United States
Environmental Protection
Agency
Office of
Water
(WH.595)
July 1989 :
EPA 430/09-89-006
  uilding Support For
Increasing User Fees

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Printed on Recycled Paper

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 Introduction
What's the single most important factor when increasing water
and wastewater user fees? Public education! This publication is
a manual telling how to identify the problem, shape the message,
deliver the information, evaluate your efforts and document the
results. Also, there's a success story included so you can see how
one community built support through public education.
Acknowledgments
This publication was prepared by Haig Farmer of EPA's Office of Water
and Sharon Rollins of The University of Tennessee's Municipal Technical
Advisory Service. The UT team also included Gary Fouts, Anne Hawkins,
DeForrest Jackson and Debbie Phillips.

EPA and UT thank the State of Tennessee's Media Production Services and
Gary Fouts for providing photographs for this document.

The following sources of information were used in preparation of this
publication: EPA, Office of Water studies on user charges; The Popular
Plant Manager/How to Win Public Support, Water Pollution Control
Federation Technical Practice Committee, Alexandria, Virginia, 1986; and
Conducting a Sewer Rate Increase Campaign, a video presentation from
the City of Kokomo, Indiana.

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                                                                     Pagel
                    The Problem-
                    Running  Out of Money
    Clean water. We all want
it...we all need it. But it takes
money to keep clean water
flowing into our homes and
workplaces and it takes money
to treat our waste water.
    As an elected official or utility
manager, you see operational
costs continually rising and the
revenues coming in just don't
cover the expenses.
    In the past, federal and state
construction grants kept
wastewater treatment costs
artificially low. A California study
revealed that these grants
lowered the average wastewater
treatment costs by 39%.
    Inflation will continue to
increase operational costs. State
and federal pressures to
maintain and improve water
quality will continue and translate
into higher costs.
   You can increase efficiency
and hold costs steady for a
while, but eventually more
revenues will be needed to keep
your utility financially sound.
   Your best revenue source for
paying water and wastewater
treatment costs is user charges.
    So, it's an economic
problem. Right?

    A political problem. Right?

    Elected officials and
customers won't support an
increase in user fees. Right?

    Wrong!

    All across the United States,
citizens are becoming more
aware of waste  byproducts of our
society. Tied to  that awareness
is the understanding that it costs
more to provide safe drinking
water and keep our rivers clean.
People care about their
community and  the quality of life

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Page 2
                    for themselves and their children.
                    Getting support for increasing
                    water or wastewater fees isn't an
                    economic problem or a political
                    problem (unless you let it
                    become one).
                        It's a problem of public
                    education—a process of
                    informing decision-makers and
                    consumers that clean water has
                    a price, letting them know what
                    their money is buying and
                    explaining the consequences of
                    poor water and wastewater
                    management.
                          The User Pays —
    User charges can be
increased with public support
and little opposition. It'll require
work, organization and attention.

    But you can do it.

    It has been done! It should
be done!

    Before we get into public
education, let's cover some
basics.
    The trend across the country
is to support public utilities
through user fees. This means
the people using the services
pay the costs.
    But even with  pressures to
make water and wastewater
systems financially self-sufficient,
local officials are most reluctant
to increase user charges. If not
done correctly, the political
backlash and public resistance
can  harm a sound operation.
    Basically, the public is quite
willing to pay a fair price for
something it values. Citizens just
need to be educated that they're
getting their money's worth.

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                                                                      PageS
                   Do Your Homework
   The work of implementing a
user fee increase should start a
year or so before the target date.
Do your homework. Examine the
system. Factually and honestly
appraise what you've been doing
and what you need to do in the
future. Tell how the Job is getting
done or not getting done. You
might need the objective opinion
of an outside expert.

   For instance:
    •*• is management
  top-heavy? Can the
  operation be run more
  efficiently?

    *> Can operating and
  repair costs be cut?

    «*• Is all water being
  accurately metered and
  billed?           	

    «*• Do you aggressively
  collect due accounts?

    *- Does your use of
  in-house or contract labor
  maximize the customer's
  dollar?
    You can probably put off a
user fee increase for a short time
by maximizing resources and
shaping a more efficient
operation.

    When you can't delay an
increase any longer, highlight the
problems that have been
corrected:

    • You have eliminated
inefficient methods;
    • You have trimmed the
labor force into a leaner, team-
oriented group.
    • You have initiated water
conservation practices.

    Point out the problems that
need attention:

    • Worn-out equipment is
breaking down too  often and
increasing maintenance costs;
    • Portions of the system
need upgrading;
    • Costs are going up,
particularly those you have no
control over. Inflation alone will
force a rate increase.

