NOTICE IS HEREBY GIVEN pursuant to the provisions of the Utah Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended, that on July 13, 2022, the City Council (the “Council”) of Wellington City, Utah (the “Issuer”) adopted a resolution (the “Resolution”) in which it authorized the issuance of the Issuer’s Sewer Revenue Bonds (the “Bonds”) and its Sewer Revenue Bond Anticipation Notes (the “Notes”), each in the aggregate principal amount of not to exceed $5,250,000, to bear interest at the rate or rates of not to exceed four percent (4.0%) per annum, to mature in not more than forty (40) years from their date or dates for the Bonds and to mature in not more than three (3) years from their date or dates for the Notes, and each to be sold at a price not less than 98% of the total principal amount thereof. The estimated total cost to the Issuer for the proposed Bonds, if the Bonds are held until the maximum maturity, based on the maximum interest rate above, is approximately $11,048,675. However, the Issuer has obtained funding commitments from 1) the United States Department of Agriculture, Rural Development related to the Bonds in the amount of $4,082,000 at the interest rate or rates of 1.875% per annum, to mature in not more than forty (40) years, in which case if the Bonds are held until the maximum maturity, based on the expected interest rate then the total cost to the Issuer for the proposed bonds would be approximately $5,850,720, and from 2) the State of Utah acting through its Permanent Community Impact Fund Board (the “CIB”) in the amount of $1,000,000 at the rate or rates of 1.0% per annum, to mature in not more than thirty (30) years, in which case if the Bonds are held until the maximum maturity, based on the expected interest rate then the total cost to the Issuer for the proposed bonds would be approximately $1,165,630. The United States Department of Agriculture, Rural Development has authorized a grant to the Issuer in the amount of $1,788,000. Additionally, the CIB has authorized a grant to the Issuer in the amount of $1,000,000. Presently the Issuer has no more than $176,000 in outstanding bonds secured by a pledge of its sewer revenues.
NOTICE IS FURTHER GIVEN that the Issuer called a public hearing for the purpose of inviting public comment on the proposed issuance of the Bonds and Bond Anticipation Notes and the economic impact that the improvements proposed to be financed with the Bonds and Bond Anticipation Notes will have on the private sector. The public hearing will be held on August 10, 2022, at 6:00 p.m., or as soon thereafter as feasible, at the regular meeting place of the Council at 150 West Main Street, Wellington, Utah 84542. As sewer revenue bonds and notes no taxes will be pledged to repay the Bonds or Notes.
The Bonds and Notes will be issued pursuant to the Resolution and a Bond Resolutions related to the Bonds and a Note Resolution related to the Notes to be adopted authorizing and confirming the sale of the Bonds and Notes for the purposes of financing, in part, (i) the acquisition and construction of Sewer system improvements, and related improvements, and (ii) paying the costs of issuing the Bonds and Notes.
A draft of the Bond Resolutions and the Note Resolution in substantially final forms were before the Council and were part of the Resolution (collectively, the “Bond Resolutions”) at the time of its adoption by the City Council. The Bond Resolutions and Note Resolution will each be adopted by the Council in such form and with such changes thereto as shall be approved by the Council upon the adoption thereof; provided that the principal amount, interest rate, maturity and discount of the Bonds and the Notes will not exceed the maximums set forth above.
A copy of the Bond Resolutions are on file in the office of the City Recorder in the Issuer where they may be examined during regular business hours for at least thirty (30) days from and after the date of publication of this notice.
NOTICE IS HEREBY GIVEN that a period of thirty (30) days from and after the first date of the publication of this notice is provided by law during which any person in interest shall have the right to contest the legality of the Resolution, the Bond Resolutions, the Note Resolution or the Bonds or the Notes, or any provision made for the security and payment of the Bonds or the Notes by filing a verified written complaint in the District court of the county in which he/she resides, and that after such time, other than referendum rights, no one shall have any cause of action to contest the regularity, formality or legality thereof for any cause whatsoever.
DATED July 13, 2022.
/s/ Gracie Procarione
City Recorder
Published in the ETV Newspaper July 20, 2022.