Raftelis assisted the Franklin County (County) Department of Sanitary Engineering (FCSE) with a utility structure, operations, cost-of-service, and water and wastewater rate analysis. As a result of an expansive geographic service area and limited economies of scale, FCSE faced a number of challenges in limiting the cost of providing utility services. FCSE was also faced with significant capital investment needs over the next 10 years to ensure continued and reliable services.
Raftelis worked with FCSE to develop a 10-year financial plan and recommended rates that were consistent with industry pricing standards and fully supported system operations and maintenance, asset repair and replacement, debt service, and debt service coverage requirements. Raftelis also conducted an operational assessment to evaluate the efficiency and effectiveness of the organization, as well as an evaluation of the current strengths and weaknesses of the existing utility structure and alternative options for consideration, taking into consideration the challenges related to the County’s service area and operational characteristics.
At the end of this study, the County implemented a three-year plan of rate increases to address the short-term financial needs of the utility. The County also began exploring opportunities to maximize the regional partnerships that may be available to maximize their efficient delivery of service. Raftelis is now working with the County to discuss regional opportunities with the City of Columbus.
Raftelis also assisted the FCSE with a utility valuation and regionalization review. Raftelis used the financial planning model that was developed as a part of our initial engagement in 2014 to explore the potential valuations of the FCSE service areas. Raftelis participated in multiple conversations with County administration in to discuss aspects of exploring a regional utility solution throughout the County.
