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municipalauthorities.org | 45 Recalculate Tapping Fees Regularly Tapping fees are essential for an authority to recover certain capital costs of its water system, mostly stemming from new customers and development, to provide funding for the necessary infrastructure to accommodate growth. However, these fees can become outdated as circumstances and conditions change. Trending of capital costs of authority facilities over time, reduction of outstanding debt, and changes in the available system capacity are all significant factors that could potentially increase the calculated tapping fee results. NPWA completed a Tapping Fee Study in 2023 which resulted in an increase in tapping fees of 167%, showing that these factors had significantly affected the calculation since the last study in 2005. By recalculating tapping fees periodically, water authorities can ensure they are aligned with current water distribution and treatment facility capital costs. This proactive approach not only maximizes revenue from new connections but also promotes responsible development that benefits the entire community. Evaluate Equivalent Dwelling Units for Commercial and Industrial Customers Understanding the impact of commercial and industrial customers on water resources is critical. By evaluating the equivalent dwelling units (EDUs) assigned to these customers, water authorities can better assess their increased usage and ensure that they are charged appropriately. After a comprehensive review of our larger customers’ water consumption, NPWA identified nearly $2 million in additional tapping fees to be collected over the next two years through payment agreements. Adjusting EDU levels based on actual consumption patterns allows for more equitable pricing and helps capture potential revenue from businesses that may have increased their water usage through expansion or business process changes. Beyond Financial Strategies: Inter-departmental Collaboration and Contributions Maximizing revenue isn’t just about rates and fees; it involves a holistic approach that incorporates all facets of the authority internal operations, including field services, engineering, and customer service. Investing in operational efficiency can lead to significant cost savings, which in turn, can bolster financial results without increasing rates. Similarly, enhancing customer service can improve employee satisfaction and loyalty, reducing turnover and ensuring stable revenue for years to come. Ami Tarburton is a dedicated public servant and finance professional with over two decades of experience in government and community service. She graduated from the University of Pittsburgh in 1992 and began her career at the Federal Bureau of Prisons, where she worked for seven years in various positions and locations. After spending 8 years as a stay- at-home mom, Ami then transitioned to local government roles in Southeastern Pennsylvania, serving five years in Franconia Township and three years in Montgomery Township. She has spent the last five years at North Penn Water Authority, contributing her expertise in public finance and human resources. Ami is actively involved in professional organizations, currently serving as the Treasurer for the Government Finance Officers Association of Pennsylvania and being recently appointed by PMAA to the Board of Trustees of the Pennsylvania Local Government Investment Trust. Maximizing revenue opportunities for municipal authorities requires a multifaceted approach that blends traditional financial strategies with innovative thinking. Innovative Revenue Streams Bulk Water Carrier Sales Another revenue opportunity lies in bulk water carrier sales. By establishing automated fill stations for bulk water carriers, rather than drawing from hydrants, water authorities can create a streamlined and better documented process that attracts commercial customers while generating additional income. Bulk water sales at NPWA have averaged $105,000 annually over the last five years. A thorough evaluation of the rates charged for this service will ensure competitiveness and profitability. Leasing Space on Water Tanks In a world increasingly reliant on mobile technology, leasing space on water tanks to cell phone service carriers presents a unique revenue stream. By providing these carriers with strategic locations for their equipment, water authorities can earn additional income while enhancing service connectivity for the community. Rental income from lease contracts accounts for over $400,000 of NPWA’s annual revenue. This partnership not only generates revenue but also fosters collaboration between municipal services and private enterprises. Conclusion Maximizing revenue opportunities for municipal authorities requires a multifaceted approach that blends traditional financial strategies with innovative thinking. By implementing periodic rate studies, recalculating tapping fees, evaluating commercial and industrial contributions, and exploring creative partnerships, municipal authorities can secure a sustainable financial future. As authorities navigate the complexities of modern service delivery, embracing these strategies will ensure they can continue to provide essential services while enhancing their revenue streams. The future of municipal water management is not just about meeting needs but also about thriving in a changing landscape. S Maximizing article continued from page 15.