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<br />. Project Description <br />Rural Water Supply Planning Study <br />(1-16-07) <br /> <br />Background <br /> <br />In 2004, the CWCB delivered the Statewide Water Supply Initiative (SWSI) Report to <br />the General Assembly. One of the key findings and recoinmendations involved the need <br />for technical and financial assistance to rural areas that need water supplies. Typically, <br />these areas may be made up primarily of small non-profit water systems (NPWS' s), such <br />as homeowners associations, water user associations, or private non-profit water <br />companies that rely on domestic groundwater wells. Private NPWS's are considered <br />"public" water systems by the EP A if they serve 25 people or 15 connections daily for at <br />least 60 days of the year. Further, it is expected that the focus of this Study would be <br />those "public" systems that supply water to the same population year-round - defined by <br />EPA as a Community Water System, and those classified as Very Small Systems (serving <br />25-500 people.) <br /> <br />Because they are not governmental entities, NPWS' s currently have limited funding <br />sources for infrastructure improvements, as a number of the State and CWRPDA <br />(Colorado Water Resources & Power Development Authority) funding programs are <br />limited to municipalities or sllecial districts. CWCB is able to fund NPWS projects, but <br />only for the raw water components, no treatment or distribution facilities. In addition, <br />NPWS's may have limited planning and organization resources, and may even be <br />operated on a volunteer basis. Often, smaller water systems can benefit from TMF <br />(Technical, Managerial and Financial) Assistance. They may not be doing sufficient <br />long-range planning or assessing enough fees or revenues to pay for more significant <br />water infrastructure needs or to create reserves, and they may have difficulty qualifying <br />for loans due to [mancial qualification or collateral policies. While the State Health <br />Department (CDPHE) works most closely with small water systems, their primary focus <br />is water quality, not quantity. This Study would begin the process ofprojecting NPWS <br />needs into the future, and documenting funding and other assistance "gaps" so that <br />coordinated plans can be initiated for rural water planning efforts. <br /> <br />Overall, the Study will address the following general questions: <br /> <br />1. Need - Is there an unfilled funding need or "gap" for NPWS's, and what is the <br />nature and the magnitude of the need? <br />2. Strategy - If there is an unfilled need, should CWCBdevelop a specific marketing <br />strategy for pursuing and facilitating more loans from NPWS's? <br />3. Criteria - IfCWCB actively pursues more NPWS loans, what criteria, TMF <br />assistance, grants, etc. are needed in order for CWCB to manage the additional <br />risk to more marginal borrowers?' <br />4. Recommendations - What recOI;nmendations/revisions to plans, policies and <br />statutes are necessary? <br /> <br />January 2007 <br /> <br />