Public Enterprise Dashboards: Water, Wastewater ... · 05/03/2015 · Median charged by NC utility...
Transcript of Public Enterprise Dashboards: Water, Wastewater ... · 05/03/2015 · Median charged by NC utility...
www.efc.unc.edu
Public Enterprise Dashboards: Water,
Wastewater, Electricity, Stormwater, and Other
Innovative Environmental Finance Tools
David Tucker
Project Director
Environmental Finance Center
UNC School of Government
Thursday, March 5, 2015
Research Triangle Park, NC
http://efc.sog.unc.edu
@EFCatUNC 2
Dedicated to enhancing the ability of
governments and other organizations
to provide environmental programs and
services in fair, effective, and
financially sustainable ways through:
• Applied Research
• Teaching and Outreach
• Program Design and Evaluation
How you pay for it matters
http://efc.sog.unc.edu
@EFCatUNC
What’s Your Utility’s/Public Enterprise’s
Biggest Financial Challenge?
1. Changing business model (e.g. selling less water /
wastewater / electricity)
2. Customer affordability
3. Revenue shortfalls
4. “Funding depreciation”
5. Communication
6. Governing board’s unwillingness to raise rates
7. Pressure to keep rates comparable to other utilities
8. Other
How satisfied are you with the utility
rates you have today?
1. Not at all – need an overhaul
2. Not very – they need a lot of work
3. Somewhat – tweaks needed
4. Very – no changes needed
EFC Public Enterprise Dashboards
• Drinking Water (NC + many more)
• Wastewater (NC + many more)
• Stormwater (NC + GA)
• Electricity (NC)
• Other innovative environmental finance
tools (Excel-based, web-based, etc.)
N.C. Water/Sewer Rates Dashboard (2015)
N.C. Stormwater Rates Dashboard (2012)
N.C. Electricity Rates Dashboard (2014)
© 2015 Water Research Foundation. ALL RIGHTS RESERVED. © 2015 Water Research Foundation. ALL RIGHTS RESERVED.
Communicating a RateCase: Beta RateCase Tool
Analysis Conducted by UNC Environmental Finance Center
© 2015 Water Research Foundation. ALL RIGHTS RESERVED.
RateCase Tool
• Audience: Utility governing boards via
water utility/administrative staff
• Objective: Provide snapshot of the
utility’s key metrics
• Inspiration: SFPUC Ratepayer Assurance
Scorecard
Analysis Conducted by UNC Environmental Finance Center
© 2015 Water Research Foundation. ALL RIGHTS RESERVED. Analysis Conducted by UNC Environmental Finance Center
© 2015 Water Research Foundation. ALL RIGHTS RESERVED. Analysis Conducted by UNC Environmental Finance Center
Frame 1:
Data
Inputs
© 2015 Water Research Foundation. ALL RIGHTS RESERVED.
Frame 2:
The
$napshot
Analysis Conducted by UNC Environmental Finance Center
Deep Dive: N.C. Water & Sewer Rates
Anticipated Water / Sewer Rate
Increase Request for Next Year
1. No change
2. 0 to 2.99%
3. 3 to 5.99
4. 6 to 9.99
5. 10 or above
Annual NC Water and Wastewater
Rates Survey
• Collaboration since 2005
• 2015 survey just completed. 496 utilities included.
• Free, online information: tables, summary report, Rates
Dashboard, rate sheets at http://www.efc.sog.unc.edu and
http://www.nclm.org
NC League of Municipalities Environmental Finance Center
at the School of Government
Factual Report and Data Tables http://efc.sog.unc.edu – Find it in Programs / Drinking Water
Or http://nclm.org
Which Rates were Studied?
