BUILDING A BETTER BUSINESS CASE FOR FUNDING SEWER REHABILITATION
Abstract:This paper presents the framework for a financial model that can be used by utility managers to demonstrate the business case for funding sewer rehabilitation. The model includes traditionally accepted financial considerations such as savings from infiltration and inflow (I/I) removal through reduced transport and treatment costs and savings from deferred capital expenditures. In addition, the model considers savings in other operation and maintenance costs through reduced costs for cleaning, root removal, and crew time spent on emergency responses to sanitary sewer overflows (SSOs) and blockages.
The methodology presented shows that funding sewer rehabilitation is a financially sound and necessary decision to operate and maintain a sewer system cost-effectively. For conditions typically found in sanitary sewer systems today, a business case can be made for funding infrastructure rehabilitation at levels substantially higher than is typical for most utilities. The results show that financial evaluations based on system condition information should be used to set rehabilitation budgets and to set priorities for applying rehabilitation funds to achieve the best financial return.
Document Type: Research Article
Publication date: January 1, 2004
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