Utility Rate Revenue Requirement Model and Revenue Forecasting Tool

The Vendor is required to provide the revenue requirement model will be based upon a comprehensive review of the City’s water, sanitary sewer, surface water, and solid waste budgets, current usage data, projected future growth, capital facility plans and studies, operating and capital reserves policies, and other information deemed necessary.
- One revenue requirement model will be developed per utility.
- Revenue requirements will incorporate fiscal policies, capital programs and capital financing impacts, and the operating forecast, including operations and maintenance expenses, equipment needs, future staffing needs, program costs, and reserves.
- Results will be evaluated in two increments: the baseline requirements (continuing at current staffing and service levels) and including requested service packages (requested increases in staffing and service levels subject to City Manager recommendation and City Council approval).
- Revenue requirements will easily be able to produce multiple scenarios for comparison.
- Develop rate revenue strategies that meet financial obligations over the planning horizon while providing smooth impact to customers, to the extent practical.
- The consultant shall work with staff to determine an appropriate number of scenarios to produce, including what strategies, assumptions, and inputs to adjust per scenario.
- Projected consumption and influencing factors on consumption such as, but not limited to, the following: growth trends from permit and housing data, historical usage, economic indicators affecting consumption, conservation efforts, and legislative changes.
- Use of debt financing where appropriate to minimize the impact of rate increases and maintain capital reserves.

- Contract Period/Term: 1 year
- Questions/Inquires Deadline: October 13, 2025