Herriman budget lists $28.9 million in water bonds that still need council approval

Herriman's adopted two-year budget includes $28,906,600 in bond proceeds for water projects: $16,787,600 in fiscal 2027 and $12,119,000 in fiscal 2028. The budget message describes them as the first phase of projects, totaling $28.9 million, from a water rate study and master plan update completed in March 2024. ^[1][5]

The proceeds are split between two funds. The Water Capital Projects Fund lists $6,562,000 in fiscal 2027 and $6,624,000 in fiscal 2028, and the Water Impact Fee Fund, which covers the share of projects tied to growth, lists $10,225,600 and $5,495,000. ^[2][6]

Both fund pages say the projects will likely be phased over several years, with bonding at that time, and that "for full transparency, all projects to be considered for bonding are included in this budget." ^[2][6]

A later vote

When the council adopted the budget on June 18, 2026, Maurer said water bond proceeds were included in both years for transparency and that "the timing of the bond issuance would require future Council approval," the minutes say. The council voted 5-0 to adopt the budget. ^[3]

The June 18 and Aug. 26 council minutes reviewed for this story do not record a vote to issue them. ^[3][4]

A separate page for the city's capital projects bond fund says a second bond is anticipated in fiscal 2028 but its amount is not certain, and a budget amendment would be needed if it is issued. ^[7]

Water rates

On Nov. 12, 2025, the council voted 5-0 to approve a 6.5% increase in water prices for 2026, according to the city's meeting recap. The recap lists 6.5% forecasts for 2027, 2028 and 2029, down from earlier forecasts of 13%, 9.5% and 3%, and says the plan will be reviewed annually. Those later increases are forecasts, not adopted rates. ^[8]

Refinancing limits

On Aug. 26, 2026, the council voted 5-0 to approve Resolution R37-2026, which sets limits for refunding sales and franchise tax revenue bonds. Maurer said the series had about $14.3 million outstanding and that "market conditions at the time of the meeting were unfavorable for refinancing." ^[4]

The resolution allows up to $16 million in principal, a maturity of up to 10 years, an interest rate no higher than 6% and a sale price of at least 98% of par. It designates Maurer and City Manager Nathan Cherpeski to act if savings become available; Stifel is the underwriter. The packet includes draft bond documents. The records reviewed do not show that a refunding has been sold. ^[4][9]

Existing debt

At June 30, 2025, the city had $73,447,000 in revenue bonds outstanding, including $24,435,000 in water bonds, and no general obligation bonds. It issued $16,330,000 in sales and franchise tax revenue bonds during fiscal 2025. ^[10]