Sunday, March 11, 2018

DeKalb Water Problems


DeKalb Water has become the poster-child for “Privatization” of government “services” in Metro Atlanta.

Water Agency in Turmoil, AJC, 3/11/18 sites that a federal judge ordered DeKalb to fix its leaky water and sewer systems and the price tag is $700 million for the upgrade. DeKalb consumes 70 million gallons of water each day. DeKalb Water had 189,816 metered connections in 2014 and serves 681,893 individuals.

If DeKalb metered connections can be estimated at 200,000 for 2018, we can do some math to understand the cost to consumers.  $700 million divided by 200,000 customers is $3500 per customer.  If the 200,000 customers pay $250 million per year, the average cost per consumer is $1250 per year. 

In 2016, Watershed operating revenue for the year totaled $252 million compared with operating expenses of $166 million resulting in an operating income for the year of $86 million. Watershed continues to focus on the planned capital improvement program.

If DeKalb Water actually needs to spend $700 million on their system and they only have $250 million a year, it would take 2.8 years to complete the upgrade if they had no other expenses. In reality, I’m sure they spend the $166 million a year on staff salaries and emergency repairs and slush their $86 million profit into the DeKalb County general fund to piss away on other things.

 

That’s what happens when counties base their financial decisions on political “priorities” instead of financial priorities.  Water and Sewer Systems and roads are the most expensive pieces of infrastructure the county has and should be the first priorities. If manufacturing companies can figure out how to minimize downtime, counties should be able to do the same.

 

This looks unsustainable and that makes DeKalb Water a perfect candidate for the kind of privatization all European countries have accomplished since the 1980s.

 

Norb Leahy, Dunwoody GA Tea Party Leader

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