HomeMy WebLinkAbout05/09/2023 - Work Session - Meeting MaterialsSALT LAKE CITY COUNCIL
REVISED AGENDA
WORK SESSION
May 9, 2023 Tuesday 1:00 PM
Council meetings are held in a hybrid meeting format. Hybrid meetings allow people to join online or in
person at the City & County Building. Learn more at www.slc.gov/council/agendas.
Council Work Room
451 South State Street Room 326
Salt Lake City, UT 84111
SLCCouncil.com
1:00 PM Work Session
will reconvene immediately following the 1:30 PM
Redevelopment Agency Meeting
No Formal Meeting
Please note: A general public comment period will not be held this day. This is the Council's monthly scheduled
briefing meeting.
Welcome and public meeting rules
In accordance with State Statute and City Ordinance, the meeting may be held electronically. After 5:00 p.m., please enter the
City & County Building through the main east entrance.
The Work Session is a discussion among Council Members and select presenters. The public is welcome to listen. Items
scheduled on the Work Session or Formal Meeting may be moved and / or discussed during a different portion of the Meeting
based on circumstance or availability of speakers.
The Website addresses listed on the agenda may not be available after the Council votes on the item. Not all agenda items will
have a webpage for additional information read associated agenda paperwork.
Generated: 13:30:02
Note: Dates not identified in the project timeline are either not applicable or not yet determined. Item start
times and durations are approximate and are subject to change.
The Council will convene at 1:00 p.m. to enter into a Closed Session. At the
conclusion of the Closed Session, they will hold the RDA meeting,
beginning at approximately 1:30 or 2:00 p.m. Please note: the Council will
return to the Work Session briefing items after the RDA meeting at
approximately 3:30 or 4:00 p.m.
Work Session Items
Click Here for the Mayor’s Recommended Budget for Fiscal Year 2023-24
1.Informational: Updates from the Administration ~ 4:00 p.m.
15 min.
The Council will receive information from the Administration on major items or projects
in progress. Topics may relate to major events or emergencies (if needed), services and
resources related to people experiencing homelessness, active public engagement efforts,
and projects or staffing updates from City Departments, or other items as appropriate.
FYI – Project Timeline: (subject to change per Chair direction or Council discussion)
Briefing - Recurring Briefing
Set Public Hearing Date - n/a
Hold hearing to accept public comment - n/a
TENTATIVE Council Action - n/a
2.Fiscal Year 2023-24 Budget: Administration’s Overview and
Revenue Update ~ 4:15 p.m.
45 min
The Council will receive a revenue update and an overview from the Administration of
the Mayor’s Recommended Budget for Salt Lake City for Fiscal Year 2023-24.
FYI – Project Timeline: (subject to change per Chair direction or Council discussion)
Briefing - Tuesday, May 9, 2023
Set Public Hearing Date - Tuesday, April 18, 2023
Hold hearing to accept public comment - Tuesday, May 16, 2023 and Tuesday, June 6,
2023 at 7 p.m.
TENTATIVE Council Action - TBD
3.Fiscal Year 2023-24 Budget: Council Staff Overview ~ 5:00 p.m.
45 min
The Council will receive an overview from Council Staff of the Mayor’s Recommended
Budget for Salt Lake City for Fiscal Year 2023-24.
For more information on this item visit https://tinyurl.com/SLCFY24.
FYI – Project Timeline: (subject to change per Chair direction or Council discussion)
Briefing - Tuesday, May 9, 2023
Set Public Hearing Date - Tuesday, April 18, 2023
Hold hearing to accept public comment - Tuesday, May 16, 2023 and Tuesday, June 6,
2023 at 7 p.m.
TENTATIVE Council Action - TBD
4.Resolution: Issuance of Airport Revenue Bonds, Series 2023 for
Financing the Construction of the New SLC International
Airport
~ 5:45 p.m.
20 min
The Council will receive a briefing about a parameters resolution authorizing the
issuance and sale of not more than $600,000,000 aggregate principal amount of one or
more series of Airport Revenue Bonds, series 2023, for the purpose of financing certain
Capital Improvements to the Salt Lake City International Airport. The Council's action
includes authorizing the execution of a supplemental indenture, a bond purchase
agreement, and other documents as required.
FYI – Project Timeline: (subject to change per Chair direction or Council discussion)
Briefing - Tuesday, May 9, 2023
Set Public Hearing Date - Tuesday, May 16, 2023
Hold hearing to accept public comment - Tuesday, June 6, 2023 at 7 p.m.
TENTATIVE Council Action - Tuesday, May 16, 2023
5.Dinner Break ~ 6:05 p.m.
30 min
FYI – Project Timeline: (subject to change per Chair direction or Council discussion)
Briefing - n/a
Set Public Hearing Date - n/a
Hold hearing to accept public comment - n/a
TENTATIVE Council Action - n/a
6.Fiscal Year 2023-24 Budget: Metropolitan Water District ~ 6:35 p.m.
30 min
The Council will receive a briefing about the proposed budget for the Metropolitan Water
District for Fiscal Year 2023-24.
FYI – Project Timeline: (subject to change per Chair direction or Council discussion)
Briefing - Tuesday, May 9, 2023
Set Public Hearing Date - Tuesday, April 18, 2023
Hold hearing to accept public comment - Tuesday, May 16, 2023 and Tuesday, June 6,
2023 at 7 p.m.
TENTATIVE Council Action - TBD
7.Ordinance: Budget Amendment No.6 for Fiscal Year 2022-23
Follow Up ~ 7:05 p.m.
30 min.
The Council will receive a follow-up briefing about an ordinance that would amend the
final budget of Salt Lake City, including the employment staffing document, for Fiscal
Year 2022-23. Budget amendments happen several times each year to reflect adjustments
to the City’s budgets, including proposed project additions and modifications. The
proposed amendment includes funding for adapting the Seven Canyons Fountain at
Liberty Park into a dry art piece, a roof replacement for the Steiner Aquatics Center, and
several proposals to use American Rescue Plan Act (ARPA) funding for revenue
replacement and a $10 million contribution to the Perpetual Housing Fund of Utah
among other items.
For more information on this item visit https://tinyurl.com/SLCFY23
FYI – Project Timeline: (subject to change per Chair direction or Council discussion)
Briefing - Tuesday, May 2, 2023 and Tuesday, May 9, 2023
Set Public Hearing Date - Tuesday, April 18, 2023
Hold hearing to accept public comment - Tuesday, May 2, 2023 at 7 p.m.
TENTATIVE Council Action - TBD
Standing Items
8.Report of the Chair and Vice Chair
Report of Chair and Vice Chair.
9.Report and Announcements from the Executive Director -
-
Report of the Executive Director, including a review of Council information items and
announcements. The Council may give feedback or staff direction on any item related to
City Council business, including but not limited to scheduling items.
10.Tentative Closed Session -
-
The Council will consider a motion to enter into Closed Session. A closed meeting described
under Section 52-4-205 may be held for specific purposes including, but not limited to:
a. discussion of the character, professional competence, or physical or mental
health of an individual;
b. strategy sessions to discuss collective bargaining;
c. strategy sessions to discuss pending or reasonably imminent litigation;
d. strategy sessions to discuss the purchase, exchange, or lease of real property,
including any form of a water right or water shares, if public discussion of the
transaction would:
(i) disclose the appraisal or estimated value of the property under
consideration; or
(ii) prevent the public body from completing the transaction on the best
possible terms;
e. strategy sessions to discuss the sale of real property, including any form of a
water right or water shares, if:
(i) public discussion of the transaction would:
(A) disclose the appraisal or estimated value of the property under
consideration; or
(B) prevent the public body from completing the transaction on the best
possible terms;
(ii) the public body previously gave public notice that the property would be
offered for sale; and
(iii) the terms of the sale are publicly disclosed before the public body
approves the sale;
f. discussion regarding deployment of security personnel, devices, or systems; and
g. investigative proceedings regarding allegations of criminal misconduct.
A closed meeting may also be held for attorney-client matters that are privileged pursuant to
Utah Code § 78B-1-137, and for other lawful purposes that satisfy the pertinent
requirements of the Utah Open and Public Meetings Act.
CERTIFICATE OF POSTING
On or before 1:00 p.m. on Monday May 8, 2023, the undersigned, duly appointed City Recorder,
does hereby certify that the above notice and agenda was (1) posted on the Utah Public Notice
Website created under Utah Code Section 63F-1-701, and (2) a copy of the foregoing provided to The
Salt Lake Tribune and/or the Deseret News and to a local media correspondent and any others who
have indicated interest.
CINDY LOU TRISHMAN
SALT LAKE CITY RECORDER
Final action may be taken in relation to any topic listed on the agenda, including but
not limited to adoption, rejection, amendment, addition of conditions and variations
of options discussed.
The City & County Building is an accessible facility. People with disabilities may make requests for
reasonable accommodation, which may include alternate formats, interpreters, and other auxiliary
aids and services. Please make requests at least two business days in advance. To make a request,
please contact the City Council Office at council.comments@slcgov.com, 801-535-7600, or relay
service 711.
Administrative
Updates
May 9, 2023
www.slc.gov/feedback/
Regularly updated with highlighted
ways to engage with the City.
