Rural Texas infrastructure : assessing needs and financing capital improvements

Abstract

Rural communities play a significant role in the State of Texas economy. The economic success of these communities depends heavily on maintaining adequate public infrastructure systems. This report examines the infrastructure needs of 11 rural Texas cities to identify gaps in funding resources available through state and federal grant and loan programs for infrastructure improvements. Primary findings conclude that inadequate funding support for rural infrastructure improvements through state and federal grant and loan programs exists primarily for water and wastewater infrastructure improvements and street and sidewalk improvements. In addition, the report outlines limitations specific to rural communities in obtaining various forms of capital financing that include a limited tax base, limited access to borrowing and lack of economies of scale as well as various demographic characteristics that contribute to these limitations.