The Utah Department of Natural Resources held a Water Resources Board briefing on March 19, 2025, to discuss significant updates regarding a water infrastructure project in Hurricane City. The project, initially authorized in December 2023, aims to enhance both pressurized irrigation and drinking water systems in the area.

Key components of the project include the installation of a 15-mile pipeline for pressurized irrigation, which will replace an older canal system, and the drilling of two wells along with the construction of a 2 million-gallon water tank. These improvements are designed to support the city's expansion and improve water conservation efforts.

During the meeting, officials noted that the project has faced rising costs due to increases in material and labor expenses over the past two years. As a result, the project is now exceeding affordability guidelines by approximately $5. However, the repayment structure will remain consistent with the original authorization, with the total project cost being split into two escrow accounts for better financial management.

The board recommended committing 33.5% of the project cost, amounting to $12,665,000, from the city water loan fund. This funding will be provided at a 0% interest rate over 25 years, with annual payments structured to ensure financial feasibility for residents. The rationale for the 0% interest rate is based on the median adjusted gross income of the area, which indicates that residents are already paying slightly above what they can afford for water services.

Additionally, the meeting highlighted the importance of the pressurized irrigation system in reducing the demand on drinking water sources, thereby promoting sustainable water use in the community. The board's decision reflects a commitment to improving water infrastructure while considering the financial impact on local residents.

As the project progresses, further discussions will be necessary to address any additional funding needs and to ensure that all components are effectively managed within the established budget.