Logistics. At the top right corner of your screen: Control Panel: Attendee List

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1 Logistics At the top right corner of your screen: Show your control panel to submit questions and see answers All phones/microphones are muted for the duration of the webinar. Toggle between full screen/window screen view Control Panel: Attendee List Audio: please choose between speakers and telephone. If you do not hear audio right now, please check your speaker volume or enter #[audio pin]# if using phone. Submit questions in the Questions box at any time, and press [Send]. To undock and increase the size of the box, click on top right corner icon.

2 Webinar: Benchmarking Water and Wastewater Rates in Arizona David Tucker Project Director Lexi Kay Herndon Outreach Coordinator September 24, 2015

3 Registrants of this webinar

4 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 4

5 Water Infrastructure Finance Authority of Arizona Wastewater Drinking Water Arizona s water and wastewater funding source Affordable and efficient financing available year-round Loans: planning, design, improvement, construction, acquisition Technical Assistance Funding: planning and design phases Stormwater azwifa.gov Mission: Maintain and improve water quality by providing financial and technical assistance for water infrastructure throughout Arizona.

6 Objectives Become familiar with features and benefits of our *new and improved* Arizona Rates Dashboard. Learn how to compare one water system s rates with those of other systems. Learn how to apply some useful financial benchmarks to your system. Get a first look at this year s research report, including new sections like reclaimed water rates.

7 Polling Question 1 What kind of water and/or sewer utility do you represent? Municipality Privately Owned (ACC-regulated) Privately Owned (not ACC-regulated) Special District (DWID, DWWID, Sanitary) Not a Water/Sewer Utility

8 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

9 Rates in Arizona Water and Wastewater Rates Survey for the State of Arizona Conducted by the Water Infrastructure Finance Authority of Arizona and the Environmental Finance Center at UNC 392 water/wastewater rate structures 354 water/wastewater utilities Covers 90% of all Arizona water/wastewater utilities Covers 95% of all Arizona Community Water Systems by service population (per SDWIS) Associations, Co-Ops, Counties, Domestic Water/ Wastewater Improvement Districts, For-Profits, Municipalities, Not-for-Profits, and Sanitary Districts

10 Four Observations of Note from This Year s Water and Wastewater Rates Survey

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12 Economy of scale is evident for water services, but not as strong for wastewater services

13 Differences in rates charged by utility type are difficult to distinguish due to various factors

14 High water users will pay more if served by a smaller utility than a larger utility

15 Purchase Water systems that buy at least a portion of their water from another water system (either SW or GW) charge the highest rates

16 Drinking Water Rate Structures in Arizona Residential Water Rate Structures for 2015 Respondents (n=349)

17 Wastewater Rate Structures in Arizona Residential Wastewater Rate Structures for 2015 Respondents (n=132)

18 Water and Wastewater Base Charges in Arizona

19 New and Improved AZ Dashboard! On the EFC Website Go to: efc.sog.unc.edu and search for Arizona Water and Wastewater Rates Dashboard Or go to: rates/

20 Benchmarking Rates

21 Everyone needs safe drinking water!

22 Polling Question 3 What utility management and finance topic are you most concerned about? Affordability Conservation Cost Recovery Rate Setting/Communicating Rates Reclaimed Water

23 Source of pride

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

25 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

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

27 Water Rates Dashboards Created for AL, AZ, CO, GA, IL, NC, OH, SC, TX, VA, WI and Canada. 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

28 New AZ Dashboard Features! New Financial Benchmarks Tab with four financial KPI s Much faster dashboard load and response times Easier to select utility from dropdown menu: type in name Ability to click on and select any utility on the map Tablet friendly format: view on your tablet device Can view rates at 500 gal/mo increments fr. 0 to 15 kgal/mo Ability to edit your utility's data, or add a new rates structure to the dashboard. These edits will be saved on your computer until you delete cookies (only you will see them)

29 Demonstrate the AZ Dashboard:

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31 Reclaimed Water Wastewater treated to varying levels of quality (Classes A+ to C). Common uses in AZ for Classes A+ and A reclaimed water: Environmental restoration Groundwater recharge Industrial uses Landscape irrigation Power generation Reclaimed water pipes in Surprise, AZ

32 Number of Rate Structures Reclaimed Water Rate Structures By Utility Type (n=35) Municipality For Profit Sanitary District County/District

33 Price ($) Comparing Potable and Reclaimed Water Bills for Commercial Users (n=33) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 Potable- Middle 80% Reclaim- Middle 80% Potable- Median Reclaim- Median 1, Consumption (thousands of gallons)

34 Resources Subscribe to our Environmental Finance Blog Tools, trainings, assistance and resources for small water systems from the EFCN efc.web.unc.edu Follow us on

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

36 Smart Management for Small Water Systems 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: Asset Management Water Loss Reduction Water System Collaboration Fiscal Planning and Rate Setting Energy Management Funding Coordination, and Managerial and Financial Leadership Sign up for direct assistance at

37 Polling Question 5; and Evaluation survey link 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

38 Thank you! David Tucker EFC at University of North Carolina, Chapel Hill Melanie Ford WIFA of Arizona Technical Program Supervisor Lexi Kay Herndon EFC at University of North Carolina, Chapel Hill Susan Craig WIFA of Arizona Communications Director