Spanish Fork building authority authorizes up to $83 million in bonds for fire station and public works
Spanish Fork's Local Building Authority authorized up to $83 million in lease revenue and refunding bonds on June 2, 2026, for a fire station, a public works building and the refinancing of older authority bonds. Its notice estimated $70 million in new bonds; the records reviewed do not show a sale.
Continuing story: Auditing Spanish Fork
The Local Building Authority of Spanish Fork City voted 5-0 on June 2, 2026, to authorize the issuance and sale of up to $83,000,000 in lease revenue and refunding bonds, according to the meeting's adopted minutes. Trustee Shane Marshall moved, and Trustee Kevin Oyler seconded. [1]
The City Council then voted 5-0 to approve a master lease agreement and ground lease agreement with the authority and the issuance of not more than $83,000,000 in bonds. [1]
What the bonds would pay for
The authority's published notice lists four purposes: building a fire station and a public works building and related improvements, refunding certain outstanding authority bonds, funding any required debt service reserve and paying issuance costs. [2]
The notice sets a maximum term of 21 years, a maximum interest rate of 6.00% and a minimum sale price of 98% of principal. [2] At the June 2 meeting, staff said they expected a rate in the four percent range. [1]
The notice says the authority had $26,101,000 in lease revenue bonds outstanding, of which $10,536,000 was expected to be refunded. With an estimated $70,000,000 in new Series 2026 bonds, it estimated total outstanding par of $91,860,000. [2]
It estimated total debt service of $96,202,094 if the bonds are held to maturity. [2] The bonds would be repaid from rent the authority receives from leasing the project to the city on an annually renewable basis. [2]
A separate notice posted for the July 7, 2026 hearing forecast average annual principal and interest of $5,655,595 and expected annual city lease payments of $5,684,834. [3]
The projects
At a July 7, 2026 work session, staff described a public works building of about 83,000 square feet, with construction costs of about $37 million and a total project budget of about $46 million, including demolition, design, permitting and other soft costs. Staff said Big-D Construction is the construction manager/general contractor and that a guaranteed maximum price for the main building was expected early the following year. [4]
At the June 2 work session, staff described a ten-year repayment schedule for Fire Station 61 and a twenty-year period for the public works portion. [1] In March, staff had estimated borrowing for the station at no more than $15 million. [5]
The hearings
The authority held the two required public hearings on July 7, 2026, one on the projects' economic impact and one for public input on the bonds. The adopted minutes record no public comments at either hearing. [4]
The records reviewed do not show whether the bonds have since been priced, sold or closed.
The $83 million figure is a maximum authorized by resolution, and the $70 million, $96.2 million and annual payment figures are estimates in public notices. None is a record of bonds sold. Refunded older bonds are not new project spending.
Sources
- Spanish Fork City Council, RDA and LBA · June 2, 2026 adopted minutes
- Local Building Authority of Spanish Fork City · Notice of public hearing and bonds to be issued, Series 2026
- Spanish Fork City Council & Local Building Authority · Notice of intent to issue a lease revenue bond (posted for July 7, 2026)
- Spanish Fork City Council and LBA · July 7, 2026 adopted minutes
- Spanish Fork City Council · March 24, 2026 adopted minutes
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.