A court judgment has put this city's budget into a recession.
The 6th District Court has required Manti to dig up $95,531.38 to settle a judgment in favor of Call Engineering in a breach-of-contract suit.And the amount of the judgment will continue to build at an annual rate of 12 percent in interest charges until the obligation is retired.
The City Council is considering a number of ways of meeting the obligation including a bond issue, a franchise tax and user fees. The options are limited, however, since property taxes and user fees were raised this year.
The 6th District Court judgment followed several years of litigation. The action was initiated by Call Engineering when the company filed a breach of contract suit against the city in connection with a sewer project.
After the company had completed the planning phase of the project, the city contracted with another firm to handle the installation phase.
Call Engineering alleged that its contract covered both phases of the sewer installation. A jury awarded Call $13,000.
Call appealed this judgment, and the Utah Court of Appeals ruled in Call's favor and remanded the case back to the District Court.