Community Engagement Highlights
Community & Neighborhoods slc.gov/canBallpark NEXT / RDA Ballparknext.com
Planning slc.gov/planning
www.slc.gov/feedback/
Public Lands slc.gov/parks
•Parks, Trails, and Open Space General Obligation Bond engagements
•Taufer and Richmond Park (D4)
•Phase 1 open for Vision and desires for the Park
•Steenblik Park (D1)
•Phase 1 open for Vision and desires for the Park
•Donner Trail Park
•Open on May 17th (D6)
Community & Neighborhoods slc.gov/canMayor’s Office slc.gov/mayor
May Community Office Hours
Location Date Time
Taufer Park May 13 10am-12pm
Fairmont Park (near skate park)May 15 2:30pm-4:30pm
Café on 1st May 19 9am-11am
Jolley's May 22 3pm-5pm
Glendale Library May 24 4:30pm-6:30pm
www.slc.gov/feedback/
Community & Neighborhoods slc.gov/canMay Events
These events are a collection of City Sponsored, ACE events, and publicly permitted events.
Event Date Location
Mayor's Bike to work Day 5/11 Reservoir Park (Art Barn)
Resource Fair 5/12 Downtown Library
Queer Food FEASTival 5/12 Mountain West Cider
Urban Bird Festival 5/13-5/14 Tracy Aviary
Plant you Feet: Dance and Planting Festival 5/13 Jordan Park
A Celebration of Cultural Diversity –Multiethnic Performing Arts
21st Festival
5/13 The Gateway, Olympic Legacy Plaza
Spring Plant Sale 5/13 Rowland Hall
Sabores de Mi Patria/Flavors of My Homeland Workshop Series 5/17-9/27 Wasatch Community Gardens' Campus
Living Traditions Festival 5/19-5/23 Washington Square
1520 Block Park 5/27 The HERC
SLC Track Club & Deseret News Spring Series 5k 5/27 Memory Grove Park
HRC / Winter Overflow Utilization
•May 1st-5th:HRC's:99.5%
Rapid Intervention/ EIM
•EIM-None this week
•30 HEART-tracked camps
•RIT locations:
o VOA Outreach Engagement: 9
o RIT Site Rehabilitations: 14 (+17)
Resource Fair: Friday May 12th 9:30-12:30
@ Library Square
Taufer Park Block Party:Saturday May 13th
HEART + Central City CC
Next Kayak Court :May 19th-will be modified
due to elevated river
Homelessness
Update
for more information contact:
Salt Lake Valley Coalition to End
Homelessness (SLVCEH)
endutahhomelessness.org /
salt-lake-valley
Utah Office of Homeless Services
(OHS)
jobs.utah.gov/homelessness/
index.html
•Salt Lake City Proposed FY23-24 Budget
•Budget Overview
Budget Overview FY23-24 Budget
Presented by Lisa Shaffer, Mary Beth Thompson
And Lisa Hunt
FY23-24 BUDGET OVERVIEW
Presented by Lisa Shaffer, Chief Administrative Officer
BB
BUDGET COMMITTEE
Debra Alexander, Chief Human Resources Officer
Aaron Bentley, Chief Information Officer
Laura Briefer, Director of Public Utilites
Rachel Otto, Chief of Staff
Lisa Shaffer, Chief Administrative Officer
Blake Thomas, Director of Communities and Neighborhoods
Mary Beth Thompson, Chief Financial Officer
FY23-24 BUDGET OVERVIEW
Presented by Lisa Shaffer, Chief Administrative Officer
BB
BUDGET DECISION MATRIX
Mandate Reliance Community
Benefiting Equity ESG Resiliency Mayor Goals Council Priorities MSCW
0 There is no
mandate
Other Public
Sector entities
provide this
service
Indirect benefit
to the majority
of the
community
No impact in
historically
underserved
areas,
neighborhoods,
or persons
Does not focus
on any of the
ESG areas
Does not meet
any resiliency
criteria
Does not meet
any of the
Mayor's Goals
Does not meet
any of the
Council priorities
M
u
s
t
S
h
o
u
l
d
C
o
u
l
d
o
r
W
a
n
t
2 Self Mandate
Other Private
Sector entities
provide this
service
Direct benefit to
some of the
community and
indirect benefit
to the majority
of the
community
Small impact in
historically
underserved
areas
Focuses on 1-2 of
the ESG areas
Meets 1 -2
resiliency criteria
Meets 1-2 of the
Mayor's Goals
Meets 1-2
Council priorities
4 State or Federal
Mandate
The City is the
sole provider of
this service
Direct Benefit to
the majority of
the community
Large impact in
historically
underserved
areas
Focuses on all
the ESG areas
Meets 3 or more
resiliency criteria
Meets 3 or more
of the Mayors'
Goals
Meets 3 or more
of the Council
priorities
FY23-24 BUDGET OVERVIEW
Presented by Lisa Hunt, Deputy Chief Financial Officer
BB
TOTAL REVENUE
ALL FUNDS
Fund Type FY 23 Adopted Budget
FY 24 Recommended
Budget
Change from FY 23
Adopted
General Fund $425,537,407 $444,504,923 $18,967,516
Airport Enterprise Fund $384,681,671 $520,438,997 $135,757,326
Public Utilities Enterprise Funds $413,124,942 $508,778,032 $95,653,090
Other Enterprise Funds*$128,758,874 $122,465,603 -$6,293,271
Internal Service Funds $118,806,965 $136,631,414 $17,824,449
Capital Improvement Program (CIP) Fund $35,460,387 $29,034,160 -$6,426,227
All Other Funds $83,363,494 $66,900,978 -$16,462,516
Total $1,589,733,740 $1,828,754,107 $239,020,367
FY 24 Recommended Budget
General Fund Airport Enterprise Fund
Public Utilities Enterprise Funds Other Enterprise Funds*
Internal Service Funds Capital Improvement Program (CIP) Fund
All Other Funds
FY23-24 BUDGET OVERVIEW
Presented by Lisa Hunt, Deputy Chief Financial Officer
BB
GENERAL FUND REVENUE
FY23-24 BUDGET OVERVIEW
Presented by Lisa Hunt, Deputy Chief Financial Officer
BB
GENERAL FUND REVENUE MAJOR CHANGES
Property Tax increased by $3.1 million to recognize new growth and inland port
increment
Sales and Use Tax is budgeted to increase by $16.7 million due to robust retail spending
and increases in Municipal Energy Tax as a result of provider rate increases
Regulatory License Fees increased by $2.6 million as travel related business taxes
(Airport Parking and Innkeeper’s) continue to recover
Building Permit revenue decrease of $2.5 million. Construction activity slowing due to
higher interest rates
Interest Income increase by $5.9 million in line with market rate increases
Transfers decrease due to ending of American Rescue Plan (ARPA)
FY23-24 BUDGET OVERVIEW
Presented by Lisa Hunt, Deputy Chief Financial Officer
BB
HISTORY OF PROPERTY TAX
BY MINOR CATEGORY
FY23-24 BUDGET OVERVIEW
Presented by Lisa Hunt, Deputy Chief Financial Officer
BB
GIS VALUE
BY COUNCIL DISTRICT
FINAL ASSESSED VALUE
FY23-24 BUDGET OVERVIEW
Presented by Lisa Hunt, Deputy Chief Financial Officer
BB
GIS VALUE
BY COUNCIL DISTRICT
FINAL ASSESSED VALUE
FY23-24 BUDGET OVERVIEW
Presented by Lisa Hunt, Deputy Chief Financial Officer
BB
HISTORY OF GENERAL SALES TAX REVENUE
FY23-24 BUDGET OVERVIEW
Presented by Lisa Hunt, Deputy Chief Financial Officer
BB
GROSS POINT OF SALES TAX RECEIPTS
FY23-24 BUDGET OVERVIEW
Presented by Mary Beth Thompson, Chief Financial Officer
BB
TOTAL EXPENSE
FY23-24 BUDGET OVERVIEW
Presented by Mary Beth Thompson, Chief Financial Officer
BB
SALARY EXPENSE MAJOR CHANGES
ALL FUNDS –PERSONNEL EXPENSES
FY23-24 BUDGET OVERVIEW
Presented by Mary Beth Thompson, Chief Financial Officer
BB
EXPENSE MAJOR CHANGES
GENERAL FUND -MAJOR CHANGES
Contractual Changes and Inflation $3,007,961
Salary increases $10,703,939
CCAC salary Adjustments $391,464
Annualization of partially funded positions $1,428,953
Insurance $785,692
Expanded Citywide Events $219,500
Tenant Relocation $180,000
Tenant Resource
Center $46,000
Planning for a 15 minute City $100,000
Salary Adjustment for Prosecutors $200,000
IMS Transfer $3,799,920
Life Savings Account $500,000
Transit-Key Routes $400,000
Transit-On Demand $1,100,000
FY23-24 BUDGET OVERVIEW
Presented by name and title here
BB
EXPENSE MAJOR CHANGES
FUNDING OUR FUTURE -MAJOR CHANGES
FY23-24 BUDGET OVERVIEW
Presented by Mary Beth Thompson, Chief Financial Officer
BB
GENERAL FUND EXPENSE
BY DEPARTMENT
•Homelessness Mitigation
•Presented by Andrew Johnston, LCSW/Director of Homeless Policy and
Outreach
HOMELESS SERVICES FY23-24 BUDGET PROPOSAL
Presented by Andrew Johnston, LCSW/Director of Homeless Policy and Outreach
BB
HOMELESSNESS
INVESTMENTS
•MAYORS OFFICE
•No Requests
•CAN
•2 Requests
•FIRE DEPARTMENT
•1 Request
•JUSTICE COURT
•No Requests
•POLICE DEPARTMENT
•No Request
•PUBLIC LANDS
•No Requests
•PUBLIC SERVICES
•No Requests
STATE HOMELESS CITIES MITIGATION FUND= $3,107,201*
(not part of the base budget-will be a BA once received from state)
•HRC Police Units-12 FTE’s + equipment
•Enhanced Ambassadors cleaning
HOMELESS SERVICES FY23-24 BUDGET PROPOSAL
Presented by Andrew Johnston, LCSW/Director of Homeless Policy and Outreach
BB
Data Insights: What does the budget do?
