Getting Started
with CUPSS
A Workbook for Users
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EPA8I6-R-08-005
April 2008
Office of Water (4606M)
epa.gov/safewater
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Contents
Getting Started with CUPSS I
Before you Begin I
Step I -Whyam I here? 3
Step 2 - What assets do I have? 5
Step 3 -What do I do every day? 9
Step 4 - Where is the money going? 12
Step 5 - What now? 15
Glossary 16
Printable Forms
Inventory List (Drinking Water) 8
Inventory List (Wastewater) 9
New Task 10
Finances 13
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Getting Started with CUPSS
This workbook is designed to give you five easy steps to
get ready for using the Check Up Program for Small
Systems (CUPSS) for drinking water and wastewater
utilities—the new asset management software developed
by the U.S. Environmental Protection Agency (EPA). By
completing several pencil-and-paper exercises, you will
have a head start on 'doing asset management' and adding
your information into CUPSS. Let's get started!
For step-by-step instructions on installing and using CUPSS,
consult your User's Guide.
Before you Begin
Before you begin using this workbook, you might have a few questions about CUPSS. Maybe
your state regulator or a technical assistance provider handed you this workbook and said, "Go
for it!" In this section, we'll give you a little bit of information about the CUPSS software and
how you might find it beneficial. We'll even tell you what asset management really means for
your utility.
The first thing you may ask is "What is CUPSS?" CUPSS is 'desktop software,' meaning it is a
program that runs on your PC at no cost to the user. Because CUPSS is desktop software, all
of your CUPSS data will be stored on your computer and is not accessible by EPA. You do not
need an Internet connection to use CUPSS, just a computer to load the software. If you are
connected, the program can use the Internet so that you can register your copy and update
your version when necessary. If you have questions about technical specifications, consult your
User's Kit. The User's Kit is a binder that contains everything you need to know about CUPSS.
It includes the CUPSS Installation CD, helpful fact sheets like the Asset Management Best Practices
Guide as well as the CUPSS User's Guide.
CUPSS is asset management software; its purpose is to help you organize and develop a plan
for the physical and financial health of your drinking water or wastewater utility. If you are
effectively managing your assets, you should be able to successfully meet customers'
expectations at an appropriate cost.
Like other types of computer software, there are two key components—input (what goes in),
and output (what comes out). CUPSS relies on a combination of specific information entered by
the user and general information provided by EPA. The information entered by EPA has been
inserted to provide additional assistance—such as the life expectancy of 6" mains—to provide
simple, eye-opening reports. You only need to enter in a couple of important assets and last
year's financial statement to generate a targeted action plan.
You are likely most intrigued by what CUPSS can actually do for you. We think CUPSS will help
you do these tasks:
• Communicate with the decision makers in your community
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• Make more informed, proactive choices
• Improve the efficiency and focus of your operations
• Maximize limited financial resources
Like anything worth doing, integrating CUPSS and asset management into your utility's culture
will take time and effort. These are certainly high goals, but we think taking the simple approach
used in CUPSS will result in great strides forward for your community.
Helpful Tip:
Don't forget to check out http://www.epa.gov/cupss to register your copy of CUPSS,
find training events near you and learn more about asset management.
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Step 1 - Why am I here?
Your discovery of CUPSS might have been by accident, on purpose or by recommendation. It
might even have been a condition of a loan or grant agreement. Regardless of the how, it is
time to think about the why. Ask yourself, "Why should I or anyone else use CUPSS? How can
this program help me operate and manage my utility more efficiently?" These exercises will
answer these and many other questions you might have.
Also start thinking about who helps you manage your utility—whether it be with operations or
financial records. Having your team in mind will help you with the exercises included in this
workbook.
Let's begin by identifying what you are doing well. We will start by listing
three areas of your utility where you see yourself already
succeeding. For example, if you have someone, perhaps a town clerk or
someone else, who keeps your accounting records organized and up-to-
date, this would be great to include below. Keeping these strengths in
mind will help you leverage opportunities for making changes as needed.
I.
2.
3.
Helpful Tip:
A map will help your utility understand the current service capacity. Use
Internet-based mapping tools (try Google Maps or Google Earth) to
visually designate the boundary of your utility's service area and
important features. You can also do this by hand using a regular or
topographic map!
