Utah County offers $78 million for Provo Airport expansion; council approves initial appropriations

Provo Municipal Council accepted a proposed $78,000,000 contribution from Utah County to build the full 10‑gate expansion of the Provo Municipal Airport and approved initial appropriations to begin work on baggage, ticketing and terminal design.

Deputy Mayor Isaac Paxman told the council the county’s offer would come from the county’s tourism tax revenue and would not create a new local tax. Paxman said the contribution was presented to the city as a “go all the way” gift to accelerate construction of the next phases of the terminal and to preserve expiring federal grants for baggage and ticketing work.

The county’s commitment followed state and regional support the airport has already received, Paxman said, and builds on recent airline growth at Provo. The council voted 6–1 to approve a resolution consenting to the interlocal agreement with Utah County. Council roll call on that item recorded one “no” vote and six “yes” votes; the motion passed 6–1.

Councilors then approved a resolution appropriating $19,500,000 in the airport fund, funded by the county contribution, for the fiscal year ending June 30, 2025. That appropriation passed unanimously, 7–0. Councilors also approved a separate transfer of $650,124 from the general fund to the airport fund to cover an interfund loan payment and appropriated $160,071 in the airport fund for interest expenses; that measure passed 7–0.

Administrative Services Director John Borgott described an outstanding interfund loan from 2020 that helped purchase land near the airport and said the airport would not be able to make the scheduled payment this year without the transfer from the general fund. Borgott said the loan began at roughly $4.9 million and after the payment will be under $2.5 million.

Why it matters: the county contribution accelerates an expansion that city staff said will help preserve federal funding and support continued airline service growth at Provo. Council discussion touched on long‑term airport self‑sufficiency, the fiscal sequence needed to capture grants, and the tourism‑tax source for the county gift.

Council members who spoke in favor highlighted the county’s use of tourism tax revenue, the airport’s recent passenger growth, and the expected local economic benefits. One councilor voted against the interlocal consent, citing concern about expanding before the airport is financially self‑sufficient.

Next steps: staff said the county will deliver parts of the funding over time; the $19.5 million appropriation was described as an initial “shot in the arm” to start immediate design and baggage/ticketing work so expiring federal grants are preserved.

Votes at a glance: Consent to interlocal agreement with Utah County (accept $78,000,000 commitment) — passed 6–1. Appropriation of $19,500,000 in the airport fund (FY ending 06/30/2025) — passed 7–0. Transfer of $650,124 from general fund to airport fund and appropriation of $160,071 for interest — passed 7–0.