Helping communities manage their water finances : a manual for extension personnel working in rural or peri-urban communities

The concepts and the training approach presented here may also be relevant to peri-urban contexts, (i.e., marginal neighborhoods on the periphery of large cities). In rural settings, the capital investment in water systems is usually provided by a governmental unit or an NGO. The degree to which communities are required to share the costs varies greatly from place to place. Those costs which communities are requested to carry are sometimes covered through tariffs or special charges. Where the manual is applied to peri-urban settings, its use must be carefully monitored. Technologies used in peri-urban areas are more complex those used in rural communities because of poor land or difficult terrain on which housing is built -- financing these complex technologies often requires substantial inputs from municipal water utilities. This manual was developed to help extension agents carry out their jobs as advisors, troubleshooters, and on-the-job trainers to treasurers and water committees in both rural or urban communities. To help communities make financial decisions, the manual outlines information to be collected and provides a process to help communities assess whether or not they can afford to own and maintain improved water supplies. Guidance is given for establishing household rates, for appointing an individual who will keep the money, and for collecting and accounting for funds. In most cases, the extension agent will work with the committee treasurer, although frequently the committee president will also be involved. The manual also outlines the processes by which water committee treasurers can perform their tasks. The steps for creating budgets include defining the anticipated expenses; breaking down expenses into categories and monthly outflow; defining the anticipated income; breaking down income into categories and monthly inflow; and raising funds as necessary through community activities. To strengthen the capabilities of extension staff or promoters, the manual includes exercises for practicing the newly acquired skills. Sample budget worksheets and sample ledger worksheets are provided in addition to a glossary of financial terms. (Author abstract, modified)