Lease of Milwaukee Water System Would Require Public Referendum
2009-06-10
Contact:
Kate Fried, Food & Water Watch (202) 683-2500
Lease of Milwaukee Water System Would Require
Public Referendum
New Analysis Released by Food & Water Watch Finds Expensive, Lengthy Political Battle for Potential Privatization
Washington, D.C.—Food & Water Watch, a national consumer advocacy organization, presented to Milwaukee Common Council legal precedence indicating that the proposed lease of Milwaukee’s water system to a private company must be subject to a city-wide referendum. According to Food & Water Watch analysis, Wisconsin state statute section 66.0817 (4) indicates that “prior to a city consummating a proposed agreement to lease a public utility it owns, the ‘proposal shall be submitted to the electors of the municipality[,]’ to be determined be a majority.” Food & Water Watch submitted this finding today in a letter to Milwaukee Common Council President Willie L. Hines.
“Food & Water Watch’s conclusions regarding the referendum requirement are based upon careful review of state law,” said Wenonah Hauter, executive director of Food & Water Watch. “Studies show that customers of privatized water systems in Wisconsin pay as much as $150 dollars more a month for service than those who receive their water from a public entity and are more likely to encounter water quality and service problems. In addition to ripping-off consumers through rate increases, it looks as though privatizing Milwaukee’s water will add to the city’s financial woes through a draining and pricey referendum process.”
In October 2008, the Milwaukee Common Council took initial steps toward leasing its Water Works as a means generating new revenue for the city. The plan would involve handing over the city’s drinking water system for 75 to 99 years in return for an upfront payment to the city, and revenue from the lease would be invested in a fund and used to address the city’s serious financial situation. In May, Food & Water Watch joined with a broad range of local groups to form Keep Our Water Public (KPOW) to stop the privatization of Milwaukee’s water system.
Click here to read the letter to Milwaukee Common Council President Willie L. Hines.
Food & Water Watch, a nonprofit consumer organization based in Washington, D.C., works to ensure clean water and safe food in the United States and around the world. We challenge the corporate control and abuse of our food and water resources by empowering people to take action and transforming the public consciousness about what we eat and drink. For more information, visit www.foodandwaterwatch.org.