"This is a decision about the future," said Councilman Carl Hernandez. "I feel strongly about the vision of UTOPIA, and it is a strong vision."
Under the terms of the agreement, the city will increase the sales tax pledged to pay the 11-city consortium's debt to an average of $2.5 million annually over 32 years from $2.1 million annually over 20 years - with annual adjustments up to $4.7 million by 2040.
UTOPIA is seeking to retire its previous debt with a longer-term, lower-interest loan. The refinancing is coupled with a new marketing strategy designed to draw more people into signing on with the system's service providers - provided individual households are willing to fork over at least $1,000 to connect.
Laura Lewis, UTOPIA's financial adviser, said if the refinancing plan were not approved, the city would be called to pay its original pledge for the next 20 years. The refinancing plan, she said, will give UTOPIA room to complete its build-out and likely lower the amount cities would have to pay - if revenue figures don't match projections.
And there is a possibility that UTOPIA could eventually get enough customers to relieve the cities of their obligations.
The worst-case scenario: UTOPIA would have to be sold. Then, Lewis said, the cities would be better off selling a nearly completed network than one with miles of fiber-optic cable yet to be installed.
"Do you think you could get more money out of selling a house if you sold a fully finished house or a house where three out of five rooms are finished?" Lewis asked the council.
Orem Mayor Jerry Washburn said UTOPIA was vital to managing the area's growth.
As gas prices continue to go up and roads become congested, people will turn to telecommuting, he said, adding that a high-speed Internet connection to people's homes is the way to make that work.
dmeyers@sltrib.com
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* Steve Oberbeck contributed to this story.
Murray last of 11 members to vote on technology plan
The Utah Telecommunications Open Infrastructure Agency - UTOPIA - is a consortium of 11 cities that is constructing a fiber-optic network that would be leased, not to individual subscribers, but to telephone, Internet and television providers.
The member cities are Brigham City, Centerville, Layton, Lindon, Midvale, Murray, Payson, Perry, Orem, Tremonton and West Valley City.
Payson is the only city to say no to the refinancing plan; Brigham City and Centerville have made their support conditional upon no other cities rejecting it. Murray officials are expected to vote Monday.
