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. Stratus Consulting Existing Funding Sources Improvement District, General Improvement District, Special Improvement District, Authority, and Power or Water Authority. This is not a full list of the entities covered, but the document does not cover water conservancy districts or a number -of other special-purposed districts or authorities. The idea is that if a governmental entity can be formed where that entity is subject to the same requirements for public meetings, budgeting, and other requirements that governmental entities are held to, then the private nonprofit will give up some control but gain access to more types of funding sources. Many of the funding providers and technical assistance providers in Colorado at least mention to PNPWSs that forming a governmental entity is a possibility to consider, 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 counties in Colorado encourage physical interconnection and or merging with existing systems as a policy. Others have a policy to strongly suggest that systems consider becoming governmental entities. Some private systems are resistant to giving up control oftheir systems or their water rights, and will continue to refuse the notion of forming a governmental entity. And while some counties actively encourage new systems to be annexed or interconnect, other counties are not so active in shaping new development. So, although the idea of becoming or joining governmental entities will continue to be an influence on the number of existing and new PNPWSs, it does not appear that it will either stop the growth of new PNPWSs or greatly change the current number of PNPWSs. 3.3.2 What about requiring TMF capacity development as a condition for funding? Section 2.4 detailed some of the concerns with the long-term sustainability ofPNPWSs. One of the approaches to funding that holds some promise to also help water systems learn how to become more stable in the long-term is to require that water systems demonstrate or gain TMF capacity as a condition of the loan. This approach is taken with SDWRF, and there is a list of TMF questions developed by CDPHE and approved by EP A that will allow a system to demonstrate TMF capacity or agree to gain capacity in any deficient areas as a condition of the loan. This approach may be a tool to help lessen some of the risk associated with loaning to PNPWSs. A variety of technical assistance providers in the state can help with achieving TMF capacity. RCAC, Colorado Rural Water, DOLA, CDPHE, and other organizations provide technical assistance designed to help systems gain capabilities. CDPHE has a capacity development Page 3-6 SCll199