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Construction Funding Conditions

Water & Sewer Utility Business Plan
Prior to obligation of funding for construction, the Grantee agrees to complete a comprehensive business plan for the Project with detailed annual operating costs (including operations and maintenance, repair and short-lived replacement), annual revenues (including user fees, local subsidies, and capital contributions); and a description of the managerial structure for the utility. A business plan must be approved for each individual Village Safe Water (VSW) grant.

Business plans expire after five years. A request must be made to associate a new project number with an existing business plan. New projects must fit within the scope delineated in previously approved business plans.

The template for business plans is available for download. In addition, the evaluation checklist used for business plan review is also available. To ensure all relevant information is included in the business plan, please use the current template and the evaluation checklist.

Business Plan Template for Download (Word Document revised Jan 31, 2020) (DOCX)

Evaluation Checklist for Review of Business Plans (Updated 8/15/2017) (PDF)

View an example of a local Water and Sewer Service Ordinance (DOCX)

View List of Approved Water & Sewer Utility Business Plans (Updated 7/1/2021) (PDF)

Operations & Maintenance Best Practices
Prior to obligation of funding for construction, the Grantee must achieve a minimum total score of sixty (60) points for Operations & Maintenance Best Practices. In addition, the total score must meet the two (2) point criteria in each of the Worker’s Compensation Insurance and Payroll Liability Insurance categories. The Grantee agrees to maintain these criteria throughout the life of the Project. For additional information on the Operations & Maintenance Best Practices, current scores, categories, and scoring criteria the Grantee should contact the Department’s assigned VSW Project Engineer as shown on the signature page of this Agreement.

View more information about O & M Best Practices

Environmental Determination
Prior to obligation of funding for construction, a review and determination of environmental effects for the Project will be completed according to policies and procedures established by the federal funding source. In addition, all pre-construction environmental requirements and stipulations will be completed prior to obligation of funding for construction. Any mitigation measures identified through the environmental review will be fully implemented.

Community Resolution adopting the Approved Business Plan
Prior to obligation of funding for construction, the community must issue a resolution adopting the business plan approved by VSW as well as water usage rates and other financial data indicated in the plan. A template for community resolution is provided below.

Download Template for Community Resolution Adopting Business Plan and User Rates (9/29/2017) (Word Document)

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