NC Water and Wastewater Rates Dashboard

Rates Comparison

Select residential bill and monthly consumption amount

Water Bill Sewer Bill Water + Sewer Bill

xxx
xxx cubic feet

Monthly Water Bill After Rates Increase: 0.00 (0.00/gal)

Select comparison group:

***Caution***
Revenue impacts are highly speculative. For more detailed modeling, the EFC's Water and Wastewater Rates Analysis Model is a free tool that examines how revenues at your utility could be affected by various changes in rate structures. However, neither of these tools should be used in place of an in-depth rate study.
***Caution***
Assumes across-the-board rate increases for all customer classes. Projected revenue impacts assume a 3 percent drop in demand for every 10 percent increase in price. Accuracy of projections decreases as the proposed rate increase gets larger.

Comparing to

0 rate structures compared

Effects of raising rates by:

Median:

Min Max

Median:

Min Max

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= Operating Revenues

Operating Expenses including depreciation & amortization

Audited data for FY

Operating Revenues
Operating Expenses including depreciation
Depreciation & amortization expense

Cost Recovery is a measure of whether the utility’s rates were sufficient to cover the cost of operations and capital (in the form of depreciation) for the fiscal year. It is calculated by dividing operating revenues by operating expenses including depreciation expense.

In the case of some utilities that do not report depreciation in operating expenses, depreciation is excluded from the operating expenses, and thus the ratio only measures whether the utility's rates were sufficient to cover the cost of O&M. A ratio of less than 1.0 could be a sign of financial concern. In general, this ratio should be higher than 1.0 in order to accommodate future capital investments.

Click on the tab labeled "Financial Benchmarks" to observe several indicators for a more holistic view of your utility's financial condition.
For a more in-depth look at your utility's financial sustainability, use our free

Financial Health Checkup for Water Utilities Tool

The financial data displayed are for Fiscal Year , adjusting for the rate increase you selected below and the estimates of consequential reduction of water use.

Data Not Available.

Among 462 utilities in FY 2014, 49% had a ratio of >= 1, and 16% had a ratio of >= 1.2.

= Annual Bill (Monthly Bill times 12 Months Per Year)

Annual Median Household Income

Raw Data

Annual Bills
Annual MHI

This dial shows what a household making the median level of income in would spend annually, as a percent of their income, on using per month. Half of the households in the community would be spending a greater portion of their income for these bills.

The median affordability metric is often referred to as "percent Median Household Income (MHI)". It is only one of many metrics that can be used to assess affordability. There is no universally accepted definition of what "affordable rates" means and other factors such as poverty rate, income distribution, and fixed income will influence the affordability of rates in a community. The color spectrum reflects that this metric is on a continuum, without any single threshold that dictates what is affordable or unaffordable. The MHI data are derived from the U.S. Census Bureau's 5-year American Community Survey estimates for x MHI (in dollars).

For a more comprehensive look at affordability in your community using multiple metrics, use our

Residential Rates Affordability Assessment Tool

For more information about percent MHI, including considerations about its assumptions,

read this blog post about Percent MHI Indicator

Data Not Available: Though data for this dial is not available for this utility, the dial can be turned on by the user manually inputting the relevant data.

Click on the “Edit Data or Add Utility” button in the upper right corner and either clone and edit your utility, or create a new utility entry from scratch. This feature allows users to edit or enter data relating to utility finances, rates, and demographics, which will then be reflected on the dashboard. For example, adding the Annual Median Household Income for a utility’s community will turn on the Affordability dial, while the Cost Recovery Dial is controlled by a utility’s Annual Operating Revenues and Expenses including Depreciation.
Please note that the edited data are temporarily saved in the user’s browser cookies, not permanently written to the database. The edited data can only be viewed on that particular device. To share results from the Edit Data or Add Utility feature, you must print or take a screenshot of the dashboard while the dial is active.

= Water Volume Treated or Purchased - Water Volume Billed to Customers

Water Volume Treated or Purchased

Raw Data

Water Billed
Water Treated

All water systems distribute more water than what they charge customers. The volume of water that is treated or purchased and enters into the distribution system that is then not billed for at the customer end is called non-revenue water. It is the amount of water that is treated (which incurs a cost) but does not produce revenue. The goal for every water system is to minimize this amount.

