scope:

PURPOSE

This manual provides a comprehensive overview of best management financing practices that water utility management should evaluate when determining short- and long-term strategies for meeting capital requirements. Only by thorough analysis of a particular water utility's long-term capital requirements and financial position will utility management be able to determine the feasibility of one or more specific financing concepts.

This manual is not intended to be, nor should it be considered, a complete text on water utility capital-financing concepts. A variety of other sources are available through various industry and professional organizations. Instead, this manual should primarily be considered a guide for determining capital requirements, strategic planning, and financing alternatives. It also provides general information for those utilities considering the issuance of long-term debt. Each of these areas is critical to the capital planning and financing process but must be tailored to and reflect factors applicable to a local situation. No recommendations or opinions about the relevance of alternative forms of available financing have been provided. Determining the relevance of alternative financing options is considered to be the prerogative of utility management.