Relationship between Investment in Water and Wastewater - PowerPoint PPT Presentation

Relationship between Investment in Water and Wastewater Infrastructure and Economic Growth September 30, 2014 EDWARD J. COLLINS CENTER FOR PUBLIC MANAGEMENT

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

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 EMPLOYMENT GROWTH (partial listing) 2035 Jobs Municipality 2010 Jobs Net Change (proj.) Weymouth 22,652 4,377 18,275 Westborough 27,690 4,080 23,610 Plymouth 26,759 3,890 22,869 Westford 15,145 3,464 11,681 Foxborough 13,706 2,827 10,879 Attleboro 19,423 2,825 16,598 Lynn** 24,810 2,253 22,557 Northborough 7,640 1,840 5,800 Mansfield 12,811 1,819 10,992 North Attleboro 12,974 1,799 11,175 Marlborough** 34,178 1,463 32,715 Milford 14,781 16,166 1,385 Plainville 4,910 1,336 3,574 Raynham 9,868 1,263 8,605 Salisbury 4,037 1,242 2,795 Georgetown 3,317 1,105 2,212 Braintree 27,207 986 26,221 Newbury(Byfield) 1,459 2,249 790 Gloucester 10,633 768 9,865 Groveland 1,861 747 1,114 TOTAL 47,500 20% of projected jobs.in Boston metro region are located in potentially constrained communities.

Potable Water Challenges POPULATION GROWTH (partial listing) 2035 Pop Municipality 2010 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 11.3% of projected population growth in Boston metro region is located in potentially constrained communities.

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 EMPLOYMENT GROWTH 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.

Wastewater Challenges POPULATION GROWTH MetroFuture Population Projections by Wastewater Constraint (495 Partnership Only) 2010 2035 Municipality Population Net Change Population 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% of 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 Growth (fall 2013) ▸ ▸ Boston Harbor Clean Up 10,000 employees ▸ $1 billion+ on water and ▸ 1,000 housing units wastewater plants and ▸ $2.2 billion in private distribution system investment ▸ MBTA Silver Line ▸ $75 million annual local tax ▸ Central Artery/Tunnel revenue Project ▸ Optimized marine terminal operation ▸ Boston Convention & Exhibition Center

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