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Show CITIES WATER The Legislature in 1975 created the Cities Water Loan Fund and charged the Board of Water Resources with administering it to help incorporated cities and towns and improvement districts in a fashion similar to assistance provided water companies from the Revolving Fund. Legislators responded to a growing need, especially on the part of the smaller cities and towns, when the Cities Water Loan Fund was established. They recognized the extreme difficulty many of the small communities faced in bringing culinary systems up to State Board of Health standards. The problem was even more acute in communities where energy development caused populations to double almost overnight. Incorporated cities and towns and improvement districts are precluded from divesting themselves of any water rights. But they can borrow money from the State since there is no Constitu- LOAN FUND tional provision preventing Utah from exercising its credit on their behalf. This enables the Cities Water Loan Fund to provide the money needed to purchase water revenue bonds or general obligation bonds issued by cities, towns or improvement districts to finance culinary water systems. Legislation creating the fund included an extensive array of guidelines to help the Board determine eligibility for loans. An additional guideline suggested by the executive branch of government recommended that energy impacted areas be awarded high priorities in determining how the loan money would be distributed. In slightly more than two years, $ 3,784,800 worth of water bonds have been purchased by the Board to help finance 27 projects. Redemption of $ 13,300 worth of bonds has recycled that much money to the fund and made it available to help finance other projects. |