Council approves Zions contract to pursue bonds after major water leak depleted reserves

Huntsville Mayor Richard L. Sorensen told the Town Council on Aug. 21 that last year’s “Great Leak” substantially reduced the town’s water reserve (approximately $250,000–$300,000), leaving the culinary water fund underfunded and in need of both infrastructure repairs and replenished reserves.

“To restore the fund and repair and replace water infrastructure, there would need to be a rate increase and bonds,” Sorensen said as he introduced a professional services contract with Zions Public Finance, represented in the packet by Mark Anderson. Clerk Beckki Endicott told the council that Zions will not charge for municipal-advisory services until a bond is issued. The council voted 5–0 to approve Resolution 2025-8-21 engaging Zions as the Town’s municipal advisor for financing needs.

The contract—attached to the council packet—identifies Zions Public Finance as a registered municipal advisor and outlines services including advice on financing structures, assistance selecting financing team members, coordination of a competitive or negotiated sale, and post-closing compliance support. The Zions schedule lists a per-issue fee with a $10,000 minimum; packet materials clarify no advisory charge will be assessed until bonds are actually issued.

Council members said they want a public hearing on proposed rate increases and noted the bond application deadline of September 30 as a scheduling constraint. The acceptance of the Zions contract was paired in the meeting with the council’s vote to accept a detailed water-rate study prepared by Zion’s Bank that models multi-year rate increases needed to meet coverage ratios required by bond markets.