Relationship between Investment in Water and Wastewater - - PowerPoint PPT Presentation

Relationship between Investment in Water and Wastewater Infrastructure and Economic Growth

EDWARD J. COLLINS CENTER FOR PUBLIC MANAGEMENT

September 30, 2014

Agenda

▸ Project Background ▸ Massachusetts water and wastewater “systems” ▸ Academic Studies ▸ Case Studies ▸ Conclusions

Project Purpose ▸ What is the relationship between investing in water and sewer infrastructure and economic growth?

Study Area(s)

• Study does not include Cape, islands, or

Berkshires

• Wastewater analysis follows MAPC

boundary

• Employment / population projections for

Boston metro area only.

Massachusetts Infrastructure

• Potable Water -

Potable Water:

public water service “system”

Municipal PWS Pond Regional PWS Independ ent Water District No PWS Surface Water Ground Water Emergen cy Water Service MWRA Acquifer Reservoir Stressed Basin SMWI Registered Permitted Ware River Diversion Gaging Station Water Mgmt Act Wells

Water: Massachusetts at a Glance

Water: 495 Region

Potable Water Challenges

▸ Aging infrastructure ▸ Declining funding ▸ Changing regulations

Communities are largely on their own to solve major, costly problems.

Potable Water Challenges - Aging Infrastructure

▸ 21,000 miles of pipes in need of repair or replacement ▸ Guideline to repair or replace 1% of water distribution system each year ▸ $168 million investment needed each year (based on $800,000 per mile) ▸ Funding gap - $10.2 billion

Potable Water Challenges – SWMI Regulations

New SWMI communities

Potable Water Challenges – SWMI Regulations

New SWMI communities

Potable Water Challenges

Municipality 2010 Jobs 2035 Jobs (proj.) Net Change Weymouth 18,275 22,652 4,377 Westborough 23,610 27,690 4,080 Plymouth 22,869 26,759 3,890 Westford 11,681 15,145 3,464 Foxborough 10,879 13,706 2,827 Attleboro 16,598 19,423 2,825 Lynn** 22,557 24,810 2,253 Northborough 5,800 7,640 1,840 Mansfield 10,992 12,811 1,819 North Attleboro 11,175 12,974 1,799 Marlborough** 32,715 34,178 1,463 Milford 14,781 16,166 1,385 Plainville 3,574 4,910 1,336 Raynham 8,605 9,868 1,263 Salisbury 2,795 4,037 1,242 Georgetown 2,212 3,317 1,105 Braintree 26,221 27,207 986 Newbury(Byfield) 1,459 2,249 790 Gloucester 9,865 10,633 768 Groveland 1,114 1,861 747

TOTAL

47,500

EMPLOYMENT GROWTH (partial listing)

20% of projected jobs.in Boston metro region are located in potentially constrained communities.

Potable Water Challenges

POPULATION GROWTH (partial listing)

11.3% of projected population growth in Boston metro region is located in potentially constrained communities.

Municipality 2010 Pop 2035 Pop (proj.) Net Change

Plymouth 79,338 97,748 18,410 Weymouth 72,019 87,720 15,701 Lynn** 112,887 125,326 12,439 Westford 33,632 42,192 8,560 North Attleboro 39,889 48,304 8,415 Westborough 41,883 48,800 6,917 Attleboro 60,192 66,649 6,457 Mansfield 34,176 39,822 5,646 Northborough 19,955 25,450 5,495 Raynham 21,987 27,009 5,022 Milford 42,927 47,707 4,780 Plainville 11,838 16,196 4,358 Gloucester 38,654 42,965 4,311 Foxborough 27,744 31,795 4,051 Peabody 74,380 78,379 3,999 Salem/Beverly 59,719 63,701 3,982 Hingham/Hull 34,019 37,998 3,979 Marlborough** 71,214 74,839 3,625 Salisbury 11,078 14,658 3,580 Braintree 61,966 65,334 3,368

TOTAL

198,300

Potable Water Challenges

Massachusetts Infrastructure

• Wastewater -

Wastewater

▸ Federal Clean Water Act of 1972 drove advances in wastewater treatment

▸ Required secondary treatment of wastewater ▸ MWRA compliance cost $3.8 billion

▸ Wastewater treatment options today:

▸ MWRA, municipal or regional treatment facilities, on-site septic systems

Wastewater Treatment: Boston region at a Glance

Wastewater Treatment Systems

Wastewater Challenges

▸ Aging infrastructure ▸ Significant funding gap ▸ Changing regulations ▸ Capacity constraints

Nationally, aging wastewater infrastructure is largely being addressed at the local level.

Wastewater Challenges – Funding Gap

▸ Funding gap for maintaining Massachusetts’s wastewater system is estimated to reach $11.2 billion over next 20 years

Wastewater Challenges – Regulatory Changes

▸ Advanced treatment ▸ I/I reductions ▸ Pending stormwater regulation

Wastewater Challenges – Capacity Constraints

▸ Permitted limits on wastewater flow or lack of centralized treatment facilities may impact employment and population growth in some communities, including:

Abington Millis Bellingham Nahant Brockton Northborough Concord Rockland Franklin Saugus Hamilton Swampscott Lynn Whitman Marlborough Medway

Wastewater Challenges

EMPLOYMENT GROWTH

MetroFuture Employment Projections by Wastewater Constraint (495 Partnership Only) Municipality 2010 Jobs 2035 JobsNet Change Westborough 23,610 27,690 4,080 Framingham 43,809 46,829 3,020 Foxborough 10,879 13,706 2,827 Franklin 13,684 16,320 2,636 Northborough 5,800 7,640 1,840 Marlborough 32,715 34,178 1,463 Milford 14,781 16,166 1,385 Hudson 9,820 10,419 599 Melrose 6,273 6,468 194 Maynard 4,400 4,585 185 Hopedale 1,620 1,670 50 Upton 1,010 1,040 30 Millis 1,983 1,930

• 53

Hopkinton 9,274 9,116

• 158

Medway 3,513 3,336

• 177

Bellingham 5,386 5,161

• 225

TOTAL 17,696

Over 154,000 jobs (67% of total) projected in potentially constrained communities in Boston region.

EMPLOYMENT GROWTH

Wastewater Challenges

POPULATION GROWTH

MetroFuture Population Projections by Wastewater Constraint (495 Partnership Only) Municipality 2010 Population 2035 Population Net Change Bellingham 21,719 21,176

• 543

Foxborough 27,744 31,795 4,051 Framingham 112,131 118,330 6,199 Franklin 45,319 51,391 6,072 Hopedale 7,531 8,649 1,118 Hopkinton 24,199 26,358 2,159 Hudson 28,883 30,817 1,934 Marlborough 71,214 74,839 3,625 Maynard 14,506 15,938 1,432 Medway 16,265 16,744 479 Melrose 33,256 34,980 1,723 Milford 42,927 47,707 4,780 Millis 9,874 10,074 200 Northborough 19,955 25,450 5,495 Upton 8,552 9,580 1,028 Westborough 41,883 48,800 6,917 TOTAL 46,669

Population growth of over 472,000 (66%

• f total) in potentially constrained

communities in Boston region.

Academic Studies

Academic Studies

Findings Include: ▸ A positive correlation exists between investment in infrastructure and increases in GDP. ▸ Government investment in infrastructure has a far greater impact on private investment decisions than any other type of government expenditure. ▸ Investment in water and sewer infrastructure can stimulate private investment, which in turn generates state and municipal.

Massachusetts Case Studies

Case Studies – overarching findings

▸ Investment in water and sewer infrastructure can unlock economic potential in an area. Conversely, lack of infrastructure or uncertainly about water availability can delay, if not outright halt development projects.

▸ Boston ▸ Taunton ▸ Stoughton ▸ Weymouth ▸ Somerville

Boston’s Seaport District:

rapid urban redevelopment

Investment ▸ Boston Harbor Clean Up

▸ $1 billion+ on water and wastewater plants and distribution system

▸ MBTA Silver Line ▸ Central Artery/Tunnel Project ▸ Optimized marine terminal

• peration

▸ Boston Convention & Exhibition Center Growth (fall 2013) ▸ 10,000 employees ▸ 1,000 housing units ▸ $2.2 billion in private investment ▸ $75 million annual local tax revenue

Taunton’s Myles Standish Industrial Park:

military base reuse

Investment ▸ Construction of I-495 beltway ▸ $1.5 million for water main and sanitary sewer to start Phase I Growth (fall 2013) ▸ 7,400 jobs ▸ $6 million in annual local property taxes, and growing ▸ $17.2 million in land sales proceeds (final phase only)

Stoughton:

land reuse

Investment ▸ Became an MWRA drinking water community member after MassDEP mandate (2003) ▸ $1.8 million for new water main Growth ▸ $4.5 million increase (+50%) in annual commercial tax revenue (2003-2009) ▸ Reversed trend of job loses and declining commercial tax base

Weymouth:

potentially SWMI impacted community

Investment decision ▸ Identify adequate water source: Brockton or MWRA under consideration Potential Unrealized Opportunity ▸ Phase II and III of development plan ▸ 2,533 new jobs ▸

• Est. $11.2 million in local tax

revenue

Somerville’s Union Square/Boynton Yards:

potentially unrealized opportunity

Needed investment ▸ $40-$50 million to address stormwater issues Unrealized Opportunity ▸ 4,300 jobs ▸ 850 residences ▸

• Est. $45 million local tax

revenue

Flooding impacts, July 2010

Additional Case Studies

▸ Framingham: Genzyme Corporation ▸ Lynnfield: PHF-ND Colonial, LLC