Exploring sustainable funding solutions for utility infrastructure investments in Purcellville and towns across America

By Kwasi Fraser, Former Mayor of Purcellville

A recent editorial in a local newspaper highlighted the vital importance of our town’s utility infrastructure, a sentiment that resonates with all residents of the esteemed Town of Purcellville. However, the editorial insinuated that we have been seeking elusive magic bullet solutions and intentionally keeping rates artificially low. 

The editor clearly or intentionally has mistaken us for the town council prior to the ones that I led that placed the Town in $63 million debt, decrease water and sewer rates prior to an election against the recommendation of advisors, and pursued the magic bullet of annexation for one-time unsustainable connecting fees.   

Allow me to further set the record straight and emphasize the commitment of the town councils I have led to responsible financial management.

Contrary to the notion of political expediency, the town councils I led never pursued the strategy of keeping rates artificially low. In fact, under my leadership as mayor since 2014, we implemented conservative rate increases to ensure the financial stability of our utility system. 

These measured increases have enabled us to maintain our AAA credit ratings, generating annual water revenue exceeding four times our water utility debt payments and annual sewer revenue exceeding two times our sewer utility debt payments. These increases were projected out to the end of both water and sewer debt in 2038 and 2040, respectively.

It is important to learn from history, and in our case, we inherited a significant sewer debt of over $40 million from a previous town council. However, we have actively pursued innovative and common-sense solutions, rather than relying on magic bullets like annexation for one time connection fees and lifetime traffic congestion and increased cost of town services. 

Purcellville is fortunate to possess over $150 million worth of municipal-owned assets, which can be leveraged to generate revenue and reduce the burden on our taxpayers and ratepayers.

One prime example of our commitment to maximizing underutilized assets is the development of a nutrient credit bank on a portion of the land purchased by a previous town council to increase future water capacity. 

Through this venture, we generated over $900,000 in net revenue for our utility enterprise fund, resulting in an impressive 800 percent return on investment. This achievement is not a result of magic bullets but rather American innovation and common sense. The revenue generated from this project significantly reduces the financial impact on our tax and ratepayers.

Furthermore, by creatively repurposing our dilapidated maintenance building and leasing it to Makersmith, we have transformed an underperforming asset into a community workshop and manufacturing center of excellence. This renovation project not only adds value to our town but also connects the facility to our water and sewer system, making it a rate payer.

While it is essential to consider diverse funding sources, we must refute the argument that consistently burdening ratepayers is the only viable option. I have always emphasized the importance of shared responsibility and exploring alternative funding approaches for our utility infrastructure investments.

Recognizing the critical nature of water and sewer services, we understand that uninterrupted delivery of clean water and efficient sewage treatment is essential for public health and safety. Disruptions to these services can cause inconvenience, health emergencies, or even disasters. Therefore, we must explore alternative funding sources to ensure the reliability and sustainability of our utility infrastructure.

In line with this, I have encouraged and advanced various alternatives for Purcellville, recognizing that not all towns possess significant municipal-owned assets. These alternatives include:

Actively seeking grants and federal programs designed to support infrastructure investments. Despite claims that Purcellville’s affluence disqualifies us from receiving grants, we have successfully secured funding for numerous road projects and received over $10.5 million in ARPA funds.

Collaborating with private entities through public-private partnerships (PPPs). This approach allows for cost-sharing, innovative financing models, and expertise from the private sector, reducing the strain on ratepayers while ensuring high-quality utility services. Our management agreements with Bush Tabernacle and Fireman’s Field demonstrate successful collaborations while retaining ownership of these historic assets. Additionally, we have lowered operational costs by utilizing county services for tax billing and collection.

Leveraging underutilized assets through creative solutions such as selling or leasing unused properties or exploring public-private joint ventures. The examples of the nutrient credit bank and the makerspace demonstrate how we have extracted value from our underutilized assets while retaining ownership of the land. These initiatives provide additional funding streams without solely relying on ratepayers’ contributions. It is important to note that claims of indiscriminate asset selling are unfounded, as the sale of the former Mary’s House of Hope was the only instance of an outright sale for asset monetization under my leadership, and it was done in collaboration with a nonprofit management entity.

It is crucial to understand that exploring alternative funding options does not equate to neglecting critical infrastructure. On the contrary, shared responsibility among various stakeholders is a hallmark of effective governance. Utility infrastructure investments should be viewed as long-term commitments that benefit the entire community.

In conclusion, the argument that towns should solely rely on ratepayers to fund utility infrastructure projects oversimplifies the issue and ignores the potential for alternative funding sources. 

Recognizing the essential nature of water and sewer services, it is imperative for town governments to adopt a comprehensive approach that balances financial prudence with community responsibility.

By actively exploring diverse funding options, such as grants, public-private partnerships, and asset monetization, towns can share the burden of infrastructure investment while ensuring the long-term viability of their utility systems. It is through shared responsibility and forward-thinking strategies that communities can thrive without compromising essential services or excessively burdening ratepayers.

As we move forward, let us embrace a collaborative mindset and continue to seek innovative and sustainable funding solutions for our utility infrastructure. By doing so, we can ensure the continued provision of reliable and resilient utility services for the betterment of our community.