Delivering a comprehensive stormwater fee study that’s inclusive of a financial plan, cost allocation, and fee structure analysis
Recently, we completed a comprehensive stormwater fee study (SWFS) for the City of Peoria, Arizona. The SWFS includes a multi-year financial plan, cost of service allocation, and fee structure analysis. Using the financial module of our modeling system, we developed several alternative multi-year financial management plans and stormwater fee revenue adjustment plans. Then, we presented it though interactive work sessions with staff.
During these work sessions, we examined the impact of various inputs or assumptions upon key financial indicators. How? By using graphical representations to summarize the results of forecasting models under the assumed conditions. Next, we incorporated local information and management input to help us deliver the most viable solution for the City.
Our detailed cost of service allocation analysis reviewed test year revenue requirements and parcel billing determinants, allocated revenue requirements to functional categories, and identified customer class responsibilities for the costs of each category based upon the appropriate user characteristics.
Finally, we reviewed the City’s existing fee structure and developed modifications to ensure that Peoria’s fees conformed to accepted industry practice and reflected the appropriate distribution of system costs.
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