    Take photos of facilities,
equipment and people. These
visuals will come in handy for
your next step—communicating
with the public.

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Page 4
                    Public Education
                       An effective public
                   education program is the
                   single most important factor in
                   a successful rate increase.
                              Why?
                       Knowledge means power,
                   strength and comfort. If people
                   understand a service's value and
                   importance in their lives, they will
                   support and pay for it. It's crucial
                   for citizens to understand that
                   the treatment of water and
                   wastewater are essential
                   services. Show how these
                   services benefit them.

                       Public education is a
                   necessity, not a luxury.

                       It's your best means of
                   accomplishing your goal of
                   increasing user fees.
                       In the process:
                       *- Users will appreciate the
                   importance of having a reliable
                   water supply and effective
                   wastewater treatment. They'll
                   understand that it reduces
                   diseases and provides a better
                   environment.
                       *- Users will see the link to
                   community growth and  economic
                   development. Clean water
                   means more jobs and increased
                   property values.
   *- Users will understand that
clean water is relatively
inexpensive. Compare one
month's water and sewer bill to
the cost of cable TV or other
services.
   «*- Users, utility staff and city
officials will feel that the utility is
performing a vital service, at the
lowest possible cost, while
protecting the environment.
   *- The public will accept a
rate increase without major
controversy or elected officials
being  booted from office.

    What's being done is
important!
       What's the
       message?
    Talk about the city's
under ware—the grimy sewer
system, leaky water lines—and
its dilapidated condition. Be
prepared to answer the key
question, "Why is the increase
necessary?"
    Make use of what you
learned during the homework
phase. Highlight the problems
that have been corrected. Point
out the problems that need
attention and what it will cost.
    Talk about equipment needs

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                                                                         Page 5
and the importance of retaining
top-notch operators. Explain
infiltration/inflow in the sewer
system, tell how old the water
lines are, how they were
constructed, the risk old lines
pose and the dangers of a poorly
run system.

   Gather materials to illustrate
current conditions, such as:
   «*- A slide or video
presentation showing cracked
sewer lines, deteriorated water
pumps, overflowing manholes;
   *• Data on ground water
contamination, photos of surface
water contamination and graphs
of operational costs over time;
   •*• Visual aids such as bottles
of treated and untreated water or
wastewater.
    Highlight corrective
measures and their costs, such
as:
    *• an engineering study of
the treatment system;
    *• a plan for repair or
replacement of water or sewer
lines;
    «*• a city ordinance to
eliminate sources of inflow from
private property.
    Link community growth,
economic development,
recreation and increased
property values to water and
wastewater treatment services.

    Make the impact personal.

    For example, this rate
increase will fix the sewer line on
Elm Street and reduce odors.
      -HmW^
                    ,


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Page 6
                    Town Creek will be cleaner.
                       Make the message honest,
                    friendly and helpful, pointing out
                    the good for the community and
                    the individual.
                       If you've done everything to
                    economize, then the customers
                    will accept the increase as
                    necessary.
                       The key idea is to
                    communicate an honest,
                    concise, consistent, positive,
                    believable message in as many
                    different ways and as many
                    times as possible. To convince
                    people, you must first capture
                    their attention, relate  the
                    message to them, then
                    demonstrate the value of the
                    message.
    Who's to do it?
   You need a primary
spokesperson who is:
   *• organized;
   ••*- very familiar with the
subject matter;
   *- enthusiastic (Nothing
great was ever achieved without
enthusiasm—Ralph Waldo
Emerson);
   *- able to communicate
effectively; and
   *- able to lead and shape
opinions into a consensus.
   The messenger and the
supporting team must see the
value of the rate increase itself
and the importance of a public
             education
             program to
             accomplish that
             goal.
                  Back up the
             primary
             messenger with
             city personnel
             (the more the
             better),
             communication
             specialists,
             technical experts
             and others. It's
             critical, though,
             for an insider—
             someone from

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                                                                       Page 7
the governing body or utility
operation—to take the lead. The
public will trust a messenger they
know.
    Resources can vary. Look to
engineers (either in-house or
consultants) for technical
expertise on operations and
expansion needs. An engineer
with marketing experience would
be a real plus.
    Use consultants who
specialize in advertising and
public relations. These
consultants are often available
on a free-lance basis.
    Look to a  nearby college or
university for public education
assistance. College students
majoring in journalism can help.
Your campaign could become a
class project or community
service work.
    Seek help
from public
relations
professionals.
      How do you
         get the
  message across?
    You do it with people, time
and money.
    Start public education in the
work place. Turn your staff into a
public relations team. All utility
employees are information
officers. What they say in casual
comments can create a positive
or negative image of the utility
operation.
    Inform supervisors and
encourage them to involve
employees through small group
discussions. Get the employees
into the process early. Educate
them in answering questions and

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PageS
                    complaints. Help employees feel
                    good about their services and
                    how their jobs are connected to
                    other interests outside the
                    workplace—recreational water
                    sports, community service
                    organizations, youth activities.

