PUBLIC NOTICE IS HEREBY GIVEN that on July 16, 2020, the Board of Trustees of Spanish Valley Water & Sewer Improvement District (the “Issuer”), adopted a resolution (the “Resolution”) declaring its intention to issue its Parity Sewer Revenue Bonds (the “Bonds”) pursuant to the Utah Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended and to call a public hearing to receive input from the public with respect to the issuance of the Bonds.
TIME, PLACE AND LOCATION OF PUBLIC HEARING
The Issuer shall hold a public hearing on August 20, 2020, at the hour of 7:00 p.m. The location of the public hearing is in the Grand Water and Sewer Administration Building, 3025 Spanish Trail Road, Moab, Utah. The purpose of the meeting is to receive input from the public with respect to the issuance of the Bonds and any potential economic impact to the private sector from the construction of the Project to be funded by the Bonds. All members of the public are invited to attend and participate.
PURPOSE FOR ISSUING BONDS
The Issuer intends to issue the Bonds for the purpose of (i) financing all or a portion of the cost of construction of sewer system improvements, including design and construction of two wastewater interceptor segments, installation of new sewer meter equipment, replacement of sewer mains in the Highlands and Shumway areas and other related improvements; and (ii) paying costs of issuing the Bonds.
PARAMETERS OF THE BONDS
The Issuer intends to issue the Bonds in the principal amount of not to exceed $2,000,000, to bear interest at a rate not to exceed 3.0% per annum, to mature in not more than 35 years from their date or dates, and to be sold at a price not less than 100% of the total principal amount thereof, plus accrued interest to the date of delivery. The Bonds will specify that any installment of principal and/or interest on the Bonds which shall not be paid when due shall bear interest at the rate of 18% per annum from the due date thereof until paid.
OUTSTANDING BONDS SECURED BY THE SAME REVENUE
The Issuer currently has outstanding bonds secured by the pledge of wastewater system revenues, namely: the Parity Sewer Revenue Bond, Series 1996 in the original principal amount of $589,000 payable to the USDA Rural Development, and its Parity Sewer Revenue Bond, Series 1996 in the original principal amount of $225,000 payable to the Utah Permanent Community Impact Fund Board.
ESTIMATED TOTAL COST OF THE BONDS
Although the Issuer has authorized the issuance of Bonds in the total amount of not to exceed $2,000,000, the Issuer anticipates the Bonds will actually be issued in the principal amount of $1,588,000. If that were the case, the estimated total cost to the Issuer for the proposed Bonds is $1,845,940, including an estimated cost of interest of $257,940.
NOTICE IS FURTHER GIVEN that a period of 30 days from and after the last date of publication of this Notice is provided by law during which any person in interest shall have the right to contest the legality of the Resolution or the Bonds, or any provision made for the security and payment of the 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.
A copy of the Resolution is on file at the District Office, 3025 Spanish Trail Road, Moab, Utah, where it may be examined during regular business hours from 8:00 a.m. to 5:00 p.m., Monday through Friday.
DATED this 16th day of July, 2020.
/s/ Rick Thompson, Secretary
Published in The Times-Independent, Moab, Utah, July 23 and 30, 2020.