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Rate Analysis

A good rate analysis will do several things for you, including:

  • Show your current and future financial status under various scenarios
  • Help you develop new rates that are adequate, equitable and either proportional to use or proportional to cost to serve
  • Help you make grant and loan applications
  • Show your affordability index, operating ratio, coverage ratio and other important indicators
  • Show the rate effects of fixed and variable costs, repair and replacement costs, interest rates and inflation rates
  • Show the annual annuity needed for repair and replacement
  • Give graphical illustrations for management decisions and public meetings

To examine your rates, you have options:

  • You can devise your own analysis
  • You can hire a financial consultant to analyze your system
  • You can purchase commercial analysis software
  • You can have us do your analysis

To begin your rate analysis you need the following information:

  • Customer billing records for the year you want to analyze
  • Your user charge rate schedule, hook up and other relevant fees
  • Financial records for the year that includes the income received and the costs incurred
  • Flow volume
  • Your equipment repair and replacement schedule
  • The annual median income of your customers

Contact us today to begin your own FREE rate analysis!

 
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