The GovRates team has prepared hundreds of rate, cost of service, and revenue sufficiency studies for local governments that consider best financial management practices. We have developed rates and financial plans for water, wastewater, reclaimed water, stormwater, solid waste, and natural gas enterprises that provide service to millions of customers. The GovRates team offers exceptional client support throughout all stages of the study process, and we have a long history of success in securing public acceptance of our recommendations.
Objectives considered in studies prepared by the GovRates team include:
- Meet financial obligations and performance objectives.
- Maintain or improve the overall financial position consistent with management policies, strategic business objectives, and industry best management practices.
- Improve credit rating.
- Provide capital for expansion and/or renewals and replacements.
- Promote compliance with rate covenants, additional bonds test, and flow funds provisions based on authorizing bond or loan documents.
- Develop equitable and defensible rates and fees based on cost of service principles.
- For water rate studies, encourage and promote conservation of water resources.
Services offered in cost of service and rate studies include:
- Develop comprehensive utility business plans.
- Develop performance measurements, financial targets, and compliance analyses to promote creditworthiness of enterprise.
- Prepare capital financing plans and cost sensitivity / feasibility analyses.
- Develop detailed bill frequency and customer usage profiles.
- Establish water conservation pricing policies.
- Develop equivalent residential connection (ERC) based and meter equivalent-based rate structures.
- Conduct public relations programs for customer information and rate impact needs.
GovRates also advises our clients on revenue enhancement opportunities – new or revised charges that, if implemented, could help mitigate the need for user rate increases.