Tusayan council hears municipal-bond briefing on financing options for town-owned parcels

Town of Tusayan council members received a presentation on Aug. 13 about municipal-bond options the town could use to finance development of town‑owned parcels.

Town Manager Hendrix introduced Financial Advisor Janelle Gold and Bond Counsel Zack Sakas, who walked the council through issuance steps, post‑issuance compliance and differences among financing structures. Gold said the town's theoretical general‑obligation bond capacity is about $4.3 million based on current property values, noting a general‑obligation issuance would be tied to property‑tax backing.

Sakas described tax‑exempt and other market structures and cautioned that agreements with co‑users — for example, the Grand Canyon School District — need attention. "The Town wants that IGA to extend past the term of the bond," Sakas said, adding that investors will seek assurances that lease or intergovernmental‑use agreements are not easily terminable during the bond term.

A member of the public on Zoom, John Thurston, asked who would be responsible for bond repayment if Tusayan were to disincorporate. Sakas said such a risk should be disclosed to investors and that bond documents could include an extraordinary optional redemption feature allowing early repayment if disincorporation occurred, rather than leaving a lingering obligation for successor entities.

Gold and Sakas emphasized they would structure financing to avoid common post‑issuance compliance pitfalls. No formal action or vote on bond issuance took place at the meeting; the briefing was intended to inform council direction and next steps.

The council will review follow‑up materials and staff recommendations before any formal financing decision is brought back for action.