Browsing by Author "Warren, Simon"

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    Addressing Financial Sustainability of Drinking Water Systems with Declining Populations: Lessons from Pennsylvania
    (2020-10-01) Bash, Rachel; Grimshaw, Walker; Horan, Kat; Stanmyer, Ruby; Warren, Simon; Patterson, Lauren
    Many cities across the United States have declined in population over recent decades, creating numerous challenges to providing safe drinking water to their residents. Such “shrinking cities” are particularly prevalent in the Northeast and upper Midwest, (i.e., the “Rust Belt”) where globalization of the economy, particularly manufacturing, has shifted employment opportunities away from these once vital centers of the American economy. Drinking water systems serving cities with declining populations face the challenge of maintaining adequate service on smaller revenues. Fewer, poorer residents are left to pay for repairing and rebuilding infrastructure that was designed to support larger populations and commercial industries. As this infrastructure ages, increases in water rates to finance the necessary maintenance of these outsized systems may become unaffordable for many customers. Proper upkeep of a city’s water infrastructure is critical to public health yet requires considerable funding that can be difficult to secure. The compounding nature of these challenges can lead to unsustainable and unaffordable water systems. This report focuses on the challenges facing water utilities in areas where population has declined in the Commonwealth of Pennsylvania. A total of 16 water systems were broadly analyzed, with in-depth analyses of four municipal water systems in the cities of Altoona, Chester, Johnstown, and Reading. These four cases highlight some of the overall trends and complications faced by shrinking cities. Challenges to the utilities are explored and each system is quantified based on a set of financial indicators, credit rating assessments, rates and affordability metrics, borrowing behavior, and drinking water violations to fully capture current performance. An analysis of the incentives and impediments of current policies and agencies in place to assist water utilities in the financing of their endeavors is also included, as well as recommended policy modifications to better address water system challenges.
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    Financial Analysis of Drinking Water Systems in Shrinking Cities
    (2020-04-24) Bash, Rachel; Grimshaw, Walker; Horan, Kathleen; Stanmyer, Ruby; Warren, Simon
    Cities around the country have declined in population over recent decades, creating numerous challenges in providing safe drinking water to their residents. In shrinking cities, fewer, poorer residents are left to pay for expensive infrastructure maintenance and upgrades. In this project, shrinking cities in Pennsylvania were used as case studies for declining cities across the nation. Traditional financial metrics show the financial health of struggling cities’ water utilities is stronger than expected. However, cities must make tradeoffs between strong financial health and their ability to maintain infrastructure and ensure affordable water bills. Pennsylvania’s state revolving fund could be better utilized to finance capital improvement projects at low interest rates, or even as grants to struggling cities. Cities and state agencies should work together to better use the financial and governance tools at their disposal to decrease the financial burden on shrinking cities while protecting public health and ensuring reliable access to safe drinking water.
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    Uncommitted State Revolving Funds
    (2022-03-21) Hansen, Katy; Sawhney, Govind; Warren, Simon; Doyle, Martin
    States and the federal government invest in water, wastewater, and stormwater infrastructure by providing subsidized loans and other financial assistance through State Revolving Fund (SRF) programs. The funds are capitalized with federal grants, state contributions, leveraged bonds, and loan repayments. Because the programs largely provide loans rather than grants, the repayment of principal and interest replenishes the pool of capital to finance infrastructure over time. Loan repayments are now the largest source of capital for SRFs. The amount of assistance available through the SRFs will increase substantially as state programs receive $55 billion in new funds through the bipartisan infrastructure law over the next five years. The increase in available funding—from both federal appropriations and loan repayments—makes it more important than ever for states to efficiently commit funds to finance projects. Uncommitted funds represent missed opportunities to improve public health and water quality, spur economic development, and create jobs through infrastructure investment. As federal funds flow to states faster, it is imperative to understand how states can efficiently allocate funds to reach their full potential. The authors of this report analyzed data from the EPA, interviewed stakeholders, and conducted a survey of over 200 water system decision makers and 30 state SRF administrators to better understand what is driving uncommitted SRF funds. The report offers three main recommendations to help states allocate funds, described fully in the report: - Set and track goals for the allocation of funds. - Stimulate demand for funds. - Enhance effective administrative practices.