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<br />. <br /> <br />Stratus Consulting <br /> <br />Existing Funding Sources <br /> <br />five years from 2007 to 2011.2 Applications must be submitted after a proposed project is <br />identified as a priority by the river basin roundtables for the basin in which they are located, and <br />approved by the CWCB. One of the original findings of the SWSI process was that small rural <br />water suppliers needed improved access to funding sources.3 However, participation by small <br />water providers in general and private water systems in particular has been not overly apparent <br />so far in the process. Two grants have been made so far in 2007 to PNPWSs, and most of the <br />projects on priority lists from the river basins are for large regional projects, often headed by <br />established larger governmental entities. Complicating the interpretation of the lack of <br />participation so far by PNPWSs in this program is the fact that it is not clear how well the word <br />of this new grant program has reached small water providers. Depending on the projects that are <br />accomplished with the current allocation of funding and their overall effect on the water supply <br />and demand balance in the state's river basins, there is a possibility that the WSRA could be <br />extended beyond the original 5-year period with additional funding allocations. It is too early in <br />the process, however, to understand what the current round of WSRA funding will accomplish. <br /> <br />3.3 What Are the Trends in Funding? <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. Another <br />consideration is requiring that systems undergo TMF capacity development as part of the <br />funding application process. <br /> <br />3.3.1 How about encouraging private systems to form a governmental entity? <br /> <br />PNPWSs could be eligible for more funding opportunities if they either form a governmental <br />entity or allow a governmental entity to sponsor them. DOLA is a leader in explaining the <br />process for forming a governmental entity, and has produced a document titled "Districts and <br />Alternate Governmental Financing Mechanisms" as general guidance on the options available. <br />The governmental entities covered in this guidance include the Special District, including <br />Metropolitan District and Water and Sanitation District, Public Improvement District, Local <br /> <br />2. The legislature originally designed the account to draw severance tax revenue to make $10 million per year <br />available over four years from 2007 to 2010, for a toml of $40 million. The legislature recently modified the <br />funding total and amounts by year so that $42 million is available over 5 years: $10 million in 2007, $6 million <br />in 2008, $10 million in 2009, $6 million in 2010, and $10 million in 2011. <br /> <br />3. Specifically, fmding 9 from the SWSI report smtes "The abili~ of smaller, rural water providers and <br />agricultural water users to adequately address their existing and future water needs is significantly affected by <br />their fmancial capabilities." <br /> <br />Page 3-5 <br />SCl1l99 <br />