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State Revolving Fund (SRF): Drinking Water

Rule

See Rule R309-700. State Drinking Water Project Revolving Loan Fund Program.

Eligibility

All political subdivisions of the State of Utah (e.g., cities, towns, districts, etc.)

Available Financial Assistance

Low-interest loans (typically below market rate, 20-40 years) and grants. To qualify for a grant, applicants must demonstrate that the estimated average water bill exceeds 1.75% of the local median adjusted gross income (MAGI) or the local MAGI is less than or equal to 80% of the State MAGI. MAGI is based on the most recent data from the Utah State Tax Commission and are available here.

Application Process

To initiate the process, download and fill out the application form (498 KB). The application requires several attachments. Please submit the completed application and all required attachments to ebrawley@utah.gov. Incomplete applications will not be reviewed. Application due dates are available here.

Appearance Before the Utah Drinking Water Board

After an Applicant submits all the required information and documents, Division staff will prepare and present a project feasibility report to the Utah Drinking Water Board. Applicants are encouraged but not required to attend the board meeting. At the meeting, applicants are given an opportunity to elaborate on the project need and answer the Board’s questions. If the proposed project meets the Board’s need and feasibility requirements, the Board may authorize financial assistance to the Applicant.

After Board Authorization

Before the authorized financial assistance can be used to pay for construction, several requirements must be met, and appropriate documents submitted and found acceptable. Requirements include but are not limited to:

  • Document public notice and support for the project
  • Demonstrate annual water revenue will cover future debt service
  • Establish a capital facilities replacement reserve account
  • Obtain a fidelity bond for employees handling loan funds
  • Secure the loan with a bond or pledged collateral
  • Consult with the State Historic Preservation Office
  • Submit engineering plans and specifications for Division approval
  • Advertise for bids

Refer to the Guidance For Loan Recipient (38 KB) document for more detail.

Loan Closing

When all documentation is in order, a “loan closing” is held. Funds are transferred to a jointly administered escrow account and released only on a dual signature from both the water system and the Division of Drinking Water.

Construction Phase

Please note the following:

  • A pre-construction meeting must be held and a representative from the Division should be in attendance.
  • The Division will process payment requests within the approved scope of work as the project is built.
  • The Division will review all change orders to determine if additional expenses are eligible for payment.
  • Project construction inspection services must be provided by a qualified inspector.
  • Division personnel will conduct at least one interim project inspection as well as a final project inspection.

Contact Info