Parowan council authorizes up to $12 million in water revenue bonds to rebuild springs and treatment capacity

The Parowan City Council on July 23 adopted Resolution 2026-12 authorizing revenue bonds with a maximum principal amount of $12,000,000 to finance drinking-water system improvements. The action came after a public hearing and a staff presentation on project needs and financing terms.

Outside counsel and the city's financing representative told the council the city has approval for a $9,675,000 loan plus a $1,075,000 grant — a combined $10,750,000 — and recommended a $12,000,000 maximum in the public‑hearing notice to allow a contingency cushion if construction bids come in higher than estimated. Eric, who addressed financing on the call, said the lender requested a cushion until bids are opened and described the proposed interest structure as about 2% with a maximum term of 35 years.

City staff and council members said the borrowing will pay for three principal components: returning an underperforming spring to service, installing a modest treatment plant to address turbidity and total dissolved solids, and replacing an aging Main Canyon Spring transmission line plus targeted distribution upgrades to improve fire flow. The resolution authorizes the mayor and city manager to serve as the pricing committee to finalize bond terms.

The council approved the resolution by roll call vote, with the clerk recording unanimous 'aye' votes. Staff said engineering and permitting must be completed before construction and closing on the loan, and that bids will determine the final scope that fits within the approved funding.

The city will next complete engineering and permitting steps described during the hearing before bringing final contract awards and project-specific actions back to the council.