Donations and public contributions - Local and foreign donors may sometimes donate a capital item or money to be used specifically for the purchase of a capital item, in a disadvantaged area. They may want publicity for their donation, which the municipality can arrange to acknowledge their sponsorship.
Public/Private Partnerships - Capital costs can be paid for by means of partnerships between the private sector and the municipality. In most cases the private sector partner will have a profit motive in the services and capital being financed, so the terms and conditions must be carefully defined, to protect the community's interests.