Date of Award

Summer 6-23-2012

Degree Type

Thesis

Degree Name

Master of Public Administration (MPA)

Abstract

This study surveyed wastewater utility elected officials from selected wastewater districts in California to examine their primary rate-setting philosophies and their utility's greatest unmet funding needs. Basic financial indicators, including operating ratio (OR) and net loss, were calculated for responding districts. Results showed that setting rates to recover costs was the primary rate-setting philosophy of the majority (59%) of elected officials and renewing or replacing aging infrastructure was their utility's greatest unmet funding need (53%). During Fiscal Year 2009-2010, 60% of responding districts showed an OR less than 1.0, and 43% showed a net loss. There was no apparent relationship seen between rate-setting philosophy and a district's OR. Many responding districts balance the books, but do not cover the operating expense of capital asset depreciation in their user rates. Implementation of asset management plans, simplified financial reporting for the public, and increased ratepayer education are program recommendations for these districts to remain effective and financially sustainable.

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