The Hidden Cost of Ignoring Infrastucture
Every day, we rely on municipal infrastructure—the clean water flowing from our taps, the efficient removal of wastewater, and reliable roads. These systems quietly ensure our communities remain healthy, safe, and functional. Yet maintaining this vital infrastructure requires consistent attention and steady investment. Central to this responsibility is the often misunderstood need for regular, incremental increases in utility rates.
Funding Municipal Infrastructure: A Necessary Responsibility
John Blom, President of HECO Engineers, explains that “for a small municipality, their cash register is their water meters.” Fees paid for utilities like water and sewer services are the lifeline funding essential infrastructure. Cities, though nonprofit entities, must still operate with financial discipline akin to successful businesses, continually investing in the maintenance and replacement of aging infrastructure.
The Hidden Costs of Deferred Maintenance
Keeping utility rates artificially low may seem politically appealing, but the long-term effects are damaging. Immediate operating expenses like labor and chemicals typically remain covered, but essential maintenance, such as pump replacements, sewer repairs, and pipeline maintenance, often become neglected. A repeated mentality of “we can wait another year” eventually leads to serious infrastructure failures, causing large, sudden, and disruptive projects with hefty price tags.
Municipal infrastructure naturally deteriorates. Pipes laid decades ago degrade, pumps fail, and roads deteriorate. Ignoring incremental maintenance is like neglecting car maintenance—eventually, something significant breaks. When critical systems reach the end of their lifespan, cities face emergency repairs and substantial rate increases. Often, these major projects require bonding, saddling communities with long-term debt and interest payments that last for decades.
Infrastructure costs are continually rising. Materials like pipes and diesel, along with essential skilled labor, are increasingly expensive. To retain qualified public works professionals—those Blom describes as “gold”—municipalities must offer competitive wages. Incremental rate adjustments are crucial to meet these rising costs without imposing unexpected financial stress on residents.
Incremental Rate Increases: A Proactive Solution
Instead of sporadic, large hikes, regular incremental increases of 3-5% annually or biennially can smoothly integrate costs into budgets. Blom highlights that incremental improvements, such as regularly slip-lining sewer lines, are significantly less expensive and disruptive than major repairs that follow years of neglect. Regular, modest rate adjustments ensure sustainable funding, prevent deferred maintenance, and keep critical infrastructure consistently reliable.
Strategic Planning Through Master Plans
Effective financial management of infrastructure depends heavily on updated water and wastewater master plans. These documents outline necessary investments and guide future rate adjustments. Without this “guiding document,” cities operate blindly, risking financial strain and infrastructure failures.
HECO’s Proactive Approach
HECO Municipal Engineers prioritize incremental maintenance and strategic planning to help municipalities avoid major infrastructure disruptions. By focusing on smaller, continuous projects and aligning infrastructure upgrades strategically—such as coordinating waterline replacements with road resurfacing—municipalities optimize resources and minimize disruption. HECO’s approach emphasizes building trust through accountability, reliability, and proactive partnership.
A Call to Action: Responsibility for Future Generations
Municipal leaders bear responsibility for leaving their communities in better shape than they found them. Regular incremental utility rate increases aren’t merely about raising costs; they’re about responsibly ensuring ongoing health, safety, and reliability for today and future generations. Embracing a proactive, incremental strategy today can help municipalities avoid crippling costs tomorrow, securing sustainable infrastructure for decades to come.