Norristown Municipal Waste Authority Sewer Rate Study
The Norristown Municipal Waste Authority authorized Keystone Alliance Consulting to study rates charged within their service area. Emphasis was placed on structuring a rate that would produce sufficient revenue to meet the Authority’s increasing cost of operation as well as the issuance of $10,000,000 of debt to be used for capital projects. In addition the Authority was experiencing a lower than normal collection rate. Keystone took this situation into consideration in developing the rate and also assisted the Authority in taking steps to resolve it.
Keystone undertook the following in connection with the rate study:
• Reviewed the latest financial data, including the proposed operating budget.
• Determined the annual revenue requirements of the Authority’s operations for the study period and allocated those requirements between its fixed and variable components.
• Incorporated the debt service payments associated with the proposed borrowing.
• Compared the revenues projected for the study period under the current rate structures with the annual revenue requirements and quantified any deficiencies.
• Developed alternative rate structures consistent with the goals of the Authority.
• Compared the impact of these alternative rate structures on customers at various usage levels.
Keystone developed four alternative rate structures for consideration by the Authority. Once the Authority had made its preliminary selection Keystone assisted the Authority at a special public meeting to present and explain the rate structure.
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