Paying For Water Systems

Many public water utilities struggle to pay for repairs and upgrades necessary to improve energy efficiency, reduce leaks, and prevent infiltration. This brief outlines existing mechanisms to raise these funds as well as promising new methods for public officials to consider. Some methods to increase revenue include equitably raising rates paid by customers to adjust for rising operation and management costs, expanding use of impact fees, generating surplus renewable energy, and selling fertilizer from wastewater biosolids. Water utilities can also fund projects using green revolving funds, resilience or catastrophe bonds, or through state and federal sources of subsidized grants or loans.