Relationship between Investment in Water and Wastewater Infrastructure and Economic Growth
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1 Relationship between Investment in Water and Wastewater Infrastructure and Economic Growth September 30, 2014 EDWARD J. COLLINS CENTER FOR PUBLIC MANAGEMENT
2 Agenda Project Background Massachusetts water and wastewater systems Academic Studies Case Studies Conclusions
3 Project Purpose What is the relationship between investing in water and sewer infrastructure and economic growth?
4 Study Area(s) Study does not include Cape, islands, or Berkshires Wastewater analysis follows MAPC boundary Employment / population projections for Boston metro area only.
5 Massachusetts Infrastructure - Potable Water -
6 Potable Water: public water service system Municipal PWS Permitted Gaging Station Reservoir SMWI Acquifer Wells Pond Independ ent Water District Water Mgmt Act Registered No PWS Ware River Diversion Regional PWS Stressed Basin Surface Water MWRA Emergen cy Water Service Ground Water
7 Water: Massachusetts at a Glance
8 Water: 495 Region
9 Potable Water Challenges Aging infrastructure Declining funding Changing regulations Communities are largely on their own to solve major, costly problems.
10 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
11 Potable Water Challenges SWMI Regulations New SWMI communities
12 Potable Water Challenges SWMI Regulations New SWMI communities
13 20% of projected jobs.in Boston metro region are located in potentially constrained communities. Potable Water Challenges EMPLOYMENT GROWTH (partial listing) 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, Newbury(Byfield) 1,459 2, Gloucester 9,865 10, Groveland 1,114 1, TOTAL 47,500
14 Potable Water Challenges POPULATION GROWTH (partial listing) Municipality 2010 Pop 2035 Pop (proj.) Net Change Plymouth 79,338 97,748 18,410 Weymouth 72,019 87,720 15,701 Lynn** 112, ,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, % of projected population growth in Boston metro region is located in potentially constrained communities.
15 Potable Water Challenges
16 Massachusetts Infrastructure - Wastewater -
17 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
18 Wastewater Treatment: Boston region at a Glance Wastewater Treatment Systems
19 Wastewater Challenges Aging infrastructure Significant funding gap Changing regulations Capacity constraints Nationally, aging wastewater infrastructure is largely being addressed at the local level.
20 Wastewater Challenges Funding Gap Funding gap for maintaining Massachusetts s wastewater system is estimated to reach $11.2 billion over next 20 years
21 Wastewater Challenges Regulatory Changes Advanced treatment I/I reductions Pending stormwater regulation
22 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 Bellingham Brockton Concord Franklin Hamilton Lynn Marlborough Medway Millis Nahant Northborough Rockland Saugus Swampscott Whitman
23 Wastewater Challenges EMPLOYMENT GROWTH MetroFuture Employment Projections by Wastewater Constraint (495 Partnership Only) Municipality 2010 Jobs 2035 Jobs Net Change EMPLOYMENT GROWTH 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, Melrose 6,273 6, Maynard 4,400 4, Hopedale 1,620 1, Upton 1,010 1, Millis 1,983 1, Hopkinton 9,274 9, Medway 3,513 3, Bellingham 5,386 5, TOTAL 17,696 Over 154,000 jobs (67% of total) projected in potentially constrained communities in Boston region.
24 Wastewater Challenges POPULATION GROWTH MetroFuture Population Projections by Wastewater Constraint (495 Partnership Only) Municipality 2010 Population 2035 Net Change Population Bellingham 21,719 21, Foxborough 27,744 31,795 4,051 Framingham 112, ,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, Melrose 33,256 34,980 1,723 Milford 42,927 47,707 4,780 Millis 9,874 10, 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.
25 Academic Studies
26 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.
27 Massachusetts Case Studies
28 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
29 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 operation 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
30 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)
31 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 ( ) Reversed trend of job loses and declining commercial tax base
32 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
33 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
34 Additional Case Studies Framingham: Genzyme Corporation Lynnfield: PHF-ND Colonial, LLC
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