Water, Wastewater, and Stormwater Utility Annual Revenue Sufficiency Evaluations
City of Grand Forks, ND

Since 1999, the City of Grand Forks has utilized AE2S’s financial services staff to review annual and projected revenue sufficiency for the water, wastewater, and stormwater utilities to determine the need for and justification of adjustment to utility rates.  These studies projected out 10 years for the water utility and five years for the wastewater and stormwater utilities.  In combination with these activities, AE2S also assisted in capital improvement planning (CIP) for these utilities.  A spreadsheet model was developed as part of this project, and was updated annually through 2002, when a new model was developed as part of the rate studies.  Presentations to the City Council were also included as part of the annual scope. 

Historically, the City of Grand Forks’ Public Works and Finance Departments collaborated annually to review the need for utility rate adjustments.  In addition, the Utility/Public Works personnel annually reviewed and revised the projected CIP.  The cash flow analyses completed by AE2S in conjunction with City staff from 1999 through 2002 streamlined these historical efforts by providing a spreadsheet tailored to assist with both future rate forecasting and annual CIP planning.  The spreadsheet accounted for future cost increases due to inflation, future debt attributable to projected capital projects in the CIP, and revenue increases attributable to projected growth of the customer base.