Council adopts parameters to issue up to $18.5 million in water, sewer and storm drain revenue bonds

The Midvale City Council adopted Resolution 2025 R-28 on Tuesday authorizing a preliminary official statement and related documents to issue not more than $18,500,000 in water, sewer and storm drain revenue bonds (Series 2025). The measures set maximum parameters for bond length, interest rate and minimum sale price and allow designated city officers to finalize pricing when the market conditions are appropriate.

Laura Lewis, the city’s finance counsel, told the council the bonds will be issued on parity with existing water and sewer revenue bonds and that bondholders are secured by water and sewer revenues only, not property taxes. She explained state law allows local governments to borrow for capital projects but not operating costs. Lewis said the city’s likely maximum term could be up to 35 years but staff expected to structure a shorter term if possible.

The council opened and closed the required public hearing; no members of the public commented on the issuance. Lewis said the city would seek ratings and bond insurance and that staff (including Matt Dahl and Mariah) would travel to meet rating agencies and final purchasers.

Councilmember moved to adopt the resolution authorizing the offering document and preliminary official statement; the motion passed unanimously. The resolution clears the way to market the bonds under the parameters approved by the council. Final sale and pricing remain subject to designated officers’ approval when market conditions permit.

Staff said proceeds would be used to upgrade the city’s utility system and that the offering would be sold on parity with other existing water and sewer revenue debt.

The council did not approve final pricing or sale terms; those will return to staff and designated officers for closing once market conditions and credit work are completed.