Subject:
Title
Presentation of Water & Sewer Rate Analysis (15 Minute Presentation)
Body
EXPLANATION AND SUMMARY:
The Town engaged NewGen Strategies & Solutions, an independent utility rate consultant, to perform a comprehensive Water and Sewer Rate Analysis. The purpose of the study was to evaluate the sufficiency and equity of the Town’s current rate structure and to ensure long-term financial sustainability of the Water and Sewer Fund.
The analysis outlines the key assumptions utilized in developing the financial model, including projected operating and maintenance costs, capital improvement plan (CIP) funding requirements, debt service obligations, reserve targets, and anticipated consumption trends. The study also includes a detailed indirect cost allocation review to ensure appropriate recovery of administrative and overhead expenses attributable to the utility operations.
Based on these inputs, the consultant developed financial projections and recommended rate adjustments designed to maintain adequate fund balance levels, meet debt coverage requirements, and support planned infrastructure investments. The presentation will also provide projected customer bill impacts under the proposed rate scenarios.
This work session provides Council the opportunity to review the findings, ask questions, and provide preliminary feedback in advance of the March 14 and 16 Proposed Budget Work Sessions and the April 6 Public Hearing on the Proposed Water and Sewer Rates.