Funding water and wastewater infrastructure in rural Oregon: Leadership strategies to close the needs/resources gap

Problem:

Oregon's backlog of water/wastewater infrastructure projects threatens economic development, public health and community solvency. From 2000 to 2004, deferred maintenance and capital investments in water and wastewater projects doubled to $3 billion. If demands continue growing at current rates, infrastructure needs will reach $7 billion by 2012. Oregon lacks capital for needed improvements; local citizens consistently decline to increase fees to address the problem. How can the Governor's Office lead rural communities toward sustainable water and wastewater systems?

Methodology:

Interviews with public employees, city managers, and overseers of water and wastewater projects. Analysis of data from the Oregon Economic and Community Development Department's 2007 survey on planned infrastructure projects and available local funds, and DHS Clean Drinking Water Program's data on public water systems' adherence to state and federal regulatory standards.

Findings:

The needs/funding gap is acute in small towns because of:

Perceived lack of urgency;

Strong local opposition to rate increases, non-incremental rate increases;

Below cost-of-service user fees;

Lack of capital improvement reserve funds

little consideration of lower-cost wastewater system alternatives.

Recommendations:

"Business as usual" is not viable. Although some solutions are technical, much of the work is adaptive, and requires exceptional leadership from state leaders, providing clear vision, and specific objectives to local governments including:

A comprehensive community deliberation strategy;

A water/wastewater infrastructure benchmark to track progress;

Support for regional water system initiatives and promotion of alternative wastewater treatment technologies;

Matching funds for large maintenance projects and upgrades;

Technical assistance in administrating local inflation-indexed annual rate increases.