Raftelis has worked with the City of Pompano Beach (City) on many financial and rate consulting engagements dating back to 2005. We conducted a rate and financial planning study for the City’s water, wastewater, reuse, and stormwater utilities. The City’s utility rate structure is fairly complex and is structured around objectives to encourage water conservation and the efficient use of available water resources. As part of the study, Raftelis built a rate and financial planning model to develop revenue requirements for each utility using the City’s budget and capital improvement plan. Raftelis utilized the model to determine the self-sufficiency of each utility and the level of rate adjustments over the next five-year period necessary to ensure sufficient revenues and adequate debt service coverage. Raftelis recently assisted the utility in obtaining approval for water, sewer, and reuse rate adjustment for the next five years (2018-2022). Raftelis will use the model to assess the sufficiency of the approved rates annually. Raftelis also has used the model to calculate wholesale charges for a wastewater wholesale customer. The City also engaged Raftelis to conduct a separate impact fee analysis and a miscellaneous fee study to identify the cost-justified fees for new accounts, returned checks, tap fees, deposits, etc.
EUM Assessment
The City’s (CPUD) had undergone significant changes relating to organizational, regulatory, financial, staffing, and other issues. The CPUD was interested in an Effective Utility Management (EUM) assessment so that the results could be integrated into the organization’s management process and to assist in identifying initiatives that would directly benefit the operations of the utility. CPUD was also interested in being on the forefront leading the EUM charge by integrating the EUM framework into its operations and management.
Raftelis partnered with CPUD to introduce the EUM framework to senior leadership, departmental management, and operational staff to help link the organization across departmental boundaries. Raftelis conducted an independent evaluation to assess the extent to which CPUD was implementing and performing all 5 Keys to Management Success and addressing the 10 Attributes of EUM. The results of the workshops and interview sessions determined that the highest priority areas for improvement were infrastructure stability, employee/leadership development, and customer satisfaction. In addition, a list of key measures for each of the 10 Attributes as well as a prioritized list of initiatives for CPUD to more effectively address the 10 Attributes and 5 Keys to Success was developed.