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Now, think about and list three areas in your management strategy that could be improved to
facilitate your customer service interactions and relationships. For example, having a
comprehensive list of aging fire hydrants that need to be rehabilitated or repaired is beneficial
to the safety of a community.
2.
3.
CUPSS will help improve these areas! CUPSS also provides additional information addressing
other potential areas of improvement. These areas can be as simple as improving customer
relations or as detailed as developing a long-term maintenance strategy. What would you like
to improve and how would you do it? Select one of the areas you just listed, create a
target goal and date. What is your first step toward reaching your goal? Think about it
and write it below.
Here is an example: You have an issue area of "leak or break response time" Your
current response time is 24 hours.
Specific Goal: Reduce the leak or break response time by 50%
Goal Date: One year
First Step: Convene a meeting of all utility staff to discuss why the response time
is currently 24 hours
Area Selected #
Specific Goal:
Goal Date:
First Step:
Goal and milestone tracking is crucial in asset management
applications. CUPSS will allow you to establish and keep track of
both while conducting normal activities and following your
established maintenance plan. For now, just keep thinking about
these important issues. When you start using the software, it will
automatically prompt you to formally begin the goal-setting
process.
Helpful Tip:
Get a head start on
data entry by getting
your files organized!
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Step 2 - What assets do I have?
Now that you have figured out where you are and why you are here, let's examine your utility's
assets. We will use a drinking water chlorination system as an example. How much do you
know about the chlorination system? Can you answer the following questions about this
chlorination system? Do you know how your responses make the difference between having
safe, disinfected water and potentially health-hazardous water?
• When was it installed?
• How much did it cost?
• When was the last major repair?
• What maintenance will you perform on it this year?
• What and when are the typical routine maintenance actions performed?
• When are the major components scheduled to be replaced?
• Will you be financially prepared to replace a major component if it fails?
If you knew the answers to all these, you are already on the fast track to success. It is more
likely, however, that you knew some of the answers and knew where or how to find the rest.
CUPSS helps you identify your assets; allowing all of your important asset information to be
stored in one place.
While entering information about each of your assets is the most time-consuming part of
CUPSS, it is not difficult. In fact, this workbook has been developed to make it an easier
process. The form on the next page is similar to what you will see in CUPSS within the "My
Inventory" section. You can make copies of it, attach it to a clipboard and start digging out
those records. Taking baby steps—like planning 30 minutes every day to add one of the major
assets in your system—will have you in great shape in no time. Once you have mastered this
process, you can start using CUPSS to inventory and manage your assets. Just copy the
information you collected on the forms and putting it into CUPSS. Because CUPSS contains
dropdown features and help tools, you'll find it more efficient to use the software. But for now,
let's focus on thinking about the most important assets you have.
Helpful Tip:
Start with what you know and don't worry about leaving blanks. You can always
come back later!
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Inventory List (Drinking Water)
Asset Name
Associated Asset
Location
Associated Location
Asset Category
Source U Pumping Facility U Treatment U Storage
Distribution
Other
Asset Type
Wells and Springs
Intake Structures
Pumping Equipment
Disinfection
Equipment
Hydropneumatic
Tanks
Concrete & Metal
Storage Tanks
Transmission Mains
Distribution Pipes
a Valves
Q Computer Equipment/
Software
Q Transformers/
Switch gears/
Wiring
Q Motor Controls/Drives
a Sensors
a Buildings
a Service Lines
a Hydrants
Q Treatment Equipment
Q Lab/Monitoring
Equipment
LI Tools and Shop
Equipment
Q Transportation
Equipment
Q Security Equipment
a Land
Galleries and Tunnels
Meters
Raw Water Reservoirs
Generators
Liquid Waste Handling
& Disposal
Solid Waste Handling &
Disposal
Other
Asset Status
Active Q Not in Use- Abandoned Q Not in Use - Back Up Q Future Investment
Can this Asset be Repaired?
Yes
a No
Can this Asset be Rehabilitated?
