How Private Activity Bonds Will Work

According to a recent ITT study, there are approximately 650 potable water main breaks every day. That means there are millions of gallons of drinking water being leaked into the soil ? undermining other infrastructure and environmental stability. To make matters worse, imagine the number of sewer collection leaks that may occur ? emptying raw sewage into the environment. Over the next 20 years, the U.S. Conference of Mayors estimates that communities across the country will spend up to $4.8 trillion to upgrade, repair and replace water and wastewater systems.

Today, with municipal budgets challenged to maintain a number of local competing services, and with long-term debt becoming harder to sustain, there is a dire need to identify and initiate innovative funding mechanisms for much needed water-related capital improvements. Private Activity Bonds (PABs) and Public-Private Partnerships (P3s) fit the bill regarding the balance of financial and operational stewardship.????