The Vernal City Council adopted a resolution on June 17, 2026, authorizing the issuance of Sales Tax Revenue Bonds. The bonds are intended to fund various infrastructure projects and related costs.
The proposed bonds will have an aggregate principal amount not to exceed $2,000,000. They are set to bear interest at rates not exceeding 0.50% per annum and will mature no later than 16 years from their issuance date. The bonds may be sold at a discount from par not exceeding 2.00%.
Funds from the bond issuance are designated for several purposes, including financing all or part of the cost of water and sewer system improvements. This project includes the installation of PVC sewer lines, manholes, bypass pumping equipment, water service connections and tie-ins, and HDPE and PVC water lines. Additionally, the bonds will fund necessary reserves and costs associated with the issuance and sale of the bonds.
Repayment for the bonds will be secured by a pledge of legally available revenues from Local Sales and Use Taxes received by the City. The City currently has $7,060,000 in outstanding bonds secured by these pledged taxes.
The estimated total cost to the City for the proposed bonds, if held until maturity based on current estimated interest rates, is $2,212,046.
A copy of the resolution and related documents are available for inspection at the office of the City Recorder, located at 374 East Main Street, Vernal City, Utah, during regular business hours from 8:00 a.m. to 5:00 p.m.
For a period of thirty days following the publication of the notice, any person in interest has the right to contest the legality of the resolution or the bonds.
