates, operating and capital expenses, and cash flow. c. Recommend revenue adjustments necessary to maintain financial health, including debt service coverage and reserve policies. 3. Rate and Fee Calculations a. Calculate water and sewer rate alternatives under current structures and consider modifications to the fixed/variable charge mix. b. Assess customer impacts and benchmark against peer utilities. 4. Financial and Rate Model Development a. Deliver a user-friendly Microsoft Excel model to City staff, capable of multiyear forecasts, sensitivity analysis, and scenario planning. b. Provide training on model use and documentation. 5. Reports and Presentations a. Deliver draft and final Water & Sewer Rate Study reports. b. Provide draft and final presentation materials. c. Present study results to the City Council in a public meeting.
