User fees and rates include the fees charged for the use of
public infrastructure or goods (e.g., toll road or bridge, water
or wastewater system). Such fees and rates are typically set to
cover a system’s operating and capital expenses each year, which
can include debt service for improvements to the system. The
revenues generated from user fees help offset operations and
maintenance costs. It is sometimes possible to use some portion
of user fee or rate revenue toward financing the costs of new
infrastructure, though doing so may require raising rates.
