1. Funding for Municipal Infrastructure Ruth Noemí Colón Acting Secretary of State George Stafford Deputy Secretary of State Public Finance and Management Partnership, September 28, 2010 Syracuse, New York

2. Indentifying and leveraging local assets Maximizing cost efficiencies Collaborating and partnering Capitalizing on opportunities Building and Sustaining Success

3. Department of State Community Development Programs Local Government Efficiency Program - LGE Local Waterfront Revitalization Program - LWRP Brownfield Opportunity Area Program - BOA Appalachian Regional Commission Program – ARC

4. Water and Wastewater Systems

5. Water Systems What is drinking water infrastructure? 1.Source – ground (well) and surface (intake) 2.Treatment – filtration, disinfection, aeration 3.Storage – water tanks 4.Transmission – distribution mains, valves, etc. 5.Other – computer and security equipment.

6. Wastewater Systems What is wastewater infrastructure? 1.Collection System - Pipes and pumps that collect used water and take it to a treatment facility 2.Treatment Facility – where a combination of physical, chemical and biological processes clean water before discharge

7. Challenges Compliance with Federal/State Regulations Aging infrastructure Sources of contamination Reduced federal and state financing for infrastructure improvements Combined Sewer Overflows (CSOs) Sanitary Sewer Overflows (SSOs) Reduced federal and state funding

8. Aging Infrastructure 10,147 regulated water systems in New York State NYC is oldest and largest, with > 6,800 miles of mains up to 150 years old

9. Aging Infrastructure 610 wastewater plants 1,060 sewage collection systems 23% treatment plant equipment > 30 years old 30% of sewer lines > 60 years old

10. Reduced Funding

11. Wastewater Costs

12. Local Government Efficiency Program (LGE) (Municipalities Gaining an Advantage) Improving services Increasing Competitiveness Reducing local costs Coordinating solutions Focusing resources

13. Local Government Efficiency Reprinted with permission from Roger K. Lewis Potential Inefficient Service Limited Resources Reduced Services Degradation of Infrastructure

14. LGE Grant Program Eligibility Local Governments (counties, cities, towns, villages, school districts, BOCES, fire districts, special improvement districts, library districts, regional planning boards, water and sewer authorities) Funding Up to $50,000 for planning $200,000 per applicant, up to $1,00,000 for implementation

15. LGE Grant Program 2010-2011 Local Government Efficiency Grants $5 Million Available Competitive Deadline December 1, 2010 High Priority Deadlines – 3 rd Wednesdays – October - March – 4:00 PM

16. Options for Improving Efficiency Effective asset management Consolidate municipal systems Regionalize wastewater collection and treatment

17. Asset Management Capital Investment Plan (CIP) – Long-lived assets (e.g. treatment facility) – Proactive planning – Charging rates to cover replacement costs < 40% of municipalities have a CIP Breakdowns waste financial resources and jeopardize public health & safety

18. Consolidation Share municipal water source, treatment, storage and transmission systems Avoid redundant O & M and equipment replacement costs More efficient Capital Investment Planning – Consolidated needs assessment – Avoid redundant financing costs

19. Regionalization “Get out of the business” Regional providers offer advantages: – Economies of scale – Professional management – No need for Capital Investment Planning Caveat: May require extensive capital upgrades to comply with stricter standards

20. Town of Cape Vincent Town wells unreliable and contaminated and Village water tank deficient in condition and size. New Town water district and shared Village water tank, partially funded with $400,000 SMSI grant. Expected savings: $1 million up-front plus $200 per household in annual fees and costs.

21. Erie County Regional consolidation in northeastern Erie County $4.8M savings after 10 years or 13.7% of total budget vs. status quo Savings due to lower County pay scale

22. Town of Ticonderoga New sanitary sewer system jointly with Town of Putnam Addressed failing septic systems on Lake George Median household savings of $367

23. Town of Glenville Joint sewer project with Town of Clifton Park Household savings of $461 in Glenville and $749 in Clifton Park Serves Niskayuna elementary school

24. Land Use Considerations Smart Growth principles – Consistency between population trends and facility planning – Promotes development in areas with existing infrastructure – Protects natural and cultural resources – Consistent with comprehensive plans

25. 99 Washington Ave, Suite 1010 Albany, NY 12231 (518) 473-6000 (800) 367-8488 http://www.dos.state.ny.us localgov@dos.state.ny.us 25