Selling Milwaukee Water Works a Costly Proposition

Water users would pay at least $17 million more each year than the city would recoup from a long-term lease, according to the study by Food & Water Watch, a national non-profit resarch and advocacy group

The study assumes says the new operators would have to increase rates by more than 50% above today's prices in order to make a profit on their massive investment. Meanwhile, the city would not realize enough revenue from an endowment created by the lease payment to come anywhere close to covering the higher costs.

Privatization would me higher water bills, a loss of local control over a vital resource, and could create service concerns. "Poor performance by private operators is the number one reason why cities decide to bring previously contracted-out services in house," the report states.

See the whole report here.

See our previous Water Works story here.

See a Milwaukee Journal Sentinel story on the report here.