CC - Agendas - City Council - REGULAR - 8/14/2018

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9.H.a City of Prescott, Arizona Solid Waste Utility Rate Study • Customer account data including the number and type of single family customers, and residential cart size subscription data, commercial and multi -family customer service levels (i.e., number and size of bins, number of weekly pickups). • Tons of solid waste and recyclables collected by customer sector. Once we have gathered this information, we will develop a rate model to mirror the revenues and expenditures in the solid waste enterprise fund. The rate model will show the enterprise fund's total actual revenue, O&M expenditures, capital expenditures, and cash balance for the most recent two years, and projected operating results and cash balance over a 10-year planning horizon. TASK 3 Model Actual Revenues and Build Rate Model Dashboard We will use the current customer count information to model the existing revenue and compare that modeled revenue to the actual revenue recorded in the City's accounting system. The purpose of this step is to confirm that the customer count data is accurate. We will also design and construct a dashboard for the City's rate model. The dashboard will enable the City to perform sensitivity analysis and see at a glance the impact of changes to various assumptions (inflation, growth rates, capital expenditures, rate increase percentages, etc.). The dashboard will enable the City to visually present the justification for any proposed rate adjustments to City senior management and the City Council. We have included an example of a dashboard below in Chart 1. Chart 1- Example Dashboard ssoaoo : $24000 a 0 $10,000 s0 FY 2013 FY 2015 SIMI Total Revenue Ending Cash FY 2017 FY 2019 FY 2021 FY 2023 MINI Total Expenditures Target Minimum Balance FY 2027 FY 2029 Capital Expenditures Attachment: Raftelis Scope of Work -Prescott DIF and Rate Study (2124 : Rate & Fee Study Contract with Raftelis) RAFTELIS Solid Waste Rate Study - Attachment Page 3 Packet Pg. 261