Grantsville council considers up to $5 million bond to advance Matthews Lane project and hold funds for Scenic Slope Park

GRANTSVILLE, Utah — At a Grantsville City Council work meeting on Feb. 19, 2025, city staff asked the council to approve a bond parameters resolution that would allow a bond “not to exceed” $5,000,000 to move the Matthews Lane infrastructure project forward and, if funds remain, to allocate money for Scenic Slope Park.

Sherry, a city staff member responsible for the project budget, said the current engineer estimate for Matthews Lane is $2,787,000 and that the city needs to begin the bonding process so the work does not delay a planned McDonald's development. She told the council the parameters resolution is a “do not exceed” amount and that any funds not used for Matthews Lane could be applied to the park.

The request is presented as a parameters resolution, which sets the maximum amount the city could borrow rather than a commitment to borrow the full sum. Financial advisor Alex Wexton advised the council that, if the city expects to spend the funds within a year, it is usually cheaper to issue a single, larger bond to avoid duplicate issuance costs. "If you're gonna spend the money within a year, do it all in one, put it in the bank," Wexton said. Staff provided example figures showing combined issuance costs fall when smaller projects are bundled, though staff said those examples were estimates.

Staff described how the project budget incorporates multiple funding sources and grants. Sherry said grant awards are being allocated across funds — the capital projects fund for streets and site work, the water fund for water and storm-drain work (including a governor's office of economic development grant), and a small portion to the sewer fund for an RV dump station and an increase for water meter purchases. She said splitting grants this way simplifies accounting and keeps principal and interest handling more straightforward.

Council members asked about project components and outside costs. Staff estimated the Rocky Mountain Power portion of utility work at about $75,000 and said some work on Murphy Street would be a developer responsibility. Staff also said discussions with the Utah Department of Transportation (UDOT) indicate UDOT would consider budgeting for the Main Street portion and could reimburse the city if the city's contractor performs the work.

On the park planning side, Heidi, a parks staff member, and Christie, a city staff member overseeing procurement, said the design request for proposals (RFP) for Scenic Slope Park drew interest. Christie said six firms attended a pre-bid meeting and at least eight firms had reviewed or inquired about the RFP. Proposal submissions are due March 12; staff said they hope to present the matter to the council on March 19.

Sherry told the council the city is recommending a $5 million parameters amount so the city can complete the bonding steps without delay. She said if Matthews Lane comes in near the estimate, the city would have about $2,000,000 available for the park. Staff said Zions Bank has been contacted to begin work on the bond and that staff would revise the amendment and release it for public review if the council is comfortable with the parameters amount and including parks.

Council members spoke in favor of proceeding with the recommendation during the meeting, saying they were "fine with" the proposed parameters amount. The transcript records those verbal assents but does not record a formal vote adopting the parameters resolution at the Feb. 19 meeting.

A separate topic raised during the meeting concerned a development agreement and an unresolved fee-in-lieu payment. A council member asked about a claim from Jake Benson that he had completed a final payment; staff said they had not received confirmation and that the development agreement's fence details remain open to interpretation.

Next steps recorded in the meeting: staff will update the budget amendment to include the park if the council wants it added, circulate the amendment for public notice, coordinate with Zions Bank and the city's financial advisor on the bond parameters, and accept design proposals for Scenic Slope Park with a target council review on March 19. No formal bond issuance or parameters resolution adoption was recorded in the meeting minutes provided.