Provides a general overview of the current practices and procedures that should be considered for financing and establishing rates and charges for wastewater collection and treatment systems. It updates the 1984 Edition of Financing and Charges for Wastewater Systems co-published by (American Society of Civil Engineers (ASCE) and (American Public Health Association (APHA), then in its second edition, and serves as a guide to wastewater utility managers, municipal officials, engineers, accountants, and rate analysts. Because the material was updated using a more rigorous peer-review process, the publication is now classified as a Manual of Practice. This manual is not intended to provide a simplistic “cook book” or universal approach to cost allocation and rate making. Rather, it is meant to illustrate the various ways of analyzing and allocating the operating and capital costs associated with collecting and treating wastewater and developing rates and charges that reasonably and equitably reflect the cost of service. The manual stresses the complexity of the integrated considerations involved in developing wastewater system cost allocation and rates for services.

The brand new manual provides step-by-step guidance to determine revenue requirements, analyze rates, develop a financial plan, and design a better rate structure -- even with limited resources and data. Written for small water systems (defined as serving a population of up to 10,000) it focuses on the unique attributes of small systems as related to financial planning and rate design, with the understanding that most data is contained in the current customer billing system, and merely needs to be massaged. With details plus a sample case study, it helps develop a rate structure that emphasizes simplicity and ease of billing, while at the same time recognizes cost recovery and equitability. Also covered are communications with the public, which is integral to a successful rate restructuring, regulatory approval, system development funding, and rate phase-in.