Cedar Hills pledged up to $362,000 a year in taxes as a backstop for its fiber bonds
The Utah Infrastructure Agency borrowed $5,965,000 in 2022 to build Cedar Hills' fiber network, with city tax revenue pledged if subscriber revenue falls short. The agency reports 35% of available addresses subscribed in mid-2025, and UTOPIA's director told the council in August the system should cost the city nothing.
Continuing story: Auditing Cedar Hills
In 2022 the Utah Infrastructure Agency issued $5,965,000 in Telecommunications, Franchise and Sales Tax Revenue Bonds for a fiber network in Cedar Hills. Subscriber revenue is the first source of repayment; Cedar Hills' taxes are a backstop. [1]
The pledge
Under the official statement, Cedar Hills pledged energy sales and use tax and telecommunications license tax revenue up to a "combined maximum annual amount of $182,000" and local sales tax up to "a maximum amount of $180,000," for "a total maximum, annual pledge of $362,000." [1]
The pledge applies "in the event and to the extent there is a shortfall in the Service Revenues available to pay debt service." Tax revenue the city advances is treated as a loan to the agency, documented by a promissory note and repaid on a subordinate basis from future network revenue, with interest at the state treasurer's investment fund rate unless a lower rate is agreed. [1]
Cedar Hills' own fiscal 2025 audit describes the city's backup pledge for average annual payments of $360,000 and says any city contributions will be repaid by the agency after the debt service is paid off. [3]
Subscribers and debt
The agency's fiscal 2025 financial statements show $5,850,000 of the Cedar Hills bonds outstanding at June 30, 2025, after $115,000 in principal was retired during the year, with $120,000 due within the following year. [2]
In its management discussion, which is not covered by the auditor's opinion, the agency says the Cedar Hills project was substantially completed in fall 2023 and had 927 subscribers of 2,643 available addresses at June 30, 2025, a 35% take rate. [2]
The August update
At the Aug. 18, 2026 council meeting, UTOPIA Fiber Executive Director Roger Timmerman said Cedar Hills was ahead of projections in timing and subscribers, and that customer revenue helps pay down the bonds. He said the system should cost the city nothing and is fully sustainable, according to the minutes. The council took no action. [4]
These are the Utah Infrastructure Agency's bonds, not Cedar Hills' own debt, and are not added to the city's bond totals. The $362,000 is a maximum annual pledge, not an amount paid. The records reviewed do not state whether the city has made any payments under it.
Sources
- Utah Infrastructure Agency · Series 2022 (Cedar Hills Project) bonds official statement
- Utah Infrastructure Agency · FY2025 financial statements
- Cedar Hills City · FY2025 annual comprehensive financial report, long-term debt note
- Cedar Hills City Council · Aug. 18, 2026 minutes
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.