Mapleton's sewer notes to Spanish Fork: three sets of payment figures for fiscal 2027

Mapleton sends its wastewater to a treatment system it shares with Spanish Fork, and it is paying for its share of a new plant through notes it owes Spanish Fork. Records for fiscal 2027 list three different sets of payments on those notes. ^[3][2][4][5]

What the audit shows

The fiscal 2025 audit lists four notes payable to Spanish Fork at June 30, 2025: $14,095,834 on a 2020 sewer construction note, $5,002,917 on a 2024A construction note, $900,000 on a 2024B construction note and $1,866,667 on a 2011 sewer capacity note, for a total of $21,865,418. ^[1]

The audit says Spanish Fork issued $73,345,000 in sewer revenue bonds in 2020 under its own full faith and credit, and that "Mapleton City is not party to these bonds and has no legal obligation for the repayment of them." It says $18,000,000 of the bond proceeds was allocated to Mapleton, representing its 20% share, and that Mapleton was allocated $1,000,000 of a $5,000,000 state grant. ^[3]

The audit says the 2020 note was executed in December 2020 for $15,955,000 at a fixed rate of 1.635%, maturing March 1, 2041, and gives "the balance of the note" at June 30, 2025 as $19,998,751. That figure equals the combined balance of all three construction notes in the audit's debt table. ^[3][1]

The capacity note requires three interest-free annual installments of $933,333, in April 2025, 2026 and 2027, according to the audit. ^[3]

Approved, then under renegotiation

On June 11, 2025, the council approved the Fourth Amended and Restated Interlocal Agreement for the joint wastewater treatment facility and trunklines as Resolution 2025-30, part of a consent agenda passed 4-0 with Councilmember Kasey Beck excused. ^[6]

The staff report in the meeting packet says the fourth amendment "corrects verbiage regarding the amount and repayment of those notes." The packet includes a draft all-inclusive promissory note listing original principal of $15,955,000, $5,145,000 and $900,000, or $22,000,000 in all. The agreement and notes in the packet are unsigned, with blank dates and signature lines. ^[7]

The audit, issued six months later on Dec. 18, 2025, says that as of its issuance "the Agreement is under re-negotiation and clarification between the two cities, as it relates to the terms of the note payable." It says management "anticipates the note payable terms to potentially increase the interest rate and ultimate debt service obligation of the City over the life of the note." ^[3]

Three sets of fiscal 2027 payments

For the 2020 note, the audit's repayment schedule lists fiscal 2027 payments of $734,167 in principal and $403,555 in interest. The fiscal 2027 budget overview lists $740,000 and $415,305. The detailed sewer fund schedule lists $635,000 and $449,680. ^[2][4][5]

For the 2024A note, the audit lists $169,167 in principal and $228,333 in interest, the overview $170,000 and $231,000, and the detailed schedule $155,000 and $238,875. ^[2][4][5]

For the 2024B note, the audit lists $40,600 in principal and $9,707 in interest, and the overview $203,000 and $48,160. The detailed schedule lists $10,080 in interest on a "2024 DWQ sewer note" and no principal line for that note. ^[2][4][5]

Each of the detailed schedule's note payments for fiscal 2027 is the same as the amount approved for fiscal 2026. The detailed schedule also lists $933,333 for a "Harmony Ridge sewer contract to Sp Fork" under capital projects in both years, the same amount as the capacity note installment. ^[5][3]

The budget overview also describes the 2020 obligation as "a 20 year, $18,000,000 note to Spanish Fork," while the audit records the note's original amount as $15,955,000. ^[4][2]