Water agencies face reduced revenues and higher enforcement cost when implementing conservation polices to preserve limited water resources. Many water agency boards have required local water agencies to submit conservation plans in exchange for financial assistance, which compels them to modify their business plans. Many water agencies are looking for new ideas to boost revenues and optimize performance.
- Replace Aging Pipes and Install New Water Meters
- Install New AMR/AMI Technology to Improve Customer Billing and Revenue Collection
- Finance Total Project Cost and Reduce Outstanding Loan Balance with Future Grant Dollars
How to Build and Fund Your Project
Holman Capital, in partnership with an experienced Solution Team of leading engineering and water infrastructure specialist provides a comprehensive solution to water agencies. The goal is to modernize America’s infrastructure, while improving revenues, reducing operating costs, and enhancing the customer experience. The Solution Team combines the design & engineering, business case, project management, installation, and financing into one comprehensive solution. Thus, the water agency can focus its resources on its customers and employees.
Incremental Revenues Pay for the Project
Water meters measure the consumption of water for the utility consumer. The installed meter’s accuracy over time will decline due to wear. As such, the meter will typically under register the volume of water product delivered to the customer. By replacing older meters it enables the water agency to measure usage accurately and charge the customer accordingly. Additionally, adding advanced meter infrastructure (AMI) software and hardware will enable the agency to collect usage data remotely, identify system leakage, and schedule repairs to boost revenue.
For example, a 20,000 connection water agency is experiencing a 10% annual production loss due to water leakage and inaccurate metering. At an average cost of $2.50/HCF this could result in annual losses in excess of $2.0 million. Improving customer meter accuracies a mere 3% can increase revenues as much as $600,000 per year. Assuming the project cost $3 million to complete, the water agency could recover its cost within five years.
Financing Capital Projects
Many water agencies finance their capital improvement programs with low interest rate loans. The loans are secured by the agencies revenues, collateral, or both. They are commonly used to fund water meter, pipeline, facility, and treatment plants quickly and efficiently. Project amounts range from a few hundred thousand to the tens of millions of dollars. The loan can be structured with monthly, quarterly, semi-annual, or annual payments that are spread over the economic useful life of the project, which typically ranges from three to twenty years. Project Financing Benefits
- Start Project Quickly
- Increased Productivity
- Eliminate Grant Funding Delays
- Match Payments to Budget
- Spread Cost over More Users
- Boost Revenues
The Solution Team
Assessing your needs and picking the right team are keys to success. Holman Capital Corporation partners with leading engineering and water infrastructure firms to provide a seamless solution to save you time, boost revenues, and improve operational efficiency.
- Preparing an initial AWWA Water Audit and Feasibility Analysis
- Review Meter Assets and Identify Cost Savings
- Prepare Client Business Case
- Provide Financing, Grant Assistance, and Technical Support
- Project Delivery
- Performance Measurement and Verification
The Solution Team can assist your water agency with developing a comprehensive plan to provide stable revenues, control cost, and improve the customer experience.
Please contact The Solution Team today for a consultation.
Lance S. Holman
Download this white paper: “Optimizing Water Revenues.”