Essentials of Funding Public and Municipal Water and Wastewater Utilities

September 27-29, 2023 | Online :: Central Time

0923-water-utility-funding

Municipalities, public water systems, and wastewater utilities face a greater need for 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 capital needs
• Finding alternative sources for capital funding
• Developing and securing funding mechanisms that will meet the capital needs of the system
• Mitigating the rate impact on customers

In addition, it is imperative for municipalities, public water, and wastewater utilities to be knowledgeable of the debt utilization process, requirements for issuing bonds, and other system expenditures. Charges like operating expenses, capital costs, inter-fund transfers, etc. can be applied in conjunction with other utility objectives (e.g. water conservation) to impact rate setting decisions. 

This course will provide a clear overview of water utility funding utilization. Attendees will learn to maintain the operational and financial health of the water and wastewater 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 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

Wednesday, September 27, 2023 : Central Time

 

Introductions

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
• External & Internal Funding Sources

External Funding Sources for Municipalities and Water and Wastewater Utilities

• Debt Instruments
• Government Programs
• Private Party Contributions

Thursday, September 28, 2023 : Central Time

 

Internal Funding Sources for Municipalities and Water and Wastewater Utilities

• Monthly User Rates
• Cost of Service Analyses
• Cost of Service Excel Demonstration
• Impact/Capacity Fees
• Buy-In Method
• Incremental/Marginal Cost Method
• Combined Method
• Capital Reserves

Emerging Financial Planning Trends & Topics

• Stormwater as an Enterprise Fund
• Resource Scarcity
• Draught Rates
• Affordability
• Reclaimed/Reuse Water
• Regionalization

Revenue Enhancement Opportunities for Municipalities and Water and Wastewater Utilities

• Miscellaneous Service Charges
• Advanced Metering Technology

Friday, September 29, 2023 : Central Time

 

Rate Studies & Analyses for Municipalities and Water and Wastewater Utilities

• Common Rate Setting Objectives
• Data Requirements
• Test Year Expenditure Requirements
• Customer & Usage/Flow Analyses
• Pivot Table Demonstration
• Status Quo Revenue Projections
• 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
• Key Performance Indicators (KPIs)
• Balancing Financial Plans vs Political Reality
• Dashboard Demonstration
• Conclusions

Wrap Up and Adjourn

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 where he earned an undergraduate degree in Marketing and an MBA.  For more than 27 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. 

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Kevin Burnett, Principal Consultant, 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. 

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Tara Hollis, CPA, CVA, MBA., Principal Consultant, Willdan Financial Services

Ms. Hollis is a Principal Consultant with Willdan Financial Services and has more than 25 years of experience. She resides in the firm’s Orlando, Florida office and has provided consulting services throughout the southeast and across the country. Ms. Hollis has provided utility rate, financial, economic, and capital planning services for water, wastewater, stormwater, reclaimed water, solid waste and electric utility systems.  She specializes in rate and cost-of-service studies, capital planning, feasibility and financial reports, debt structuring analyses for the issuance of utility indebtedness, non-ad valorem assessment programs, and valuation studies for mergers or acquisitions.  Ms. Hollis is a Certified Public Accountant and holds the Certified Valuation Analyst designation from the National Association of Certified Valuators and Analysts.

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

• IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
• You will receive a separate email with a unique link to a personalized landing page which will include links to join all sessions of this event.
• If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
• The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all attendees for 7 days after the event

REGISTER NOW FOR THIS EVENT:

Essentials of Funding Public and Municipal Water and Wastewater Utilities

September 27-29, 2023 | Online

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 August 25, 2023 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

Credits

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 0.9 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.

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Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 10.5
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

EUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

 

 

Who Should Attend

This basic introductory level class is applicable to utility finance staff, general managers, accounting personnel, rate analysts and similar industry stakeholders.