In a new report, the U.S. Conference of Mayors documents the growing challenge of water affordability for low income households and communities and calls for “a fresh look at local affordability and national water policy.” Growth in Local Government Spending on Public Water and Wastewater—But How Much Progress Can American Households Afford? finds the dual impact of increasing annual local government expenditures with declining revenues, along with substantial growth in long term debt, signals the potential for financial distress and local limits on public infrastructure financing.
Local government investment in public water and wastewater infrastructure and services reached a record high in 2010 at $111.4 billion, compared to $7 billion in 1972 when the Clean Water Act was passed. Public spending on water and wastewater over the decade from 2001 to 2010 was $864 billion. Spending on water at the local level continues to grow at a faster rate than several national economic indicators.