• January 2015 rates for 496 utilities across NC
• Rates for water, irrigation, and wastewater
services
• Rates for residential and for non-residential
(small commercial) customers
• Rates for inside and outside customers
• Including base charges and allowances
Draft 2015* by the Numbers
(Based on data submitted as of 2/1/15)
Operating revenues collected by
governmental utilities (FY 2014)
>$2.2 billion
Highest (SUBMITTED TO DATE) (FY
2014)
$197 million (Raleigh)
Lowest (FY 2014) $1,178 (Boiling Springs Lakes)
Median charged by NC utility $31.32 Water
$38.42 Sewer
$67.80 Combined
Average number of blocks 4
Median multiplier for out-of-city rates (Among 83% percent of municipalities)
1.84x Water
1.92x Sewer
Percent of utilities that raised rates (376 water + 318 sewer rate structures)
53% Water
52% Sewer
Median increase for those that increased
bills
4.6% Water
4.9% Sewer
Highest rate per 1,000 gallons at 5,000
gallons/month
$20.00 Water
$21.00 Sewer
Median base charge $15.00 Water
$16.00 Sewer
$31.00 Combined
Highest base charge $94.37 Water
$65.21 Sewer
$90.07 Combined
Lowest non-zero base charge
$2.47 Water
$1.97 Sewer
$6.14 Combined
Median percentage of customer bill due to
base charge at 5,000
48% Water
43% Sewer
Draft 2015* by the Numbers
(Based on data submitted as of 2/1/15)
Rates Dashboards
• Interactive tool to compare water & sewer rates (bills) among all utilities, or utilities with similar characteristics:
– System size (number of accounts or revenues)
– Technology (water source type or river basin)
– Location (regional council, 25 / 50 / 100 miles)
– Same rate structure (uniform, incr. block, etc.)
– Demographics (median household income)
– County economic development tiers
• Available online at http://efc.sog.unc.edu
New Features -- New Technology!!!
• Much faster load and response times
• Access it on tablets (e.g. iPad)
• Type in your utility's name to select
• Click on and select any utility on the map
• Edit your utility's data (temporarily and locally)
• View your rates at 500 gallon/month increments
• Simulate raising rates up to 100%
Future improvements could include:
1. Selecting more than one comparison group at a time.
2. Benchmarking residential Water Outside and Sewer
Outside rates.
3. Benchmarking commercial rates (WIC, WOC, SIC, SOC).
4. Presenting historical data (e.g. rates from last 5-10 years).
5. Reevaluating thresholds for the financial indicators.
6. Additional financial indicators (LT debt per customer).
7. Additional rates indicators (% of bill from base charge).
8. Benchmarking residential irrigation rates.
9. Creating a multi-state / regional rates dashboard.
REVENUE SUFFICIENCY
Do Water and Wastewater Rates Cover
System Costs?
n = 438 (FY 2014)
Source: 2015 NCLM/EFC North Carolina Water & Wastewater Rates Survey Report
FY 2014 Rates and Operating Ratios
Source: 2015 NCLM/EFC North Carolina Water & Wastewater Rates Survey Report
OTHER TOOLS & RESOURCES
Webpage on NC Rates
(with report, tables, Dashboards, more)
http://efc.sog.unc.edu – Find it in Programs / Drinking Water
The 2015 Rates Dashboard, report, and tables are now posted on the EFC
website, and an email will be sent to utility managers, finance directors and
town clerks/administrators.
NC Rate Setting Resources • Call the EFC / SOG
• Guide to Billing and Collecting Public Enterprise Utility Fees for Water,
Wastewater, and Solid Waste Services (by Kara Millonzi, SOG)
• NC Rates Dashboard (EFC web)
• Do-it-yourself Excel tools for rate scenarios and capital planning (EFC web)
• Designing Rate Structures that Support Your Objectives guide (EFC web)
• 2010 NCLM/EFC Financial Practices & Policies Survey (EFC web)
• Other EFC web resources (blog posts, data, guidelines/reports, tools) at
http://efc.sog.unc.edu
• LGC Fiscal Analysis Dashboard
• “Painful Art of Rate Setting” article in Popular Government
• AWWA M1 Manual, EPA Rate Setting workbooks, etc.
• Rural Water Association, Consultants, etc.
• EFC’s blog: http://efc.web.unc.edu
Subscribe to Keep Up-to-Date with
the Environmental Finance Blog
http://efc.web.unc.edu
Examples of relevant blog posts:
• Declining demands in NC
• Increasing rates in NC
• Operating ratios in NC
• Water debt in NC
• What’s wrong with %MHI
• Financial strategies
• And much more!
Other Environmental Finance Tools
• Water Utility Revenue Risk Assessment Tool
• Water & Sewer Rates Analysis Model
• User-Friendly Capital Improvement Plan (CIP) Tool for
Water & Wastewater Utilities
• Financing Wetland and Water Quality Improvements Tool
• Subsidized Funding Benefits Calculator
• Dashboard for Using Capital Reserve Funds to Avoid Rate
Shock
• Clean Energy Durham’s Home Energy Share and Compare
• ***and many more***
www.efc.unc.edu
Questions?
David Tucker
Project Director
Environmental Finance Center
UNC School of Government
(919) 966-4199