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Utah County unanimously approves conduit bond resolutions to finance Intermountain projects
Summary
The Utah County Board of Commissioners held a public hearing and approved three separate bond resolutions allowing Intermountain Healthcare to issue tax‑exempt bonds through the county as a conduit issuer; county officials said the county’s finances and bond rating are not at risk and proceeds will be used by Intermountain.
Utah County commissioners voted unanimously to approve three bond resolutions that will allow Intermountain Healthcare to issue tax‑exempt bonds through the county as a conduit issuer.
Matt Doug Dell, financial adviser to the county with George K. Baum & Company, explained the structure during a public hearing, saying the county is not “going into the health care business” and that no county tax dollars will be used. He told the commission the county’s financial statements and bond rating would not be affected by acting as conduit.
Chris Walrath, bond counsel at Chapman and Cutler, walked commissioners through the three separate resolutions. He said item 11 covers fixed‑rate bonds not to exceed $300,000,000; item 12 would authorize puttable bonds with shorter put dates; and item 13 would authorize variable‑rate bonds supported by a liquidity facility from TD Bank. “In order for the bonds to be tax exempt, they need to be issued by a governmental entity,” Walrath said, describing how not‑for‑profit health systems commonly use county conduits.
Commissioners clarified the not‑to‑exceed amounts advertised for the hearing are flexible caps rather than firm issuance plans. Walrath and Matt Doug Dell said the combined not‑to‑exceed numbers provide market flexibility, but that Intermountain expects ultimately to issue roughly $350,000,000 in this series, not the aggregate cap listed in the hearing notice.
A county official answered a common question about tax‑exempt status by citing statute and prior interlocal arrangements with other counties. One commissioner summarized that state law allows conduit financing and said the county’s participation stems from that statutory structure and the longstanding partnership with Intermountain.
The commission voted, 3–0, to approve each of the three resolutions. Minutes will be shared with Salt Lake County officials, who had asked Utah County to hold the public hearing on their behalf; Salt Lake County will still conduct its own TEFRA approval process.
Next steps: Intermountain will price the bonds in the coming weeks and finalize allocations among the three authorized types based on market conditions.