Yes
a No
Condition
Excellent Q Good Q Fair (Average) Q Poor Q Very Poor
Is the asset maintained according to manufacturer's recommendations? Q Yes
No
Consequence of Failure
Insignificant - CoF of 2 LI Minor - CoF of 4
Major - CoF of 8 Q Catastrophic - CoF of 10
Moderate - CoF of 6
Redundancy
0% Backup a 50% Backup a 100% Backup a 200% Secondary Backup
Installation Date
Expected Useful Life
Original Cost
Replacement Cost
Routine Maintenance Costs
Timeframe
$
Q per/day Q per/week Q per/month Q per/year Q lifetime
Optional Information
Frequency of Routine Maintenance
Model Number
Start Date
Manufacturer
Supplier Name
Address
Phone Number
City, State, Zip
Fax Number
Notes
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Inventory List (Wastewater)
Asset Name
Associated Asset
Location
Associated Location
Asset Category
Pumping Facility
Treatment
Storage
Collection
Other
Asset Type
Pumping Equipment
Disinfection
Equipment
Concrete & Metal
Storage Tanks
Transmission Mains
Valves
Computer
Equipment/
Software
Transformers/
Switchgears/
Wiring
Motor Controls/Drives
Sensors
Buildings
Service Lines
Treatment Equipment
Q Lab/Monitoring
Equipment
Q Tools and Shop
Equipment
Q Transportation
Equipment
Q Security Equipment
a Land
Q Sewers
a Pressure Pipework
Galleries and Tunnels
Meters
Generators
Liquid Waste Handling
& Disposal
Solid Waste Handling &
Disposal
Other
Asset Status
Active U Not in Use - Abandoned Q Not in Use - Back Up Q Future Investment
Can this Asset be Repaired?
Yes
a No
Can this Asset be Rehabilitated?
Yes
a No
Condition
Excellent Q Good Q Fair (Average) Q Poor Q Very Poor
Is the asset maintained according to manufacturer's recommendations?
Yes
a No
Consequence of Failure
LI Insignificant - CoF of 2 LI Minor - CoF of 4
Q Major - CoF of 8 Q Catastrophic - CoF of 10
Moderate - CoF of 6
Redundancy
0% Backup a 50% Backup a 100% Backup a 200% Secondary Backup
Installation Date
Expected Useful Life
Original Cost
Replacement Cost
Routine Maintenance Costs
Timeframe
$
Q per/day Q per/week Q per/month Q per/year
LI lifetime
Optional Information
Frequency of Routine Maintenance
Model Number
Start Date
Manufacturer
Supplier Name
Address
Phone Number
City, State, Zip
Fax Number
Notes
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Once you have a few assets documented, begin thinking about how you'll enter your assets in
CUPSS!
I st Start by entering the most important assets you have. Let's use a chlorination system (like
the previous asset example). You'll type Chlorination System into the box beside Asset Name.
2nd Where is your chlorination system located? You'll type this information in the Location
box on this form.
3rd What is the Asset Category for your chlorination system? Not sure what an Asset
Category is? Any time you're not sure what to type in the form, click the red circle with a
question mark, and help text appears to guide you along the way.
Next Go through the rest of the boxes to enter all the information you have available about
your chlorination system.
Done! Do you want to add another asset to CUPSS? If so, click the "Save and Add Another
Asset" button. If you want to wait to add more assets, click the "Save and Return Home"
button. Whatever you decide, be sure to click one of these buttons! You want to save all the
information you entered.
Wasn't starting your inventory list easy? You'll be ready for CUPSS in no time!
i H«|t»»«Jlutoku
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For specific details on "My Inventory," see
Chapter 5 of the CUPSS User's Guide.
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Step 3 - What do I do every day?
Do you often feel like saying, "I barely remember what I did yesterday, let alone two years
ago!" You are not alone! Recalling the service history of important parts of your utility is as
critical as planning how you will get things done in the future. CUPSS allows you to do both. It
is important to develop habits that make and keep record-keeping super easy.
Reminder! For help with record-keeping procedures, see Record Keeping Rules: A
Quick Reference Guide. September 2006, EPA 8I6-F-06-033.
Let's practice developing a service record to see how easy it
can be. When maintaining a service record, you must begin by
entering in all necessary information into the task list shown on
the next page. Use it over the next few days to plan and track
both routine and unexpected maintenance tasks. You can print
this form from the "My Inventory" section. Don't forget that
you'll be entering your information into CUPSS when you're
done! Pretty soon, you'll be using CUPSS without relying on
these paper versions. But for now, let's get started with
tracking the tasks you can think of right now.
Helpful Tip:
Institutional knowledge is
valuable! If you already
keep service records, it is
well worth spending time
each week entering them
into CUPSS!
Remember the bigger picture!! We understand that operating a water or
wastewater utility is a tough job that requires a lot of brain power. To get ahead
of the curve, it helps to plan. What preventive actions do you routinely take?
