Bedminster Financial Feasibility Study
Keystone Alliance Consulting was hired by the Bedminster Municipal Authority to perform a financial feasibility study for a proposed water and sewer system. The proposed sewage and water facilities were to be constructed with sufficient capacity to serve the proposed residential housing units to be developed by the Sewer Group. The facilities were intended to be dedicated to the Authority upon completion, and the Authority will assume responsibility for their operation and maintenance thereafter. In addition the Sewer Group has granted the Authority the option to purchase capacity in the new sewage treatment plant for its current customers, which are served by the Authority’s Stonebridge facility.
The report utilized several sources of financial data, specifically growth projections provided by the Sewer Group, operation and maintenance expenses supplied by the Authority’s Consulting Engineer, Pennoni Associates, and baseline revenue and expenses extracted from the Authority’s annual audit report. Expenses were factored to incorporate growth and inflationary pressure. Revenues were augmented by the inclusion of reservation charges imposed on the Sewer Group for housing units allotted capacity but not connected to the system in any given year.
The final report analyzed the impact of the proposed capital projects, taking into account the capital costs, operating costs, customer growth, funding alternatives and the impact of inflation. Through this process sensitivity analysis was performed and the Authority was provided with a clear understanding of the financial impact of the proposal ownership arrangement.
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