Atwater, City of
RFC has assisted the City of Atwater (City) on a number of financial consulting engagements. RFC performed water and sewer rate and financial planning studies. The City provides both retail water and sewer transmission and treatment service to 7,500 retail customers and sewer service to three wholesale customers with a total average flow of approximately 4 million gallons per day (MGD). We successfully completed the Proposition 218 process for water and wastewater rate increases. Both sets of increases were fairly large, with the wastewater increases being particularly large to fund an upgrade to the City’s 6 MGD wastewater treatment plant (WWTP). The City was required to spend approximately $75 million to implement tertiary treatment, which significantly impacted the wastewater revenue requirements. As part of each engagement, RFC developed a rate model that provided a financial plan for the City to investigate different financing scenarios and provide a means to measure the sufficiency of the revenue generated from its retail and wholesale customer base.
The wastewater treatment upgrade required three separate bond issues to fund the project over a five-year period. RFC assisted the City by preparing feasibility reports for each of the bond issues. RFC coordinated with the City’s cash flow consultant to prepare a pro forma for each bond issue. As part of the first issue, the City’s debt was upgraded to the A range from the BBB range.