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<br />I ~3 vi <br /> <br />4. Identify potential alternative financing applicable to various <br />types of improvements needed and develop a capital improvement financing <br />plan. <br /> <br />5. Determine existing fixed assets and future capital improvements to <br />be used in developing impact fees, based on available fixed asset <br />records. <br />C. Analysis of Revenues and Revenue Requirements. <br /> <br />Future sewer revenue and revenue requirements for a five-year study period <br />will be projected to provide an indication of the potential degree of <br />adjustments in future revenue levels. Study projections will include the <br />following elements: <br /> <br />1. Project estimated future sewage volumes and revenues under existing <br />rate levels based on projected number of customers and contributed <br />volumes per customer taking into consideration historical growth trends <br />and patterns in customer usage characteristics and studies by others of <br />future growth trends. <br /> <br />2. Estimate future sewer system revenues under existing rates based <br />upon the number of customers and sewage volume projected in Task C.1 <br />above. <br /> <br />3. Develop annual revenue requirements of the sewer utility based upon <br />historical and projected future needs and taking into atcount expected <br />operational changes and inflation. Revenue requirements examined will <br />include at least the following: <br /> <br />a. Operation and maintenance expense <br /> <br />b. Capital outlay for equipment and improvements <br />c. Debt service on existing and any proposed bond issues <br /> <br />d. Other cash obligations <br /> <br />4. Develop alternative cash flow statements for the sewer utility, <br />showing application of revenue under existing rate levels to meet the <br />projected annual revenue requirements. <br /> <br />5. On the basis of the estimated cash flow statements, develop <br />schedules of revenue level adjustments for each utility to meet <br />projected revenue requirements for sound utility financial operations. <br /> <br />6. Meet with representatives of the utilities to discuss the revenue <br />requirements portion of the study, review the alternative cash flow <br />statements and select one financial plan for cost allocation and rate <br />design. <br /> <br />7. Finalize revenue requirements for the selected alternative, taking <br />into consideration policy direction and comments by the City1s <br />representatives. <br /> <br />06/02/93 <br /> <br />A-16 <br />