Non-revenue water is composed of real losses, apparent losses, and unbilled authorized consumption. Real losses are physical water losses in the distribution system due to leaks, breaks and overflows. Apparent losses are inaccuracies in metering and billing, and water theft. Unbilled authorized consumption is water that is metered to a registered user that is not charged for that use (e.g. street cleaning, fire fighting, internal use at the water system or other governmental buildings, etc.).

This metric is estimated for municipal and county utilities only using Fiscal Year 2019 data from the Annual Financial Information Reports submitted to the North Carolina Department of State Treasurer. The percentage shown on this dashboard is a simplified metric using data that was not audited and may not reflect the full scope of non-revenue water at the utility. This percentage should only be considered to be a very rough estimate. Utilities should also use caution in comparing non-revenue water to other utilities since non-revenue water should be contextualized on a utility by utility basis.

For more detailed and accurate analysis of the utility’s non-revenue water, use the AWWA Free Water Audit Tool.

Use the AWWA Free Water Audit Tool

= (Wastewater Volume Delivered to a Wastewater Treatment Plant – Wastewater Volume Billed to Customers)

Wastewater Volume Delivered to a Wastewater Treatment Plant

Audited data for FY

Wastewater Billed
Wastewater Treated

All wastewater systems collect and deliver more wastewater at the treatment plant, or to another wastewater utility, than the volume of wastewater that is charged to customers based on water meter readings. The difference between the volume of wastewater that is being charged and the volume of wastewater that requires treatment (which incurs a cost) does not produce revenue. It is equivalent to “non-revenue water” for water systems. The greater this percentage, the higher the wastewater treatment costs that are not compensated by wastewater revenue.

There are many reasons why wastewater systems collect and treat more wastewater volumes than what is charged for at the customer end. A significant factor is the amount of inflow and infiltration (I&I) that occurs, which is when water from the ground enters the collection system and is delivered to the wastewater treatment plant. I&I usually increases significantly during rain events but can happen throughout the year. Other factors include inaccurate metering and billing, illegal dumping, and authorized wastewater collection that is not metered or charged for by volume.

This metric is estimated for municipal and county utilities only using Fiscal Year 2019 data from the Annual Financial Information Reports submitted to the North Carolina Department of State Treasurer. The percentage shown on this dashboard is a simplified metric using data that was not audited and may not reflect the full scope of inefficiencies of the wastewater collection system. This percentage should only be considered to be a very rough estimate of those inefficiencies.

Financial Benchmarks

Ability to cover expenditures and debt service

Measures of Liquidity

Cost Recovery

Leverage

Condition of physical assets

Net Transfers

Cashflow

Average Annual Recent Capital Outlay

Median: $K

Min: $K Max: $K

= Operating Revenues

Operating Expenses excluding Depreciation & Amortization

Data for FY

Operating Revenues
Operating Expenses
Depreciation & Amortization Expense

This non-capital operating ratio measures the ability to cover day-to-day expenditures, excluding depreciation, using operating revenues (mostly charges to customers).

A ratio of less than indicates that revenues were insufficient to cover the utility's day-to-day expenditures, let alone debt service or future capital expenses.

This indicator does not include considerations for depreciation or capital costs. In general, this ratio should be significantly higher than 1.0 to accommodate capital investments.

Among 461 utilities in FY 2019, 89% had a ratio of >=, and 31% had a ratio of >=

= Operating Revenues - Operating Expenses excl. Depreciation

Principal + Interest Payments on Long Term Debt

Data for FY

Operating Revenues
Operating Expenses
Depreciation & Amortization Expense
Principal Paid on Long-Term Debt
Interest Expense

Debt Service Coverage Ratio measures the ability to pay for debt service and day-to-day expenditures using operating revenues (mostly charges to customers).

A ratio of less than 1.0 indicates that revenues were insufficient to cover the utility's day-to-day expenditures and payments on principal and interest on existing long term debt, and the utility runs the risk of going into default.

A negative ratio indicates that operating revenues were less than day-to-day expenditures alone, forcing the utility to look to nonoperating revenues to cover the difference and their debt payments.

In general, this ratio should be higher than 1.0 in order to set money aside for future capital investments. Water systems applying for state funds to expand or extend service are required to achieve a ratio greater than 1.0 (with a few exceptions).

Among 385 utilities with long term debt in FY 2019, 69% had a ratio of >=, and 59% had a ratio of >=

= Current Assets excluding Inventories & Prepaids

Current Liabilities

Data for FY

Current Assets
Current Liabilities

Quick Ratio is a measure of short-term liquidity— that is, a utility’s ability to pay its current bills.

