The water/sewer/gas/electric service you refer to is frequently supplied by a co-op, even in urban areas. I get my own electricity from a co-op. Natural gas is

The water/sewer/gas/electric service you refer to is frequently supplied by a co-op, even in urban areas. I get my own electricity from a co-op. Natural gas is provided by a private company but there are also co-ops offering it in the area. Water and sewer are traditionally handled by the city, but are funded through service fees rather than taxes—there's really no practical reason why they couldn't be provided the same way. I can see the attraction in bundling everything together in hopes of cutting down on administrative overhead, but having the same organization empowered to impose taxes and regulations also supply utility services creates a huge conflict of interest and stifles competition.