The tools of the trade

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

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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

[email protected]

EFC.boisestate.edu