Rate Study Financial Plan on Agenda for July 20 Work Session

Raftellis Financial Consultants will be in Salida on Monday, July 20th to attend the council work session and present the financial plan for the water and wastewater systems as part of their rate study project. After providing an overview of the rate setting process, Raftellis will discuss the financial projections for the next ten years. The financial plan includes operations and maintenance expenses, debt service, capital projects and related funding alternatives, reserve requirements and targets, and a non-rate revenue. Factors influencing the plan, such as growth in the customer base, volume projections, inflation and system development fees will also be reviewed and discussed.

This is an important interim step prior to finalizing rate recommendations. Interested members of the public are encouraged to attend.

Input from the council is needed before finalizing the project. Next steps will include updating the system development fee update reflecting direction on CIP and debt funding and finalizing the cost of service analysis. The consultants will return one final time to present rate alternatives including the current rate structure with across the board increases and an alternative rate structure.