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Council hears $21.5M estimate for public safety building; tax and timing questions raised
Summary
Staff presented a preliminary $21.5 million public safety building with $1.5 million requested for FY27 design and warned that most costs are not impact‑fee eligible; councilors asked for more detailed cost breakdowns and noted tax‑rate implications before any bond decision.
Herriman staff presented a preliminary design and funding overview for a proposed public safety building, saying design could begin in FY27 with construction in FY28 and a total estimated cost of about $21.5 million.
Kyle told the council the FY27 request is $1.5 million for design and engineering, with the bulk of construction shown the following year. "So, historically, public safety has been funded by the HCC," Kyle said, and he added that a bond to cover the building would likely require a tax increase depending on the final financing structure. He noted that only about $2.4 million of the $21.5 million was impact‑fee eligible under current rules.
Councilors pressed staff on sequencing and alternatives. Staff flagged related costs for police substations and two additional fire stations; the council was told approximately $1.6 million was shown for substations but funding sources remained undetermined. Staff emphasized the need to update long‑range fiscal models to understand property tax impacts and to monitor response‑time data as station timing is set.
Staff advised the council that bond timing must account for IRS rules (arbitrage) and an 18‑month window for spending bond proceeds. Kyle recommended refining contractor estimates, factoring equipment (FF&E) costs not always included in construction estimates, and returning with scenarios that show tax impacts and debt service for alternative phasing.
No formal bond authorization or vote occurred at the meeting; staff will return with detailed cost breakdowns and financing scenarios for council review.
