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Council holds public hearing on $3.5M sales-and-franchise tax bond package for police station and city hall
Summary
Harrisville held the required public hearing after adopting a parameters resolution in April to issue $3.5 million in sales-and-franchise tax revenue bonds to complete financing for a new police station and city hall. Staff said the issue would not raise taxes and that current market rates are under 5% in negotiations with Bank of Utah.
Harrisville — The City Council held a public hearing on a proposed $3.5 million sales-and-franchise tax revenue bond package intended to complete financing for a combined police-department and city-hall project at the new City Road 1750 North site.
Jenny, a city staff member, briefed the council by noting that the council had adopted a parameters resolution in April authorizing the issuance of $3,500,000 in sales-and-franchise tax bonds. The public hearing provided an opportunity for residents to comment on the additional issuance; no public speakers requested time at the hearing.
Why it matters: Staff and bond advisers said the additional issuance completes project financing without increasing taxes. "This additional 3 and a half million dollars for the police station and city hall project completes that financing," said a staff member speaking for the bond team. "It's being paid for by budget adjustments within the current budget...there's no tax impacts related to the payment of this debt service."
Rate and term discussion
A staff presenter addressing financing terms said the city has flexibility in structuring the debt. He provided a market context and candidate rate: "We're actually looking at a rate under 5%, and that's being negotiated currently with Bank of Utah," he said, noting the city had set a 20‑year structure in parameters but expected flexible call features that would allow refinancing or additional principal payments if budgets permit.
Council and next steps
The council opened and then closed the public hearing during the meeting; no additional public comment was recorded. Staff said the additional issuance would be final as part of the city’s financing plan and that contractual terms remained under negotiation with participating lenders. The hearing itself was procedural: it satisfied notice requirements and gave residents a chance to speak prior to finalizing financing arrangements.
