http://efc.sog.unc.edu

@EFCatUNC

Webinar: Benchmarking Water and

Wastewater Rates in Illinois

A webinar in partnership with the Illinois chapter of the AWWA

David R. Tucker, Project Director

Environmental Finance Center

School of Government

University of North Carolina at Chapel Hill

Wednesday, February 24, 2016

http://efc.sog.unc.edu

@EFCatUNC

Contact Information:

David R. Tucker

Environmental Finance Center at the

University of North Carolina, Chapel Hill

School of Government

(919) 966-4199

drtucker@sog.unc.edu

http://efc.sog.unc.edu

http://efcnetwork.org

http://efc.sog.unc.edu

@EFCatUNC 3

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

www.efcnetwork.org

Smart Management for Small Water Systems by the Environmental Finance Center Network 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 are provided on:

– Asset Management

– Fiscal Planning and Rate Setting

– Water Loss Reduction

– Energy Management

– Water System Collaboration

– Funding Coordination

– Managerial and Financial Leadership

– Workforce Development

• Sign up for direct assistance

at http://efcnetwork.org/assistance/request-assistance/

http://efc.sog.unc.edu

@EFCatUNC

Objectives

• Become familiar with features and benefits of

our Northeast Illinois Water and Wastewater

Rates Dashboard.

• Learn how to compare one water system’s

rates with those of other systems.

• Learn how to apply financial benchmarks like

operating ratio to your system.

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@EFCatUNC

Polling Question 1

What kind of water and/or sewer utility do

you represent?

• Municipality

• For-Profit

• Not-For-Profit

• Special Purpose District

• Not a Water/Sewer Utility

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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

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@EFCatUNC

Polling Question 3

What utility management and finance topic

are you most concerned about?

• Affordability

• Communication

• Conservation

• Cost Recovery

• Rate Setting

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2013 Water and Wastewater Residential Rates

Survey of Northeastern Illinois (IISG-15-007)

• Conducted by Margaret Schneemann and others at the

Illinois-Indiana Sea Grant Program for municipal utilities

in the seven-county Chicago Metropolitan area (Cook,

DuPage, Kane, Kendall, Lake, McHenry, and Will).

• The rates survey includes residential water and/or

wastewater rate structures effective as of October 1,

2013, for 224 municipal public utilities in the state of

Illinois.

Rates in Illinois

http://efc.sog.unc.edu

@EFCatUNC

2013 Water and Wastewater Residential Rates

Survey of Northeastern Illinois (IISG-15-007)

• This Rates Dashboard was constructed as part of the

Smart Management for Small Water Systems nationwide

project of the Environmental Finance Center Network

(EFCN). This dashboard was created under a

cooperative agreement with the United States

Environmental Protection Agency.

• No statewide (all counties) rate survey has been

identified at this time.

Rates in Illinois

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Benchmarking Rates

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@EFCatUNC

Everyone needs safe drinking water!

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Source of pride?

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Comparing rates – the old way

Source: NC Triangle J Council of Government

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@EFCatUNC

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

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@EFCatUNC

Solution: provide more information?

185 pages

of wonderful tables,

full of data you can use!

http://efc.sog.unc.edu

@EFCatUNC

Water Rates Dashboards

• Created for AL, AZ, CO, GA, IL, MA, NC, OH, TX, VA, WI and Canada. Several more coming soon!

• 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

http://efc.sog.unc.edu

@EFCatUNC

Northeast Illinois Water and

Wastewater Rates Dashboard

http://www.efc.sog.unc.edu/reslib/item/northeast-illinois-water-and-wastewater-rates-dashboard

http://efc.sog.unc.edu

@EFCatUNC

Polling Question 4

Would you like to subscribe to the

Environmental Finance Center’s blog?

• Yes

• No

http://efc.sog.unc.edu

@EFCatUNC

Polling Question 5

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

www.efcnetwork.org

Smart Management for Small Water Systems by the Environmental Finance Center Network 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 are provided on:

– Asset Management

– Fiscal Planning and Rate Setting

– Water Loss Reduction

– Energy Management

– Water System Collaboration

– Funding Coordination

– Managerial and Financial Leadership

– Workforce Development

• Sign up for direct assistance

at http://efcnetwork.org/assistance/request-assistance/

http://efc.sog.unc.edu

@EFCatUNC

Thank You

Download more tools and resources

View your state’s funding programs

matrix

Attend in-person workshops or

webinars

Sign up for direct technical assistance

http://efcnetwork.org

Sign up for blog posts for small

water systems

http://efcnetwork.org/small_

systems_blog/

Contact info.: David Tucker drtucker@sog.unc.edu (919) 966-4199

Additional resources:

Sign up for blog posts

on Environmental

Finance

http://efc.web.unc.ed

u