5.5. ERMUSR 03-19-2013 - Laserfiche WebLink

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IF Position Statement• Addressing the Costs of Clean Water Background Despite the tremendous investment by local government, the U.S. Environmental Protection Agency estimates that there still is a $500 billion "needs gap" to meet water and wastewater infrastructure needs and to comply with current environmental mandates. MMUA members, who have made very heavy investments in sewer and water facilities over the years, are experiencing first -hand the need for much greater investment, particularly regarding the construction, operation and maintenance of water and wastewater treatment facilities. One of the greatest sources of these cost increases comes from the expanding number of regulations and the growing list of contaminants that must be dealt with under state and federal law. There is an economic component to the discussion of this issue as well. Expanded investment in water and wastewater facilities is not only important for public health, but has become an essential ingredient for economic development. The heavy cost increases for water and wastewater facility investment, if not addressed, are sure to adversely impact the economic viability of our Minnesota cities. Despite these increases, there have been serious proposals on the state and federal level to eliminate the income- fax exemption on municipal bonds, the most important financial tool we have in funding necessary infrastructure improvements to water and wastewater facilities. At present, there seems to be a lack of appreciation at both the state and federal levels of government regarding the tremendous problem that this situation has created for Minnesota communities, which must bear most of the burden from the increased costs of new water and wastewater treatment facilities. We believe that public policy makers at all levels should be in a position to review and understand the increased costs brought about by this increased regulation. MMUA Position MMUA favors a state study that would chart historic costs of construction, operation and maintenance of water and wastewater treatment facilities. We envision a study that would also establish a standard for comparing costs based on plant output. MMUA also supports a requirement that a specific agency in state government be charged with keeping track of these costs going forward and report the results of these studies at the beginning of each biennial session. It is not the intent of MMUA or its members to argue for or against the inclusion of particular substances in the list of contaminants established by State or Federal authorities that must be removed from drinking water or from wastewater. It is, rather, our intent that elected and appointed policy makers be provided information that will • help focus attention on the dramatically increasing costs of clean water. Access to accurate cost data will be a great help in the development of policies to address this quiet crisis in local government services. Also, we call upon the State Legislature and Congress preserve the state and federal income tax exemption on municipal bonds, our most important financial vehicle for raising the capital to fund the increasingly expensive infrastructural improvements that must be made to protect Minnesota's water resources. 2013 State Position Statements / 13 •