Raftelis (previously Public Resources Management Group, Inc. (PRMG)) has provided utility rate and financial consulting services to the City of Daytona Beach since 2011. The City’s utility serves approximately 20,000 water and 16,100 wastewater accounts representing a population of approximately 66,000. Over the past 15 years, Raftelis has assisted the City in a multitude of Utility and other rate and financial services.
Water, Wastewater, and Stormwater Revenue Sufficiency and Rate Design
Raftelis has prepared several detailed evaluations of the ability of the utility rates to fund the expenditure and financial requirements of the City and to monitor the fiscal position of the System. As part of the studies, Raftelis developed an interactive financial model that encompasses a six‑year forecast period. Attributes include:
- Preparation of a detailed customer account and usage analysis to evaluate water and wastewater demands and service needs and to project rate revenues
- Prepared a multi-year capital funding plan recognizing prioritization of funds recognizing use of the State Revolving Fund (SRF) loans administered through the Florida Department of Environmental Protection (FDEP), utility revenue bonds, and internal funding sources (impact fees, rates, etc.)
- Developed Capital Finance Plan in accordance with FDEP application requirements to secure financing through the SRF loan program
- Developed benchmarks for financial management to maintain a strong fiscal position and promote operational sustainability
- Identified annual rate adjustments to meet identified funding needs for each utility and designed rates to provide for the full cost recovery by customer class
In support of the City’s ongoing utility management program, Raftelis updates the financial forecast as necessary to evaluate the overall revenue sufficiency and financial position of the utility and has assisted the City in updating and implementing rate recommendations to assure proper cost recovery.
Water and Wastewater Impact Fees
Raftelis has reviewed the impact fees charged to new customer growth to assure proper capital cost recovery. The fees recognized the requirements of the Florida Impact Fee Act and our understanding of the fee application / recovery requirements transpiring from case law. As part of the impact fee evaluations, Raftelis:
- Functionalized existing system assets in service (installed costs) and capital projects to identify appropriate costs to be recovered in fee calculations
- Identified existing and planned capacity and availability in support of the identification of the unit cost of capacity
- Identified contributed capital and credits in the determination of the net capital costs recognized in the fees
- Analyzed the level of service necessary for the apportionment of capacity
- Calculated proposed impact fee to be applied to new development
Other Utility Rate Services
Raftelis has also assisted the City with the following utility services:
- Development of wholesale water rate evaluations for service to other public utilities and providing assistance in the drafting of wholesale service agreements
- Prepared a meter replacement analysis to evaluate the estimated financial impacts to the utility system
- Developed reclaimed water rate evaluation for sale of irrigation quality water on a large user basis
