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Council sets parameters for up to $55M sales-and-franchise tax revenue bonds; public hearing set
Summary
Midvale City adopted a resolution setting parameters for sale of up to $55 million in sales-and-franchise-tax revenue bonds and scheduled a public hearing on the bond documents for June 17.
Midvale City Council on June 3 adopted a resolution setting parameters for issuance of up to $55 million aggregate principal amount of sales-and-franchise-tax revenue bonds and set a public hearing on the bond documents for 7 p.m. on June 17.
City staff said the parameters resolution does not finalize terms but sets maximums to enable bond marketing and sale documents to move forward. The approved parameters include a maximum aggregate principal amount of $55,000,000, a maximum interest rate of 7.0%, a maximum maturity of 35 years and a minimum sales price at or above 96% of par. Staff also clarified that the resolution expressly includes the county transportation sales tax (the "fifth" mentioned in state code) among the pledged revenues.
Why it matters: the bonds are projected to fund transportation and capital projects identified in the city'wide capital plan; adopting parameters is a required step before the city adopts final bond documents and proceeds to sale. The council vote was unanimous; a public hearing and final action on the bond documents is scheduled for June 17.
