Where: Armona, Kings County, CA

Issue: A small community services district needed interim financing while it awaited state funding disbursements to pay for an arsenic treatment project.

Outcome: RCAC’s Loan Fund provided a $700,000 line of credit to (CSD) to provide safe drinking water to customers.

Armona CSD is a small, unincorporated census-designated place in Kings County, California. The rural, agricultural community has a 4,156 population and a $38,622 Median Household Income. Armona CSD operates a water system that had not complied with arsenic standards since 2008. EPA issued an administrative order to compel the system to comply. As a result, Armona CSD sought and received $9,285, 866 in Prop 1 loan and grant funds from the State Water Board to correct the water system deficiencies.

However, state disbursements can often take up to 120 days to process. To make timely payments to the contractor and engineer, and keep the project on schedule, Armona CSD needed to access interim financing.

RCAC’s Loan Fund provided a $700,000 Line of Credit to Armona CSD; and State Water Board disbursements will be the repayment source. The treatment project will bring Armona CSD back into compliance, and it will once again provide safe drinking water to local residents.