Southwest Environmental Finance Center

A. Does the organization maintain reserve funds/accounts?
(Click on the answer that most accurately describes your situation.)

0
1	The organization maintains one reserve account but it is not adequately funded. (1 point)
2	The organization maintains one reserve account and it is adequately funded for the purpose for which it was established. (2 points)
3	The organization maintains 2 reserve accounts (or a reserve account that satisfies 2 needs) and the reserve accounts are adequately funded. (3 points)
4	The organization maintains 3 reserve accounts (or a reserve account that satisfies 3 needs) and the reserve accounts are adequately funded. (4 points)
5	The organization maintains reserve accounts for: repairs and replacement, emergencies, debt repayment, and capital improvements. All accounts are adequately funded and monies are used from the funds as required. (5 points)

B. Does the organization have a plan to fund capital improvements for the long term?
(Click on the answer that most accurately describes your situation.)

0	The organization has no plan to fund capital improvements over the long term. (0 points)
1	The organization recognizes the need for a plan to fund long term capital improvements, but has not yet begun to work on it. (1 point)
2	The organization is working on a plan to fund long term capital improvements, but it is not complete. (2 points)
3	The organization has a plan that considers funding needed for capital improvements over the next 5 to 9 years. The plan includes all sources of funding necessary. (3 points)
4	The organization has a plan that considers funding needed for capital improvements over the next 10 to 19 years. The plan includes all sources of funding necessary. (4 points)
5	The organization has a plan that considers funding needed for capital improvements over 20 years or more. The plan includes all sources of funding necessary. (5 points)

C. Does the organization target its rates and other revenue streams to adequately fund all long term costs, including both operations and maintenance (O&M) and capital investment/capital debt needs?
(Click on the answer that most accurately describes your situation.)

0	The organization’s rates and other revenue streams are not set based onanticipated expenses. (0 points)
1	The organization’s rate structure and other revenue streams are set to cover ongoing operation and maintenance expenses, but do not take other expenses into account. (1 point)
2	The organization’s rate structure and other revenue streams are set to cover ongoing operation and maintenance expenses, as well as some extra revenue that is used for reserves and/or capital projects. The extent of revenue that is above O&M expenses is not tied to specific goals for funding reserves or capital projects. (2 points)
3	The organization’s rate structure and other revenue streams are set to cover ongoing operation and maintenance expenses, as well as a targeted amount above that for funding reserves or capital projects. The target is not based on an assessment of long term asset investment needs. (3 points)
4	The organization’s rate structure and other revenue streams are set to cover ongoing operation and maintenance expenses, as well as a targeted amount above that for funding reserves or capital projects. The target is based on an assessment of asset investment needs for the next 5 years or less. (4 points)
5	The organization’s rate structure and other revenue streams are set to cover ongoing operation and maintenance expenses, as well as a targeted amount above that for funding reserves or capital projects. The target is based on an assessment of assetinvestment needs longer than the next 5 years. (5 points)

D. Is investment in assets prioritized based on overall business risk?
(Click on the answer that most accurately describes your situation.)

0	Investments in assets are not based on overall business risk. (0 points)
1	The organization recognizes the need to make asset investments based on overall business risk, but has not yet begun to develop a process to implement this process. (1 point)
2	The organization is developing a process to make asset investments based on overall business risk. (2 points)
3	Some asset investments are prioritized based on the overall business risk to the organization. (3 points)
4	The majority of asset investments are prioritized based on the overall business risk to the organization. (4 points)
5	All asset investments are prioritized based on the overall business risk to the organization. (5 points)

E. Does the organization provide a program for disadvantaged customers so that adequate rates are possible?
(Click on the answer that most accurately describes your situation.)

0	The organization does not provide any programs for disadvantaged customers. (0 points)
1	The organization is conducting an analysis to determine the need for a disadvantaged customer program. (1 point)
2	The organization has completed an analysis of the need for a disadvantaged program but has not developed the program. (2 points)
3	The organization is in the process of developing a program for disadvantaged customers. (3 points)
4	The organization has a program to provide for disadvantaged customers, but it has not yet been communicated to the customers. (4 points)
5	The organization has a program to provide for disadvantaged customers, customers are fully aware of the program, and the organization provides outreach to help customers take advantage of the program. (5 points)

0	Your Score For This Section
0	Your Cumulative Score