When a municipality sells to a private water company, the community has an immediate cash benefit, plus a new tax source is created. Public debt can be eliminated, better customer service will result and the cost of water service will be lower. Because an investor-owned water utility uses private capital to build and expand its system, there is no need to issue municipal bonds or rely on limited public capital to maintain a reliable and safe water supply. Operational costs are covered by rates or fees for service. Top of Page For more information on consolidating or privatizing your utility, contact us .
Privatization provides cash to the community.
It can turn a municipality's hidden equity into cash. This is capital that can be put to use for other beneficial community needs or that can be invested for a long-term revenue source. Private and investor-owned water companies often have better access to capital needed to construct new and improved facilities, leaving a municipality's limited capital available for other purposes. Customers of private and investor-owned water utilities receive a dependable, safe and clean supply of water. In a number of cases, private operation of an existing government operation may result in a reduction in monthly water bills.