Patrick Denne
Memorial Scholarship Application
WE WANT TO HEAR FROM YOU!
Has an NDRWSA employee helped your system with a problem? Did a
Circuit Rider help you find a water leak? Have you attended one of our
training classes and thought the trainer did an excellent job? Well if
so, we want to hear from you! Take this opportunity to give a "THANKS"
or "GREAT JOB" to an NDRWSA employee. If you would like to show your
appreciation for a job well done, please email comments to our office at:
ndrw@ndrw.org or you can send a letter
to: 2718 Gateway Avenue, Suite 201 Bismarck, ND 58503-0585
2718 Gateway Avenue Suite #201
Bismarck, ND 58503
Rate Analysis
Raising Revenue Without Raising Rates
If you provide water or sewer service and have not analyzed your rates and financial
performance in the last two years, you need to. Likewise, if your costs have recently gone up, your
revenues have gone down, you recently built or plan to soon build something, or you cannot demonstrate
that your rates are fair and equitable; you need to examine your rates. North Dakota Rural Water Systems
Association in conjunction with the state of Missouri’s Department of Natural Resources (DNR) is providing
free analysis of system water and sewer rates. NDRWSA is utilizing a rate analysis software program, the
Show-me Ratemaker, which was developed by the MODNR to bring this service to the state of North Dakota.
The Show-me Ratemaker software programs are Microsoft Excel based spreadsheet programs
that make it easy for water and sewer systems to fix their finances and rates. Using the programs, systems
can examine their rates, set new rates that are more equitable, convince their ratepayers to support new (usually
higher) rates, and convince funding agencies or the bond market that their sewer or water project would be a good
investment for the agency’s funds. The software produces a five-year projection of rates, costs, reserve balances
and numerous financial condition indicators. It generates tables, and visual charts that make it much easier for
decision-makers and ratepayers to understand what the analysis is telling them. Possibly best of all, since it is
an electronic spreadsheet, the Show-me Ratemaker software makes it quick and easy to do "what if"
scenarios by changing any inputs to see what the results would be.
Top
A good rate analysis will do several things for you, including:
- Show your current and future financial status under various scenarios
- Help you develop new rates that are adequate, equitable and either proportional to use or proportional to cost to serve
- Help you make grant and loan applications
- Show your affordability index, operating ratio, coverage ratio and other important indicators
- Show the rate effects of fixed and variable costs, repair and replacement costs, interest rates and inflation rates
- Show the annual annuity needed for repair and replacement
- Give graphical illustrations for management decisions and public meetings
To examine your rates, you have options:
To begin your rate analysis you need the following information:
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Customer billing records for the year you want to analyze
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Your user charge rate schedule, hook up and other relevant fees
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Financial records for the year that includes the income received and the costs incurred
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Flow volume
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Your equipment repair and replacement schedule
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The annual median income of your customers
Contact us today to begin your own
FREE rate analysis!
North Dakota Rural Water Systems Association
2718 Gateway Ave. #201
Bismarck, ND 58503
Toll Free: 1-800-349-6951
Office: 701-258-9249
Fax: 701-258-5002
www.ndrw.org
ericvolk@ndrw.org
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E-mail
ndrw@ndrw.org
with questions or comments about this site.
Copyright © 2001 ~ North Dakota
Rural Water Systems Association.
Last modified: ~ Friday, December 21, 2007 |
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