Advantage Services Public Cleanings
(HEART-Tracked)
Single clean
Workdays to accomplish clean-Average: 2.78
Bio clean
Workdays to accomplish clean-Average: 1.49
Bloomberg Project Homelessness Dashboard
# of Unsheltered Camps
# of Unsheltered Camps cleaned
Police/ Fire Calls for Service
Mobile App Requests for Service
Mapping of data
City expenditures (by department/program)
SL County Emergency Shelters (HMIS)
https://jobs.utah.gov/homelessness/homelessdata.html
Rare: 7,231 people accessing HRC’s (6% increase in 2022)
Brief: 85 days average LOS (original goal was 20) (FY’21)
Non-Recurring: 70% people did not return 2yrs (FY’21)
Retained Permanent Housing: 96% (FY’21)
5 Yr State Homelessness Strategic Plan
https://jobs.utah.gov/homelessness/homelessnessstrategi
cplan.pdf
Homeless Housing options identified/created 574
Reduce new homelessness by 20%
Increase service interactions by 20%
Reduce subpopulations by 7%
Court
Police/ Jail
Unsheltered
Housing
Resource Centers
Treatment/ Services
Putting Context to Homelessness Expenditures
Court
Police/ Jail
Unsheltered
Housing
Resource Centers
Treatment/ Services
Homeless Court
Kayak Court
Police Dept
Fire Dept
Emergency Dispatch
Parks
Parking Enforcement
Rapid Intervention/ EIM
Homeless Engagement
Team (HEART) +
VOA Outreach
Weigand Center-Extended Hours
St. Vinny’s-Winter Overflow
Outreach-Housing Bridge Motel
Rooms
VOA Detox Beds-dedicated access
Affordable Housing
$10M FY’24
($26M FY’23)
Putting Context to Homelessness Expenditures
Court
Police/ Jail
Unsheltered
Housing
Resource Centers
Treatment/ Services
Homeless Court
Kayak Court
Police Dept
Fire Dept
Emergency Dispatch
Parks
Parking Enforcement
Rapid Intervention/ EIM
Homeless Engagement
Team (HEART) +
VOA Outreach
Weigand Center-Extended Hours
St. Vinny’s-Winter Overflow
Outreach-Housing Bridge Motel
Rooms
VOA Detox Beds-dedicated access
SL County:
-Miami Model
-Crisis Receiving Center
-Expanded Tx Options
State Office of Homeless
Services:
-$100M Housing
-Ongoing Housing Grants
-Shelter Operations $
-Additional Shelter beds
Affordable Housing
$10M FY’24
($26M FY’23)
Putting Context to Homelessness Expenditures
THANK YOU
CITY COUNCIL OF SALT LAKE CITY
451 SOUTH STATE STREET, ROOM 304
P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476
COUNCIL.SLCGOV.COM
TEL 801-535-7600 FAX 801-535-7651
COUNCIL BUDGET
STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
tinyurl.com/SLCFY24
TO:City Council Members
FROM: Jennifer Bruno, Lehua Weaver, Ben Luedtke
Allison Rowland, Sylvia Richards
Sam Owen, Kira Luke
DATE: May 9, 2023
RE: Fiscal Year (FY)2023-24 Budget Overview
Budget Book Page References: Key Changes pages 52 -93; Departmental Budgets 157-269;
Staffing Document 273-317
The FY 2024 budget proposed by the Administration reflects the projections for continued growth in the local
economy and in City population, resulting in increased use of City services, tempered with rising interest rates
and potentially slowing construction. It represents year two of a three-year budget projection analysis from the
Administration, and reflects the long-term goal of aligning necessary service-level increases with on-going
revenue sources. At the same time, it once again takes advantage of immediate one-time opportunities presented
by the American Rescue Plan Act (ARPA), and the City’s healthy rainy-day fund (a.k.a. “Fund Balance”).
Budget-setting is one of the City Council’s most important functions. The Council’s role in this process is to
review the Mayor’s recommended budget, consider broader policy goals and implications of funding strategies,
receive and consider public comment, and determine whether to make changes before adopting a final budget
later in June. In this budgeting and legislative oversight role, the Council considers the following factors, among
others:
•opportunities to address previously discussed policy goals or priorities identified by elected officials and
the public;
•the impact these budget proposals may have on residents and businesses in the City;
•the extent to which the proposed budget addresses City/Department needs and service levels;
•the impacts decisions made this year would have on budgets for future years;
•the extent to which the City’s budget furthers the overarching commitment to social equity;
•potential unintended consequences that may result from budget and policy decisions; and
•how these decisions align with the traditional role of City government to ensure an efficient use of
taxpayer dollars.
The Council will receive in-depth briefings on departments with significant proposed changes over the next few
weeks (see Attachment 1 for a schedule of department budget briefings), as well as hold two public hearings
(May 16th, and June 6th) to receive the public’s input on the Mayor’s recommended budget and any Council
proposed changes. The purpose of this staff report is to provide a general orientation to the
recommended budget as it relates to various Council priorities and potential public interest. It is
Project Timeline:
Briefing: May 9, 2023
Budget Hearings: May 16 & June 6, 2023
Potential Action: June 13,2023
Page | 2
a starting point for future discussions and to identify potential follow-up questions that can inform the Council’s
final decisions.
Note: The Mayor’s budget proposal for the Salt Lake City Redevelopment Agency (RDA) will be addressed in a
separate staff report and is scheduled for discussion during a special RDA meeting on May 16th, with follow-up
discussions as needed. The RDA Budget will also have public hearings on May 16th and June 6th, and the
Council, acting as the RDA Board, will consider adoption in conjunction with the overall City budget. The annual
budget must be adopted by June 30 per state law. The Council’s long-standing practice has been to adopt the
budget in mid-June which allows time before the new fiscal year begins to address a potential mayoral veto.
The proposed budget includes several broad policy choices that could be viewed as balancing points among
alternative policy goals. The Council may choose to focus some discussion on these policy areas, and more detail
on these choices can be found later in this report and in future budget staff reports on individual departments:
➢Revenue Increases Paid for by Residents & Businesses – The proposed budget does not include
a tax increase, but it does include several rate increases in Public Utilities, along with a new “drought
fee” for heavy water users, as well as fee increases in various categories such as housing and hotel
development, and traffic lane closure fees, that have not been updated in some time. These fee increases
will be paid by residents and businesses who use water or utilities, and developers and utility companies
that close streets for construction projects. Finally, the Parks and Open Space General Obligation Bond
approved by voters in 2022 will likely be partially issued in FY2024, and that portion of the related tax
increase will begin showing up on property tax bills.
➢Continued Structural Deficit – The proposed budget does use some one-time money to pay for on-
going needs, but it also moves the City closer to aligning ongoing revenues with ongoing needs in the
future by using fewer one-time dollars than in FY 23. In addition to using one-time revenue like ARPA
and fund balance, most of the positions proposed are funded for 10 months rather than 12 (reflecting the
likely hiring period delay). This approach will mean that balancing the budget in future years, when the
ongoing needs are still there but the one-time revenue is not, will be more challenging. This concept is
sometimes referred to as a “structural deficit.” See page 15-17 for more on the concept of a structural
deficit. The City is fortunate to have a significant fund balance and remaining ARPA grant money to use
in this way. In years where revenue and expenses are not impacted by economic downturns or other
emergency circumstances, policy makers do their best to avoid paying for on-going needs with one-time
funding. As noted above, this is the second in a three-year budget projection process undertaken by the
Administration with a goal of aligning ongoing needs with ongoing revenues.
➢Addressing Inflation – The pace of inflation in the economy is affecting the City budget on both the
revenue and expense sides of the ledger. In terms of revenues, inflation has some role to play in the
additional revenue the City will be receiving from Sales Tax, Franchise Taxes, greater interest income,
and the inflationary adjustment of all City Fees, an ordinance which adopted by the Council in 2014). On
the expense side, the City is having to adjust budgets upward to cover increased costs in fuel, contracts,
and software, capital improvements, along with employee raises, to help the workforce make ends meet
in their own budgets and maintain a competitive position in the local labor market. See page 19 for a
more detailed analysis.
➢Sales Tax Growth vs. Property Tax Growth: Historically, property tax has been the most stable
source of government funds, and sales tax has been more volatile in part because it’s more susceptible
to declines in the local economy such as during a recession. A variety of funding sources that provides a
broader revenue base is considered the most reliable way to fund governments. The City can raise
property taxes, but the ability to raise sales tax rates is curtailed by the State.
➢Employee Costs – The proposed budget includes a 5% cost of living increase for current employees
(including represented employees) and adds 60.5 fulltime equivalent or FTE employees in the general
fund compared to last year’s base budget (4 positions added mid-year through budget amendments).
