The Utah Infrastructure Agency authorized the issuance of tax-exempt telecommunications revenue bonds totaling up to $25 million on Sept. 8, 2026, to fund the expansion of a fiber optic advanced communications network. The agency has scheduled a public hearing for Oct. 5, 2026, to discuss the bonds and the project's potential economic impact on the private sector.
Project Financing and Purpose
The proposed issuance, designated as the Agency's Tax-Exempt Telecommunications Revenue Bonds, Series 2026, is intended to finance the acquisition, construction, and installation of advanced communication lines, equipment, and related facilities. These improvements are part of a larger fiber optic advanced communications network project.
According to the agency, the funds will also be used to cover required deposits to a debt service reserve fund, provide for capitalized interest if necessary, and pay for the costs of issuing the bonds. The bonds will be special limited obligations of the Agency, payable from revenues generated by the fiber optic network.
Bond Parameters and Costs
The Agency intends to issue the bonds for an aggregate principal amount of no more than $25 million. The bonds are expected to carry an interest rate not exceeding 6.00% per annum and will have a maturity period of no more than 27 years from their issuance date. The bonds are expected to be sold at a price of at least 97% of the total principal amount.
Based on current financial plans and interest rate estimates, the total principal and interest cost of the bonds, if held until maturity, is estimated at $43,965,000.
Public Input and Existing Debt
The Utah Infrastructure Agency currently has $268,075,000 in outstanding bonds secured by the revenues of the fiber optic network. While the agency has other outstanding bonds, those are secured by different revenue sources.
A public hearing to receive input on the issuance and the project's economic impact is set for 8:30 a.m. on Oct. 5, 2026, at the agency offices located at 5858 South 900 East in Murray, Utah. All members of the public are invited to attend and participate.
Legal Review Period
The resolution authorizing the bonds was adopted by the Agency's Board of Directors on Sept. 8, 2026. Under the law, a 30-day period from the date of the notice is provided for any interested person to contest the legality of the resolution, the indenture, or the bonds.
Copies of the resolution and the indenture are available for public examination at the Agency's Murray offices during regular business hours, from 8:00 a.m. to 5:00 p.m., Monday through Friday.
Regulatory Framework
The bonds are being issued pursuant to the Utah Interlocal Cooperation Act and are governed by a General Indenture of Trust dated Dec. 1, 2017, and a Ninth Supplemental Indenture of Trust. Jason Roberts, the Agency's Chief Financial Officer and Secretary/Treasurer, is the point of contact for additional information regarding the bonds.
Further Information
Additional details regarding the Agency's bonds can be found in its official financial report, which is available through the Utah Auditor's website.
Hearing Location
The public hearing will take place at the Utah Infrastructure Agency offices at 5858 South 900 East, Murray, Utah.
