Quantifying the True Value of Utility Infrastructure to the Local Economy: Economic Impact Analysis of Columbia's $750M CleanWater 2020 Program

It is generally accepted that spending money on infrastructure impacts the local economy. But a detailed analysis to specifically quantify those impacts is rarely completed. In this case study we will see how the City of Columbia's 10-year, $750M CIP CleanWater 2020 Program (CW2020) quantified those impacts to the state, and local economy. The analysis closely examined the economic benefit of the initial spending compared to the long-term benefit of preventing capacity limited areas that could hinder long-term growth. With much COVID-19 related concern about the conflicting concerns of raising rates (depressing spending power) and supporting local economies (spending on infrastructure), this case study is extremely timely. The City of Columbia was able to specifically understand the benefits created by the infrastructure investment in terms of jobs, tax base growth, and other measures. Understanding these benefits when faced with rate increases was extremely helpful for decision makers. Economic impact analysis of the CW2020 Program quantifies: 1) the short-term impacts of implementing the more than $750M worth of capital improvements and 2) the resultant long-term development impacts. Expenditure and/or employment impacts associated with project implementation and parcel development are entered into the IMPLAN® economic model to determine total impacts, inclusive of indirect supplier and induced re-spending impacts. Impacts comprise all impact types (i.e., direct, indirect, and induced) and are measured in terms of employment, income, output, etc. A job impact comparison over the full 26-year analysis period provides interesting perspective of how the CW2020 program impact extends far beyond the initial ten-year implementation costs. While implementation impacts are notable in the initial years, they are quickly eclipsed by the development construction and development business activity impacts. Summarization of all annual job-years indicates that CW2020 will facilitate more than 152,000 job-years over a 26-year period (2015-2040). This presentation will focus on why understanding economic impacts matter to a utility's leadership, show a break-down of where the jobs happen, what type of jobs are sustained, and contain clear graphics to help the audience understand the analysis process.