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A Clear Commitment to America’s Waters
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NACWA Financial Survey
CONTINUED FROM PAGE 1
Survey Indicates Sustained Increases in Costs,
Capital Spending and Long-Term Debt Levels
The
2011 Survey
shows that clean water utilities are facing sus-
tained increases in capital expenditures and operations and
maintenance costs. Some of the additional costs are due to new
regulatory requirements and the controls required to comply
with existing Clean Water Act mandates, including sanitary and
combined sewer overflow requirements. Other increasing costs,
such as those for energy and chemicals, are dictated by external
factors often beyond the control of the utility.
With higher costs and greater capital expenditures comes the
need for additional revenue. The
Survey
shows that rates and
charges for residential and industrial customers have increased
at more than three times the overall rate of inflation from 2007
to 2010. In both NACWA’s 2005 and 2008 survey reports, it was
noted that the rapid increase in long-term debt, coupled with in-
creasing capital needs could impact the ability of utilities to meet
future funding needs through debt financing mechanisms. The
2
011 Survey
data show that long-term debt is up 24 percent be-
tween 2007 and 2010 and up nearly 75 percent between 2001 and
2010. Debt service payments comprise, on average, 26 percent of
total expenditures for agencies responding to the
Survey
.
Despite these trends, the
Survey
also suggests that clean water
utilities are continuing efforts to improve efficiency and sus-
tainability through energy recovery initiatives, implementation
of asset management programs, and implementation of utility
management/excellence programs. Service levels also continue
to steadily improve with increasing levels of treatment and high
removal efficiencies for key pollutants.
Sound Financial Position of Clean Water
Community Faces Ongoing Challenges
Overall, clean water agencies continue to demonstrate a strong
financial position, but the increasing reliance on long-term debt
to finance assets and the large portion of utility budgets dedi-
cated to servicing that debt, have and will continue to present
challenges for communities nationwide. Many communities
continue to struggle due to the impacts of the faltering economy
coupled with increasingly costly Clean Water Act regulatory re-
quirements. It will be important to continue to track the trends
detailed in the
2011 Survey
closely in the future.
F
or the past several months, NACWA has been working to
expand its use of powerful online networking and col-
laboration tools. The centerpiece of this effort is
, a customized online collaborative tool for the
clean water community. By using
Engage
TM
and other social media
sites, NACWA is starting new conversations and forging new connec-
tions.
The
Engage
TM
network helps clean water utilities and professionals from
around the country better collaborate on key issues. A key feature of
Engage
TM
that promotes this collaboration is the targeted discussion
groups that focus on specific areas of NACWA’s advocacy agenda.
Currently available groups are focused on affordability, financing, and
funding; stormwater; biosolids; pretreatment; nutrients; and combined
and sanitary sewer overflows.
Additional groups will be added over the next several months as
NACWA continues to roll out this new tool. New groups will include
those focused on water quality and utility management, and the util-
ity of the future. Regional groups dedicated to the various U.S. regions
will focus on issues specific to those areas country also will be added.
Also recently launched, NACWA’s blog,
, which is
dedicated to an analysis of policy issues affecting the clean water com-
munity. The blog covers all facets of water quality protection from
nutrients and total maximum daily loads (TMDLs) to stormwater,
pretreatment, and combined and sanitary sewer overflows, and more.
Authors provide expertise from legal, regulatory, and legislative per-
spectives and will include members of NACWA staff and from the
clean water community. The blog also includes perspective pieces from
member agencies who will discuss emerging issues and how their orga-
nization has been affected.
Finally, Twitter and Facebook provide a great way for members to stay
in touch with NACWA and learn about the Association’s activities at
this meeting and throughout the year. To find NACWA on Twitter,
search for
and “Follow” us. For Facebook, go to
and “Like” NACWA.
To access Engage, users can go to
.
Users can also access the
guide for quick tips.
NACWA Launches Online Tools