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Attendee List

http://efc.sog.unc.edu

@EFCatUNC

Webinar: Benchmarking Water

and Wastewater Rates in Arizona

David Tucker

Project Director

Lexi Kay Herndon

Outreach Coordinator

September 24, 2015

Registrants of

this webinar

http://efc.sog.unc.edu

@EFCatUNC 4

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

Arizona’s water and

wastewater funding source

Affordable and efficient

financing available year-round Loans: planning, design,

improvement, construction,

acquisition

Technical Assistance Funding:

planning and design phases

Water Infrastructure Finance

Authority of Arizona

Wastewater

Drinking Water

Mission: Maintain and improve water

quality by providing financial and technical

assistance for water infrastructure

throughout Arizona.

Stormwater

azwifa.gov

Objectives

• Become familiar with features and benefits of our

*new and improved* Arizona Rates Dashboard.

• Learn how to compare one water system’s rates

with those of other systems.

• Learn how to apply some useful financial

benchmarks to your system.

• Get a first look at this year’s research report,

including new sections like reclaimed water rates.

Polling Question 1

What kind of water and/or sewer utility do

you represent?

• Municipality

• Privately Owned (ACC-regulated)

• Privately Owned (not ACC-regulated)

• Special District (DWID, DWWID, Sanitary)

• Not a Water/Sewer Utility

Polling Question 2

What size water and/or sewer system does

your utility operate (by # of people served)?

• Very Small (500 or fewer people served)

• Small (501 to 3,300 people served)

• Medium (3,301 to 10,000 people served)

• Large or Very Large (10,001+ people served)

• Not a Water/Sewer Utility

2014-15 Water and Wastewater Rates

Survey for the State of Arizona • Conducted by the Water Infrastructure Finance Authority

of Arizona and the Environmental Finance Center at UNC

• 392 water/wastewater rate structures

• 354 water/wastewater utilities

• Covers 90% of all Arizona water/wastewater utilities

• Covers 95% of all Arizona Community Water Systems by

service population (per SDWIS)

• Associations, Co-Ops, Counties, Domestic Water/

Wastewater Improvement Districts, For-Profits,

Municipalities, Not-for-Profits, and Sanitary Districts

Rates in Arizona

Four Observations of Note from This Year’s

Water and Wastewater Rates Survey

Economy of scale is evident for water services,

but not as strong for wastewater services

Differences in rates charged by utility type are

difficult to distinguish due to various factors

High water users will pay more if served by a

smaller utility than a larger utility

Purchase Water systems that buy at least a

portion of their water from another water system

(either SW or GW) charge the highest rates

Drinking Water Rate Structures in Arizona Residential Water Rate Structures for 2015 Respondents (n=349)

Wastewater Rate Structures in Arizona Residential Wastewater Rate Structures for 2015 Respondents (n=132)

Water and Wastewater Base Charges in Arizona

New and Improved AZ Dashboard!

• On the EFC Website • Go to: efc.sog.unc.edu

and search for

“Arizona Water and

Wastewater Rates

Dashboard”

• Or go to:

www.azwifa.gov/water

rates/

Benchmarking Rates

Everyone needs safe drinking water!

Polling Question 3

What utility management and finance topic

are you most concerned about?

• Affordability

• Conservation

• Cost Recovery

• Rate Setting/Communicating Rates

• Reclaimed Water

Source of pride

Comparing rates – the old way

Source: NC Triangle J Council of Government

What’s wrong with it?

• Poor sample selection (number, types of

systems)

• Comparing only one bill amount

• Comparing nothing besides rates

– pressure to keep rates low …

– … regardless of financial condition of utility

– ignores customers’ ability to pay

– ignores price signals and utility’s policies

Solution: provide more information?

185 pages

of wonderful tables,

full of data you can use!

Water Rates Dashboards

• Created for AL, AZ, CO, GA, IL, NC, OH, SC, TX,

VA, WI and Canada.

• Free, online, open to the public.

• Compares rates against multiple characteristics:

Utility finances; System characteristics; Customer base

socioeconomic conditions; Geography; History

• Compare to similar utilities (large samples):

– All utilities; similar service population; similar water

source; using same rate structure; similar customer

income; same type of utility; within 50 miles distance

New AZ Dashboard Features!

• New Financial Benchmarks Tab with four financial KPI’s

• Much faster dashboard load and response times

• Easier to select utility from dropdown menu: type in name

• Ability to click on and select any utility on the map

• Tablet friendly format: view on your tablet device

• Can view rates at 500 gal/mo increments fr. 0 to 15 kgal/mo

• Ability to edit your utility's data, or add a new rates structure

to the dashboard. These edits will be saved on your

computer until you delete cookies (only you will see them)

Demonstrate the AZ Dashboard:

http://efc.sog.unc.edu

Reclaimed Water

• Wastewater treated to varying levels of

quality (Classes A+ to C).

• Common uses in AZ for Classes A+ and A

reclaimed water:

– Environmental restoration

– Groundwater recharge

– Industrial uses

– Landscape irrigation

– Power generation Reclaimed water pipes in Surprise, AZ

0

2

4

6

8

10

12

14

16

18

20

Municipality For Profit Sanitary District County/District

Nu

mb

er

of

Rat

e S

tru

ctu

res

Reclaimed Water Rate Structures By Utility Type (n=35)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0 10 25 50 75 100 250 500

Pri

ce (

$)

Consumption (thousands of gallons)

Potable- Middle 80%

Reclaim- Middle 80%

Potable- Median

Reclaim- Median

Comparing Potable and Reclaimed Water Bills

for Commercial Users (n=33)

Resources

efc.web.unc.edu

Follow us on Twitter: @EFCatUNC

Subscribe to our

Environmental Finance

Blog

Tools, trainings, assistance

and resources for small water

systems from the EFCN

www.efcnetwork.org

Polling Question 4

Would you like to subscribe to the

Environmental Finance Center’s blog?

• Yes

• No

Smart Management for Small Water Systems under a Cooperative Agreement with the US EPA

• The EFCN provides training and technical assistance to small public

water systems in all fifty states and five territories to help local water

systems achieve and maintain compliance with the Safe Drinking

Water Act.

• Workshops, trainings and direct assistance:

– Asset Management

– Water Loss Reduction

– Water System Collaboration

– Fiscal Planning and Rate Setting

– Energy Management

– Funding Coordination, and

– Managerial and Financial Leadership

• Sign up for direct assistance at http://efcnetwork.org/one-on-one/

Polling Question 5;

and Evaluation survey link

If you are a small water system (10,000 or

fewer people served), are you interested in

receiving in-depth technical assistance?

• Yes

• No

• Not sure – I’d like more details

http://efc.sog.unc.edu

@EFCatUNC

Thank you!

David Tucker

EFC at University of North

Carolina, Chapel Hill

919-966-4199

drtucker@sog.unc.edu

Lexi Kay Herndon

EFC at University of North

Carolina, Chapel Hill

919-843-3528

lkherndon@unc.edu

Melanie Ford

WIFA of Arizona

Technical Program Supervisor

602-364-1321

mford@azwifa.gov

Susan Craig

WIFA of Arizona

Communications Director

602-364-1236

scraig@azwifa.gov