Laserfiche WebLink
Rate Study Overview <br />3 <br />Financial Plan <br />Develop funding plan <br />for SSMP / CIP <br />Determine annual <br />rate revenue needs to <br />maintain financial <br />sufficiency <br />Cost-of-Service <br />Allocate costs of <br />sewer system <br />Determine cost to <br />serve each customer <br />class <br />Rate Design <br />Develop sewer rate <br />structure most <br />suitable to meet <br />City’s goals and <br />objectives <br />Evaluate customer <br />and rate classes <br />Rate Adoption <br />Document rate study <br />in report <br />Adopt sewer rates <br />according to <br />Proposition 218 <br />process <br />We are here <br />Purpose of the Financial Plan <br />•Establish a long-term financial strategy for the sewer enterprise <br />•Ensure sewer rate revenues are sufficient to: <br />•Fund operating and capital needs (for each scenario) <br />•Maintain financial stability <br />•Meet reserve and debt coverage policy targets <br />•Support implementation of the Sewer System Management Plan (SSMP) <br />and long-term Capital Improvement Plan (CIP) <br />•Three alternatives / scenarios for SSMP implementation <br />4 <br />Page 135 of 144