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Hurricane council tables expansion of water revenue bond authorization for pressurized irrigation project
Summary
Council delayed action on expanding previously authorized water revenue bond parameters after staff said some costs remain uncertain; motion to table passed unanimously.
Hurricane City Council on Monday voted to table action on expanding the authorization for water revenue bonds tied to the city’s pressurized irrigation expansion project.
City staff told the council that the city previously approved a parameters resolution to issue bonds for completing the pressurized irrigation expansion, originally set at $14,000,000. Bids and further direction from project partners prompted staff to recommend a contingency buffer of about $1,413,741 to cover potential overruns. Staff said parts of the project—notably components for two well sites and a tank—still lack final numbers because required equipment sizes and pressures are not yet determined. Staff also said the pressurized irrigation portion is contingent on funding from the Natural Resources Conservation Service (NRCS).
Why it matters: The resolution being considered would widen the financial parameters the city could use to issue water revenue bonds. Council members and staff emphasized that the approved bond amount may ultimately be sufficient or may require expansion depending on final bids and grant decisions. Staff said engineers believe the roughly $1.4 million buffer would likely cover contingencies, but acknowledged unknowns remain for well components and property acquisitions for the tank site.
What the council did: Councilman Thomas moved to table the item “until we have further information that’s needed.” The motion was seconded and approved by voice vote.
What’s next: City staff said they will monitor final bid results and continue coordinating with bond counsel and financial consultants. The Board of Water Resources must review and approve the financing before the city proceeds; staff noted a Board meeting on or about March 18 where financing could be approved. If NRCS funds are not secured, the city will need to revisit the scope and financing plan.
Speakers quoted or recorded in the meeting included council members and city staff; comments about NRCS funding and remaining unknowns for wells were presented by city staff during the item.
