9. Financial Management Objectives

Following completion of Chapter 9, students should be able to:

  1. Identify a manager's responsibilities regarding the financial management of a utility.
  2. Summarize the key considerations and principles of financial understanding as listed in Section 9.1.
  3. Name the two major sources of local revenue used to subsidize the costs of governmental services to the private sector.
  4. Calculate their utility's operating ratio and coverage ratio as tools to measuring its financial stability.
  5. Discuss the major considerations in the budgeting process, including politics, goals, cycles, and budget components.
  6. Prepare financially for the repair/replacement of capital equipment.
  7. Describe the role of capital budgeting in the financial planning of a utility.
  8. Understand the different types of financial assistance available to utility managers.
  9. Work with their specialized product and service providers to the mutual benefit of all.
  10. Keep tabs on the financial outlook of their utility by closely monitoring income and expenditures.
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