1. Utility Financial Solutions
Washington Twp Water and Sewer Rate Projections Presentation by Utility Financial Solutions, LLC
Dawn Lund
Vice-President
Utility Financial Solutions

2. Utility Financial Solutions, LLC
International consulting firm providing cost of service and financial plans and services to utilities across the country, Canada, Guam and the Caribbean
Instructors for cost of service and financial planning for APPA, speakers for organizations across the country, including AWWA.

3. Three Key Targets that Help Determine Rate Changes

4. Water Department

5. Debt Coverage Ratio – No Increase

6. Minimum Cash Reserve – No Increase

7. Operating Income – No Increase

8. Significant Assumptions for Projection

9. Water Projection Summary No Increases

10. Water Projection Summary Recommended Rate Track

11. Proposed Water Rate Increase History DWSD & Wash Twp Retail
*DWSD now GLWA

12. Wastewater Department

13. Debt Coverage Ratio – No Increase

14. Minimum Cash Reserve – No Increase

15. Operating Income – No Increase

16. Significant Assumptions for Projection

17. Wastewater Projection Summary No Increases

18. Wastewater Projection Summary Rate Track

19. Proposed Sewer Rate Increase History Macomb & Wash Twp Retail

20. Rate Design

21. Proper Rate Design Proper Rate structure = Fixed and Variable costs
Customer charge - Recover fixed costs of meter reading, billing, customer service, and a portion of the distribution system
Commodity Rate – based on water used

22. Surveys

23. Survey a VERY Small Snapshot of the Overall Picture
Survey of local rates
On a cost to serve basis it doesn’t matter – the Board needs to know true cost to serve their customers
What do you know about the system your comparing too?
Are they operating at a loss?
What are their cash balances?
Age of their system?

24. Dawn Lund Vice-President Utility Financial Solutions 231-218-9664
Questions?
Dawn Lund
Vice-President
Utility Financial Solutions