Long Term Capital & Financial Planning for Water and Wastewater Utilities

December 3-5, 2024 | Online :: Central Time

0924-water-utility-funding

“The course was more than I expected! Money well spent!” – Director of WPCF, Town of Wareham

“The course was extremely beneficial for what I do for my organization.” – Management Analyst, City of Santa Ana – Public Works Agency

“EUCI is very good about delivering practical and appropriate training for me, as an industry professional.” – Consumer Services Manager, IREA Partners

Municipalities and public utilities face a greater need for operations and 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 operational and capital needs
• Identifying and securing sources for capital funding
• Mitigating the rate impact on customers

This course will provide a clear overview of utility rate and financial planning.  Attendees will learn techniques for ensuring the operational and financial health of the 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 basic financial elements for a utility (IOU/Muni)
• Explain the basic elements of financial reports for a public 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

Tuesday, December 3, 2024 : Central Time

 

Introductions

Overview of the Financial Planning Process

 

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
• Internal & External Funding Sources

External Funding Sources for Municipalities and Water and Wastewater Utilities

• Debt Instruments
• Government Programs
• Private Party Contributions

Interactive Financial Planning Modeling

 

Wednesday, December 4, 2024 : Central Time

 

Financial Planning Revisited

 

Internal Funding Sources for Municipalities and Water and Wastewater Utilities

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

Rate Studies & Analyses for Municipalities and Water and Wastewater Utilities

• Common Rate Setting Objectives
• Data Requirements
• Test Year Expenditure Requirements
• Customer & Usage/Flow Analyses
• 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
• Balancing Financial Plans vs Political Reality

Emerging Financial Planning Trends & Topics

• Reclaimed/Reuse Water
• Regionalization
• Resource Scarcity
• Drought Rates
• Affordability

Thursday, December 5, 2024 : Central Time

 

Financial Plan Revisited

 

Pivot Table Demonstration

 

Other Considerations and Trends

• Stormwater as an Enterprise Fund
• Advancements in Metering Technology
• Key Performance Indicators (KPIs)

Wrap Up and Adjourn

• Conclusions
• Unresolved Questions

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 resides in Oviedo, Florida.  She is a graduate of the University of Central Florida where she earned an undergraduate degree in Accounting as well as a master’s in business administration.  For more than 25 years, Ms. Hollis has provided utility rate, financial, economic, and capital planning services for utility systems.  She has assisted both private and public utility systems throughout the United States with projects such as:

• Utility Rate Studies (Water, Sewer, Reuse, Stormwater, and Solid Waste)
• Impact/Capacity Fee Studies
• Non-Ad Valorem Assessment Programs
• Revenue Bond Issues
• Financial Feasibility Analyses and Long-Term Capital Funding Plans
• Utility Valuations, Divestitures, Mergers, and Acquisitions
• Equity Recapture Strategies
• Cost-of-Service Allocations
• Wholesale Customer Rates

Ms. Hollis has also made numerous presentations associated with user rates and capital funding to local governments, rating agencies such as Moody’s and Standard & Poor’s, as well as organizations including the Indiana Section of AWWA, the Growth and Infrastructure Consortium, and the South Carolina Rural Water Association.  Ms. Hollis is also a member of AWWA’s Committee that is developing a Manual on System Development Charges. 

Over the years, Ms. Hollis has worked for the nationally recognized consulting firms Tetra Tech, as well as smaller regional firms such as GAI Consultants and Hartman & Associates.  Currently working as a Principal Consultant for Willdan in their Orlando, Florida office, Ms. Hollis is a Certified Public Accountant and holds the Certified Valuation Analyst designation from the National Association of Certified Valuators and Analysts.

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Michael Cronan, Project Manager, Willdan Financial Services

Mr. Cronan has seven years of experience within Willdan’s Financial Consulting Services group. His primary function is to support project managers and senior analysts with utility rate studies. He specializes in analysis for a variety of clients, including cities, water districts, and public utilities.  He has assisted both private and public utility systems throughout the United States with many in the California market.  His experience includes:

• Utility Rate Studies (Water, Sewer, Reuse and Stormwater)
• Impact/Capacity Fee Studies
• Financial Feasibility Analyses
• Proposition 218 Rate structures

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.

• 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:

Long Term Capital & Financial Planning for Water and Wastewater Utilities

December 3-5, 2024 | 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 02, 2024 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.

Verify our IACET accreditation

Who recognizes IACET Credits?

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.