With the amount of grant dollars available for water and wastewater projects continuing to dwindle, coupled with the aging water and/or wastewater infrastructure, it is increasingly more important that decision makers for systems throughout the state become more educated about system finances.
A Rate Study
will take an in-depth look into the expenses and revenue that a system has. Once all of the data has been gathered and entered into a spreadsheet a detailed report is generated to explain the findings and recommendations.
What Information Will I Need to Supply for a Rate Study?
- Financial statements for the most current fiscal year (audit report preferred)
- Amount of water produced and/or purchased during the most current fiscal year
- Amount of water sold during the most current fiscal year
- Current rate structure
- Number of customers in each rate class
- Amount of debt (if any)
What Information Will the Rate Study Provide?
- Breakdown of expenses
- The cost to produce the water (if applicable)
- Amount of nonrevenue water
- Amount of lost revenue from water loss
- Annual gain or shortfall in revenue
- Different rate scenarios
This is a free service to IRWA members!
If you are in need of a rate study - Contact Clark Cameron at 217-820-3814 or cameron@ilrwa.org
