Tooele authorizes up to $14 million in sewer revenue bonds for treatment plant upgrades

The Tooele City Council adopted a resolution on Sept. 2, 2026 authorizing the issuance of sewer revenue bonds, according to a notice of bonds to be issued that the city recorder dated Sept. 3. ^[1]

The Sept. 2 agenda lists the item as Resolution 2026-69, authorizing not to exceed $14,000,000 in sewer revenue bonds. ^[3]

The limits

The notice says the bonds may total no more than $14,000,000, bear interest of no more than 5.50% a year, mature no later than 26 years from their date and be sold at a discount of no more than 2.00% from par. ^[1]

They are to pay for improvements to the city's sewage collection and treatment system, fund reserves and pay issuance costs, and are secured by a pledge of the system's net revenues. ^[1]

The notice gives anyone 30 days from publication to contest the resolution or the bonds. ^[1]

The Sept. 16 hearing

The council held a public hearing on the bonds on Sept. 16. No one spoke, and the minutes say no council action was required. ^[2]

Finance Director Shannon Wimmer projected a par amount of $11,155,000 with an estimated $788,358.45 reoffering premium, plus a $5 million city contribution from sewer impact fees, for total projected sources of $16,943,358. ^[2]

The projected uses were $16,718,449 for construction, $180,289 for issuance costs and $44,620 for the underwriter's discount. The term was projected at 20 years, at an estimated interest rate of about 4.24%, subject to the city's final bond rating. ^[2]

Wimmer said annual bond payments are already included in current sewer rates, so no additional rate increase is anticipated, and that sewer and water rates will continue to be monitored. ^[2]

The projects

Public Works Director Nathan Farrer said the bonds would pay for biosolids facility upgrades, a UV disinfection system upgrade and two sewer line upsizing projects. ^[2]

He said aeration, the oxidation ditch and two clarifiers are not funded by these bonds. He said the plant's capacity is about 3.4 million gallons a day and it runs at about 85% on average, and that the work would take about 1.5 to 2 years. ^[2]