It may be calculated as the ratio of unrestricted current assets (excluding inventories and pre-paids) to current liabilities (including deferred revenues and excluding BAN’s), although there are also other ways to calculate quick ratio.

The industry-accepted minimum benchmark for this ratio is , although utilities should strive to achieve a higher ratio for financial security.

Among 407 utilities in FY 2019, 80% had a ratio of >=, and 67% had a ratio of >=,

= Unrestricted Cash and Investments

Operating Expenses excluding Depreciation & Amortization / 365

Data for FY

Unrestricted Cash & Investments
Operating Expenses
Depreciation & Amortization Expense

Days Cash on Hand measures the level of unrestricted cash (reserves) your utility maintains relative to day-to-day expenditures.

In summation, this estimates the number of days your utility can pay its daily expenditures (including operation and maintenance expenses, taxes, and interest on long-term debt) with no revenue coming in.

There are no natural benchmarks for this indicator although the higher the number, the more protected your utility is against revenue shocks.

Generally, a utility should aim to maintain several months’ worth of cash on hand, and at the very least exceed the length of the billing period (usually 30 to 60 days). AA-rated utilities and beyond often maintain over one year’s worth of days cash on hand.

Among 450 utilities in FY 2019, 78% had >= days of cash on hand, and 53% had >= days of cash on hand.

= Operating Revenues

Operating Expenses including Depreciation & Amortization

Data for FY

Operating Revenues
Operating Expenses

This operating ratio indicates whether operating revenues (mostly charges to customers) were sufficient to cover operations and capital (in the form of depreciation) for the water and/or wastewater utility in the fiscal year.

It is calculated by dividing operating revenues by operating expenses including depreciation. A ratio of less than could be a sign of financial concern. In general, this ratio should be higher than to accommodate future capital investments.

Among 462 utilities in FY 2019, 49% had a ratio of >= , and 16% had a ratio of >= .

= Total Long Term Debt

Total Net Assets (Fund Equality)

Data for FY

Total Long-Term Debt
Total Net Assets or Fund Equity

This indicator measures the existing level of leveraging of assets, and is used by funders and bond rating agencies to evaluate the risk of providing additional loans to the utility.

The ratio indicates the amount of long-term debt that exists for every $1 of assets (fund equity).

A utility with a ratio greater than 1.0 has more long-term debt than equity in the system’s assets. There are no natural benchmarks for this indicator, and funders and bond rating agencies will assess this ratio in various ways. In general, the higher this ratio, the more likely the utility will be considered to be over-leveraged and the more difficult it will be for the utility to obtain additional loans.

Among 462 utilities in FY 2019, 64% had a ratio lower than , and 93% had a ratio lower than 1.

= Accumulated Infrastructure Depreciation Expense

Total Depreciable Assets

Data for FY

Accumulated Infrastructure Depreciation Expense
Total Depreciable Assets

This indicator of infrastructure condition estimates the portion of the average expected life of the utility’s physical assets that has already passed.

As this ratio approaches 100%, the capital assets become fully depreciated, and infrastructure needs replacement or rehabilitation.

The accuracy of this indicator relies heavily on the accuracy of the depreciation schedule, and historic pricing likely distorts this indicator (newer utilities may be slightly disadvantaged as a result).

Among 461 utilities in FY 2019, 44% have used up less than a quarter of their asset's expected life, and 100% used up less than half of their expected life.

= Transfers In - Transfers Out

Data for FY

Total Transfers In
Total Transfers Out (incl PILOTS)

Enterprise funds such as water and wastewater should be self-sustaining and not transfer money in from or out to other funds.

Utilities that consistently rely on transfers in from the General Fund or other funds to remain solvent are financially unsustainable and must raise rates to achieve self-sufficiency.

It is also inappropriate financial practice for other funds to consistently rely on transfers from water and wastewater utilities, since this depletes the reserves needed to fund capital investment in the utilities and may cause overcharging of customers to subsidize these other funds.

Practically speaking, one-time transfers may be necessary, but dependency on consistent, annual transfers should avoided. However, regular transfers out may be justifiable if they are used to reimburse for services provided to the utility through the General Fund (e.g., indirect payments, which are sometimes included in this indicator).

Among 465 utilities in FY 2019, 68% did not transfer money in or out of the water and sewer fund, while 18% had a net transfer in from other funds.

