Rate Studies LLC

RateStudies is a business focused on providing comprehensive financial analysis for water and wastewater utilities. Our approach is to present a financial review for the past five years and projections for the next five years. Graphics are used throughout the analysis, giving visual understanding. Beside finances, we also look at indicators that influence finances such as capital improvement programs, infiltration / inflow for sewer systems, water loss for water systems, growth patterns, rainfall and other factors that may be specific to your utility system. A rate adjustment may not be needed, but a 5 year projection of the utilities' finances will give an indication if one is needed in the future and would give the utility time to prepare. Included in the financial analysis will be the utilities' 5 year capital improvement program (CIP) with associated funding. If funding is needed for a major projects, we can analyze alternate financing and include principal and interest of new debt as well as additional depreciation of capital improvements to determine its effect on existing rates. The financial analysis will include a "Cash Analysis" showing your available cash at the end of each year. The report will also have a "Net Position Analysis" and will reflect the net income sheet as shown in your audit. Finally we present a "Bond Cover Analysis" if you have bonds requiring a certain amount of cover. Each of these analysis will cover the past 5 years and projections will be made for the next 5 years. Included will be an array of monthly water uses with corresponding monthly bills. A comparison of an average residential monthly bill with other surrounding utilities is also included. We can also provide a "Cost of Service Analysis" if desired. The cost of services analysis insures that each customer class, such as residential, commercial, industrial or other utilities pays its way or its share of each service provided.