1. WAMCAT September 9 th, 2014 Kathy Weinsaft Wyoming Rural Water

2.  This is your road map ◦ It tells you where you want to go ◦ How you are going to get there ◦ What resources are needed ◦ Where the resources will come from ◦ It should cover a minimum of five years

3.  Decision Makers should review and add to the plan every year  Input should be garnered from: ◦ Clerk/Treasurers ◦ Accountant ◦ Operators ◦ Administrative staff ◦ Consulting Engineer Board and Council members

4.  Each expansion, upgrade and or replacement should include the rational for why it is in the plan.  This is really important so if there is a change of leadership there is continuity and projects are not caught up in an election cycle

5.  Requirements for other methods of financing  Regulatory requirements and changes  Potential growth or decline  Use actual numbers for revenues and expenses from the previous three to five years to obtain an average increase or decrease per year  Avoid magical thinking

6.  Notice that is plural! ◦ O & M Reserves ◦ Capital Improvement/Asset Depreciation ◦ Emergency Reserve ◦ Debt Service Reserve

7.  O & M Reserve ◦ Target 1/8 of annual O & M expenses ◦ Accumulate over 5 years = budget 1/5 of target each year

8.  Emergency Reserve ◦ Target enough in reserve to pay for the replacement of the most critical piece of equipment ◦ Accumulate over 5 years = budget 1/5 of target each year

9.  Capital Improvement/Asset Depreciation Reserve ◦ At the very least 1 % of replacement value per year

10.  Debt Service Reserve ◦ Target 1 year of payment in reserve ◦ Accumulate over 10 years = budget for 10% of the annual loan payment per year

11.  You can get a copy of this at www.warws.com under downloadswww.warws.com

12.  You have to have an operating surplus to be able to fund reserves  Set your rates so that can happen  Operating something until the wheels come off and than yelling “emergency” is no longer SOP

13.  Improvements that have a direct impact on customer health  Things needed for regulatory compliance  Testing results can be a guide  Severity of potential consequences both acute and chronic

14.  Projects that must meet a given deadline  Those that have been delayed for a long time  Potential costs that may rise dramatically in the future

15.  There are resources available  Step One is get on the Intended Use Plan ◦ Kevin Frank (DEQ) is the keeper of the list  (307) 473-3471

16.  There are 269 Million Dollars in projects on the list for drinking water  There are 214 Million Dollars of requests on the Clean Water side  Approximately 50 million dollars are available each year  6 million in the Governor’s Emergency Fund

17.  They do have money available  You may be eligible for a grant/loan combo  Don’t let the paperwork scare you  Engineering oversight can be worth its weight in gold  Alana Cannon (307) 233-6709

18.  A good CIP can help your system develop capacity and work towards sustainability  Sustainability Workshop ◦ September 24 th ◦ 8:00 – 5:00 ◦ Holiday Inn, Cody Wyoming ◦ Pre-Conference is free of charge but please register ◦ Full conference agenda on line and registration

19.  Give me a call anytime  Email works too!  Kathy Weinsaft  (307) 262-3943  kweinsaft@wyoming.com