= Days Sales in Receivables

Days in Billing Period

Days Sales in Receivables = Net Customer Accounts Receiveable

Charges for Services / 365

Data for FY

Days Sales in Receivables
Billing Period
Days in Billing Period
Receivables Ratio

Net Customer Accounts Receivable
Charges for Services

This is the ratio of days sales in receivables, which is an indication of how quickly payments are being collected, relative to a utility’s billing period. A ratio of 1.0 means that the utility is able to collect payments from customers on average about one billing period after the bills have been sent.

Each utility should have procedures in place to ensure that customers will make payments within the prescribed due date. If days in sales receivables is much greater than the maximum number of days allowed before payment is due, as indicated by a receivables ratio greater than 1.5, the utility may be inefficient in collecting payments from customers. The inability to convert receivables into cash on a timely basis negatively affects cash flows, and therefore, investment earnings.

Instances where the receivables ratio is significantly lower than 1 may be an indication that unbilled receivables have not been recorded in the financial statements at the end of the fiscal year.

= Operating Revenues - (Operating Expenses Excluding Depreciation) – Changes in receivable, prepaid, inventory and payable balances that affect cash balances

Data for FY

Cashflow from Operating Activities
Comparison Group
Comparison Group Size

This statistic measures the liquidity of a utility’s operations before any new cash is used from capital acquisitions/sales or debt financing.

A relatively small or negative cashflow can be an indicator that fees for services are insufficient to adequately cover the costs of day-to-day operations. It can also be an indicator of excessive operating costs.

Comparisons were made to similar-sized utilities to determine areas for cost-savings and improved efficiencies.

What do the colors mean?
Each band on the dial represents a quartile of utilities having a similar number of accounts. The two middle bands on the dial show the spread of cashflow from operating activities for the middle 50% of . The dark green band on the far right of the dial reflects the cashflow from operating activities for the highest 25% of similar-sized utilities. On the far left end of the dial, the lightest color band shows the lowest 25% of cashflow from operating activities for similar-sized utilities.

However, the color bands of this dial are meant to serve as visual cues for where a utility falls within its peer group, and do not by themselves fully indicate the merit of a utility's rate setting practices.

= Average of the Capital Outlays in the last 5 years

Gross Value of Total Depreciable Assets

Data for FY

Total Depreciable Assets

Capital Outlay -
Capital Outlay -
Capital Outlay -
Capital Outlay -
Capital Outlay -

All utilities encounter capital expenditures as infrastructure deteriorates over time and requires continuous rehabilitation, replacement, and renewal. Capital outlays are the expenditures on capital projects, which could vary significantly from year to year depending on the timing of the projects. The average of capital outlays in the last five years evens out those outlays to provide a more consistent estimate of how much the utility has been investing in capital projects recently.

In this ratio, the average annual capital outlays are compared to the gross value of existing depreciable assets. It provides a rough estimate of the proportion of existing assets that have been rehabilitated, replaced, or renewed on average each year. While the actual percentage of assets that have been improved requires more detailed analysis, this metric provides a useful approximation nonetheless. The higher the value of this metric, the more rapidly the utility is improving its infrastructure.

If utilities do not routinely and adequately invest in its infrastructure, assets will fail, and capital costs can increase dramatically by delaying capital projects. Click the button below to download a free spreadsheet tool that a utility can use to plan how to pay for capital improvement projects.

Plan to Pay: Fund Your Capital Improvement Plan

= Average of the Capital Outlays in the last 5 years

Operating Revenues

Data for FY

Operating Revenues

Capital Outlay -
Capital Outlay -
Capital Outlay -
Capital Outlay - /th>
Capital Outlay -

All utilities encounter capital expenditures as infrastructure deteriorates over time and requires continuous rehabilitation, replacement, and renewal. Capital outlays are the expenditures on capital projects, which could vary significantly from year to year depending on the timing of the projects. The average of capital outlays in the last five years evens out those outlays to provide a more consistent estimate of how much the utility has been investing in capital projects recently.

In this ratio, the average annual capital outlays are compared to the total operating revenue in the most recent year. It provides a rough estimate of the proportion of one year’s operating revenue that is being spent on capital projects. The higher the value of this metric, the greater the proportion of its revenues a utility is spending on capital projects. There is no universally accepted benchmark for this ratio, except that it is expected that most utilities will be investing some of its revenues on capital projects, and generally the more the better as long as the utility can sustain its operations alongside the capital investments. Utilities with very high ratios (e.g. 100% or more) most likely have received loans or grants to pay for the capital projects, and are not actually spending nearly all of its operating revenues on capital outlays.

