UNC School of Government study again places CFPUA rates, financial performance at top levels
UNC’s Environmental Finance Center gives CFPUA high marks when compared to 426 other NC water/sewer utilities; “Optimal” performance cited in several rate-based categories and financial benchmarks
FOR IMMEDIATE RELEASE
CONTACT: Mike McGill
(910) 332-6704
After Hours: (910) 622-8472
mike.mcgill@cfpua.org
communications@cfpua.org
Wilmington, NC (May 2, 2016): Cape Fear Public Utility Authority (CFPUA) is proud to announce the results of the 2016 UNC School of Government Environmental Finance Center's study of North Carolina’s Water and Wastewater Rates. CFPUA’s rates again received high marks when compared to the other 426 North Carolina utilities which took part. Of the water and sewer utilities surveyed, the Environmental Finance Center places CFPUA in its green, or “optimal”, zones in just about every rate-based and financial category. CFPUA’s scores were also found to be “optimal” when compared to every major statistical grouping of the other North Carolina utilities.
CFPUA rates scored in the study’s green, “optimal” levels in the following rate-based and financial benchmark categories:
• Actual dollar-and-cents cost;
• Affordability (% of household income);
• Cost recovery (operation budget strength);
• Operations revenue v. expenditures;
• Debt service coverage ratio;
• Measures of liquidity (ability to pay current bills), including cash on hand; and
• Condition of physical assets.
CFPUA rates also scored green or “optimal” when compared to the following groups of NC utilities:
• All 426 other utilities in the study;
• All utilities within 100 miles of CFPUA;
• All utilities with the same, uniform rate structure;
• All utilities of a similar size; and
• All utilities in the same economic tier.
The UNC Environmental Finance Center’s survey is unique in that the study’s interactive “dashboard” that allows a user to visually compare each utility’s performance against one or all of the other utilities surveyed. The “dashboard” for the study can be found at http://www.efc.sog.unc.edu/reslib/item/north-carolina-water-and-wastewater-rates-dashboard#.
For ease of use, the major screen shots showing CFPUA’s water and sewer rate scores, as well as its key financial benchmarks, follow below.
One of the reasons for CFPUA’s high ratings is its strong financial performance, highlighted by its operating budget, which has not significantly increased in its nine years of operation. In fact, CFPUA operates the water and sewer systems for less money today than it cost Wilmington and New Hanover County to separately operate the systems nine years ago. CFPUA’s consumption and other budget targets are also being met, assisted by continued economic growth. The only category where CFPUA didn’t land in a green, “optimal” zone was in the Conservation Signal category because CFPUA’s uniform rate does not charge our customers more for their water as their usage increases; this is often referred to as a higher “conservation rate”. CFPUA eliminated its conservation rate in 2013 after feedback from our customers.
The study was released just as CFPUA's Board considers its budget for Fiscal Year 2017. The preliminary budget does not proposal a rate increase, meaning the study’s findings would carry over well into 2017. More details about the budget proposal will be discussed at our May board meeting on May 11 and at our board's Budget workshop on May 17. Both meetings are open to the public.
"When we prepare our budget every year, our goal is to strike a balance that ensures the short and long-term needs of our systems are met while keeping the rates affordable for our customers," said Jim Flechtner, CFPUA Executive Director. “The UNC study yet again highlights how effective we are in fulfilling our responsibilities with rates that compare favorably with other utilities in the state."
“Our ratepayers deserve a lot of the credit; it is through their rates that we are able to improve our aging systems,” said Pat Kusek, CFPUA Board Chair. “The UNC study’s results are a clear and unbiased review of how we are conducting our work on behalf of our customers. We are keeping their rates affordable and low in cost while providing essential services at an award-winning level.”
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Cape Fear Public Utility Authority (CFPUA) was formed by the City of Wilmington and New Hanover County to combine their water and sewer operations. It began operations on July 1, 2008. Today, the Authority serves more than 67,000 water customer accounts and more than 65,000 wastewater customer accounts. It oversees more than 1,100 miles of water distribution mains and nearly 1,000 miles of sewer mains. For more information, visit www.cfpua.org or contact CFPUA’s Communications staff at mike.mcgill@cfpua.org.