Where: Kiowa, Colorado
Problem: Kiowa water authorities failed to maintain financial reserves for bond funding and to pay for needed infrastructure upgrades
Solution: RCAC helped the town leaders complete a rate analysis, engineering and financial feasibility reports and apply for federal funding

For many years, the eastern plains town of Kiowa, Colo., ran its own water and wastewater systems that served households, schools, government buildings and businesses. The town received bond funding for needed upgrades to its systems but failed to maintain the debt service reserves required as a condition of that bond funding. As a result, investors took the town to court, and the court appointed a receiver to force the town to return to compliance with the bond terms.

RCAC helped the town complete a rate analysis to adjust its rates so that current and future debt service could be met, and then apply for a U.S. Department of Agriculture (USDA) Rural Development loan. The loan enabled the district to buy the water and wastewater system’s assets from the town. The town could then pay off the bond that they had taken out for improvements made to the systems a few years prior.

USDA contacted RCAC again when a new special district was formed to purchase the water and wastewater facilities from the town of Kiowa. USDA asked RCAC to complete a report on all previous engineering work on the two systems and to calculate the reserves required to pay for the replacement of short-lived assets. After completing the requested engineering and financial feasibility reports, RCAC helped the receiver finish a loan application to pay for the facilities.

USDA approved a $5.7 million loan for the new district to purchase the existing facilities and solve the town’s bond-funding woes. RCAC’s assistance helped the town resolve its past financial issues and provided a foundation that will help ensure compliance costs and future upgrades that will not burden the small town’s residents.