Millville's share of Hyrum's sewer plant: the 2020 agreement terms and a $1.4 million state grant

Millville has a 2020 agreement with Hyrum to share in the expansion and ownership of Hyrum's wastewater treatment plant. The city's audit describes the terms, and a June 2026 staff report says the state covered the buy-in cost with an additional grant. ^[1][3]

The 2020 agreement

In July 2020, Millville entered into a 30-year intermunicipal agreement with Hyrum City to participate in an expansion of Hyrum's wastewater treatment facility, according to the fiscal 2025 audit. ^[1]

The audit says Millville's participation "will result in it owning twenty percent of the Facility" by paying $5.00 per month per equivalent residential unit for 30 years, and $4.50 per month per unit until it has paid $702,400 in principal and interest. The audit describes the $702,400 as Millville's 20% share of revenue bonds Hyrum was selling to the U.S. Department of Agriculture for the expansion. ^[1]

Millville must also pay 20% of the facility's operations and maintenance expenses, in monthly installments based on an annually adopted facility budget. The audit puts the initial monthly charge at $22.36 per equivalent residential unit. ^[1]

A separate agreement with Nibley City covers construction and maintenance of parts of Nibley's sewer collection system, with excess capacity Millville may use. The audit says Millville is liable for its proportional share of maintenance, replacement and repair costs and receives perpetual rights to use the jointly owned components. ^[2]

The $1.4 million grant

The staff report in the June 11, 2026 council packet says that "during FY26, Millville City was able to get $1,400,000 in additional grant funding from the State to cover the buy-in cost for use of the Hyrum sewer treatment facility." It identifies the source only as the state. ^[3]

The report says, "This allowed us to keep the already high sewer monthly use fee without making it even higher." It also says that for "the $35 million plus sewer project, Millville City has covered the costs with more than 56% in grant funding." ^[3]

The meeting minutes record Recorder Corey Twedt telling the council that "Millville received an additional $1.4 million to help pay for the buy-in to the Hyrum sewer treatment facility." ^[3]

What the budget shows

The water and sewer expense table in the same packet lists a line titled "City Sewer - Nibley/Hyrum" at $12,295 actual in fiscal 2025, $148,000 in the fiscal 2026 budget and $270,000 in the fiscal 2027 budget. ^[4]