Clarification of PFM Proposal
From
Littlestown
Sent
Fri, Sep 11 @ 10:04am
Description
To clarify the presentation that was posted online did not contain information specific to the Borough. It was general information prepared by PFM to provide an overview of the firm, the services it provides, and the type of work it could potentially perform for the Borough and Authority.
Below is some additional information based on the presentation and discussion that took place at the September 8th meeting.
The purpose of engaging PFM would be to assist with a long-range financial and operational review of the Borough’s water and sewer systems. The discussion included financial stability, future rate forecasting, capital planning, system redundancy, regulatory requirements, well productivity, testing costs, and future water-supply options. While the Borough currently has an adequate water supply, part of the discussion focused on the importance of proactively evaluating long-term options before an emergency or capacity issue occurs.
The discussion also included the possibility of a future interconnection with York Water as a redundant or supplemental water source. Two potential approaches were discussed. One option could require the Borough to fund the construction of a transmission line. Another option could involve a minimum water-purchase commitment, under which York Water would construct the necessary connection. These were discussed as potential future options and not as decisions that have been made by the Borough or Authority.
A representative from PFM explained that the firm performs financial and rate studies for municipal water and sewer systems. If engaged, PFM would evaluate revenues, expenses, available cash, capital needs, potential rate impacts, and various financial and operational scenarios. PFM also specifically clarified that the charts and financial information contained in the presentation were examples only and did not contain any Littlestown Borough or Authority data. If PFM is engaged, the first step would be for the Borough and Authority to provide the necessary financial and operational information for its review.
PFM stated that the proposed cost for the study would be $17,000 for one utility system or $25,000 to evaluate both the water and sewer systems. During the meeting, the Authority discussed the benefit of reviewing both systems because of their financial relationship and their respective long-term capital needs. PFM also agreed that reimbursable or discretionary expenses associated with the work could be capped at $1,000.
PFM stated that the proposed cost for evaluating one utility system would be $17,000 or $25,000 to evaluate both the water and sewer systems. Following the presentation and discussion, both the Authority and Borough Council approved motions to move forward with PFM’s evaluation of both the water and sewer systems at a cost of $25,000. The motions also capped reimbursable or discretionary expenses associated with the work at $1,000.
I hope this provides some additional clarification regarding the presentation, the discussion that took place, and the action taken at the meeting. The presentation was intended to explain the scope of the proposed study and the type of information PFM will evaluate. With both the Authority and Borough Council approving the evaluation, PFM will now move forward with reviewing the Borough’s water and sewer systems and developing information that can assist with long-term financial, infrastructure, and utility planning.
This notification was posted by Littlestown. Littlestown is solely responsible for this notification and unless specifically indicated, no other community or individual utilizing Savvy Citizen is sponsoring, responsible for, or endorsing this notification.
