Current Views
Penn State has created a fascinating film titled “Liquid Assets: The Story of Our Water Infrastructure.” This acclaimed documentary highlights serious difficulties communities face due to aging or insufficient assets. These include disruption of services, heavy financial burdens for our citizens, property damage, or even loss of life. In our currently troubled economy the need to financially plan for the long-term financial sustainability of our assets is even greater.
For communities with capital facilities that are 50 years or older there could be a real need for infrastructure planning to “catch up.” If your assets are much newer then it is easier to start planning now well in advance of the problems and “keep up” with infrastructure needs. This issue impacts all communities, whether they have their own water and sewer system or contract for services. The wholesalers’ decisions in addressing these issues will absolutely impact the retail customers.
Unfortunately, users have generally been insulated from the true costs of water by paying only operating costs and mandatory financing payments. The provider must seriously communicate to customers about the future costs of the utilities considering rehabilitation and replacement, financing needs, and increasing regulation. This may take enormous courage on the part of the local government to face these issues with constituents; however, the ability to act proactively ends once a crisis develops.
For communities with capital facilities that are 50 years or older there could be a real need for infrastructure planning to “catch up.” If your assets are much newer then it is easier to start planning now well in advance of the problems and “keep up” with infrastructure needs. This issue impacts all communities, whether they have their own water and sewer system or contract for services. The wholesalers’ decisions in addressing these issues will absolutely impact the retail customers.
Unfortunately, users have generally been insulated from the true costs of water by paying only operating costs and mandatory financing payments. The provider must seriously communicate to customers about the future costs of the utilities considering rehabilitation and replacement, financing needs, and increasing regulation. This may take enormous courage on the part of the local government to face these issues with constituents; however, the ability to act proactively ends once a crisis develops.
“Liquid Assets” is a film all public officials should see to understand the challenges facing near-invisible infrastructure. If you would be interested in showing a 15 minute summary of the film to your Council or Board, please call us and we can give you further details and set a time to present. The professionals at Lewis Young Robertson & Burningham, Inc. are happy to talk to the members of your communities about rates and financing options to ensure your facilities receive vital repair and replacement funds. After viewing this film you will better understand the serious challenges in keeping roadways and water, sewer, and storm systems in good working order.
Please call Matt Millis or Marc Edminster at 801-596-0700.
Please call Matt Millis or Marc Edminster at 801-596-0700.
Best regards,
Matt Millis
Vice President
Lewis Young Robertson & Burningham, Inc.
Matt Millis is a Vice Principal in LYRB’s Salt Lake City office and is a primary Consultant in the firm’s consulting practice.