Raftelis (previously Public Resources Management Group, Inc. (PRMG)) has been serving the utility enterprise for over 20 years on variety of rate, financial, and business consulting projects. The County’s Utility System provides: i) retail water service to approximately 158,000 accounts which translates to over 215,000 Equivalent Residential Connections (ERCs); and ii) retail wastewater service to approximately 133,000 accounts which equates to approximately 207,000 ERCs. Since 2013, the firm has also been assisting in rate and financial issues for the Solid Waste Division. The County’s Solid Waste System disposes of over 800,000 tons of waste annually and includes a 1,800 ton per day waste-to-energy facility (WTE), landfill, and a yard waste processing facility, serving over 302,000 residential disposal units and additional commercial establishments. Raftelis has developed detailed financial and business models for the two enterprise funds, evaluated rates for services, assisted in system financings and has provided other ongoing financial and business support projects. The following summarizes the services that have been recently provided to the County:
In 1995, Raftelis provided assistance to County’s Financial Advisor in the review of the financial condition of the water and wastewater utility system with emphasis on revenue recovery, use of capacity (impact) fees, and financial sufficiency and prepared report of our findings which included a list of several rate and cost recovery options to improve financial position. Subsequent to this financial evaluation, Raftelis assisted the County in what is referred to as the “Blue Ribbon Committee” sessions to develop an overall business and rate implementation plan for the utility. Raftelis assisted in the sessions and was responsible for developing detailed issues and recommendations regarding financial, rate, and capacity fee issues, performed detailed financial analyses as requested by the Committee, made presentations of financial results and evaluations, and attended all sessions with County. Subsequent to the sessions, Raftelis assisted in the development of a financial forecast of the System and attended presentations before Credit Rating Agencies and Bond Insurance Companies to promote the plan to improve the creditworthiness of the System.
During 1999, Raftelis developed a comprehensive rate evaluation and five-year revenue sufficiency analysis. Major highlights included:
In 2002, and as part of the revenue sufficiency evaluation, Raftelis assisted in the imposition of a Purchased-Water Pass-Through Adjustment Charge to assure that all purchased water rate adjustments were automatically passed through without the need for a formal rate evaluation. The analysis also included the implementation of revised water conservation consumption blocks to further promote water conservation as a result of increased mandatory water use restrictions being imposed by the Southwest Water Management District. Additionally, Raftelis designed revised reclaimed water rates to promote water resource conservation and for the full recovery of allocated costs for this business segment.
Since these studies, Raftelis has assisted the Department with the preparation of annual updates to the financial plan and rate implementation program and has assisted in making further refinements and rate adjustments as conditions have changed to assure that the System continues with its financial plan.
Raftelis has annually updated the financial model and revenue sufficiency evaluation each year to: i) evaluate compliance with the rate covenants as required by the Bond Resolution that authorized the issuance of the outstanding debt; and ii) to assure compliance with the overall financial plan developed for the County. Activities have included:
The County regulates the rates of private utilities located in the County; this jurisdiction does not rest with the Florida Public Service Commission. Raftelis has provided regulatory rate consulting services as requested. Raftelis assisted the County in the evaluation of a utility rate filings submitted by the Windemere Utility Company (formal rate application) and Sunset Plaza Utilities, Inc. (staff assisted rate case).
Activities included:
Raftelis prepared an evaluation of the seven franchised utilities (which were remaining at the time of evaluation) to present information to the County regarding a potential acquisition value of each franchised utility. The analysis included (by franchise owner): i) a determination of a high-level replacement-cost-new-less-depreciation analysis; ii) preparation of an evaluation of the net present value of the estimated future cash flow of the system under private ownership (income approach); iii) prepared a debt capacity analysis (similar to the income approach) under public ownership to the net present value/bondable capacity; iv) prepared a comparable sales analysis for estimated like‑kind transactions; v) identified customer impacts associated with transitioning private rates to County rates; and vi) prepared a report documenting assumptions and analyses for County consideration.
Raftelis has prepared a financial forecast and revenue sufficiency analysis and model of the County’s Solid Waste Division, which includes both disposal and collection services. The financial forecast and model was prepared to evaluate the current and projected fiscal position, support the development of collection and disposal fee rates for service, and develop a funding plan for ongoing capital re-investment. The financial forecast encompassed a six‑year planning horizon. Study tasks have included:
Raftelis has annually updated the financial and revenue sufficiency model in support of annual budget process, to review the financial position of the system, and to maintain compliance with the overall business plan adopted by the Board of County Commissioners.
Raftelis prepared bond feasibility disclosure reports in support of the issuance by the County for both its Utility System and the Solid Waste System. With respect to the Utility System, Raftelis initially assisted the County and its utility counsel with the issuance in the aggregate principal amount of $150,000,000 Utility Revenue Bonds, Series 2010A, B, and C (included Federally Taxable – Build America Bonds and Recovery Zone Economic Development Bonds) and in the aggregate principal amount of $207,795,000 Utility Revenue Bonds, Series 2016 in support of the County’s capital improvement program. Raftelis recently prepared an updated financial forecast to support the Utility Revenue Refunding Bonds, Series 2019 is currently working on a bond feasibility study to support the issuance of the proposed Series 2021 Additional Revenue Bonds. In preparation of the bond feasibility disclosure reports, Raftelis developed a financial forecast in support of the bonds. Responsibilities included: i) detailed financial projection of customers and sales, revenues, and expenses, recognizing the current economic and market conditions; ii) prepared a capital funding plan and assisted staff in timing of project implementation; iii) prepared an additional bonds test for bond issue compliance; and iv) assisted in rating agency presentations. Raftelis was also instrumental in drafting revisions to the bond resolution to reflect updates in financial reporting, changes in operations (e.g., Build America Bonds subsidies, impact fee use and wholesale water supply, etc.) and to improve ability to comply with the intent of the resolution by the County.
In addition to the utility system bonds described above, Raftelis has prepared a bond feasibility disclosure report in support of the issuance by the County of $89.010 million aggregate principal amount of Solid Waste and Resource Recovery Refunding Revenue Bonds, Series 2016A (AMT) and $25.55 million aggregate principal amount of Solid Waste and Resource Recovery Refunding Revenue Bonds, Series 2016B (Non AMT) to achieve interest rate savings. Raftelis’ services included the preparation of a 6 year historical rate covenant compliance and “flow of funds” trend analysis, development of a detailed financial forecast of Solid Waste System operations and cash flow for bond resolution compliance purposes, preparation of a comprehensive feasibility disclosure report which included financial projections and the evaluation of rate covenant compliance, assisting the County in amending the Solid Waste Bond Resolution, and assisting the County and its financial advisor with the presentation of the system financial position to the bond rating agencies.
In 2007, the County managed 779 street lighting districts consisting of over 125,000 residential property owners (includes single family, multifamily and apartment residential parcel classifications) and a small number of commercial parcels located in the County’s unincorporated area (the “Program”). To serve the approximate 125,000 parcels, the Program includes 33,623 lights or fixtures and 28,910 poles. The rates for street lighting service had not been raised or adjusted in fifteen (15) years. PRMG was tasked to:
Raftelis prepared a rate‑phasing plan to adjust rates to fully recover the cost of service and assisted in the update of the Street Lighting Ordinance and the assessment (rate) resolution required for notice to the customers and to adopt the rates, which was approved by the Board of County Commissioners.
Raftelis has also assisted the County with the following utility services:
