GAO report examines water infrastructure needs in cities with declining populations
A recent U.S. Government Accountability Office (GAO) report showed that water and sewer utilities will need to spend $655 billion during the next 20 years in order to provide adequate water infrastructure to meet the needs of cities that have faced declining populations in recent years.
For midsize and large cities that have lost a large percentage of their population, the maintenance, upgrades, and replacements required to manage the risk of undesirable lead contamination and sewage discharge is becoming increasingly costly.
“Many midsize and large cities throughout the United States, including the Midwest and Northeast, have lost a substantial percentage of their population,” the report said. “These cities face the challenge of a corresponding decline in utility revenues from a loss of ratepayers, which makes it difficult to address their water infrastructure needs.”
The GAO found that cities with declining populations are more economically distressed, face higher poverty and unemployment rates, and have lower median incomes than their growing and stable counterparts. While the economics of shrinking cities has been examined in the past, little research has been conducted into these cities’ water and infrastructure concerns.
The GAO report also found that for utilities in the 10 cities it reviewed, utility rates were raised to increase revenues to pay for water infrastructure needs. Utilities also incorporated other efforts to address concerns about affordability for low-income customers. The GAO reviewed 14 utilities, finding that many had raised rates each year partly due to lower water use from declining populations and to pay for other rising costs.
The report also provided information on six federal programs and one policy that could aid cities with declining populations in addressing these concerns.
