Water-Sewer Rate Model - September 2012
Water-Sewer Rate Model
Released September 2012
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We conducted this audit of the department’s strategic financial planning model because Atlanta had the highest water-sewer rates in the country for a major metropolitan area as of FY 2011. The 2009 performance review of watershed management conducted by KPMG questioned some of the assumptions used in the model and suggested additional review of the model by stakeholders outside of the department.
- The department will likely generate sufficient revenue to maintain current water and sewer rates for the next four years as planned, and possibly longer.
- Changing certain assumptions for consistency with historical data results in higher than needed debt service coverage and a larger fund balance.
- While the current model projects annual rate increases of between 2% and 4% after 2016, smaller rate increases, or maintaining current rates longer, could be justified.