Warwick Township Water and Sewer Rate Study
The Warwick Township Water & Sewer Authority, located in Bucks County, authorized Keystone Alliance Consulting to review its current water and sewer rates and recommend rates that would satisfy its revenue requirements. Keystone preformed the initial rate study in 2000 and that initial study has been updated in 2002, 2004 and 2008.
Similar to the previous rate studies, Keystone undertook the following services in connection with the analysis and update:
• Reviewed the latest audited financial statements, the current operating budget with year-to-date receipts and expenditures, the proposed operating budget for the next year, debt service schedules, and current growth projections.
• Determined the annual revenue requirements of the Authority’s operations and allocated those requirements between the water and sewer systems.
• Compared the water and sewer revenues projected for the study period under the current rates with the annual revenue requirements.
• Prepared revised rates and charges for the Authority’s water and sewer systems.
• Prepared projected cash flow statements under the proposed rates for the study period for both the water and sewer systems.
• Calculated the impact of the revised rates on customers at various usage levels.
The Authority at the request of system customers directed the study to address extensive use of water for irrigation and other non consumptive use. A sewer rate was developed and implemented over time that addresses this situation but still insures that the Authority will generate the required amount of sewer revenue.
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