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Excise Tax Road Revenue Bonds
NOTICE OF PUBLIC HEARING AND BONDS TO BE ISSUED
NOTICE IS HEREBY GIVEN pursuant to the provisions of the Utah Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended, that the City Council (the “Council”) of Vernal City, Utah (the “Issuer”), declared its intention to issue Excise Tax Road Revenue Bonds, in one or more series (the “Bonds”) in the aggregate principal amount of not more than $225,000, the Bonds bearing interest at a rate of two and one-half percent (2.50%) per annum, to mature in not more than ten (10) years from their date or dates, and to be sold at a price not less than 99% of the total principal amount thereof. The estimated total cost of the Issuer for the proposed Bonds, if the Bonds are held until the maximum maturity, based on the maximum interest rate above, is not more than $254,529. However, the Issuer anticipates that the Bonds will not be issued in an amount in excess of $200,000, bearing interest at a rate of two and one-half percent (2.50%) per annum, to be repaid over eight (8) years, in which event the amount to be repaid will be approximately $223,814. Presently, the Issuer has no outstanding bonds secured by a pledge of excise tax road revenues. The State of Utah Permanent Community Impact Fund Board has authorized a grant to the Issuer in the amount of $1,200,000, none of which will need to be repaid. The Issuer is also seeking a federal grant for this project in the amount of $1,200,000, none of which will need to be repaid.
NOTICE IS FURTHER GIVEN that the Issuer will hold a public hearing for the purpose of inviting public comment on the proposed issuance of the Bonds and the economic impact that the improvements proposed to be financed with the Bonds will have on the private sector. The public hearing will be held on April 3, 2019 at 7:00 p.m., or as soon thereafter as feasible, at 374 East Main Street, Vernal, Utah. All members of the public are invited to attend and participate.
The Issuer proposes to pledge 100% of the Class B & C Road Funds received by Issuer pursuant to Sections 72-2-107 through 72-2-110, Utah Code Annotated 1953, as amended, for repayment of the Bonds. As Taxable Excise Tax Road Bonds, no property taxes will be pledged for repayment of the Bonds.
The Bonds will be issued pursuant to a Parameters Resolution and a Final Bond Resolution (the “Bond Resolutions”) to be adopted authorizing and confirming the sale of the Bonds (the “Final Bond Resolution”) for the purpose to (i) finance a portion of the costs of the acquisition and construction of road improvements, and related improvements, and (ii) paying the costs of issuing the Bonds.
A draft of the Final Bond Resolution in substantially final form has been presented to the City Council. The Final Bond Resolution is to be adopted by the City Council in such form and with such changes thereto as shall be approved by the City Council upon the adoption thereof; provided that the principal amount, interest rate or rates, maturity and discount of the Bonds will not exceed the maximums set forth above.
Copies of the Bond Resolutions and information on the Issuer’s outstanding bonds are on file in the office of the City Manager/Recorder where they may be examined during regular business hours between 8:00 a.m. and 5:00 p.m. Monday through Friday for at least 30 days from and after the first date of publication of this notice.
NOTICE IS FURTHER GIVEN that, for a period of thirty (30) days from and after the first date of the publication of this notice, (1) any person in interest shall have the right to contest the legality of the Resolution, the Final Bond Resolution, or the Bonds, or any provision made for the security and payment of the Bonds by filing a verified written complaint in the district court of the county in which he/she resides, and that after such time, other than referendum rights, no one shall have any cause of action to contest the regularity, formality or legality thereof for any cause whatsoever, and (2) registered voters within the Issuer may sign a written petition requesting an election to authorize the issuance of the Bonds. If written petitions which have been signed by at least 20% of the registered voters of the Issuer are filed with the Issuer during that 30-day period, the Issuer will be required to hold an election to obtain voter authorization prior to the issuance of the Bonds. If fewer than 20% of the registered voters of the Issuer file a written petition during that 30-day period, other than referendum rights, the Issuer may proceed to issue the Bonds without an election.
DATED this March 6, 2019.
Quinn BennionCity Manager/Recorder