The budget also adds FTEs in enterprise funds including 20 in the Airport, 16 in Public Utilities, and 8
in IMS. See page 16 for a detailed list of all new positions in the general fund. These would be considered
ongoing expenses in the context of the point above.
Page | 3
➢Maintaining a Healthy Fund Balance – The proposed budget uses approximately $26.2 million
from the existing general fund balance and $2.5 million from Funding our Future fund balance. Because
the City started with such a healthy general fund balance, this still leaves the FY 24 balance at 13.1%.
Note that current City policy calls for a 13% fund balance minimum target, and bond rating agencies
have recommended at least a minimum 10% fund balance level.
➢Funding Our Future Categories – Revenue generated from the City’s ½% sales tax called “Funding
Our Future” funds five categories, and has grown from $38.5 million in FY 22 to $50.7 million in FY 24.
The five focus areas (which are not legally binding) are housing, street infrastructure (sidewalk-to-
sidewalk), public safety (911, fire, police, and related), transit, and maintenance of public lands. The
Mayor’s proposed budget identifies every line item adjustment, in keeping with the City’s original
commitment to transparency (see attachment 5). The proposed budget funds employee costs from
previous years, additional employees in Public Lands for FY 24, as well as vehicles. The Council has not
evaluated the revenue split amounts among categories in several years.
➢Funding CIP just below 7% - The proposed budget includes a transfer to CIP of just under 7%. The
main reasons are removal of $3.7 million in one-time funds used in FY23 to replace hand held radio and
the shift of $1.8 million from Funding Our Future for parks from CIP (as it was in the FY 23 budget) to
personnel costs. The Administration indicates that ongoing funding spent on vehicles this year for those
personnel could be added to CIP again next year. Additionally, this calculation does not include the tens
of millions of dollars being deployed in the current fiscal year via the Sales Tax Bond for City facilities
(issued in 2022) or the GO Bond for Parks, a portion of which will likely be issued in the coming months.
Policy Balancing
The Proposed budget...
Uses a significant amount of one-
time money to fund on-going
needs and expansion of staffing
and programs.
The City was in the fortunate
position to have fund balance and
Federal grants to use in this
way. The City does not expect to
have remaining ARPA grant funds
available for FY2025.
This approach adds to the structural
deficit in future budget years.
Increases fees to keep up with
the costs of inflation and
providing services to a growing
City.
Previously residents and businesses
have expressed an interest in having
small increases annually, rather
than large increases every few years.
Residents and businesses are
themselves experiencing inflation,
and some may find it difficult to
afford to stay in the City.
Maintains a healthy Fund
Balance level
Using fund balance dollars helps
balance the budget without a tax
increase in the current year.
To the extent fund balance is used
for ongoing needs, this could add to
a structural deficit in future years.
Adds over 100 FTEs between
general fund and enterprise
funds
The City is fortunate to have a
healthy fund balance and sales tax
revenue to expand service provision
by adding employees.
The Council may wish to discuss
whether employees added are in the
areas of greatest need for service
provision.
Adjusts all general fund fees
commensurate with the October
2022 Western Region
Consumer Price Index (CPI) –
6.4%
Generates almost $2 million in new
revenue. Avoids property tax
increases by increasing revenue in
ways that the City has control over.
The Council could discuss changing
the ordinance given current
economic conditions, since higher
fees would add to inflation burdens
on certain businesses and residents
Reducing fee increases would
require the general taxpayers to
absorb inflationary costs in this area
or offsetting budget cuts to
expenses..
Relies more heavily on sales tax
revenue growth than in previous
years.
Preserves and enhances core City
services and functions with an
approach that is in line with
economic forecasting from the State.
Sales tax is the most volatile of the
City’s major revenues sources. This
budget increases reliance on sales
tax as the largest revenue source for
Page | 4
the general fund (37% compared to
25% from property tax). In prior
years this split was relatively even. If
sales tax drops mid-year or next
year, program and staffing
expansions could need to be re-
evaluated.
Funding our Future revenues are
projected to increase by $3.5
million from FY 23, for a total of
$50.7 million.
Consistent with the City’s
transparency goals, the
Administration has provided a line-
by-line detail of each program (see
Attachment 5).
The Council may wish to review the
distribution among the five
categories to confirm they align with
the Council’s priorities. The Council
has redefined some of the original
four priorities and added a fifth.
Funding CIP around 7% of
general fund revenue
The City’s investment via the Parks
and Open Space GO Bond, and City
Sales Tax bond, makes up for this
current year reduction in CIP
funding.
Needs in all capital asset
management categories exceed
available funding, and an annual
commitment with a five-year or
longer plan to addressing these
needs has long been a policy goal of
the Council.
Alternative Response Models Multiple City departments now
contribute to addressing mental
health and safety crises in ways that
avoid sending police officers as first
responders. The FY 24 budget
includes expansion of the
Community Health Access Team or
CHAT in the Fire department and
the Civilian Response Team in the
Police Department.
The City has not yet had enough
years of operation to determine if
there is a more efficient alignment
of these response models, and how
the SLC911 dispatch system is used.
KEY ELEMENTS
The Mayor’s recommended budget process included consultation with an internal City budget committee that
reviewed all department proposals and scored them according to a decision matrix that included the Mayor’s
priorities, the Council’s priorities, and whether the proposal was considered a “Must” “Should” “Could” or
“Would” (“MSCW”). The budget committee also evaluated why the City was performing a given service and
whether there were alternative ways to provide it. See attachment 2 for more information on the definitions
included in the decision matrix by the Budget Committee. In the Mayor’s budget presentation, she stated that
the budget was built with the following policy goals:
➢Harnessing growth
➢Leading in environmental stewardship
➢Creating inclusive, safe, and equitable communities
➢Supporting City employees
The overall FY 24 City budget of $1.8 billion represents a 19.93% increase over FY 23, largely due to planned
capital project completions in the Airport Fund. Most other funds are increasing in total amount over FY 23, due
largely to sales tax revenue increases, capital projects, fee increases, and a small amount of estimated property
tax new growth. Actual new growth amounts are typically available in early June.
Page | 5
The FY 24 General Fund budget represents a $19 million (4.5%) increase from FY 23, growing from $426
million to $444.5 million. Approximately $30.5 million (6.9%) is one-time revenue, and just under $800,000 is
salary restoration revenue from ARPA grants. Even though more funding from the general fund balance is used,
there is an overall decrease in the use of one-time funding relative to FY 23. This year represents the fifth year
that sales tax revenues exceed property tax revenues as a proportion of the City budget (driven in large part by
the ½% Funding Our Future sales tax). It’s important to note that sales tax is the most volatile of the City’s
major revenue streams and the General Fund budget is more reliant upon sales tax than in prior years.
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
FY 2006
FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016*
FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
FY 2022
FY 2023
FY 2024 Proposed
General Fund Revenue % Change from Previous Year
Page | 6
*FY 2016 – state law changed to require RDA revenue “pass through” the general fund and therefore was not an increase
in new revenue for General Fund purposes.
**FY 2022, FY 2023, and to a lesser extent the FY 2024 budgets include use of Federal Grants (CARES Act and ARPA) that
are finite in amount and are likely unavailable in future years.
Note on budget terminology: This proposed budget is sometimes referred to as the Fiscal Year (FY) 2024
budget, meaning the 12 month budget that ends on June 30, 2024. The budget that we are in as of the date of
this staff report is the FY 2023 budget, meaning the budget that started July 1, 2022 and ends on June 30,
2023.
The following chart depicts the sources of general fund revenue in the FY 24 recommended budget:
The following chart depicts how expenses are divided among City departments for the FY 2024 Mayor’s
Recommended Budget:
Property Taxes
25%
Payment in Lieu of
Taxes
0%
Sales and Use Taxes
37%
Franchse Taxes
3%
Intergovernmental
1%
Charges for services
1%
Interfund transfers in
6%
Other Revenue
16%
Use of Fund
Balance
7%
RDA Pass through
4%
Page | 7
The following are highlights of the Mayor’s recommended budget (not inclusive of every change):
•Revenue Changes due to economic conditions
o Sales tax revenue is proposed to increase by about $17 million with Funding Our Future
representing about $4.7 million of this increase). By comparison the FY 23 budget forecasted a
$24 million sales tax budget increase. This represents about a 11% increase year over year from
the adopted FY 23 budget. While this is continued aggressive growth, the Administration is
basing the forecast on recent actual receipts, and they closely monitor economic data and actual
sales tax receipts. Note: Sales tax receipts reflect a two-month delay from actual spending. For
example, sales tax revenue received in April represents spending that occurred the previous
February. Historically, while this line item has represented the largest year-over-year share of
Economic
Development
1%
HR
1%Mayor
2%
Council
1%
Justice Court
1%Attorney
2%
Finance
3%911 Communication
Bureau
2%
Public Lands
6%
Community and
Neighborhoods
7%
Public Services
10%
Fire
12%
Police
25%
Non-Departmental
27%
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
Economic
Develop
ment
HR Mayor Council Justice
Court
Attorney Finance 911
Communi
cation
Bureau
Public
Lands
Communi
ty and
Neighbor
hoods
Public
Services
Fire Police Non-
Departm
ental
FY 2021 $2,388,56 $2,629,00 $3,883,06 $4,226,07 $4,726,86 $7,123,63 $8,387,67 $8,260,57 $-$24,318,5 $46,655,2 $42,737,5 $79,097,3 $91,695,8
FY 2022 $2,714,91 $3,267,66 $4,761,78 $4,551,15 $4,850,90 $8,029,30 $8,767,75 $9,016,38 $18,751,8 $24,003,8 $34,341,9 $45,587,4 $83,370,5 $115,566,
FY 2023 $3,695,92 $4,236,83 $6,625,45 $5,387,70 $5,199,60 $9,007,63 $10,709,8 $10,872,1 $24,241,7 $29,311,1 $39,398,4 $48,586,4 $103,977,$124,299,
FY 2024 Proposed $4,035,09 $4,659,30 $6,820,06 $5,960,24 $5,489,72 $10,150,8 $12,168,2 $11,259,7 $27,162,2 $32,039,9 $43,105,4 $52,264,3 $110,976,$118,412,
4 Year Department Budget Comparison
Page | 8
growth, it has also been the most volatile line item in the City budget, and in the recession of
2009 the City saw significant budget shortfalls.
