Notice: Riverton City Applies for Loan from Utah Board of Water Resources

Water Users,

This notice is meant to inform you that Riverton City has applied to the Utah Board of Water Resources for a loan to be used in the acquisition and installation of secondary water meters and other improvements to the secondary water system. The bonds will be issued for a total of $11,985,000 which amount will be repaid to the Board of Water Resources over a period of 15 years at 1% interest.

Due to the foresight of former city leaders, Riverton City offers a secondary water system that is second to none in the state by offering secondary water connections to all residents. The use of secondary water saves water users hundreds of dollars per year.

Why is Riverton City doing this?
The 2019 session of the Utah Legislature passed Senate Bill 52, which mandates secondary water distributors to provide the state with a plan by December 31, 2019 for metering the use of pressurized water. Riverton City anticipates that the Utah Legislature will mandate metering of all pressurized secondary water systems in the near future.  Therefore, Riverton City is working to get ahead of that anticipated mandate while interest rates are low. For this reason, the city is taking action now by applying to obtain a loan from the Utah Board of Water Resources. 

Additionally, overuse of secondary water has put a strain on Riverton City’s secondary water system over the last few years. The system was designed to deliver about 19-20 million gallons of secondary water per day, when taking into consideration the full build out of our city. Over the last few years, Riverton City has seen 30-35 million gallons of secondary water use per day during peak summertime months; a level at which we will need to purchase additional water shares and make significant upgrades to our system if not checked. Once meters are installed, the city intends to show on individual bills how much secondary water is being used and what the recommended use is for the property. Just having this information has demonstrated that users have self-regulated and water consumption has dropped by about 30% in one area of the state where it’s been implemented. It is Riverton City’s hope that we would see similar conservation and therefore less burden on our system.

How will the bonds be paid for?
It is projected that the original bonds used to fund the installation of Riverton City’s secondary water system will be paid off by about 2022. The money currently being used to make those bond payments will then be diverted to make the payments on the new bond.

Will water rates change?
Water rates are not expected to change as a result of this project. As you may recall, secondary water rates were lowered by $5 per month in Fiscal Year 2018-2019. Riverton City is conducting a rate study, as called for in the city’s strategic plan, and it is possible rates may change in the future based on recommendations that come from that study, such as making secondary water cost assessment more equitable based on lot size.

Will Riverton City begin charging by use?
There are no plans at this point to charge residents for secondary water based on amount used. Once the secondary water meters are installed, Riverton City does anticipate providing resident’s with usage information, with the hope it will promote conservation and cause users to follow state recommended guidelines for water use. Data has shown that water usage drops when it is measured. 

Keep in mind that a future mandate from the state, or extreme secondary water overuse that strains the city’s system, could require the city to change its current pricing model.

How can I provide comment?
If you have comment you’d like to make on this topic, please follow the directions in the official notice at the button below before December 3, 2019.

View Official Notice