Source: EFC @ UNC Chapel Hill (.xlsx)
– Easy-to-use, simplified cash flow model
– Input current rates, number of accounts, growth rate, average consumption, expenses
– Adjust rates
– Computes net profit/losses for 20 years
Does your system charge your customers the correct amount for water? This free, basic cash-flow modeling tool allows water systems to input their current rate structure, estimates on number of customers and water use, and the expected costs for the system. The tool then automatically projects the end-of-year fund balance for the next several years, indicating whether revenues will be high enough to cover expected expenses. Users can then enter in another rate structure and compare the end-of-year fund balance side-by-side to the one projected using current rates. This allows users to try out scenarios of adjusting their rates to meet their financial goals in the next few years and can help users determine whether they need to adjust rates, and by how much, in order to achieve financial sufficiency. The tool can be used by systems that set volumetric charges for water as well as systems that only charge flat monthly fees.