ABSTRACT
The last seven chapters of this book, which constitute Section One, defined many of the terms which need to be understood in order to be able to fathom various financing programs available to water and wastewater systems. In addition, the two most important tools used to analyze capital project funding were also presented. These are: the methods of comparing costs, and the methods for converting onetime dollar costs or annual dollar costs to rates, and vice versa. Finally, the two most common methods of comparing different financing programs - the annual cost method and the total cost method - were also presented. In short, Section One is designed to give the reader the tools he needs to understand how various categories of project cost can impact the rates of his water or wastewater system.
