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Stratus Consulting Executive Summary Table 5.2. Funding programs for which PNPWSs are eligible Funding Funding program m• funding provider som•ce Limitation CDPHE Drinking Water Grant Program State Funded 2 years in 9 of existence USDA Rural Development Loan and Grants Federal Comparatively higher rates; 2-3 year average time to complete application RCAC Loan and Grants Federal Meets short-term funding gaps to 3 years; not long- term funding provider WSRA State Expires 2011; projects must clear river basin roundtable prioritization CWCB Water Project Loan Program State CWCB currently limited by statute to loaning for raw water projects Limitations on these programs lead many PNPWSs to assume that when looking for financing they must concentrate on private sources, where rates are high and interest in funding is difficult. This review shows that there is a need for a louver cost source of funding to help PNPWSs keep up with existing infrastructure and plan for the future. Several trends or approaches used in funding should be considered when assessing the need for additional access to funding for PNPWSs. Those factors include the possibility for a system to cooperate with an existing governmental entity or form its own governmental entity. Funding providers and technical assistance providers in Colorado often mention to PNPWSs the idea of forming a governmental entity, especially when looking for more funding sources. In response to demand for information on becoming a governmental entity, Colorado Rural Water hosted several workshops in 2006-2007 to help private water systems understand what is involved in becoming a public entity. Some private systems are resistant to giving up control of their systems or their water rights and will continue to refuse to form a governmental entity. And although some counties actively encourage new systems to be annexed or interconnect, other counties do not. So, while the idea of becoming or joining governmental entities will continue to be an influence on the number of existing and new PNPWSs, it will not stop the growth of new PNPWSs or greatly change the current number of PNPWSs. Another consideration is requiring that systems undergo technical, managerial, and financial (TMF) capacity development as part of the funding application process. Most PNPWSs are small water systems, and they face the same difficulties as small governmental entities. In addition to general small system concerns, those voho work with PNPWSs have identified some concerns about their ability to operate sustainably in the long-term. First, PNPWSs frequently dissolve compared to other types of systems. Second, poor financial management is common -especially Page S-4 sciii99