Hurricane authorizes up to $24 million in electric bonds for substations and a transmission line
The City Council on Oct. 1 set a $24 million ceiling on electric revenue bonds for two substations and a transmission line along SR-7. The city manager put the work at about $21 million and said he expects impact fees to make the payments; the bonds are pledged to electric system revenues.
Continuing story: Auditing Hurricane
Hurricane's City Council on Oct. 1 authorized up to $24,000,000 in electric revenue bonds to finance two substations and transmission lines. The resolution sets limits; it does not borrow the money. [1][3]
Councilmember Dave Imlay moved to approve Resolution 2026-35, subject to raising the maximum interest rate to 6.5%, and Amy Werrett seconded. The minutes record that it carried unanimously by roll call. [1]
The limits
The bond notice sets the maximums: $24,000,000 of principal, maturity no more than 26 years after issuance, a sale price of at least 98% of principal and an interest rate of no more than 6.50% a year. The packet draft had listed 6%, and staff wrote that the rate was a ceiling, not the expected rate. [3][2]
The bonds would be special, limited obligations payable from the electric system's net revenues. The notice says the city has no outstanding bonds secured by those revenues. It estimates total debt service of $48,832,200 if the bonds are held to maturity. [3]
The notice says the city may decide not to issue the bonds at any time before issuance. [3]
The projects
DeMille said the bonds would pay to finish the Sky Mountain Substation, build Substation #1 and build a transmission line along SR-7, according to the minutes. He estimated the cost at about $21 million, including contingencies, said some components had already been bought and called $24 million a conservative figure. [1]
The staff memo in the packet says the bonds are to be repaid from Power Fund revenues and that engineering is complete. At the meeting, DeMille said he expects to use impact fees to make the bond payments. [2][1]
A public hearing on the bonds is scheduled for Nov. 5, 2026, at 6 p.m. The notice opens a 30-day period to contest the resolution or the bonds. [3]
The $24 million is a maximum set by resolution, not an amount borrowed. The $21 million estimate and the expectation that impact fees will make the payments are the city manager's statements, not figures from a financial record The Ledger has seen.
Sources
- Hurricane City Council · Oct. 15, 2026 packet, with Oct. 1, 2026 council and Municipal Building Authority minutes
- Hurricane City Council · Oct. 1, 2026 meeting packet
- Hurricane City · Notice of bond hearing, Electric Revenue Bonds, Series 2027 (posted Oct. 2, 2026)
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.