City Hall and Spring Lane lease revenue bonds
Financing for the City Hall seismic renovation and Spring Lane park through a Local Building Authority issuing lease revenue bonds of up to $11.5 million, with a hearing on Nov. 6, 2025. Sales and property tax are not pledged.
- Where it stands
- Approved
- Type
- Public project
- Location
- City Hall and Spring Lane, Holladay
Every hearing and vote
August 28, 2025 · City Council
Work meeting: City Hall upgrade and Spring Lane funding
Discussed
City Hall is estimated at $9.7 million (earlier $8.5 million) and Spring Lane at $9 million; Spring Lane phase 1 without a playground is $2.2 million. Sources discussed include a $1.7 million earmark not yet approved, about $1.8 million in capital fund balance and $1.2 million in grants. Lease revenue bonds through a local building authority with a 30-year lease, an estimated 4.5% rate and about $800,000 in debt service were modeled. Council consensus favored scenario 3 (wraparound debt). The mayor supported postponing fields and walking paths. Schedule: authority created Sept. 11, hearing Oct. 23, pricing about Nov. 17, closing early December. The source gives inconsistent combined totals ($17.6 million and $18.7 million).
September 11, 2025 · City Council
Resolution 2025-23: create a Local Building Authority
Approved · 5-0
The authority would finance City Hall, with the building as primary asset. Security is a leasehold pledge, and the park's leasehold interest, not the ground, is pledged. Sales and property tax are not pledged, preserving capacity for future road bonds. The interest rate is somewhat higher than the alternative. Council Member Durham asked about collateral and the city attorney explained foreclosure. No bond amount was stated.
September 18, 2025 · City Council
Resolution 2025-24: master lease with the Local Building Authority, up to $11.5 million lease revenue bonds
Approved · 5-0
Staff explained the lease-back structure; a future council could decline lease payments without creating long-term debt, preserving sales tax for other projects.
September 18, 2025 · City Council
Local Building Authority resolution 2025-03: issuance of not more than $11.5 million lease revenue bonds
Approved · 5-0
Parameters: interest not above 6.5%, maturity up to 25 years, discount up to 3%; the chair and vice chair may give final approval within them. A public hearing is set Nov. 6.
December 11, 2025 · City Council
City manager report: bonds, City Hall bids and legislation
Discussed
The lease revenue bonds sold at a true interest cost of 3.918% with total debt service of about $16.9 million; closing expected the next week. At least five contractors were invited to bid City Hall reconstruction, with bids due Jan. 21, 2026. Legislative previews included a 5% cap on Truth in Taxation increases and a change in the residential exemption from 45% to 55%.
March 5, 2026 · City Council
Public hearing: fiscal 2026 budget amendment (third)
No action
The General Fund appropriates $226,252 more fund balance and cuts the contribution to fund balance by $85,997 (combined $312,249), raises the building inspection contract by $40,000 and transfers $201,150 to the Local Building Authority for the 2025 bond. No public comment; no vote recorded.
March 19, 2026 · City Council
Ordinance 2026-02: fiscal 2025-26 budget amendment (third)
Approved · 6-0
Adopts the amendment heard March 5.
May 14, 2026 · City Council work session
Overview of fiscal 2026-27 tentative budget
Discussed
Property tax is 24% of revenue and sales tax 21%, with sales tax budgeted up 3.62%. The budget adds a city prosecutor and two part-time legal assistants (personnel up $585,000) and converts a part-time inspector and a part-time court administrator to full-time. The cost-of-living adjustment is 2.7%. Unassigned General Fund balance is estimated at $8,141,000. Unified Police rises 2.4% ($199,000), Unified Fire Authority 2.11% ($67,000) and the county public works contract 10.3% ($311,000). Debt service on the 2025 bond is $492,000. Mayor Fotheringham was pleased there is no property tax increase; Council Member Quinn asked how translation costs are split with other cities.
August 6, 2026 · City Council
Work meeting: Spring Lane Park funding and procurement
Discussed
Local Building Authority funding is $17.6 million, with City Hall renovation about $7.6 million. The full field renovation, option 1 at about $9.1 million, was supported, leaving roughly $970,000. Procurement options included design-bid-build, design-build and a modified construction manager approach. The council and mayor supported the name Spring Lane Park; an RFP goes out in August, with spring construction and completion targeted for November.