CAP publishes rates biennially. It is part of the integrated framework of CAP financial planning processes. CAP rates are cost-based, designed to cover the costs that are incurred for the activity (water delivery, federal repayment, CAGRD, etc.). In the even years, a long-range financial plan is developed to project the district’s financial outlook over the next 10 years. Evaluating strategic reserve targets is also part of this process. These processes result in rates for the next six years: one year firm, one year provisional and four years of advisory rates. The provisional rates become firm the next year unless the Board of Directors takes specific action to modify them. The advisory rates are provided for our customers for their planning purposes and may be revised as new information becomes available, particularly on energy, which is the most volatile water delivery rate component. In the odd years, rates are reviewed to determine if an update is necessary.
During a two- to three-month period, rates are reviewed with customers and stakeholders at a stakeholder briefing, presented at the Finance, Audit and Power Committee meeting and ultimately approved by the Board of Directors as preliminary. The following month the Board of Directors will make the rates firm, which may or may not be the same as the preliminary rates.
As rates are one of the key financial activities of the District, care is given to ensuring the integrity and reliability of the system as well as the impact on our customers.
For additional information, please contact Douglas Dunlap, CPA, Finance and Accounting Manager, at firstname.lastname@example.org or 623-869-2360.