- Post Rock Water Treatment Plant Value
Our team completed a report pertaining to the determination of the value of the Post Rock Water Treatment Plant. The value developed was based on a Reproduction Cost New Less Depreciation (RCNLD) estimate. Our valuation was completed to assist in the evaluation of potential acquisition of the plant by the city. The RCNLD estimate was prepared to determine the estimated fair market value of the plant. The RCNLD was used to determine the potential acquisition price and was not necessarily the amount the city would pay for acquiring the plant. This valuation was used to make an initial determination of the level of rates necessary to support the potential acquisition.
Handy-Whitman Indices and trend factors applicable to each major plant component were used to escalate the original cost for plant equipment. Iowa Survivor Curves were used to assist in determining the proper amount of depreciation.