Real Estate

Are Water Rate Increases Inevitable?

Jason Mumm — Sat, 13 Mar 2010 17:03:15 +0000

When serving as Mayor of Philadelphia, Pennsylvania Governor Ed Rendell was surprised by a sudden need to replace a number of water supply pipes. Following a prolonged cold period, the Philadelphia temperature suddenly warmed to over 50 degrees, causing 58 water pipes to burst throughout the city. Rendell recalls that the city’s water management team reported back that many of the pipes were installed in the 19th century and were not buried deep enough to avoid the stress caused by the rapid change in temperatures.

Although few utilities currently use equipment brought into service during the 1800s, managing aging infrastructure is an ever present challenge for most water providers. Most utilities grew up along with their communities, providing increased services to meet the need of a growing consumer population. Building new facilities to meet increasing need only made sense and new customers meant additional revenue to the provider.

Aging plant and equipment eventually reach the end of their service lives however. As they approach this point, utilities that do not enjoy an expanding revenue base face serious challenges to their ability to provide service into the future. Should a significant facility or treatment plant suddenly go off-line or fail, customers would potentially face significant increases to service rates to replace it. Even when older facilities are scheduled to be removed from service, the cost of replacing the existing one could also mean major price increases to existing customers.

Bob Hebert, columnist for the New York Times in a recent opinion, seemed to call for federal intervention to replace aging facilities in an opinion piece from February 15, 2010. “”Ignoring these problems imperils public safety, diminishes our economic competitiveness, is penny-wise and pound-foolish, and results in tremendous missed opportunities to create new jobs on a vast scale.” Hebert seems to believe that the federal treasury should use the ‘jobs’ argument as justification for providing this funding. In the end, this probably only generates a false impression that Washington will be riding to the rescue of small utilities and water providers.

Squeezing every possible day of service out of existing facilities is good management. But providing continued service with old facilities is begging for trouble. At some point, water and sewer service providers will have to confront the very real possibility that they will have to replace expensive plant and facilities by themselves. Handling these costs – some of which could be enormous – has many managers losing sleep.

The best way to handle this problem according to Hebert, is to look for help from the national treasury. Budget hawks are sure to resist. With the current deficit and budget crises, resolving this conflict won’t be easy and could certainly be expensive. Communities and water utilities – like Rendell’s Philadelphia water department – will still have to come up with a way to pay for repair and replacement costs. Washington may not have the ability to help.

The American water utility industry is made up mostly of small providers serving fewer than 3,300 customers. These utilities must confront the high cost of infrastructure repair and replacement without outside help. And spreading a multi-million dollar cost for replacing a water treatment plant among only a few thousand customers can add a great deal to each customer’s service rates.

The Times Hebert recognizes that a failure to replace important infrastructure has far reaching negative consequences. Finding the dollars to do the job is – as it always is – the main problem. Water providers need to plan sooner rather than later for the unavoidable need to replace expensive equipment and facilities – or wait for the next set of pipes to burst and figure out how to pay for it then.

Specializing in Water Utility Consulting, author Jason Mumm is a respected economic advisor to water and wastewater service providers nationwide. His organization, StepWise Water Utility Consultants, assist utilities improve operations, improve cash flow management as well as manage customer fees in a difficult economic situation.

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Technorati Tags: Cities, Conservation, family, Real Estate, Water, Water Rates, Water Utilities

Home Insurance Equals Lifestyle Insurance

John Harper — Sat, 13 Mar 2010 16:53:13 +0000

Your home says a lot about you – your family, your interests, your wealth, your values – all reflected in the place you choose to live. So, by buying Home Insurance, you’re buying lifestyle insurance, guaranteeing that even if the worst happens, you’ll be able to rebuild your home and your life.

Purchasing home insurance is probably one of the most important decisions you’ll ever make. Hopefully, you’ll never need it, but making the right home insurance decision now can prevent an unfortunate incident like a fire, flood or other loss from becoming a disaster for you and your family.

A standard home insurance policy covers the structure of your home and your personal belongings, as well as providing liability protection and compensation for living expenses if you are temporarily unable to live in your home because of a fire or other covered claim.

