Piedmont, AL – The Fords Valley & Hwy 278 Water Cooperative, serving communities between Gadsden and Piedmont, Alabama, faced significant operational and financial challenges in 2015. The system, like many rural utilities, struggled with financial mismanagement, water loss, and lack of stability. However, through collaboration with Communities Unlimited (CU), the cooperative has seen substantial progress over the past decade.
CU’s involvement with the cooperative began when Felix Firestone, a board member at the time, received a recommendation to reach out to Dinah Foreman, CU’s Alabama State Coordinator. The cooperative was dealing with internal theft, with a forensic audit later revealing $156,000 in missing funds. Despite these setbacks, CU’s support helped the cooperative navigate a difficult period.
Foreman’s first action was conducting a Technical, Managerial, and Financial (TMF) assessment, which identified key areas for improvement in governance, financial management, and technical capacity. CU worked with the cooperative’s leadership team to implement better financial procedures, improve board training, and support the approval of a rate increase in 2018, which contributed to stabilizing the cooperative’s finances.
At the time, the cooperative was facing a water loss of 2 to 5 million gallons per month. Under CU’s guidance, the cooperative took steps to reduce this loss, and it now operates with water loss under a million gallons per month, which has helped reduce costs.
CU also introduced the Check-Up Program for Small Systems (CUPSS) Asset Management Program, which helped the cooperative better manage its assets and plan for long-term maintenance. In 2020, CU assisted with a Geographic Information Systems (GIS) mapping project, improving the cooperative’s ability to manage its water distribution system.
By 2021, the cooperative needed to find a second water source to reduce its reliance on purchased water. CU connected the cooperative with a geologist from the Geological Survey of Alabama, which led to the drilling of a test well that yielded a flow rate of 400 gallons per minute. Although initial funding attempts were unsuccessful, the cooperative was able to use its reserves to fund the drilling of the well.
In June 2023, the cooperative secured over $3.5 million in funding through the American Rescue Plan Act (ARPA) and State Revolving Fund (SRF) to further develop the new well, which has a capacity of 500 gallons per minute. The well is seen as an important step in reducing costs and ensuring the long-term stability of the cooperative.
Currently, the Fords Valley & Hwy 278 Water Cooperative serves more than 4,600 people and continues to improve its operations. The cooperative has successfully paid off its debt and remains financially stable, which has allowed it to focus on future improvements.
The partnership between CU and the cooperative has been an integral part of this progress. Foreman has played a role in guiding the cooperative through several challenges, providing technical assistance and support along the way.
The cooperative’s experience highlights the potential for rural utilities to overcome significant challenges and work toward long-term sustainability. With ongoing improvements and a new water source in place, the Fords Valley & Hwy 278 Water Cooperative is taking steps toward maintaining reliable service for its communities in the future.
