Manti's $7.5 million zero-interest bond for a water treatment plant: what's drawn and what's budgeted
Manti issued $7,537,000 in water revenue bonds for a new treatment plant and had received $700,000 by June 30, 2025. Its fiscal 2026-27 budget workbook lists $7 million in state water loan proceeds and $7 million for the plant.
Continuing story: Auditing Manti
Manti is financing a new water treatment plant with $7,537,000 in water revenue bonds that carry no interest, according to the city's fiscal 2025 audit. [1]
The audit says the city issued the Series 2024 bonds during the fiscal year ended June 30, 2025, "to construct a water treatment plant." They are payable in yearly installments of $186,000 to $203,000 from July 2026 to July 2063. [1]
Drawn as needed
The city "is receiving the bond proceeds as needed and has been issued $700,000 as of June 30, 2025," the audit says. The water fund's bond balance at year end was $988,000, including $288,000 still owed on 2018 refunding bonds. [1]
The audit's repayment schedule lists the full $7,537,000 of principal on the 2024 bonds, starting with $186,000 in the fiscal year ending June 30, 2027. [1]
The water fund reported $81,619 of construction in progress at June 30, 2025. [4]
What the budget lists
The budget workbook Manti filed with the State Auditor lists $7,500,000 in "Div of Water Loan Proceeds" and $7,500,000 on a special projects line in its 2025-26 budget column. Its 2025-26 actual column, covering July through April, shows $453,580.40 spent on that line and no loan proceeds. [2]
For fiscal 2026-27, the workbook lists $7,000,000 in Division of Water loan proceeds, $100,000 in "Div of Water Forgiven Proceeds" and $7,000,000 on the special projects line, which is annotated "water treatment plant." Water sales are budgeted at $675,000, compared with $638,094.27 in fiscal 2025. [2]
The workbook's line for principal on the 2024 bonds lists $0 for fiscal 2026-27. [2]
The contractor award
The council's July 15, 2026, agenda included "Water Treatment Plant Contractor Award Recommendation: Sunrise Engineering." [3]
The minutes of that meeting are posted as a scanned image. This story does not report the bids, the contractor chosen or the vote. [3]
Rates
The audit's management discussion says "it is anticipated that the utility rates will be maintained at the present level unless external factors, such as State or Federal legislation, cause the City to reconsider the current rates." [5]
The $7,537,000 is the bonds' issued amount; the audit reports $700,000 drawn at June 30, 2025. Budget lines are planned amounts, not spending. The audit's debt schedule totals include the full $7,537,000; $700,000 had been drawn at year end.
Sources
- Manti City Corporation · Fiscal 2025 basic financial statements (HintonBurdick, Dec. 19, 2025), State Auditor filed copy, Note 7 long-term liabilities
- Manti City Corporation · FY 2026-27 budget workbook, State Auditor filed copy, water fund
- Manti City · July 15, 2026, council meeting agenda
- Manti City Corporation · Fiscal 2025 basic financial statements (HintonBurdick, Dec. 19, 2025), State Auditor filed copy, proprietary fund net position
- Manti City Corporation · Fiscal 2025 basic financial statements (HintonBurdick, Dec. 19, 2025), State Auditor filed copy, management's discussion and analysis
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.