By Ron Thaniel and Brett Rosenberg
June 27, 2005

"Congested metropolitan highways, transit demand exceeding resources, structurally deficient or functionally obsolete bridges, tunnels, rails, and water and sewer infrastructure in danger of failing are urgent reminders of an infrastructure crisis that is jeopardizing America's prosperity," Conference President Akron Mayor Don Plusquellic told the mayors gathered for the June 12 plenary discussion on The State of America's Infrastructure.

Introducing Conference Transportation and Communications Chair Seattle Mayor Greg Nickels and Urban Water Council Co-chairs Trenton Mayor Douglas H. Palmer and Sugar Land (TX) Mayor David G. Wallace, Plusquellic said "Our nation's infrastructures from transportation to water have been neglected for far too long and are now crumbling at an alarming rate."

"The infrastructure that supports our economy and quality of life is deteriorating because we have failed to invest in the improvements needed to keep pace with our growing population, let alone our increasing demands," said Plusquellic.

Highlighting that transportation infrastructure is supporting the 21st century economy, Nickels said, "Cities and the companies based in our metro areas need a modern transportation infrastructure to move goods, services, and people in an efficient manner so they can compete in a 21st century economy."

Urging Congress to approve a metro-focused reauthorization of the long-delayed Transportation Equity Act for the 21st Century (TEA-21), Nickels told the mayors that "cities face critical transportation infrastructure needs and need a well-funded bill of no less than $295 billion over six years."

Reflecting on the continued downward spiral of the funding levels in both the House and Senate bills, Nickels said "as originally introduced last year, the House bill was well-funded at $375 billion and the Senate bill at $318 billion over six years."

"Today, the House is proposing a bill of $284 billion over six years, while the Senate has moved a measure of $295 billion over six years, which just maintains the current aging and congested transportation system," said Nickels.

Nickels further noted that just maintaining our transportation system "is not the standard we need to get for America. Mayors need to send that message."

Highlighting the results of the American Society of Civil Engineers 2005 Infrastructure Report Card, Nickels said "transit infrastructure went from a C- to D- and road infrastructure went from a D- to D since 2001."

"There is not a single A or B. The overall grade is a D. The total estimated 5-year infrastructure investment need is $1.6 trillion. America is failing to invest in its infrastructure," said Nickels.

Palmer and Wallace, co-chairs of the Urban Water Council, presented a number of important topics during State of America's Infrastructure session.

In addition, Palmer and Wallace mentioned the preliminary results of a National Water Resources Survey, discussed how the Urban Water Council benefits mayors, and previewed the Urban Water Summit, to be held this fall in Albuquerque. The mayors also announced a competition, the first Municipal Water Conservation Achievement Awards, which will be announced at the upcoming summit.

The survey, which polled the entire membership about their water resource and infrastructure priorities, revealed some telling results, according to the mayors. Wallace reported that aging infrastructure is the number one priority, with water system security, water scarcity, unfunded federal mandates, and water quality issues all weighing in as well. The survey also indicated trends in infrastructure financing. Over the next five years, more than 50 percent of cities plan to invest in water supply, water treatment facilities, water distribution systems, wastewater treatment facilities and sewer collection systems. According to Wallace and recent reports of massive needs gaps in infrastructure funding requirements, "Given the needs investment needs we already have, we can draw a logical conclusion that we-ll have upward pressure on pricing."

One important means of easing pressure on water pricing, according to Wallace, is by eliminating the volume cap on Private Activity Bonds, or PABs. Wallace noted that only two percent of the cities surveyed plan to tap PABs to help finance projects, saying that, "It's too bad because it's a major piece of private funding ready for public use." Congress, according to Palmer and Wallace can act to increase the use of PABs by raising state volume caps on them. House Bill 1708, filed by Representative Clay Shaw (FL) would lift those state volume caps and allow cities to access low cost financing to move ahead with modernizing the aging water infrastructrure.

The survey should be available on the Urban Water Council website in late July.

Palmer, saying that "all of us have water issues; if you don't know, you will," closed the session by talking about some upcoming events and reporting some of the benefits of joining the Urban Water Council. He cited several cities, including Kansas City (MO), Louisville, Wilmington and others that have saved hundreds of millions of dollars and untold volumes of water through sharing best practices about infrastructure investment, partnerships and performance contracting. Palmer also announced the inaugural competition for the Municipal Water Conservation Achievement Awards, of which each mayor is eligible to enter. More information will be available on the Urban Water Council website in July and winners will be announced during the fall Urban Water Summit, beginning September 29 in Albuquerque.