Long Term Capital & Financial Planning for Municipal/Public Water and Wastewater Utilities
July 26-27, 2018
Denver, CO

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Overview

In today’s dynamic utility environment, managers face a greater need for capital funding than ever before to pay for new infrastructure, system expansions, renewal and replacement of existing facilities, as well as to meet increasingly stringent environmental regulations and compliance requirements.  As federal and state grant funding programs continue to be reduced and/or eliminated, utility managers must focus more attention on planning for the funding of future capital needs and finding alternative sources for capital funding.  In addition, they must get creative in developing and securing funding mechanisms that will meet the capital needs of the system while mitigating the rate impact on customers.

This course will address the benefits of effective long-term financial planning, the factors that drive capital expenditure needs (e.g. new customer growth, regulatory compliance, etc), and the common funding sources (both internal and external sources) available for capital projects.  In addition, since the utilization of debt has become increasingly prevalent in the public utility industry, it is imperative for managers and directors to become informed and knowledgeable of the process and requirements for issuing bonds. The course will show how debt requirements and other system expenditures (operating expenses, capital costs, inter-fund transfers, etc.) are applied in conjunction with other utility objectives (e.g. water conservation) to impact rate setting decisions.  The general intent is to provide utility managers with a clear overview of how to utilize available funding sources to maintain the operational and financial health of the utility system.

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

Credits

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EUCI has been accredited as an Authorized Provider by the International Association for Continuing Education and Training (IACET).  In obtaining this accreditation, EUCI has demonstrated that it  complies with the ANSI/IACET Standard which is recognized internationally as a standard of good practice. As a result of their Authorized Provider status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standard.

EUCI is authorized by IACET to offer 1.1 CEUs for this event.

 

Requirements for Successful Completion of Program

Participants must sign in/out each day, be in attendance for the entirety of the course

Instructional Methods

This program will use PowerPoint presentations, Excel demonstrations, group discussions, as well as active participation.

Agenda

Thursday, July 26, 2018

8:00 – 8:30 a.m. :: Registration and Continental Breakfast

8:30 a.m. – 4:30 p.m. :: Course timing

12:00 – 1:00 p.m. :: Group Luncheon


Introductions


Overview

  • Background & History of American Public Water/Wastewater Utilities
  • Safe Drinking Water Act
  • Environmental Protection Agency (EPA)
  • American Water Works Association (AWWA)
  • Basic Ownership Types – Public vs. Private

Public W/WW Utility Financial Basics

  • Revenue Sources – Rates, Impact Fees, Miscellaneous Revenues, Other
  • Retail Rates and User Charges – General
  • Expenditures – O&M, Debt Service, PILOT/General Fund Transfers, Capital Costs

Long-Term Financial W/WW Planning

  • Master Plans
  • Capital Improvement Programs
  • Funding Options for Capital Projects
    • Grants
    • State Revolving Fund Loans
    • Revenue Bonds vs. General Obligation Bonds
    • Impact/Capacity Fee Revenues
    • Developer Contributions
    • Pay as you go Funding

Financial Planning Considerations

  • Full Cost Recovery
  • Impact on Customers
  • Goals & Objectives of the Utility
  • Competitiveness with Surrounding Utilities
  • Cost Based Fees/Charges (Growth Pays for Growth)
  • Projected Operating Results (Cash Flow Basis)
    • Debt Service Coverage Requirements
    • Reserve Fund Balance Goals
    • Rating Agencies and Interest Rates

Financial Planning Tools

  • Professional Assistance – Financial Advisors, Investment Bankers, Consultants, etc.
  • “Optimize” Debt Structure
  • Phasing of Rate Adjustments
  • Key Performance Indicators (Historical/Projected)
  • Benchmarking

Friday, July 27, 2018

8:00 – 8:30 a.m. :: Continental Breakfast

8:30 a.m. – 12:30 p.m. :: Course Timing


Overview of Typical Rate Structures and Charges

  • American Water Works Association (AWWA) Standards
  • Cost of Service
  • Meter-Based Structure & Equivalency Factors
  • Common Volumetric Rate Structures
  • Conservation Rates & Objectives

Designing Rates (Spreadsheet Presentation)

  • Review Rate Model Components
    • Utility Budget
    • Cost Allocations Between Water and Wastewater
    • Cost Allocations Into Rate Components (Fixed, Variable & Customer)
    • Customer and Flow Analysis (Rate Determinants)
    • Calculation of Revenues
    • Projected Operating Results (Cash Flow Statements)
    • Dashboard Demonstration
  • Algebraic Process of Revenue Neutrality
  • Balancing Financial Plans vs Political Reality

