Board asked to commit final $4 million for Deer Creek outlet overhaul; legislature also appropriated conditional funds

Staff updated the board on a major Deer Creek Dam outlet and bypass project whose current cost estimate is about $100 million. The project replaces and upgrades outlet controls and installs a bypass outlet so operators can inspect and maintain the outlet without draining Deer Creek Reservoir; part of the scope uses divers and microtunneling to preserve reservoir levels.

Funding to date: the project sponsor provided $7 million toward cost share; Central Utah Water Conservancy District is providing roughly 17% (about $17 million); the board previously authorized and committed $65 million and is now being asked to commit the final $4 million piece. Staff said the proposed repayment terms would match the existing board loan: 1% interest over 35 years with estimated annual payments of about $141,000.

Separately, the Utah Legislature appropriated $4 million conditioned on the association arranging a lease of 35,000 acre‑feet for at least 15 years to the Department of Natural Resources; staff said the association is still working through how that lease condition would be met and that the appropriation’s timing and conditions could affect whether the board’s $4 million loan is used. Staff said the association may reduce the amount it requests from drinking-water funds depending on how legislative appropriation and Division of Drinking Water support are finalized.

Why it matters: Deer Creek conveys a large portion of Central Utah’s supply and the outlet work is central to long‑term operational reliability for downstream municipal and agricultural users. Staff said the association expected to close the board loan next week if the board commits funds but would reconcile legislative appropriation and other fund sources when timing is clear.

No final committal vote was recorded in the briefing; board members indicated one of their members would make a motion at the upcoming meeting.