By Myrna Trauntvein
Times-News Correspondent
The Juab County Building Authority was convened, on
Monday, to approve two resolutions which will allow the
construction of a new road shed and three new fire
stations.
The building authority is made up of the three county
commissioners, wearing different hats, and is used to
receive, accept, and use any contributions, loans, or grants
by persons, firms, or corporations and to pay all or part of
the costs of any project from the proceeds of revenue bonds
of the authority or from other lawful sources available to
it.
The building authority was interjected, by motion,
into the business of county commission meeting. That meeting
was set aside for the period needed to consider and adopt
resolutions for revenue bonds.
"We are in a session of the building authority to
consider and adopt a resolution for revenue bonds for the
new county road shed," said Val Jones, commission
chairman.
"We will also consider and adopt a resolution for
revenue bonds for three new fire stations."
Mike Seely, county administrator, said the CIB
(Community Impact Board) cannot give a grant to the county
to build a road shed because no grants can be given road
projects. Counties already receive funds for road projects
from the Class B road fund, a federal funding program.
"We did get financing for the project," he said.
The CIB board granted a 30-year no-interest loan for
the project. Bonds are not to exceed $900,000 for the
project.
"The repayment of the loan, per year, will be about
the price of a new pick-up truck," said Seely.
The county has two parcels of property where the new
road shed might be constructed but, as yet, commissioners
have not determined which of those parcels would be best to
use for the project.
That will not affect the receipt of the loan, however,
and the money can still be accepted for the project.
In bonding for the three fire stations, one for
Eureka, one for Levan and the other for Partoun, is not to
exceed $1.5 million for all three buildings.
Seely said the money for the fire station projects
would come, at 50 percent, from a grant from CIB and, at the
other 50 percent, from a 25-year interest-free loan.
"For the Partoun fire station we also have a $50,000
USDA Rural Development grant," said Seely. "I am in the
process of applying for similar funds for the other two fire
stations."
Hopefully, the other two projects will receive similar
funding from that source, he said.
The CIB board has the option of funding projects with
loans and/or grants. The board's preferred financing
mechanism is an interest bearing loan.
In providing financial assistance in the form of a
loan, the CIB board may purchase an applicant's bonds only
if the bonds are accompanied by legal opinion of recognized
municipal bond counsel to the effect that the bonds are
legal and binding under applicable Utah law (including, if
applicable, the Utah Municipal Bond Act).
Chamberlain Associates, Richfield, is the county bond
counsel for the projects.
The CIB board may purchase either a taxable or tax
exempt bond.
The board may purchase taxable bonds if it determines,
after evaluating all relevant circumstances, including the
applicant's ability to pay, that the purchase of the taxable
bonds is in the best interest of the state and the
applicant.
CIB grants may be provided only when the other
financing mechanisms cannot be utilized, where no reasonable
method of repayment can be identified, or in emergency
situations regarding public health and/or safety.
"Juab County will repay $450,000 which is like getting
$1 million worth of buildings for half price," said Jared
Eldridge, county attorney.
"The other half of the money is grant money and that
is free money," said Seely.
Notice of bonds to be issued will now be advertised
and the projects may now move forward.
The county building authority must be convened in such
cases in order to accept, receive, and administer gifts,
grants, loans and devises of money, material, and property
of any kind, including loans and grants from the state or
the United States or any agency or instrumentality thereof,
upon such terms and conditions such agency or
instrumentality may impose.
The Permanent Community Impact Fund Board provides
loans and /or grants to state agencies and subdivisions of
the state which are or may be socially or economically
impacted, directly or indirectly, by mineral resource
development on federal lands.
Under the Federal Mineral Lease Act of 1920, lease
holders on public land make royalty payments to the federal
government for the development and production of
non-metalliferous minerals.
In Utah, the primary source of these royalties is the
commercial production of fossil fuels on federal land held
by the U.S. Forest Service and the Bureau of Land
Management. Since the enactment of the Mineral Lease Act of
1920, a portion of these royalty payments, called mineral
lease payments, have been returned to the state in an effort
to help mitigate the local impact of energy and mineral
developments on federal lands. The state of Utah then
allocates the Permanent Community Impact Funds with 32.5
percent of the funds.
|
