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Cost and Financing

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Note: As of June 2015, information on Cost and Financing for the Pajaro River Flood Control Project is being updated. We will have up-to-date information for you soon.

Costs for the Pajaro River Flood Control Project are divided between the Counties of Santa Cruz and Monterey, the City of Watsonville, and the Town of Pajaro, who must pay 25 percent of the cost, and the federal government, which pays 75 percent of the cost. The local community is responsible for the cost of all land acquisition, easements, relocations (including bridge replacement), and rights of way. In addition, local sponsors provide 5 percent of total project costs in cash and pay for long-term operations and maintenance costs. Given the very unique and valuable 75% federal cost-share of the total project cost, a local funding mechanism will be required to fund the remaining 25% of the total project cost.

What's the Funding Status of the Project Right Now?

In order to keep maintain project momentum and complete the final project design, the local sponsors are developing strategies to increase federal funding, and to supplement insufficient federal funding with alternative funding sources. These strategies include:

  1. Efforts to Increase Federal Funding
    • Lobbying efforts (Federal request for 2010 is $5 million)
    • Trips to Washington DC
    • Letters of support
    • Pajaro River Film

  2. Efforts to Secure State Funding
    • Pursuing State Grant funding under Propositions 50, 1E, 84
      • $1.6 Million for Levee Planning, Engineering and Design (PED) and Environmental Compliance (ENV)
      • $4.6 Million for Levee Bench Excavation Construction
      • $5 Million Proposition 1E Grant "GRR Acceleration" (2009)

  3. Providing Direct Local Funding:
    • In 2007 Santa Cruz County, Monterey County, and City of Watsonville provided $200,000 each ($600,000 total) of local funding in order to complete the EIS.
    • Additional $350,000 was provided by San Cruz County Flood Control and Water Conservation District in 2008.
    • Additional $180,000 provided by City of Watsonville in 2009.
    • The local sponsors working with APV will be convening a finance committee to determine how best to raise the $23 million unfunded local share required.

The Project Schedule is Directly Linked to Project Funding

The U.S. Army Corps of Engineers (USACE) depends on federal funding to complete its work on our flood control project. When the project does not receive adequate funding, the USACE must stop work on the project until the next federal budget is passed. The project is now over seven years behind its original schedule due to inadequate federal funding.

For example: In 2007, the USACE received $1.0 million of the $1.6 million that was requested. As a result, the USACE ran out of funds in July, and was not able to complete the Environmental Impact Study/Environmental Impact Report (EIS/EIR) in January 2008, as planned. Inadequate funding continues to be a challenge. Since 2008, Federal Appropriations requests have totaled $18 million and actual Federal Funds received have totaled $2.1 (the same amount contributed by State and Local sources).