Cary, Town of
RFC developed a five-year water financial planning and rate model for the Public Works and Utility Department of the Town of Cary (Town). The project included a review of cost allocations between water and sewer to ensure that neither utility was subsidizing the other. A new water rate structure was recommended based on a three-tiered residential rate to encourage conservation. The Town was planning significant capital expenditures in the near future to expand the water treatment plant and to accommodate a high rate of growth in customers and demand. The model has been used to evaluate rate impacts of alternative financing plans.
In addition, the project involved development of updated and cost justified development fees for water, sewer, streets, and recreation facilities. Both the proposed rate structures and development fees were designed to assist the Town in managing growth more effectively.
The original engagement took approximately four months and was completed in July 1998. Since that time, RFC has assisted in the development of a water conservation master plan that addressed a number of water conservation initiatives in addition to the tiered rate structures. In an effort to achieve its water conservation goals, the Town constructed a water reuse distribution system to serve a portion of its service area. RFC provided assistance in evaluating the economic impact of a range of reuse rates to offset a portion of the cost of the reuse system.
The rate model has also been used to generate forecasts for bond feasibility studies for inclusion in Official Statements issued in 2001, 2004, and for approximately $19 million and $26 million, respectively. Most recently, RFC helped the Town develop cost justified high strength surcharges for industrial wastewater customers and updated the calculation for cost justified water and sewer development fees. RFC rebuilt the City’s rate model in 2006 and is currently in the process of rebuilding it again.