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Council re-authorizes parameters for up to $5 million sewer revenue bond to finish plant
Summary
Council adopted a parameters resolution authorizing up to $5,000,000 in sewer revenue bonds (21-year estimate) to complete the sewer-plant project; staff and the city's fiscal agent discussed estimated annual debt service (~$385,000) and the need to maintain 1.25 debt-service coverage.
Payson City Council adopted a parameters resolution authorizing the issuance and sale of not more than $5,000,000 aggregate principal amount of sewer revenue bonds (Series 2026) to fund sewer-plant completion. Finance staff explained the request is effectively a reauthorization because time has passed since an earlier parameters resolution; the proposed bond would be about 21 years with an illustrative annual debt service near $385,000 depending on closing rates.
The city's fiscal agent cautioned that long-term market volatility affects exact rates; the advisor said a 4.5% estimate was being used for planning. Councilors discussed whether to delay issuance in hopes of lower rates; one councilor recorded a 'no' vote saying they wanted more assurance on timing because contractor draws may extend through the year. Staff emphasized the project will use periodic draws and that $385,000 is included in the current budget assumptions.
