ITEM 2: ADOPTION OF THE REVISIONS TO THE SMALL COMMUNITY GRANT POLICY

DISCUSSION: The SWRCB adopted a sliding scale for grant assistance on January 23, 1997, using a stepped scale based on Median Household Income (MHI). In order to address some inequities of the stepped scale, the DCWP proposes to replace the stepped scale with a straight line scale. The DCWP also proposes to allow communities with MHIs of up to $20,000 to receive up to 97-1/2 percent grant funding. The amount of grant assistance would vary along a straight line drawn from 97-1/2 percent at $20,001 to 50 percent at $31,999. The proposed formula is:

Grant Funding Factor = ($31,999-MHI)(.00003959)+0.5.

A copy of the proposed language for the change to Chapter VI of the SCG Policy is contained in Exhibit 1. (Exhibit 1 is not available electronically -- contact Eric Torguson at (916) 227-4449)

POLICY ISSUE: Should the SWRCB approve the changes to the sliding scale for determining the level of grant assistance?

FISCAL IMPACT: The change in the sliding scale from a stepped scale to a straight line scale generally increases the level of grant assistance for eligible SCG Projects.

REGIONAL BOARD IMPACT: None

STAFF RECOMMENDATION: That the SWRCB adopt a resolution approving the changes to the sliding scale for determining the level of grant assistance.

WHEREAS:

1. The original stepped scale resulted in funding inequities for communities with nearly the same Median Household Incomes; and

2. The Division of Clean Water Programs has proposed changes to the sliding scale for determining the amount of grant assistance, adopted by the State Water Resources Control Board on January 23, 1997, to eliminate the funding inequities.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board adopts the proposed changes to the Small Community Grant Policy.

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on April 30, 1997.