Write down three important tasks you complete routinely, say, every quarter.
2.
3.
Are these written down anywhere else? Is there a record of these tasks? How do you ensure
that they are completed? The next form looks very similar to CUPSS. Begin filling it out,
starting with the three tasks above.
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New Task
Staff Name
Task Name
Task Type
Monitoring a Routine Maintenance Q Repair Q Rehabilitation Q Replacement Q Other
Is this task planned? Q Yes
No
Task Details
Task Notes
Cost of the Task
For Asset-related Tasks
Asset Name
Condition
Excellent Q Good G Fair (Average) LI Poor LI Very Poor
Is the asset maintained according to manufacturer's recommendations? Q Yes Q No
For Monitoring Tasks
Chemicals
Amount
Schedule
Task Start-End Date
Completed Date
Frequency
Daily
Weekly
QMonthly
Annually
Recurs every
days
week on
(Day of week)
day of every _
(Month)
Recurrence End Date
Optional Parts Information
Manufacturer/Supplier
Parts Name
Parts Number
Parts Cost
Labor Maintenance Costs
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You can take these tasks that you've listed on the last form and enter them into your CUPSS tasks list. Just
select "Add a Task" in the "My O&M" section. Enter the Task Name and specific details about the task For an
asset-specific task, such as pressure testing your pipes, you can pick from one of the assets you've already
entered into CUPSS or you can enter a new asset. It's best to put as much information as you can into the
system because it saves it for you. Now your tasks are in your CUPSS calendar! CUPSS recommends many
preventive maintenance tasks and allows you to enter your own, all on this central calendar.
This screen allows you to schedule one-time and recurring tasks within
the O&M section, O
(*) Required Fields (*) Required If Recurrence Exists
Task
* Task Name | O
* Task Type I Select Type
I Enter Other
Task Details/Notes
Cost oF the Task |o.OO
•Staff Name | Select Staff
- Asset Information - Asset Associated Tasks Only -
Select Existing Asset Delect Existing Asset
OR | Enter Mew Asset
Asset Category | Select Asset Category
Asset Type | Select Asset Type
Enter Asset Details
Monitoring or Chemical Added
Chemical | Select Chemical
| Enter Other
30
* Recurrence End Date j Empty
* Select Recurrence
r Every fl3 <"ay(s)
"Task Start/End Date 04/15/2008 jj - 04/15/2008 jj O
~*\ & Pop-up Reminder O
Completion Date Empty
Frequency | Select Frequency
o
o
Every |l 3 week(s) on [select Day _j
' Day H 3 of every fl 3 month(s)
' The |Sele_J [Select Day _J every fl 3 month(s)
' Every |Select Month
f The |sele_| |select Day
31*
of
Optional Parts Information -
Manufacturer/Supplier | Select Manufacturer - Supplier
OR Add Mew Manufacturer / Supplier
Parts Name |
Parts Number
For specific details on "My O&M," see
Chapter 6 of the CUPSS User's Guide.
11
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Step 4 - Where is the money
going?
As you've been learning, CUPSS is intended to make your job
easier. Financial decisions are one of the most important and
most difficult aspects of managing a utility. Do you know what
you will need to spend in the next 5 years? CUPSS will help.
However, before CUPSS can give you indicators of your future
financial health, it needs some information from you.
Use the next form to summarize last year's financial statement
or this year's budget. You can use the revenue and expense
categories listed or add your own.
Helpful Tip:
Customer rates and
service related fees
should recover the full
cost of service, offset
by any grants the
system receives for
capital improvements.