o The Administration is also proposing to recognize $2,140,028 in new growth property tax
revenue, which is $102,092 more than was received in FY 23. The Administration estimates
new growth based on building permits and certificates of occupancy, but in FY 2022 the final
number received by the Tax Commission did not comport with that data falling short by nearly
$2 million, with only $364,464 received that year. Staff cannot confirm the Administration’s
projected figure with the Tax Commission until early June (per state law it’s due by June 8), and
it cannot appeal the final figures from the State.
•If the final property tax figure is lower than what is in the Mayor’s recommended
budget, the Council would either need to re-balance the budget with the lower number
(cutting expenses) or increase other revenue sources, such as property taxes, to meet
the proposed expenses.
•If the final property tax figure is higher than what is in the Mayor’s recommended
budget, the Council could add expenditures to the budget or adjust one of the other line
items (like decreasing the amount of one-time dollars used from fund balance for
example).
•Staff note: Actual new growth since FY 2010 has varied from negative $90,000 in FY
2014 to a high of $3 million in FY 2020. The new growth formula changed in the 2016
Legislative session, and as such new growth has been easier to predict, with the
notable exception of FY 2022. (See chart on page 21 for a history of actual new growth
revenue received)
•Recognizing this new growth revenue in the budget does not constitute a property tax
increase, because it is paid by new buildings, and therefore does not require a Truth in
Taxation hearing per State law.
o Building permit revenue is projected to decrease by $4 million from FY 23. This is a
conservative projection to account for the toll inflation may take on the pace of construction in
the City. Although modest relative to the total General Fund budget size, the downward trend of
building permit revenue was first noted mid-year FY 23. This revenue source has historically
been more volatile like sales tax revenue than others.
o Licenses revenue is projected to increase by $1.9 million, largely due to the Airport parking
fee and the transient room tax, as both the travel and hospitality sectors are rebounding from
the pandemic.
o Fines and forfeitures are projected to increase by $298,374 due to rebounding Justice Court
operations. Parking meter collections are projected to decrease by approximately $41,386. (Staff
note: this line item is still not at pre-pandemic levels).
o Interest income is projected to increase by $5.9 million (compared to $800,000 in FY 23)
due to rising interest rates set at the federal level and in the market. This is revenue that is
generated from the City investing cash balances.
o Franchise taxes are expected to increase by $690,999, reversing a multi-year trend of
decreases. This is due to a renegotiated contract with Google Fiber, and rate increases in almost
all utilities. The total $12.3 million of revenue from franchise taxes in FY24 is still less than half
the $28+ million generated in FY18. Items contributing to this budget are taxes collected on
utilities, phone lines and gas bills. These taxes are capped by State law.
•Revenue from Policy Choices and New Proposals
o Fee Increases – The Administration is proposing updating a number of fees that have not been
updated in several years (most have not been updated since 2010), in addition to the regular CPI
adjustment to City fees (see next bullet). These have all been checked for cost-justification by
the Administration meaning the fee amount will help recoup the City’s costs of providing the
service and not more than that. If the Council is not interested in instituting these fee increases
the Consolidated Fee Schedule can be changed prior to budget adoption, and- the Council would
Page | 9
need to re-balance the budget based on any modifications to the revenue figures below (totaling
$2.5 million). The proposed fee increases are as follows:
Fee Proposed Increase FY 24 Revenue Generated
Business license fee for Residential Rental
Units
$20 to $35 per unit $ 738,315
Business license fee for Hotel/Motel Units $6 to $10 per unit $ 49,912
Meter Bagging fee $28 to $50 per day $ 207,000
Lane Closure Fee $98 to $350 per week
($14 to $50 per day)
$ 1,494,000
Total $ 2,489,227
o City General Fund fees will bring in an additional $2 million due to an inflationary
Consumer Price Index (CPI) adjustment in all fees charged by the City (set by the Council in
ordinance in 2014). For FY 2024 the Administration referenced the western U.S. region CPI
used (set in October 2022) is 6.3%. For reference, in FY 23, the adjustment was 4.6% and in
FY22 the amount was 2.35%. The Council could request a more recent inflation figure (April
rather than October) as was done in the previous budget year. These fees and permits will
always have to be cost-justified, and the City undergoes a study regularly to confirm that the
City is not charging more in fees than it costs to provide the associated service. Adjusting these
fees yearly allows the City to keep pace with the cost of doing business in small amounts each
year, rather than one-time considerations of larger fee increases. The Council could consider
changing this ordinance given the unique economic circumstances for businesses and
individuals at this time, as these fees are paid by businesses.
o One-time Revenue
•Federal American Rescue Plan Act (ARPA) – Most of the eligible “Revenue Loss
Replacement” funds have been expended from ARPA dollars. The remaining allowable
use of ARPA dollars is for “salary restoration”, which is proposed to be $792,195 in FY
24. For context, the FY 23 budget included almost $20 million in APRA dollar “revenue
replacement” that was not available for the FY 24 budget. See chart on page 20 for a
detailed accounting of usage of ARPA dollars since FY 2022.
•Use of General Fund Balance - The Mayor’s recommended budget includes using
$30.5 million from fund balance (including $2.5 million from Funding our Future fund
balance) to balance the budget. This is more than the $23 million used from fund
balance in FY 23, but when considered in context with ARPA dollars, there are fewer
“one time” dollars used in FY 24 than in FY 23. If adopted as proposed, the budget
would still leave the City with just over a 13.6% fund balance (approximately $2.7
million above the desired 13% threshold).
o Judgement Levy – The FY 24 budget includes a judgement levy of $609,467. A judgement
levy is a one-time, one-year property tax increase to pay the City back for prior year judgements
which result in budget shortfalls. The City will not know the final amount of the judgment levy
until June 8, when we receive official figures from the State Tax Commission and County
Auditor. At that point the Council can decide whether to add it to the budget. The amount
cannot exceed the amount authorized by the County.
•Other budget highlights relating to Council priorities – The Council sent the following
priorities to the Administration for the City’s budget committee to consider: Equity; Optimize
alternative response models; Homelessness; Maintenance of public spaces; Transit and transportation;
Streamlining land use and development; Affordable housing; Business support/economic development;
Stability of current programs; Efficiency. The following is a snapshot of NEW or CHANGED items in the
Page | 10
Mayor’s recommended budget in the various areas that touch on one or more of the Council’s priorities
(this does not include continuation of programs started in previous years, and is not comprehensive:
o Equity and Diversified Public Safety Response – The Mayor’s recommended budget
expands some of the initiatives to fulfill the Mayor and Council’s priorities of Equity including
Diversified Public Safety Response, and carries forward a $1.7 million holding account that had
been set aside for implementing the Council’s operational audit of the Police Department and
Commission on Racial Equity in Policing’s recommendations:
Mayor’s Office Stipends for Boards and Commissions - $29,420 increase to bring
funding to a full year (approximately $150,000 total - $40 per
meeting)
Love your Block program – 2 FTEs - $$160,667
Know your Neighbor program – 1 FTE - $92,000
Community and
Neighborhoods
Shifting Youth and Family FTEs from grant funding to general fund –
4 FTEs - $447,136
Fire CHAT Team expansion - 4 FTE social workers - $316,000
Fire Medical Captain – 1 FTE (6 months) - $72,252
Expansion of Medical Response Team or MRT at the Airport – 5
FTEs - $764,666
Human Resources Project and Policy Manager for Diversity Equity and Inclusion -
$121,588
Police Civilian Response Team – 4 additional FTEs – $202,999
License Plate Reader Program - $150,000
Sergeant Internal Affairs – 1 FTE - $143,186
Public Services 4 FTEs Trades Apprenticeship Program - $332,000 (shifted from
non-dept)
Safety and Security Manager - 1 FTE - $152,565
Non-Departmental Apprenticeship Program (see note below)
Wasatch Community Gardens Apprentice Gardner - $50k
Continued Body Cameras and Vehicle integration
Fleet vehicles to support diversified response (MRT, Civilian
Response Team, etc)
Rose Park Golf Course Infrastructure renewal - $500,000
Suazo Business Center Membership
❖Policy Question on Diversified response – Does the Administration need any
additional capacity in the 911/Dispatch to be able to direct calls to the various response
teams relating to crime, homelessness, mental health crises, and community
cleanliness? Staff has listed the various response teams below:
•Fire Department – Community Health Access Team (CHAT), Medical Response
Team (MRT)
•Police Department – Social Worker Co-Responders, Civilian Response Team
•CAN – Homeless Engagement and Response Team (HEART), Downtown Street
Ambassadors (expanded to North Temple, parts of Central City, and the
Ballpark neighborhoods), Code Enforcement
•Public Lands – Park Rangers Program
•Public Services – Community Cleaning Program (CCP) Rapid Intervention
Team
❖Apprenticeship program – Some Council Members have expressed an interest in
expanding the City’s current program, as well as potentially requiring every City
contractor must run an apprenticeship (or similar in purpose) program. As noted above,
the recommended budget proposes to shift $395,000 from the $1 million account in
non-departmental (first added to the budget in FY 23) to Public Services – for 4 FTEs
Page | 11
specifically for trades (plumbing, electrical, etc), as well as shifting $50k to provide an
apprentice gardener for Wasatch Community Gardens.
o Homelessness (some overlap with other categories) -- The Mayor’s proposed
budget continues the consolidation of homeless services expenses (except tangentially-related
public safety responses mentioned above, parks maintenance, and RDA affordable housing
development) into the CAN Department, managed by a coordinator and program manager.
