Provo council approves $20 million transportation-sales-tax bonds for airport terminal expansion

The Provo Municipal Council voted unanimously on Feb. 10 to reauthorize up to $20,000,000 in transportation sales tax revenue bonds and approve an interlocal agreement with Utah County to support construction of an expanded airport terminal. The vote followed a required public hearing and questions about repayment plans and lender due diligence.

Public Works administration division director Jimmy McKnight told the council the earlier resolution authorized the bond amount and that this hearing was required to address Internal Revenue Service considerations and lender concerns about county authorization. McKnight said the city’s intent is to repay the bonds earlier than their legal term using airport revenues; staff said the legal term is 15 years but the city is aiming to retire the debt in seven to eight years.

McKnight also said Utah County earlier approved an interlocal agreement committing to maintain the county authorization of the sales-tax revenues at least through the life of the bond issuance to reassure potential buyers. Airport director Brian Torgerson and bond counsel Eric Hunter were available to answer finance and tax questions.

During public comment a longtime airport advocate recounted decades of involvement with airport planning and urged the council to appoint board members who provide independent neighborhood perspectives. Councilors asked staff to clarify what transportation projects would be foregone if the quarter-cent sales tax revenue is used for the airport; McKnight said the sales tax can fund roads, sidewalks and airports and that multiple revenue sources remain available for transportation projects.

The council then took an implied motion on the resolution and interlocal agreement and the motion passed 6–0.