Lehi's 2004 Cabela's bonds ended in 2024 with $7.96 million unpaid and forgiven
The $9 million in bonds were repaid only from 87.5% of the Cabela's store's sales tax. When they matured in September 2024, bondholders forgave the remaining balance, as the bond terms required.
Continuing story: Auditing Lehi
When Lehi's 2004 subordinated sales tax revenue bonds matured in September 2024, $7,955,000 of the original $9 million was still unpaid, and the bondholders forgave it, according to the city's fiscal 2024 and 2025 financial reports. [1][2]
The city recorded a $7,955,000 gain on the forgiveness in fiscal 2025. [2]
How the bonds worked
The bonds carried 4.75% interest, and payments on them came from "87.5% of sales tax collections from the Cabela's store," the reports say. [2]
The bond covenants said that if the bonds were not paid in full by the September 2024 maturity, "the remaining outstanding balance shall be forgiven by the owners of the bonds." [3]
The fiscal 2022 report said collections had been "sufficient to pay interest and some principal." [3]
The fiscal 2025 report says capital project funds provided the debt service on the bonds. [2]
Other sales tax bonds
Lehi still owes on sales tax revenue bonds from 2018, used mainly for a fire station, and from 2019, used mainly for a police station, with $21.3 million outstanding including premiums on June 30, 2025. [2]
Sales tax revenue in fiscal 2025 was $25.8 million, and debt service on those bonds was $1.87 million, the report says. [2]
Sources
- Lehi City · FY2024 annual comprehensive financial report
- Lehi City · FY2025 annual comprehensive financial report
- Lehi City · FY2022 annual comprehensive financial report
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.