DDW-2025-001989

195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144830 • Salt Lake City, UT 84114-4830 Telephone [phone] • Fax [phone] • T.D.D. [phone] www.deq.utah.gov Printed on 100% recycled paper
State of Utah

Department of
Environmental Quality
Kimberly D. ShelleyExecutive Director
DIVISION OF DRINKING WATERTim DavisDirector
Drinking Water Board Kristi Bell, ChairEric Franson, P.E., Vice-ChairDawn RamseyJustin MaughanRobert RolfsJeff CoombsDavid O. PitcherBlake Tullis, Ph.D.Kimberly D. ShelleyTim DavisExecutive Secretary
SPENCER J. COX Governor
DEIDRE HENDERSONLieutenant Governor
[e-mail] The Honorable Michael Holt, Mayor, Fillmore City 75 West Center Fillmore, Utah 84631
Subject: Amended State Loan Authorization and Procedures for Committal of Funds; Fillmore City, System #14002, Loan #3S1903
Dear Mayor Holt and Town Council:
On November 1, 2022, the Drinking Water Board (hereinafter called the "Board") authorized a construction loan of $1,500,000 at 1% interest for 30 years to Fillmore City (hereinafter called the "Recipient") for installing a new 1-million-gallon concrete storage tank, transmission and supply lines, and a new booster pump station (hereinafter called the "Project").
The Recipient will contribute $1,564,200 towards the project. The loan from the Board will be
secured by General Obligation bond(s), Non-voted Water Revenue bond(s), or a combination thereof issued by the Recipient (hereinafter referred to as the "Bonds"). The Board has determined the retirement period for the Bonds is to be no more than 30 annual installments with interest payable on the unpaid principal balance from the date of issuance at an annual rate of 1%. The
Board will require annual payments on the Bonds in the amount of approximately $58,000
(proposed bond repayment schedule is enclosed). Interest only payments calculated from the date of closing through the following January, will be due on the first day of January. If a revenue bond is used, a debt service reserve fund equal to this annual amount must be established by no more than ten equal annual deposits.
Special Conditions
The recipient is required to pay the Division of Drinking Water a 1.0% Loan Origination Fee (Fee) on the new funding to pay for project administration. The fee will be $15,000.
All terms and conditions in the authorization letter dated November 10, 2022, will remain as stated.
December 08, 2022
Michael Holt
Page 2
If you have any questions concerning these requirements, please contact Heather Pattee at [phone] or me at [phone].
Sincerely,
DRINKING WATER BOARD

Michael J. Grange, P.E. Assistant Executive Secretary MJG/hp/lr

Enclosure cc: William Prater, Esq., William L. Prater, LLC, P.O. Box 71368, SLC, UT 84171, [e-mail] Kevin Orton, Fillmore City, [e-mail]
Devan Shields, Fillmore City, [e-mail] Richard Chamberlain, Chamberlain Associates, [e-mail] Heather Pattee, Division of Drinking Water, [e-mail] John Chartier, DEQ District Engineer, [e-mail] DDW Finance
December 08, 2022