Where: Florissant, Colorado
Problem: Water and sanitation district needed funds to cover operating and maintenance expenses.
Solution: RCAC provided a $100,905 loan to the district.

The Florissant Water and Sanitation District (FWSD) provides water and sanitary sewer service to the community, which includes 89 homes and businesses. Recently FWSD faced severe financial problems, and its aging system needed substantial repairs. The district had limited cash on hand and many past due bills. Although the Colorado Water Resources and Power Development Authority had awarded grant funding to the district for system upgrades, they were unwilling to issue the grant funds because of the district’s financial situation.

In an effort to meet its obligations, FWSD levied a special tax assessment on property owners it serves, and further rate hikes appeared necessary to complete upgrades to the aging system. The situation was so bad that the Teller County Board of Commissioners replaced all of the district’s board members with a new five-person board.

The new district board requested a loan from RCAC to cover past-due accounts and create an operating reserve account. The board chose RCAC’s loan fund because of its favorable terms and rates. Other lenders were only willing to provide a 10 year loan term, which would have resulted in a very substantial rate increase.

According to the 2010 U.S. Census, Florissant, a census designated place with a population of 104, has a median household income (MHI) of $24,821 and significant rate increases would create financial hardship to customers. With RCAC’s 20-year loan term, customers will not have to pay such high rate increases.

Because FWSD improved its financial position the state was willing to issue the grant funds, which will help the district make the system upgrades that are needed to provide safe drinking water and sewer service to the community.