|
Bonne Terre, MO, Proposed Sewer Rates Scenario 2.7
<br /> Executive Summary CBGreatRates©Version 3.5
<br /> This analysis package contains a "proposed rates scenario"that depicts what will happen under the
<br /> adjusted rates and other changes we recommend you make.The results of this scenario are compared
<br /> to the results you can expect if you do not adjust rates.This is often called the"current rates"scenario.
<br /> If you postpone adjusting rates for just one month, you will lose approximately $20,407
<br /> that you would have collected at the new rates.Time is money so do not delay adjusting rates.
<br /> In the following table you can see several key financial benchmarks made possible by the proposed
<br /> rates. The first column below is the test year,the year from which historical data was used to build this
<br /> analysis. The second is the year following the test year-the year during which initial rate adjustments
<br /> will go into effect.The third column is the fifth year following the test year. Five years out is a good
<br /> financial planning horizon; tong enough to let you see into the future but not so long that results become
<br /> overly speculative.
<br /> Results for Years Beginning
<br /> 10/1/05 10/1/06 10/1/10
<br /> Rate revenues collected $912,273 $1,086,102 $1,509,354
<br /> Sum of incomes $1,556,461 $1,676,206 $2,569,346
<br /> Sum of operating costs $1,653,067 $1,495,279 $1,775,022
<br /> Net income(loss) $0 $180,926 $794,324
<br /> Capital improvement reserves $1,203,319 $1,236,835 $659,258
<br /> Replacement reserves $100,465 $136,081 $252,695
<br /> Current position* $2,140,730 $2,390,789 $2,700,356
<br /> *All current incomes plus reserves minus all current obligations
<br /> Cumulative net increase(decrease)in user
<br /> fees after rate adjustments and/or cost $2,140,730 $2,234,433 $0
<br /> savings, excluding customer growth
<br /> Cumulative return on investment for acquiring
<br /> $0 $156,356 N.A.
<br /> this analysis
<br /> Data shown in Charts 13 through 16 is historical or will not change depending on rates to be set. Most
<br /> of the data in Chart 2 will also not change depending on rates to be set.All other charts depict your
<br /> financial performance under the proposed rates.The easiest way to grasp the financial future of the
<br /> system under the proposed and current rates is to view the line graphs, Charts 5 through 11. Chart 12 is
<br /> a table that depicts the bills your users are paying now compared to the bills they would pay under the
<br /> proposed rates scenario.
<br /> This analysis was produced using the program CBGreatRates, copyright 2007.You are encouraged to
<br /> distribute this report so long as credit is ascribed to the author,Carl E. Brown of Carl Brown Consulting,
<br /> LLC-
<br /> V
<br />
|