Public is that we've said the Pledge of Allegiance, and we're now on to the roll call.

Counselor Thompson, Malonus.

Here.

Demas.

Here.

Vickerson.

Zavi.

Here.

Hansen.

Here.

Pedri.

Here.

Bingham.

Mayor Mickelson.

Here.

And with that, uh, I would invite Raf Tellis up to give us their presentation.

Uh, Mayor, members of council, good afternoon.

My name is Todd Cristiano with RAF Tellis.

And today's discussion is a summary of what we've been working on over the past year since we came to you back last August to talk about the water, wastewater, and stormwater financial plan cash flow and rate study.

Uh today's focus is about um the rates or the rate design, the rate structures.

But we're going to take a little trip down memory lane here.

How do I get this thing to move?

Does the maybe it's a lot.

Oh, there's the okay.

Um as we get started, there was really three components to this study.

Um we had our financial plan, which is developed in the cash flow, tells us what amount of revenue do we need each year to fund our capital improvement program, our operations and maintenance expense, meter reserve targets, and all the other financial metrics.

Um the second and third part here is kind of what we're talking about today, this cost of service and rate design.

Really, we wanted to make sure that these two processes tell us uh how we can uh assign cost proportionally to the various customer classes you have, and then from that design rates are going to recover those costs both in water and and wastewater.

Um whoops, I'll have to go back up.

Um so a quick summary on the water utility financial forecast.

Um council approved a 7% annual re uh 7% annual revenue adjustment at the previous meeting.

We're funding about 40 million dollars in um capital improvements with cash.

We don't have any uh SPT funding in our scenario analysis.

Um we're able to, with those revenue adjustments, able to meet our target reserve of 90 days of operations and maintenance expense and our capital reserve as well, and obviously meets our debt service coverage requirement for any debt that we're going to issue over the study period.

So this just um was a way of adjusting revenues to make sure we sustained our financial health over the 10-year period for the water utility.

And this is what this looks like from a graphical standpoint.

Uh the bars here, the different colored bars uh just represent the type of expenditures you have.

Um the light blue bar just indicates if you did not have any revenue adjustments, and what that shows us is that your expenditures would be higher uh than the revenue you're taking in, and that's why we had proposed those revenue adjustments, and that's what the black line shows that over the 10-year period, those cumulative impacts of those revenue adjustments will help fund those annual expenditures and meet your uh debt service coverage and and reserve targets.

Um here's a quick survey of where we are with Rock Springs.

Um this 6131 here for water is based off of 1200 cubic feet, three-quarter inch customer, very typical customer.

Um this is the $61.31 cents resulting from the new rate structure that we have developed.

And I'll go into details about what that rate structure is.

So still kind of in the middle there.

Um, of course, we have other communities that might be adjusting their rates for 2027 that are not published yet.

So it's possible that you know the rockspurn rock springs bar could could move down or or up a little bit.

Uh sewer utility financial forecast, very similar story to water.

Um the only difference here is it's a nine percent annual revenue adjustment.

Again, no uh SPT funding.

We're achieving all of our reserve targets, both OM and capital.

Um, and we're able to maintain our uh debt service coverage retarget during the 10-year period.

And much similar to the water utility.

We have these uh this financial plan cash flow graph here.

Uh having the black line being above those expenditures shows that you are meeting or or building reserves over the next 10 years to fund future capital projects in the the next 10-year period.

And again, with sewer, this is what the where you would fall within your peers of the community based on this new proposed rate structure that uh we're proposing.

We're I'll show to you later.

Again, still kind of in the middle of the pack in comparison to your peers and obviously um other utilities might be adjusting the rates for fiscal year 27, which is not reflected here.

So that's the financial plan forecast.

That's what we had been working on.

We came to you in August of last year to talk about as well as in April here to talk about our proposals there.

The next part of this study was this rate structure development.