financial sustainability of water, waste water, and watershed management the tools of the trade
TRANSCRIPT
Financial Sustainability of Water, Waste Water, and Watershed Management
THE TOOLS OF THE TRADE
DAVID EBERLE
Idaho Power Company - Rate and Cost-of-Service Analyst
Adjunct Professor – Regulatory, Regional ,Urban ,and Environmental Economics
Director – Hotel ,Real Estate, Grocery, Manufacturing Businesses
Consultant – Economic Impact, Capital Plans, Asset Management , TIF, DIF, URDs
Commissioner - Boise City Urban Renewal District, Community Infrastructure District
Board member – Boise Valley Metropolitan Planning Organization
Council Member – Boise City Council
FINANCIAL SUSTAINABILITY GETTING YOUR BOARD COUNCIL OR MEMBERS TO PLAN FOR THE FUTURE
University ofSouthern Maine (R1)
SyracuseUniversity (R2)
University ofMaryland (R3)
University ofNorth Carolina (R4)
University ofLouisville (R4)
Cleveland StateUniversity (R5)
DominicanCollege (R9)
The Environmental Finance Center Network
A Resource for the Nation
Boise StateUniversityUSEPA Region 10
http://efc.boisestate.edu
The University-based Environmental Finance Center Network Provides Third-Party Assistance to Communities and Groups on Financing Environmental Compliance
New Mexico TechUniversity (R6, R8)
Wichita StateUniversity (R7)
http://efc.boisestate.edu/
Login/ Registe
r
THE TOOLS OF THE TRADEAND MONEY
Download these tools at http://efc.boisestate.edu
WHO WE WORK WITH
Plant Operators
Water
Wastewater
Stormwater
Clerk/Treasurers
Public Works Directors
Consultants – Public or Private
Watershed Districts
REALITY FOR MANAGING BOARDS
Am I at Risk? Will the system fail? Can we meet expected growth? Can we meet new regulations? Will your budget take money from other priorities? Will customers be happy with service and rates? Tell me the future will be OK.A sustainable system Affordable ratesLevel of Service meets expectations
Acceptable risk
PRINCIPLES OF THE BUDGET CYCLE
THE SUITE OF DASHBOARDS
Will the custome
rs by happy?
Covering expenses
Not saving for all capital
requirements
Inadequate saving for
plant replacemen
t
WHAT DOES WATER REALLY COST? IDEAS AND TOOLS FOR RATE SETTING
PRICING OF UTILITY SERVICE: FIVE BASIC STEPS
Full Cost Identification
What are the total costs of the utility?
Revenue AllocationHow much money is
needed for each utility function?
Select User Fee System What are our policy
goals?
Demand AllocationHow do we divide function costs based on customer
use? ImplementImplementUser FeeUser FeeSystemSystem
Operational Expenses
Amortized utility debt (P & I)Year 1 Year 20Year 5...
To
tal u
tilit
y c
os
ts
Financial needs should be reviewed annually to keep up with the full costs the system
NEW Rate Level without
FCF
Full cost funding level
New CapitalFacility Operating
New CapitalFacility Debt
FULL COST PRICING
PLAN2FUND AND PLAN TO FUND OPTIMIZING
The Watershed is a mosaic of public, private, and nonprofit land ownership encompassing a myriad of land uses.
Using a extensive collection of terms can broaden the sources of funding for your source water protection plan.
Identify stakeholders and land uses within a watershed to create a patchwork of funding opportunities.
“”COMMUNITY QUILT” CONCEPT OF FINANCING
Coordinating multi-disciplinary activities over a management cycle helps to address continuous watershed management needs.
Plan2Fund OPT Consensus Process
1. Identify and enter strategic plan objectives.2. Identify and gain consensus on decision rules.3. Achieve consensus on how decision rules will be
scored.4. By consensus, assign weighting to decision rules.5. Compare results.6. Share information.
Plan2Fund OPT Consensus Process
1. Identify and enter strategic plan objectives.2. Identify and gain consensus on decision rules.3. Achieve consensus on how decision rules will be
scored.4. By consensus, assign weighting to decision rules.5. Compare results.6. Share information.
SEARCH FOR IMPLEMENTATION SEARCH FOR IMPLEMENTATION FUNDINGFUNDINGSEARCH FOR IMPLEMENTATION SEARCH FOR IMPLEMENTATION FUNDINGFUNDING
An on-line, searchable database of financialresources for watershed restoration.
http://efc.boisestate.edu/watershed/
NATION WIDE REACH LOCAL IMPACT
EPA’S FOUR PILLARS OF SUSTAINABLE INFRASTRUCTURE
Better M
anag
emen
tB
etter Man
agem
ent
Fu
ll Co
st Pricin
gF
ull C
ost P
ricing
Water C
on
servation
Water C
on
servation
Watersh
ed A
pp
roach
Watersh
ed A
pp
roach
The Public’s Investment
The Public’s Investment
in Safe Drinking Water
in Safe Drinking Water
QUESTIONS
David Eberle
Environmental Finance Center
Boise State University
(208) 426-4293
EFC.boisestate.edu