Current through Bulletin 2024-18, September 15, 2024
(1) For
State projects to develop the Colorado and Bear rivers, the Board and
contracting entity shall, by contractual agreement, establish when water
developed by the project will be delivered, the quantity of water delivered,
the cost sharing between the Board and the applicant, and the terms for
repaying the Board's share of the project cost including the purchase term,
interest rate, and cost per acre-foot of water purchased.
(2) For Federal water infrastructure
projects, the applicant's financial ability to cost share will be determined in
the project investigation. On the basis of the investigation the Division will
recommend to the Board the portion of the project cost to be furnished by the
sponsoring organization. If additional funds become available to the applicant
for the project after the Board has authorized it, and if project costs do not
increase, the additional funds will be used to reduce funding from the
WIRA.
(3) Alternate Financing:
The Board will consider alternative project funding methods
such as letters of credit, bond insurance, and various methods of interest
buydown, instead of directly funding construction of project features.
(4) Repayment of Financial
Assistance:
(a) The repayment period will be
determined in the project investigation.
(b) When annual payments are to be made with
revenues from the sale or use of project water, the Board may allow the
applicant one year's use of the project before the first principal payment is
due.
(5) Security
Arrangements:
(a) WIRA funding will be
secured by a bond issue.
(b) The
procedures for bond approval will be substantially the same as required by the
Utah Municipal Bond Act.
(c) If the
applicant desires to issue a non-voted revenue bond, the applicant will be
required to:
(i) Hold a public meeting to
describe the project and its need, cost, and effect on water rates.
(ii) Give written notice describing the
proposed project to all water users in the applicant's service area. The notice
shall include a solicitation of response to the proposed project. A copy of all
written responses received by the applicant shall be forwarded to the Division.
If the area Board member determines there is substantial opposition to the
project, the Board may require the applicant to hold a bond election before
funds will be made available.
(6) Priority Master List:
(a) The owners/operators of eligible federal
water infrastructure projects will submit a list of anticipated repairs,
replacements, or improvements of their federal water infrastructure projects,
including the expected construction dates, project costs, and WIRA fund
requests. These lists will be incorporated into a master list of potential
projects, which will be prioritized according to
R653-2-8,
Subsection 2(d) and subject to the availability of funds.
(b) A master list of potential projects will
be prioritized by the Division of Water Resources by July 1, 2017 and every two
years thereafter, and will be maintained for all potential
applicants.
(c) Funding of projects
will be prioritized by the Board.
