The latest chapter in the saga that is the Bucks County Water & Sewer Authority is its decision to attempt to sell the sewer portion of their enterprise to a private company and get out of the waste water business. 75% of its operations, it intends to hold onto the water service, at least for now.
On the surface the proposed bid of $1.1 billion is seductive. The utility pays off its enormous debt ($100,000,000.+), and hands over daily operations to a theoretically more competent private entity. The truth of these two assertions remains to be seen. As to debt, the authority, owned by Bucks County, may indeed off load its past financial bond issues, but new debt will replace it as expensive maintenance projects are inevitably required.
Even if in private hands, that increased cost will be passed along to the consumer ratepayers as higher monthly bills. It is estimated that retail costumers will pay double current rates after one year, and considerably more thereafter. Wholesale customers like the Newtowns will not be directly impacted, but will still have a conveyancing charge for that portion of local waste that uses the county lines to move it from here to the processing facility in Philadelphia. A large portion of any increases will be passed along to the local folks.
Unspoken is the historic reality of mismanagement of the public utility over the years. This group expanded since 1962 to acquire many small municipal systems that never quite fit together, and required more significant upgrades then the utility was competent to provide. Hundreds of millions borrowed through bond debt financing never completely got the job done, so that one bond issue followed on earlier ones, in questionable pattern of mergers that covered systems that were for sale or sought after by BCWSA, but meshed poorly. Systems in Montgomery and Chester Counties were purchased, but are not connected with the Bucks network.
Ultimately, it showed itself to be incapable of modern state of the art management, and now seeks to escape the burden of these poor judgments by passing the hodgepodge along to new private hands. Promises of rate stabilization with the funds remaining after debt payment are attractive until it is realized that this promise is likely unenforceable. Projections of 10 years of protection are empty as no one knows what inflation and expensive maintenance will do to this fund. Too, public officials cannot be bound to all past decisions.
The better solution would be to finally put the county's utility in stronger hands, but to keep it a public entity committed to the common good and public welfare. No more dumping old pols onto the board of directors without knowledge how to run the operations, or allowing quiet nepotism to populate the workforce with too many non-productives.
The whole concept of privatization needs to be reconsidered. The notion that private enterprise does everything better than public domain is little more than popular fantasy. Is it too much to ask that government demand elite execution of the services provided to its citizens? I don't think so.
Maybe, what we really need are better people in government. read more