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Managing significant urban growth and complex cost-of-service allocations across a consolidated city-county government, the Metropolitan Government of Nashville and Davidson County – Metro Water Services (MWS) needed help as its infrastructure and administrative systems increased.
In 2001, MWS required a trusted financial advisor to navigate comprehensive cost-of-service and rate studies for its water and wastewater systems. However, a growing city requires a holistic approach. The initial focus—providing financial assistance and rate consulting—soon revealed a broader need to systemize financial alignment across Stormwater, Transportation, Solid Waste, and the General Fund itself.
Raftelis has delivered 25 years of continuous strategic advising, resolving general fund tax inequalities, supporting the transition to a stand-alone Solid Waste Department, and driving measurable increases in customer satisfaction across the Metro area. Services such as strategic planning, organizational assessments, and formal mass surveys have also been conducted.
Building a city-wide foundation
Over five consecutive five-year contracts, Raftelis evolved from a utility rate consultant into a comprehensive strategic partner for the Metropolitan Government.
Financial and rate consulting
The partnership began with financial assistance to the water and wastewater funds and included numerous studies:
Stormwater and regulatory compliance
Raftelis staff have provided senior-level expertise for MWS’s stormwater program, including the implementation of stormwater fees, including revised fees, and data development approaches. Our team led extensive efforts regarding regulatory compliance and stakeholder-driven revisions to Metro’s stormwater management manual. This work involved facilitating public stakeholder groups, training the development community, and coordinating policy alignment across multiple agencies, including Planning, Public Works, and Legal.
General fund
Raftelis staff evaluated general fund revenues and expenses and how they are allocated between Nashville and Davidson County’s taxing districts, the Urban Services District, and the General Services District. Raftelis proposed reallocating expense recovery between the two districts, moving away from geographic boundaries in favor of service-delivery boundaries. Residents in the Urban Services District were paying a premium for county-wide services. The reallocation of expenses shifted property taxes between the two taxing districts, leading to a decrease in one district and an increase in the other. The shift in tax revenue recovery ensures that property owners pay for the services that they receive.
Solid waste services
Raftelis assisted in evaluating the transition of Waste Services into a stand-alone Solid Waste Department. This engagement supported the City’s 2021 Solid Waste Master Plan and its 20- to 30-year zero-waste vision. Raftelis delivered a comprehensive organizational roadmap, a financial model, and prioritized focus areas for the Director of Solid Waste to ensure the Department has the capacity and structure to meet Nashville’s strategic policy goals.
Department of Transportation fee evaluation
Raftelis’ work with the Nashville Department of Transportation (NDOT) included a comprehensive evaluation of its permitting and licensing fees. The study covered charges for special events, parking, and work performed in the right-of-way (ROW). The primary objective was to ensure these fees are cost-justified, appropriate, and reflective of the actual resources required to provide each service.
In addition to the cost-justified calculations, Raftelis performed a benchmarking analysis to compare NDOT’s fees with those of peer local governments. This provided stakeholders and decision-makers with a clear point of reference regarding market standards.
Finally, Raftelis evaluated the fiscal impact of the proposed changes by comparing current revenue against projected revenue from the new fee structure. This comparison used permit volumes to illustrate the relationship between existing charges and the cost-justified rates.
Strategic planning and organizational assessment
In 2016 and 2022, Raftelis guided MWS through a two-part strategic planning process designed to establish a shared organizational vision and clear accountability. The process began with an organizational assessment using the Effective Utility Management (EUM) framework to identify performance gaps. These initiatives involved deep engagement with more than 60 employees and various Priority Teams to ensure the utility’s day-to-day operations align with its long-term strategic goals.
Customer engagement and satisfaction
To support data-driven improvements, Raftelis conducted large-scale customer satisfaction surveys for MWS in the spring of 2022 and the fall of 2023. These surveys, which garnered more than 5,000 responses, evaluated customer awareness of policies, operations, and messaging. The 2023 follow-up survey showed that customers recognized and appreciated the process changes MWS implemented, leading to higher satisfaction across nearly every category.
Ultimately, a quarter-century of continuous strategic advising has helped Nashville’s Metropolitan Government systemize financial alignment across its water, wastewater, stormwater, solid waste, transportation, and general fund programs, resolving general fund tax inequalities, aligning day-to-day operations with long-term goals, and driving measurable increases in customer satisfaction.
For more information, contact us.
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