                        Meanwhile, target the
                    audiences outside the utility and
                    identify what information they will
                    need.
                        ©  Local governments—
                    elected leaders, government
                    staff
                        ©  Community leaders,
                    groups—civic groups, business
                    and industry associations, senior
                    citizen groups, garden clubs,
                    churches, recreational groups
   © The media—newspapers,
radio, TV, business journals,
special interest magazines
   © Youths—schools, scouts,
4-H clubs, athletic associations,
church groups
   © The general public
         Local
         Governments
    Public officials must buy into
the proposed user fee increase
and public education program.
They are residents of the
community and rate payers, too.
In addition, they're responsible
for protecting the environment,
accomplishing growth objectives
and keeping operations fiscally
sound.
    Give governing officials more
detailed information than the
general public. Provide them
budgets, operational reports and
audits. Use graphs to simplify
complex information. Take them
on tours of trouble spots. Show
the officials the success stories.
Turn them into a pool of
secondary messengers behind
the primary spokesperson. They
must be able to answer
questions accurately and
effectively.

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                                                                        Page 9
    At this point, simultaneously
target your message to
community groups, the media,
youth audiences and the general
public. The impact will be
enhanced because the public
education campaign will touch
people wherever they go.
         Community
         Groups
    Consider calling key
business and civic leaders to a
special work session for a
detailed discussion of problems.
Let these leaders ask questions
and have input. They'll be
interested in how the service or
lack of service could affect the
community's business and
economic health. Demonstrate
how lack of adequate water and
wastewater services can stifle a
community's growth.
    Talk to leaders of community
groups to understand their views.
Try to tie your message of a self-
sufficient utility operation to each
group's special interests.
    Shared goals have a
greater chance for success.
          Media
    Work with the media, not
against them.
    There is no better vehicle for
getting information to the public
than the newspaper, radio or TV
station. The media are the eyes
and ears of the community. The
general public looks to the media
to report all sides of an issue.
Reporters are interested in how
issues affect the public—
particularly those about quality of
life. "Why?" is the most important
question you'll answer for them.
    Just as with all the target
groups, educate the media about
water and wastewater treatment.
Print and broadcast reporters
deal in facts...and plenty of
them. Water and wastewater
treatment is complicated. Your
challenge is to explain complex
processes, problems and
proposed solutions in  easy-to-
understand terms.
    Don't use jargon or
acronyms.
    Communicate with the media
through news releases, fact
sheets, telephone calls and
plenty of one-on-one contact.
Take extra time and effort to
make sure reporters get all their

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Page 10
                    questions answered. A complete
                    news story is invaluable in your
                    effort to increase user charges
                    with minimum resistance.
                    Journalists will be more open to
                    your concerns and priorities if
                    they know you're factual,
                    cooperative, straightforward and
                    not trying to manipulate them.
                        Convince the media a rate
                    increase is necessary and you
                    could get favorable editorials.
                        Newspaper articles will get
                    more facts to the public. Radio
                    and television will get your
                    message to the public quicker.
                        Radio and television have
                    special needs. Everything moves
quicker with the electronic
media. Reporters want snappy
quotes that sum up a point in 30
seconds or less. Long rambling
explanations are not going to get
on the air. Think in terms of
headlines. Be aware of how you
will sound or look.
   TV combines sight and
sound. You can give the viewer a
first-hand look at wastewater
problems.
   For small town newspapers,
the best contact is the editor. For
large city dailies, get in touch
with the environmental or
science reporters. For radio and
television, contact the news
directors or assignment editors.
                                                               Youths
                                                        Focusing part of the public
                                                    education campaign on the youth
                                                    is like putting money in a savings
                                                    account. The effort will pay
                                                    dividends in the future.
                                                        Studies of water or

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                                                                          Page 11
 wastewater treatment can be
 included in a school science
 lesson or a scout field trip.
    Open the plant for tours.
 Initiate poster contests with
 prizes for the best use of theme.
 Hold science fair competitions
 illustrating how clean water
 affects our lives.
    Grade schoolers are eager
 learners. Teens are naturally
 inquisitive. And they all have
 enormous influence on the rate
 payers (parents).

