BOUNTIFUL—Bountiful City’s fiber project has hit a speed bump. After three years of study and research the city council elected to have a city-owned fiber network and recently signed a contract with UTOPIA fiber to build and operate the system. The city proposed a $47 million sales tax bond to pay for the project which includes the contract cost and the buyout cost for existing infrastructure and customers. The 30-year bond would be paid off by the customer take rate but the city plans to pay it off much sooner.

Plans were in place to break ground and get started on the project but last week city officials became aware there was an effort to create a petition that would require the sales tax bond to go on the ballot. The petition must be done within 30 days of the public notice.

“A request for an election must be signed by at least 20% of registered voters in a city or county,” said City Manager, Gary Hill at Tuesday’s City Council meeting. “Revenue bonds, including a sales tax bond, do not increase taxes. A general obligation bond requires voter approval because there would be a property tax increase.”

The city does not have the ability to increase sales taxes, he said. “It is stipulated by the state and so the state allows cities to issue a bond. We couldn’t even put it on the ballot if we wanted to. The only mechanism for this to go on the ballot would be for a protest in the matter.”

The question is who is behind the petition, said Hill. “Are these Bountiful residents who have organized an effort? To the best of our knowledge this is not Bountiful residents. We have learned and understood and it has been confirmed that it is the Utah Taxpayer Association who has engaged a petition gathering company to collect signatures to put this on the ballot. I think that’s significant that it is not being driven by an angry group of residents.”

If it goes on the ballot it will delay the project, he said. “The election is Nov. 21 and then we’d have to wait for the canvass. That wouldn’t be done until Dec. 15 so we wouldn’t know the result until the end of December. That would put the project back by at least a year and it will be more expensive.”

“I think we should take it to the voters,” said Paul Child, a resident who spoke during the public comment period. “I can’t imagine anything that would be so compelling that it requires us to opt in now rather than to get the vote of the populous and get their support behind you in just a few months and I would encourage you to do that.”

“At the end of the day the Taxpayer Association is a lobbyist group,” said Councilmember Millie Segura Bahr. “There are two members who are with CenturyLink and Comcast. Both have been vocal against UTOPIA.”

Bountiful fiber signs have been popping up all over the city, said Mayor Kendalyn Harris. “Residents have made pleas for more options. It’s been years they’ve been waiting. They were wishing it would get underway years ago. If it’s delayed it will be frustrating to many.”

Even though the bond will be a sales tax bond, it does not mean that taxes will be increased to pay off the bond, said Bahr. The network and bond will be paid off entirely by subscribers and the marketplace will still be competitive and residents can still choose any provider they want.

“We’re comfortable with UTOPIA’s track record,” said Harris. “We’ll pay back the bond through subscriber fees only.”