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The Impact of Water Pollution Abatement Costs on Financing of Municipal Services in North Central Texas

Description: The purpose of this study is to determine the effects of water pollution control on financing municipal water pollution control facilities in selected cities in North Central Texas. This objective is accomplished by addressing the following topics: (1) the cost to municipalities of meeting federally mandated water pollution control, (2) the sources of funds for financing sewage treatment, and (3) the financial implications of employing these financing tools to satisfy water quality regulations. The study makes the following conclusions regarding the impact of water pollution control costs on municipalities in the North Central Texas Region: 1) The financing of the wastewater treatment requirements of the Water Pollution Control Act Amendments of 1972 will cause many municipalities to report operating deficits for their Water and Sewer Fund. 2) A federal grant program funded at the rate of 75 per cent of waste treatment needs will prevent operating deficits in the majority of cities in which 1990 waste treatment needs constitute 20 per cent or more of the expected Water and Sewer Fund capital structure. 3) A federal grant program funded at the average rate of 35 per cent of needs will benefit only a small number of cities. 4) The federal grant program does not improve the operating position of cities in which needs are less than 20 per cent of the total expected capital structure. 5) The state grant program shows the greatest incidence of producing municipal Water and Sewer Fund operating deficits. 6) In order to eliminate operating deficits, cities will need to increase Water and Sewer Fund income in amounts ranging from 0.3 per cent to 571.6 per cent.
Date: May 1976
Creator: Rucks, Andrew C.