Malcolm Pirnie - Developing a Financial Foundation for the Future

Financial Services

SOLUTIONS FOR:

Projects

Developing a Financial Foundation for the Future

Cost-of-service evaluation and rate study

Client:	City of Reno, Nevada
Project:	Wastewater Cost-of-Service Evaluation and Rate Study
Location:	Reno, NV

Issue

The City of Reno has experienced rapid growth in recent years, creating a significant need for capital projects to renew/replace wastewater facilities and add capacity for future growth. The rapid growth of the city has also led to a parallel rise in the cost of living for residents.

Solution

Malcolm Pirnie's Red Oak Consulting division completed a financial planning study to help manage the inevitable rise in customer rates. Using our expertise in utility financial management, we conducted a wastewater rate study that determined the adequacy of existing rates and fees, and forecasted the future costs of the expanding operations. We also assisted the city in planning for future capital improvements by optimizing the rate structure and identifying potential non-rate sources of funds that would result in the lowest impact on utility rates.

BenefitS

The City of Reno can be assured of availability of adequate revenues to cover both planned expenditures and all reserve requirements associated with existing and future debt. Our interactive approach facilitated development of a rate structure that meets the city’s goals of rate defensibility and equitable payment for growth.