The Hachita Mutual Domestic Water Consumer Association serves roughly 41 households and less than 80 people in an unincorporated community in Hachita, New Mexico. For years, the association had been operating with minimal financial reserves. Hachita learned about the EFCN at a rate setting and fiscal planning workshop in Las Cruces, New Mexico. Discussions about capital planning, rate design, financial condition assessments, and funding opportunities helped Hachita think about new ways to manage the water system. 

 

In the winter of 2014, Hachita requested direct assistance with EFCN staff in order to set new financial rates. Using the EFCN's Water and Sewer Rates Analysis model, EFCN staff analyzed Hachita's existing rate structure, calculated new rates, and designed a strategy to begin building the system's reserve funds. Hachita realized it needed to more than double the rates in order to cover costs, a move that would place considerable financial strain on low and fixed income customers. The EFCN worked with the system to address these equity issues, examining strategies to adjust base and volumetric charges to protect vulnerable customers while continuing to generate revenue.

 

In the end, the EFCN's direct assistance set Hachita on a path towards a more sustainable business model for its water system. System directors were trained on how to use the EFCN's tools, how to analyze financial data, and set rates effectively. As the director stated, "it was well worth the effort of working with the EFCN Network to get to this point and help us get closer to financial sustainability. (The EFCN) spent their time advising us and were concerned about our customers' ability to pay as much as the water system's need to be financially stable."