Webinar: Benchmarking Water and Wastewater Rates in Illinois

Transcription

1 Webinar: Benchmarking Water and Wastewater Rates in Illinois A webinar in partnership with the Illinois chapter of the AWWA David R. Tucker, Project Director Environmental Finance Center School of Government University of North Carolina at Chapel Hill Wednesday, February 24, 2016

2 Contact Information: David R. Tucker Environmental Finance Center at the University of North Carolina, Chapel Hill School of Government (919)

3 Dedicated to enhancing the ability of governments and other organizations to provide environmental programs and services in fair, effective, and financially sustainable ways through: Applied Research Teaching and Outreach Program Design and Evaluation How you pay for it matters 3

4 Smart Management for Small Water Systems by the Environmental Finance Center Network under a Cooperative Agreement with the US EPA The EFCN provides training and technical assistance to small public water systems in all fifty states and five territories to help local water systems achieve and maintain compliance with the Safe Drinking Water Act. Workshops, trainings and direct assistance are provided on: Asset Management Fiscal Planning and Rate Setting Water Loss Reduction Energy Management Water System Collaboration Funding Coordination Managerial and Financial Leadership Workforce Development Sign up for direct assistance at

5 Objectives Become familiar with features and benefits of our Northeast Illinois Water and Wastewater Rates Dashboard. Learn how to compare one water system s rates with those of other systems. Learn how to apply financial benchmarks like operating ratio to your system.

6 Polling Question 1 What kind of water and/or sewer utility do you represent? Municipality For-Profit Not-For-Profit Special Purpose District Not a Water/Sewer Utility

7 Polling Question 2 What size water and/or sewer system does your utility operate (by # of people served)? Very Small (500 or fewer people served) Small (501 to 3,300 people served) Medium (3,301 to 10,000 people served) Large or Very Large (10,001+ people served) Not a Water/Sewer Utility

8 Polling Question 3 What utility management and finance topic are you most concerned about? Affordability Communication Conservation Cost Recovery Rate Setting

9 Rates in Illinois 2013 Water and Wastewater Residential Rates Survey of Northeastern Illinois (IISG ) Conducted by Margaret Schneemann and others at the Illinois-Indiana Sea Grant Program for municipal utilities in the seven-county Chicago Metropolitan area (Cook, DuPage, Kane, Kendall, Lake, McHenry, and Will). The rates survey includes residential water and/or wastewater rate structures effective as of October 1, 2013, for 224 municipal public utilities in the state of Illinois.

10 Rates in Illinois 2013 Water and Wastewater Residential Rates Survey of Northeastern Illinois (IISG ) This Rates Dashboard was constructed as part of the Smart Management for Small Water Systems nationwide project of the Environmental Finance Center Network (EFCN). This dashboard was created under a cooperative agreement with the United States Environmental Protection Agency. No statewide (all counties) rate survey has been identified at this time.

11 Benchmarking Rates

12 Everyone needs safe drinking water!

13 Source of pride?

14 Comparing rates the old way Source: NC Triangle J Council of Government

15 What s wrong with it? Poor sample selection (number, types of systems) Comparing only one bill amount Comparing nothing besides rates pressure to keep rates low regardless of financial condition of utility ignores customers ability to pay ignores price signals and utility s policies

16 Solution: provide more information? 185 pages of wonderful tables, full of data you can use!

17 Water Rates Dashboards Created for AL, AZ, CO, GA, IL, MA, NC, OH, TX, VA, WI and Canada. Several more coming soon! Free, online, open to the public. Compares rates against multiple characteristics: Utility finances; System characteristics; Customer base socioeconomic conditions; Geography; History Compare to similar utilities (large samples): All utilities; similar service population; similar water source; using same rate structure; similar customer income; same type of utility; within 50 miles distance

18 Northeast Illinois Water and Wastewater Rates Dashboard

19 Polling Question 4 Would you like to subscribe to the Environmental Finance Center s blog? Yes No

20 Polling Question 5 If you are a small water system (10,000 or fewer people served), are you interested in receiving in-depth technical assistance? Yes No Not sure I d like more details

21 Smart Management for Small Water Systems by the Environmental Finance Center Network under a Cooperative Agreement with the US EPA The EFCN provides training and technical assistance to small public water systems in all fifty states and five territories to help local water systems achieve and maintain compliance with the Safe Drinking Water Act. Workshops, trainings and direct assistance are provided on: Asset Management Fiscal Planning and Rate Setting Water Loss Reduction Energy Management Water System Collaboration Funding Coordination Managerial and Financial Leadership Workforce Development Sign up for direct assistance at

22 Thank You Contact info.: David Tucker (919) Additional resources: Download more tools and resources View your state s funding programs matrix Attend in-person workshops or webinars Sign up for direct technical assistance Sign up for blog posts for small water systems systems_blog/ Sign up for blog posts on Environmental Finance u