The Vernal City Council authorized the issuance of water and sewer revenue bonds in an amount not to exceed $2,000,000, according to an August 20 notice. The resolution to issue the bonds was adopted by the council on August 19, 2026.
The bonds are intended to finance improvements to the city's water and sewer system. These projects include the installation of PVC and HDPE water lines, water service connections, PVC sewer lines, manholes, and bypass pumping equipment. The bonds will also cover costs associated with the issuance and sale of the bonds.
According to the notice, the bonds will mature in no more than 27 years from their date of issuance and will bear interest at a rate not exceeding 0.50% per annum. The bonds will be sold at a discount from par of no more than 2.00% and will be secured by system revenues and other funds.
The city currently has $5,562,927 in outstanding bonds secured by system revenues. If the new bonds are held until maturity, the estimated total cost to the city is $2,015,375 based on current estimated interest rates.
The resolution and related indenture drafts are available for public inspection at the issuer's office at 374 East Main Street during regular business hours. Any person interested has the right to contest the legality of the resolution or the bonds for a period of thirty days following the publication of the notice.
