SALT LAKE CITY (AP) — The Utah Inland Port Authority board has approved a $1.6 million infrastructure loan in the Pony Express Project Area to Fairfield City to support construction of a municipal water system and designing a future well for public safety and future economic development in the Cedar Valley community.
Funds will be used to reimburse the town for a recently completed water line and to support drilling a new municipal well. Testimony presented during the loan committee review indicated Fairfield currently has adequate water for existing demand but is nearing capacity for the existing system.
“This is a local infrastructure investment that helps a small community meet basic public needs and plan responsibly for growth,” said Jenna Draper, associate vice president of regional project area development with UIPA. “These loans are designed to help communities build essential infrastructure — like water, roads and utilities — when traditional financing is difficult to access.”
Fairfield officials said the water improvements are necessary not only to support anticipated commercial development, but also to ensure the town can meet existing safety and service standards.
“We had businesses operating without sufficient access to fire hydrants, which put us out of code,” said Fairfield’s Mayor Hollie McKinney. “We had to move quickly to protect public safety, and this project ensures our town has the water capacity needed to serve residents and businesses responsibly.”
The loan, approved during the board’s public meeting Tuesday, carries a 15-year term at 3.13% interest, with payments deferred for the first five years. Repayment will come from future tax increment generated by new development within the Pony Express Project Area, rather than from Fairfield’s existing general fund.
UIPA officials emphasized that the loan does not subsidize private companies and does not transfer water rights to outside entities. The infrastructure funded through the loan will remain publicly owned and controlled by the town.
“This request was initiated by Fairfield City after they approached us for help addressing their local infrastructure needs,” Draper said. “Our role is to evaluate those requests and, when appropriate, provide financing tools that help communities.”
State law authorizes UIPA to issue infrastructure loans for public projects including water systems, sewer, roads and utilities. Loans are administered and serviced by the Utah Division of Finance.
Published: 01/13/26
Author: Kaitlin Felsted