Revenue Sufficiency Analysis FY25

The contract is for revenue sufficiency analysis services, including a comprehensive rate study, revenue sufficiency analysis, bond financial feasibility reports, connection and other fee studies, and utility system valuation reports. The contract has a term of 5 years with an option to extend for an additional 5 years. The contract value is estimated to be $52,996. The scope of work includes providing consulting services to Hernando County for projects related to water, wastewater, and reuse services. The consultant will perform tasks such as rate studies, revenue sufficiency analysis, and bond financial feasibility reports. The contract includes provisions for payment, termination, and dispute resolution. The key services to be provided under this contract include: • Rate Study: Conduct a comprehensive rate study to determine whether revenue is sufficient to meet all present and future operating and capital costs. • Revenue Sufficiency Analysis: Provide a multi-year projection of the sufficiency of the utility's revenues to meet all of its current and projected operating expenses, capital expenses, rehabilitation and replacement, bond covenants, and reserve requirements. • Bond Financial Feasibility Reports: Provide historical and estimated future projection of the revenue and expenses of the utility to demonstrate the ability of Hernando County to repay the desired borrowing amount(s) and meet all other financial requirements of the system. • Connection and Other Fee Studies: Review existing connection fees and develop capital charges that are designed to recover the cost of building water production and wastewater treatment facilities, and distribution and collection systems needed to serve new development. • Utility System Valuation Reports: Determine the value of a utility system for potential divestment or acquisition, and express an opinion and financial analysis showing results and if it meets current bond covenants.