The concept of a balanced budget seems a distant theory in Washington DC. Municipal and state governments required to operate with a balanced budget are struggling to maintain core services with reduced revenues caused by deep recession. The federal government’s massive spending programs stand in stark contrast to local government spending philosophies. The related (and stunning) federal deficits that are unsupported by revenues will only add additional pressure to local governments and service utilities.

As water and wastewater infrastructure ages and deteriorates, the cost of replacing it all becomes a growing concern. Replacement costs can be astronomical and, and it doesn’t help that many utilities have not planned for the inevitable expenditures for replacement. When providers cannot postpone replacement of this infrastructure, the high costs come as a shock to previously oblivious rate-paying customers. The resulting conflict between providers and ratepayers can be enough to cause gnashing of teeth for even large, well-heeled utilities. Unfortunately, the problem can occasionally be insurmountable for small water systems.