AWWA ACE94001

The Financial Manual for Small Water Utilities which is being implemented in Washington State is written in layman's terms and addresses the fundamentals of budget development, revenue and expense reporting, and the evaluation of rates. It will assist small systems in evaluating the impacts and meeting the requirements of the SDWA and other state or local regulations. The Financial Viability Test (FVT) can be a self-education tool for small system managers and owners. The FVT is simple, straightforward, and identifies the true costs of operating a utility through the preparation of operating and capital budgets. In addition, the FVT aids the utility in determining revenue requirements for both known and unanticipated needs. The FVT is one of many components of a comprehensive strategy utilized in the State of Washington to promote the improved viability and reliability of small water systems.