Small water utilities face increased costs of providing
clean water because of regulation, urbanization,
and customer demands. As the need for water financing
increases, so does the competition for available capital.
Many managers turn first to the Drinking Water State
Revolving Fund (DWSRF), which is the largest government
environmental infrastructure loan program available.
However, a number of other low-cost loans and
grants are available to small water systems that offer a
viable funding alternative to the DWSRF.
The author identifies several funding alternatives
available through entities such as the Rural Business
Cooperative Service, the Rural Utilities Service, and
Community Development Block Grant Programs.
The author also explains that knowledge of the utility's
financial health is important and describes how
to track basic financial ratios, which can indicate the
current financial shape of the utility and help establish
the steps needed to build a strong foundation for
the future.