EHLERS TEAM LEAD: James Mann
TIME FRAME: 2016-Present

Capital Improvement/Financial Management Planning

CASE STUDY: Perry Park Water & Sanitation District, Colorado

The Goal

The City of Perry Park determined a need to better balance future operating and capital improvement demands against its revenue resources in 2016, but didn’t have the capacity to complete the required analysis.

The Solution

Perry Park engaged Ehlers for financial management planning services. Ehlers developed a financial management plan model that projected 10-years of future operational and capital expenditures. The model also evaluated Perry Park Water & Sewer District’s ability to raise revenues through various sources and what general rate increases would be necessary to keep the District on solid financial ground. We specifically leveraged the model to:

  • Review the District’s current financial position
  • Compile an inventory of financial resources
  • Analyze multiple expenditure & funding scenarios
  • Recommend water & sewer rate increases

Once the initial financial management plan was approved, our advisors collaborated with City officials to develop a framework to review and update the model – as well as corresponding policies – on an annual basis.

The Results

Using the financial management plan as its guide and anticipating the need to issue debt, the District implemented rate increases for sewer and water services. In early 2018, the District issued $2.65 million of direct Lease obligations to fund its first tranche of capital improvements.

Following the issuance of the 2018 Lease Obligations, Ehlers has worked with the District to update the financial plan on an annual basis. Identified in the first iteration of the plan, the Distict has been increasing recurring revenues to eliminate the reliance on non-recurring revenue. The structural change in how the District generates revenues will ensure the District remains on solid financial ground.