South Ogden Conservation District – Bond Notice

South Ogden Conservation District

July 1, 2024

 

Dear Water User:

Due to ongoing drought conditions throughout the state, the Utah State Legislature recently passed S.B. 251 ‘Secondary Water Metering’.   This legislation will require the following “all secondary pressurized connections be metered by January 1, 2030”; therefore, the South Ogden Conservation District “the District” has applied to the Utah Board of Water Resources “the Agency” for a grant and low interest loan to be used towards the purchase and installation of secondary water meters within the District.  Security for the loan would be provided through the issuance of “non-voted” water revenue bonds “the Bonds” to be purchased by the Board of Water Resources.  The Bonds will be issued in the total amount of $1,389,000 over a period of 15 years and at a 1% interest rate.  The bond payments shall be made from the net revenues of the water system; therefore, the District may need to increase user water rates by up to 10% in order to provide enough additional revenue to pay the new annual bond payments.  In addition to the Bonds, the District will be receiving a $3,814,000 grant for the secondary water metering project.  The grant is a cost sharing grant which explains the need for the Bonds.  Please refer to the following funding summary below:

Board of Water Resources – Loan                                               1,389,000

Board of Water Resources – Grant (State of Utah)                  3,814,000

Applicant – SOCD                                                                              245,000

TOTAL                                                                                   $5,448,000         

It is the policy of the Agency to require a 15-day period for written public comments prior to the purchase of any non-voted revenue bonds.  Interested water users are encouraged to respond in writing before July 15, 2024.  All written comments received prior to the date will be reviewed by the Agency prior to the final decision on whether to proceed with the Bonds.  Comments should be addressed to South Ogden Conservation District or the Board of Water Resources:

South Ogden Conservation District          or                       Board of Water Resources

471 West 2nd Street                                                                     P.O. Box 146201

Ogden, UT  84404                                                                        Salt Lake City, UT  84114-6201

 

Thank you for your consideration in this matter.

Sincerely,

Jeff Humphrey,

General Manager


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471 West 2nd Street, Ogden, UT
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