Getting off the Rates Roller Coaster

Customer since 2016 | Population: 22,000

"Waterworth allows us to show what we need to do to be a sustainable system"

BACKGROUND

Virgin Valley Water District (VVWD) in Nevada provides water services to residents in the City of Mesquite and the Town of Bunkerville, a population of approximately 22,000 people. The District's board of directors were affected by election waves, and because of a short-term appearance of financial solvency and increasing reserves, they hesitated to raise rates. Although this was popular with ratepayers, it created financial analysis revealed the need for an increase. The District was quickly losing financial ground. Compounded with the need to maintain compliance with bond covenants, the District was about to begin the upward climb of the "rates roller coaster."

In 2017, after a half year with no change in rates and the largest infrastructure boom the region had seen, the District was forced to implement an across-the-board 36% rate increase. This was necessary to maintain an adequate debt service coverage ratio as per their bond agreement.

HOW WATERWORTH HELPED

VVWD was one of Waterworth's intrepid first users and staff saw the Waterworth vision right away. They found the onboarding process to be easy, and data uploading streamlined. From the start, staff worked at their own pace, exploring the software's different tools and learning to use it to their benefit.

The Waterworth vision quickly came into focus for Board members as well, as they saw the effects of rate changes implemented. Waterworth also allows for users to track and model the effects of rate changes over time. Dynamic graphics and projections, rather than simple tables show the effects of rate changes over time, making it easier for Board members to understand and interact with the process.

"Waterworth has just taken the heat out of [rate increases]."

SUPPORT MADE THE DIFFERENCE

Extensive support from Waterworth has provided immense value to VVWD. Waterworth is acutely aware of their objectives, and interns annually with staff to set goals and create a work plan to achieve them. Waterworth experts have also been on the phone for support during board meetings, and District staff stays in regular contact, using tools such as live chat, sometimes even after hours.

Staff have also appreciated Waterworth's responsiveness to feedback on the software. They provided several suggestions for improved functionality, as well as requests for customization, and Waterworth was able to accommodate these quickly.

CONCLUSION

VVWD staff knew they needed a better way to forecast revenue needs and ensure they are financially sustainable for the long-term. For them, the experience, consistent power of predictive, while laborious and easy-to-break Excel spreadsheets simply weren't up to the task. Fortunately, Waterworth checked all the right boxes and VVWD is in a much better position because of it.

Developing a multi-year rate schedule has allowed residents to prepare, since future rates are no longer a surprise. This has led to an increase in public meetings, with only two people showing up to one recent rate hearing. As Smith says, "Waterworth has just taken the heat out of it." The platform has allowed the District to have non-emotional conversations about rate increases and take positive steps towards sustainable service delivery.