We contributed to the economic analysis and rate setting portion of a master planning effort for the City and Borough of Sitka’s harbor system. The plan laid out a schedule and cost estimates for replacing existing facilities as-is. The rate setting component utilized a life cycle costing approach to convert the scheduled replacement of each facility into an annualized cost, which became the basis for the level of moorage revenue needed. This revenue target was then used to determine the required rate increase for permanent and transient users, along with a 5-year plan for enacting those increases. Based on existing fund balances and options for matching grants, we also evaluated the need for and impact of using debt to pay for portions of the replacement work. This work took place in 2011–2012.
