R653-2-9. Financial Arrangements (WIRA)

  (1) For State projects to develop the Colorado and Bear rivers, the Board and contracting entity shall, by contractual agreement, establish when water developed by the project will be delivered, the quantity of water delivered, the cost sharing between the Board and the sponsor, and the terms for repaying the Board's share of the project cost including the purchase term, interest rate, and cost per acre-foot of water purchased.

  (2) For Federal water infrastructure projects, the sponsor's financial ability to cost share will be determined in the project investigation. On the basis of the investigation the Division will recommend to the Board the portion of the project cost to be furnished by the sponsoring organization. If additional funds become available to the sponsor for the project after the Board has authorized it, and if project costs do not increase, the additional funds will be used to reduce funding from the WIRA.

  (3) Alternate Financing:

  The Board will consider alternative project funding methods such as letters of credit, bond insurance, and various methods of interest buydown, instead of directly funding construction of project features.

  (4) Repayment of Financial Assistance:

  (a) The repayment period will be determined in the project investigation.

  (b) When annual payments are to be made with revenues from the sale or use of project water, the Board may allow the sponsor one year's use of the project before the first payment is due.

  (5) Security Arrangements:

  (a) WIRA funding will be secured by a bond issue.

  (b) The procedures for bond approval will be substantially the same as required by the Utah Municipal Bond Act.

  (c) If the sponsor desires to issue a non-voted revenue bond, the sponsor will be required to:

  (i) Hold a public meeting to describe the project and its need, cost, and effect on water rates.

  (ii) Give written notice describing the proposed project to all water users in the sponsor's service area. The notice shall include a solicitation of response to the proposed project. A copy of all written responses received by the sponsor shall be forwarded to the Division. If the area Board member determines there is substantial opposition to the project, the Board may require the sponsor to hold a bond election before funds will be made available.

  (6) Priority Master List:

  (a) The owners/operators of eligible federal water infrastructure projects will submit a list of anticipated repairs, replacements, or improvements of their federal water infrastructure projects, including the expected construction dates, project costs, and WIRA fund requests. These lists will be incorporated into a master list of potential projects, which will be prioritized according to R653-2-8, Subsection 2(d) and subject to the availability of funds.

  (b) A master list of potential projects will be prioritized by the Division of Water Resources by July 1, 2017 and every two years thereafter, and will be maintained for all potential sponsors.

  (c) Funding of projects will be prioritized by the Board.