Purcellville Accepts More Than $6.8 Million in Preliminary PFAS Treatment Funding

By Valerie Cury

At the Town of Purcellville Work Session on May 26, Director of Public Works Andrea Broshkevitch outlined two major preliminary funding offers intended to support PFAS treatment improvements at two of the town’s groundwater treatment facilities.

According to Broshkevitch, the town received a preliminary funding offer of $4,597, 200 for the Nature Park Groundwater Treatment Plant PFAS treatment improvements project and $2,249,000 for the Main Street Groundwater Treatment Plant PFAS treatment improvements project.

“Both amounts are offered as principal forgiveness effectively functioning as grant funding through the Virginia Department of Health Office of Drinking Water,” Broshkevitch said.

She explained that the preliminary offer letters indicate the funding originates from the Bipartisan Infrastructure Law or other potential funding sources, but said the final funding package would clarify the exact source of the money.

Broshkevitch told council that town staff must notify the Virginia Department of Health in writing no later than June 8 regarding the town’s acceptance of the funding offers.

The Town Council voted unanimously to accept the funding.

During the discussion, Broshkevitch also stated that the town would be expected to achieve “structural balance” within the water enterprise fund at the time of project completion. 

However, the wording contained in the preliminary Virginia Department of Health funding documents appears more focused on long-term financial sustainability and revenue planning than on any explicit requirement for “structural balance.”

The May 8 VDH letters state that acceptance of the funding reflects “a commitment to evaluate revenues and adjust rates as necessary to ensure revenue growth” that accounts for operational costs, inflation, equipment replacement, technology upgrades, capital improvements, future regulations, and possible revenue reductions tied to water conservation efforts.

The agency additionally “urges waterworks owners to establish and fund a capital reserve fund that adequately supports capital improvements and asset replacements” and recommends utilities implement “automatic annual rate adjustments that exceed inflation.”

Attached to the preliminary funding offer was a “Building Financial Sustainability/Financial Health Indicators” document outlining financial benchmarks and evaluation tools used by the Virginia Department of Health and the Virginia Resources Authority for revolving fund loan projects.

The document explains that utilities may be evaluated on several financial indicators including debt service coverage ratios, days cash on hand, operating ratios, debt payout ratios, total debt versus total valuation, and affordability indexes tied to median household income.

Among the benchmarks listed, VDH identifies “adequate” and “strong” ranges for reserve levels, debt management, and operating revenue performance. The document also states that waterworks are “expected to meet or exceed the target rate criteria at the time of project completion.”

The guidance further notes that “fairly structured utility rates that implement gradual rate increases annually have been the most acceptable to the ratepayers and most effective in keeping revenue at pace with costs.”

VDH also recommends utilities maintain updated Waterworks Business Operation Plans, Asset Management Plans, and Capital Improvement Plans in order to demonstrate long-term technical, managerial, and financial sustainability.

The preliminary funding package remains contingent upon the availability of federal and state appropriations as well as compliance with additional state and federal requirements. 

Conditions outlined in the award documents include adherence to Virginia Department of Health and Environmental Protection Agency requirements, maintaining compliance with water regulations, demonstrating financial and managerial capacity, timely project completion, and compliance with federal procurement and labor requirements such as Build America/Buy America provisions and Davis-Bacon prevailing wage standards.

The VDH guidance documents discuss implementation schedules for utilities that may require future rate increases, allowing those increases to be phased in gradually over time. The preliminary funding offer does not specifically state that significant rate increases are currently required for Purcellville.

PFAS, commonly referred to as “forever chemicals,” are manmade compounds used in products such as nonstick cookware, food packaging, stain-resistant fabrics, and firefighting foam. 

According to the U.S. Environmental Protection Agency, PFAS break down very slowly and can accumulate in both the environment and the human body over time.

In 2024, the EPA finalized the nation’s first drinking water standards for several PFAS compounds, including PFOA and PFOS. Water systems across the country are now working to comply with the new federal regulations.

Broshkevitch said the town received the preliminary grant funding in part because Purcellville was among the first localities to submit its application. Council members praised town staff for their work in securing the funding opportunity.