Price City OKs principal-forgiveness loan to replace aging spring water line; staff cites early pipe procurement

Price City Council approved a principal-forgiveness loan agreement Jan. 14, 2026, with the Utah Division of Drinking Water to fund replacement of the city's aging spring water transmission line.

City staff described the approved funding package as including a substantial grant component. "When we applied for funding... we received a $15,200,000 funding package," a staff member said, adding that the grant portion would not need to be paid back. Staff said the council was approving a portion now to allow procurement of long-lead HDPE pipe while prices are favorable.

During the staff presentation a council member asked the length of pipe needed; staff answered "7 miles." The council then considered a motion to approve the loan agreement. The motion record in the meeting states approval of a loan agreement for $4,559,000; the motion was seconded and approved by voice vote.

Transcript references to amounts in the staff presentation are inconsistent: at one point staff referred separately to "4,000,000" and "$509,000 for replacement of the city's aging spring water transmission line." The motion that the council approved, as stated in the meeting record, identified $4,559,000. The minutes and city loan documents should be consulted for an authoritative, itemized funding breakdown and the precise allocation between grant and loan components.

Staff said early procurement is intended to reduce project cost and avoid delays caused by long lead times for pipe delivery. The council did not discuss a construction schedule or contractor selection during the meeting. Implementation and project details will be handled by the city's public works or water department following procedural steps required by the Division of Drinking Water.