Beaver City Council adopts bond measures, approves airport contract and a housing-board appointment

Beaver City Council on Jan. 13 adopted multiple financing measures, approved a contractor for airport pavement work and confirmed a housing-board appointment, while holding a public hearing on a proposed sales-tax bond to buy parkland.

The council adopted Resolution 1 13 25 A authorizing issuance and sale of up to $2,200,000 in electric revenue bonds to finance water-pipeline replacement and hydro-generation controls upgrades; it also adopted parameters for a sewer revenue bond package under Resolution 1 13 20 25 B that incorporates a sizable Colorado Infrastructure Board (CIB) loan and grant package the city received.

Why it matters: the electric bond is intended to provide the city flexibility to finance a pipeline replacement and control system upgrades that staff say will reduce frequent failures of the existing steel line feeding a hydro unit and increase generation capacity. The sewer bond parameters enable the city to move forward with a federally‑and‑state‑backed capital program that includes a CIB loan and a grant, and which staff said improves the city’s ability to capture a current 0% interest window if bonds close before Oct. 1.

What the council approved and votes at the meeting

- Electric revenue bond (Resolution 1 13 25 A): motion to adopt made by Randy Hunter, seconded by Lance Cox; roll call recorded Lance Cox — yes; Allison Webb — yes; Randy Hunter — yes. Outcome: approved. Council discussion and staff presentation said the authorization establishes a maximum principal of $2,200,000 and a not‑to‑exceed interest rate of 7.5 percent for bond marketing purposes; staff said they expect a substantially lower market rate and shorter actual maturities, and that the bonds are sized to match a DOE grant requirement (50% local match) for pipeline replacement and hydro improvements.

- Sewer revenue bond parameters (Resolution 1 13 20 25 B): motion to adopt made by Council Member Hunter and seconded by Council Member Webb; roll call recorded Lance Cox — yes; Allison Webb — yes; Randy Hunter — yes. Outcome: approved. Staff and Cruz & Associates presented terms the city will offer to market. The CIB portion includes a $2,787,000 loan at 2% and approximately $4,180,000 in CIB grant funds; the parameter resolution authorizes up to $3.5 million of sewer revenue bonds for the project. Consultants advised the council that the city’s projected coverage ratio would be about 1.40 with impact fees and about 1.24 without impact fees, and recommended conservative rate planning to preserve coverage for future capital needs.

- Airport pavement preservation contract: staff recommended awarding the FY2025 UDOT pavement preservation contract for the municipal airport to CR Contracting LLC with a low bid of $166,004.83. The council approved the manager’s recommendation by voice vote; the award was announced and the motion carried.

- Beaver Housing Authority board appointment: the council approved appointment of David Moore to serve as a member of the Beaver Housing Authority board; motion and second were recorded and the appointment was approved by voice vote.

- Sales-tax revenue bond and public hearing: the council held and closed a public hearing on a proposed sales-tax revenue bond not to exceed $3,000,000 to purchase roughly 60 acres on 600 North for future recreation facilities. Jason (city staff) explained the plan to acquire 20‑ and 40‑acre parcels; council and staff said the land purchase will allow relocation of ball fields the city expects to lose as future cemetery expansions proceed. After market outreach, staff presented bank proposals and recommended a callable 15‑year option from a local lender (State Bank of Southern Utah). Council discussion favored a 15‑year callable structure for flexibility and to limit total interest costs; staff said no additional formal motion was required at that point because prior procedural steps had been taken. The council indicated intent to proceed with bond closing and to work with bond counsel and the selected local purchaser.

Other actions and approvals: the council approved a $5,000 sponsorship for the Crusher and the Tuscher event and confirmed scheduling and routine procedural matters discussed on the agenda.

What council members and staff said: Jason (city staff) and finance advisers explained technical details about amortization, coverage ratios, grant reimbursement sequencing and options to prepay or refinance. Marcus Keller of Cruz & Associates presented the sewer bond parameters and debt service projections. Zions Bank and other financial participants attended the sales‑tax bond public hearing and provided market options.

What’s next: staff said they will proceed with final bond documents and closing steps, work with bond counsel, and post required notices. For the DOE grant‑linked electric project staff said they expect to use grant reimbursement and financing to complete pipe replacement and controls upgrades once bids and final agreements are in place.

Votes recorded at the meeting are reflected in council minutes and packet documents posted on the city website; staff said full bond documents and vendor contracts will be posted after closing.