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Staff seeks additional $1.28 million for Hurricane City drinking water components; motion pending
Summary
Staff asked the board to commit an additional $1,282,000 from the Conservation and Development fund for Hurricane City’s drinking water portion, to be repaid at 3.33% over 25 years (approx. $81,000/year); no board vote is recorded in the briefing transcript.
Staff updated the board on Hurricane City’s multi-component water project, which combines pressurized irrigation and drinking water infrastructure. The total project cost presented was $37.8 million; the drinking water portion was described in staff materials as $9,277,000.
Ethan Stayner summarized the staff recommendation for an additional C&D fund contribution for the drinking water portion. "The drinking water portion of the project includes the installation and equipping of 2 wells and constructing a 2,000,000 gallon tank, and then the associated piping to connect that to the system," Stayner said. For the outstanding drinking water portion, staff recommended an additional 13.8 percent cost share up to $1,282,000, with bonded indebtedness returned at 3.33 percent interest over 25 years and annual payments of approximately $81,000.
Staff clarified that Hurricane City had previously received financing from the repealed city water loan fund at 0 percent; because that fund no longer exists, additional financing for this component would come from the Conservation and Development (C&D) fund at the municipal interest rate unless the community qualified for a reduced rate. Stayner said the city is over the board’s affordability guideline and therefore does not qualify for a reduced rate.
Board context and next steps
Board member Brent Steed joined the meeting and the chair noted the presence of a quorum. Members asked clarifying questions regarding the recommended amount and the change in funding source from the prior board meeting. Staff said the additional $1,282,000 recommendation reflects increased construction costs and the fact that the prior commitment came from a different fund that was subsequently repealed. The briefing transcript records the staff recommendation and discussion but no formal vote recorded in this briefing meeting.
Ending
Staff advised the board on the C&D source and recommended terms; board members requested the standard motion process for formal authorization at the regular board meeting. The briefing transcript shows discussion and clarification but no formal action recorded.
