Nassau County's Planned Sewer Privatization Nixed

Long Island Business News, via nc links:

Nassau County Executive Ed Mangano proposed the sewer privatization plan earlier this year, choosing United Water on May 3 to operate and upgrade the system. An investor would first be needed to provide the county with the upfront costs of selling the system, profiting from revenue generated from United Water. Mangano stated at the time that such revenue would remain flat for the first year and not increase above the rate of inflation for all subsequent years.
no post But NIFA members disputed that claim.
“Potential financial investors who invest money to a public-private partnership expect annual returns of 10 to 15 percent,” NIFA Board Member George Marlin said. “To suggest that a private operator will achieve enough efficiencies to cover most of that cost, and that assessment or user fees will increase no more than the rate of inflation – well, anyone who believes that, I have a coliseum in Hempstead I would like to sell them.”

I doubt the 10 to 15% return, but I agree that keeping fee increases at the rate of inflation is doubtful.  Privatizing public infrastructure only benefits the people who buy it.  Everybody else gets screwed.  As for the savings from privatization, workers get less pay, and rich investors pocket the difference.  It is a long term con.  The only reason these deals go through is because short-sighted citizens won't go along with tax or fee increases to improve infrastructure, so the politicians get some up front money, and then people still get said increases.