The National Center for Smart Growth Research and Education


Agriculture Water Quality Land Use Community Systems

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Community Systems

Water and Wastewater utilities face many challenges in structuring user rates that are fair and equitable to the customer, yet which provide sufficient revenue for the utilities' operations and future needs. Inflation, increased regulations and advances in technology are but a few of the forces that continually impact a utility's costs of operation.

Utility rates that are not designed to include adequate cost of present and future service will eventually threaten a system's ability to sustain itself. Lack of sufficient revenue often prohibits sound management activities that are necessary to the utility's long-term health and stability. In addition, failure to do adequate capital improvements planning and forecasting can also threaten a system's ability to sustain itself.

Through training and technical assistance the EFC helps local officials to understand their responsibilities in operating a utility system, by teaching proper rate setting and planning procedures. Sessions include rate setting methodologies, basic capital improvement planning, public information campaigns and other management practices that help to prepare local officials and utility staff to present rate proposals and long range plans to their public in an understandable fashion, fostering public understanding and acceptance of the proposed changes.

The EFC "Community Systems" areas of focus include these below:



Environmental Finance Center
1104 Preinkert Field House, College Park, MD 20742
phone: (301) 405-5036 | fax: (301) 314-5639 | email: efc@umd.edu