OGDEN -- The city will issue $4 million in bonds to rebuild a 100-year-old water pipeline that is one of Ogden's main suppliers of water.
The Ogden City Council voted to approve the bonds Tuesday night after a public hearing.
In late July, the council adopted a parameters resolution that indicated the council's intent to issue the bonds and set caps on the dollar amount, the interest rate and the length of time for the bonds to be paid off.
The state drinking water board has agreed to purchase the bonds for $4 million at an interest rate of 2.6 percent for a term of 20 years.
The Utah Division of Drinking Water had previously committed $4 million toward the project, but the additional money is needed to complete the entire project.
The 24-inch pipeline runs down Ogden Canyon and provides many Ogden residents with water.
City officials say the pipeline is in poor condition and because it is a major water supply line to the city, the project to fix it can't wait any longer.
The environmental and conceptual design for the project is currently under way.
It's also expected that $13 million in bond funds will be requested in fiscal year 2014 to pay for the design and construction of a new water treatment plant.
In June, the city borrowed $1 million from the sewer fund and lent it to the water fund to allow the water utility to begin design work and other preparations so the plant can be constructed immediately after funds become available.