Rural communities make up approximately 97% of U.S. land and provide essential resources, like agriculture opportunities, renewable energy and recreational areas. Rural water providers and small water and wastewater treatment plants are also critical to the communities they serve. Without a reliable water management and treatment system to provide potable water, the businesses and schools that rely on public water utilities couldn’t function, and consequently, and the towns and cities that utilize these businesses and schools wouldn’t be able to thrive or survive.
While we can’t overstate the importance of clean, accessible water, many water and wastewater utilities in these rural areas struggle to replace aging water systems and stay compliant.
According to the National Resources Defense Council, water systems that serve fewer than 3,300 people make up 80% of Safe Drinking Water Act violations. These violations rarely occur due to a lack of care from management and operators, but rather from a lack of resources, short-term financial planning and high workforce turnover.
Three Industry Challenges for Small and Rural Water Utilities
1. Lack of Resources
Lack of resources is one of the most significant problems in rural areas when it comes to operating – and paying for – water and wastewater facilities. With a smaller group of customers to draw from, the amount of operating revenue is lower. Less income gives water and wastewater management companies less capital to work with whenever they need to perform significant repairs or replace water systems.
Other resources these small utilities companies lack are access to regular training, up-to-date technology, automated systems and adequate staff members to run a small water treatment plant efficiently. Rather than improving their water delivery, most small utilities must focus just on keeping their distribution network running. The pressure of delivering the base product of clean water with a low budget and only a few staff members can put goals for improvement on hold indefinitely.
2. Financial Management and Short-Term Planning
When the budget gets tight, smarter spending can move rural water utilities toward their goals, while poor spending choices can exacerbate problems. The margin for error in budgeting is slim. Budgets with little foresight for future projects can lead to significant maintenance problems with nothing to cover the costs of an overhaul. Short-sighted financial planning can lead to borrowing money that the small water treatment plant can’t pay off.
Even with excellent financial guidance, many rural water systems are unable to improve because they have no flexibility in their rates. Some rural water utilities are strongly encouraged by community decision-makers, like city council members or mayors, to use unfavorable billing practices to keep prices artificially low.
One example of a town in North Carolina showed how easy it is for rural utilities to fall into this path. While the town’s citizens may appreciate the low bills upfront, lower water quality and price spikes for repairs are worse in the long run.
3. Workforce Shortages and Lack of Experienced Management
Financial constraints don’t just lead to a shortage of funds for repairs and maintenance, but they can also limit available pay for enough vital staff members and experienced management. Water and wastewater operators are vital to the community. Rural water utilities usually need to offer higher, competitive incentives to draw talent to their areas and prevent them from leaving for opportunities in bigger cities.
In addition, water and wastewater workforce shortages are growing across the board. Utilities will need to replace up to 3 million workers in the next decade. A smaller talent pool in rural areas compounds the industry-wide issue.
How Are Rural Water and Wastewater Management Companies Responding to These Utilities Industry Challenges?
As rural water and wastewater companies address these problems, two solutions have proven to be effective: consolidation and regionalization with other water utilities or hiring a water management and operations consultant.
1. Consolidation and Regionalization for Water Utilities
Consolidation and regionalization with other water companies is a trend that is increasingly prevalent as rural water utilities find it difficult to sustain their operations alone. Whenever these systems combine their resources, they can provide better service to their communities. However, the biggest downside to merging utilities is the city can lose control over its water system, which can create problems later on.
2. Water Management and Operations Consultants
Contracting a water and wastewater management consultant can help a small or rural community maintain control of their water system. Consultants can offer aid from a professional, technical and financial perspective. An excellent consultant can help rural communities identify pain points, map out solutions and execute a plan to reach the rural utility’s goal.
Are you looking for an excellent water and wastewater management and operations company to help your rural utility get back on track. Contact Alliance Water Resources today. Alliance brings excellent service with an expert understanding of operations problems in rural areas, plus the latest water treatment techniques and planning knowledge to set up your water utility system for long-term success.