Sedley, VA: Water Distribution System Improvements
August 2024 - May 2025
Groundwater pump house in Sedley, Virginia
Community Description
The Sedley Water Company is a small, privately-owned water system in a rural area serving 526 people. There are 172 residential connections and 6 non-residential connections. The median household income is approximately $51,500.
Project Scope
The utility was referred to EPIC by the Virginia Department of Health (VDH). EPIC assisted Sedley with (1) completing a Business Operations Plan (BOP) required by VDH regulations, (2) completing current and delinquent financial audits, (3) contracting with an engineering firm to identify maintenance priorities, and (4) applying for a Drinking Water State Revolving Fund (DWSRF) loan to finance such maintenance.
Services Provided
Sedley Water Company was facing several infrastructure and operational challenges within its water system. These included leaks in the distribution network, malfunctioning water meters, and a groundwater well requiring restoration. In addition, the company needed to update its Business Operations Plan (BOP) to reflect current budgetary, infrastructure, and maintenance priorities.
In 2024, EPIC began working with Sedley Water Company to support compliance and obtain funding for system improvement efforts. EPIC engaged an accountant for $20,800 to complete four years of required financial audits and assisted Sedley in preparing and submitting its BOP. EPIC also contracted an engineering firm to develop a preliminary engineering report (PER) on Sedley’s water system improvement priorities, contributing $8,577 toward the effort. Utilizing the PER, EPIC also provided in-depth guidance to Sedley in developing its Drinking Water State Revolving Fund (DWSRF) loan application, which was submitted on May 31, 2025.
Challenges and Opportunities
| Type of Challenge | Project Experience | Outcomes and/or Opportunities |
|---|---|---|
| Labor/Workforce | Sedley Water Company is owned and operated by a single person, who became injured during the SRF application process shortly before the deadline, which nearly halted the process. EPIC provided hands-on assistance to facilitate the administrative process. | Lack of redundancy or inter-governmental staff sharing agreements can impact the proper functioning of an entire water system. Developing staff-sharing agreements in a region may prove to be beneficial. |
| Financial: Audits | Sedley Water Company was four years behind on financial audits. EPIC sourced, contracted with, and paid for a CPA to complete the four years of audits. | Lowering or changing audit threshold requirements may make this more financially and practically feasible to achieve compliance with the funding process. |
| Financial | Sedley Water Company expended approximately $100,000 to prepare a DWSRF application in 2019, which was then unexpectedly denied. Still facing issues with its water system, the Company sought to reapply in 2025 still without any guarantee of funding. | States could provide additional transparency regarding likelihood of funding. |
Project Next Steps
Sedley Water Company is now in a position of awaiting the determination of its second SRF application. Open issues regarding funding include the high cost of the project - $6 million - compared to the small size of the system. Sedley Water Company completed an updated income survey to determine an accurate median household income, which the Virginia Resources Authority will use to determine the applicability and amount of principal forgiveness on any funding, which will be essential to the small community. If funding is approved, construction is scheduled to start in 2026.