» Member Updates Archive

NACWA is pleased to announce the release of the Association’s 2008 Financial Survey (Survey).  Since 1981, NACWA has conducted a triennial financial survey of its membership to provide clean water agencies, government officials, and the public, important insight into the financing and management of clean water utilities.  For its latest release, the Survey includes a new 24-page at-a-glance hardcopy summary highlighting the key findings and conclusions from the Survey.  Together the full downloadable Survey report and the new summary report provide a complete picture of how utility managers continue to balance providing an essential service with responsibly managing their community’s resources.

Included with this Member Update is a link to NACWA’s website to download your complimentary copy of the Survey (click here), a copy of the new summary document, and additional ordering information.

Survey Indicates Sustained Increases in Costs, Debt, and Needs

The 2008 Survey shows that clean water utilities are facing sustained 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 explained by external factors, including global demand and volatile oil prices.

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 utility’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 industrial customers have increased at more than double the rate of inflation from 2005 to 2007.  Data from NACWA’s Service Charge Index Survey, which will be released later this month, indicate that the nationwide average single-family residential service charge will eclipse $400 by 2011.  As the nation’s economy slows, it will become 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 implementation of effective utility management programs.   Service levels also continue to steadily improve with increased provision of reclaimed water services and enhanced treatment.

Survey Data Availability

Free 60-day access to the downloadable 2008 Financial Survey is available on the publications portion of the NACWA website (click here).  The at-a-glance summary report was designed to provide a brief overview of the Survey’s findings for regulators, Congress, utility boards and the public.  An electronic version of the summary document is also available for free download from the NACWA website for members and non-members.  Please contact NACWA if you are interested in receiving additional hard copies of the summary document.  The survey is also available for purchase by non-members on the NACWA website.