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PROJ02192
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PROJ02192
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Last modified
11/19/2009 11:43:44 AM
Creation date
4/8/2008 10:17:59 AM
Metadata
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Template:
Loan Projects
Contract/PO #
07000000049
Contractor Name
Stratus Consulting, Inc.
Contract Type
Grant
Water District
0
Loan Projects - Doc Type
Report
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<br />Stratus Consulting <br /> <br />Executive Summary <br /> <br />Table 8.2. Funding programs for which PNPWSs are eligible <br /> <br />Funding <br />source <br /> <br />Funding program or funding provider <br />CDPHE Drinking Water Grant Program <br /> <br />Limitation <br /> <br />Smte <br /> <br />Funded 2 years in 9 of existence <br /> <br />USDA Rural Development Loan and Grants Federal <br /> <br />WSRA <br /> <br />Smte <br /> <br />Comparatively higher rates; 2-3 year average time <br />to complete application <br /> <br />Meets short-term funding gaps to 3 years; not long- <br />term funding provider <br /> <br />Expires 2011; projects must clear river basin <br />roundtable prioritization <br /> <br />CWCB currently limited by smtute to loaning for <br />raw water projects <br /> <br />RCAC Loan and Grants <br /> <br />Federal <br /> <br />CWCB Water Project Loan Program <br /> <br />Smte <br /> <br />Limitations on these programs lead many PNPWSs to assume that when looking for financing <br />they must concentrate on private sources, where rates are high and interest in funding is difficult. <br />This review shows that there is a need for a lower cost source of funding to help PNPWSs keep <br />up with existing infrastructure and plan for the future. <br /> <br />Several trends or approaches used in funding should be considered when assessing the need for <br />additional access to funding for PNPWSs. Those factors include the possibility for a system to <br />cooperate with an existing governmental entity or form its own governmental entity. Funding <br />providers and technical assistance providers in Colorado often mention to PNPWSs the idea of <br />forming a governmental entity, especially when looking for more funding sources. In response to <br />demand for information on becoming a governmental entity, Colorado Rural Water hosted <br />several workshops in 2006-2007 to help private water systems understand what is involved in <br />becoming a public entity. Some private systems are resistant to giving up control of their systems <br />or their water rights and will continue to refuse to form a governmental entity. And although <br />some counties actively encourage new systems to be annexed or interconnect, other counties do <br />not. So, while the idea of becoming or joining governmental entities will continue to be an <br />influence on the number of existing and new PNPWSs, it will not stop the growth of new <br />PNPWSs or greatly change the current number ofPNPWSs. <br /> <br />Page S-4 <br />SCll199 <br /> <br /> <br />Another consideration is requiring that systems undergo technical, managerial, and financial <br />(TMF) capacity development as part of the funding application process. Most PNPWSs are small <br />water systems, and they face the same difficulties as small governmental entities. In addition to <br />general small system concerns, those who work with PNPWSs have identified some concerns <br />about their ability to operate sustainably in the long-term. First, PNPWSs frequently dissolve <br />compared to other types of systems. Second, poor financial management is common - especially <br />
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