A new report by the U.S. Government Accountability Office (GAO), “WATER INFRASTRUCTURE: Information on Selected Midsize and Large Cities with Declining Populations” provides a snapshot of the challenges faced by water and wastewater utilities as revenues decline in the face of infrastructure improvement needs. Through case studies of water and wastewater utilities – including several AMWA members – the GAO highlights the struggles faced in maintaining sufficient revenue with a shrinking rate base coupled with declining per-capita water use. Produced for the Ranking Member, Subcommittee on Environment and the Economy, Committee on Energy and Commerce, House of Representatives, the report is expected to inform Congressional discussions related to infrastructure funding and affordability in upcoming legislative sessions.
The report examines how insufficient utility resources are linked to inadequate maintenance, upkeep and replacement of critical infrastructure, which can lead to increased public and environmental health risks. Impacts on rate affordability and related assistance programs are also reviewed as well as the strategies employed by some utilities to offset revenue losses and control costs in a declining population environment.