17999_Authority_December

municipalauthorities.org | 15 m axImIzIng r evenue o PPortunItIes For m unIcIPal a uthorItIes By Ami Tarburton, Director of Finance and Human Resources, North Penn Water Authority In an era where financial sustainability is crucial for municipal services, municipal authorities are exploring innovative strategies to bolster revenue without sacrificing service or quality. By leveraging a combination of rate studies, review of tapping fee calculations, and creative partnerships, municipal authorities can enhance their revenue streams while maintaining their commitment to providing the public with a safe and reliable supply of drinking water and effective wastewater services. Here’s a closer look at some strategies that North Penn Water Authority (NPWA) has utilized for maximizing authority revenue opportunities. Implement Periodic Rate Studies One of the most effective ways to ensure fair and adequate pricing is through periodic rate studies. These comprehensive analyses, usually conducted by independent consultants, allow authorities to evaluate their current rates in light of increasing operational costs, capital investments, debt service requirements, and changing market conditions. At NPWA, the service charge, a fixed fee per bill designed to recover the costs of billing, customer service, and meter reading, had not been increased in several years. A comprehensive rate study completed in 2020 blended the service charge with the consumption charge to assure that the two rate components adequately met revenue requirements. By reassessing pricing structures every five to ten years, authorities can make informed adjustments that reflect the true cost of service. This not only helps in maintaining financial health but also ensures transparency and fairness for customers. Continued on page 45.