Bluffdale's $30 million underpass notes: two city records describe repayment differently

Bluffdale's borrowing for the 14600 South railroad underpass is described two ways in the city's own records. A legal notice ties repayment of the principal to a future bond sale, while the adopted budget says state money will repay it. ^[1][3]

On April 8, 2026, the City Council adopted a resolution authorizing Sales Tax Revenue Bond Anticipation Notes, Series 2026, according to a notice signed by the city recorder. The notes were to pay for construction of "a railroad underpass and all related improvements" and the cost of issuing them. ^[1]

What the notice says

The notice set limits of $30,000,000 in principal, a term of no more than four years and interest of no more than 6.5% a year. ^[1]

It says the notes are "special limited obligations" payable as to interest solely from the city's local sales and use tax revenues and up to 100% of other sales or excise taxes legally available to be pledged. It says they are payable as to principal "solely from the proceeds of the sale of excise tax revenue bonds secured by the Revenues to be issued at some future date." ^[1]

Based on the city's plan of finance at the time, the notice estimated $3,965,937 in interest if the notes were held to maturity, for a total of $33,965,937. It said: "The City expects to refinance the $30,000,000 principal amount of the Notes prior to the maturity of the Notes through the issuance of a longer term bond." ^[1]

Closing and the budget's description

At the May 27 council meeting, City Manager Bruce Kartchner reported that "the $30 million revenue anticipation bonds closed that day, and the money was now available to continue the 14600 South project," according to the minutes. He also reported that Union Pacific had given formal approval to access its right-of-way. ^[2]

The adopted fiscal 2027 budget says revenue for the project "will come from State allocations and EDA funds." It says that because the project was already underway, "the City issued a short-term bond anticipation note that is secured and planned to be repaid with the State funds." ^[3]

The records reviewed do not include the notes' closing documents, the final principal, interest rate or maturity, or any agreement setting the amount and timing of state funding. They do not show how the planned state repayment relates to the future-bond repayment described in the notice. ^[1][2][3]

Annual appropriations

The capital projects fund recorded $7,525,732 of actual railroad crossing spending in fiscal 2025, budgeted $40,000,000 for fiscal 2026 and budgets $50,000,000 for fiscal 2027. The fiscal 2026 column of the same fund lists $30,000,000 of bond proceeds and $12,000,000 from the state of Utah for transportation. These are budget amounts, not a project total. ^[4][5]

The Eastern Bluffdale EDA's fiscal 2026 budget included a separate $20,000,000 line for the railroad crossing. The fiscal 2027 budget says the EDA has committed much of its existing funds to the underpass. ^[7][8]

October proposals

The packet for the Oct. 14 council meeting proposes adding $795,000 of debt service interest to the capital projects fund, described as "2026 Sales Tax Revenue Bond Payments, offset in part by interest income." The same schedule would raise budgeted interest income in that fund by $250,000. ^[6]

The proposal also moves $1,000,000 from the general fund to the capital projects fund, described as "General Fund balance available to use towards Underpass and other Capital Projects." ^[9]

The resolution in the packet has blank signature and vote lines, and the records reviewed do not show whether the council adopted it. ^[10]

Draft Sept. 23 council minutes in the same packet record the contractor's executive vice president saying the underpass construction was expected to be completed in early spring. ^[11]