Centerville votes for UTOPIA plan
Layton, the only other city in Davis County belonging to the fiber-optics network, voted to support the refinancing plan by a 3-2 vote on April 24.
Midvale, Lindon, Tremonton, West Valley City and Perry have also voted to support the plan.
Brigham City Council members expect to vote today. Orem's council plans to discuss the plan again Friday. Murray held a public hearing Monday and will vote May 5.
The Centerville vote was contingent on a similar vote by other member cities except for Payson, which is the only one of 11 member cities so far to vote down the refinancing plan. If any other cities vote against refinancing, Centerville has reserved the option to reconsider its position.
The refinance would trade $121 million in 20-year bonds for $189 million in 33-year bonds. UTOPIA hopes to garner at least $11 million in new capital, which it will use to build the second phase of its municipal fiber-optic network.
For the first two years of the plan, cities are in the clear. After that, if revenues on the network are insufficient to cover debt, the cities could be called on to pay their respective pledging amounts for 33 years.
If Centerville had voted no, it would immediately be forced to begin paying UTOPIA $334,126 a year for 20 years.
Payson's no vote means that city is on the hook for $259,920 annually in sales taxes until 2028. The city's other option was to agree to new financing that could put it on the hook for up to about $12 million over 33 years but would require no cash now.
Construction is basically complete in Payson, which has 700 UTOPIA subscribers.
In Centerville and Layton, two cities planned for UTOPIA's second phase, construction is at 25 percent and 15 percent respectively.
About 60 people attended the April 22 Centerville City Council meeting in which the council voted to give itself an extra week to think.
Most people who addressed the council opposed the idea of increasing the city's pledge amount in the bond restructuring that UTOPIA directors believe will breathe new life into the network.
Opposition has also come from the Utah Taxpayers Association, which has called the plan a "$504 million boondoggle."
Taxpayers association president Howard Stephenson said for UTOPIA member cities to try to play god with the economy is the height of arrogance and ignorance.
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