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Revenues, Rates, and Advance Planning
This article discusses advance planning and how it facilitates the financing of new construction from current revenues, and results in a material savings in the cost of water service. Advance planning for construction and financing reduces the necessity for bond elections, which may cause consumer agitation. The money necessary to finance the growth of public water supplies must come from water revenue, whether directly or indirectly. Adequate revenue is, therefore, a prerequisite to good water service. In general, city councils, which fix water rates for most U.S. cities, have authorized rates that permitted greater expansion than privately owned utilities can afford, many of which are under unrealistic regulation. Publicly owned utilities have doubled their per capita debt in the last decade, whereas the privately owned utilities have kept their per capita debt almost constant. More than half the cost of plant additions in municipal water plants was funded by debt.
Revenues, Rates, and Advance Planning
This article discusses advance planning and how it facilitates the financing of new construction from current revenues, and results in a material savings in the cost of water service. Advance planning for construction and financing reduces the necessity for bond elections, which may cause consumer agitation. The money necessary to finance the growth of public water supplies must come from water revenue, whether directly or indirectly. Adequate revenue is, therefore, a prerequisite to good water service. In general, city councils, which fix water rates for most U.S. cities, have authorized rates that permitted greater expansion than privately owned utilities can afford, many of which are under unrealistic regulation. Publicly owned utilities have doubled their per capita debt in the last decade, whereas the privately owned utilities have kept their per capita debt almost constant. More than half the cost of plant additions in municipal water plants was funded by debt.
Revenues, Rates, and Advance Planning
Howson, Louis R. (Autor:in)
Journal ‐ American Water Works Association ; 52 ; 153-161
01.02.1960
9 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
Revenues , Financing , Finance , Cost Savings , Planning , Costs , Utilities , Construction , Water Rates
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