1. Review Current Rate Structure: Analyze the City’s existing rate structures to determine if they provide adequate revenue for covering operating expenses, capital needs, debt service requirements, and water conservation. Rates will be compared to similar-sized utilities to ensure competitiveness and fairness. 2. Conduct a Cost-of-Service Analysis (COSA): Perform a detailed cost of service analysis to allocate costs to different customer classes based on their demand and usage patterns. This analysis will identify operational, maintenance, and capital improvement costs for water and wastewater services, accounting for regulatory requirements and inflation. 3. Provide Rate Design Recommendations: Recommend rate structures that ensure adequate cost recovery while minimizing customer impact. The consultant will propose at multiple alternative rate structure scenarios for the City’s consideration, including tiered rates and/or adjustments to fixed charges. 4. Financial Modeling and Scenario Analysis: Develop a financial model to forecast future revenue needs, considering different growth and consumption scenarios. This model will assess the financial sustainability of the City under various conditions, such as regulatory changes and reduced consumption patterns. 5. Public Outreach and Stakeholder Engagement: Assist in preparing materials for City Council and public meetings, explaining the rate study methodology and recommendations. The consultant will also be available for stakeholder discussions as needed to address questions or concerns.
