Water and Sewer Infrastructure Projects

I had a question today regarding classification of project funding by a council member. Currently we fund sewer infrastructure through the sewer reserve. If the sewer project requires digging up and repaving a roadway to complete the sewer upgrade we currently split the project into 2 projects. 1 project for completing the sewer upgrade and another for repaving under the operating budget. I am wondering if other municipalities include the entire cost of the project under sewer reserves or if they also split the project into 2 projects. the question was raised as we will be digging up a road that is in good condition and would not require paving if the sewer project was not being completed thus they believe the cost should solely be borne to the sewer reserve fund. How do other municipalities handle paving cost associated to sewer/ water projects funded through water/sewer reserves?

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