- Operational Assessment and Financial Plan Development
The study prepared included a review of the Department of Municipal Service work plan. The study consisted of two major tasks:
- Evaluation of the organization and operations of the municipal power plant — the operational assessment
- Development of 10-year financial plans
The operational assessment of the Municipal Power Plant included an evaluation the organization’s effectiveness in achieving desired results, an evaluation of the economy and efficiency of operations, and an evaluation of the impact of compliance with relevant environmental laws and regulations.
Effectiveness was evaluated in terms of the power plant’s goals and objectives. The adequacy of resources and whether resources were organized and used appropriately was also evaluated.
The six primary steps utilized in conducting the operational assessment for the power plant included:
- Startup, orientation and planning
- Data collection and interviews
- Conduct organizational analyses
- Draft report
- Strategy development and review meeting
- Final report
The study objectives were to analyze the Department of Municipal Service’s current policies and practices for funding its utilities’ operations, capital improvements and debt service requirements. A strategic financial plan was developed to assist the department in meeting service policies and objectives, developing necessary capital structure changes to remain in compliance with bond covenants as well as rating agency criteria, and determining annual overall revenue adjustments necessary to ensure revenue sufficiency.