The major tasks of the study include the following: • Identify and document policy issues affecting the establishment of rates and fees for water and wastewater services; • Evaluate the ACSA “growth paying for growth” approach and make recommendations; • Determine the cost of service on a cash basis, identify revenue requirements and review the current rate structure as to consistency with the ACSA’s goals and objectives; • Review, and if necessary, update, the financial rate models; • Review ACSA’s four-tier residential rate structure and provide possible recommendations/alternatives; • Review and consider affordability of rates, especially for low-income households and provide recommendations; • Review pertinent state legislation that may impact the connection fee calculations; propose solutions and/or recommendations if this legislation or similar takes effect; • Develop or update the ACSA financial model that can be used by ACSA staff to update annually for budget and rate decision making; • Review the methodology and calculation of the ACSA connection fees and how changes to state code could impact; • Review and recommend adjustments to the ACSA Financial Policies; • Recommend and develop rate projections for the FY 2027 Budget; review/recommend replacement cost of assets versus planned reinvestment; develop financial plan to eliminate peaks in reinvestment; • Review the rate impact of an expanded CIP program (including RWSA CIP) and evaluate alternatives to “cash funding” capital projects, namely issuing debt and how this impacts proposed rate recommendations over the next 5-10 years. • Review and provide recommendations to appropriate financial reserve levels/balances, compare to comparable regional utilities, and provide recommendations for use; • Provide comprehensive comparison of ACSA rates to comparable regional utilities; • Due date for draft report of January 9, 2026.
