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Grantsville council approves parameters to seek up to $50 million in sewer bonds to fund new treatment plant
Summary
The Grantsville City Council adopted a parameters resolution allowing staff to pursue up to $50 million in sewer revenue bonds to finance a new wastewater treatment plant, while noting the City already secured $16 million in low-interest state financing and construction bids remain pending.
Grantsville — The City Council on Feb. 4 adopted Resolution 2026-02, authorizing staff to pursue financing parameters for up to $50,000,000 in sewer revenue bonds to support construction of a new wastewater treatment plant. The resolution sets a conservative maximum interest ceiling of 6% and a maximum term of 34 years but does not obligate the city to issue debt, staff said.
Finance Director Aspen Clegg and Alex Buxton of Zions Public Finance told the council the parameters resolution is intended to allow the city to begin the bonding process and seek the best available financing. "Approval of the resolution does not obligate the City to issue bonds but establishes parameters to allow staff to proceed," Buxton said. He added that market expectations for the privately placed portion were closer to 4% and that the 6% figure was a conservative ceiling.
Buxton reported the city has secured at least $16 million through the Utah Water Quality Board at a subsidized 0.75% interest rate for 30 years, and staff has requested additional subsidized funding from the state, with roughly $3.5 million potentially available though not guaranteed. Clegg said construction bids for the treatment plant were currently out and scheduled to close on March 11; the council’s April 1 public hearing on the bond package was designed to allow staff to align bond amounts with actual contractor bids rather than engineer estimates.
Councilmembers asked questions about the exhibit’s cost assumptions and timing relative to bids. Councilmember Butler asked whether the estimate assumed the conservative 6% ceiling; Buxton confirmed the exhibit included the $16 million at 0.75% and treated remaining amounts at the 6% ceiling for planning purposes, while reiterating the city expected a lower effective rate for private placement. No councilmembers opposed the motion, and the resolution passed unanimously.
The next procedural step is the April 1 public hearing on the bond issuance, and staff indicated they would follow up on requests for additional state funding once the state representative returned to the office.
