USDA Rural Development Awards Funding for Wastewater Treatment Plant

Colorado Rural Development State Director Jim Isgar will be in Salida September 9 to award the City with a $14,719,000 loan and grant combination for their wastewater treatment plant.  “This system will provide a long term solution for both Poncha Springs and Salida and allow the two communities to create a more economical and efficient system,” said Isgar. 

The funding is being provided through the Water and Waste Water Program which provides loans, grants and loan guarantees for drinking water, sanitary sewer, solid waste and storm drainage facilities in rural areas and cities and towns of 10,000 or less. Public bodies, non-profit organizations and recognized Indian tribes may qualify for assistance.  “Rural areas are often faced with a variety of problems associated with water infrastructure and finding funding for the improvements.  USDA Rural Development is proud to be able to offer this type of economic assistance to these rural communities which will improve the quality of life of rural residents,” said Isgar.

Salida must resolve regulatory violations to avoid financial penalties and adverse environmental effects on the Arkansas River where the effluent is discharged. Built in 1956 and renovated in 1985, the Salida wastewater treatment plant was not designed to meet current regulatory standards. “This project is important for users of the plant and downstream users of the Arkansas River,” stated Jack Lewis, Salida City Administrator. “The USDA director and staff members have been flexible and responsive throughout the application process. The grant and low rate of interest on the loan make the project affordable for this small community and provide a direct benefit to rate payers.”

Rural Development provides financing to foster growth in homeownership, business development, and critical community and technology infrastructure. Further information on rural programs is available at any of Colorado’s six local USDA Rural Development offices or by visiting the web site at