AWWA ACE56202

As the water utility industry continues to become more complex, it will be imperative that utilities continue to think more strategically. To that end, utilities will need to develop strategic initiatives and a strategic plan. The ability to effectively implement a strategic plan is directly linked to having sufficient financial resources available to support the necessary people and programs. This paper discusses the importance of establishing financial policies to aid in the rate setting process. By establishing written financial policies, the utility will be developing rates on a rational and consistent basis. Topics covered include: developing strategic plans; the importance of establishing written financial policies; steps involved in establishing a written financial policy; and, the types of financial policies to consider.