Series 2022 sales tax revenue bonds
Up to $19 million in sales tax revenue bonds authorized March 17, 2022 to fund road, stormwater and related projects. On May 19 the council raised the maximum coupon from 4.5% to 5%; the bonds later priced at a 3.15% true interest cost and an AA+ rating.
- Where it stands
- Approved
- Type
- Public project
Every hearing and vote
March 17, 2022 · City Council work session
Resolution 2022-07: Sales tax revenue bonds, Series 2022 parameters
Approved · 6-0
Authorizes bonds of up to $19,000,000 with an interest rate no higher than 4.5%, maturity no longer than 21 years and a sale price of at least 97% of par, so a pricing committee can act without returning to the council. Financial advisor Laura Lewis described an example of $18 million in project funds from about $16 million in bonds sold at a premium, an expected true interest cost of 2.7% to 3%, a monthly payment of about $90,000 against about $500,000 in monthly sales tax, and coverage of about 3.5 times. The motion added physical facility, road, stormwater and related improvements to the project cost definition on the advice of counsel. A public hearing was expected three to four weeks later and a market target of early May 2022.
April 14, 2022 · City Council work session
Public hearing: sales tax revenue bonds of up to $19,000,000
Discussed
Hearing opened and closed with no comments.
April 14, 2022 · City Council work session
Work meeting: bond project update and Holladay Hills agreement
Discussed
Direction was to proceed with the bond at the originally anticipated amount; the minutes cite both $18 million and $19 million at different points. Staff reviewed proposed changes to the tax increment, site development master plan and Agreement for Development of Land (ADL) for Holladay Hills, to be considered later. The minutes mention a tax increment base value of $34 million, compared with a 2008 assessment of $41 million, and stormwater projects of about $10 million.
May 19, 2022 · City Council
Resolution 2022-15: Modify sales tax revenue bond parameters
Approved · 6-0
The maximum coupon was raised from 4.5% to 5%. Construction proceeds would be $18 million either way, with a true interest cost of 3.65% at a 4% coupon and 3.57% at a 5% coupon, and debt service of about $1.51 million at 4% and $1.497 million at 5%. Pricing was targeted for June 1 or 2 after a rating on May 23 or 24.