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Hurricane City seeks $12.7M commitment for combined pressurized irrigation and drinking-water work; staff proposes 33.5% board share at 0% interest
Summary
Hurricane City described a combined pressurized irrigation and drinking-water project that staff recommended the board support by committing 33.5% of the project cost, up to $12,665,000, at 0% interest over 25 years.
Hurricane City presented plans for a combined pressurized irrigation (PI) and drinking-water project that includes roughly 15 miles of pipeline for secondary irrigation, two new wells and a proposed ~2,000,000‑gallon drinking-water storage tank and associated piping to connect the facilities to the city system.
Staff said the PI work is partly funded by NRCS (covering roughly 75% of construction cost for the PI portion) while the drinking-water portion carries a larger state share. Because authorized costs were estimated in 2023, staff said rising material and labor costs required updating estimates; staff recommended the board commit 33.5% of project cost up to $12,665,000 from the City Water Loan Fund and provide financing at 0% interest over 25 years, with annual payment calculations shown in staff materials.
Why it matters: staff told the board the combined project would conserve culinary water by shifting outdoor irrigation demand to pressurized secondary water in areas that previously used culinary supplies; staff and Hurricane City said metering and AMI (advanced metering infrastructure) are part of the program, and the PI expansion would reduce pressure on culinary wells and the Virgin River supply.
Board members questioned affordability and structure. Staff explained the City Water Loan Fund uses applicant median adjusted gross income to evaluate eligibility for lower interest rates; staff calculated an illustrative per‑connection monthly impact (after accounting for other averages) of about $64.98 and recommended 0% interest because the area’s affordability metrics met the fund’s criteria. The board asked what conservation measures Hurricane has adopted; Ken Richins, Hurricane City water superintendent, described tiered conservation rates, AMI metering, and agreements with the Washington County Water Conservancy District. "We are really on board with water conservation," Richins said.
Board counsel and staff also described bond counsel advice that required structuring the project as one bond with two escrow accounts, given existing bond work already underway; staff said the board’s commitment would be one motion despite separate escrow accounting. Staff and Hurricane officials noted some work already bid and constructed; other elements (well equipping, additional metering) required extra funds added to the estimate.
Staff said Hurricane City will be the last loan from the City Water Loan Fund before that fund is folded into the State Water Infrastructure Fund (effective May 7); repayments will move to the new fund after that date. No formal committal vote occurred in the briefing; board members indicated a member would move the motion during the board meeting.
