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<br /> <br /> 1-1 <br />Use of contents on this sheet is subject to the limitations specified at the end of this document. <br />Section 1 <br />Introduction <br />This section describes the organization of the report, rate-making objectives, the rate-setting process, <br />and a general description of the wastewater system. <br />1.1 Organization of the Report <br />This report is divided into seven sections. This introduction provides an overview of the study objectives <br />and description of the City’s wastewater system. <br />Section 2 discusses the wastewater discharge characteristics of customers. The number and type of <br />connections and wastewater flow and strength projected for FY19 – FY24 is developed in this section. <br />Section 3 summarizes the five-year Financial Plan for the wastewater enterprise and describes the <br />development of revenue required from wastewater rates. <br />Section 4 describes the allocation of revenue requirements to defined billable parameters. <br />Section 5 describes the development of the wastewater rate structure and wastewater rates. <br />Section 6 describes the impact of recommended wastewater rates upon customer bills. <br />Section 7 describes the limitations of the study document. <br />1.2 Rate-Making Objectives <br />There are numerous rate-making objectives that must be considered when developing rates and rate <br />structures. <br />Revenue sufficiency. Generate enough revenue to fund operating costs, capital costs, bonded debt, and <br />adequate reserves. <br />Revenue stability. Recover revenue from rates that will cover fixed and variable costs. <br />Meet Fiscal Management Goals. Meet financial goals and metrics that will support the best credit rating <br />and reduced risk of default. <br />Administrative ease and cost of implementation. Enable easy and cost-efficient implementation and <br />ongoing administration, including monitoring and updating. <br />Affordability. Be as affordable as possible while maintaining the utilities sound financial position and <br />credit rating. <br />Customer acceptance. Be as simple as possible to facilitate customer understanding and acceptance. <br />Fairness. Provide for each customer class to pay its proportionate share of the required revenue in <br />compliance with legal rate-making requirements. <br /> <br /> <br />95