why is investing in new infrastructure a better plan than patching up old?

When I shop secondhand, I find that old stuff is crafted with higher quality than new stuff. So, why do you think that it’s better to spend our increasing rates on new infrastructure instead of patching up the old stuff?

Thank you for this thoughtful question. I agree with your observation that older things are sometimes better made than newer ones. Just because something is old doesn’t mean it should automatically be replaced. The same is true of our water and sewer infrastructure.

The real question is whether the existing infrastructure remains reliable, how much longer it can reasonably serve the community, and whether repairing it makes better financial sense than replacing it.

Understanding our aging infrastructure

Humboldt Community Services District (HCSD) maintains approximately 114 miles of water mains and 73 miles of sewer mains. Much of this infrastructure was installed decades ago, using materials and technology that have since improved.

Our general manager, Terrence Williams, reported in 2024 that water-main breaks had generally increased, with many failures involving aging asbestos-cement pipes.

Between 2015 and 2023, HCSD experienced 124 water-main breaks, averaging approximately 14 annually. A major North American study reported an average of approximately 11 breaks annually per 100 miles of pipe. HCSD’s historical figures are in that general range, although the comparison is not exact and some recent years have been worse.

Does that mean we should be satisfied? Absolutely not. We shouldn’t strive to be average. We should strive to do the best we can with the resources available.

Repair what we can. Replace what we must.

If a section of pipe can be repaired economically and reliably, repairing it may be the right decision. But when aging infrastructure repeatedly fails, requires costly emergency repairs, or threatens reliable service, replacement becomes necessary.

That’s why we need a carefully prioritized, long-term Capital Improvement Plan based on the condition of our infrastructure, its repair history, the consequences of failure, and the comparative costs of repair and replacement.

But identifying what needs to be done is only half the responsibility.

The bigger question is how we pay for it.

HCSD’s adopted five-year Capital Improvement Plan for 2025 through 2030 totals approximately $42.2 million, averaging about $8.4 million annually.

The 2023 rate plan authorized substantial increases over five years, which I have described as approximately an 88% cumulative increase in combined water and sewer rates.

I opposed advancing that plan because I believed we needed a more thorough examination of how to finance these improvements without placing such a substantial burden on current ratepayers.

When the rate study consultant presented the proposed plan in March 2023, I asked the Board to take additional time to examine the underlying assumptions and consider alternatives, particularly long-term, low-interest financing, grants, and the timing of capital projects.

Instead, the Board voted 3–2 on March 28 to accept the draft study and begin the formal rate-setting process. I voted no. The final rates were adopted later that year.

My concern wasn’t that we shouldn’t maintain our infrastructure. It was that we should fully understand the financial alternatives before committing ratepayers to such substantial increases.

Think about buying a house.

Very few families can pay cash for a home. Instead, they obtain a mortgage and spread the cost over many years.

Water and sewer infrastructure is similar. A properly installed water main may serve the community for 50 to 70 years or longer.

Why should today’s ratepayers bear so much of the cost of infrastructure that future generations will also use?

Long-term financing can distribute those costs over more of the useful life of the improvements. It may also allow us to complete necessary projects sooner, potentially avoiding additional failures and rising construction costs.

Imagine financing appropriate portions of our five-year capital program at favorable government lending rates. We could potentially move needed improvements forward while spreading their cost over many years rather than relying so heavily on current revenues.

Of course, borrowing involves interest and repayment obligations. It isn’t automatically the best approach. But neither is paying cash for everything.

We should compare the alternatives, including borrowing costs, grants, reserves, project priorities, construction inflation, and the actual impact on monthly customer bills.

We owe that analysis to our ratepayers.

I’m particularly concerned about seniors, people on fixed incomes, working families, and small businesses who cannot easily absorb substantial increases in their water and sewer bills.

The good news is that HCSD’s upcoming rate study includes an examination of financing alternatives, including government loans, bonds, and combinations of long-term financing and current revenues. I believe that is an important part of making informed decisions.

So, to answer your original question:

I don’t believe new infrastructure is automatically better than old infrastructure.

We should preserve what still works, repair what makes economic sense to repair, and replace what genuinely needs replacing.

