HomeMy Public PortalAboutExhibit MSD 11A13 NACWA 2008 SurveyExhibit MSD 11A13
Triennial NACWA Financial Survey Released
Since 1981, NACWA has conducted a triennial financial sur-
vey of its membership to provide clean water agencies, gov-
ernment officials, and the public, important insight into the
financing and management of clean water utilities. For its
latest release, the 2008 Financial Survey (Survey) includes a new pub-
lished 24 -page at -a -glance summary highlighting the key findings
and conclusions from the Survey. Together the full downloadable
Survey report and the new summary report provide a complete pic-
ture of how utility managers continue to balance providing an essen-
tial service with responsibly managing their community's resources.
Sustained Increases in Costs, Debt, and Needs Reported
. The 2008 Survey shows that clean water utilities are facing sus-
tained increases in capital and operations and maintenance costs,
long-term debt, and capital needs. While expenses will naturally
increase due to inflationary pressures and population growth, the
Survey data reveal that clean water utilities have experienced cost
increases at levels much higher than would be expected due to these
factors alone. Some of the additional cost increases are due to new
regulatory requirements and efforts to increase service levels. Other
increases, such as those in energy and chemical costs, may be ex-
plained by external factors, including global demand and volatile oil
prices (see figure at right).
The 2008 Survey data show that debt financing has continued to
increase as a proportion of total utility expenditures. In fact, debt
service increased from 22 to 28 percent of total expenditures over
the past six years. These rising debt service levels can impact a util-
ity's bond rating and its ability to get favorable conditions when they
borrow. The current economic downturn and the impact it has had
on credit markets will further complicate the ability of clean water
agencies to meet their long-term needs.
With higher costs comes the need for additional revenue. The
2008 Survey shows that rates and charges for residential and indus-
trial customers have increased at more than double the rate of infla-
tion from 2005 to 2007. Data from NACWA's Service Charge Index
Survey (see related article on the release of the 2008 Index) indicate
that the nationwide average single-family residential service charge
will eclipse $400 by 2011. As the nation's economy slows, it will be -
Operation and Maintenanace Cost per
Million Gallons Treated (1998-2007)
$2000
$1800
$1600
$1400
$1200
$1000
$800
$600
$400
$200
1998
2001
2004
2007
come more difficult for some to pay these increased charges without
some forms of assistance.
In the face of budgetary challenges, the 2008 Financial Survey
shows that clean water utilities are continuing efforts to improve
efficiency and sustainability through energy recovery initiatives,
implementation of asset management programs, and implementa-
tion of effective utility management programs. Service levels also
continue to steadily improve with increased provision of reclaimed
water services and enhanced treatment.
Survey Data an Added Benefit of NACWA Membership
Free 60 -day access to the downloadable 2008 Financial Survey, and
a complimentary copy of the valuable at -a -glance summary report,
are just one more benefit of membership in NACWA. NACWA's 2008
Financial Survey, along with the 24 -page summary report, is also avail-
able for purchase by visiting the Publications page at www.nacwa.org.
Howard Neukrug, Office of Watersheds director at the Philadelphia Water
Department, testified on behalf of NACWA before the House Transportation and
Infrastructure (Tel) Subcommittee on Water Resources and Environment about green
infrastructure techniques and efforts by his city and others to control stormwater. He
said municipalities face many regulatory obstacles which make it difficult to implement
innovative, cost-effective, and green technologies and called on policymakers and regula-
tors to adopt a more holistic approach to watershed management that focuses on the
interplay between land use and water quality. "Green cities can address water resource
and quality concerns while also tackling the sustainability goals of air quality, waste
product reuse, urban heat island mitigation, carbon sequestration, energy conservation,
environmental justice and quality of urban life," Neukrug told the Subcommittee.
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