Rural Policy Initiatives

Water & Sewer Initiative

This article was posted in 2000.

Background

Nothing is more important to North Carolina's quality of life or economic well-being than a reliable supply of clean water. Unfortunately, as we grow in this state -- adding new people, industry and jobs -- we also create new threats to our water resources. Agricultural waste, residential waste, industrial discharges and construction runoff are the undesirable side effects of our economic and population growth, as is lack of reliable water sources.

To protect these resources, safeguard health, and ensure the availability of water for basic human needs and commerce, North Carolina communities began nearly 100 years ago to install public water and sewer systems in the state. Today there are over 4,000 of these systems statewide. Thousands depend on them every day to bring clean water to homes, businesses and institutions -- and to transport wastewater away and dispose of it safely.

Yet, many of North Carolina's water and sewer systems are in jeopardy. Systems are plagued with crumbling pipes, leaks, and infiltration problems. Dozens of communities, including some larger cities, are under state-imposed moratoria, bringing population and business growth to a standstill. In some cases, communities are losing industrial prospects because they lack adequate water and sewer capacity. In other cases water supplies are running dry, necessitating interconnections with water-rich communities.

Local, state and federal leaders have made valiant efforts to respond to these needs over the past decades. Yet, like most states, North Carolina has not had an effective strategy for determining where water and sewer systems are located, what condition they are in, what the needs are for the future, or how to develop and focus financial resources to repair and build needed facilities.

To lay the groundwork for effective planning, the Rural Center joined forces with the State of North Carolina and the U.S. Department of Agriculture in 1994 to launch the North Carolina Water and Sewer Initiative.

Project Overview

The Water and Sewer Initiative has been conducted in two phases, one completed in 1998 and the other currently under way.

Phase I. The purpose of phase one was to provide the state with its first comprehensive database on water and sewer systems -- so that state and local leaders would have complete, accurate information to use in shaping plans for the future. Toward this end, the Rural Center, in partnership with local officials and state engineering firms, began in 1995 to collect data on local systems. The initial data collection was completed in 1997, producing an in-depth inventory of 659 water and sewer systems in 75 North Carolina counties.

An assessment of the data revealed that North Carolina's water and sewer needs total $11.34 billion, doubling the previous estimates of need. Of the total, more than $4.3 billion in needs are in rural communities. Overall, the study showed that North Carolina has a disproportionate number of very small water systems; a significant problem with aged, deteriorating, leaking pipes; major infiltration and inflow problems in sewer systems; and a general lack of water and sewer capacity necessary for growth. The study also pointed to the limited fiscal capacity of most rural governments to pay for needed improvements. The findings of the assessment were published in 1998 in a report called Clean Water: Our Livelihood, Our Life.

Throughout 1997 and 1998, the Rural Center worked closely with North Carolina legislators and key stakeholders to convey the extent of the problems, to aid in drafting clean water bond legislation and to testify on behalf of the bond bill's passage. In 1998, the Clean Water and Natural Gas Critical Needs Bond Act was passed by North Carolina voters and provided $800 million in much-needed grant and loan monies -- the largest bond issue in the state's history.

As part of the Clean Water Bond Act, the Rural Center received $115 million to expand its water and sewer grants programs. These programs include the Supplemental Grants Program, which enables local governments and qualified non-profit corporations to improve local water and sewer systems, and the Capacity Building Grants Program, which provides funds for local governments to undertake preliminary planning work for a water or wastewater project. The bond act also included funds for an Unsewered Communities Grants Program to support the planning and construction of new central, publicly owned sewer systems.

Phase II. Phase two of the Water and Sewer Initiative began in 1999 with the planning and administration of Clean Water Bond funds. As of March 2002, the Rural Center had awarded a total of $122.7 million in bond fund grants. In addition to the initial $115 million, the Rural Center received another $125 million in bond funds, based on a reallocation of loan funds to grant monies by the General Assembly in 2000 and 2001.

Funding

Funds for the water and sewer inventory and assessment were provided by the Appalachian Regional Commission, the Division of Community Assistance in the N.C. Department of Commerce, the Economic Development Administration in the U.S. Department of Commerce, the N.C. Rural Center and several local and regional organizations. Funding for the water and sewer grants programs come from the Clean Water Bond funds and from appropriations from the General Assembly.

Next Steps

Phase II of the initiative will focus on both long- and short-term issues affecting North Carolina's supply of clean water.

Rural Center Contact

Jean Crews-Klein
Vice President for Business Development and Natural Resources
N.C. Rural Economic Development Center
4021 Carya Drive
Raleigh, NC 27610
Telephone: 919-250-4314
Fax: 919-250-4325
E-Mail: jklein@ncruralcenter.org

Click here to view the Clean Water report.

Click here to learn more about the Water & Sewer Grants Program.