Hildale City takes advantage of new natural gas grant; 2023 budget approved

Hildale's surrounding natural beauty, Hildale, Utah, July 27, 2022 | Photo by Nick Yamashita, St George News

HILDALE — The special council meeting in Hildale held July 20 discussed some gas issues resulting in a “squeaky clean” scheme for the city with little to no pressure for any financial responsibility on the city.

During the meeting, an item was discussed about a grant submission for just over $1 million under the Federal and Utah Departments of Transportation. The grant will help pay for upgrades and to improve gas pipelines for infrastructure safety.

Jerry Postema, the city’s utility consultant, laid out the grant requirements and what it entails for Hildale.

“The negative impact on the public is very low,” Postema said.

The grant program was announced on May 24 by U.S. Department of Transportation Secretary Pete Buttigieg as the Natural Gas Distribution Infrastructure Safety and Modernization Grant. The program was made possible by President Joe Biden’s bipartisan Infrastructure Law, signed into effect in November 2021.

US Secretary of Transportation Pete Buttigieg announced in May the federal grant program which Hildale is putting in an application to receive funds for improving natural gas lines, July 26, 2022, St. George, Utah | Photo courtesy of U.S. Department of Transportation, St. George News

The grant, which is a $200 million dollar annual program, is dedicated to improving and replacing old natural gas pipelines in underserved communities. The five-year program is only available to government or tribal-owned utility companies and not “for-profit” utility entities.

Postema outlined how they are looking at about $2 million in grant money, and, at the moment, they were up a little above $1 million in current findings of needed repairs or improvements.

Mayor Donia Jessop had one major concern of how much of a match would be required for the grant, to which she got a very surprisingly good reply.

“100% grant. No match,” summed up Postema.

The grant will be administered and regulated by the Pipeline and Hazardous Materials Safety Administration under the Federal Department of Transportation. The grant is to help underserved communities of both urban and rural areas to receive the finances to repair gas leaks, replace older piping, replace broken meters, and more.

Hildale City Council meeting was held in the Mayor’s office due to court being in session, July 20, 2022, St. George, Utah | Photo courtesy of Hildale City Council, St. George News

Several council members asked if the grant would help create new lines for city members who do not have gas lines for their properties.

“No, it is for existing lines, not extensions,” stated Postema.

Mayor Jessop asked how likely they were to receive the grant to which Postema replied, “very likely.”

“Very high. Because of the one required stipulation of it going to an underserved community, we are guaranteed at least 40% of the grant,” answered the city consultant.

According to the U.S. Department of Transportation media release concerning the program, there will be three things that will be surmised and studied for consideration of approval to receive the grant.

  • A project’s economic benefit to disadvantaged rural or urban communities
  • The quality and number of applications received
  • The dollar amounts requested

“These grants will help communities upgrade piping that in some cases is older than any American alive today,” PHMSA Deputy Administrator Tristan Brown said when the grant was announced in May.

The Hildale General Fund Revenue chart for the fiscal year 2023, July 20, 2022, St. George, Utah | Chart courtesy of Hildale City Council, St. George News

It was also discussed if they would apply for the program together with Colorado City, but as the grant is applied through the state level, Colorado City would have to apply on their own under Arizona since they are across the border.

The council also heard resolutions on improving calls for engineering services within Hildale. This proposal was to contract out services with companies mainly for water and wastewater concerns and services. Postema said requirements were laid out for the companies, including carrying certification for both Arizona and Utah, since it is being performed in partnership with Colorado City.

In other items, the council adopted the Hildale City 2023 fiscal year budget and possible approval of  amending the city recorder, mayor, and judge compensation. Both discussion agenda items were presented by City Manager Eric Duthie.

Hildale General Fund Expenditures chart for the fiscal year 2023, July 20, 2022, St. George, Utah | Chart courtesy of Hildale City Council, St. George News

The budget was found to be tentatively balanced for the fiscal year 2023 at $12,513,119, a reduction of 10% from the fiscal year 2022. The main reasons for the reduction are the unstable international economic factors.

Changes were made for the salaries of the mayor, recorder, and the Justice Court judge. The mayor’s compensation was increased from $24,000 annually to $30,000 annually. The city recorder’s compensation was increased from $50,735 to $54,286. Lastly, the justice judge’s compensation was increased from $10,533 to $11,271.

Copyright St. George News, SaintGeorgeUtah.com LLC, 2022, all rights reserved.

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