Utility Rate Reviews

Rate studies that help keep your water, sewer and trash utilities self-supporting.

Overview

Rates your utility can stand behind

Utility rates have to cover operating costs, debt payments and the capital needs of an aging system, and they have to make sense to customers. Principals of Ranson Financial Group have developed a methodology for evaluating utility rate structures for cities and rural water districts.

Each review uses customized spreadsheet modeling to test whether current rates cover the system’s expenditures, then suggests a rate structure and shows the expected impact of any change. The decisions stay with your governing body. Our job is to give you clear numbers to decide with.

  • Customized modeling for each system
  • Scenarios for capital projects, reserves and new debt
  • Review calls with your clerk or bookkeeper

At a glance

SystemsWater, sewer and trash utilities
Who we serveCities and rural water districts
ContactHenry Schmidt

What we do

How we help

A rate review answers one question: are your rates doing their job? Here is what each review looks at.

Revenue sufficiency

Tests whether current rates cover operating costs, debt service and transfers, and forecasts results if rates stay the same.

Rate structure

Suggests an optimal rate structure and shows how a change would affect customers.

Capital planning

Builds planned and unplanned capital outlay into the forecast so rates reflect the system’s real needs.

Reserve funding

Models transfers to reserve funds that help the system handle emergencies and future projects.

Debt scenarios

Shows how loans or bonds for upcoming projects would affect the rates the system needs.

Council-ready summary

A summary of each scenario that staff and the governing body can use to choose a path.

Our process

Step by step

A clear sequence, with your staff and governing body informed at every stage.

 

01

Request a quote

Contact us for a customized cost estimate. Our fees are determined based on a variety of project-specific factors.

02

Send basic information

The date we receive your basic information sets your place in line, so the sooner it arrives the better.

03

Analysis

We check the data, ask for anything missing and begin the analysis.

04

Preliminary call

We go over preliminary figures with your clerk or bookkeeper, usually in 30 minutes to an hour, and align our forecasts with yours.

05

Final review

We present the current situation, any increase needed and the scenarios you requested. Your governing body decides whether and how to act.

FAQ

Common questions

How often should a utility review its rates?

Many systems review rates when costs change significantly, before taking on new debt, or every few years as part of budgeting. A review shows whether current rates are keeping pace.

Basic financial and usage information for the system, such as recent revenues and expenses, customer counts and usage, current rate schedules and existing debt. We will let you know if anything else is needed.

Yes. Scenarios can include planned capital projects, a budget for unplanned capital outlay, transfers to reserve funds and new loans or bonds.

Not necessarily. It shows whether current rates are adequate and what change, if any, each scenario would need. The governing body decides what to do.

Contact us for a quote.

Talk to us about your project

Contact Henry Schmidt, call (316) 264-3400 or email info@ransonfinancial.com.