4. The Cost of Water
Water/Sewer Bill Inflation
Inflation CPI
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
5. Water Utilities Are Among the Most
Capital Intensive in the World*
$0.11 $0.25 $0.26 $0.77
$ invested in physical assets for every $1.00 in revenue
*based on most recent 12 months reported on SEC 10K report
6. AVERAGE WATER UTILITY INVESTMENT IN ASSETS FOR
EACH $1.00 IN REVENUE iS BETWEEN
$5-$9
7. City of Santa Fe, NM
Oldest Capital in the US
Population 79,627
CIP $113M Next 10Years
Water Production 10,406 AFY Accounts 33,440
12. GPCD Comparison Western Cities
Salt Lake, UT 242
Las Vegas, NV 222
Reno, NV 204
Phoenix, AZ 185
Tucson, AZ 177
Colorado Springs, CO 173
Austin, TX 170
Denver, CO 165
Albuquerque, NM 160
San Diego, CA 152
San Antonio, TX 146
Los Angeles, CA 145
El Paso, TX 139
Aurora, CO 121
Flagtaff, AZ 111
Santa Fe, NM 105
San Francisco, CA 86
0 50 100 150 200 250 300
13. The Average per-capita usage in the US is:
152 Gallons*
Santa Fe is 30% lower than the US Average Usage
*per United Nations Development Program –
Human Development Report 2006
16. Combination of Conservation
Strategies
Public Water
Education Losses Water
Restriction
Fee
Fixtures Renewable
Water
Rate
Structure
Water
Restriction Rebates
17. Conservation can not be achieved without
Financial
The City had to implement several rate
adjustments to meet their revenue
requirements
Stability
Which Hasn’t been easy
18. Financial History
2000 • Revenues fail to meet rate requirements
in bond covenants
2001
• Service charges are adjusted by 76% to
restore bond covenant compliance
• Recommended steps for further study
• Started work on first 10-year financial plan
2003 • Revenues meet rate requirements
and bond covenants
2007-0
• Construction stars on Buckman
Diversion project
• City approves a 7-year 8.2% annual
9 rate increases
19. Financial History
2010-1
• City Goes Back to the Bond Market
• Fitch Rate the City’s Outstanding Debt at AAA
• City Finished Construction of Buckman
2 Diversion Project 01/2011
• City meets all bond and fund balance
requirement
20. But…
How can the City maintain financial stability and
promote conservation?
26. It’s Not
Rocket Science
How can you design rates that will incentivize conservation
and will maintain financial stability ….
27. Elasticity
Measures the responsiveness of the
demand to changes in prices
Allows you to anticipate the reduction
in consumption for any increase in price
32. Conservation Policies & Programs
• Conservation Website
Public
• Landscaping Classes
Education
• Radio Show
• Children conservation programs
• Over 8,000 high flush toilets were
Fixtures replaced for Ultra-low flush toilets
• Automated Meter Reading Program
Water • May 1 – October 31 No
Restriction outdoor irrigation from 10
am to 6 pm
33. System Improvements
Water § Distribution System Leak
Losses Repair & Detection
Renewable § Buckman Diversion Project
Water § Storage of San Juan
Chama Water