|Source: Standard Examiner|
The city council voted Tuesday night to approve a resolution that sets the parameters for funding the bonds and sets a public hearing on the matter for Feb. 5.The bonds will not exceed $6 million, a 3.5 percent interest rate or a term of 25 years.
The state of Utah Department of Environmental Quality, Drinking Water Board has already offered to purchase the bonds. The city had previously issued $4 million in bonds to go toward the project.
The state drinking water board also agreed to purchase those bonds at an interest rate of 2.6 percent for a term of 20 years.
It is also expected that $13 million in bond funds will be requested in fiscal year 2014 to pay for the design and construction of a new water treatment plant near the eastern end of the canyon. The water line project began in early November. The city hired Brigham City-based Whitaker Construction for the $8 million project, which is expected to wrap up by April.
The 24-inch pipeline, nearly 100 years old, winds through Ogden Canyon and carries water from Pineview Reservoir to thousands of Ogden residents.
City officials say it’s a major water supply line to the city, but it’s in poor condition, and repairs just can’t be put off any longer.
Ogden City Engineer Justin Anderson said that when this project is finished, it will ensure continual water service for years to come. Standard Examiner