Lindon sets borrowing limits of up to $7.4 million for water bonds and separate limits for sewer bonds

Lindon's City Council adopted resolutions on Sept. 21, 2026, setting the maximum terms for two utility bond issues, according to public notices the city posted that day. ^[1][2]

For water, the resolution allows up to $7,400,000 in revenue bonds, maturing within 25 years, at a maximum interest rate of 5.5% and a sale price of at least 98% of principal. The bonds would pay for well and pipe connections, water pipeline replacement and related work, and would be repaid from the water system's net revenues. ^[1]

For sewer, the resolution allows up to $3,500,000 for sewer system improvements, including pipe upsizing, and up to $1,700,000 to refund outstanding sewer revenue bonds, with the same 25-year and 5.5% limits, repaid from the sewer system's net revenues. ^[2]

The notices estimate total debt service, if the bonds are held to maturity, at $11,060,175 for water and $4,773,847.22 for sewer, based on current estimates. Public hearings on both were set for Oct. 5. ^[1][2]

What the council discussed

Draft minutes of the Sept. 21 meeting, included in the Oct. 5 packet, say the water resolution set "a maximum of $7,400,000, providing a cushion above the anticipated borrowing amount of $7,000,000." Public Works Director Juan Garrido said "the total estimated cost of the three-year water program is approximately $11,000,000 to $13,000,000." ^[3]

Hoyt asked "whether it was cost-effective to borrow the full $7,000,000 upfront when approximately $4,000,000 would not be needed until year three," and requested a comparative analysis from staff and the city's financial advisor at LRB, the draft minutes say. Adopting the resolution "would allow the necessary information to be gathered before final decisions are made." The council approved it 5–0. ^[3]

On sewer, the draft minutes describe "an anticipated actual borrowing of approximately $3,000,000" and "the refunding of up to $1,700,000 in two existing sewer revenue bonds," one tied to a Geneva Road lift station and one to a prior sewer plant expansion. Cowie said the restructuring would not change interest rates, principal or payment schedules. The council approved it 5–0. ^[3]

Draft sale documents

A financing illustration in the Oct. 5 packet, generated Sept. 9, models $6,885,000 in water bonds with a $273,733.35 reoffering premium, $7,000,000 deposited to the project construction fund, $124,308.35 in costs of issuance and a $34,425 underwriter's discount. It assumes delivery Nov. 5, 2026. ^[3]

The draft preliminary official statement in the packet marks the $6,885,000 amount "Preliminary; subject to change" and leaves the rating blank. The Oct. 5 agenda listed resolutions authorizing preliminary official statements for both issues. Minutes of that meeting had not been posted when this story was published. ^[3][4]

The well project

On Aug. 17, the council voted 4–0 to award the Well #5 well house construction bid to Corrio Construction for $2,147,230, contingent on acceptable financing through a water infrastructure bond, according to the approved minutes. Staff reported four bids and said Corrio was the low bidder and scored highest on the evaluation matrix. ^[5]

The minutes say the amount was well below the $4.5 million budgeted, and describe about $865,000 in separate water main upsizing, for a total bonding request of about $3.1 million at that time. ^[5]

The fiscal 2027 budget message says the budget includes the issuance of $4 million in bonds for a new culinary water well. In March, the finance director said a prior year's $9 million bonding proposal was never implemented, according to the minutes. ^[6][7]