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City of Santa Ana, CA I SANITARY SEWER AND WATER FINANCIAL PLAN <br />U A rate structure that incorporates elderly low- income programs <br />H A rate structure that incorporates emergency rates during <br />periods of drought or natural /manmade disasters <br />6.2 Analyze the current block sizes and seasonal rate differentials and <br />make recommendations to satisfy the California Urban Water <br />Conservation Council Best Management Practices, <br />6.3 Prepare comparison of revenues expected from each customer <br />class under proposed alternative rates and existing rates to <br />determine the adequacy of cost recovery. <br />6.4 Prepare comparisons of typical bills under the existing and <br />proposed rates for each customer class under various meter sizes <br />and levels of usage. <br />6.S Provide a comparison of existing and proposed sanitary sewer and <br />water rates to selected neighboring municipalities. <br />Task 7 — Rate Model <br />The objective of this task will be to develop two independent Microsoft <br />Excel spreadsheet analyses rate models that establish financial planning, <br />cost of service, and rate design procedures. These models will enable City <br />staff to periodically revise and update the projections of revenue and <br />revenue requirements, financial plans, cost of service analyses, and <br />design of adequate rates on a routine basis. The City will be able to use <br />the model to calculate annual rate adjustments or to conduct "what -if' <br />analyses reflecting the impact of changes in significant system variables <br />such as customer growth and volume projections, revised budgeted <br />revenues and expenditures, allowances for inflation, capital improvement <br />program schedules, and policy decisions. <br />Provided below are some screenshots of the Black & Veatch model that <br />reflects new trends in modeling and takes advantage of software <br />developments. Some examples of new model enhancements include: <br />Specifically tailored and designed to recognize the systems' unique <br />needs, characteristics and information base, including compatibility <br />with the City's budgetary and accounting systems. <br />0 Flexible capital improvement program scheduling allowing for changes <br />in costs, sources of funds, timing, and allowances for inflation. <br />Ability to develop financial plan cash flow alternatives for changes in <br />customer, volume, and revenue projections; budgetary revisions; <br />variations in timing and amounts of revenue increases; debt service <br />structuring and different capital improvement program scenarios; and <br />changes in other parameters. <br />BLACK & VEATCH I Methodology <br />