Local Government Law PLLC

Daniel McClure
May 17, 2024
3 min read

Properly Appreciating (& Valuing) Essential Public Services

Valuing Public Works Systems

Managing Public Water and Sewer Systems: Key Strategies for Local Government Officials

For the mast majority of americans, they only time they think about water and sewer systems is when the faucet stops running or the toilet wont flush! Local officials however, are well aware of the time, energy, and planning that goes into maintaining a well equipped and functioning public works system. Over the past decade, numerous communities have neglected to adjust utility rates to match the rising costs of maintaining public water and sewer systems. This oversight has led to severe funding shortfalls, leaving many communities without the necessary reserves to sustain and repair their infrastructure. Consequently, these communities face the daunting task of passing significant bonds and imposing substantial rate hikes all at once, instead of gradually building reserves and addressing issues over time. Additionally, substantial lawsuits over sewer backups further deplete resources needed for essential maintenance and upgrades. To address these challenges, local government officials managing public water and sewer systems should focus on three key strategies:

  1. Conduct a Rate Study to Ensure Adequate FundingA critical first step is to conduct a comprehensive rate study. This study should evaluate whether the current rates charged to consumers are sufficient to cover the operational and maintenance costs of the water and sewer system. By thoroughly analyzing expenses and projecting future costs, communities can establish rates that ensure sustainable funding. Regularly updating these studies helps to keep rates aligned with actual costs and avoid sudden, drastic increases that burden residents and businesses. There are several resources out there for this function and I am happy to guide you through that process. However, do NOT fall into the trap of setting your rates similar to what neighboring communities set theirs at just to be “similar”. This disregards the uniqueness and individualized needs of YOUR system.
  2. Avoid Overextending the SystemIt’s essential to understand the maximum capacity of your water and sewer systems and to avoid extending services beyond what the infrastructure can handle. Overextension can lead to system failures, increased maintenance costs, and diminished service quality. By keeping expansions within manageable limits and ensuring that any new developments are supported by the necessary infrastructure upgrades, communities can maintain reliable service and prevent costly breakdowns. If you do not know the capacity your systems are currently running at, you should check with your public works team to find out.
  3. Implement Best Practices to Prevent Sewer BackupsEstablishing and adhering to best practices for system maintenance is crucial in minimizing the risk of sewer backups. Regular inspections, timely repairs, and proactive system management can significantly reduce the incidence of backups, which often result in expensive litigation and settlements. By investing in preventive measures and staying ahead of potential issues, communities can protect their financial resources and ensure consistent service quality.

Conclusion

Properly managing public water and sewer systems is a complex but essential task for local government officials. By conducting regular rate studies, avoiding overextension of systems, and implementing best practices to prevent sewer backups, communities can create sustainable and resilient infrastructure. These strategies not only protect the financial health of the utility but also ensure reliable service for residents and businesses.

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