Payson Says No Again By 4-1 Vote

Despite high hopes. Payson's City Council voted 4-1 against the new UTOPIA bonds citing concerns about their future revenue streams. Council Member Hancock cast the lone yes vote despite getting a second for the motion to adopt the resolution. This means that they will likely have to start paying out around $259K every year over the next 19 years to satisfy their portion of the old bonds.

I view this move as a calculated risk. Payson knew they were getting their network regardless of how they voted because it makes financial sense for UTOPIA. They also know that their pledge amount is small enough that it won't sink the deal. In short, they knew that opting to not pledge additional money would not mean they wouldn't see more of the network and decided to enjoy the benefit of UTOPIA without risking any more money. I think they also have a hope in their mind that UTOPIA may not call their bond pledge immediately or may opt not to do so at all if it can retire the old bond with the proceeds of the new bond. I hope that isn't their game because it's very unfair to other member cities. 

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3 Responses to Payson Says No Again By 4-1 Vote

  1. luminous says:

    yea i wonder on this, if utopia calls the bonds right away is the UTA going to use that as ammo against utopia or if utopia does not call the bonds is the UTA going to also use that against utopia for puttng risk on the other city’s. I wonder is utopia could find an alternative arrangement with payson that would prevent them from having to call the bonds but be fair to the other city’s. perhaps defer calling the bond for several years and then allowing payson to pay it from the sales dividends that would otherwise have been payed to them?

    I feel that whatever comes out of this it is going to give utopia’s distractors political ammo to use.

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