Meeting Other Objectives

Transcription

1 Meeting Other Objectives Glenn Barnes Environmental Finance Center The University of North Carolina at Chapel Hill

2 So Far Today... Full cost recovery/ revenue stability Encouraging conservation Fostering businessfriendly practices Maintaining affordability

3 Rate Setting Objectives Full cost recovery/ revenue stability Encouraging conservation Fostering businessfriendly practices Maintaining affordability

4 Session Objectives Understand why water systems would be interested in these other objectives Learn about strategies to meet those objectives

5 Two Approaches Pricing signals through your rates Non-price strategies

6 Maintaining Affordability Full cost recovery/ revenue stability Encouraging conservation Fostering businessfriendly practices Maintaining affordability

7

8 First Things First There is no nationally accepted standard for affordability of water and wastewater service You know your own community the best. You should set the threshold for affordability

9 Also... There is a difference between someone who has a legitimate financial issue and someone who doesn t have the best priorities in life In other words, some people have an ability to pay problem. Others simply have a willingness to pay problem

10 Also... Percent MHI is a limited tool since it only shows you the middle customer in your community The American Community Survey has better data broken out by different income buckets

11 Water and Wastewater Residential Rates Affordability Assessment Tool Go to and search for Affordability Assessment Tool

12 Why Do This? Altruistic reasons Business reasons External pressure

13 What does your system do to maintain affordability?

14 Non-Price Strategies

15 Help Specific Customers Save Money

16 Help Customers Cut Water Use

17 Levelized Billing

18 Extensions

19 Payment Plans

20 Bill Discounts

21 Bill Discounts Astoria, OR

22 Arrearage Forgiveness Shippensburg, PA

23 Temporary Assistance Prince William County, VA

24 Compendium: Customer Assistance Programs (CAPs) EPA developed compendium with examples of different types of water and wastewater CAPs across the U.S. nancecenter/compendiumdrinking-water-andwastewater-customerassistance-programs

25 Navigating Legal Pathways to Rate-Funded Customer Assistance Programs

26 Lower the Cost of Providing Water Service

27 Non Revenue Water How can we limit the amount of water that leaks out of pipes and the amount for which we don t charge?

28 Asset Management How can we get the longest useful life out of our infrastructure, and will we be ready to replace it when necessary?

29 Energy Management What are ways that we can limit the energy needed to treat and deliver safe drinking water?

30 Water System Partnerships How can water systems work together to save money and improve service?

31 Pricing Signals Through Rates

32 Low Prices for All Water system serving about 2,000 people with an MHI below the state average

33 Low Prices for All Water system serving about 600 people with an MHI closer to the state average

34 Base Charge Includes Lifeline Wilkesboro, NC

35 Increasing Block with Low 1 st Block Winder, GA

36 Increasing Block with Low 1 st Block Clayton County, GA

37 Rates for Special Classes of Customers Plymouth Village Water and Sewer, NH

38 Income Based Rates Great Falls, MT

39 Income Based Rates

40 Business Friendly Practices Full cost recovery/ revenue stability Encouraging conservation Fostering businessfriendly practices Maintaining affordability

41 Why Do This? Increase water sales Increase wastewater revenue Increase the local tax base Create jobs

42 What does your system do to foster business-friendly practices and promote economic development?

43 Non-Price Strategies

44 Waiving Connection Fees The target businesses are primarily restaurants, breweries and other businesses with a high level of water use.

45 Bill Discounts for New Businesses Hannibal, MO

46 Pricing Signals Through Rates

47 Cheaper Commercial or Industrial Rates Camilla, GA

48 Cheaper Commercial or Industrial Rates Wayne Water District, NC

49 Decreasing Block Rates Ardmore, AL

50 Decreasing Block Rates Lancaster, NH

51 Increasing then Decreasing Block Rates Chattooga County, GA

52 Block Size Based on Meter Size A. Petersen Water Company, AZ

53 Block Size Based on Meter Size Metropolitan Domestic Water Improvement District, AZ

54 Negotiated Rates with Specific Large Customers Cullman County, AL

55 Encouraging Conservation Full cost recovery/ revenue stability Encouraging conservation Fostering businessfriendly practices Maintaining affordability

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57 Why Do This? Lack of source water Growing population Nearing storage or treatment capacity Drought Environmental benefits

58 What does your system do to encourage conservation?

59 Non-Price Strategies

60 Regular Water Use Restrictions Restrict days of the week Restrict time

61 Drought Restrictions

62 Drought Restrictions

63 Non-Potable Water for Irrigation

64 Help Customers Cut Water Use

65 Help Customers Cut Water Use

66 Fix Real Water Loss Water Exported Authorized Consumption Billed Authorized Consumption Water Exported Billed Metered Billed Unmetered Revenue Water Volume From Own Sources System Inputs Supplied To Your System Water Losses Unbilled Authorized Consumption Apparent Losses Unbilled Metered Unbilled Unmetered Unauthorized Consumption Customer Metering Error Systematic Data Handling Errors Non- Revenue Water Imported Water Real Losses Mains Leaks Service Leaks Tank Overflows

67 Pricing Signals Through Rates

68 Increasing Block Rates Napu u Water Inc., HI

69 Increasing Block Rates Currituck County, NC

70 Please Don t Do This!!!!!

71 Low or No Base Charge, Higher Volumetric Charge Farmington, NH

72 Seasonal Rates Cactus Stellar Limited, AZ

73 Seasonal Rates Ipswich, MA

74 Higher Irrigation Rates Stockbridge, NC

75 Low Supply Surcharges Tonto Hills Water Improvement District, AZ

76 Drought Surcharges Lake of Egypt, IL

77

78 Before we go

79 Designing Rate Structures That Support Your Objectives Free guide written for system managers Available at:

80 School of Government Resources on Enterprise Funds click on Publications A Guide to Billing and Collecting Public Enterprise Utility Fees for Water, Wastewater, and Solid Waste Services (Kara Millonzi) The Painful Art of Setting Water and Sewer Rates (Jeff Hughes)

81 Learn more about water finance and management through our Small Systems Blog! Blog posts feature lessons learned from our training and technical assistance, descriptions of available tools, and small systems success stories.

82 Navigating to Funding Tables Step 1: efcnetwork.org Step 2: Select Funding Sources by State under the Resources Tab

83 Click on an individual state to view funding table.

84 Tools Rates Dashboards Blog posts ( Guidebooks Technical Assistance Courses Videos

85 A Favor & A Reminder Please fill out an eval form for us before you leave Contact us anytime for direct technical assistance on any finance and management topic of our project

86 Thank you! Glenn Barnes Environmental Finance Center University of North Carolina at Chapel Hill