From Deseret News archives:
Cities asked to boost money for UTOPIA
Initially, 11 cities pledged $202 million in sales-tax revenue to back the bonds issued to build a network that would bring cutting-edge, high-speed Internet right to the doors of their businesses and homes.
Now those cities and others that have joined UTOPIA are considering refinancing the bonds. The move would provide millions more for network construction, but it also would require the cities to pledge more tax revenue to back the bonds.
The Lindon and Centerville city councils are holding public hearings on the matter tonight. If they approve the change, each would see their pledges increase by $50,000 a year.
Centerville has been a member of UTOPIA since 2004. It pledged $4.8 million over 20 years, said Blaine Lutz, the city's financial director. The new pledge amount would be $7.7 million over 32 years.
Payson will consider the subject in its City Council meeting on Wednesday, and UTOPIA is on the agenda in Brigham City and Layton on Thursday. The other UTOPIA cities are expected to discuss the proposal to issue new bonds within the next three weeks.
"The first bonding put $202 million at risk in sales-tax pledges," Van Tassell said. "The new bond structure increases the risk to $351 million."
UTOPIA spokeswoman Maura Carabello said the extended life of the new bonds does raise the pledge amounts but also makes them more secure. The new bonds will be structured with lower payments in the first few years, graduating to much higher payments at the end of the 33-year term. That would decrease the pressure on the system to generate revenue right away.
"It's a rather common finance structure and a proven finance structure," Carabello said.
UTOPIA's board of directors voted earlier this month to issue $189 million in new bonds. Some of that money would retire $135 million of the initial bonds issued by the project. About $20 million would be created to fund more construction, Carabello said.
Brigham City Mayor LouAnn Christensen said the new bonds will bridge a gap in funding.
"There have been a number of challenges come our way," she said, "but we believe this addresses those challenges and gives us the best opportunity to succeed."
Recent comments
Centerville city posted the public notice so deep in the city website...
Arthur Dent | April 1, 2008 at 10:19 p.m.
I told UTOPIA at every public meeting they held in cities they were...
Lone Voice | April 1, 2008 at 9:58 p.m.
This is what happens to a venture that was designed after the iProvo...
All The Same | April 1, 2008 at 9:38 p.m.
- 2 citations issued at Y.-U. game 12:26 a.m.
- No drugs in driver of Am.F. band bus 12:15 a.m.
- Governor Mansion to begin free tours 12:14 a.m.
- Head of Mexico Consulate dies 12:14 a.m.
- Gas pipeline gets preliminary OK 12:13 a.m.
- 10-year-old's 911 call saves mom 12:12 a.m.
- Jazz photo gallery 12:07 a.m.
- Scholars defend 'Messiah' 12:04 a.m.
- Max Hall did right thing after tirade 12:04 a.m.
- Make way for the human mop 12:03 a.m.
- Hall's pain reflects self-betrayal
- Y. student vanished in China
- Max Hall issues apology
- Utes won't respond to Hall
- Hall reprimanded by MWC
- Cougs begin bowl preparations
- Boy shot following traffic stop
- Mitchell called intelligent, controlling
- Matthews passes new Jazz tests
- U. eyes bowl for redemption
- Hall mouths off about hate of Utah
898 - Cougars beat Utes in overtime
481 - Max Hall issues apology
379 - Hall reprimanded by MWC
370 - Hall's pain reflects self-betrayal
316 - Utes won't respond to Hall
257 - BYU is champion of the state
140 - Man trapped in Nutty Putty cave dies
121 - Cave to be sealed with body inside
120 - Religion in politics is tiresome
110
Live 'Twittologue' Dec. 2, 4:00 p.m. with Jason Chaffetz. Click for more.
I wanted to tell them not to go. I dropped subtle hints. "My money is on...
When I was a kid, I worshipped my grandpa. He was undoubtedly my hero....
There are some games I love not on your list. Arkham Asylum for one.
Our parents made my brothers help kill and clean our rabbits before we ate...
Why would you keep it open? I would understand if there was a lot of amazing...
The government will run our health care well? Read Reader's Digest, November...
TCU stomped on the MWC so they are naturally ready to crush Florida, Alabama...
could you understand Dave Locke any more than my mom does and she is not even...
Attending the ND/BYU game 3 years ago in south bend, a couple of things stuck...
I missed the game, actually i heard a little bit of Locke on the radio (man...
quotes were good: Article was dumb and unnecessary.
I believe the art depicting Joseph looking at the plates may possibly be...

