Wellsville drew $1.7 million of a $3.2 million state water bond in fiscal 2025

Wellsville City took on $1,700,000 of new water debt in the year ended June 30, 2025, according to its audited financial statements. Bonds payable rose from $15,000 at the start of the year to $1,710,000 at the end. ^[1]

The audit describes the new debt as "$3,200,000 in water revenue bonds due to State of Utah Division of Drinking Water" with 2.4% interest, principal amounts of $111,000 to $201,000, and a final maturity of June 1, 2045. The balance owed on it at June 30, 2025 was $1,700,000. ^[1]

In its discussion of the year, management wrote that "the ongoing water project will require additional draws from the new bond over the next year." ^[2]

What the water fund spent

The Water Utility Fund reported $1,837,513 in purchases of capital assets in fiscal 2025, against $1,700,000 in bond proceeds and $268,452 in grant proceeds. It paid $5,000 in principal and $26,838 in interest on bonds. ^[5]

Business-type capital assets included $1,617,928 in construction in progress at June 30, 2025, up from zero a year earlier. ^[3]

The fund also recorded $409,260 in developer contributions, which the audit lists as non-cash items. ^[5]

The water fund held $137,192 in restricted cash for a revenue bond sinking and reserve account. ^[6]

Repayment

The schedule of debt service for the $1,710,000 owed at June 30, 2025 lists $116,000 in principal and $40,800 in interest for fiscal 2026, and totals $278,592 in interest through 2040. ^[1]

The total debt of the city increased by $1,695,000 during the year, the audit's management discussion says. ^[2]

Since the audit

The council's Sept. 16, 2026 agenda listed a discussion of "a Resolution for the Watershed Work Plan Agreement for the Pressurized Water System in Wellsville City." The agenda does not give its terms. ^[4]