Manti's $7.5 million zero-interest bond for a water treatment plant: what's drawn and what's budgeted

Manti is financing a new water treatment plant with $7,537,000 in water revenue bonds that carry no interest, according to the city's fiscal 2025 audit. ^[1]

The audit says the city issued the Series 2024 bonds during the fiscal year ended June 30, 2025, "to construct a water treatment plant." They are payable in yearly installments of $186,000 to $203,000 from July 2026 to July 2063. ^[1]

Drawn as needed

The city "is receiving the bond proceeds as needed and has been issued $700,000 as of June 30, 2025," the audit says. The water fund's bond balance at year end was $988,000, including $288,000 still owed on 2018 refunding bonds. ^[1]

The audit's repayment schedule lists the full $7,537,000 of principal on the 2024 bonds, starting with $186,000 in the fiscal year ending June 30, 2027. ^[1]

The water fund reported $81,619 of construction in progress at June 30, 2025. ^[4]

What the budget lists

The budget workbook Manti filed with the State Auditor lists $7,500,000 in "Div of Water Loan Proceeds" and $7,500,000 on a special projects line in its 2025-26 budget column. Its 2025-26 actual column, covering July through April, shows $453,580.40 spent on that line and no loan proceeds. ^[2]

For fiscal 2026-27, the workbook lists $7,000,000 in Division of Water loan proceeds, $100,000 in "Div of Water Forgiven Proceeds" and $7,000,000 on the special projects line, which is annotated "water treatment plant." Water sales are budgeted at $675,000, compared with $638,094.27 in fiscal 2025. ^[2]

The workbook's line for principal on the 2024 bonds lists $0 for fiscal 2026-27. ^[2]

The contractor award

The council's July 15, 2026, agenda included "Water Treatment Plant Contractor Award Recommendation: Sunrise Engineering." ^[3]

The minutes of that meeting are posted as a scanned image. They record Sunrise Engineering's Mitch Heap saying the city received seven bids and recommending Nelson Brothers Construction, which he described as the lowest qualified bidder, at a bid price of $3,680,743. ^[6]

According to the minutes, two bids came in lower but did not meet the required prequalification standards for similar water treatment plant experience, and City Manager Jason Brown said the city attorney reviewed the bid documents and agreed the city could disqualify those two bidders. ^[6]

Mayor Wintch asked for a motion to approve Nelson Brothers. Councilmember Brian Francois moved and Councilmember Mary Pipes seconded, and Meagan Johnson, Pipes, AJ Mower, Jennifer Christiansen and Francois voted aye, with no votes against. The minutes' action line reads "Approval of Nelson Brothers to be used as the subcontractor for the new city culinary water treatment plant," although the item heading and discussion describe a construction contract award. The records reviewed do not include the executed agreement. ^[6]

Rates

The audit's management discussion says "it is anticipated that the utility rates will be maintained at the present level unless external factors, such as State or Federal legislation, cause the City to reconsider the current rates." ^[5]