Building the Financial Capacity to Run a 21st Century Water Utility
We’re joined by David Norris, Deputy General Manager of Colorado’s Eagle River Water & Sanitation District, for a conversation about turning operational savings into stronger utility services. His approach starts with examining everyday processes, bringing employees into the changes, and putting the savings where they are needed most. David came to the district in 2020 after working in statewide public health finance. His background also includes manufacturing, where lean practices and process improvement shaped his approach to management. At Eagle River, those experiences help connect financial decisions with the district’s responsibility to protect public health. The district serves Vail, Avon, and surrounding communities. About 10,000 customers support a system covering roughly 50 square miles, with more than 200 miles of infrastructure. Mountain terrain adds pumping costs and makes construction and supplies more expensive. Annual operating and capital budgets are approximately $75 million each. The district’s capital plan exceeds $2 billion over 10 years. David says process improvements, automation, and AI have generated approximately $1.5 million in savings. Moving vendor payments toward ACH produced more than $300,000 in ongoing savings. Reviewing outside contracts and bringing selected work inside the organization generated more than half a million dollars in additional savings. Other improvements address collections, invoice processing, purchasing cards, and financial reserves. Those savings support what David calls “reduce to add.” During one budget cycle, approximately $1 million in savings allowed the district to add six full time positions without increasing its budget. More than $150,000 in ongoing savings remained. The positions supported needs across operations, employee housing, and IT. Resources went where they could best support the organization’s priorities. Financial resilience also required changes to customer billing. The district identified a structure that effectively gave larger homes cheaper water. It redesigned the system and communicated the changes through community outreach. A capital replacement charge now provides a clearer funding source for infrastructure. David says rates have roughly doubled during his tenure, with another doubling anticipated over the next decade. Building reserves and paying cash for more projects can help limit borrowing costs. Major investments include upgrades to three wastewater plants, a planned reservoir, storage tanks, and underground pipes. AI offers opportunities to identify leaks and reduce administrative work. David sees it as a tool that helps employees apply their judgment and skills more effectively. Human oversight remains essential. Lasting improvement depends on how leaders introduce change. David starts by explaining why a change is needed, involving affected employees, and addressing concerns about their roles. Internal change agents help carry that work throughout the organization. His advice to other utility leaders is straightforward: start small, walk through a process, and understand how the business actually works. Small wins can build into meaningful results. More: Eagle River Water & Sanitation District: https://www.erwsd.org/ (00:00) Intro (01:14) From Public Health Finance to Water Utility Leadership (03:45) Serving a Mountain Community (05:16) Aging Infrastructure and Financial Pressures (06:56) A $2 Billion Capital Plan (08:16) Creating a Culture of Savings (11:11) Payments, Collections, Contracts, and Reserves (14:31) “Reduce to Add”: Funding Six New Positions (16:34) Technology Spending and Capital Priorities (18:12) Measuring Cybersecurity Investment (19:25) Redesigning Rates for Financial Resilience (22:08) Plants, Reservoirs, Tanks, and Pipes (26:05) Making Organizational Change Stick Aquasight Website: https://aquasight.io/




