Board approves addition of warehouse remodel to 2021 bond plan to avoid arbitrage

Brock Mitchell asked the board to formally adjust the plan of finance for the remaining 2021 general obligation bond proceeds to add the warehouse remodel project. Mitchell said all originally authorized bond projects were complete and that about $5,400,000 remained in the bond proceeds. To avoid arbitrage payments the district must spend the funds, so staff recommended moving the warehouse remodel (already underway) into the bond plan.

Mitchell told the board the proposed change meets state code requirements for adding projects to an existing bond and noted that Utah law requires adding one project per meeting when changing a plan of finance. He said the warehouse remodel cost is approximately $3,800,000. Board members asked procedural questions about bond spend-down timing and arbitrage; Mitchell replied with the general obligation bond spending benchmarks.

A board member moved and the board approved the adjustment by voice vote; there was no roll-call vote recorded in the transcript.

Staff said the revised plan and project information would be posted on the district website as part of state requirements for bond transparency.