Debt review committee urges council to approve reimbursement resolution for Peace Coliseum purchase

The Salt Lake County Debt Review Committee voted unanimously to recommend that the Salt Lake County Council consider and approve a resolution declaring the county’s intent to reimburse itself for project costs associated with acquiring, improving or constructing a government center, the recently acquired Peace Coliseum and other county capital projects.

The recommendation grew out of an IRS requirement explained by Craig (staff member), who told the committee: "It's an IRS regulation that if you have the intent to reimburse yourself from future issuances, you need the legislative body to adopt a resolution naming that intent." Craig said the resolution would document intent and would not itself authorize the issuance of bonds.

The committee discussed timing and statutory look-back/look-forward limits tied to the IRS rule. Craig summarized those timing constraints as a 60-day look-back and an 18-month forward-looking period for eligible reimbursements. Committee members noted the Salt Lake County Council's calendar and the need to place the resolution on a council agenda before the IRS look-back deadline.

Mitch (committee member) moved that the debt review committee recommend the council consider and approve the resolution so the county could document its reimbursement intent in advance of any bond issuance; Sheila (committee member) seconded. The committee recorded the motion as approved unanimously. The motion also included a recommendation that the Municipal Building Authority be asked to consider the same resolution.

Committee members and staff discussed next steps for getting the item before the council. Chris (staff member) said the mayor’s office would work on placing the resolutions on the council agenda and advised the committee chair to send a letter to the council chair attaching the committee’s recommendation. Isaac (staff member) agreed to be copied on that letter. Chris also cautioned that "this vote today is not sufficient for the council staff to put it on the agenda" and that Greg and county staff must submit the required paperwork through the council’s agenda process.

No formal bond issuance or debt authorization was approved by the debt review committee; the committee’s action was a recommendation to the Salt Lake County Council and the Municipal Building Authority. The council and any borrowing authority would still need to take the separate, formal steps required to issue debt.