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Water in Eagle Mountain has always been a issue of concern. Eagle Mountain is in the high desert, and as such water is usually at a premium. If you review the bond history of Eagle Mountain, you will see considerable money has been spent on building, maintaining, and running the water and sewer system that services Eagle Mountain.
On October 17, 20017 the Eagle Mountain City Council voted to pass two bonds. The first vote was to authorize the issuance and sale of not more than $5,000,000 aggregate principal amount of water and sewer refunding bond. This bond is a revenue bond. A revenue bond is on that is paid by revenues collected by the city, in this case it will be paid from money collected from residents for their water and sewer usage. Paul Jerome, Assistant City Administrator/Finance Directory explained during the meeting, “This bond issue, called a Series 2017A, was for the refunding of the City’s 2007 Water and Sewer Revenue Bonds at a reduced rate. The term of the bonds will not increase, but a lower interest rate would lower the annual payments. The money saved would be used to shorten the term of the bonds by one year… It did not incur debt for the city.” Councilmember Bradley also pointed out during the meeting that this is a bond refinancing, and “was the same as refinancing other financial products.” This revenue bond was passed by a unanimous vote.
The second bond was for $1.5 million. It also is a Water and Sewer revenue bond. This bond will incur additional debt for the city. Paul Jerome, explains, “This bond issue, called Series 2017B, was for the authorization and issuance of water and sewer revenue bond for the construction of a sewer pipeline and pump station and repairs to the existing sewer system for the White Hills subdivision. The bonds would have a 32-year term and be paid back primarily by a 1% state loan and a state grant. The pipeline would connect the White Hills sewer system to Eagle Mountain’s wastewater plan.
During the discussion Councilmember Westmoreland, current Mayor Elect, asked about the revenue sources that would be used to pay off the bonds. Jeremy Cook, contracted to serve as the City’s Attorney, explained, “… White Hills sewer system was operated by the White Hills Special Service District. It was a lagoon system, and the lagoons failed. They needed to be replaced by a pipeline to the wastewater plant. User rates for the new system would normally be over $50/month; however, the City had promised residents of White Hills essentially the same user rate as the South Service Area. Because these fees would be inadequate to operate the sewer system, other revenue for payments was necessary. These bonds would make up part of that revenue.” Mr. Cook continues, “Tentative arrangement was for the developers to pay enough impact fees to cover any shortfall in the debt service payments for the first five years. The City would also receive funds from the sale of the lagoon property. The combination would provide enough to cover the debt service payments for the first 10 years.”
This bond passed with a 3:1 vote. Councilmember Curtis was the Nay vote. When asked why he voted against this bond, he gave this statement. “I personally voted no on the bond not because I think the issues in White Hills don’t need to be taken care of, they do. However, it is my opinion that it is the developer’s responsibility to bring those systems up to the standard needed for transfer of systems to Eagle Mountain utilities. As is, the developer will pay 80% of the bond, that’s a good thing, but with this bond being 30 years long, and with the pledge and money currently outlined in the agreement, the developer would only guarantee payment for about 5 years, with other funds from the developer guaranteeing EM can make the payments for roughly 14 years.. That leaves the residents of Eagle Mountain on the hook for years 15-30 should the Pole Canyon developer choose not to continue to build. I expect the developer to hold all of the risk on that bond, they currently aren’t.”
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[pdf-embedder url=”https://cedarvalleysentinel.com/wp-content/uploads/2021/03/10.17.2017-Approved-City-Council-Minutes.pdf” title=”10.17.2017 Approved City Council Minutes”]
Mike Kieffer is an IT geek by hobby and trade, with a BS in Information Systems & Technology. He is a proud father of 10, a grandpa, an author, a journalist, and internet publisher. His motto is to “Elevate, Inspire and Inform”, and he is politically conservative and a Christian. Mike has a passion for technology, writing, and helping others. With a wealth of experience, he is committed to sharing his knowledge with others to help them reach their full potential. He is known for his jackassery or his form of self-expression that encourages boldness, creativity, and risk-taking. It can be a way to push the boundaries and challenge traditional norms, leading to creative solutions and positive change.