Warrington Township directed Keystone Alliance Consulting to complete a water and sewer rate study. The goal of the combined study was to develop and recommend water and sewer rates that would address the following objectives:

• Provide sufficient revenues to pay the anticipated operating expenses and debt service.
• Recover the costs of both systems separately and equitably from all customers, to the extent possible, as required under the Township’s Trust Indenture.
• Determine the additional rate impact of addressing anticipated capital project on an ongoing basis.

The following services were performed in connection with the combined study:

• Reviewed the current financial statements and the projected operating budgets of the Township for the water and sewer operations as well as current growth projections.
• Reviewed pertinent debt service schedules.
• Determined the annual revenue requirements, i.e., operating expenses, debt service, and transfers, of the Township’s fiscal operations and allocated those requirements between the water and sewer systems for the study period.
• Compared the water and sewer revenues projected for the study period under the current rate structure with the annual revenue requirements.
• Designed alternative rate structures based on current customer usage patterns and anticipated growth that recovered the revenue requirements allocated to the water and sewer systems.
• Compared the water and sewer revenues projected for the study period under the proposed rate structure with the annual revenue requirements.
• Assessed the impact of the proposed rates on Township customers at various usage levels and compared the Township’s current water and sewer rates with the proposed rates.