Grantsville moves to issue up to $5 million in sales-tax bonds, approves budget amendment for Matthews Lane and park funding

The Grantsville City Council on March 5 approved a fiscal year 2025 budget amendment to fund the Matthews Lane project and park improvements and voted to authorize a parameters resolution allowing the city to pursue up to $5 million in sales-tax revenue bonds to pay for the work.

Council members said the two projects were bundled into a single bond to save on issuance costs, and the council and its financial adviser discussed repayment terms, anticipated grant funding and how new commercial development could accelerate debt repayment.

The amendment was presented to the council with an explanation that combining two projects into one bond would save on issuance and advisory fees — staff and the city’s financial adviser estimated savings of about $30,000–$40,000 compared with issuing two separate bonds. The packet shown to the council included a $2,500,000 line for park improvements; staff said project budget numbers remain estimates until the city solicits contractor bids.

During public comment, resident Nick Jenkins said the cost being asked of Grantsville taxpayers was too high and questioned the transparency around the park portion. “I was looking at the numbers there, and that’s a lot to ask for the people of Grantsville … $3,350,000 divided by 16,000 is … about $200 a person,” Jenkins said, adding he had expected more grant funding for the park.

City staff replied that the park and Matthews Lane had some grant proceeds already included in the capital budget: one capital-project grant of $250,000 and a GOED (Go Utah) grant shown in the water fund for $391,005.40; staff said portions of the Matthews Lane work are being allocated across the capital projects, water and sewer funds to keep assets in their appropriate funds.

Financial adviser Alex Buxton explained the parameters resolution adopted by the council sets a not-to-exceed amount of $5 million and a not-to-exceed interest rate of 7 percent for legal authorization; Buxton said preliminary market estimates put the likely true interest cost around 5 percent and that the team expected to structure the financing as a roughly 20-year borrowing. Buxton also said shorter terms generally produce lower rates and the city could ask bidders to provide 10-, 15- and 20-year scenarios for council consideration.

Council members asked how quickly the bond could be repaid. Staff said they planned a 20-year structure to allow time for the commercial properties in the Matthews Lane area to develop; they also said tax revenue from future sales and rising property tax collections from newly developed commercial pads could allow the city to accelerate repayment.

The council voted to adopt the budget amendment and the parameters resolution. City staff said adopting the parameters resolution does not bind the city to close the bonds but allows the city to publish required notices and proceed with a bid process and a public hearing on the issuance.

Votes at a glance: - Approval of minutes: motion approved (voice vote). - Approval of bills: motion approved (voice vote). - Resolution 2025-14, FY2025 budget amendment (Matthews Lane and park): approved (motion and second; roll call voice votes). - Parameters resolution authorizing issuance and sale of sales-tax revenue bonds, series 2025 (not to exceed $5,000,000): approved (motion and second; roll call voice votes).

Staff said they will return with firm bids, an updated payment schedule and additional scenarios that include shorter amortizations and different call provisions for council review before any final bond sale.

Ending: Council members asked staff to continue pursuing grant opportunities for the projects, to provide more detailed project cost estimates when bids return, and to supply alternative bond-term scenarios (10-, 15- and 20-year) for the council to evaluate before finalizing any sale of bonds.