How would we pay for purchasing and running the water company?

A:

The initial purchase would be funded by revenue bonds. Repayment of the bond debt would be covered by charges on the monthly water bill.  The cost of running the water system would be built into the water rates and service fees, just as we see on our current water bills. The money could not be used for any other purpose (schools, etc.).  The city’s capacity to borrow would not be affected.