Is your Water System's Infrastructure up to par?
Many consumers take water for granted. They don't realize that an estimated 30% of our nation's water infrastructure is between 40 and 80 years old and on the brink of requiring millions of dollars of repairs and replacement. With our state and our nation in a recession, most city governments are merely doing what it takes to get by and don't have the resources to invest in replacing the old and rusted infrastructure. In addition, the federal government is less able to provide funds to help small and rural water systems. This is a ticking time bomb.
Without properly maintained water infrastructure, we are faced with increased pipe bursts and main breaks, high consumer water bills due to improper meter readings and leaking pipes. Considering an increase in consumer rates for water usage is what utilities are now faced with. But how much should the rates be? When should the rate increase go in? How often can a utility increase rates without causing a wave of complaints from the consumers?
EGP has the skills and resources to help you determine your revenue requirements, develop a financial plan and design a rate structure that will best suit your current and future infrastructure needs. For many EGP has performed audits of municipal and not for profit water and sewer associations as well as specialized consulting on numerous accounting and non accounting issues. Over the years our firm has collected a vast knowledge of the water and sewer industry and will adapt our focus to your best interests.
Areas of expertise include:
- Implementation of GASB 34 analysis of infrastructure
- Assistance with management's discussion and analysis (MD&A)
- Determination of solid waste disposal reserves
- Accounting system design and implementation
- Rate studies
- Bond issues and advance refunding issues
