Case Study

Nassau County Sewer and Storm Water Authority Creation

A good example of the innovative approach that PFM has taken to local public finance issues is our work helping Nassau County create a Sewer and Storm Water Authority.

By creating a quasi-autonomous, self supporting water resource agency that comprehensively plans and manages the entire water cycle, the proposed Storm and Sewer Water Authority will provide significant financial and operational advantages for Nassau County.

For example, the consolidation of many duplicative functions will create efficiency and improve operational effectiveness. And, with consistent streams of revenue instead of relying on the general tax levy, the Sewer and Storm Water Authority will be financially strong and credit worthy. Thus, it is expected that this Authority will be better rated than the County, which will allow for refunding savings. Also, the Authority will be able to restructure the County's sewer debt, most of which had been issued under the "50% rule," by issuing more level debt with a longer term that more closely matches the useful life of the assets.

It is estimated that the creation of this Authority will generate about $15 million in budgetary relief for Nassau County in 2003, and over $170 million though 2007. The savings could be even more if the Environmental Facilities Corporation (EFC) provides for acquisition financing.