Laserfiche WebLink
Prior Utility Rate Analysis Experience: <br /> Within the last six months,Ehlers and Associates has completed or is in the process of completing <br /> utility rate studies for the following communities: <br /> • City of St Louis Park, MN <br /> • City of Medina,MN <br /> • City of Edina, MN <br /> • City of Carver, MN <br /> • City of Chisholm, MN <br /> • City of Brooklyn Park,MN <br /> • City of Taylor's Falls, MN <br /> Please see the references page at the end of this Proposal. <br /> More and more communities are turning to Ehlers to analyze and assist staff in determining the <br /> appropriate levels of water, sewer and storm sewer rates and charges. Jessica Cook, Financial Advisor <br /> and Elizabeth Diaz, CPA (Inactive), Financial Analyst, have worked with city staffs on the above <br /> projects and would be primarily responsible for completing the City of Pequot Lakes Utility Rate <br /> Analysis. Meeting client's needs and tailoring the product to serve those needs is a core belief at <br /> Ehlers and Associates. We will work to meet the needs of the City of Pequot Lakes. <br /> Ehlers Approach '1 <br /> Ehlers staff has developed a template for completing analyses of this type. The template is sufficiently <br /> flexible enough to tailor it to meet the needs and the special circumstances of the City of Pequot <br /> Lakes. It is also available to be transmitted electronically to staff at the completion of the Analysis for <br /> staff use, if desired. <br /> The analysis will be conducted in the following two steps. <br /> Step 1. Complete rate study and financial plan <br /> This step will focus on options for establishing equitable water and sanitary sewer rates for <br /> residential and commercial customers. It will also review Sewer Availability Charges <br /> (SAC) and Water Availability Charges (WAC) charges, other revenue sources, and the <br /> current and projected expenses for the water and sanitary sewer systems. Finally, it will <br /> include reviewing and developing recommendations for the utility.These recommendations <br /> will address cash reserve balances, project funding, and capital replacement, as necessary <br /> and appropriate. <br /> • Assemble and review existing historical utility system operating data. <br /> • Develop a pro forma cash flow statement showing projected usage, total operating <br /> revenue, and total expenses, including operations and maintenance costs, depreciation, <br /> department servicing, net income, debt, etc. to test adequacy of existing and proposed <br /> rates. <br /> City of Pequot Lakes, Utility Rate Study Proposal February 22,2007 <br /> Page 2 <br />