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Council gives staff go‑ahead to pursue federal/state water‑infrastructure loan and grants; staff to prioritize shovel‑ready projects
Summary
After a lengthy work session, councilors instructed staff to pursue a federal/state water-infrastructure financing program (discussed as a WIP/WIFA/EPA opportunity) and to prepare applications and project lists; council emphasized using shovel‑ready projects (Main Street water/sewer replacements) and carefully modeling repayment and rate impacts.
Payson City Council directed staff on March 5 to proceed with pursuing federal and state water-infrastructure financing and grant opportunities to fund multiple water, sewer and utility projects, including additional water tanks and trunk lines for anticipated growth.
Staff described a loan/grant program option that would allow the city to secure funds for a bundle of projects, pay interest only on the amounts drawn, and defer repayment on borrowed principal for up to five years after substantial completion of the first project. Staff said applicants must show shovel-ready projects in their application; the city identified Main Street water, pressurized‑irrigation and sewer replacements as an immediate shovel-ready candidate.
Council members asked detailed questions about repayment periods, how drawn amounts would accrue interest, potential impacts on utility rates and the effect of developer reimbursements or pioneering agreements. Staff said the program is not a competitive process but requires a complete application and that the city will need to demonstrate rate capacity to support bonding if necessary.
Councilors expressed concerns about adding long-term debt if growth does not materialize and the need for clear rate-studies before committing. At the end of the work session the council authorized staff to pursue the application steps, prepare a project list that includes shovel-ready work, and return with cost estimates and updated rate analyses for council review before final application submission.
