Water Rate Study

The City of Cleburne, Texas is requesting quotes from qualified professional service firms for a water and wastewater rate study. The purpose of this study is to provide the City with information that will support a recommendation to City Council for potential short-term and long-term adjustments to both the rate structure and assessed rates. The study should calculate the full cost of providing water and wastewater services and recommend rates which will generate revenues adequate to recover the full cost of such services. • The consultant will analyze and obtain a thorough understanding of the water and wastewater fund’s financial condition. • The analysis is expected to include historical operating expenses, growth projections, evaluation of the City’s capital improvement program, and determination of funds needed to support the capital improvement program. • The consultant will provide a schedule of water and wastewater rates that have been developed to meet the objectives of being based on the respective costs of these services, being compatible with the existing billing software, and being easy to explain to customers and other lay persons. • The final deliverables will be a written report and an adjustable computerized rate model projecting out annual costs over the next five years, and projecting necessary revenues to cover such costs.