    Young audiences grow up
 to be rate payers themselves.
          General Public
    Set aside part of your public
education effort for mass appeal
to the general public because
there will be those who don't
belong to a civic group, read a
newspaper or have children.
    The most effective way to
reach these audience members
is at their home...send
information to each house,
include newsletters with monthly
water and wastewater bills,
initiate a house-to-house walking
campaign to hand out leaflets
and hang door flyers.
    Use public hearings to
 communicate directly with
 customers. Create a phone bank
 from in-house staff members to
 call customers, tell them about
 the proposed rate increase and
 encourage their participation  at
 the public hearings. It will
 impress customers that you care
 enough to solicit their opinion.
    Create displays at public
 libraries. Set up a booth at the
 county fair. Take a traveling road
 show to the park or mall.

    Don't forget to budget for a
 public education campaign.

    The policy-makers will
 decide at what level to fund the
 program. The cost will vary
 depending on whether you mail
 photo-copied letters to
 customers in their bills or hire an
 outside public relations firm to
 create television commercials.
   The Milwaukee Metropolitan
 Sewerage District spent
$712,000 over four years to build
 public trust for the district's water
 pollution abatement program.
That money paid for a 32-foot
traveling educational vehicle,  a
citizen newsletter, newspaper
inserts, a citizen information and
message line and a one-hour,
prime-time television special.
   On the other hand, Twin

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Page 12
                    Falls, Idaho, spent $2,000 to
                    improve the credibility and image
                    of the wastewater treatment
                    facility. The one-time effort
                    included a Clean Water Day
                    proclamation, newspaper articles
                    and advertisements, television
                    appearances, a poster contest
                    for school children, a slide show
                    and videotape, plant tours,
                    educational programs and
                    demonstrations.

                       You will need money for:

                       • Staff. This may be existing
                    staff members who take on
                    additional duties or it may be
                    outside consultants. Realize that

      Budget Checklist:
          Staff
          Materials,  Services
          Overhead
public education doesn't remain
at full intensity continuously. But
initially, the program will require
significant sitaff commitment.
Maintaining the program will
require less staff.

   • Materials and services.
This includes the costs for
producing brochures, posters,
displays, slides, videos,
advertisements and other
promotional items.

   • Overhead. This includes
office space, postage and other
office supplies. The costs may
be absorbed into an existing
operating budget for a small
program.

   Just remember, money and
the snazziest full-color graphics
won't buy support or convince an
audience. The message must do
it. Be honest, straightforward and
convincing,.

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                                                                       Page 13
\
9

Evaluate,
Document & Continue
    You kept an ear to the
ground all through the public
education campaign and made
adjustments. You measured the
number and nature of complaint
calls. You tracked how the media
reported and editorialized on the
rate increase.
    How did we do?
    Now, assess how successful
the program has been.
    Did your target audiences
receive and agree with the
message? Did you accomplish
your objectives? Did your
objectives gain public support?
    Survey public opinion on the
rate increase, new projects and
operations. Mail a simple opinion
poll to customers or conduct
telephone interviews.
    With the benefit of hindsight,
reconsider the complaint calls,
media coverage and poll results.
How could you have done things
differently to diffuse opposition?
    Assess whether dollars
were spent wisely. What
improvements should be made
before the next public education
thrust?
    Since the public education
program needs to be maintained
and geared up and down as
circumstances dictate, this type
 of assessment is a must. Self
 evaluation leads, quite naturally,
 to documentation.
          Keep a
     written record
    Why reinvent the wheel? Put
 information in the files on the
 public education program. Even
 if the effort wasn't as successful
as you had hoped, the history
will help next time you^r your
successor seek public support.
    Progress is based on the
discovery and correction of
errors and the writing of a
history. Don't lose the knowledge
gained.
     Keep on track
    Hopefully, your public
education program was a
success. The water and
wastewater utility is on sound
financial footing. How do you
keep it there?
    An EPA study provided a few
suggestions:
    •*- Make small annual
adjustments. Incremental rate
increases indicate good
management. Costs for power,
chemicals, materials and labor
will continue to rise due to

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Page 14
                    inflation alone. It makes sense
                    that revenues must be increased
                    proportionally.
                        Large, infrequent increases
                    could lead customers to suspect
                    poor management.
                        Substantial rate adjustments
                    call for extensive public
                    education programs. Small
                    increases still need to be
                    explained but you can do it with
                    less effort and expense.

                        •*- Move the utility operations
                    out of the political realm. Put
water and wastewater operations
under an authority separate from
the political body.

   *• Start billing monthly.
Consider optional fixed
payments. This allows customers
to budget more effectively. It's
easier to make smaller monthly
than larger quarterly payments.

