Borrowing for the Big Stuff: Overview of Local Government Water and Wastewater Debt in North Carolina

Debt and debt management for water and sewer utilities are becoming increasingly important as our country’s infrastructure needs continue to grow. The U.S. Environmental Protection Agency’s 2011 Drinking Water Infrastructure Needs Survey and Assessment indicates that $384.2 billion in drinking water infrastructure investments is needed over the next 20 years. Ten billion dollars of this need comes from North Carolina and much (if not most) of the infrastructure will be funded through debt. This makes North Carolina one of only ten states in the country with drinking water infrastructure capital needs exceeding ten billion dollars. This paper focuses primarily on capital financing and looks at broad debt trends among local government utilities in North Carolina to better understand current practices in the context of the frightening capital needs numbers. 

Project page: North Carolina Water System Capacity Development Support