Fiber agency Orem helped create authorized up to $25 million in new bonds backed by network revenue

The Utah Infrastructure Agency, a fiber-optic network agency that Orem and eight other cities created, has authorized up to $25 million in new bonds to be repaid from its network's revenues, according to a notice the agency posted Sept. 8, 2026. ^[1][3]

The agenda for the board's Sept. 8 meeting listed Resolution 26-05, which would authorize "issuance and sale of not more than $25,000,000 aggregate principal amount of" tax-exempt telecommunications revenue bonds. ^[2] The notice says the board adopted the resolution that day. ^[1]

The terms

The notice says the bonds would pay for "the acquisition, construction, and installation of advanced communication lines" in the fiber network. ^[1]

It sets a maximum of $25,000,000 in principal, a maximum interest rate of 6.00% a year, a maximum term of 27 years and a sale price of at least 97% of principal. ^[1] It estimates "the total principal and interest cost of the Bonds if held until maturity" at $43,965,000. ^[1]

The bonds are described as "special limited obligations of the Agency payable from the revenues of the Agency's fiber optic network." ^[1] The notice states: "The Agency currently has $268,075,000 of bonds outstanding secured by the Revenues." ^[1]

The notice does not mention member cities, city tax pledges or guarantees. ^[1]

The resolution also delegates authority to agency officers to approve final terms within those limits, according to the agenda. ^[2] The notice set a public hearing for Oct. 5, 2026, in Murray and a period of "thirty (30) days" after its posting for anyone to contest the bonds' legality. ^[1]

Orem's existing ties to UIA

UIA's audited financial statements for the fiscal year ended June 30, 2024, list Orem among the nine cities that created the agency: Brigham City, Centerville, Layton, Lindon, Midvale, Murray, Orem, Payson and West Valley City. ^[3]

The report says eight of them, all except Payson, pledged franchise tax revenue as partial guarantees, and its pledge table lists Orem's share at 23.76%, with an estimated maximum annual payment of $1,223,786. ^[3]

That franchise tax pledge is separate from Orem's sales tax pledge on UTOPIA's older bonds, the subject of our Oct. 15 story. The records reviewed do not show whether the new bonds were sold or on what final terms. ^[1][3]