Wastewater Rate Study
In March 2009, the City of Casa Grande engaged Economists.com to conduct a wastewater rate study and long-term financial plan. The City identified numerous objectives for this study, including but not limited to the following:
- A comprehensive analysis and evaluation of the wastewater system’s current cost of service and revenue requirements
- A forecast of wastewater accounts, volumes and operating and capital costs for the test year and a period ten years into the future, taking into consideration such factors as inflation, system growth, and increases in staffing levels
- A thorough review and update of the wastewater system’s known capital improvement needs, as well as a determination of the need for funding capital requirements through the issuance of long-term debt
- A review of the adequacy and appropriateness of existing wastewater customer classes
- The development of a comprehensive long-term rate plan that would recover the City’s cost of service, ensure equitable, just and reasonable treatment of identified customer classes, and maintain critical financial ratios
One of the critical factors driving the need for a long-term financial plan has been the City’s issuance of approximately $62.5 million in long-term debt to overhaul and expand its wastewater treatment plant. The principal and interest associated with this debt issuance has significantly increased the City’s overall cost of providing wastewater service.
Solid Waste Rate Study
In April 2009, the City of Casa Grande retained R. W. Beck, Inc. to conduct a cost of service and rate design study (Study) for the solid waste utility. The purpose of this study is to determine the total cost of providing solid waste services, equitably distribute the cost to customers, and design rates to safeguard the financial integrity of the utility. This Draft Report summarizes R. W. Beck’s key findings and proposed rates.