How do municipalities finance water and sewage systems?
Municipalities can raise money for water and sewage systems in four different ways: • They can get money directly from water rates or other revenue sources, such as development charges; • They can retain money for longer term projects by setting aside money in reserve funds for future use; • They can borrow money when they need to make significant investments; • The federal and provincial governments may assist municipalities with grants and loans for infrastructure renewal, or • The municipality can enter into agreements with private companies to finance and manage operations.
