Request For Public Comment On Culinary Water Bonds
Dear Culinary Water Users:
Fairview City (hereinafter “City”) has applied to the Utah Drinking Water Board (hereinafter “DWB”) for a loan to be used for the construction of culinary water system improvements for the City, including redevelopment of springs, installation of perforated and solid collection pipes, spring lining, concrete spring collection box construction and transmission line, together with related improvements.
The total estimated project cost is $240,000. The project will be funded with a loan from the DWB in the amount of $240,000. The loan is at 2.5% interest and repayable as follows:
| Bond (Loan) payable | Interest Rate | Term(years) | Annual Payment | Required Annual Reserve Payment | Total Annual Payment |
| $240,000 | 2.5% | 30 | $11,975 | $1,100 (Years 1-10) | $13,075 |
The indebtedness will be paid exclusively from water user fees and not from any property tax.
In order to pay the new bond indebtedness (loan) the City is proposing an increase in culinary water user charges per month per connection (user) as follows:
| User Classification | Base Rates |
| In-City Customers | $42.00 Includes 6,000 gallons of culinary water |
| Out-of-City Customers | $51.50 Includes 6,000 gallons of culinary water |
Overage Rates – same rate for both in and out of city customers
| $3.00/1,000 gallons | For usage above 6001 to 10,000 gallons over base |
| $3.50/1,000 gallons | For usage above 10,001 to 18,000 gallons over base |
| $4.00/1,000 gallons | For usage above 18,001 to 30,000 gallons over base |
| $4.50/1,000 gallons | For usage above 30,001 to 40,000 gallons over base |
| $5.00/1,000 gallons | For usage above 40,001 to 50,000 gallons over base |
| $5.50/1,000 gallons | For usage above 50,001 to 60,000 gallons over base |
| $6.00/1,000 gallons | For usage above 60,001 to 70,000 gallons over base |
| $6.50/1,000 gallons | For usage above 70,001 to 80,000 gallons over base |
| $7.00/1,000 gallons | For usage above 80,001 to 90,000 gallons over base |
| $7.50/1,000 gallons | For usage above 90,000 to 100,000 gallons over base |
| $8.00/1,000 gallons | For usage above 100,001 to 110,000 gallons over base |
*For usage over 10,001, use the same formula for each 10,000 gallons used.
City will hold a public hearing at the City Offices on April 23, 2020 at 7:30 p.m. to receive public comment on the loan and the intended project. In the event traditional meetings are being discouraged because of the COVID-19 or other rules, regulations or executive orders, those wishing to participate in the public hearing may call the following number: (435) 427-0233, PIN 1515, prior to the meeting to connect to the meeting or receive instructions to do so. Anyone wishing to submit written comment may The do so any time prior to the public hearing. Written comments should be addressed to:
Fairview City
P.O. Box 97
Fairview, UT 84629
Sincerely yours,
FAIRVIEW CITY
The following may be used for written comment and returned to the City Recorder:
Name:
In Favor: __________ Not in Favor: __________
Comments:
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