This can be discussed in more detail during the CAN budget discussions or any of the below
department discussions. The following are additional elements in the proposed budget that
could be seen as directly or tangentially related to this issue:
Attorney’s Office Assistant Prosecutor FTE to assist with implementing the “Miami Model” of
diverting homeless people from the criminal justice system – 1 FTE - $99,509
Community and
Neighborhoods
Lease/Utilities for Community Connections Center or CCC for the Social
Worker Program, North Temple and Downtown Central Precinct Police
Substations
Continued funding for expanded Downtown Ambassadors program -
$96,000
Increase Advantage Services Contract to reflect continued higher service level
which was previously paid for with one-time funds - $598,000
Public Lands 11.5 Park Maintenance FTEs
•Transit/Transportation - Both the FY 2019 and FY 2020 budgets made significant progress
towards implementing the City’s transit master plan. New sales tax funding enabled a 20-year
interlocal agreement with UTA to provide enhanced bus services, specifically adding more
frequent service and extended hours on key transit master plan routes. Previously City funding
was not available to enable increased/enhanced access to transit, other than the Hive Pass
program. The Council will have a more in-depth discussion of this initiative during the
Community and Neighborhood Department briefing. The following are additional elements in the
proposed budget that could be seen as directly or tangentially related to this issue:
Public Services Street Mill Overlay Pilot Program (extends street life; provides a new
pavement treatment option which is beyond just filling potholes but less than
a full street overlay) - $130,000 (equipment in CIP)
Non-Departmental HIVE Passes for School Children - $100,000
FOF - Service for Key Routes (UTA Contract) - $400,000 increase ($7m
total)
FOF - On Demand Ride Service - $1.1m increase ($3m total)
FOF - UTA Outreach - $100,000
CIP A number of CIP allocations relate to neighborhood traffic calming and trail
improvements. See list below.
Equipment for Street Mill Overlay Pilot Program
RDA $50,000 towards City-Creek daylighting project
❖HIVE Pass – Some Council Members have expressed an interest in expanding the HIVE
pass program for school children to their parents or guardians. Funding for stand-alone
adult HIVE passes is proposed to be decreased, as usage has not been what was
originally projected. Tying adult HIVE passes to school children could increase usage of
the program.
❖On-Demand Ride Service – while the funding is proposed to increase by $1.1 million the
budget book notes that the service area is smaller. Staff is confirming the boundaries of
the reduced service area.
$9,874,000 for Transit, Transportation, and Road Safety across Eight CIP Projects:
Page | 12
▪$3,293,000 for complete streets focused on upcoming reconstruction projects on 2100
South through the Sugar House Business District and Virginia Street while remaining
funds will be available citywide
▪$1.7 million for urban trails focused on a new trail to the development tiny home village
off of Redwood Road and efforts to complete the 9-Line Trail
▪$1.35 million for the second year of the Livable Streets Program
▪$1.1 million for bus stop improvements and transit hubs supporting the frequent east-
west bus routes the City pays UTA to operate
▪$900,000 for safer crossings focused on 10 Main Street locations (from 900 South to
2100 South) and the new Glendale Regional Park while remaining funds will be
available citywide
▪$800,000 for construction of the Jordan Meadows neighborhood byway and design of
another byway from Sugar House to the University of Utah
▪$497,000 for construction of a traffic circle in the Fairpark at 1000 West and 500 North
▪$234,000 for 200 East ADA and sidewalk improvements between 1700 South and 2100
South
o Maintenance/Activation of Public Places (overlap with other categories) -
The Mayor’s proposed budget includes several items that continue the City’s goal to activate and
maintain City Public Spaces. This is in addition to the historic investment in public lands that
will be made in the coming years as the result of the recently approved Parks and Open Space
General Obligation Bond. The following list are some of the items in the FY 24 budget related to
this issue:
o
Community and
Neighborhoods
Lease/Utilities for CCC, North Temple and Downtown Police Substations
Funding for expanded Downtown Ambassadors program - $96,000
Increase Advantage Services Contract to reflect higher service level -
$598,000
Public Lands 11.5 Park Maintenance FTEs
1 City Events FTE - $85,000
Additional City Events, including drone shows for the 4th and 24th of July
(and related program costs) - $136,500
CIP A number of CIP allocations relate to trail and open space improvements (see
list below)
$9,925,000 for Maintenance of Public Places across Eight CIP Projects:
▪$4.5 million for street reconstruction projects including complete streets elements (no
longer funded separately)
▪$1.7 million for city buildings asset renewal plan
▪$1.25 million for street overlays including complete streets elements (no longer funded
separately)
▪$750,000 for public way concrete repairs, replacements, and missing sidewalks
▪$750,000 for mill and overlay maintenance pilot program (this is a pavement treatment
less than a full street overlay but more intensive than pothole filling or crack sealing)
▪$400,000 for a 75 year old traffic signal replacement
▪$325,000 for historic restorations, replacements and conservation work at the
International Peace Gardens
▪$250,000 for alleyway improvements
Note there is also ongoing maintenance funding in CIP separate from the competitive
process for:
▪$700,000 to the Real Estate Services Office in CAN for maintenance of vacant
city owned buildings and properties
▪$350,000 to the Facilities Division for city owned building maintenance
▪$250,000 to the Public Lands Department for park maintenance
Page | 13
▪$200,000 to the Public Lands Department for trail maintenance
o Land Use, Development, Affordable Housing, Housing Stability - The
recommended budget includes a number of items relating to land use streamlining,
development, and affordable housing – both in the City General Fund and RDA budgets. The
following are additional elements in the proposed budget that could be seen as directly or
tangentially related to this issue:
o
Community and
Neighborhoods
Civil Enforcement Positions – 2 FTEs (based on Council Member
legislative intent relating to ADU enforcement)
15-minute City Planning Contract - $100,000
Thriving in Place Tenant Resource Center and Relocation Assistance
Program (Placeholder) - $272,000
Redevelopment Agency Primary Housing Fund for Shared Equity Housing and Loans - $2.4
million
Westside Community Initiative - $1.8 million
Housing Development Fund - $4.5 million ($2.6 million from FOF)
Housing Stability (CAN) –
Repurposing Accounts from
repaid loans originally from
HUD Grant Programs
$12m - While not included in the FY 24 proposed budget, the
Administration will transmit a proposal to repurpose funds that have
been repaid to programs originally created with HUD Grants, into
affordable housing related activities (that comply with the original
HUD Grant guidelines). More information on this proposal is
forthcoming.
❖ADU Construction Incentives - While the Administration’s budget includes 2 FTEs
for enforcement relating to ADUs, as was suggested by the Council’s legislative intent,
there is no fund (beyond the RDA funding in the 9line project area) to incentivize
construction of new ADUs city-wide. The Council may wish to raise this idea as a
potential added item either during the CAN or RDA budget discussions, and/or during
unresolved issues.
❖Other Affordable Housing Ideas - Several Council Members have expressed an
interest in funding specific housing-related programs ranging from low interest loans
for improvements to naturally occurring affordable housing, to investment in projects
as part of the Westside Community Initiative that could further the City’s goals for
equity-sharing. The Council may wish to discuss these further either during the
Community and Neighborhoods or RDA budget briefings.
❖Thriving in Place placeholder – The final version of the City’s anti-gentrification
plan “Thriving in Place” has not yet been transmitted to the Council. The above-
referenced Tenant Resource Center and relocation assistance are elements of the
plan. The Administration’s intent is for this funding line item to be a placeholder
until the Council has an opportunity to review and approve the Thriving in Place
Plan.
o Business Support (some overlap with other categories) – Council Members have
expressed an interest in supporting budget requests that help businesses in the City thrive. The
following are some elements of the FY 24 budget that further this goal (this list is not inclusive
of all elements of the budget that help businesses):
o
Economic Development Continued Construction Mitigation Funding - $200,000
Economic Development Strategic Plan - $80,000
Health Care Innovation Youth Summit - $20,000
Public Services Street Mill Overlay Pilot Program (extends street life beyond just
filling potholes) - $130,000 (equipment in CIP)
Non-Departmental Healthcare Innovation – Biohive - $100,000
Local Business Marketing Grants - $20,000
Page | 14
Various local organization memberships – ULCT, Chamber of
Commerce, Suazo Membership, EDCU, World Trade Center
RDA Depot District Infrastructure - $3.7 million
Commercial Assistance Program (in various project areas)
o Capital Improvement Program (CIP) – The proposed budget funds CIP at around 7% of
ongoing General Fund revenues or $24 million (this does not include projects from the recently
issued Sales Tax or GO Bonds). Previous plans identified 7% as a recommended minimum level
of investment and a goal of 9%. The City did reach the 9% funding level in FY 23, although
several departments have noted difficulty with getting projects constructed due to staffing
constraints and construction inflation. See attachments 3 and 4 for a full list of CIP projects
and applications for FY 24, along with the CDCIP Board and Mayor recommendation.
