With a population of nearly 100,000 people, Bend, OR is the sixth largest city in the state having doubled in size over only a 25-year period. To address the explosive growth being experienced by the community, our team was first engaged in 2013 to develop water, sewer and storm water financial plans and rate strategies in support of utility infrastructure expansion. We have subsequently been retained under a series of long-term on-call contracts to assist the city with regular utility rate updates, funding forecasts for capital infrastructure projects, and rate structure modernization in light of evolving goals and objectives. Projects included:
- Developed water, wastewater and stormwater cost of service rate studies that involved preparing 30-year financial plans and rate strategies that are recalibrated annually.
- Evaluated financing alternatives associated with funding a combined $1.3B in capital infrastructure investment identified in the utility’s comprehensive plans. Funding alternatives looked at conventional revenue bond funding as well as low-interest loan and grant funding provided through the Oregon Department of Environmental Quality (DEQ).
- Detailed customer statistics analysis used to develop future demand forecasts by major customer category, allowing for different growth rates by class, resulting in dynamic revenue forecasts that reflect the sensitivity of demand changes.
- Customized rate model facilitating real-time sensitivity analyses resulting from changes to growth, debt funding, capital timing and rate increase phasing.
- Evaluated alternative customer classifications including single-family, multi-family, commercial, irrigation and large users for the water system and evaluated 5 strength categories – standard, low, medium, high and super high for the sewer system.
- Cost of service analysis evaluated distribution of cost allocation under current and new WWTP expansion.
- Rate modernization included developing a sewer rate option that considered maintaining existing flat rate for residential, eliminating the 1,000 cubic foot allowance and changing to volume and strength-based rates for all sewer customer classes.
- Developed initial rates and established rate differentials for the 5 high strength classes, including a per pound rate structure to apply to monitored water reclamation customers.
- Rate structure prioritization conducted with city council to provide consistency when evaluating rate design alternatives.
- Attended multiple workshops with the city ’s Infrastructure Advisory Committee and city council, as well as separate city council workshops for each utility to understand distinct issues, findings and alternatives.