Subject:
Title
7:45 p.m. - 8:15 p.m. - Presentation on Water and Sewer Rate Study Results
Body
DATE(S) OF PRIOR COUNCIL CONSIDERATION OF THIS ISSUE:
When was contract approved
EXPLANATION AND SUMMARY:
Due to the importance of maintaining a fiscally solvent water and sewer system, the Town has been engaging an expert consultant since 2018 to review water and sewer rates and cost and revenue structure to make recommendations on future rate increases. The goal is to retain an adequate cash balance in the fund and to maintain our triple-A rated bond debt.
In FY 2022-23 the Town prepared RFP 23-19 to engage a consultant to perform a rate study and an indirect cost study for the water and sewer fund. Four firms responded, three were interviewed and the Town awarded a contract to Willdan, a nationally recognized expert in water and sewer system consulting.
The first study, an indirect cost study, quantified the extent to which the general fund lends services to the water and sewer fund. The result of this indirect cost study is the support for a transfer from the water and sewer fund to the general fund to pay for those services. That was completed in FY 2022-23 and was incorporated into the FY 2023-24 budget.
Willdan then moved on to a formal rate study, which was not completed in time for the FT 2023-24 budget. That study was started last fiscal year and updated over the fall and winter with actual FY 2022-23 data, forecasted FY 2023-24 data and budgeted FY 2024-25 data.
Daryll Parker with Willdan will present the attached presentation describing the study and results and will answer Council questions.