From Deseret News archives:
Cities asked to boost money for UTOPIA
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Brigham City is considering adding $25,000 to its initial pledge of $333,000, Christensen said, but she believed the money would be included in the refinancing.
Centerville's Lutz is confident the refinanced bonds decrease the chance the consortium would ever have to call on its member cities to use the pledged tax dollars to repay the bonds.
No tax dollars have been used to build the network.
This is the first time UTOPIA has asked for an increase in pledge amounts, Lutz said.
UTOPIA officials initially expected to be profitable by 2006. Last fall they adjusted their projection and predicted the network would break even this year.
UTOPIA officials recently made a presentation to Centerville officials during a work meeting and said they plan to revise the consortium's marketing plan, Centerville Mayor Ron Russell said.
Russell said his council is concerned about the request for more money and must figure out if it's worth it for UTOPIA to default on its bonds or if it's better to pledge more money so that the consortium might turn things around.
Lutz said the council may not vote on the issue tonight. UTOPIA would like to have an answer by May 1, he said.
Centerville's public hearing is set for 8 p.m. during the council's regular meeting at City Hall, 230 N. Main.
E-mail: jdougherty@desnews.com, twalch@desnews.com
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