In the mid 1990s, Dare County (County) took over water service for Hatteras, North Carolina, which is in the southeastern corner of the County. Due to the geography of Dare County, which is primarily barrier islands, the Hatteras System could not be cost effectively connected to the original system, which serves Manteo and the northern beach communities in the County. The original system included two distinct service areas, the Northern service area and the Rodanthe-Waves-Salvo (RWS) service area. The County asked RFC to develop a financial planning and rate model (Model) that calculated individual rates for each service area as well as a combined rate. Based on the study, the County implemented a rate structure that included two separate seasonal rates, one for Hatteras and one for the Northern-RWS service area, for FY 2000. In addition, the Model was used to develop a six-year phase-in to a single, county-wide rate. RFC has assisted the County with annual rate updates almost every year since 2000. The County successfully implemented the phase-in and now has a county-wide rate.
RFC has also assisted the County with three revenue bond issues. At the same time as the original rate study, the County had a substantial CIP to construct a new reverse osmosis water treatment plant. Given the size of the CIP, a portion needed to be funded through the issuance of bonds. The County decided to issue approximately $15 million in revenue bonds and RFC prepared a feasibility report for this 1998 bond issue. In 2009, RFC prepared an Agreed Upon Procedures Letter for a $13 million refunding by the County. The letter included a Statement of Assumptions that identified the relevant assumptions included in the five-year forecast. RFC also prepared a full feasibility report for a $24 million revenue bond issue by the County. The purpose of the bonds was to fund the expansion of the distribution system to serve portions of Roanoke Island.