08.01 - Request for Proposals for Water/Sewer Rate Study

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Carl grown Consulting, LLC What we Need From you to Analyze Your Rates We can glean go percent of the information and data we need from the following standard documents for the test year.The test year is the one-year period from which we will examine data.That will be your last fiscal year,if it finished fairly recently. If your last fiscal year finished over eight months ago,you should give us data from the first half of the current fiscal year and the last half of last fiscal year. Document What we get or can calculate from it Usage file,preferably Volume used by each customer each month, or by user classes electronic and loaded into an each month Excel spreadsheet Rates and fees chart Rates and fees paid by customers and properties being connected to the system at the beginning of the test year and when they changed during the test year, if they did Agreements with special Special rates and fees(discounts,waivers and limits on future customers rate increases)paid by special customers Balance Sheet Starting and ending balances for cash and cash equivalents, capital improvement reserves,equipment replacement reserves, etc. Income and Expense User fee,tap fee and all other incomes actually collected; and Statement all expenses actually paid Equipment replacement Estimated equipment replacement needs,timing and costs schedule for next 20 years Capital improvement plans for Estimated capital improvement needs,timing, costs and how next io years you plan to pay those costs We get another five percent of the information we need when you send us these things: • Total master metered flow through the system.This enables us to check your leakage rates—water loss(water)and inflow and infiltration(sewer)and calculate the cost of that leakage. • Your best estimates of changes that will happen to your operating costs and incomes. If in the next io years you may hire new staff, switch to contract operations,begin or end buying or selling wholesale water or sewer service,tap on more or fewer new customers than you did during the test year or make other significant changes,we need to know about those things so we can model them. Some will have little effect on your rates. Some could double your future rates or cut them in half. Before we start we don't know what other information we will need from you.This part of the analysis depends on your situation and what you want to make of it.The rate modeling exercise and talking with you will tell us what else we need to know and do. Gather up your data and information, send it to us quickly(preferably by e-mail) and we'll have your rate analysis done very soon. Carl Brown Consulting,LLc 1014 Carousel Drive,Jefferson City,Missouri 65101 www.carlbrownconsulting.com carlbrown@mchsi.com (573)619-3411 phone(573)632-2810 fax