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1. Executive Summary • Customer Deposits – Calculation of updated up -front refundable customer deposits applied to new customer accounts at the time service is established commensurate with IRCDUS' financial risk. Rate and Bill Comparisons – Compare the monthly water and sewer service to single-family residential customers of other neighboring communities at varying levels of water demand and the rate structure including fixed and variables charges. 1.3 RESULTS Based on the completion of the analyses described herein, Stantec has developed conclusions and recommendations for the County's water, sewer, and reclaimed water rates. The key findings and recommendations are outlined herein. 1.3.1 Revenue Sufficiency Analysis This analysis evaluated the sufficiency of IRCDUS' revenues to meet its current and projected financial requirements over a 10 -year projection period and determined the level of rate revenue increases necessary in each year of the projection period. Stantec thoroughly discussed the data and assumptions of the analysis with IRCDUS staff and reviewed alternative rate adjustment options. Through this process, Stantec identified that IRCDUS' existing rates do not generate sufficient revenues to meet the Utility's • current and projected operating and capital cost requirements beginning in FY 2024 and that a structural cash flow deficit exists such that reserves may be depleted by FY 2027 as summarized in Figure 1. Figure 1 - Cash Flows at Existing Rates $40 $30 ` $20 C $0 MA — 2 -$10 -$20 -$30 -$40 FY 24 FY 25 FY 26 FY 27 FY 28 FY 29 Operating Cash Flow Cash Funded Capital — — Reserve Balance L� Therefore, Stantec developed a financial management plan which included rate adjustments necessary over the projection period and proposed rates in FY 2025 and FY 2026 as summarized in Table 1. a 3