1. efc.sog.unc.edu Financial Revenue Trends and Sustainability Jeff Hughes Director, Environmental Finance Center University of North Carolina at Chapel Hill jhughes@unc.edu www.efc.unc.edu 1

2. http://efc.sog.unc.edu Enhancing the ability of governments and other organizations to provide environmental programs in fair, effective, and financially sustainable ways through: Applied Research Education and Outreach Program Design and Evaluation

3. www.waterrf.orgwww.waterrf.org and www.efc.unc.eduwww.efc.unc.edu 3 REPORT TOOLS SLIDESBLOG POSTS

4. Need a New Business Model? Reclaimed Water Use Begins Conservation Pricing Changes in 2002 and 2007 Source: Orange Water and Sewer Authrority

5. Water Use is Declining for Many Utilities MGD sales in 2012 compared to 2006 among 129 utilities nationwide

6. Water Utility 2.0?

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9. Many Utilities, Many Pricing Approaches

10. Block Rate Structures Among Participants 10

11. Industry Revenue Growth Roller Coaster Annual change in total operating revenues among the same 485 utilities nationwide Revenues increased Revenues decreased High revenue growth Low revenue growth

12. Revenue vs. rate adjustments (2004 to 2010) 12 Data analysis by the Environmental Finance Center at the University of North Carolina. Data sources: 2010 and 2004 RFC/AWWA Water and Wastewater Rates Survey Data for 82 Utilities 1 to 1 Line

13. Key Take Aways Figure out what you want to sell Business Intelligence! Learn to live in a variable world Reserves Pricing 2.0

14. Where Can You Find More? http://efc.unc.edu Or subscribe to the Environmental Finance blog! http://efc.web.unc.edu