2017 Water and Wastewater FinanceJeff Hughes

UNC School of Government Environmental Finance Center,

jhughes@unc.edu

February 28-March 1, 2017

Chapel Hill, NC

Workshop Objectives

1. Improve understanding of sustainable water finance strategies, practices, and funding sources

2. Improve understanding of evolving trends and external drivers that influence financial health and strategy

3. Improve understanding of pricing trends and strategies

4. Provide forum for sharing financing perspectives, ideas, and experiences

Introduction – Meet your Neighbor (5 minutes)

Where are you from?

What do you do?

Your first or most recent car, boat, or plane

and how you paid for it

Cool/Scary/exciting/intimidating projects

Agenda/Topics

Topics Legal updates – with

focus on “impact-ish” fees

Rates and charges Financial assessment Financial planning tools Accounting to keep you

out of trouble The art of partnering Accessing capital

General Themes

Affordability

Communication with board and public

How many times have you attended the water and wastewater finance workshop?

1. This is my first time

2. This is my second time

3. 3 to 5 times

4. More than five times

1. 2. 3. 4.

59%

7%

15%20%

What best describes your position?

1. Utility Management

2. Local Government Management—Non Finance Positions

3. Finance positions

4. Consultant/private advisor

5. State government

6. Other

1. 2. 3. 4. 5. 6.

32%

20%

7%

12%

2%

27%

What best describes your water/wastewater system?

1. County

2. Municipality

3. Other governmental utility

4. Non-governmental utility

5. Advisor

1. 2. 3. 4. 5.

15%

70%

9%

0%

6%

What best describes your (or the utilities you work with) utility’s primary financial challenges?

1. Funding system (plants and pipes) expansion

2. Funding treatment facility upgrades

3. Funding distribution and collection system rehabilitation

4. Communicating financial challenges to board and public

5. Rates!!

6. Other1. 2. 3. 4. 5. 6.

9%

0%

14%

23%

20%

34%

What best describes your (or the utilities you work with) utility’s primary financial challenges (2016 Participants)?

1. Funding system (plants and pipes) expansion

2. Funding treatment facility upgrades

3. Funding distribution and collection system rehabilitation

4. Communicating financial challenges to board and public

5. Rates!!

6. Other1. 2. 3. 4. 5. 6.

9%

22%

6%

16%

13%

34%

Estimated cost of water and wastewater capital projects in your community over next 10 years?

1. Below 5 million

2. 5 to 10 million

3. 10 to 20 million

4. 20 million to 50

million

5. Over 50 million

6. I have no idea?1. 2. 3. 4. 5. 6.

16%

22%

3%

25%

9%

25%

SWIA Master Plan

What is most important financial planning endeavor over next 12 months?

1. New/revised rates

2. Arrange funding for a specific project

3. New/revised multi-year Capital Improvement Plan

4. Negotiate agreement with another utility

5. Implement asset management system

6. Other

1. 2. 3. 4. 5. 6.

10%

24%

3%

14%

21%

28%

Questions and…

….Burning Issues