CSO Long-Term Coniro] Plan Update/Integrated Plan
already identified by the City in its existing CIP, including, but not limited to, projects already in
design and construction. In addition to this base list of projects, the team will discuss and identify
other prospective projects that had previously not been considered because of funding constraints
or more pressing regulatory compliance schedules. In cases where discreet projects cannot be
identified, the team will identify recurring programs with funding allocations (such as annual
wastewater improvements) and those will be included as projects in the preliminary list. The intent
will be to identify a portfolio of projects that will benefit the City and satisfy regulatory
requirements.
Deliverables:
e Preliminary list of integrated plan ranking criteria, organized by environmental, social, and
economic categories
e Preliminary project scoring methodology and project inclusion guidelines
® Preliminary list of capital projects and/or recurring programs to be included in the planning
horizon
Task 6 — Financial Capability Analysis
Consultant will conduct an FCA for the purpose of providing the City with a “snapshot
picture” of its financial strength and the residential affordability relative to its current and
future CWA expenditure obligations. The USEPA issued guidelines for performing
FCAs in 1997 which established a two-step process to assess:
° Residential Ratepayer Affordability; and
° Municipal Financial Strength
Residential affordability is determined by the ratio of the cost per household of the CIP
compared to Median Household Income. EPA’s standard metric for measuring a “high
economic impact” is 2 percent of MHI. Municipal financial strength is based on a six
metrics that consider the municipality’s level of indebtedness, socioeconomic conditions,
and taxing capacity. Any additional guidelines specific to the state of New Hampshire
will be considered in these assessments. The results from the two assessments are then
combined to yield a numerical score that indicates the level of financial burden on the
municipality and its ratepayers attributable to current and planned future expenditures.
The FCA output is a high level and static depiction of the municipality’s financial
capacity to implement its CIP under its currently planned schedule. EPA has
acknowledged the deficiencies of the metrics established by the 1997 guidelines and
issued a revised set of guidelines in 2014. The 2014 guidelines allow permittees to
provide supplemental socioeconomic data that could better characterized the local
conditions of the permittee. Examples of socioeconomic data that could be provided
include but are not limited to:
Quintile Household income Data
Poverty Levels
Fixed income population
Demographic Trends
Housing characteristics (renter versus home ownership)
Cost of Living
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