By: Katya Spear, Managing Director • Mayors Innovation Project
This Summer, the Mayors Innovation Project and the Water Center at Penn hosted a webinar featuring Mayor Danene Sorace of Lancaster, Pennsylvania, who offered a unique perspective on managing water affordability from the top. As the head of a city that owns and operates its water utility, she detailed the complex balancing act of providing safe, affordable water while managing multiple revenue streams, regulatory changes, and the financial well-being of residents.
Key Themes
The webinar notes reveal several key themes that framed the mayor’s discussion:
- The “Perfect Storm” of Financial Burdens: Mayor Sorace highlighted the simultaneous pressures of required capital improvements, needed infrastructure upgrades, and rapid regulatory changes, such as the EPA’s Lead and Copper Rule and new PFAS regulations. These factors create a difficult financial landscape for municipalities.
- The Unavoidable Connection Between Affordability and Equity: A central theme was that the cost of water disproportionately affects low-income households. The city’s data analysis clearly demonstrated that the most financially burdened customers reside within the city.
- The Need for Data-Driven Advocacy: The mayor emphasized that data is the key to creating transparency and justifying solutions. By using a specialized tool, the city was able to show the devastating impact that rate increases would have on residents.
- Proactive Planning for the Future: Mayor Sorace underscored the importance of forward-thinking strategies, such as the transition to a “Home Rule” charter to protect against the privatization of the water system and developing a playbook to help the next mayoral administration navigate the complexities of water management.
Speaker Remarks and Insights
Mayor Sorace’s remarks provided a clear look into the challenges and strategies of a city leader.
- On the tool and transparency: Mayor Sorace used a specific tool to project the financial impact of needed repairs and regulatory changes. The tool showed that without intervention, water rates would double, making water unaffordable for 43% of households. She noted that this kind of data provides a “wider lens to approach affordability,” framing the conversation around equity, health, and timing. The goal is to provide “no surprises” for residents, showing them where money is going and why.
- On federal regulations: A major concern was that EPA cost estimates for new regulations were “far under” what they have been shown to be in practice, disproportionately affecting smaller public systems. Mayor Sorace also expressed frustration with new budget proposals, like the dramatic reduction in state revolving loan funds for clean water, which local governments rely on.
- On privatization: Mayor Sorace spoke passionately about the threat of privatization. She noted that Act 12 in Pennsylvania incentivizes municipalities to sell their water systems, often resulting in massive rate hikes for residents within a few years. To combat this, Lancaster adopted a Home Rule charter in November 2024 with a key caveat: any sale of a city asset, including the water utility, now requires a public referendum, ensuring residents have a say.
- On legacy: The mayor’s final remarks highlighted the importance of setting up the next administration for success. Her team is working to create a historical “playbook” to help the next mayor get up to speed quickly on the city’s complex water issues among other things. Mayors on the call were very interested in this forward-thinking approach to mayoral transitions; there’s no manual to help orient new mayors, and the role comes with great variability in institutional knowledge. Creating transition plans and documenting major legacy processes is critical to continuity of services.
Overall Takeaways
The webinar offered a powerful, on-the-ground look at the realities of municipal water management.
- Data is an essential tool for advocacy: Using a data-driven tool helps mayors and city officials move from simply reacting to crises to proactively planning and advocating for their residents’ financial well-being.
- Local solutions are key: National funding formulas, like using median household income, often fail to account for the unique needs of a community. Place-based solutions and the use of tools that can be tailored to local data are essential.
- Protecting public assets requires innovative legal strategies: Mayor Sorace’s use of the city charter to prevent utility privatization is a powerful example of how mayors can take proactive steps to protect residents from future financial burdens.
- Sustainable funding is critical: Federal funding priorities are never guaranteed. Local governments must prepare to fund infrastructure upgrades with revenue streams that are not dependent on the federal government.
Water is not a given: It’s a complex, capital-intensive asset that requires continuous management, constant communication to residents, financial planning, and a strong public commitment. As Mayor Sorace’s experience shows, local governments must be prepared to fight on behalf of their constituents to ensure safe, affordable water for generations to come.