NJ Future Redevelopment ForumMarch 1, 2013Previewing the Upcoming Report: Infrastructure Investments Necessary for Economic Success

Facing Our Future

F a c i n g O u r F u t u r e

Agenda

Facing Our Future: The Initiative

The Problem

The Issues

Section Preview: Water Infrastructure Systems

- Selected Report Information re: Needs, Funding and Recommendations

Conclusion

Contact Facing Our Future

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Facing Our Future

F a c i n g O u r F u t u r e

Facing Our Future: The Initiative

What is Facing Our Future?

- Organized, independent and nonpartisan/bipartisan effort

• Offers insight and analysis from volunteer Leadership Group of nearly two dozen former gov’t cabinet officers, senior gov’t executives and public servants

- Builds understanding about New Jersey's systemic fiscal problems

• Identifies critical infrastructure investments needed for NJ’s future economic growth

• Uses existing public information and past reports in one comprehensive place

- Fosters environment of informed public discussion – and future of NJ

- Conducted without bias, hidden agenda, partisanship or political motivation

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Facing Our Future Leadership Group

Members

Nancy BeckerWilliam H. Byrnes

Raphael “Ray” CaprioMichael Catania

Sam CraneKathy Crotty

Christopher J. DaggettHans Dekker

Robert Del TufoJohn Farmer

Caren FranziniGwendolyn HarrisMichael M. Horn

Feather O’Connor HoustounRobert Hughey

Richard F. KeeveyJack LettiereMarc Pfeiffer

Deborah T. PoritzIngrid Reed

Robert L. SmarttCharles Venti

Facing Our Future

F a c i n g O u r F u t u r e

The Problem

Absence of integrated approach

Inability to maintain current infrastructure

Failure to fund adequate investment to spur economic growth

Deterioration of primary drivers re: economic competitiveness – power, transportation and water

Projection of growing, systemic fiscal gaps at all levels of NJ gov’t

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Facing Our Future

F a c i n g O u r F u t u r e

The Issues

• Capitalize on first-hand appreciation of the daily relevance of infrastructure

- Understand what happens when deteriorated infrastructure fails

• Need tools for strategic guidance and comprehensive planning

• Reflect fiscal realities of NJ and impact of Sandy

- Focus economic resources on prioritized areas most essential for economic success

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NJ’s DRIVERS

FOR ECONOMIC SUCCESS

Facing Our Future

F a c i n g O u r F u t u r e

Report Preview: Water Infrastructure SystemsSelected Needs

Halt leakage/water loss

- 20 to 22 percent of treated water lost into the ground

- Reason: failing infrastructure and failure to invest in that infrastructure

Improve stormwater management

- NJ leads the nation in the need for stormwater management

- Support stormwater management in developed areas

Purchase additional watershed properties

- Enhances ability to remain competitive through reliable water supply

- Maximizes the natural protection of watersheds

Provide strong and transparent capital planning process and oversight

- Provides clear direction and publically available information

• Make information available to planners, businesses, potential investors and other development professionals

• Update – without further delay – New Jersey Water Supply Master Plan

- NJ’s long-term growth requires adoption

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Facing Our Future

F a c i n g O u r F u t u r e

Report Preview: Water Infrastructure SystemsSelected Funding

$36.6 billion

- most recent number available (2008)

- Funds New Jersey’s water infrastructure systems needs

• Water supply, wastewater treatment, stormwater management – viewed together

$7.96 billion in capital investments over the next 20 years

- Environmental Protection Administration (EPA) estimates

- Install/upgrade/replace New Jersey’s drinking water infrastructure

- Failure only increases the rate of water loss beyond the current 20 to 22 percent

$250 million total – at least, over next five years

- open space preservation

- protection of watershed lands

- supports stormwater management needs

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Facing Our Future

F a c i n g O u r F u t u r e

Report Preview: Water Infrastructure SystemsSelected Funding Sources

Obtain and increase funding for open space preservation

- Requires minimum of $250 million total over the next five years

Use New Jersey Environmental Infrastructure Trust

- Finance approximately $300 million in project costs each year for any of the projects that are part of the Project Priority List

- Estimated total cost of 117 projects included on the Project Priority List: $533.6 million (FY2013) 

- Combine new money and loan repayments

Use Clean Water State Revolving Fund

- Provides low-interest loans for water quality protection projects

- Use to make improvements to wastewater treatment systems, control pollution from rain water runoff, and protect sensitive water bodies and estuaries

Use Drinking Water State Revolving Fund

- Provides low-interest loans to finance improvements to drinking water systems

- Focuses on providing funds to small and disadvantaged communities and programs that encourage pollution prevention

• Provides tool for ensuring safe drinking water

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Facing Our Future

F a c i n g O u r F u t u r e

Report Preview: Water Infrastructure SystemsSelected Recommendations

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Update the New Jersey Water Supply Master Plan

Strengthen the capital planning process

- Implement revised storm water management plans and wastewater plans as currently organized by the Department of Environmental Protection (DEP) and integrate the plans with county and municipal plans

- Identify costs of implementation and how they are funded – including developer fees

Obtain and increase funding for open space preservation to protect watershed lands

Expand buy-outs of particularly vulnerable properties

- Minimize future damages

- Create natural buffer areas to protect infrastructure and developed areas

Facing Our Future

F a c i n g O u r F u t u r e

Conclusion

Facing Our Future report

- Previews Infrastructure Investments Necessary for Economic Success (release March 2013)

• Full Report: Electric Power, Transportation and Water Infrastructure Systems

- Highlights NJ’s long failure to maintain and invest adequately

- Identifies long-term infrastructure needs that drive economic competitiveness

- Includes specific recommendations on funding needs and sources

- Provides fact-based, no-blame opportunity to understand and explore relationship across areas of infrastructure investment and with economic success

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NJ’s infrastructure – a legacy from past generations – decays from delayed repairs and deferred maintenance. This was our perfect storm

before Sandy – and it remains today as we recover and rebuild.

Keys to Successful Infrastructure Investment

View comprehensively rather than as discrete,

disconnected areas

Support consistency – and prioritization – in

conjunction with long-range economic plans

Facing Our Future

F a c i n g O u r F u t u r e

Contact Facing Our Future

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Thank You

Watch for the March Release of Facing Our Future’s 2013 Report:

Infrastructure Investments Necessary for Economic Success

Facing Our Future

F a c i n g O u r F u t u r e

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