Funding

Many small towns and districts pay for water and sewer projects with state and federal grants and low-interest loans. Getting that money takes more than a form. Funders want an engineering report, a cost estimate and a project that fits their rules. MES is a civil engineering firm, so we prepare the engineering and the application together. Then we design what the money pays for.

We helped the Town of Hayden, Colorado secure over $10 million in grant funding.

Programs we work with

Texas Water Development Board

The Texas Water Development Board (TWDB) runs the state's main water and sewer funding programs.

Clean Water State Revolving Fund (CWSRF): below-market loans for wastewater, reuse and stormwater projects.
Drinking Water State Revolving Fund (DWSRF): loans for drinking water plants, wells, storage and lines. Both funds offer principal forgiveness, which works like a grant, to disadvantaged communities and very small systems.
Economically Distressed Areas Program (EDAP): grant and loan money for water and sewer service where incomes are low and service falls short of state standards.
State Water Implementation Fund for Texas (SWIFT): low-interest and deferred financing for projects in the state water plan.
Texas Water Fund: created by voters in 2023, it sends state money through TWDB programs. In 2025 voters approved Proposition 4, which dedicates part of state sales tax revenue to the fund.

Colorado

Colorado has two state revolving funds: the Water Pollution Control Revolving Fund and the Drinking Water Revolving Fund. CDPHE's Water Quality Control Division, DOLA's Division of Local Government and the Colorado Water Resources and Power Development Authority run them together. A project must be on the eligibility list before it can borrow. Disadvantaged communities can get planning grants, design and engineering grants and lower interest rates. Read our notes on the Colorado SRF process.

DOLA's Energy and Mineral Impact Assistance Fund also makes grants to local governments affected by energy and mineral development. Water and sewer projects are among the work it funds.

USDA Rural Development

The Water and Waste Disposal Loan and Grant Program serves rural areas and towns of 10,000 people or fewer. It makes long-term, low-interest loans to local governments, nonprofits and tribes. When funds allow, USDA can add a grant to keep user rates reasonable.

What MES prepares

Preliminary engineering reports and engineering feasibility reports, sealed by a licensed professional engineer
TWDB Project Information Forms, and Colorado SRF eligibility surveys, pre-qualification forms and Project Needs Assessments
Cost estimates and a comparison of alternatives
Checks against each program's disadvantaged community rules
Environmental information for the funder's review
Rate studies and capital improvement plans that match projects to funding sources
Design, bidding and construction administration once the money is committed

How the process goes

Talk through the project. We look at the need, the timeline and your community's size and income. Then we list the programs that fit.
Get on the list. The state revolving funds build their project lists once a year. In Texas that starts with a TWDB Project Information Form. In Colorado it starts with the CDPHE eligibility survey and a pre-qualification form.
Write the engineering report. The report sets the scope, compares alternatives and prices the work. Funders review it before they commit money.
Apply. We put the application package together and answer the funder's questions.
Design and build. We design the project the report described, so the plans match what was funded.

Common questions

Which program fits our project?

It depends on your state, the type of project, your population and your median household income. Some projects combine two sources, such as a state loan and a grant. We review your project and tell you which programs fit before you start an application.

Do we need an engineering report before we apply?

Usually, yes. USDA Rural Development requires a preliminary engineering report with a water and waste application. TWDB requires an engineering feasibility report when design or construction money will be released at loan closing. In Colorado, CDPHE must approve a Project Needs Assessment before it accepts an SRF loan application.

Can a small town get grants instead of loans?

Often part of the money can be a grant. The Texas state revolving funds offer principal forgiveness to disadvantaged communities and very small systems. EDAP pairs grant and loan money. USDA can add a grant to a loan. Colorado offers planning and design grants to disadvantaged communities. How much is grant depends on each program's rules and your community's income.

Have a water or sewer project coming up? Talk to an engineer or call (214) 833-6748.