08 Editorial 0
EDITORIAL le tte r
Water & Wastes Digest
Business-to-business communications for more than 100 years
you do the math There is hardly any need to bring up U.S. Environmental Protection Agency estimates of the billions of dollars needed to repair, replace or upgrade the nation’s aging infrastructure. Add to this the need to accommodate a growing population, meet new water quality standards and—oh, why not—let’s sprinkle a little bit of water shortage and climate change issues on top, and you will end up with a pretty dire situation. For the most part, local water and wastewater utilities are supported primarily through user charges. According to a 2002 U.S. General Accounting Office report on water infrastructure funding, for more than 25% of water utilities and more than 40% of wastewater utilities, user charges and other local sources of revenue were not enough to cover the full cost of providing a service—including Neda Simeonova, editorial director operation and maintenance, debt service, depreciation and taxes. [email protected] Additionally, while revenue from user charges was adequate to cover at least operation and maintenance costs for nearly all of the utilities surveyed, approximately 29% deferred maintenance due to insufficient funding. Little has changed since these results were released back in 2002. As a result, utilities today continuously are turning to financial assistance from federal and state programs. Unfortunately, finding financial assistance for the design and construction of water and wastewater projects these days is like finding a needle in a haystack—and financing is about to get more difficult. As we prepare this month’s issue of Water & Wastes Digest for print, the U.S. government is trying to avoid the nation’s first-ever financial default by reaching a compromise to raise the national debt ceiling. In order to bandage this looming debt crisis, Congress will have to make some deep cuts to various spending programs. So whether this leads to slashing Social Security and Medicare, financial aid for college students, farm subsidies or tax increases, one thing is certain: The pool of financial assistance to fix, upgrade or build water and wastewater systems is about to get a lot smaller. Spending cuts will be especially painful to states that depend heavily on federal funding. But what are the alternatives? Are water and wastewater utilities going to stop operating? Are they going to stop delivering clean and safe water while protecting public health and the environment? The answer is most certainly not. Drinking water systems and wastewater collection and treatment are critical. Yet, the cost of water supply and sanitation services remains a bargain. In 2008, an annual survey of 51 water systems located throughout the country conducted by the NUS Consulting Group found that the average price of water in the U.S. jumped by 7.3%. And since 2003, average surveyed water prices in the U.S. have increased by almost 30%. While these percentage rates may look steep, the actual cost in dollars reveals a different angle. According to the survey, the highest price paid was in Boston at $5.76 per 1,000 gal, while consumers in Savannah, Ga., enjoyed the lowest water price at $1.09 per 1,000 gal. I choose not to make a big argument about whether or not water and sewer services are priced adequately. Instead I ask you to do the math: Can a utility cover its rehabilitation and replacement issues by charging its customers just over a half a cent per gallon; how about a cent a gallon?
E DI TOR I A L S TA F F
Editorial Director Neda Simeonova
Managing Editor Caitlin Cunningham
Associate Editor Elizabeth Lisican
Associate Editor Kate Cline
Associate Editor Leslie Streicher
• • • •
Facilit y Operations MBRs Water Recycling Sludge Treatment
• • • •
Pipe Rehab Instrumentation Plant Profile WEF TEC.11 Product Showcase
Designer Robin Hicks
adv ertisi ng & S A L E S 7150 E. Camelback, Suite 325 • Scottsdale, AZ 85251 tel: 480.941.0510 • fax: 480.423.1443 Integrated Media Consultant David Rairigh [email protected] (phone x25) Integrated Media Consultant Fred Ferris [email protected] (Arlington Heights office, 847.391.1003) Integrated Media Consultant John Rogier [email protected] (Arlington Heights office, 847.391.1053) Integrated Media Consultant Celeste Scarfi [email protected] (phone x12) Classified Sales Manager Donna Aly [email protected] (phone x13) Reprint Coordinator Adrienne Miller [email protected] (Arlington Heights office, 847.391.1036) List Rental Contact John Ganis 914.368.1024 Advertising Coordinator [email protected] (Arlington Heights office, 847.391.1049)
MA N A G E ME N T Vice President/Group Publisher Dennis Martyka [email protected] Associate Publisher Greg Tres [email protected]
VP Custom Publishing Diane Vojcanin & Creative Services
VP Events Harry Urban
VP Information Technology Joel Hughes
Director of Doug Riemer Audience Development
Director of Creative Services Sandi Stevenson & Promotions
C OR P OR AT E
Chairperson K.S. Gillette President/CEO E.S. Gillette
Sr. Vice President A. O’Neill
Sr. Vice President, CFO Dave Shreiner
Chairman Emeritus H.S. Gillette (1922-2003)
E DI TOR I A L A DV I S ORY B OA R D
Dr. YuJung Chang HDR Engineering Inc. Paul Rice Siemens Water Technologies Dawn C. Kristof Champney WWEMA
Tom Mills Severn Trent Services
Dr. Larry W. Moore University of Memphis
COMING UP NEXT MONTH...
