Clinton, with no bonds in 2025, authorizes up to $3.9 million in water borrowing

Clinton reported no outstanding bonds or notes at the end of fiscal 2025. Since then, the city council has authorized up to $3.9 million in water revenue bonds to replace water lines along state road projects, according to city records. ^[1][2]

The authorization

The fiscal 2025 report's discussion section says, "The City does not have any outstanding bonds or notes." Its long-term liabilities were compensated absences and the net pension liability. ^[1]

The Nov. 12, 2025 staff report names the Utah Board of Water Resources as the lender. The resolution says the bonds may not exceed $3,900,000, must "bear interest at a rate or rates not to exceed four percent (4%) per annum," may sell for no less than 98% of principal, and "shall mature in not more than twenty (20) years." ^[4]

An exhibit in the packet describes a 15-year term at 3.09% and says a water rate increase is needed to cover the project and debt service. ^[4]

The public notice, posted Dec. 1, 2025, says the council adopted the resolution on Nov. 12 and that the bonds are "special limited obligations of the Issuer payable from the net revenues" of the water system. It describes the term as "not more than thirty-two (20) years." ^[2]

The hearing

At a Jan. 13, 2026 public hearing, City Engineer Bryce Wilcox said the city's water improvements are tied to state road projects on 2000 West and 1800 North, and that aging water lines would be replaced alongside the road work to avoid higher future costs. ^[3]

The minutes put Clinton's share of the improvements at about $10 million, with about $4 million financed through the Board of Water Resources bond. Two residents asked about future rate increases. The hearing ran from 7:30 to 7:34 p.m., and no vote on the bonds was taken. ^[3]

Contracts and the budget

On Feb. 10, 2026, all five councilmembers voted yes on consent items that included four J-U-B Engineers contracts, the minutes say: $527,000 for a well project, half funded by the Bureau of Reclamation; $420,000 for a 2000 West waterline, half funded by an EPA grant program; $110,000 for a transportation master plan, 81% funded by the state; and $50,000 for an 1800 North waterline included in the Board of Water Resources bond. ^[6]

The well project's staff report lists $263,500 from a Bureau of Reclamation grant and $263,000 from water impact fees, which add to $526,500, $500 less than the $527,000 total. A separate state road agreement estimates $22,318.30 for waterline design, paid from the water fund. ^[7]

The draft fiscal 2027 water budget presented June 16 lists $2,000,000 from the Series 2026 bond, a $1,000,000 Bureau of Reclamation grant and $2,750,000 in metered water sales. ^[5]

Rates

At the same Feb. 10 meeting, the council confirmed that $4.18 per connection in water rate increases, $2.74 from July 2025 and $1.44 from March 2026, is the bond-related portion intended to end once the bond is repaid. Dougherty said that portion should sunset, according to the minutes. ^[6]