4 cities OK UTOPIA refinance; Payson shoots it down

With Payson out of the game, the total taxpayer risk in the finance plan is about $490 million. Cities will only have to pay on that risk if UTOPIA is unable to pay for its bonds. Thus far, no tax money has been used.

Brigham City, Layton, Murray and Perry have yet to vote on the refinance. Murray will vote on Monday, the others on Thursday. If more than a few cities pull out, UTOPIA may have to go back to the finance drawing board, said UTOPIA public relations representative Melissa Johnson. Each city that leaves takes with it possible capital.

If only a few cities vote down the proposal, however, the plan will move forward, Johnson said.

The need to refinance comes four years after the 11 cities agreed to be part of UTOPIA. Since then, UTOPIA has fallen far short of its projections. Its operating costs are now breaking even, but the public telecommunication utility is facing bond payments it is unable to meet.

UTOPIA admits it has made mistakes but is confident that new financing partners and a large-scale advertising plan will keep it afloat.

"For me personally, (UTOPIA) has provided a great benefit," Todd Seager told the Lindon City Council. "I work from home in a tech job and I would not be able to do that without UTOPIA."

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Contributing: Jens Dana, Sara Israelsen-Hartley, Amy Choate-Nielsen, Joseph M. Dougherty and Laura Riddle

E-mail: rpalmer@desnews.com

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