3030 W. Salt Creek Lane, Suite 201 Arlington Heights, IL 60005-5025 847.298.6622 • F: 847.390.0408 www.wwdmag.com
Dr. Lev Nelik Pumping Machinery
Andy Richardson Greeley & Hansen LLC
Chuck Reading REACO Associates LLC
Scranton Gillette Communications’ Infrastructure Team
Water & Wastes Digest
Business-to-business communications for more than 100 years
you do the math There is hardly any need to bring up U.S. Environmental Protection Agency estimates of the billions of dollars needed to repair, replace or upgrade the nation’s aging infrastructure. Add to this the need to accommodate a growing population, meet new water quality standards and—oh, why not—let’s sprinkle a little bit of water shortage and climate change issues on top, and you will end up with a pretty dire situation. For the most part, local water and wastewater utilities are supported primarily through user charges. According to a 2002 U.S. General Accounting Office report on water infrastructure funding, for more than 25% of water utilities and more than 40% of wastewater utilities, user charges and other local sources of revenue were not enough to cover the full cost of providing a service—including Neda Simeonova, editorial director operation and maintenance, debt service, depreciation and taxes. [email protected] Additionally, while revenue from user charges was adequate to cover at least operation and maintenance costs for nearly all of the utilities surveyed, approximately 29% deferred maintenance due to insufficient funding. Little has changed since these results were released back in 2002. As a result, utilities today continuously are turning to financial assistance from federal and state programs. Unfortunately, finding financial assistance for the design and construction of water and wastewater projects these days is like finding a needle in a haystack—and financing is about to get more difficult. As we prepare this month’s issue of Water & Wastes Digest for print, the U.S. government is trying to avoid the nation’s first-ever financial default by reaching a compromise to raise the national debt ceiling. In order to bandage this looming debt crisis, Congress will have to make some deep cuts to various spending programs. So whether this leads to slashing Social Security and Medicare, financial aid for college students, farm subsidies or tax increases, one thing is certain: The pool of financial assistance to fix, upgrade or build water and wastewater systems is about to get a lot smaller. Spending cuts will be especially painful to states that depend heavily on federal funding. But what are the alternatives? Are water and wastewater utilities going to stop operating? Are they going to stop delivering clean and safe water while protecting public health and the environment? The answer is most certainly not. Drinking water systems and wastewater collection and treatment are critical. Yet, the cost of water supply and sanitation services remains a bargain. In 2008, an annual survey of 51 water systems located throughout the country conducted by the NUS Consulting Group found that the average price of water in the U.S. jumped by 7.3%. And since 2003, average surveyed water prices in the U.S. have increased by almost 30%. While these percentage rates may look steep, the actual cost in dollars reveals a different angle. According to the survey, the highest price paid was in Boston at $5.76 per 1,000 gal, while consumers in Savannah, Ga., enjoyed the lowest water price at $1.09 per 1,000 gal. I choose not to make a big argument about whether or not water and sewer services are priced adequately. Instead I ask you to do the math: Can a utility cover its rehabilitation and replacement issues by charging its customers just over a half a cent per gallon; how about a cent a gallon?
E DI TOR I A L S TA F F
Editorial Director Neda Simeonova
Managing Editor Caitlin Cunningham
Associate Editor Elizabeth Lisican
Associate Editor Kate Cline
Associate Editor Leslie Streicher
• • • •
Facilit y Operations MBRs Water Recycling Sludge Treatment
• • • •
Pipe Rehab Instrumentation Plant Profile WEF TEC.11 Product Showcase
Designer Robin Hicks
adv ertisi ng & S A L E S 7150 E. Camelback, Suite 325 • Scottsdale, AZ 85251 tel: 480.941.0510 • fax: 480.423.1443 Integrated Media Consultant David Rairigh [email protected] (phone x25) Integrated Media Consultant Fred Ferris [email protected] (Arlington Heights office, 847.391.1003) Integrated Media Consultant John Rogier [email protected] (Arlington Heights office, 847.391.1053) Integrated Media Consultant Celeste Scarfi [email protected] (phone x12) Classified Sales Manager Donna Aly [email protected] (phone x13) Reprint Coordinator Adrienne Miller [email protected] (Arlington Heights office, 847.391.1036) List Rental Contact John Ganis 914.368.1024 Advertising Coordinator [email protected] (Arlington Heights office, 847.391.1049)
MA N A G E ME N T Vice President/Group Publisher Dennis Martyka [email protected] Associate Publisher Greg Tres [email protected]
VP Custom Publishing Diane Vojcanin & Creative Services
VP Events Harry Urban
VP Information Technology Joel Hughes
Director of Doug Riemer Audience Development
Director of Creative Services Sandi Stevenson & Promotions
C OR P OR AT E
Chairperson K.S. Gillette President/CEO E.S. Gillette
Sr. Vice President A. O’Neill
Sr. Vice President, CFO Dave Shreiner
Chairman Emeritus H.S. Gillette (1922-2003)
E DI TOR I A L A DV I S ORY B OA R D
Dr. YuJung Chang HDR Engineering Inc. Paul Rice Siemens Water Technologies Dawn C. Kristof Champney WWEMA
Tom Mills Severn Trent Services
Dr. Larry W. Moore University of Memphis
COMING UP NEXT MONTH...
3030 W. Salt Creek Lane, Suite 201 Arlington Heights, IL 60005-5025 847.298.6622 • F: 847.390.0408 www.wwdmag.com
Dr. Lev Nelik Pumping Machinery
Andy Richardson Greeley & Hansen LLC
Chuck Reading REACO Associates LLC
Scranton Gillette Communications’ Infrastructure Team
