Herriman council authorizes preliminary bond documents to fund road projects; staff cites up to $220 million

Herriman City Council on March 12 authorized city staff to finalize and distribute a preliminary official statement and related documents to begin the public sale process for franchise tax revenue bonds tied to 2025 projects.

City staff presenter Kyle said the document is intended for potential bondholders and underwriters and outlined a tentative schedule: the city expected to receive a credit rating around March 21, distribute the preliminary official statement later in March, and hold a public bond sale tentatively scheduled for April 10. Kyle said the bond proceeds will fund several road projects required by master development agreements, and identified 6400 West as the largest of those obligations.

The published text presented to the council included one reference to “not more than $20,000,000 aggregate principal amount” for a series of franchise tax revenue bonds, while the motion put forward by a councilor referenced an aggregate principal amount of “not more than $220,000,000.” The council approved Resolution R13-2025, authorizing the preliminary official statement and related actions to proceed.

A councilor noted that some master development agreement obligations date to 2016–2017 and said completing long-standing MDA responsibilities was a priority. No final sale date or final bond size was adopted at the meeting; staff said the final sizing and timing will depend on market conditions and the city’s financial adviser.

The council voted to authorize staff to take the steps necessary to consummate the bond transaction under the terms approved in the resolution and related documents.