•Annual CIP Process Summary: Each year, the Council appropriates the overall
funding available for the Capital Improvement Program (CIP) and approves debt
payments as part of the annual budget in June. Over the summer, the Council reviews
individual projects and per state law must approve project specific funding by
September 1. CIP is an open and competitive process where residents, local
organizations and City departments submit project applications. The Community
Development and Capital Improvement Program (CDCIP) resident advisory board
reviews the applications in public meetings and makes funding recommendations to the
Mayor and Council. The Mayor provides a second set of funding recommendations to
the Council which ultimately decides project specific funding.
•Background on Infrastructure - Infrastructure in the City is funded several ways:
▪CIP (enhanced by Funding our Future in FY 20)– funds a variety of ongoing
infrastructure projects including sidewalks, ADA ramps, bridges, curb/gutter,
facilities and buildings, park amenities and usually local/residential
neighborhood streets. These are either funded through annual allocations on a
pay as you go basis, or larger projects are sometimes financed with debt service
(future revenue bonds such as sales tax).
▪County Quarter Cent Sales Tax for Transportation Funds (Fund Class
69 – new in FY 20) – The Administration will be tracking both the receipt and
expenditure of these funds in a separate account to make reporting to the state
more streamlined (these funds are restricted as to use).
▪Class C (gas tax) funds in CIP – this usually funds larger scale projects and
is typically allocated in a large quantity. In recent year, the Council
appropriated these funds as a batch for street reconstruction and asphalt
overlays. The internal Roadway Selection Committee determines which specific
street segments receive improvements based on several criteria and other major
projects.
▪Streets Division Budget located in the Public Services Department –
this usually funds the more small-scale, maintenance activities such as pothole
patching and chip seal-type projects. The City currently has an asphalt street
maintenance program. The vast majority of City streets are asphalt pavement.
▪Impact Fees – Pay for bigger demand on City facilities caused by population
and employment growth. More specifically, impact fees are a payment of money
imposed upon a new development activity as a condition of development
approval to mitigate the impact of the new development on public
infrastructure and services. There are four types of impact fees charged by the
General Fund which are limited to eligible uses identified in the City’s Impact
Fees Plan. The four types are: fire, parks, police and transportation.
▪Infrastructure is also addressed indirectly through staff in Engineering,
Transportation (Community and Neighborhoods Department), and Streets
Page | 15
(Public Services) general fund budgets, and Public Utilities Budget (sewer,
stormwater and water).
o Overall Fiscal Health of the City – In FY 20 the Council established a goal of setting Fund
Balance at 13%. The Mayor’s recommended budget uses $30 million from fund balance to
balance the budget but maintains a fund balance of 13.1% ($2.7m over the 13% recommended
threshold). This is a downward trajectory from the last two fiscal years where fund balance has
regularly exceeded 20%. In those years fund balance grew significantly in large part due to sales
tax overperforming the City’s conservative budgeted amount, which took into account continued
worldwide economic uncertainty. As noted above, this budget uses one-time funds to pay for on-
going expenses and utilizes one-time savings to balance the budget. Both of these strategies will
increase the “structural deficit” for the next budget year.
o New FTEs and Potential Future Structural Deficit –The Mayor’s recommended budget
includes 61.5 new general funded FTEs, 4 of which were approved during budget amendments
over the past fiscal year. Because the budget is balanced with a significant amount of one-time
dollars, this ongoing expense could add to the structural deficit in the future. Several of the new
FTEs are proposed to be funded for a period of less than 12 months. The total amount
budgeted for FY 24 is $5.5 million, and the total annualized cost is $6.3 million (a
difference of $814,642). This can be an effective budgeting tool to help balance the budget,
since realistically it takes several months to hire an employee through the City’s HR process.
That said, it does add to the potential structural deficit for the following budget year, once that
FTE is filled. The following chart lists staffing levels by department currently and as proposed,
along with basic descriptions of the new positions added. More detail on each position will be
available during each department discussion over the coming weeks. Staff note: Council Staff is
working with the Administration to verify exact figures, as some documentation in the budget
book differs from the chart below.
Page | 16
FY 2024 Proposed FTE Changes by General Fund Department
Department
Adopted FY
2023
Positions
Budget
Amendment
Positions
New
Positions
Total
(note: Total does
not reflect grant
positions, as they
are refected in
the grant fund)Change New Position Notes/Other Notes
Attorney 58.50 0.00 2 60.50 2 New - Special Project Analysis & Automation (10 mths)
New - Assistant Prosecutor for Miami Model
Implementation (Grade 34) (10 Mths)
Community and
Neighborhoods
190 -2 7 195 5 BA #3: Transferring Consumer Protection Analyst from
Mayor's Office to Housing Stability)
BA #4: Transferring CIP and Impact Fees Positions to
Finance
Duplicate Position Eliminated per HR
New - Transfer 4 FTEs Youth and Community Programs
from Grant to General Fund for 1 year
New - 2 FTEs Civil Enforcement Positions (10 Mths)
New - Business Systems Analyst II (10 Mths)
Council 35 0 0 35 0
Economic Development 22 0 0 22 0
Finance 76.7 4 1 81.7 5 BA #4: 2 FTEs Contract Development Specialists
BA #4: 2 FTEs Transferring CIP and Impact Fees Positions
to Finance
New - Financial Analyst II for Salt Lake Foundation ( 10
Mths)
911 Communications Bureau 100 0 0 100 0 New - 8 Dispatchers to implement pilot program (6
months funding from Funding our Future)
Fire 392 0 10 402 10 New - 4 FTE social workers for (CHAT) Community
Health Access Team (FOF Funding)
Fire Captain - Medical Division (6-month Funding) (FOF
Funding)
Offset with Airport Revenue - 5 FTEs for Airport MRT
Human Resources 31.4 0 2 33.4 2 New - 1 FTE - Project & Policy Manager (10 Mths)
New - 1 FTE - Business Partner I (10 Mths)
Justice Court 42 0 0 42 0
Mayor 32 -1 3 34 2 BA #3 - Transfer Consumer protection FTE to Housing
Stability
New - Love Your Block Program (10 Months) - 2 FTEs
New - Know Your Neighbor (10 Months) - 1 FTE
Police 750 0 11 761 11 New - 1 FTE Sergeant Internal Affairs Program (9 Mths)
New - 4 FTE Civilian Responders (Grade 20) (9 Mths) -
(FOF Funding)
Offset with Airport Revenue - 6 FTEs - Airport
Operations Program - (9 Mths)
Public Lands 143.35 2 12.5 157.85 BA #4: 2 Public Lands Planner Positions (offset with
Bonds when they are issued)
New - 1 FTE to facilitate Expanded Citywide Events
New - 11.5 new FTEs from FOF for Parks Maintenance:
1 FTE - Parks Maintenance Tech II (10 Mths)
1 FTE - Sr Natural Resource Technician (10 Mths)
1 FTE - Maint. Electrician IV (Grade 22) (10 Mths)
1 FTE - General Maint. Worker IV (Grade 21) (10 Mths)
1 FTE - Sprinkler Irrigation Tech III (Grade 20) (10 Mths)
1 FTE - Central Control Irrigation SPE (Grade 20) (10
Mths)
.5 FTE - Sr Warehouse Operator (Grade 15) (10 Mths)
4 FTE - Sr Natural Resource Technician (Grade 16) (10
Mths)
Public Services
(note: Sustainability FTEs are
reflected in Refuse Fund not in
general fund staffing document)
261.00 1 9 271.00 10 BA #4: Sr. Project Manager
New - 1 FTE - Converting part-time Office Tech to FTE -
Streets
New - Safety and Security Manager (Grade 37) (10
mths)
New - Environmental Engineer - (Grade 33) (10 Mths)
New - Building Administrator (10 Mths)
New - 4 FTEs - Trades Apprenticeship Program (10
Mths)
Total 2,133.95 4.00 57.50 2,195.45 61.50
Proposed FY 2024
Page | 17
•“Structural Deficit” context: There is a certain share of structural deficit that occurs
regardless of the Council’s policy choices each year. This includes things like health
insurance premium increases, union-agreed pay adjustments, use of one-time revenues
used in the previous year, etc. Given the use of fund balance and Federal grants to balance
the budget this year and previous years, as well as the one-time savings noted above, the
structural deficit for the FY 25 budget could be larger than in previous years, although this
will be mitigated to some extent by the three-year budget projection exercise undertaken by
this administration, as well as over-performing sales tax revenues. This annual conversation
causes the Administration, through their department experts, to look for creative
efficiencies in expenditures that they might not have otherwise been willing to explore. The
Administration, with their front-line employees, are best equipped to identify opportunities
for efficiency gains. If all efficiencies have been exhausted, the “fallback” options to address
the structural deficit are service/program cuts or additional tax increases because per State
law the City must adopt a balance budget annually.
