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Board agrees to one-year deferment of Red Wash Dam payments; Water Conservancy District manager recuses
Summary
The board amended the purchase agreement for Red Wash Dam to defer one year of remaining payments so the applicant can fund a pipeline project. A sponsoring district general manager recused because of a potential conflict; the motion passed unanimously. Payments will resume in 2026.
The Utah Board of Water Resources voted on Oct. 9 to amend the purchase agreement for Red Wash Dam — completed in 2009 — to defer all remaining payments by one year so the applicant can reallocate funds to a feeder pipeline project.
Tom Cox told the board the state previously committed $7,592,000 to construction of Red Wash Dam and that the project’s current purchase agreement provided 59 years of 0% interest payments. The applicant asked to push the next payment forward one year, which would spread the amortization over 60 years and resume regular payments in 2026. Cox said materials for the pipeline have been procured and construction was expected to begin this month.
A general manager from a sponsoring Water Conservancy District told the board he was too close to the project and recused himself from the vote. The board moved to amend the purchase agreement; the motion was seconded and carried unanimously with the recusal recorded.
Board staff said the deferred schedule is intended to free local funds for project construction while preserving the overall purchase agreement and the long-term repayment schedule.
