To assist the Town of Peace River in achieving sustainable rate structures that adequately fund water and wastewater operations, capital costs, debt, and reserves with reasonable, fair, and equitable rates.
1. Provide a Financial Plan sufficient to satisfy the Town of Peace Rivers goal of full cost recovery and sustainable operations for the water and wastewater systems for a period of at least 10 years.
1. The recommended rate structure shall be based on full cost of service and shall be sufficient to meet the short and long-term revenue requirements related to water and wastewater operating, capital expenditures and debt.
2. The study shall recommend rate structures that consider and make allowances for:
a. Current and future cost of providing water and wastewater in accordance with current and anticipated standards and regulations.
b. Growth estimates as established by the Town or other supporting documents.
c. The Asset Management Plan and asset condition assessments for the supply, distribution, and treatment infrastructure.
d. Funding requirements for all unfunded liabilities or other financial obligations required to be incorporated under Public Sector Accounting Standards.
e. Best practices in the areas of debt management and other financial tools.
f. Risk/uncertainty associated with revenue flows.
g. Recommendations of amendments and/or alignment the current by-laws, policies, and practices to the proposed new Utility Rate Model.
h. Other impacts or factors as identified.
3. Options for rate structures that is consistent with industry practices.
4. The benefits of moving away from the current rate structure shall document the impact on ratepayers.
5. Projected impacts that proposed rate structures will have on future consumption patterns and the resulting impact on the cost of providing services.
6. Provide strategies for implementing significant rate changes to reduce adverse impact on specific customer classes.
7. Justifications for any special classes of customers shall be adequately documented, including financial impacts.
8. The recommended rate structure shall result in no decrease to the stability of the current revenue streams.
9. The impacts of funding past and current depreciation should be incorporated into the rate structure and impacts detailed.
10. The recommended rate structure shall be easy to administer, understand and communicate to the end users.
11. Review of the Town’s billing system to ensure the recommended rate structure can be easily implemented. If not, the costs to amend the systems must be documented and quantified.
12. The plan must include information on the projected financial information, which includes projected financial position, projected financial operations and projected cash flow
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