System Valuation

Are you considering selling off your water or wastewater treatment system?  ARRO has the professional staff to assist your municipality or authority with complying with Act 12 of 2016, to provide a fair market valuation of your system.

In accordance with Act 12, modified Chapter 13 of the Pennsylvania Public Utility Code guidelines for utility System Valuation Experts:

  • ARRO is listed with the PA Public Utility Commission as a Utility Valuation Expert
  • ARRO can assist your municipal corporation or authority by determining a fair market value in compliance with the Uniform Standards of Professional Appraisal Practice, employing the cost, market, and income approaches.
  • ARRO, through its engineering expertise, can provide the needed technical assessment of the tangible assets to determine present value, depreciated value, and replacement cost.
  • ARRO can provide expert testimony on behalf of any application through the Pennsylvania Public Utility Commission relative to the work that we perform.

     

Our Services:

  • GASB 34
  • Market Value Appraisals
  • Financial Reviews
  • Cash Flow Analysis
  • Economy Evaluations- Economy Outlook, Trends, and History
  • Water Rate Appraisals
  • Property, Plant, & System Valuations
  • Growth Predictions & Market Analysis
  • Profit Margin Analysis
  • Expert Testimony
  • Witness Provision

 

GASB 34

Governmental Accounting Standards Board (GASB) Statement no. 34 was published in 1999. With the introduction of GASB 34, state and local governments were required to report the value of infrastructure assets, such as bridges, dams, water systems, wastewater systems, roads, etc. GASB 34 requires a more comprehensive accounting approach, intended to produce accurate financial statements of the overall condition of an infrastructure asset, available to the public.

These reports would determine how well governments maintained their infrastructure; whether cost-effective methods and preventative measures were being enforced to prevent costly replacement. GASB 34 also requires that related depreciation and preservation costs for assets are included within financial reports. ARRO completes GASB 34 assessments for our clients’ infrastructure assets to determine their overall condition, the depreciation that has occurred, and if any repairs are required.