LRPC Report

The Long Range Planning Committee (LRPC) focus over the past month has been finalizing the 2018-2021 Cash Flow Analysis. This will be utilized to determine annual revenue required to meet total expenses as we move forward with the USDA Capital Improvement Project. This is also an annual submittal requirement to the USDA. As mentioned last month, there are numerous factors that must be forecasted including the number of meters installed and connected each year, interim loan interest payments during the construction period, USDA scope that we have funded up to construction and eli-gible for reimbursement, revenue required to meet our annual USDA loan payments, required USDA reserves, and other potential liens that must be considered. Based on the above factors, our first annual USDA loan payment of $437K will be due in 2020, at which time this expense will be factored into our rate structure.