Report: How Do Local Water Utilities Measure Up?

With the federal funding situation uncertain, water utilities are left in widely varying financial positions. Comparing local utilities across six metrics paints a grim picture.

1 minute read

January 19, 2017, 6:00 AM PST

By Philip Rojc @PhilipRojc


Water Main

Dan Holm / Shutterstock

The incoming Trump Administration has made vague promises around federal infrastructure spending. "However, much of the hard work continues to rest on the shoulders of individual cities and states, where more than 95 percent of public spending on operations and capital improvements takes place annually."

For Brookings, Joseph Kane writes that despite widespread support for upgrades, "only about 17 percent of utilities are confident that they can just cover the cost of existing service through rates and fees—let alone pursue needed upgrades."

In the report, Kane compares local water utilities across "three different measures of utility finances—operating ratios, debt-to-asset ratios, and rates—and three broad economic variables—changes in population, changes in median household income, and the share of lower-income households in the primary city served—to create a new barometer for city-level water infrastructure investment."

The results aren't exactly promising. "Only a handful of drinking water utilities in the largest cities nationally rank highly across six major categories of water finance and related economic indicators."

Wednesday, December 14, 2016 in Brookings Institution

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 9, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Bend, Oregon

Bend, Oregon Zoning Reforms Prioritize Small-Scale Housing

The city altered its zoning code to allow multi-family housing and eliminated parking mandates citywide.

2 hours ago - Strong Towns

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

3 hours ago - Smart Cities Dive

Green Skid Row mural satirizing city limit sign in downtown Los Angeles, California.

LA Denies Basic Services to Unhoused Residents

The city has repeatedly failed to respond to requests for trash pickup at encampment sites, and eliminated a program that provided mobile showers and toilets.

4 hours ago - Los Angeles Public Press