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Drinking Water Construction Assistance Programs

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 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.

Maximum Affordable Water Bill

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.

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 1.09% of 2021 State MAGI of $51,600)


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