In the past few years, the EFC has been asked to evaluate the different financial impacts of regionalization, from simple shared services agreements to full-on consolidation. Additionally, we have been evaluating barriers to and opportunities for the creation of new and different governance models. We have identified some key takeaways and, in the process, developed quite a few useful resources that might be of interest to communities or state and local leaders interested in moving the needle toward more regionalization in the water sector. Continue reading
Today, October 23, 2019, organizations across the county are urging people to “Imagine a Day without Water.” The event, coordinated by the US Water Alliance, is intended to remind us all about the value of water, and to push us to think for just a moment of where we would be without it.
When I recently attended the OneWater Summit in Austin, TX, also put on by the US Water Alliance, many stories were shared about the struggle communities and individuals are facing in Texas when water is scarce or contaminated or inaccessible. Whether the costs arise from hauling in bottled water for years to a community with a dried up well, or from the economic effects of a 6 day boil water notice in a city with a population of almost a million people, the immense value of clean, reliable and sustainable water sources is real for Texans. Continue reading
Co-authored by Liz Harvell
Across North Carolina, population shifts, flooding and drought, changes in industry and manufacturing, and the continuous move toward a reduction in overall water use has continued to create partnership opportunities for large and small water and wastewater systems alike. For large systems anticipating future growth, increased and more economically-savvy water supply may be accomplished through partnering with surrounding communities; smaller systems struggling with increasing costs and decreasing revenues may look towards partnerships with other systems to increase access to capital and reap the benefits of economies of scale. Systems that find themselves with excess capacity due to the loss of large industrial customers may view selling water or wastewater services to neighboring communities as the only realistic way of plugging revenue holes. And while general economic downturns and natural disasters continue to drive water and wastewater customers to relocate, making their systems no longer financially sustainable without some type of intervention, various partnership models are appearing more and more appealing.
While the number of models for creating water partnerships is as numerous as the number of reasons systems have for pursuing them, the most common tool for creating water partnerships in North Carolina is the interlocal agreement.
There are hundreds, if not thousands, of these agreements in place throughout the state, ranging from simple agreements intended to cover sale of water by Community A to Community B, to a complex series of individual agreements that when taken together can be used to create a consolidated regional utility model.
Earlier this summer, the Environmental Finance Center at the University of North Carolina at Chapel Hill (EFC) published Crafting Interlocal Water and Wastewater Agreements, a guide laying out important considerations for communities contemplating how a local agreement might benefit their community. Using the EFC experience of providing direct assistance to communities developing partnerships over the last 20 years, this guide identifies 21 key topics of governance, financial, and technical issues that are integral to the success of these agreements. Below are 10 key topics, but be sure to see the full guide complete, with examples: Continue reading
On February 8, 2019, over sixty leaders and stakeholders from around North Carolina and the Triangle assembled to work towards facilitating a partnership for green schools in Wake County at the Green Schools Symposium. This event, hosted by the Environmental Finance Center (EFC) and funded by the Conservation Fund, saw representation from the public and private sectors, government agencies, and non-profits. Represented parties included but were not limited to:
- The City of Raleigh
- WakeUP Wake County
- NC Conservation Network
- North Carolina Department of Environmental Quality
- Wake County Government
- NC GreenPower
- American Rivers
- Wake County Public School System (WCPSS)
In fact, the green schools conversation has been happening for many years in Wake County—and many of the innovators behind existing green school work in the area took time to attend the symposium. The day was intended to bring together representatives from parallel green school efforts occurring across the county, and to have one conversation that could include many voices. Although the EFC did its best to reach as many of those individuals as possible, in the end, there were more registrants than the space and food could accommodate! The day included many meaningful connections, sparked enthusiasm and innovative ideas, and continued a conversation that will hopefully be continuing over the next few months to put in place some of the clear cut goals and outcomes discussed below… Continue reading
As utilities across North Carolina consider new ways of partnering with each other, including full consolidation, many are looking at the Water and Sewer Authority model as a potential governance structure. Local governments devolving water asset ownership and control to an Authority or other regional governance structure are often concerned about maintaining some form of control in input on essential services. Under the Authority model, local governments can continue to participate in governance by appointing members to the Authority board.
State statutes provide local government members with the ability to structure their boards to meet their local needs and conditions. Board structures vary across the state based on number of board seats, number of seats allocated to (appointed by) each member, and voting rights of members. In order to better understand the driving forces behind the existing structures, staff from the Environmental Finance Center at the University of North Carolina at Chapel Hill reviewed bylaws and articles of incorporation for all of the authorities, and additionally carried out informal interviews with individuals familiar with the board structures from many of the authorities.
The research focused on answering the following questions:
- What is the status of existing board representation structure for Authorities across the state relative to the communities they serve?
- What approaches were used to allocate seats on boards?
- Have boards been modified over the years and, if so, why and how?