Salt Lake City is actively engaged in multiple major projects, with a race to complete two key ones to meet federal requirements. The Department of Public Utilities is seeking up to $225 million in bonds to repay debts on systemwide water and sewer improvements by 2027 and cover other water projects. This bond issue was planned as part of the long-term capital strategy.
Key Details of the Bond
About $99 million will be used to repay a $348 million loan on the wastewater reclamation facility received under the Water Infrastructure Finance and Innovation Act. Another $100 million will go towards various water utility projects, including a match for the $36.7 million Federal Emergency Management Agency grant for the new water treatment plant. The new reclamation plant is expected to be substantially complete by July 2026 and fully online a few months later, while the new water treatment plant is projected to be completed by spring 2027.Any remaining water funds will be used on critical infrastructure projects within the system, such as new pump stations and the Cottonwoods Connection pipeline connecting the Big and Little Cottonwood water treatment plants. These projects aim to replace aging infrastructure and improve system resiliency.The bond may be less than $225 million with a 6% per annum rate cap. It will be repaid through user fees and other public utilities revenue sources, unlike the recent Salt Lake City School District bond.The department is still working on a comprehensive water, sewer, and stormwater rate study, and this bond is factored into it. Members of the Salt Lake City Council supported the bond but suggested reaching out to residents.There could be more public utility bonds in the future, especially for the Big Cottonwood Canyon and Parleys water treatment plants that also need rebuilds.