Parowan approves parameters for up to $12 million in water revenue bonds to finance drinking‑water upgrades

Parowan — The Parowan City Council on June 11 approved a parameters resolution allowing the city to issue up to $12 million in water revenue bonds to fund drinking‑water system improvements, including spring rehabilitation and other upgrades.

Marcus Keller, the city’s municipal adviser, told the council the likely financing package the city is pursuing includes approximately $1.75 million in grant funding paired with roughly $9.675 million in loan proceeds, and noted the Division of Drinking Water terms the city has been offered are favorable — staff cited interest in the low‑single digits (roughly 2% in examples given) for long‑term borrowing.

Council members and staff emphasized the vote set parameters, not a final bond sale. “You’re not approving the bonds tonight, just the parameters,” Keller said, describing the next steps: a public hearing at a future meeting and final bond resolutions after bids and closing details are known.

Why it matters: The financing is intended to move forward large‑scale water infrastructure projects the city has planned for years, including springs rehabilitation and treatment work to bring local sources online. Staff said moving now improves the city’s ability to lock in low rates and match grant timetables.

Formal action and vote: Council approved the parameters resolution (resolution 2026‑11A) by roll call. Staff said a notice about the forthcoming bond process will be mailed to utility customers and the final public hearing will be scheduled before final bond approval.

What comes next: Staff will present a parameters public hearing and final bond resolution on a future council agenda after bids and firm financing terms are available. The city will publish notices and hold the required public hearings before any bonds are issued.