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Fees, Grants, and Funds
Drinking Water: Construction Assistance Programs
Administered by the Division of Drinking Water
The Division of Drinking Water (DDW) administers two financial assistance programs. Each program has its own unique set of criteria and requirements, but utilizes a new combined application form. This version will allow data to be directly imported into the DDW database. Please fill out the application and Email it to the Division of Drinking Water. Submittal deadlines for applications are also available.
State SRF Program
Created by the Utah State Legislature in 1984 and governed by the Water Development Coordinating Council (Title 73, Chapter 10c of the Utah Code). It is a State-funded program. Only political subdivisions (e.g., cities, towns, districts, etc.) are eligible for State SRF funds.
Federal SRF Program
Created under the 1996 amendments to the Federal Safe Drinking Water Act. Most of the funds in this program originate from the federal government. Federal SRF funds are available for privately and publicly owned community water systems and nonprofit non community water systems.
Typically, to receive loan funds from either program, the project sponsor will issue a revenue bond. The sponsor thus pledges that water system revenue will be used to repay the loan. Other forms of security may also be acceptable.
It should be noted that there are other State and federal agencies which fund drinking water projects. For information on these programs, and for more information on DDW programs, see Overview of Financial Assistance Programs for Drinking Water Projects.
- Rural Development (a Federal Agency) (801) 524-4326
- Utah Community Development Block Grant Program (801) 526-4326
- Utah Community Impact Board (801) 526-9392
- Utah Division of Water Resources (801) 538-7292
When a project is evaluated for funding, an attempt is made to determine the maximum affordable water bill for the water system. This is calculated as 1.75% of the local MAGI.
The Median Adjusted Gross Income (MAGI) of the applicant's service area is shown below. This is the most recent data from the Utah State Tax Commission.
- 2015 State MAGI: $43,196 (see Historical Graph)
- 2015 Local MAGI (by City)
- 2015 Local MAGI (by ZIP Code)
The Average State Water Bill, of all the water systems in the State, is used in prioritizing applicants for Federal SRF funding. This has been determined from the 2013 Community Water System Survey Report.
- $47.03 (the percent of the state water bill is 1.31% of 2015 State MAGI of $43,196)
States differ in how they prioritize needed improvements for the water systems they oversee. Utah has a unique system in place called the Improvement Priority System (IPS) which is based on a point system for various deficiencies and violations. In concert with the Division's Project Priority List scoring system for funding capital improvements projects, DDW developed a list of potential construction projects based on the adjusted IPS points of the respective systems as well as their local income and water bills. This list will alert engineering consultants to those systems in most need of capital improvements and that have IPS points that may be resolved by constructing drinking water infrastructure.