North Logan's $8 million state water loan, from authorization to first budgeted payment
In August 2024 the council authorized water revenue bonds for a state-funded loan of $8,030,000 at 2.25% to pay for tanks, a transmission line and a well. The loan does not appear in the city's June 2025 debt schedule, and the fiscal 2027 budget sets aside $159,091 for water bond principal.
Continuing story: Auditing North Logan
North Logan has authorized borrowing $8,030,000 from the state to expand its culinary water system, according to the City Council's Aug. 7, 2024 minutes. [1]
The authorization
At that meeting, a presenter from Zions Bank explained the financing: a state loan of $8,030,000 at 2.25% interest, planned over 30 years, with a parameter allowing up to 35 years if necessary. Asked by Mayor Lyndsay Peterson whether the money was for the water tanks and transmission line, city staff member Jordan Oldham confirmed it was and added that it was also for the well. [1]
Council member Buzzy Mullahkhel moved to adopt Resolution 24-18, authorizing the issuance of water revenue bonds, and Joni Kartchner seconded. The motion passed 5–0, with Mullahkhel, Kartchner, Emily Schmidt, Kenny Reese and Mark Hancey voting yes. [1]
In the next item, the council voted 5–0 to approve an engineering design contract with Sunrise Engineering for multiple culinary water capital projects. Oldham told the council the loan requires the city to provide a $1 million match. The minutes do not state the contract's dollar amount. [1]
A notice dated Aug. 7, 2024 set a public hearing for Sept. 18, 2024 on bonds the city intended to issue "in an amount not to exceed $9,000,000," payable from "the revenues attributable to the System." [2]
Construction bids
On May 14, 2025, the council voted unanimously to approve bids for the Rattlesnake Tank, a culinary water reservoir north of Green Canyon, and its associated water mainlines. Sunrise Engineering recommended Patriot Construction at about $4.6 million for the tank and Phaser Excavation at about $1.2 million for the pipeline, and the discussion put the total estimated project cost at about $6.7 million under a fixed-price contract with a 5% contingency. Schmidt moved approval and Hancey seconded. [3]
Those minutes give rounded figures and do not state the funding source for the tank. [3]
What the audit and budget show
The city's audited schedule of bonds and notes at June 30, 2025 totals $5,207,073. Its business-type debt is a $240,586 sewer fund note; the schedule lists no water revenue bonds. [4]
The fiscal 2027 budget report the city filed with the state includes a Water Fund line labeled "Water Bond Principal" of $159,091, with nothing on that line in the fiscal 2025 actual or fiscal 2026 budget columns. The Water Fund's "Contribution-Fund Balance" line shows $283,860 for fiscal 2027 and $9,673,493 in the fiscal 2026 final budget. [5]
The $8,030,000 is the loan amount described when the bonds were authorized; the records reviewed do not show how much has been drawn or how much principal is now owed. Budget lines are plans, not payments.
Sources
- North Logan City Council · Aug. 7, 2024 minutes
- North Logan City Council · Notice of Sept. 18, 2024 public hearing on water revenue bonds
- North Logan City Council · May 14, 2025 minutes
- North Logan City · FY2025 audited financial statements, long-term debt note
- North Logan City · FY2027 state budget report, Water Fund
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.