Funding Public and Municipal Water and Wastewater Utilities

Live Streaming Online September 27-29, 2023

An EUCI Program

Click Here to register $1195

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event


Municipalities, public water systems, and wastewater utilities face a greater need for capital funding than ever before to pay for new infrastructure, system expansions, renewal and replacement of existing facilities, and to meet increasingly stringent environmental regulations and compliance requirements.  As federal and state grant funding programs continue to be reduced and/or eliminated, these entities must focus on the following tactics to successfully acquire water utility funding:

  • Planning for the funding of future capital needs
  • Finding alternative sources for capital funding
  • Developing and securing funding mechanisms that will meet the capital needs of the system
  • Mitigating the rate impact on customers

In addition, it is imperative for municipalities, public water, and wastewater utilities to be knowledgeable of the debt utilization process, requirements for issuing bonds, and other system expenditures. Charges like operating expenses, capital costs, inter-fund transfers, etc. can be applied in conjunction with other utility objectives (e.g. water conservation) to impact rate setting decisions. 

This course will provide a clear overview of water utility funding utilization. Attendees will learn to maintain the operational and financial health of the water and wastewater utility systems by studying the following topics:

  • Benefits of effective long-term financial planning
  • Capital expenditure needs (e.g. new customer growth, regulatory compliance, etc)
  • Common funding sources (both internal and external sources) available for capital projects

Learning Outcomes

  • Discuss the evolution of the water and wastewater industry
  • Review different types of utility ownership
  • Discuss the basic financial elements for a water and wastewater utility (IOU/Muni)
  • Explain the basic elements of financial reports for a water and wastewater utility
  • Recognize the need for long term financial and capital planning
  • Discuss capital improvement programs and their financial impacts
  • Identify common capital funding sources
  • Discuss debt funding and rating agencies
  • Define basic cost of service approaches
  • Determine common sources of utility revenues
  • Breakdown common revenue requirements
  • Identify rate structure types and relative impact on customers
  • Review important key performance indicators
  • Describe the rate design process



9:00 a.m. – 12:00 p.m. : CENTRAL TIME


Overview of Funding Public and Municipal Water and Wastewater Utilities

  • History of American Public Water/Wastewater Utilities
  • Impacts of the EPA and the Safe Drinking Water Act
  • Regulated Utility Services – Electricity, Gas & Water
  • Basic Ownership Types – Public vs. Private

The Real Cost of Water

  • Water Usage Nationally and Regionally
  • Cost of Water vs. Other Utility Services
  • Cost of Tap Water vs. Bottled Water

Public Utility Financial Basics

  • Revenue Sources & Expenditure Needs
  • Common Cashflow Components
  • Financial Needs – GAAP vs. Cashflow

Long-Term Financial Planning for Municipalities and Water and Wastewater Utilities

  • Forces That Impact Utility Planning
  • Financial Reporting vs. Financial Planning
  • Capital Improvement Programs

Funding Capital Projects

  • Common Capital Needs
  • Expansions, Upgrades & Replacements
  • Planning Documents
  • External & Internal Funding Sources

External Funding Sources for Municipalities and Water and Wastewater Utilities

  • Debt Instruments
  • Government Programs
  • Private Party Contributions


9:00 a.m. – 12:00 p.m. : CENTRAL TIME

Internal Funding Sources for Municipalities and Water and Wastewater Utilities

  • Monthly User Rates
  • Cost of Service Analyses
  • Cost of Service Excel Demonstration
  • Impact/Capacity Fees
  • Buy-In Method
  • Incremental/Marginal Cost Method
  • Combined Method
  • Capital Reserves

Emerging Financial Planning Trends & Topics

  • Stormwater as an Enterprise Fund
  • Resource Scarcity
  • Draught Rates
  • Affordability
  • Reclaimed/Reuse Water
  • Regionalization

Revenue Enhancement Opportunities for Municipalities and Water and Wastewater Utilities

  • Miscellaneous Service Charges
  • Advanced Metering Technology


9:00 a.m. – 12:00 p.m. : CENTRAL TIME

Rate Studies & Analyses for Municipalities and Water and Wastewater Utilities

  • Common Rate Setting Objectives
  • Data Requirements
  • Test Year Expenditure Requirements
  • Customer & Usage/Flow Analyses
  • Pivot Table Demonstration
  • Status Quo Revenue Projections
  • Projected Operating Results (Comparison of Revenues to Expenditures)

Designing Rates for Municipalities and Water and Wastewater Utilities

  • Rate Component Cost Allocations
  • Rate Setting Considerations
    • Full Cost Recovery
    • Impact on Existing Customers
    • Goals & Objectives of the Utility
    • Competitiveness with Surrounding Utilities
  • Rate Design Excel Demonstration
  • Key Performance Indicators (KPIs)
  • Balancing Financial Plans vs Political Reality
  • Dashboard Demonstration
  • Conclusions

Wrap Up and Adjourn