By - Jon Brown

Long Term Capital & Financial Planning for Municipal/Public Water and Wastewater Utilities
September 22-23, 2016 | Phoenix, AZ

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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. As such, special attention is focused on the types of bonds and how they are incorporated into an effective financial plan. 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
  • Review 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
  • Identify rate structure types and relative impact on customers
  • Review important key performance indicators
  • Review the rate design process

Credits

AP_LogoEUCI 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 1.0 CEUs for this Course


Requirements for a Successful Completion of Program

Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

Instructional Methods

This program will use PowerPoint Presentations, group discussions, as well as active participation.

Agenda


Thursday, September 22, 2016

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/General Obligation Bonds
    • Impact 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, September 23, 2016

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 Projections (Rate Determinants)
    • Calculation of Revenues
    • Projected Operating Results (Cash Flow Statements)
    • Dashboard
  • Algebraic Process of Revenue Neutrality
  • Balancing Financial Plans vs Political Reality

Wrap Up and Adjourn

Instructor

Daryll Parker, Principal Consultant, Willdan Financial Services

As a lifelong Floridian, 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 22 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. 

Location

Hyatt Regency Phoenix
111 N 2nd Street
Phoenix, AZ 85004



To reserve your room, please call 1-602-252-1234
Please indicate that you are with the EUCI group to receive the group rate.

Room Rate:

The room rate is $199.00 single or double plus applicable taxes.

Room Block Dates:

A room block has been reserved for the nights of September 21 – 22, 2016.

 

Rate Available Until:

Make your reservations prior to September 7, 2016. There are a limited number of rooms available at the conference rate. Please make your reservations early. 

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