NOTICE OF PUBLIC HEARING AND BONDS TO BE ISSUED

NOTICE IS HEREBY GIVEN pursuant to the provisions of the Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended (the “Act”), that on January 24, 2024, the City Council (the “Council”) of Washington City, Utah (the “City”), adopted a resolution (the “Resolution”) in which it authorized the issuance of the City’s Water Revenue Bonds, Series 2024 (the “Series 2024 Bonds”) (to be issued in one or more series and with such other series or title designation(s) as may be determined by the City), and called a public hearing to receive input from the public.

TIME, PLACE, LOCATION AND PURPOSE OF PUBLIC HEARING

The City shall hold a public hearing on February 28, 2024, at the hour of 6:00 p.m. at 111 North 100 East, Washington City, Utah.  The purpose of the hearing is to receive input from the public with respect to (a) the issuance of the Series 2024 Bonds for the Project described herein and (b) any potential economic impact that the Project to be financed with the proceeds of the Series 2024 Bonds may have on the private sector.  All members of the public are invited to attend and participate.

PURPOSE FOR ISSUING THE SERIES 2024 BONDS

The Series 2024 Bonds will be issued for the purpose of (a) financing the construction of a new water tank and all related equipment, infrastructure and improvements (the “Project”), (b) funding a deposit to a debt service reserve fund, as needed, and (c) paying costs of issuance of the Series 2024 Bonds.  

PARAMETERS OF THE SERIES 2024 BONDS

The City intends to issue the Series 2024 Bonds in the aggregate principal amount of not more than Ten Million Dollars ($10,000,000), to mature in not more than twenty-one (21) years from their date or dates, to be sold at a price not less than ninety-eight percent (98%) of the total principal amount thereof and bearing interest at a rate or rates not to exceed six percent (6.0%) per annum.  The Series 2024 Bonds are to be issued and sold by the City pursuant to the Resolution and a General Indenture of Trust dated as of October 1, 2016, as previously supplemented and as further supplemented by a Second Supplemental Indenture of Trust to be entered into in connection with the Series 2024 Bonds (together, the “Indenture”) which were before the Council in substantially final form at the time of the adoption of the Resolution and said Supplemental Indenture is to be executed by the City in such form and with such changes thereto as shall be approved by the City; provided that the principal amount, interest rate or rates, maturity, and discount of the Series 2024 Bonds will not exceed the maximums set forth above. The City reserves the right to not issue the Series 2024 Bonds for any reason and at any time up to the issuance of the Series 2024 Bonds.

OUTSTANDING BONDS SECURED BY REVENUES

The City currently has $6,870,000 of parity bonds outstanding secured by the Revenues.  

OTHER OUTSTANDING BONDS OF THE CITY

Additional information regarding the City’s outstanding bonds may be found in the City’s financial report (the “Financial Report”) at:  http://secure.utah.gov/auditor-search/.  For additional information, including any information more recent than as of the date of the Financial Report, please contact Jeremy Redd, City Manager at (435) 656-6310.

TOTAL ESTIMATED COST OF BONDS

Based on the City’s current plan of finance and a current estimate of interest rates, the total principal and interest cost of the Series 2024 Bonds, if held until maturity, is $17,850,000.

A copy of the Resolution and the Indenture are on file in the office of the City Recorder, 111 North 100 East, Washington City, Utah, where they may be examined during regular business hours of the City Recorder from 7:30 a.m. to 5:30 p.m. Monday through Thursday and 8:00 a.m. to noon on Friday, for a period of at least thirty (30) days from and after the date of posting of this notice.

NOTICE IS FURTHER GIVEN that a period of thirty (30) days from and after the date of the first posting of this notice is provided by law during which (i) any person in interest shall have the right to contest the legality of the Resolution, the Indenture (only as it pertains to the Series 2024 Bonds), or the Series 2024 Bonds, or any provision made for the security and payment of the Series 2024 Bonds, and that after such time, no one shall have any cause of action to contest the regularity, formality, or legality thereof for any cause whatsoever.

DATED this January 24, 2024.

                /s/Tara Pentz                        

City Recorder