But we must also determine how to finance those improvements responsibly and fairly.

Reliable infrastructure and affordable rates should not be competing goals. We need to work toward both.

That has been my position, and it remains my position today.

My commitment to ratepayers

I have always been available to HCSD ratepayers, and I always will be. Public service means listening, answering questions, and being accountable to the people we represent.

That’s why I publish my personal telephone number and email address. Whether you agree with me or disagree with me, I welcome the opportunity to talk directly.

My door has always been open, and it always will be.

Gregg Gardiner HCSD Board of Directors

Phone: 707-834-9595 Email: gregg@101things.com Website: gardiner101.com

Thank you again for asking such an important question and giving me the opportunity to explain my position.

Hello Curious,

Thank you for being an engaged citizen and striving to be an educated voter. My philosophy on when to repair or replace infrastructure: It depends on the specific piece of infrastructure, the condition it is in and whether it is more cost effective to replace or repair. There are also environmental and safety standards to consider as some older materials leach contaminants or are not seismically safe. Since I have been on the board, the district has rehabilitated two large water tanks, refurbished pumps and motors, and nearly completed the steel main replacement project. Asbestos Clay Pipes can be refurbished or replaced, again depending on the results from inspection regarding condition. One major upgrade was the replacement of the 40-year-old electronic infrastructure monitoring system; The new advanced SCADA system detects real time problems and allows staff to respond quickly. When I took a tour of the district in 2023, I was impressed by the effort and pride staff invest to keep the system functioning.

Deferred Maintenance:

Imagine my shock as a newly elected board member upon learning HCSD has 30 years of deferred maintenance to correct. There were 140 main breaks between 01/01/2015 -12/31/2024. An August 2024 main break cost approximately $25,000 in pavement repair in addition to staff time and materials. Increased frequency of main breaks, service disruptions, and unaccounted water loss are indicators of a system in decline. I am curious how HCSD amassed decades of deferred maintenance.

*I used data from the08/13/2024 board agenda & re-read subsequent 2024 agendas to get a 10-year snapshot. You can view the excel chart I posted to Facebook 10/04/2026. Also seep.9 &10 ~https://humboldtcsd.org/documents/1830/Agenda_Packet_August_13_2024-a_0.pdf

Fiscal Responsibility:

On June 17, 2026, all five district directors attended a Required SB 827 Fiscal & Financial Training Webinar presented by the California Special District Association.Led by an expert in local government finances, we learned about ‘budgeting, financial reporting, capital financing, debt management, and ethical stewardship of public resources.’ The information presented confirmed that HCSD is managing its finances in an efficient responsible manner. The other take home message is how to pay for things. Resident’s rates should pay for routine maintenance, repairs, and upgrades. Loans should only be used for large infrastructure investments. For example, replacing the wastewater treatment plant when it is beyond its useful life.  HCSD and the City of Eureka share theuse and cost of the wastewater treatment facility. In my modest household, we use monthly income to purchase necessities and only take out loans for large purchases like a vehicle or major home improvement.

Prior to hiring the new General Manager in 2020, Humboldt Community Services District did not pursue grant funding. Our GM is working hard to secure grant funding which pays for upgrades that benefit us all. The savings were passed on to you with a lower than projected rate increase in 2025.

Rates and Rate Increases:

Like your household, public agencies need to make difficult decisions that are not taken lightly and are not popular. This is why I do the research and strive to find facts. Here are some pieces of the puzzle. When the Samoa Pulp Mill was operating, water rates were heavily subsidized. Ratepayers told me that theyexperiencedsticker shock as rates rose closer to the true cost of maintaining the system.

Taking out loans to address deferred routine maintenance adds more hidden costs to the budget. Loans put the cost of past deferred maintenance on young families, single parent households, and future ratepayers.

The 2026 Humboldt County Civil Grand Jury did a deep dive into water and sewer rates. The impartial group of local citizens concluded that deferred maintenance multiplies operating costs and leads to to an expensive cycle of never-ending emergency repairs that put upgrades further behind schedule. They concluded that rates need to increase to keep water flowing and toilets flushing.

