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Council hears options for water system loans; grants not available due to income rules
Summary
Town staff reported on meetings with the Division of Drinking Water and UDOT: Interlaken does not qualify for drinking-water grants because of median adjusted gross income; loan options include DDW loans at about 4.45% and coordination with the Utah State Infrastructure Bank via UDOT.
Town staff updated the Interlaken Town Council on funding options for water and road infrastructure after meetings with state agencies.
The town’s local administrative contact with MAG (the council said) put staff in touch with the Utah Division of Drinking Water (DDW) and with UDOT. Staff told the council that DDW staffer Heather Pate confirmed the town does not qualify for grants because the town’s median adjusted gross income exceeds the grant thresholds. Staff summarized the alternatives as planning and construction loans.
The town can seek a DDW loan for a master water plan and for construction work such as replacing pipe or adding pressure-reducing valves. The staff member said DDW’s loan rate was about 4.45% at the time of the meeting and noted that the town could roll the cost of a master water plan into a later construction loan if the town pays for the plan up front.
Staff also reported discussing options with UDOT staffer Jeff Lewis, who described coordination with the Utah State Infrastructure Bank. The town was told the Infrastructure Bank can offer competitive loans at the current bond-market rate plus 5.5%, with no minimum project size requirement, though federal grant programs discussed by the state contact typically require much larger minimum project sizes (staff said the federal minimum is often $300,000).
Councilmembers asked no substantive follow-up questions at the meeting; staff said the town is already budgeting for a master water plan and that planning loans typically have faster turnarounds than construction loans. No formal loan application or commitment was made at the meeting.
