• Council approves resolution to reimburse itself for monies incurred in construction of transmission line

• Citizens voice concerns over ATVs in Levan and come to a compromise

• Obits

• Classifieds

• Back

• Home

By Myrna Trauntvein
TN Correspondent

A resolution submitted by the Nephi City council was approved that declared the intention of the city to reimburse itself for expenditures incurred in connection with the construction of an electrical transmission line, easements and substation.

As stated in the UMPA (Utah Municipal Power Agency) agreement, the city may need to pay approximately $790,000 to Pacificorp toward a redundant southern connection fairly soon after UMPA supplies the security deposit on the city electrical line project.

“It is the intent of the council to issue bonds for the purpose of reimbursing the city for these expenditures in the approximate amount of $9 million,” said Seth Atkinson, city administrator.

“This payment will occur well before the city is able to secure bond financing for the project,” said Atkinson. “In order for the city to be potentially reimbursed for these costs, the city will need to pass a reimbursement resolution.”

The resolution enables the city to use future bond proceeds for project related expenses that occur prior to obtaining the bond proceeds.

“The staff recommends approving Resolution 05-03-2022- Reimbursement Resolution,” he said. “This does not obligate the city to use bond proceeds prior expenses but does allow for reimbursement of expenses from the bond if it is approved.”

After the May 3 council meeting had been called to order, and after other matters not pertinent to the resolution had been discussed, Lisa Brough, city recorder/finance director, presented to the council a certificate of compliance with Open Meeting Law with respect to the May 3, 2022, meeting.

The resolution to be passed was then introduced in written form, was fully discussed, and a motion was made by Jeramie Callaway, council member, and seconded by JD Parady, council member, and was adopted by unanimous vote of the council.

“You have done this before,” said Atkinson. “But we do not always get the option to get our money back. This will give us some wiggle room.”

The council determined that it would aide the purpose of the city to issue bonds to finance construction, easements, substation, and related improvements associated with the proposed electrical transmission line.

The city has available short-term resources within the various funds of the city to acquire and improve the project but has determined that these short-term resources will need to be replenished in order to maintain appropriate fund balances; and the city intends to issue the bonds and to use a portion of the proceeds of the bonds to reimburse itself for expenditures incurred relating to the project and incurred prior to the date of issuance of the bonds.

The city council determined that it was in the best interests of the city to utilize various monies from applicable funds to acquire and improve the project prior to the issuance of bonds.

“With the surplus property we own, we may have some funds that can also be used.”

In addition, as part of the action, Brough, the duly qualified and acting city recorder of Nephi, certified that according to the records of the city council, a true, correct, and complete copy of the proceedings of the regular meeting of the council held on May 3, 2022, including the resolution and the minutes were officially in her possession.