UTOPIA cities may have to pay this year

Published: Wednesday, June 17, 2009 10:55 p.m. MDT
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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

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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

Recent comments

I live in Centerville and have access to only one "open" network:...

Centerville Resident For Utopia | June 19, 2009 at 7:42 a.m.

I live in Kaysville and pay $56 for Comcast, their cheapest Internet...

Rick | June 18, 2009 at 5:24 p.m.

Now is the time for all the original UTOPIA directors to face civil...

Against it from the start | June 18, 2009 at 4:58 p.m.

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