Thursday, May 25, 2006 — Clean, safe drinking water is a huge issue not only in Stanly County, but the entire state as well.

Locally, Stanly County has a wide range of water and sewer issues, ranging from contaminated wells that contain arsenic, colliform bacteria, fecal bacteria and more to failing septic tanks.

To begin addressing the multitude of needs, Stanly County commissioners have spent $14 million during the past two and a half years and formed the Stanly Water and Sewer Authority in December 2005 to improve the probability of receiving grant funding.

In March 1994, the state launched Water 2030, a study done by N.C. Rural Economic Development Center.

The study is producing extensive information on the state’s long-term water supply and public infrastructure needs while serving as an aid to decision-makers in deciding how and where to meet those needs.

The Rural Center study projected needs over the next five years at $6.85 billion and $16.63 billion by 2030.

Where To Go For Grants

Locally, Utilities Director Donna Davis and Economic Director Robert Van Geons are the two people most responsible for working the system and generating grant proposals that brings funding into the county.

The Water 2030 study lists the federal grant funders as:

• Appalachian Regional Commission - water and sewer grants at maximum of $200,000 for its service region.

• Economic Development Administration (arm of U.S. Department of Commerce) - matching grant assistance loans to economically distressed areas, primarily for projects that will create and retain private-sector jobs.

• U.S. Department of Agriculture (through Rural Utilities Service) - loans, grants, and loan guarantees for facilities in rural areas and towns of 10,000 or fewer.

The U.S. Environmental Protection Agency is the largest source of federal funds, but these funds are distributed to the states, which administer revolving loan funds.

In North Carolina, five state agencies and one nonprofit organization administer water and sewer programs:

• N.C. Department of Environment and Natural Resources, Division of Water Quality - three separate programs: the wastewater portion of the State Revolving Loan Fund, which is primarily funded by the EPA with a 20 percent match by the state; State Revolving Loan and Grant Program, funded by the state; and the State Revolving Fund, generated by interest earned on the State Revolving Loan Fund.

• N.C. Department of Environment and Natural Resources, Public Water Supply Section - administers water system programs that parallel sewer programs of Division of Water Quality.

• N.C. Department of Commerce, Division of Community Assistance - administers the small cities’ portion HUD’s Community Development Block Grants (CDBG) program. Grants awarded for water and sewer infrastructure to correct severe health or environmental problems.

• N.C. Department of Commerce, Commerce Finance Center - operates economic development portion of state’s CDBG allocation. Grants awarded for water and sewer programs intended to create jobs.

• N.C. Clean Water Management Trust Fund - created with state appropriations in 1996 and awards grants to local governments, state agencies, and conservation nonprofits to help finance projects that address water pollution problems.

• N.C. Rural Economic Development Center - administers three separate programs funded by the N.C. General Assembly.

Supplemental Grants Program helps low-wealth communities meet matching requirements for federal infrastructure.

Capacity Building Grants Program funds planning for capital improvement, often in preparation for grant or loan application.

Unsewered Communities Grants Program was created with money from the 1998 Clean Water Bonds to help communities financing their first public sewer system.

From all these sources, 69 percent of funding over the past 11 years has come from public/private market loans.

State funds accounted for 19 percent while N.C. Rural Center funds were nine percent and federal funds were three percent.

Funding For the Future

In its second report, “Trends in Water and Sewer Financing,” Water 2030 makes a number of key points that must be considered:

• U.S. EPA role in infrastructure financing is declining. Since 1990, EPA financing was limited to loans and these are being reduced.

n USDA has reduced the amount of grant funds for water and sewer improvements. USDA’s Rural Utilities Service is operating in 2006 with lowest grant funds in years and is lowering the cap it is funding on any project.

• The state has become the most important source of grant funding. Nearly 80 percent of grants are state funded. The 1998 Clean Water Bonds funded nearly half the grants over the past 11 years.

• During 11 years of study, sewer spending outpaced water investment, but this is projected to change in the coming decades.





County Water

& Sewer needs

Today: A look at funding sources for water and sewer infrastructure.

Sunday: Specific projects in the county implemented or in the planning stage.