Utility Master Plans, Infrastructure Sales Tax, and Wastewater Reuse Profits Provide a Secure 20-Year Financial Vision for Fargo's Utilities

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Abstract:

The City of Fargo completed Master Plans for its water and wastewater utilities in mid-2005. The Master Plans included development of Capital Improvements Plans for both utilities that identified approximately 230 million of improvements for each utility over the 25-year planning period. Through a preliminary funding assessment, it was recognized that the non-programmed capital improvements totaled approximately 70 million and 144 million for the water and wastewater utilities, respectively. The City leaders elected to pursue a dedicated infrastructure sales tax for the water and wastewater utilities. In addition to the sales tax, the City recently completed a wastewater reuse project that will result in estimated annual profit of 800,000. In accordance with the recommendations from the Master Plans, and in recognition of the infrastructure sales tax and wastewater reuse profits, the City completed a revenue adequacy rate planning model for its water and wastewater utilities in 2008. The rate modeling was completed for a 20-year planning period that coincides with the Master Plan and CIP planning period.

Keywords: Master Plan; Rate Planning; Revenue Adequacy; Sales Tax; Utility Management; Wastewater Reuse

Document Type: Research Article

DOI: http://dx.doi.org/10.2175/193864709793952242

Publication date: January 1, 2009

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  • Proceedings of the Water Environment Federation is an archive of papers published in the proceedings of the annual Water Environment Federation® Technical Exhibition and Conference (WEFTEC® ) and specialty conferences held since the year 2000. These proceedings are not peer reviewed.

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