UTOPIA cities may have to pay this year
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"At this point in time, no tax dollars have been used on this project," Snarr wrote. "That may change and we may need to help pay for some of the operations until there are enough customers to cover expenses. I firmly believe that this is a valuable service and that it allows us as a city to expand our opportunities, to work more efficiently and to save money."
Unfortunately for UTOPIA, credit-swap markets are still less stable than they were projected to be a year ago, and the fiber-optic company continues to spend more money on the variable-rate bonds than expected, Sudweeks said. The pool of money set aside to pay interest payments through next June is continually shrinking and could continue to do so, he said.
But it's not all bad news for Utah's sole fiber-optic municipal infrastructure project. UTOPIA persuaded around 30 percent of newly eligible customers to join within weeks of entering new markets. UTOPIA also has several new service providers that compete with one another to provide service directly to homes and businesses.
Continued progress could eventually result in positive cash flow so the only people paying for the network are those using it, said UTOPIA sales director Hugh Matheson.
"You've given us a humongous task to overcome," Marriott said. "We can do it."
Maximum amount cities could be forced to pay:
Brigham City$389,500
Centerville$387,378
Layton$1,944,240
Lindon$357,878
Midvale$705,293
Murray$1,431,877
Orem$2,538,695
Payson$259,920*
Perry$95,549
Tremonton$293,872
West Valley$3,254,373
* Payson is only required to pay the amount it pledged in 2004 because the municipality opted out of the 2008 refinance.
E-MAIL: rpalmer@desnews.com
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