   *- Start billing separately.
Clearly separate the charges for
water, sewer, trash disposal, etc.
Charges should be based on
           costs so the
           customer knows the
           actual value of each
           service. This method
           of billing doesn't
           allow one operation
           to supplement
           another.

             •*• Continue the
           public education
           program. Give
           periodic progress
           reports through
           press releases.
           Send information to
           customers with their
           bills. Thank them for
           their continued
           support. These are
           good, low-cost ways
           to keep information
           before the public.

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                                                                      Page 15
                   Review
    • Identify the problem—you
need more money to upgrade
and maintain the water and
wastewater utility. User charges
are the best revenue source.
    But the public needs to be
educated. Customers need to
realize the value of clean water
and understand that user
charges must pay the system's
costs.

   • Do your homework.
Identify cost-saving measures
and implement any you can.
Highlight the problems that have
been corrected. Point out
problems that need attention.

   • Develop a comprehensive
public education campaign by
focusing the message and
choosing a lead spokesperson.
Then, target the various
audiences and communicate the
need for a rate increase in ways
they'll understand. Don't forget to
lay out a budget for the
campaign.

   • Document your efforts and
the results. Assess how
successful your campaign has
been.

   • Take steps to keep the
utility on sound financial footing
by establishing an ongoing public
education program that can be
intensified as needed.

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Page 16
                   A Success Story
                      Kokomo, Indiana, knows
                   how to do it.
                      Local officials passed a 45%
                   wastewater rate increase and in
                   two public hearings, fewer than
                   one dozen people spoke against
                   the increase. No local industry
                   voiced opposition to the
                   increase. Best of all, say local
                   officials, a small but persuasive
                   group publicly expressed support
                   for the increase.
                      Kokomo had the typical
                   challenges...plant odors, sewer
                   line reconstruction and repair
                   needs. Most of the rate increase
                   paid for a bond issue to fund 17
                   sewer projects.
                      The city's successful
                   campaign had five basic points:
                      O Only raise rates when
                   needed. A system examination
                   uncovered strengths and
                   weaknesses that had gone
                   unnoticed. By the end of three
                   years, the city had lowered the
                   cost of processing a million
                   gallons of sewage from $203 to
                   $172.
                      @ Plan ahead. System
                   operators were the first to know
                   an increase was coming.
                       Publicity over the cost-saving
                   moves and how they put off a
                   rate increase gained public favor.
                   Also,  Kokomo readily admitted
                   its weaknesses.
   © Think about your audience.
Kokomo discovered people are
willing to pay a fair price for
something they value. The city
also found out different groups
needed different information.
   «Customers placed high
value on health, safety, clean air
and water, convenience and
cost-effective service and
    ...the public
education campaign
gave everyone an
understanding of the
city's wastewater
service and provided
the revenues for a
better quality service
than ever before.
delivery. The city sent messages
to them in terms of what they
stood to gain from the rate
increase.
    • Elected officials shared the
same concerns as the direct
customers but they also had to

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                                                                        Page 17
be prepared to answer
questions. They needed more
detailed information—on budget
outlays, upgrades, increased
capacity—than the general
public.
    • The media needed
complete information with
special graphics and charts
interpreting complex issues.
    0 Decide the best way to
convey the message.
    In the months leading up to
the rate increase, city officials
kept the public updated on
treatment operations.
    As the target date for the
rate increase approached, the
city identified the message,
made it as simple and accurate
as possible, then repeated it
over and over and over.
    Kokomo is a city of 50,000.
The mayor and superintendent
of the wastewater treatment
plant made more than 50
presentations to clubs and
service groups in a two-month
period. The two were armed with
slides of actual sewer problems,
simple charts and diagrams to
help customers understand
complex engineering concepts
and samples of wastewater
before and after treatment.
    Kokomo used the principle
that people remember 20% of
what they see, 30% of what they
hear and 50% of what they both
see and hear.
    © Identify the messenger.
    Because of the complexity of
the proposed projects, Kokomo
chose two spokespersons—the
mayor and the treatment plant
superintendent. The mayor was
the primary proponent for the rate
increase. His responsibility was to
present the basic arguments for
the rate increase, discuss related
community-wide issues and
answer general questions. The
superintendent was always
present to assist when
discussions became technical.
    In summary, Kokomo's rate
increase was successfully
implemented because city
officials planned and carried out
an effective public education
campaign. City officials focused
their message, geared it to
various audiences, selected
spokespersons, then repeated
the message over and over.
    In the end, the public
education campaign gave
everyone an understanding of the
city's wastewater service and
provided the revenues for a
better quality service than ever
before.

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