Wrap Up and Adjourn

Instructors

Daryll Parker, Principal Consultant, Willdan Financial Services

Mr. Parker resides in Winter Garden, FL, a small city just outside of Orlando.  He is a graduate of the University of Florida (Go Gators) where he earned an undergraduate degree in Marketing and an MBA.  For more than 24 years, Mr. Parker has been providing consulting services associated with the financial, strategic planning, management, and administrative aspects of water and wastewater utility systems.  His professional experience encompasses a wide range of financial and management related issues within the utility industry.  He has assisted both private and public utility systems throughout the United States with projects such as:

  • Utility Rate Studies (Water, Sewer, Reuse and Stormwater)
  • Impact/Capacity Fee Studies
  • Financial Feasibility Analyses
  • Revenue Bond Issues
  • Long Term Capital Funding Plans
  • Utility Valuations
  • Mergers and Acquisitions
  • Cost-of-Service Allocations
  • Wholesale Customer Rates
  • Water Conservation Structures and Elasticity Effect

Mr. Parker has also made presentations associated with the financial feasibility of capital funding programs to local government commissions, rating agencies such as Moody’s and Standard & Poor’s to assist public utility systems in issuing bonds, improving their credit ratings and lowering their issuance costs.  In addition to standard capital funding sources such as revenue bonds and bank loans, Mr. Parker has assisted utility systems in obtaining grants and low-interest loans from such government funding programs as:

  • CDBG
  • USDA Rural Development, and
  • State Revolving Funds

Over the years, Mr. Parker has worked for such nationally recognized consulting firms as Tetra Tech and Black & Veatch, as well as smaller regional firms such as SVBK and Hartman & Associates.  In 2005, he decided to utilize his experience at both the national and regional levels to venture into a partnership with 2 long-time colleagues and started Utility Advisors Network, a “boutique” consulting firm specializing in the Southeast region.   As the President of the firm, Mr. Parker enjoyed the entrepreneurship and autonomy of business ownership, while learning the challenges that go along with such aspects as marketing, management and cash flow.  After more than 9 years of successful operations, the partnership was merged into Willdan, where Mr. Parker and his partners remain as integral members of the management consulting team. 


Kevin Burnett, Senior Project Manager, Willdan Financial Services

Mr. Burnett was born and raised in Southern Ontario, and now resides in Denver.  He is a graduate of the University of Waterloo where he earned an undergraduate degree in Economics and an Masters in Financial Economics from the University at Buffalo.  For the last 17 years, Mr. Burnett has been providing consulting services associated with the financial, strategic planning, management, of utility systems.  His professional experience encompasses a wide range of financial and management related issues within the utility industry.  He has assisted both private and public utility systems throughout the United States with a focus on the Rocky Mountain region and the western United States with projects such as:

  • Utility Rate Studies (Water, Sewer, Reuse and Stormwater)
  • Impact/Capacity Fee Studies
  • Financial Feasibility Analyses
  • Revenue Bond Issues
  • Long Term Capital Funding Plans
  • Utility Valuations
  • Cost-of-Service Allocations
  • Wholesale Customer Rates
  • Water Conservation Structures and Elasticity Effect

Mr. Burnett has also made presentations associated with rates and impact fees to such organizations as the Rocky Mountain Section of AWWA, the Special District’s Association of Colorado, the Growth and Infrastructure Consortium and Government Finance Officers Association of Arizona, and is an active member of AWWA’s Rates and Charges Committee. 

Over the years, Mr. Burnett has worked for internationally recognized consulting firm ARCADIS.  He currently works at Willdan, where Mr. Burnett runs the company’s Denver financial services office. 

Location

EUCI Office Building Conference Center
4601 DTC Blvd, B-100
Denver CO, 80237

Suggested Hotel

Hyatt Place Denver Tech Center
8300 E. Crescent Parkway
Greenwood Village, CO 80111
0.9 miles away
Nightly Rate for EUCI Attendees: $159.00

Click on the following booking link: Hyatt Place Denver Tech Center – EUCI and use Group Code: EUCI or

Call Central Reservations at 888-492-8847 and ask for the EUCI rate of $159 under the corporate/group code EUCI

Other Nearby Hotels

Hyatt Regency Denver Tech Center
7800 E Tufts Ave
Denver, CO 80237
Phone: 303-779-1234
0.3 miles away

Hilton Garden Inn Denver Tech Center
7675 E Union Ave
Denver, CO 80237
Phone: 303-770-4200
0.6 miles away

Denver Marriott Tech Center
4900 S Syracuse St
Denver, CO 80237
Phone: 303-779-1100
0.7 miles away

Register

Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

EventEarly Bird Before
Friday, July 06, 2018
Standard RateAttendees
Long Term Capital & Financial Planning for Municipal/Public Water and Wastewater UtilitiesUS $ 995.00US $ 1095.00

Register 3 Send 4th Free!

Any organization wishing to send multiple attendees to these conferences may send 1 FREE for every 3 delegates registered. Please note that all registrations must be made at the same time to qualify.

Cancellation Policy

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before June 22, 2018 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800