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Council adopts parameters resolution to issue 2025 sewer revenue bonds; seeks supplemental CIB aid
Summary
Council approved a parameters resolution authorizing up to $5 million in sewer revenue bonds while staff pursues supplemental funding from the Community Impact Board (CIB) to limit borrowing.
Beaver City on Sept. 23 adopted a parameters resolution authorizing issuance of sewer revenue bonds to complete an expanded sewer-project scope after the city’s engineer and bond advisers reported higher-than-expected costs.
Marcus Keller of Bruce & Associates told the council the project’s scope had changed and the city had requested supplemental funding of approximately $1.2 million from the Utah Community Impact Board (CIB). That supplemental request, if fully provided as a loan rather than a mix of loan and grant, would increase the total borrowing above prior authorization. Keller said the parameters resolution on the table would authorize a not-to-exceed bond issuance of $5,000,000 with maximum parameters of 33 years and 5.5% interest to preserve the city’s options depending on CIB’s final award.
Keller gave two loan scenarios: if the CIB supplemental request is awarded with the previously proposed grant/loan split, the city’s expected new loan amount would be about $3,289,000 (the “best case” scenario). If CIB provides the supplemental amount entirely as a loan, the city’s loan exposure could rise to approximately $4,043,000. Keller said best-case annual debt-service would be about $147,000; the larger loan could push annual debt service higher (he provided a range up to roughly $179,000–$210,000, depending on final terms).
Keller asked council members to be available for the CIB meeting on Oct. 1 to support the supplemental request; he said local elected-official presence often improves the board’s understanding of the project. He also urged staff and the council to prepare to hold the public hearing called for by the parameters resolution; the resolution set a public hearing date for Oct. 14.
Council member Allison Webb moved to adopt parameters Resolution 9-23-2025 B authorizing issuance of sewer revenue bonds not to exceed $5,000,000; Council member Randy Hunter seconded. The council conducted a roll-call vote and the resolution passed with the five recorded members voting yes (Owen Spencer; Lance Cox; Tyler Schema; Allison Webb; Randy Hunter).
Keller and staff said the next steps were to present the supplemental application to the CIB on Oct. 1, await the board’s decision, then finalize the mix of grant vs. loan and return to council with the final bond sizing, a public hearing and sale documents if bonding is required.