12
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Finances
Year
Cash on Hand
Interest Rate
Revenue
Revenue from user rates
Revenue from grants
Revenue from loans/bonds
Transfer from reserve fund
Interest
Other Revenues (Total)
$
$
$
$
$
$
Q One-time fees $ Q Contract sales $
Q Bulk sales $ Q Product sales $
Other
Total Revenue
$
$
1 Expenses
Operating Expenses (Total)
$
Q Maintenance $ Q Equipment
Q Salaries, wages, benefits $ Q Supplies
Q Chemicals $ Q Contracts
Q Utilities $ a Monitoring & testing
Q Emergency $ Q Rent or mortgage
Q Insurance $ Q Services
Q Training Costs $ Q Billing Costs
Q Fees $ a Security
Capital Improvements
Debt Payment
Capital Reserve Contribution
Emergency Reserve Contribution
Other
Total Expenses
$
$
$
$
$
$
$
$
$
$
$
$
$
$
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Using "My Finances" keeps track of all your budgeted and actual revenues and expenses that you expect to
occur this year. It also keeps track of what your revenues and expenses were for past years. You'll even be
able to graphically display how your finances change each year by simply clicking the "Graph It" button at the
top right of this section. In addition, you'll be able to see your actual expenses and revenues in relation to
your current interest rate—without having to figure out any tough calculations. This is a simple, yet crucial,
preparation step for understanding how to recover the full cost of doing business. Coupled with several
completed asset records, you will be well on your way to harnessing the full powers of CUPSS and long-term
success of your utility.
Check Up Program for Small Systems Set-up|Switch utility|Create User|Help|Train'na iExit
My
y? Inventory
My
Finances
Check up
Beauty View Acres Subdivision - DW Finances
Print Blank Worksheet
The My Finances section allows you to enter expense and revenue information in multiple common categories.
(*) Indicates required fields
Select Previous Year Select a y H Of * Enter a new year Select a year ^J
Enter total cash-on-hand O I"
Import Data From Previous Year
and interest rate
' Type oF Cost
Budgeted Amount O Actual Amount O Inflation
|belect a type of cost
I
and Select Type of Cost (Select a type of cost
JlJ
ue Budgeted Actual Inflation Rate
Total Expenses: Q
Total Revenues: Q
Save and Add Another Year
For specific details on "My Finances," see
Chapter 7 of the CUPSS User's Guide.
14
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Step 5 - What now?
It is likely that you needed to do some searching for the
information we requested in this workbook. Maybe you
needed to ask others for help or sell your decision makers
on the process. Before you open the User's Kit, take a few
moments to list potential members of your CUPSS Team.
Most members of your team will not use CUPSS on a day-
to-day basis but will need to be kept informed of your
progress. You might not have the ultimate authority to
make decisions, especially financial ones. Anyone who
does should be a member of your team.
List names and phone numbers of three key team
members you would like to recruit. Bonus points for
already bringing them on board!
Helpful Tip:
Don't forget to include
any administrative
personnel as team
members. If you are
lucky to have these
professionals in your
water utility, you've got
a leg up on many
others!
2.
3.
For more information on creating your asset management team, see Building an Asset
Management Team Factsheet. December 2007, EPA 8I6-F-07-OI3.
To gain decision makers' interest in being a part of your asset management team, set up a
meeting to view the CUPSS and Us presentation available in the User's Kit.
For more information on asset management and CUPSS, see http://www.epa.gov/cupss
Your CUPSS User's Guide, the CUPSS Training Module, and any in-person training will
complement this workbook and provide additional tips and tricks. However, completing the five
easy steps in this workbook should give you the confidence to add CUPSS to your utility's 'best
practices.' Ready? Go!
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Glossary
Term
Annual Debt Payment
Annual Operating
Expenses
Asset
Asset Category
Asset Inventory
Asset Management
Asset Name
Asset Status
Asset Type
Associated Asset
Associated Location
Capital Improvement
(Expense)
Capital Improvement
Program (CIP) Plan
Capital Reserve
Definition
The dollar amount that must be paid each year toward
retiring existing debt.
Total annual cost of operating and maintaining the water
or wastewater utility service. This does not include
savings or future draws from capital savings accounts.
A component of a facility with an independent physical
and functional identity and age (e.g. pump, motor,
sedimentation tank, main).
Where the asset best fits within your system (e.g.,
source water, distribution or collection), for
organizational purposes.
A list of assets with details about each one (installation
date, original cost, condition, and such). Also known as
an asset register.
A process for maintaining a desired level of customer
service at the best appropriate cost.
The name of the technology or equipment that is used
for your system to properly function (for example, "5th
Street Pumping Station"). See Asset.
This is how your utilities view an asset. Assets can be
active (most assets), not in use or a future investment.
You would designate an asset a "future investment" if
you would like it added to your capital improvement
plan.
The asset's functional purpose for a specific asset
category (for example, intake structure, pumping station,
transmission main, storage tank, and the like).
Assets that are directly related to a primary asset's
function.
A location that complements an associated asset.
Funds required for the future purchase, repair and/or
alteration to or for an asset, structure, or major pieces
of equipment.