You can read the short version at https://www.northcoastjournal.com/news-2/news/reports-from-the-grand-jury/

The full report is available at https://humboldtgov.org/DocumentCenter/View/153665/Flowing-Forward—-Funding-the-Future-of-Water-and-Sewer-Systemsswer 

Humboldt Community Services District does not operate in a bubble. There has not been significant federal investment in rural infrastructure since Obama’s 2009 American Recovery and Reinvestment Act. Rural water and wastewater infrastructure is spread out. There are fewer ratepayers per mile paying to support the system vs if we lived in a city. This is the cost ofhaving more elbow room and living with less crowding and traffic.

Currently, our entire country is having an affordability crisis due to tariffs and high gas prices from an unauthorized war in Iran. Health insurance costs have skyrocketed, as have homeowner’s and auto insurance rates due to deregulation and the dismantling of consumer protections. Bad federal policies hurt us all, especially seniors and low-income people. I didn’t vote for the current federal administration because I knew it would hurt vulnerable people. My friend’s lifesaving EpiPen is no longer covered by medicare and a permanently disabled friend’s SNAP benefits don’t go as far as they used to.

My Work on Your Behalf:

Fairness. I voted NO on baseless claims for “special treatment” as ratepayers shouldn’t pay for other people’s projects. I voted NO on a request for a six-figure refund due to a 2.5 year multi-million gallon water leak. Staff documented the districts phone calls, emails, and site visits to address the issue. You, the ratepayer, should not pay for waste and negligence.

I updated the leak credit policy to prevent abuse from water wasters. I did most the research with help from Director Hanson and it passed unanimously. It added flexibility for homeowners (up to two months credit). I added a $1000 dollar credit limit because there was no limit before. The leak credit policy has saved you money.

Seeking Solutions. This fall, I advocated for SB1125, a CA bill that would have created a statewide Water Rate Assistance Program for low-income households. I contacted local representatives Chris Rogers, Damon Connolly, Mike McGuire, and Jared Huffman. I contacted the author of SB1125, Democratic Senator Caroline Menjivar, to thank her for her work. I contacted Governor Newsom’s office, urging him to sign the bill and rallied friends & community members to do the same. It was vetoed on 09/30/2026. I was cautiously optimistic this would fill the gap left when the Federal LIHWAP program ended in 2024.

Humboldt County has an 18% poverty rate. A conservative estimate indicates that 1500 of the 8000 households in the HCSD service area live at or below the federal poverty level even though the overall median income of HCSD is higher than the city of Eureka. It would cost $150,000 per year to provide each low-income household an annual $100 credit. CA Proposition 218 has specific guidelines that state ratepayers cannot subsidize other ratepayers, so it is not legal to create a program like the PG&E Care Program. PG&E has shareholders, HCSD & local utilities do not.

Using my smarts: I have a Bachelor’s of Science in Environmental Planning. Research, policy, and data are my strengths. I have invested a great deal of time doing research including reading every board agenda, reading original source material, learning from professionals, and listening to your stories. I do my own work so I can synthesize the information and have a deep view on things.

What I plan to do:

Continue to stand up for fairness. Continue advocating for more state & federal bills to help rate payers and rural water districts. Continue seeking solutions for low-income ratepayers. Continue Making decisions based on data and facts. I will keep doing the reading & research like I have since day one. I will be vulnerable and have difficult conversations. I will be brave in the face of challenges because catching up on decades of deferred maintenance is no small feat.

PS ~I am glad we have something in common. I am quite fond of my hand me downs and estate sale finds. I have thrift store Japanese stoneware, moving sale vintage Pyrex dishware, and a collection of vinyl records including a few 1910’s Edison Blue Amberol cylinder records.

Thank you for reading and examining the complexity of the issue with me. 

Julie Ryan

707-273-1314

julie4hcsd@gmail.com

https://julieryan4hcsd.com

https://www.facebook.com/JulieRyan4HCSD/

“Julie is someone who handles difficult things in a way that is real and not performative & she is doing the task moving the bureaucratic mountains.” - Allison Edrington, Humboldt County Democratic Central Committee

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