On August 21, 2017 the Utility District Board approved staff to undertake a rate study in response to the Mangonia Park utility services contract. PRMG was authorized to provide Utility Rate and Financial Consulting Services for the Utility Special District; the purpose of the Study was to develop a Water and Wastewater Revenue Sufficiency and Rate Design Analysis. The most important objective of the study was to develop proposed utility rates that meet the expenditure requirements of the individual water and wastewater utility systems. The water and wastewater utility systems rates must be able to maintain sound financial operations and to fund the anticipated capital needs of the utility system.
On January 29, 2018 PRMG submitted the Preliminary Water and Wastewater Revenue Sufficiency and Rate Design Analysis; PRMG’s Report provided a basis for the recommended rates, fees and charges for the water system and wastewater system; and these rates, fees and charges are necessary to meet the near term expenditure requirements of the water system and wastewater system for a period of five (5) fiscal years; this update modified the initial recommendations as to the annual rate adjustments required for long-term sustainable service.