Balancing customer fees and true expense.

Keeping utility rates in line with actual costs can be a juggling act. RPI Consulting offers a proven methodology for calculating durable rate structures that receive public support. We work with clients to collect information, analyze alternatives and provide the public with options.

We understand the complexities of overlapping jurisdictions and extra-territorial customers, and work those variables into our fiscal models. We also grasp the challenges of providing sewer services to a variety of land uses.

Our recommendations are based on an equitable fee methodology that funds distinct operations and capital components. All this comes down to a defensible rate structure that’s easily understood by town administrators and customers.

Past Projects: Town of Bayfield, CO; Town of Mancos, CO; Town of Mead, CO; Town of Silverton, CO

CASE STUDIES

Mancos engaged RPI Consulting to help it shape a long-range capital improvements plan for the town’s water treatment and distribution system. After an extensive analysis of usage by account, RPI Consulting calculated a tiered water rate that would finance needed projects. The study initially provided four fiscal models based on differing rate structures, cost phasing, corresponding cash flow and funding gap analyses for consideration by the town board. The board ultimately approved a graduated rate increase, with the goal of incrementally accomplishing top priorities in the capital improvements plan. The new rate schedule has since yielded much needed revenue.

Services provided:

  • Water Treatment and Distribution Capital Improvements Plan
  • Service Rate Study
  • Tiered Water Rate Calculation
  • Fiscal Modeling of Potential Rate Structures

RPI was charged with overhauling the rate and tap fee structures for three of the town’s enterprise funds. After inventorying the capital assets and integrated future planning, we carefully evaluated operating expenses for each fund. This empirical information helped us calculate the rate and fee structures, which were published in a concise report and pamphlet. The new tiered water rate has resulted in water conservation.

Services provided:

  • Capital Assets Analysis
  • Capital Improvements Plan and Operations Cost Analysis
  • Tiered Water Rate Calculation
  • Public Information Pamphlet