Utopia In Debt $120-Million, Legislature Getting Involved

(KUTV) Utopia provides high-speed internet to 11 Utah cities, but it is losing taxpayer money and lawmakers would like to reduce those losses.

Utopia has been approved by local government and by local voters, but now the legislature is getting involved.

The 11 Utah cities receiving Utopia’s offer of “speed-of-light” internet, have promised to pay the company’s debts, but legislatures said on Wednesday that the debt is too high and still growing.

Wednesday, lawmakers heard from their auditors who studied Utopia. They say Utopia is in debt $120-million and losing $19-million a year.

Taxpayers are paying $13-million a year and are committed to pay that much until 2040.

Utopia says that things will get better, but they add the company isn’t a business, but a public utility like a park and is not expected to make money, but to give people a subsidized amenity.

Legislators seemed unwilling to accept open-ended taxpayer losses. “They should have a plan or they should be closing down,” John Valentine says.

Valentine might introduce a bill to limit debt and that might force foreclosure.

Others favor an informal change that would limit the losses.

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