Funding Your Solid Waste System - Through Good Times and Bad
As virtually all municipal utilities (water, wastewater, solid waste, and electric) continue to deal with the financial burdens and operational challenges associated with COVID-19, it is a good time to highlight the importance of having a sound financial plan. A financial plan, along with rates that allow for sufficient revenue recovery, increases the likelihood that your utility will retain financial integrity during good times and bad (recessions, natural disasters, pandemics, etc.)
While the attached article addresses the financial and operational issues specific to solid waste utilities, many of the principles and processes described are equally relevant and important for municipal water, wastewater, stormwater, and electric utilities.
Herein we describe how to establish a financial plan, the importance of incorporating reserves, several policy issues that may arise, and designing associated user fees.