Water Infrastructure Upgrades: Where Will The Money Come From?
By Sara Jerome,
@sarmje
As U.S. cities face huge costs for water infrastructure upgrades, it remains unclear where the money will come from to adequately address the problem.
"Assuming every pipe would need to be replaced, the cost over the coming decades could reach more than $1 trillion," the American Society of Civil Engineers reported, citing the American Water Works Association (AWWA).
Some cities are scrounging for the cash themselves, marking more money for infrastructure in their budgets.
That's the approach Rockford, IL, is trying. Some of the water lines that run under the city are 75 to 133 years old, according to MyStateline.com.
"Because of the additional need for service, an increase will be needed for the water main repair budget for the next fiscal year," the report said.
Tim Holdeman, water superintendent for the city, explained how this will work.
"Our 2015 budget will be about 1 percent higher than what it was in 2014," Holdeman said in the report. "That will accommodate some of the increase in cost and piping increase in contractor cost, and an increase in salaries."
Nearby Forest City is facing similar challenges.
"Freeport officials estimate they will need $5 to $6 million dollars to work on improvements for water and sewer services over the next two years," the report said.
The city is focusing on loans as a way to find the cash.
"The mayor has assisted us with IEPA for the State of Illinois low interest revolving loan funds, and obviously some grant assistance money like energy grants,” said Tom Glendemning, director of utility operations for Freeport’s Water & Sewer Commission, in the report.
Forest City and Rockford water experts agree that the scope of the problem is large. "Officials from both cities say it's going to take a lot more money to completely fix the degenerating infrastructure," the report said.
"We have just finished almost $20 million dollars of work over the last three years under [the IEPA] program, and we are basically going back to that program for further assistance," Glendemning said in the report.
Karla Olson Teasley, president of Illinois American Water, emphasized the need for infrastructure investment in a recent SaukValley.com editorial.
Teasley noted that Illinois American Water invests more than $60 million a year for infrastructure upgrades, including water pipe replacements and treatment plant improvements.
"But not all systems have done so, and even those that have tried often get pushed back from elected leaders, customers, and others who simply don’t want to pay more for water service," she wrote.
"It’s understandable no one wants to see costs for anything go up. But the facts are that if we, as a nation, want to continue enjoying the benefit of quality water systems to support our communities, we must find new ways to make the necessary investments now," she wrote.
The infrastructure problem exists across Illinois.
"Illinois has reported $15 billion in drinking water infrastructure needs over the next 20 years," according to American Society of Civil Engineers. "Illinois has reported $17.5 billion in wastewater infrastructure needs over the next 20 years."
For more policy news, check out Water Online's Regulations & Legislation Solution Center.
Image credit: "Possibly turning off the water main north of 21st and using suction to prevent further flooding.," Connie Ma © 2011, used under an Attribution-ShareAlike 2.0 Generic license: https://creativecommons.org/licenses/by-sa/2.0/
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