Revolving funds pool capital using federal, provincial or municipal funds, which can then be loaned out to finance infrastructure or other municipal projects. FCM's Green Municipal Fund is a classic example of a revolving fund; an endowment by the federal government allows FCM to offer low-interest loans and grants to municipalities for a variety of sustainable infrastructure projects. Money is repaid into the fund, and can then be loaned out again.
Any municipal infrastructure type; however, many Canadian municipal revolving funds have been used to fund building retrofit programs.
- Cash is readily available for projects, and continues to be available as long as loans are repaid.
- They fund projects that meet municipal goals (emission reductions, cost savings, efficiencies, etc.)
Barriers and challenges
- Municipalities must first come up with sufficient capital to make a revolving fund worthwhile; a challenge in smaller communities.
- There are additional costs to set up, oversee and administer the fund.
- Municipalities may not have extra funds to provide the seed capital.
Resources and notes
- Toronto, ON's Better Buildings Partnership is a city-to-business program that provides expertise, resources and financial incentives; and assistance to building owners, managers and developers to successfully implement energy efficiency measures in existing and new buildings.
- The Toronto Atmospheric Fund is an agency of the City of Toronto, established in 1991. It is a self-sustaining, revolving fund that incubates and finances innovative local solutions to accelerate GHG emission reductions.
- Edmonton, AB's $30 million Energy Management Revolving Fund finances energy retrofits of city facilities. The loans must be repaid over a period of up to eight years, with exceptions of up to 10 years, and are repaid through the energy utility savings.
- The U.S. Clean Water State Revolving Fund is administered by the Environmental Protection Agency and provides loans to construct municipal wastewater facilities and to implement source-control protection projects.