Where: Big Rock Community Services District, Hiouchi, California
Issue: The community lacked current median household income data and a recent rate study, both of which delayed funding for needed infrastructure replacement and expansion.
Outcome: Rural Community Assistance Corporation (RCAC) staff conducted and completed a median household income survey, the results of which will allow Big Rock to access grant funding, and also provided a rate analysis. The Loan Fund provided a construction loan for the project.
The Big Rock Community Services District (CSD) serves the small rural community of Hiouchi in California’s Del Norte County. The population numbers about 320 customers during the winter months each year and tens of thousands more are drawn to the local state and national parks during the tourism season. About 65 percent of the resident population is disadvantaged.
Big Rock CSD members had planned to build a new steel water tank and replace an old redwood tank in Hiouchi to meet the growing community’s needs. The project had received $2.1 million in FEMA and California State Department of Water Resources grant funds – which are set to expire in May 2019. Preliminary construction needed to be completed in summer 201 or these grants would expire and before the county’s wet season began.
An accurate MHI was needed to determine the Hiouchi’s eligibility for State Revolving Grant funding for an additional $1.1 million required to complete the project. The funder required a rate study to ensure that the CSD could fund the operations and maintenance of the new facilities with the grant.
In early 2018, Big Rock CSD asked RCAC staff to conduct a rate study and a median household income (MHI) survey. That survey demonstrated that the community is severely disadvantaged with an MHI of $33,454.
The water rate study determined that Hiouchi’s rate structure did not comply with California state law. Using interactive modeling tools, RCAC staff helped the community and Big Rock board members to select the appropriate rates for residents and businesses. The new rates are in accordance with state law, provide 100 percent funding of the CSD’s capital reserve requirements, will spread the costs of the water system equitably between the community and the parks, and will sustain the CSD’s operation for at least the next five years.
The survey results and the rate study, which demonstrated that Big Rock is a severely disadvantaged community, will allow Big Rock CSD to access about $1.1 million in state revolving grant funding.
Meanwhile, RCAC’s Loan Fund approved a $1,112,781 loan in August 2017 to help the community build a new 200,000-gallon steel water tank to replace the redwood one. The loan serves as interim financing, as well as a bridge loan, until approved the State Water Resources Control Board funds can be secured.
“Our Board of Directors and Trustees are grateful for RCAC’s concerns regarding our situation,” said Craig Bradford, Big Rock CSD President. “We have been on pins and needles, so to speak. Without SWRCB’s DWSRF grant we would have to endure a waning future. Moreover, we would not be able to supply the state and national parks with water.”
