Laserfiche WebLink
<br /> rates and financial management. Identify legal requirements for sewer enterprise finances <br /> such as bond covenants, AB 1600 accounting requirements for handling connection fee <br /> revenues, and other requirements of any legal agreements. Discuss findings and <br /> recommendations with City. <br />II. Lon!!- Term Sewer Enterprise Financial Plan <br />1. Develop Forecasts & Projections <br /> Based on the data assembled from the City and other sources, prepare forecasts and <br /> projections to serve as the basis of the long-term sewer enterprise financial plan. Review <br /> projections with City staff for agreements on assumptions, interpretation of data, and <br /> completeness of approach. Projections will include: <br /> . Operating and maintenance costs <br /> . Anticipated capital improvement project costs and timing <br /> . Projected costs of wastewater treatment through SBSA (including City's share of <br /> anticipated capital improvements at the SBSA facility) <br /> . Service charges, connection fees, interest earnings, and other revenues <br /> . Growth rates and impacts of anticipated development <br /> . Debt service and debt service coverage <br />2. Evaluate Financing Alternatives for Capital Improvements & Replacements <br /> Work with City staff to identify financing priorities and objectives. Identify and evaluate <br /> financing alternatives for funding the City's sewer capital improvement program including <br /> improvements to City infrastructure as well as SBSA facilities. Recommend the most <br /> appropriate and lowest-cost financing options, including pay-as-you-go capital funding. If <br /> debt is required, discuss options with City and develop debt service projections to <br /> incorporate in the cash flows. This task will also include evaluation of long-term <br /> infrastructure replacement needs and development of strategy to fund anticipated costs. <br />3. Recommend Minimum Fund Reserve Target(s) <br /> Recommend prudent minimum fund reserve target(s) for the City's sewer enterprise. BWA <br /> often recommends operating reserve targets that are based on a percentage of the annual <br /> operating budget, to allow the reserve target to adjust over time and keep pace with future <br /> financial conditions. Evaluate establishing an infrastructure replacement fund and <br /> recommend an appropriate funding level for such a fund. Develop a plan to help the City to <br /> meet the recommended reserve targets within a reasonable and achievable period of time, <br /> and maintain prudent reserves over the long-run. <br />4. Review and Evaluate SBSA Method of Cost Recovery & Billing <br /> Review City's agreement with SBSA and consult with City and SBSA to gain an <br /> understanding of how SBSA allocates costs to each of the participating agencies. If SBSA <br /> is considering changing its cost allocation methodology, estimate the potential financial <br /> impact on Redwood City and incorporate into the financial projections. If applicable, help <br /> City identify and evaluate different SBSA cost recovery options so that it can advocate for a <br /> preferred billing method. <br /> 3 <br /> .u__....~....._..._.._,._.._.,,'~ <br />