Sewer Rate Study Services

The vendor required to provide sewer rate study is to independently assess and evaluate the district’s assets, revenues, expenses, billing structures, capital plan (parallel path), and potential development and provide recommendations as to setting appropriate sewer rates and connection and tap fees for the immediate future and beyond.
- Study objective
•    Compare current sewer system cost (operations, capital improvements, etc.) against proper benchmark. 
•    Recommend baseline rate structures required to fund sewer system and consider annual inflationary, indexed adjustments to rates needed to maintain system. 
•    Recommend baseline connection fee structures required to fund new connections to the system.
•    Recommend ways of communicating utility system costs including recommendations for structuring bill format.
- Study requirements
•    The recommended rate structures should be based on cost of service and shall be sufficient to meet the revenue requirements of the district’s sewer funds.
•    The study shall recommend rate structures that considers and makes provisions for the following factors:
o    Current and future costs to provide sewer service in accordance with established and anticipated standards and regulations, including hb1211(tap fee bill) or appropriate state statute once it is officially codified. 
o    Existing and projected flows, and anticipated development on the immediate horizon. 
o    Considerations for long-term compliance, and supplemental fees with increased contributing flows etc. 
o    Age and condition of systems. 
o    There will be an analysis of the system, inspection and identification of capital and maintenance projects initiating on a parallel timeline.
o    Funding requirements for all current long-term liabilities and debt obligations (bond and loans) as applicable. 
o    Specific considerations of being a discharger to metro water recovery, including any specific bylaws or other considerations.
•    The recommended rate structures shall provide direct identification of revenues appropriated to major funded activities and infrastructure. 
•    The recommended rate structures shall be consistent with industry practice for establishing utility rates in state.
•    The benefits of any proposed modifications shall be weighed against the financial impacts on rate payers.
- Study elements
1. Equity
•    Assess the equity of recommended sewer rates for all types of property ownership, including multi-family units.
2. Sensitivity analysis
•    Assess the ability of the revenue stream generated by the recommended rate structures to continue to fully fund sewer system costs. 
•    Include a sensitivity analysis where the long-term revenue generated under each alternative shall be illustrated when confronted with the impacts of increased discharge from growth or simply increasing usage.
3. Other service changes
•    Assess the existing customer service fee structure, identify potential areas for service and system changes, and recommend changes.
4. Rate payer education and communication
•    Recommend methods for communicating utility costs, including utility bill layout and how it might be used to identify actual costs of providing sewer services under recommended rate structures. 
•    Assess ease of communication associated with each recommended rate structure.
5. Annual operating fund balance targets. 
6. Annual target contingency fund balances and level of liquidity.
7. Budgeting horizon and cycle
•    Assess the appropriate budgeting horizon and cycle needed to support recommended rate structures.
8. Comprehensive summary of recommended rate structure(s)
•    Assess the performance of each recommended rate structure and provide recommendations on the preferred rate structure.
9. Supporting data
•    Provide data supporting conclusions and observations made for each of the areas above and cite within the study.
10. Connection charges
•    All growth-related expenses shall be captured in a connection fee including current and future master planned identified improvements. 
11. Develop a user-friendly cash flow model
•    It is the district’s desire to use a model that will enable the use of annual inputs to aid in determining future sewer connection and impact fees.
- Budget: $3 million

- Questions/Inquires Deadline: November 24, 2025