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• <br />• <br />• <br />Work Plan <br />Objectives) <br />The purpose of this study is to assist the City of Lino Lakes in evaluating the financial <br />operations of its Water and Wastewater Utilities to determine the necessary level of user <br />fees and charges that will provide adequate cash flow to pay for current plant expenditures, <br />anticipated future operating and maintenance expenses, debt service including principal and <br />interest, utility improvements asset replacement, and adequate cash reserves. Rate <br />recommendations will reflect the each Utility's recent cost experience as well as anticipated <br />future costs during the nominal period for which rates are projected. <br />Water and Wastewater Fee Study <br />Springsted <br />May 2007 <br />Task I Review Background Information <br />➢ Internal review of background information: <br />- Review historical financial information, volumetric rates, basic facility <br />charges, contractual charges and other fees and charges that provide <br />sources of revenue for each Utility <br />Review the current allocation of costs to functional cost components and to <br />rates and charges for each utility <br />— Review any current allocations of capital costs to connection and other <br />charges and fees for each utility <br />- Review current and historical billing data for each utility <br />- Review current funding practices, funding sources and policies related to <br />financing capital improvements for each utility <br />- Review and update the City's existing capital improvement plan for each <br />utility identifying the sources of funding for each improvement <br />— Review any existing debt service coverage requirements for both senior <br />and subordinate debt and the impact of adding additional debt to finance <br />new capital improvements for each Utility <br />- Review ordinances, policies and practices related to user fees, connection <br />fees and other charges for utility services <br />- Review the historical growth of the customer base and projections for <br />anticipated growth for each utility <br />- Review any engineering studies, cost of services studies and other relevant <br />studies related to each Utility <br />- Review the planning period to be used in the study <br />Analyze information and develop preliminary availability fees for each Utility <br />and cost of service analysis for each Utility <br />— Analyze the information to identify any omissions and/or inconsistencies <br />and collect additional information, as needed <br />