Four Corner - Texas Water Development Board

activities of the district. Drinking water quality and wastewater discharges are regulated
by the TNRCC and the U.S. Environmental Protection Agency.
In order to provide customer service and establish a system, an engineering study must be
made and accepted by funding and regulating agencies; construction plans must be
prepared, reviewed and approved by various government agencies. Seeking a loan to
finance the construction and the loan approval process takes time. Once plans are
approved and financing arranged, usually start construction as soon as possible.
9.2. REQUIREMENTS TO OBTAIN PROJECT FUNDING
There are numerous funding sources for communities seeking financial assistance
funding for the construction of water and wastewater utilities. In most financially needy
communities money to construct the water plants and pipelines, wastewater treatment
plants and sewer lines comes from loans provided by the Rural Utilities Service (RUS) or
through the Texas Water Development Board (TWDB). Of the funding available, the
RUS provides below market interest rates and grants of up to 75% for the most needy of
communities. Loan repayments and daily operational costs are then generally paid off
with revenue from utility service sales. Because the funds and customer base are so
limited, rural utilities are generally not "over-built" to accommodate future growth.
Therefore, future applicants to a rural system may have to pay his share of the cost of
enlarging or extending services.
The following table presents a listing of funding sources developed by the Texas Natural
Resource Conservation Commission (TNRCC).
Four Comers Area Water and Wastewater Facilities Planning Study
Page 9-2
FINAL REPORT
Revised 2/10/99