1. Financial Sustainability of Water, Waste Water, and Watershed Management THE TOOLS OF THE TRADE

2. DAVID EBERLE Idaho Power Company - Rate and Cost-of-Service Analyst Adjunct Professor – Regulatory, Regional,Urban,and Environmental Economics Director – Hotel,Real Estate, Grocery, Manufacturing Businesses Consultant – Economic Impact, Capital Plans, Asset Management, TIF, DIF, URDs Commissioner - Boise City Urban Renewal District, Community Infrastructure District Board member – Boise Valley Metropolitan Planning Organization Council Member – Boise City Council

3. FINANCIAL SUSTAINABILITY GETTING YOUR BOARD COUNCIL OR MEMBERS TO PLAN FOR THE FUTURE

4. University of Southern Maine (R1) Syracuse University (R2) University of Maryland (R3) University of North Carolina (R4) University of Louisville (R4) Cleveland State University (R5) Dominican College (R9) The Environmental Finance Center Network A Resource for the Nation Boise State University USEPA Region 10 http://efc.boisestate.edu The University-based Environmental Finance Center Network Provides Third-Party Assistance to Communities and Groups on Financing Environmental Compliance New Mexico Tech University (R6, R8) Wichita State University (R7)

5. http://efc.boisestate.edu / Login/ Register

7. THE TOOLS OF THE TRADE AND MONEY Download these tools at http://efc.boisestate.edu

8. WHO WE WORK WITH Plant Operators Water Wastewater Stormwater Clerk/Treasurers Public Works Directors Consultants – Public or Private Watershed Districts

9. REALITY FOR MANAGING BOARDS Am I at Risk?  Will the system fail?  Can we meet expected growth?  Can we meet new regulations?  Will your budget take money from other priorities?  Will customers be happy with service and rates?  Tell me the future will be OK.  A sustainable system  Affordable rates  Level of Service meets expectations  Acceptable risk

10. PRINCIPLES OF THE BUDGET CYCLE

11. THE SUITE OF DASHBOARDS

13. Will the customers by happy? Covering expenses Not saving for all capital requirements Inadequate saving for plant replacement

14. WHAT DOES WATER REALLY COST? IDEAS AND TOOLS FOR RATE SETTING

15. PRICING OF UTILITY SERVICE: FIVE BASIC STEPS Full Cost Identification What are the total costs of the utility? Revenue Allocation How much money is needed for each utility function? Select User Fee System What are our policy goals? Demand Allocation How do we divide function costs based on customer use? Implement User Fee System

16. Operational Expenses Amortized utility debt (P & I) Year 1Year 20Year 5... Total utility costs Financial needs should be reviewed annually to keep up with the full costs the system NEW Rate Level without FCF Full cost funding level New Capital Facility Operating New Capital Facility Debt FULL COST PRICING

18. PLAN2FUND AND PLAN TO FUND OPTIMIZING

19. The Watershed is a mosaic of public, private, and nonprofit land ownership encompassing a myriad of land uses. Using a extensive collection of terms can broaden the sources of funding for your source water protection plan. Identify stakeholders and land uses within a watershed to create a patchwork of funding opportunities. “” COMMUNITY QUILT ” CONCEPT OF FINANCING

20. Coordinating multi-disciplinary activities over a management cycle helps to address continuous watershed management needs.

21. Plan2Fund OPT Consensus Process 1. Identify and enter strategic plan objectives. 2. Identify and gain consensus on decision rules. 3. Achieve consensus on how decision rules will be scored. 4. By consensus, assign weighting to decision rules. 5. Compare results. 6. Share information. Plan2Fund OPT Consensus Process 1. Identify and enter strategic plan objectives. 2. Identify and gain consensus on decision rules. 3. Achieve consensus on how decision rules will be scored. 4. By consensus, assign weighting to decision rules. 5. Compare results. 6. Share information.

22. SEARCH FOR IMPLEMENTATION FUNDING An on-line, searchable database of financial resources for watershed restoration. http://efc.boisestate.edu/watershed/

23. NATION WIDE REACH LOCAL IMPACT

24. EPA’S FOUR PILLARS OF SUSTAINABLE INFRASTRUCTURE Better Management Full Cost Pricing Water Conservation Watershed Approach The Public’s Investment in Safe Drinking Water

25. QUESTIONS David Eberle Environmental Finance Center Boise State University (208) 426-4293 weberle@boisestate.edu EFC.boisestate.edu