NOTICE OF PUBLIC HEARING AND BONDS TO BE ISSUED
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 December 20, 2022, the City Council of East Carbon City, Carbon County, Utah (the “Issuer”) adopted a resolution (the “Resolution”) in which it authorized the issuance of the Issuer’s Water Revenue Bonds, in one or more series (the “Bonds”), in an aggregate principal amount of not to exceed $2,725,000; the Bonds to bear interest at the rate or rates not to exceed 1.0% per annum, to mature in not more than 35 years from their date or dates, and to be sold at a price not less than 99% of the total principal amount thereof, plus accrued interest to the date of delivery, if any. The estimated total cost to the Issuer for the proposed Bonds, if the Bonds are held until the maximum maturity, based on the maximum authorized amount and interest rate above, is approximately $3,231,000. However, the Issuer anticipates that one series of Bonds will be sold to the State of Utah acting through its Permanent Community Impact Fund Board in an amount of $547,000 at the interest rate of one half of one percent (0.5%) per annum to be repaid over 30 years in which case the total amount to be repaid would be $590,420. The Issuer has obtained a grant commitment from the State of Utah Permanent Community Impact Fund Board in the amount of $1,442,000 for the Project, none of which will need to be repaid; and the Issuer anticipates that one series of Bonds will be sold to the State of Utah Department of Environmental Quality, Drinking Water Board in the maximum Total Principal Amount of $2,700,000, with a maximum amount of Principal Forgiveness of $1,150,000, leaving a maximum Repayable Principal Amount of $1,550,000 bearing interest at the rate of not to exceed one percent (1.0%) per annum, to be repaid over 30 years in which case the total amount to be repaid would be $1,814,114. As water revenue bonds, no taxes will be pledged to repay the Bonds. Presently, the Issuer has no more than approximately $2,011,411 in outstanding bonds secured by a pledge of water 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 the economic impact that the improvements proposed to be financed with the Bonds will have on the private sector. The public hearing will be held on January 17, 2023, at 6:30 p.m., or as soon thereafter as feasible, at the East Carbon City Hall, located at 101 West Geneva Drive, East Carbon, Utah. As water revenue bonds, no property taxes will be pledged for repayment of the Bonds.
The Bonds will be issued, pursuant to the Resolution and a Final Bond Resolution to be adopted by the City Council of the Issuer authorizing and confirming the sale of the Bonds, for the purpose to finance, in part, (i) the costs of acquisition and construction of water system improvements, including a new water treatment plant, and related improvements, and (ii) paying the costs of issuing the Bonds.
A draft of the Final Bond Resolution in substantially final form was before the City Council and was part of the Resolution at the time of its adoption by the City Council (collectively, the “Bond Resolutions”). The Final Bond Resolution is to be adopted by the City Council in such form and with such changes thereto as shall be approved by the City Council upon the adoption thereof; provided that the principal amount, interest rate or rates, maturity, and discount of the Bonds will not exceed the maximums set forth above.
Copies of the Bond Resolutions and information on the Issuer’s outstanding bonds are on file in the office of the City Recorder of the Issuer where they may be examined during regular business hours of the Issuer, from 9:00 a.m. to 5:00 p.m., Monday through Friday, for a period of at least thirty (30) days from and after the last date of publication of this notice.
NOTICE IS FURTHER GIVEN that, for a period of thirty (30) days from and after the last date of the publication of this notice, any person in interest shall have the right to contest the legality of the Resolution, the Final Bond Resolution, or the Bonds, or any provision made for the security and payment of the Bonds 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 December 20, 2022.
/s/ Elizabeth M. Holt
City Recorder
Published in the ETV Newspaper December 28, 2022.