When buying a Home Insurance Policy, don’t be afraid to ask your insurer questions about what the policy covers and what is excluded from coverage. Many a homeowner has filed a claim thinking a loss was covered, only to find out the fire, water damage or mold they reported was excluded by their home insurance policy.

The most common exclusion to home insurance policies are floods and earthquakes, so if you live in an area prone to these events, make sure you have coverage for them. Other common exclusions to home insurance policies are neglect, intentional loss, earth movement and general power failure. Lawsuits between home insurers and insured regarding exclusions related to mold have become common in recent years as research has revealed that a number of deadly illnesses can be caused by mold in the home.

Nail down exactly what the policy covers to make sure you’re getting what you think you’re paying for.

Also, before you purchase a home insurance policy, make sure you know how much your house is worth, and its replacement cost. You’ll need to purchase coverage that matches this amount.

Be sure to ask about home insurance discounts. Many insurers offer discounts to reward behavior that reduces risk. Homeowners pay an estimated extra $300 million per year for home insurance, just because they neglect to ask about discounts.

Remember to research your insurer before buying a home insurance policy. Does your insurer have a good service record? Does your insurer offer the lowest price for the best home insurance value? Asking this question now can save you money and aggravation.

Also, keep documentation of all the valuable personal possessions in your home. Most home insurance policies provide coverage for personal possessions, so keeping track of them will keep you from getting hosed in the event of a loss.

Your home is your greatest investment and something more – the most direct reflection of your life. Protect it by buying the correct Home Insurance Policy.

Want to find out more about home insurance claims, then visit our site on how to choose the best compare homeowners insurance for your needs.

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Advantages In Joining A Toronto MLS Real Estate Listing

Jameson Lee — Sat, 13 Mar 2010 16:33:40 +0000

When you choose to sell your home on your own, you want all the help you can get. Though you can save thousands by skipping the commissions of a realtor, you put yourself at a marketing disadvantage. That is why you need to get your property listed on the multiple listing service (MLS) for realtors. There are many advantages in joining a MLS real estate listing. A look at them will show you that paying a flat fee to get a “for sale by owner” listing on MLS is well worth the money and effort.

The first of many advantages in joining a MLS real estate listing is that it is the key to sales success. Did you know that about four of every five home buyers get to the property they want through the MLS? By being listed on MLS, you will have most every real estate sales person in the region working for you. Most flat fee MLS listing services will keep you on for as long as 6 months, but in most cases you wont need that long with exposure to so many realtors, brokers, and customers.

The second of the advantages of joining a MLS real estate listing is that you are saving as much as 2% to 3% on your sale. Though that does not sound like a lot, it is actually $2000 per thousand you sell meaning you could end up saving as much as $20,000 or $30,000 on the sale if you skip the realtor and pay the flat fee to list on MLS.

Thirdly, one of the advantages in joining a MLS real estate listing is that you will be seen. If you are selling as a for sale by owner, then you have to hope someone “accidentally” drives by your home or sees it in the newspaper by chance. Also, even if a realtor drives by, they will likely not show a home that is not MLS listed. If you are on MLS, though, you will come up in searches and have your house shown with much more frequency. It works much better when luck is taken out of the equation.

Lastly, it’s just good sales and business sense to have your property listed on a MLS. Selling your property in an instant for the price you set will no longer be impossible for a MLS. Considering that the internet is the second best when it comes to value and power versus the property’s reasonable cost, MLS listing will give you the visibility you need.

All of these mentioned vital points of joining MLS real estate listing services will shower your house a better mark up. No more hopes for accidental drive by of a realtor. Save your money with this listing services option. Be enlightened by the view of MLS giving you thousands of links with realtors who may possibly end up working with you and play their vital roles for your property. So the next time you plan to sell your house, don’t exclude the option for a flat fee or a free MLS real estate listing service, and let it do the marketing for your property. Put an end for the long wait before it can be sold and even get the price you want. Join a MLS real estate listing service to give your property a remarkable back up.

Who else wants Toronto power of sale and foreclosure home?. Stop by Jameson Lee’s site where you can find out all about Toronto’s real estate market and what it can do for you.

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