If utilities do not routinely and adequately invest in its infrastructure, assets will fail, and capital costs can increase dramatically by delaying capital projects. Click the button below to download a free spreadsheet tool that a utility can use to plan how to pay for capital improvement projects.

Plan to Pay: Fund Your Capital Improvement Plan

= Operating Revenues

Operating Expenses including depreciation & amortization

Data for FY

Operating Revenues
Operating Expenses including depreciation
Depreciation & amortization expense

The financial data displayed are for Fiscal Year , adjusting for the rate increase you selected below and the estimates of consequential reduction of water use.

Data Not Available: Though data for this dial is not available for this utility, the dial can be turned on by the user manually inputting the relevant data.

Click on the “Edit Data or Add Utility” button in the upper right corner and either clone and edit your utility, or create a new utility entry from scratch. This feature allows users to edit or enter data relating to utility finances, rates, and demographics, which will then be reflected on the dashboard. For example, adding the Annual Median Household Income for a utility’s community will turn on the Affordability dial, while the Cost Recovery Dial is controlled by a utility’s Annual Operating Revenues and Expenses including Depreciation.

Please note that the edited data are temporarily saved in the user’s browser cookies, not permanently written to the database. The edited data can only be viewed on that particular device. To share results from the Edit Data or Add Utility feature, you must print or take a screenshot of the dashboard while the dial is active.

Among 462 utilities in FY 2014, 49% had a ratio of >= 1, and 16% had a ratio of >= 1.2.

Characteristics

Utility Owner
Ownership type
Primary County
Primary service area
Date Rates Effective

		Statewide Stats
Number of Systems	1	547

Est. Number of Connections
Est. Service Population
Operating Revenue
Operating Expense
Current Assets

Census Year		2018
Average Household Size		2.52
Median Household Income		$52,413
Poverty Rate		15.42%

Links

This Rates Dashboard is designed to assist utility managers, finance directors, Board members, local officials, reporters, and customers to compare their utility's residential water and wastewater rates against multiple factors, including utility finances, system characteristics, customer base demographics, and geography. The dashboard is updated annually, in conjunction with a survey conducted by the North Carolina League of Municipalities (NCLM) and the Environmental Finance Center at the UNC School of Government. Audited financial data for this dashboard are provided by the Local Government Commission, which collects annual financial reports from all local government owned utilities in North Carolina. Additional tools, reports and tables on NC rates are available below.

This free resource for water and wastewater utility managers is provided and funded by the Division of Water Infrastructure (DWI) at the North Carolina Department of Environmental Quality. DWI administers the State's funding programs for many types of projects, including sewer collection and treatment systems, drinking water distribution systems, water treatment plants, stormwater management systems, and stream restoration. DWI also provides support for the the State Water Infrastructure Authority (SWIA), which is responsible for setting priorities and criteria for awarding federal and state funding for water and wastewater infrastructure projects, and creating a master plan for state water infrastructure in North Carolina.

Resources for North Carolina

NC Rates Tables, Report, Other Resources

NC Division of Water Infrastructure

The LGC's Financial Condition Dashboard

NC System Development Charges

North Carolina League of Municipalities

Direct Assistance for Small Systems

Additional Tools and Resources

Financial Health Checkup for Water Utilities

Water & Wastewater Rates Analysis Model

Plan to Pay: Fund Your Capital Improvement Plan

Residential Rates Affordability Assessment

EPA Water Finance Clearinghouse

Email Feedback or Comments

Affordability

Demographic Information ?
Service Area
2018 Percent Poverty
2018 Percent Below 2x Federal Poverty Income
2018 Median Household Income
2018 20th Percentile Income
2018 Unemployment

System and Community Info

Water System Characteristics Obtained from SDWIS and the CA Water Board
PWSID
Community Water System Name
Primary Water Source Type
Number of Monitoring Violations 2017-2020		?
Number of Water Quality Violations 2017-2020		?
Service Population		?
Number of Connections		?
Percent of Connections that are Metered		?
Compliance Status with the Human Right to Water watchlist in 2020		?

Community Characteristics Obtained from the Census Bureau ?
Service Area
Population 2018
Population 2010
Population Change

Please select a utility above to view current North Carolina rates survey data.

When the dashboard appears, you will see the first utility alphabetically in the survey group. Please select the desired utility/rate structure, selecting service(s), monthly usage, and comparison group of your choosing on the left half of the dashboard.

Please click the “OK” button below when you are ready to proceed.