A plan that projects and assesses which projects
(including asset improvements, repairs, replacements,
and such) need to be completed in the future.
Funds set aside to fund capital improvements (i.e. future
16
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Term
Contribution
Cash on Hand
Condition
Consequence of Failure
Debt Payment
Debt Ratio
Emergency Reserve
Contribution
Expected Useful Life
Expense
Expense Ratio
Financial Assets
Growth
Inflation
Definition
purchase, repair and/or alteration to or for an asset,
structure, or major pieces of equipment).
The amount of cash that is available to the system within
a 24 hour period.
The current condition, in your opinion, of an asset based
on age and physical functionality (ranging from poor to
excellent).
The real or hypothetical results associated with the
failure of an asset.
The dollar amount that must be paid each year toward
paying down or retiring existing debt.
Debt Ratio =Total Liabilities / Total Assets
The debt ratio measures the amount of debt being used
by the organization. A ratio of 0.6 means that 60% of
operations have been financed with debt and the
remaining 40% has been financed by equity.
Funds set aside for unexpected repairs and
replacements. CUPSS recommends that utilities work
towards an emergency reserve balance of 25% of its
annual operating expenses.
The average amount of time, in years, that a system or
component is estimated to function when installed new.
Money spent by the utility to continue its ongoing
operations.
Expense Ratio = Operating Expense / Total Expense
The expense ratio measures the amount of operating
expenses compared to total expenses. A high ratio
indicates that most expenditures are for operations -
leaving the remaining balance for non-operating costs
(such as debt service, capital improvements, etc.). If the
non-operating balance is small, then the utility is not
likely to meet all of its capital-related expenses, which
may cause the system to deteriorate more rapidly.
Intangible assets such as cash and bank balances.
The amount, as a percent, a community's demand for
water or wastewater treatment has increased or
decreased. This value will be used to adjust future
revenues and expenses.
The anticipated rate of increase in the price level of
goods and services.
17
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Term
Interest Rate
Level of Service
Liabilities
Maintained According to
Factory Recommendation
Operating Expenses
Operating Ratio
Original Cost
Probability of Failure
Redundancy
Replacement Cost
Revenue
Revenue Surplus/Deficit
Risk
Definition
A rate which is charged or paid for the use of money.
Note: Do not include a percentage sign.
The characteristics of system performance such as how
much, of what nature, and how frequently, with regard to
the system's service.
The financial obligations for which the utility is
responsible.
The frequency of routine maintenance as recommended
by the manufacturer.
Total annual cost of operating and maintaining the water
or wastewater utility service. This does not include
savings or future funds withdrawal from capital savings
accounts. Operating expenses include maintenance,
equipment, salaries, wages, benefits, supplies, chemicals,
contracts, utilities, monitoring, testing, emergency, rent,
mortgage, insurance, services, training costs, billing costs,
fees, and security costs.
Operating Ratio = Operating Revenue / Operating
Expense
The operating ratio demonstrates the relationship
between operating revenues and operating expenses. A
high ratio indicates that the organization has operating
efficiency by keeping expenses low relative to revenue.
The amount paid for the initial purchase of an asset.
The chance an asset will fail based on the percent of
effective life consumed and redundancy.
Spare assets that have the ability to do the same job, if a
failure of the primary asset were to occur.
How much will it cost to replace the asset, if required
today?
Funds earned by the system through the sale of water or
by other means.
The difference between the total cost of doing business
and the funds received from fees, loans and grants, and
interest earned from any accounts. If the result is zero
or greater, the utility is taking in enough money to fully
recover its costs and have a surplus. If the result is less
than zero, the utility will not cover all costs and
therefore will have a deficit.
The potential for realization of unwanted adverse
consequences or events.
18
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Term
Routine Maintenance Cost
Sales Ratio
Savings Withdrawal
Total Annual Cost of
Doing Business
Definition
How much does it cost for a single routine maintenance
activity to be performed on the asset?
Sales Ratio = Sales / Total Revenue
The sales ratio measures the percentage of total revenue
that is made up of sales from operations. A low ratio
indicates that the organization is overly reliant on
outside funding.
A fixed amount of money removed from the savings
account of the utility to help pay for capital
improvement items or other planned or unplanned
maintenance.
The total annual operating expenses plus the required
total annual reserve contributions to reserve funds.
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