Cottonwood Heights' $20 million Hillside Plaza bonds paid off 2023 debt, leaving $5.2 million unspent
In June 2025 Cottonwood Heights issued $20,075,000 of the $30 million in general obligation bonds voters authorized for Hillside Plaza. The city's audit says the proceeds retired the $13,157,000 sales tax bond used to buy much of the shopping center, with $5,206,948 still unspent at June 30, 2025.
Continuing story: Auditing Cottonwood Heights
Cottonwood Heights' first general obligation bonds, issued in June 2025 for the Hillside Plaza redevelopment, were used to retire the debt the city took on to buy much of the shopping center in 2023, according to the city's audited report for the year ended June 30, 2025. [3]
Voters authorized up to $30,000,000 in general obligation bonds in November 2024. The city issued $20,075,000 of that amount in June 2025, and management's discussion says it anticipates issuing the remaining $10 million in the future when funds are needed. [3][9]
The bonds
The debt notes list two series dated June 4, 2025: Series 2025A, $15,070,000, tax-exempt, at 4.90%, maturing June 1, 2055; and Series 2025B, $5,005,000, taxable, at 5.64%, maturing June 1, 2038. The notes say the proceeds of both will be used for the purchase and development of the Hillside Plaza Shopping Center for the redevelopment agency. [1][2]
The debt table shows $290,000 of Series 2025B principal due within one year. [2]
The 2023 debt
The Series 2023 sales tax revenue bond was issued April 6, 2023 for $13,157,000 at 5.79%, to buy Hillside Plaza for the redevelopment fund. The audit shows the full $13,157,000 paid during fiscal 2025 and a zero balance at June 30, 2025. [1][2]
Management's discussion says the general obligation proceeds paid the $13,157,000 principal "plus accrued and prior paid interest charges." [3] The transfers note says the $13,275,839 moved from the Capital Projects Fund to the redevelopment fund was to facilitate that payoff. [5]
The redevelopment fund's budget schedule records $14,785,559 in fiscal 2025 community and economic development expenditures, against a final budget of $15,663,106 that the city had raised from $2,306,001 adopted. [6]
What was left
At June 30, 2025, the Capital Projects Fund held $5,206,948 restricted as unspent bond proceeds. [4] Management's discussion says that money is to be used for further land and building purchases and other redevelopment costs of the project. [3]
The audit's transmittal letter says the site is envisioned to become "The Heights," a town center, developed in collaboration with a development partner. [7] The July 14, 2026 proposed fiscal 2027 budget memo adds a $240,000 transfer from the redevelopment fund to the General Fund for land lease revenue at the Hillside Plaza town center. [8]
The 2023 bond was retired, not added to the new debt: the general obligation bonds replaced it. The $5,206,948 is restricted to the project and is not available for General Fund operations. Interest rates are those stated in the audit notes; the Ledger has not reviewed the bonds' official statements or amortization schedules.
Sources
- Cottonwood Heights · FY2025 Annual Comprehensive Financial Report, long-term debt notes
- Cottonwood Heights · FY2025 Annual Comprehensive Financial Report, changes in long-term debt
- Cottonwood Heights · FY2025 Annual Comprehensive Financial Report, management's discussion of debt
- Cottonwood Heights · FY2025 Annual Comprehensive Financial Report, governmental funds balance sheet
- Cottonwood Heights · FY2025 Annual Comprehensive Financial Report, interfund transfers
- Cottonwood Heights · FY2025 Annual Comprehensive Financial Report, CDRA budget and actual
- Cottonwood Heights · FY2025 Annual Comprehensive Financial Report, transmittal letter, Hillside Plaza
- Cottonwood Heights · July 14, 2026 FY2026-27 proposed adopted budget memo (state-filed copy), deficit items
- Cottonwood Heights · FY2025 Annual Comprehensive Financial Report, management's discussion of long-term debt
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.