Billy Ray Hall, president of the N.C. Rural Economic Development Center, said communities statewide face mounting pressures to provide services and protect the environment.
Without increased financing, he said, many poorer communities will be unable to make the necessary investments and will fall further behind in terms of economic and social health.
"Over the past four years, we have documented a growing need for critical investments in water, sewer and stormwater infrastructure," Hall said. "We've also shown how much can be accomplished with targeted investments from the state, especially in light of cutbacks in the federal programs that used to provide assistance."
North Carolinians previously approved $800 million in bonds for water and sewer infrastructure in 1998.
According to a Rural Center analysis, those funds financed 1,103 improvement projects in 97 counties.
Hall called for the N.C. General Assembly to pass a bill in its upcoming session that would place a new $1 billion referendum on the fall ballot for voter approval.
In addition to calling for new bonds, Hall said the state should create a permanent revenue source for water, sewer and stormwater improvements. Drinking water and clean water infrastructure are as critical as roads to the vitality of every community, he said.
"We've got a Highway Trust Fund to make sure we can drive from Manteo to Murphy and get products to markets all over the country," he said. "We need that same kind of steady, reliable funding for water and sewer so we don't have to come back every few years to ask for another bond referendum."
The bond proposal was made during a Rural Center conference reporting the results of its three-year Water 2030 Initiative.
Among findings of the initiative, the Rural Center reported that water, sewer and stormwater systems across the state will require $16.63 billion in improvements over the next 25 years to keep pace with a growing population, repair and replace old lines and equipment, and meet new environmental regulations.
"One of the most important things we can do going forward from today is work toward greater efficiencies in our existing water and sewer systems," said Jean Crews-Klein, who directed the Rural Center's initiative. "We can achieve this by reducing water loss, making sure we communicate the value of water through our rate structures, and focusing on conservation education for our elected leaders and our customers."
The conference attracted a crowd of 200, primarily individuals concerned with resource management and local development.
They heard reports on the major findings of the Water 2030 Initiative. Among them:
-- In the next five years alone, water, sewer and stormwater systems will require $6.85 billion in investments.
-- Water and sew-er systems are serving a growing proportion of the North Carolina population. Their growth rate roughly doubles that of the state as a whole.
-- Private market loans accounted for 70 percent of all financing for water and sewer improvements for the years 1995-2005, but more than 60 percent of local governments cannot qualify for loans.
-- Federal funding for infrastructure programs has declined and is expected to shrink further, particularly grant funding.
-- The state of North Carolina provided nearly 80 percent of water and sewer grants in 1995-2005. The 1998 Clean Water Bonds, which are now depleted, accounted for a significant portion of those funds.
-- Population growth is increasing pressure on the state's water resources. At the current rate of use, residential consumption is expected to increase from 244.5 billion gallons a year to 335 billion gallons by 2030.
-- Much of the state's population growth is occurring in areas with limited water resources.
In noting those growing water demands, the Rural Center recommended that the state develop both interstate and intrastate management strategies.
Although North Carolina overall is a water-rich state, Hall said, competition for resources is growing.
"We need a plan for how to allocate resources that is fair to communities now and that protects resources for the future," he said.
