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“The course was more than I expected! Money well spent!” – Director of WPCF, Town of Wareham
“The course was extremely beneficial for what I do for my organization.” – Management Analyst, City of Santa Ana – Public Works Agency
“EUCI is very good about delivering practical and appropriate training for me, as an industry professional.” – Consumer Services Manager, IREA Partners
Municipalities and public utilities face a greater need for operations and 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 operational and capital needs
- Identifying and securing sources for capital funding
- Mitigating the rate impact on customers
This course will provide a clear overview of utility rate and financial planning. Attendees will learn techniques for ensuring the operational and financial health of the 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 basic financial elements for a utility (IOU/Muni)
- Explain the basic elements of financial reports for a public 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
WEDNESDAY, SEPTEMBER 4, 2024
9:00 a.m. – 12:00 p.m. Central Time
Introductions
Overview of the Financial Planning Process
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
- Internal & External Funding Sources
External Funding Sources for Municipalities and Water and Wastewater Utilities
- Debt Instruments
- Government Programs
- Private Party Contributions
Interactive Financial Planning Modeling
THURSDAY, SEPTEMBER 5, 2024
9:00 a.m. – 12:00 p.m. Central Time
Financial Planning Revisited
Internal Funding Sources for Municipalities and Water and Wastewater Utilities
- Cost of Service Analyses
- Cost of Service Excel Demonstration
- User Rate Options
- Rate Design
- Impact/Capacity Fees
- Buy-In Method
- Incremental/Marginal Cost Method
- Combined Method
- Capital Reserves
Rate Studies & Analyses for Municipalities and Water and Wastewater Utilities
- Common Rate Setting Objectives
- Data Requirements
- Test Year Expenditure Requirements
- Customer & Usage/Flow Analyses
- 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
- Balancing Financial Plans vs Political Reality
Emerging Financial Planning Trends & Topics
- Reclaimed/Reuse Water
- Regionalization
- Resource Scarcity
- Drought Rates
- Affordability
FRIDAY, SEPTEMBER 6, 2024
9:00 a.m. – 12:00 p.m. Central Time
Financial Plan Revisited
Pivot Table Demonstration
Other Considerations and Trends
- Stormwater as an Enterprise Fund
- Advancements in Metering Technology
- Key Performance Indicators (KPIs)
Wrap Up and Adjourn
- Conclusions
- Unresolved Questions
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