UTOPIA may face tough test

The agreement also outlines the benefits and responsibilities for two types of member cities. Cities who paid out money to back bonds will also share in not only revenue generated by their city's network but a portion of the total UTOPIA network. Morris said an exact revenue-sharing formula has yet to be created.

A second class are non-paying cities. These are cities whose city councils voted not to dedicate sales tax revenue but chose to remain UTOPIA members. Morris said non-paying member cities will not share in network profits but will be offered a chance to hook into UTOPIA several years from now if the city's council votes to back new bonds with sales tax revenue.

Qwest president for Utah Jerry Fenn, who has long been an opponent of UTOPIA, said UTOPIA officials need to take a more careful look at things.

"There are many questions about the UTOPIA project that remain unanswered and that impact the risk to taxpayers," Fenn said.

Morris said UTOPIA cities will hold public hearings between June 15 and June 24 before officially voting on the agreement. If passed by all cities, the agreement would then be made a part of UTOPIA's portfolio, presented to lenders for the bonds.

---

E-mail: gfattah@desnews.com