Autonomy Is Key to Revitalizing Water Utilities

Allentown, Pa.; Bayonne, N.J.; Flint, Mich.; Newark, and Jackson, Miss., are a few of the communities that have had serious water issues involving an underfunded utility in need critical intervention. That intervention came, it arrived variety forms. In Allentown public–public arrangement with independent authority, Lehigh County Authority, turned things around. Bayonne public–private partnership sparked recovery. Jackson required massive infusions public dollars outside management to address emergencies short term. these other communities, revenues been diverted municipal needs, or rates held artificially low for years because political resistance interference. The common denominator failing distressed utilities is being embedded government managed by elected officials—mayors, city councils, boards—who view rate increases as taxes thus “root canal.” Because charging more service not generally popular, leaders every incentive defer oppose until they leave office. Embedded permitted operate enterprises, so always able make financial decisions based on health business infrastructure needs. This has meant many American adequately invested infrastructure. AWWA's 2012 report, Buried No Longer, estimated investment gap needs at trillion dollars. US Environmental Protection Agency estimates cost be just under half case failure—local government, primarily. Recently, I spoke manager capital midwestern state who told me increase 11 years. At 2%, 3%, 4% annual inflation rates, hole gets deep very fast. When asked why, he responded, “The mayor does support increases.” Politically depressed revenue stifle planning development. Meanwhile, continues slowly degrade. Seth Siegel, his critique drinking sector, Troubled Water: What's Wrong With What We Drink, argued “keep mayors away from water.” Siegel explained “to improve decision-making, counterproductive connection between decoupled.” Political mismanagement neglect may unified field theory failure, deserves research. Indeed, 2019 study AWWA Water Science Jennifer Biddle Karen Baehler found “autonomy matters” (https://doi.org/10.1002/aws2.1140). quantitative focused 22 managers across country. researchers there was overarching sentiment performance improved insulation interference, organizational autonomy possess greater decision-making power flexibility spending. Removed direct control influence, focus intently delivery. According one mid-Atlantic participant study, very, reluctant spend money replacement, renewal upgrades, you name it. They didn't want raise rate.” There alternative models governance. Louisville separate corporation owned city, which preserves independence pays dividends municipality. addition Authority mentioned earlier, Denver fine part authority city. Washington, D.C., (DC Water) immensely since becoming authority. Massachusetts General Law (Part I, Title VII, 40N, Section 1) provides adoption towns subdivision sewer systems modeled after Boston's Enabling Act 1977. Another model consider investor-owned regulated commission. points out, “De-linking mayoral politics, though, lead unaccountability.” Local officials can appoint board members commissioners authorities, ideally fixed terms, ensuring provide effective assets entrusted them. Not all fail, but most failed government. Autonomous governance key revitalization sector. Author's note: views expressed herein entirely author's those AWWA. G. Tracy Mehan III executive director affairs office; [email protected].