09-11-2012 Agenda - Laserfiche WebLink

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• DEN HILLS MEMORANDUM DATE: September 11,2012 TO: Financial Planning and Analysis Committee FROM: Sue Iverson, Director of Finance and Administrative Services SUBJECT: Discussion on Utility Rate Study At our June meeting, it was decided that we would need to be flexible in our scheduling as we were going to work on the Utility Rate Study for our Water, Sanitary Sewer, and Surface Water Management Funds. • Staff has been able to gather enough data with the help of our new intern Ian Jackson to be able to keep our September meeting date. Staff has compiled figures for usage of all our customers, 20-year estimates on infrastructure costs for the systems, and the preliminary operating budgets. This will give us enough information to run scenarios for the group,as we also have an updated financial forecasting model that will demonstrate these for us. Staff will demonstrate how the model works and will then ask for direction from the committee on what types of scenarios you would like to see run. Once we have received direction from the committee, staff will program in the scenarios and we will have another meeting to show you how these different scenarios affect revenues,fund balance, and where we would need to adjust the rates based on each case. We have included some information on new legislation which allows cities to still meet the conservation criteria that was set a few years back, (which our current system was built on) but allows alternatives to what was allowed before. The committee might want to discuss this as we look at what types of scenarios you want to see. Once staff has received this feedback, we will evaluate what we expect our timeline to be and we can talk about scheduling our next meeting. Our goal is to present a recommendation from the committee to the City Council at its November worksession. i