Alternative delivery models are helping communities upgrade outdated water infrastructure
Many municipalities across the United States are increasingly facing a familiar scenario: Water and wastewater infrastructure is aging or inadequate, while tight budgets limit the ability to make desperately needed upgrades. Fortunately, modern financing models can provide municipalities with a much-needed lifeline, allowing them to access modern infrastructure without upfront investment.
The Infrastructure Crisis
Much of America’s water infrastructure was built decades ago, and it’s starting to show its age. Leaking pipes, failing pumps, outdated treatment systems, and undersized facilities are common challenges in small towns and large cities alike. At the same time, population growth and climate change impacts are putting added pressure on these systems.
Just because demand is increasing, it doesn’t necessarily mean that capital improvement budgets are as well. Inflation, rising construction costs, and competing priorities make it difficult for municipalities to allocate funds for large-scale infrastructure projects. As a result, many communities simply can’t afford critical upgrades.
The True Cost of Inaction
While delaying water infrastructure work due to budget constraints may seem financially responsible on the surface, it often leads to higher long-term costs. Aging systems are expensive to maintain, and patchwork repairs rarely address the root of the problem.
Mechanical failures and system inefficiencies don’t just drive up operating costs. They can result in underperformance and system failures that lead to regulatory noncompliance. This can mean fines from the U.S. Environmental Protection Agency (EPA) or state entities like the Florida Department of Environmental Protection (FDEP), especially if violations affect water quality or public health. Service interruptions, from boil-water notices to sewage overflows, not only pose a public health risk, but they can also result in a loss of public trust and potential liability risks.
There is also a cost associated with missed development opportunities due to limited infrastructure capacity. Communities that lack adequate water and wastewater facilities may have to pause or reject new developments, which, for municipalities, means lost tax revenue, missed job creation, and stunted economic growth.
How Traditional Financing Falls Short
Municipalities have traditionally relied on funding mechanisms such as bonds or state revolving funds (SRFs) to finance infrastructure improvements. But these options present challenges of their own. Bonds require voter approval, which can be politically sensitive and isn’t guaranteed. SRF programs, which require states to provide a 20% match to the federal funding they receive, are competitive and often come with lengthy application and review requirements, which can be problematic for those with limited budgets.
Even if funding is awarded, the traditional design-bid-build project cycle is time-consuming and vulnerable to delays. And in today’s economic climate, managing large capital expenditures, especially for projects with 20- or 30-year lifespans, can seem like too much financial risk with too little certainty of ability to cover additional costs — as well as operating and maintenance expenses — over the long term.
A Smarter Path Forward
Seven Seas Water Group, recognizing the stumbling blocks that municipalities face, has developed innovative financing solutions that tackle these common challenges head-on. These solutions remove the upfront cost barrier and speed up deployment, all while providing long-term value and operational support. They include:
- Water-as-a-Service® (WaaS®): Water-as-a-Service® is a turnkey model that allows municipalities to secure a fully financed and managed water or wastewater system with no capital investment. WaaS® covers everything: designing, building, and financing, as well as ongoing operation and maintenance. Municipalities make predictable monthly payments, turning a massive capital project into an affordable operating expense. This not only frees up capital for other priorities, but also transfers performance risk to a trusted partner with years of experience in water and wastewater treatment. Communities get access to the infrastructure they need with guaranteed compliance, expert system management, and peace of mind, without the financial burden or risk.
- Lease Plant Program: For communities that need rapid deployment or phased expansion, leasing treatment plants offers a flexible and cost-effective alternative. These modular systems can be delivered quickly, often in a matter of months, and can be configured to meet the current and future needs of the community. Leasing provides a lower barrier to entry than full ownership, while offering flexible terms, with the option to upgrade, extend, or purchase the system at the end of the lease term. This option is ideal for communities with urgent capacity challenges or those facing temporary bonding or budgeting constraints.
Leased systems, like this installation in a growing Texas community, can be delivered quickly to support urgent development needs without upfront capital investment.
In Montgomery County, the Lease Plant Program provided a turn-key solution — covering everything from site prep to treatment systems — delivered via a single lease arrangement, helping streamline construction and ensure water and wastewater infrastructure kept pace with rapid development.
Choosing the Right Model for Your Community
Not every solution fits every town, but alternative financing models can be tailored to match your community’s unique situation. When choosing a financing model, municipalities should consider the following points:
- Do you need long-term operational and maintenance support? Seven Seas’ WaaS® contracts come with full O&M support, while lease contracts do not include ongoing maintenance.
- Are you expanding capacity in phases and looking for a system that can scale? If you are looking at a phased installation, a lease contract may be a good option.
- Is your bonding capacity already tied up in other projects? Both WaaS® and lease contracts offer an alternative to traditional financing mechanisms, alleviating the need for upfront capital.
- Are you under pressure to act quickly, either due to development demands or system failure? With WaaS®, planning is streamlined, resulting in faster commissioning of infrastructure than with traditional financing models. Leasing modular systems offers extremely fast deployment, with systems typically being delivered within months.
If you answered yes to any of the above questions, exploring Seven Seas’ Water-as-a-Service® or Lease Plant Program could unlock the solution you’ve been waiting for.
Modernize Your Community’s Infrastructure Without Capital
Modern infrastructure doesn’t have to come with modern debt. With smart financing models, municipalities can act decisively, meet community needs, and comply with environmental and regulatory obligations, without draining their budgets.
At Seven Seas, we specialize in helping municipalities modernize water and wastewater infrastructure through flexible, finance-friendly solutions. Whether you need rapid relief or a long-term partner, we’re here to help you build better, on time and within budget.
Contact our water experts to explore financing models that can modernize your infrastructure without the wait or capital strain.
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