Murraysmith Inc. 4/12/2021 - Laserfiche WebLink

Murraysmith-City of Everett March 2021 Sewer Utility Financial Plan page 2 Subtasks will include: • Historical Financial Performance. » Review and document the historical financial performance of the sewer utility for up to six years, utilizing the financial statements. • Financial Policies Evaluation. » Review the financial policies that were utilized in the 2020 rate study, which will help serve as key boundary markers in the funding strategy scenarios (e.g., operating and capital reserves, capital funding strategies, debt management, etc.) • Capital Financing Framework. » Set up the framework to evaluate various capital financing plans for the CIP. The analysis will include the ability to update key variables such as project costs, project timing, potential borrowing and financing options, and resulting cash flow and cash balances. • Operating Forecast. » Forecast operating costs based on the most recent budget documents available. In addition, incorporate growth forecasts, integrate additional operating expenses, if any, resulting from the CIP and any other known changes in operational requirements. • Financial Strategy Analysis. » Integrate financial policies, capital financing impacts, and the operating forecast to develop a financial needs forecast over the study period. » Compare forecasted financial needs against forecasted revenue under the City's adopted multi-year rate ordinance to determine what level of balancing might be needed to keep the utility sufficiently funded throughout the study period. For example, some capital projects, capital programs, or operating programs may need to be delayed or reduced in scope to keep the utility funded on a standalone basis. » This scope allows for up to three(3) revenue requirement scenarios. Task 4 I Meetings & Presentation Materials Prepare for and attend up to two(2)remote meetings with City/Murraysmith staff to review the draft analysis and presentation materials. Prepare for and attend up to one(I)remote workshop meeting with City staff to present study results. These are assumed to be remote meetings and have been budgeted accordingly (no travel). If restrictions on public gatherings ease during the study, we would be happy to attend onsite meetings, with a budget amendment to cover additional travel. Deliverables to include: • Two (2)project team meetings. For example: » CIP prioritization workshop to be led by Murraysmith(FCS GROUP to attend). » Preliminary results meeting with Murraysmith and City staff, to review results of FCS GROUP draft analysis. This meeting is prior to the Financial Strategy workshop. Feedback to be incorporated before workshop meeting. • One (I)Financial Strategy workshop with City staff to present the study results and recommendations. We are happy to provide additional meetings as requested. The additional meetings will be billed on a time and materials basis. •:;> FCS GROUP www.fcsgroup.com