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 April 20, 2017, the Board of Trustees (the “Board”) of the South Davis Sewer District, Utah (the “District”), adopted a Resolution (the “Resolution”), which provides for the issuance of the District’s Combined Utility System Revenue Bonds (the “Bonds”) in the maximum aggregate principal amount of Thirty Million Dollars ($30,000,000). The Bonds are to bear interest (which may be characterized as a hardship assessment fee) at a rate of not to exceed two percent (2.00%) per annum and are to mature over a period not to exceed twenty-two (22) years from their date or dates. The Bonds are to be sold at par. No deposit will be required in connection with such sale.
The proceeds of sale of the Bonds are to be used for the purpose of (i) paying a portion of the cost of acquiring and constructing facilities to remove nutrients from the treated wastewater discharges from the Issuer’s South Plant located in the City of North Salt Lake, Utah, the rehabilitation and improvement of certain existing facilities located at the District’s South Plant, and facilities and studies with respect to the remediation of various non-point sources of water pollution (collectively, the “Project”), and (ii) paying expenses properly incident, to the acquisition of the Project and to the issuance of the Bonds. The Bonds are to be issued and sold by the District pursuant to (a) a Master Resolution Providing for the Issuance of Combined Utility System Revenue Bonds of the District, adopted by the Board on April 20, 2017, as heretofore supplemented (the “Master Resolution”), and (b) a Supplemental Resolution authorizing the issuance and sale of the Bonds to be adopted by the Board at a later date (the “Supplemental Resolution”). A copy of the Master Resolution and a form of the Supplemental Resolution were before the Board at the time of the adoption of the Resolution.
The District proposes to pledge to the payment of the Bonds all of the legally available revenues, fees, income, rents and receipts derived by the Issuer from or attributable to its combined utility system (the “Revenues”).
The District currently has no bonds outstanding that are secured by the Revenues; provided, that the District is in the process of issuing up to $22,500,000 of bonds that will be secured by the Revenues. More detailed information relating to the District’s bonds can be obtained from the Clerk of the District at the address listed below.
Assuming a final maturity for the Bonds of approximately 21 years from the date hereof and that the Bonds are issued in an aggregate principal amount of $28,851,000 and are held until maturity, based on the District’s currently expected financing structure and interest rates in effect around the time of publication of this notice, the estimated total cost to the District of the proposed Bonds is $30,546,166.00.
A copy of the Resolution (including a copy of the Supplemental Resolution) is on file in the office of the Clerk of the District, 1800 North 1200 West, in West Bountiful, Utah, where it may be examined during regular business hours of the District 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 above-described Resolution, the Supplemental Resolution or the Bonds or any provisions made for the security and payment of the Bonds. After such time, no person shall have any cause of action to contest the regularity, formality or legality thereof for any cause.
DATED this 20th day of April, 2017.
/s/ Suanne Monsen
South Davis Sewer District, Utah