Hatch Park bonds: $15.1 million owed through 2047, with redevelopment money helping pay
North Salt Lake borrowed $16,692,000 in 2022 to expand Hatch Park. The city still owed $15,117,000 of that principal in mid-2025, with payments of about $1.14 million a year through 2047. Redevelopment-area transfers help cover the payments, and most of the bond money was budgeted to move into park construction in fiscal 2026.
Continuing story: Auditing North Salt Lake
North Salt Lake issued $16,692,000 in Series 2022 sales tax revenue bonds on Dec. 7, 2022, to finance expansion and improvements at Hatch Park, according to the city's fiscal 2025 audit. The bonds were sold through a direct placement, carry an average interest cost of 4.889% and can be called at any time. [1]
At June 30, 2025, $15,117,000 of principal was outstanding after a $422,000 payment that year. Remaining principal and interest totaled $25,024,652 through the final payment on June 15, 2047. [1][2]
The city's fiscal 2027 debt schedule lists a payment of $1,137,286 for the year ending June 30, 2027: $450,000 in principal and $687,286 in interest. The annual payments remain close to that amount through 2047. [3]
Who pays
The bonds are paid from the city's debt service fund, which also receives the city's recreation, arts and parks (RAP) sales tax. In fiscal 2025, the fund took in $629,964 in taxes and $852,750 in interest. It also received a $740,000 transfer from the redevelopment agency. [7][5][4]
Management's discussion says the Redwood Road project area contributed the $740,000 to offset the annual Hatch Park debt payments. [4]
The fiscal 2027 budget worksheet lists a $400,000 transfer from the redevelopment agency fund and a $200,000 transfer from the Highway 89 redevelopment area. Both lines carry the note "As showin in orig. Hatch Park debt repmt plan." [5]
From bond proceeds to construction
At June 30, 2025, the debt service fund reported a total fund balance of $17,397,285, of which $17,499,536 was restricted for park capital improvements. That left a negative unassigned amount of $102,251, which management said the city would continue to address in fiscal 2026. [4][8]
For fiscal 2026, the budget worksheet shows $16,414,474 transferred from the debt service fund to the park capital fund. The park fund also receives $1,500,000 from the General Fund and $1,500,000 from the capital projects fund. [6]
The park capital fund's Hatch Park line is $19,414,474 in both the fiscal 2026 budget and the updated fiscal 2026 estimate. The fiscal 2025 actual is $585,526, and the fiscal 2027 line is zero. The fiscal 2026 figure is a budget estimate, not a record of payments or of a finished project. [6]
After the fiscal 2026 transfer, the budget projects the debt service fund's balance at $1,287,403 at the end of fiscal 2026 and $1,340,093 at the end of fiscal 2027. [9]
The bond amount, the principal still owed, the annual payment and the construction budget are four different measures and are not added together. Redevelopment transfers move money between city funds before it goes to bondholders, so they are counted once here.
Sources
- City of North Salt Lake · FY2025 ACFR, Note 8 Series 2022 bonds
- City of North Salt Lake · FY2025 ACFR, Note 8 debt summary
- City of North Salt Lake · FY2026-2027 final budget, Hatch Park bond schedule
- City of North Salt Lake · FY2025 ACFR, management's discussion of the RAP tax debt service fund
- City of North Salt Lake · FY2026-2027 final budget, debt service fund worksheet
- City of North Salt Lake · FY2026-2027 final budget, park development fund worksheet
- City of North Salt Lake · FY2025 ACFR, governmental funds revenues and expenditures
- City of North Salt Lake · FY2025 ACFR, governmental funds balance sheet
- City of North Salt Lake · FY2026-2027 final budget, Debt Service fund
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.