NOTICE OF BONDS TO BE ISSUED
NOTICE IS HEREBY GIVEN pursuant to the provisions of Section 11-14-316, Utah Code Annotated 1953, as amended, that on June 17, 2026, the City Council (the 'Council') of Vernal City, Utah (the 'City'), adopted a resolution (the 'Resolution') in which it authorized and approved the issuance of its Sales Tax Revenue Bonds (the 'Bonds'), in an aggregate principal amount of not to exceed $2,000,000 to bear interest at a rate or rates of not to exceed 0.50% per annum and to mature not later than 16 years from their date or dates and to be sold at a discount from par not to exceed 2.00%. The Bonds shall be subject to such optional and mandatory redemption and other provisions as are contained in the General Indenture of Trust, described below, and the final form of the Bonds and Supplemental Indenture, described below.
Pursuant to the Resolution, the Bonds are to be issued for the purpose of financing all or a portion of the cost of water and sewer system improvements including installation of HDPE and PVC water lines, water service connections and tie-ins, PVC sewer lines, manholes and bypass pumping equipment (the 'Project'), (b) funding all or a portion of any necessary reserves in connection with the Bonds, and (c) paying all or a portion of the costs incurred in connection with the issuance and sale of the Bonds. The Bonds are to be issued and sold by the City pursuant to the Resolution and a General Indenture of Trust (the 'General Indenture') and a Supplemental Indenture of Trust (the 'Supplemental Indenture') that were before the Council and attached to the Resolution at the time of the adoption of the Resolution. The Council will cause the Supplemental Indenture to be executed and delivered with such changes thereto as the Mayor shall approve upon execution of the Supplemental Indenture, provided that the principal amount, interest rate or rates, maturity and discount, if any, will not exceed the respective maximums described above.
The repayment of the Bonds will be secured by a pledge of the legally available revenues from the Local Sales and Use Taxes received by the City pursuant to Title 59, Chapter 12, Part 2, Utah Code (the 'Pledged Taxes').
The City currently has $7,060,000 bonds currently outstanding that are secured by the Pledged Taxes. More detailed information relating to the City's outstanding bonds can be found in the City's most recent financial statements that are available on the Office of the Utah State Auditor's website (www.sao.state.ut.us). The estimated total cost to the City of the proposed Bonds that will be used to finance the costs of the Project, if the Bonds are held until maturity and based on estimated interest rates currently in effect, is $2,212,046.
A copy of the Resolution (including the draft of the Supplemental Indenture and a copy of the General Indenture attached to the Resolution) is on file in the office of the City Recorder at 374 East Main Street, in Vernal City, Utah, where the Resolution may be examined during regular business hours of the City Recorder from 8:00 a.m. to 5:00 p.m. The Resolution shall be so available for inspection for a period of at least thirty (30) days from and after the date of the publication of this notice.
NOTICE IS FURTHER GIVEN that, pursuant to law, for a period of thirty (30) days from and after the date of the publication of this notice, any person in interest shall have the right to contest the legality of the Resolution (including the Supplemental Indenture attached thereto) of the City or the Bonds authorized thereby or any provisions made for the security and payment of the Bonds. After such time, no one shall have any cause of action to contest the regularity, formality or legality of the Resolution, the Bonds or any provisions made for their security and payment for any cause.
DATED June 17, 2026.
VERNAL CITY, UTAH
Notice of Special Accommodations (ADA)
NOTE: In compliance with the Americans with Disabilities Act, individuals needing special accommodations during this meeting should notify Sara Bell at 374 East Main, Vernal, Utah 84078, telephone: 789-2255.