ADDITIONAL KEY ELEMENTS OF THE MAYOR’S BUDGET PROPOSAL
A. Legislative Intents of the Council – The Administration has included all FY 2023 Legislative Intent
Statements and Interim Study Items adopted by the Council in the Mayor’s Recommended Budget Book,
starting on page 124, along with relevant department responses if available. The Council held a high-level
review of these at the April 11 work session. Staff will make a note of relevant items throughout the
department budget briefings and hold a legislative intent briefing later in the budget process to confirm the
list for the coming fiscal year.
B. Funding our Future - In 2015 the Legislature authorized the City to impose a 0.5% additional local sales
tax option as a result of the decision to relocate the State prison. The Council initiated this option, and while
the State enabling legislation did not restrict what the City could do with these funds, the Council and
Administration determined four critical need areas of focus for the funds based on resident engagement and
feedback: housing, public safety (including 911, fire, police, and more), transportation, and street
infrastructure (sidewalk-to-sidewalk). In FY 23, when the amount was anticipated to increase significantly,
the City added a fifth category need, Public Lands Maintenance.
•The FY 24 budget is projecting $50.7 million in total revenue for funding our future, a $3.5
million (7.3%) increase from FY 23.
•The Administration’s proposed budget tracks the revenues and expenses separately to increase
transparency for the public as to how these funds are used. The public can also visit
fundingourfutureslc.com for details on the programs and projects funded from these dollars and
the voter-approved $87 million Streets Reconstruction Bond.
•The proposed budget includes several policy shifts for Funding our Future dollars that the Council
may wish to discuss further, in particular how to communicate these shifts to the public, whether
they should be considered temporary, and how they will be tracked.
•In FY 23, based on previous policy input from the Council about broadening the definition of
“Public Safety” beyond police, the City expanded uses such as Fire, mental health responders,
dispatchers, and emergency management personnel.
•The chart below shows Funding our Future expenditures by department since 2022. See
Attachment 5 for a detailed list of specific Funding Our Future initiatives, by department.
•Staff will highlight this revenue tool in each of the relevant departments.
Page | 18
C. Other Expense-Related Items of Note – Staff will be highlighting important expense changes in each
department briefing. The following is a list of some noteworthy Citywide items that may be of interest to the
Council and/or the general public:
1.Department Overviews and Objectives and Measurements – The Mayor’s Recommended
Budget Book includes a helpful 2-3 page overview of each department starting on page 157 of the
Mayor’s Recommended Budget Book. Each department section includes objectives and
measurements where available and tracked by the department. In addition, these department
overview pages include the following information:
•Org chart of the department
•Vision statement/mission statement and overview of the purpose and functions of the
department
•Performance measures where tracked
•Comparison of actual/adopted/proposed budget by category or division
•High level description of changes from last year
Council Staff will highlight each of these as departments are briefed before the Council (see
Attachment 1 for schedule of briefings). The Council may wish to provide feedback to the
Administration at that time, regarding any additional helpful measurements/outcomes that would
help the Council in their budget deliberations.
2.Inflation – The FY 24 budget includes a number of line items in various departments to address
the costs of inflation – fuel, contracts, software, purchasing, etc. – totaling almost $3 million across
general fund departments. The Administration has provided the following breakdown by
department and category:
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Community
and
Neighborhoo
ds
Fire Police Public Lands Public Service 911 Non-
Departmenta
l (includes
public safety,
housing,
transit,
IMS/Fleet
support)
FY 2022 $3,046,398 $236,448 $8,749,563 $-$2,675,831 $281,325 $23,532,019
FY 2023 $3,371,453 $869,540 $12,207,968 $687,424 $3,482,579 $792,384 $25,803,749
FY 2024 $4,210,689 $1,400,953 $13,016,903 $1,848,671 $3,539,718 $846,846 $25,803,749
Funding our Future by Department
FY 2022 FY 2023 FY 2024
Page | 19
3.Election Expenses – The Mayor’s recommended budget includes several items relating to the
2023 municipal election.
•$244,551 – Contract with the County (final cost could be lower depending on how many
other cities in Salt Lake County choose ranked choice voting)
•$40,000 – Ranked choice voting awareness
•$20,000 – Placeholder - outgoing elected official event (December 2024)
•$30,000 – Oath of Office event (January 2024)
4.American Rescue Plan Act (ARPA) Funding- The Mayor’s recommended budget includes
continued expenditure of the federal grant dollars awarded to the City under the American Rescue
Plan Act. The Administration has provided the chart below detailing how these funds have been
budgeted and how much is anticipated to be remaining. All the funds must be spent by December
31, 2024.
FY 24 Inflationary Costs
Department Personnel Fuel/Fleet Water
Natural
Gas Power
Other
Utilities Contractual Consulting Equipment Other
Operating
Expenses/Costs Transfers Projects TOTAL
Mayor 79,630 35,000 114,630
Attorney 200,000 33,324 233,324
CAN 598,000 598,000
City Council -
Economic Development -
Finance 84,200 84,200
Fire 30,000 48,000 138,000 58,765 274,765
HR 10,172 10,172
Justice Courts 42,355 42,355
Police 26,981 10,405 51,803 11,211 187,083 15,508 302,991
Public Lands 38,700 406,000 31,600 14,200 54,300 104,700 649,500
Public Services 9,600 120,290 39,800 153,700 288,300 31,000 102,000 33,600 233,200 93,500 1,104,990
Dispatch -
Total General Fund 251,955 215,971 445,800 233,300 288,300 55,605 923,127 44,811 474,583 352,103 129,372 --3,414,927
IMS 1,482,665 1,133,509 270,000 370,000 1,090,733 2,050,000 6,396,907
FY2021 FY2022 FY2023 FY2023 BA#6 FY2024 TOTAL
Taking Care of the City:
Revenue Loss (Based on Calendar Year Calculations)11,432,646$ 11,432,646$ 19,890,111$ 18,603,080$ 49,925,837$
Salary: Bonus 1,193,000$ 1,193,000$ 1,193,000$
Salary: Police Retention and Recruitment 8,507,318$ 8,507,009$ 4,300,000$ (73,560)$ 12,733,449$
Council Adopted ARP Allocation -$
- Special Projects A ssis tant for Community Commitment Program (CAN)93,829$ 28,529$ 28,529$
- Youth & Family Community and Program Manager (from BA#2) (CAN)90,633$ 88,391$ 88,391$
- Youth & Family COVID Programming Continuation (CAN)711,350$ 70,148$ 70,148$
- Economic Development Strategic Plan (Economic Development)50,000$ -$
- Economic Development Staff (Economic Development)290,000$ 70,471$ 211,000$ 110,775$ 392,246$
-* Grant A dministrator (Finance)95,000$ 40,616$ 95,000$ 99,750$ 235,366$
- Grant Manager (Finance)101,200$
- Apprenticeship Program (All Departments )1,000,000$ 200,880$ 200,880$
- MRT Expansion [6 Months ] (Fire)136,762$ 136,762$ 136,762$
- MRT Expansion [One-Time $46,700] (Fire)46,700$ 46,700$ 46,700$
Water and Sewer Infrastructure 2,000,000$ -$ 2,000,000$ (2,000,000)$ -$
Council A dded BA2 - Annex Building Renovation for Odyss ey Hous e 500,000$ 500,000$ (500,000)$ -$
A RPA Revenue Loss -$
One Time Us e of General Fund Balance -$
One Time Us e of General Fund Balance (FOF)-$
Homelessness and Public Safety: the City's Greatest Current Need -$
Police OT for Clean Neighborhoods teams 1,505,920$ 1,505,871$ 1,664,000$ 3,169,871$
Salary Restoration (Public Lands Park Rangers)1,508,044$ 1,508,044$ 1,680,496$ 792,195$ 3,980,735$
Public Lands Park Rangers (One-time directly from ARPA funding)69,247$ -$
CCP clean-up 325,250$ 27,259$ 143,080$ (103,080)$ 67,259$
HEART 57,000$ 57,000$ -$ 57,000$
Advantage Services Contract -$
Emergency Shelter Set Aside 600,000$ 301,456$ 301,456$
Police Overtime 400,000$ 27,895$ 372,105$ 400,000$
Building Community Resilience -$
Perpetual Housing Fund 10,000,000$ 10,000,000$
Urban Land Fund 4,000,000$ 90,188$ 4,000,000$ (4,000,000)$ 90,188$
Community Grants -$
Community Grants 4,000,000$ 4,000,000$ (2,000,000)$ 2,000,000$
TOTAL 1,193,000$37,520,899$25,332,866$38,855,792$19,926,440$1,002,720$ 85,117,818$
Amount of Distibution 85,411,572$
ARPA remaining 293,754$
* $207,044 is projected for the remaining salaries of the Grant Administrator
Salt Lake City
ARPA Budgeted Funding
FY2022
Actuals
Page | 20
5.Stipends for Boards and Commissions – The MRB continues funding stipends for board and
commission members, which was initially funded in the FY 23 budget with payments starting in
Spring 2023. The stipend is $40 per meeting for each board and commissioner. This is consistent
with the Council’s discussions at the outset of the Racial Equity and Policing Commission, in an
effort to broaden the constituencies who may be able to serve on boards and commissions by
offsetting potential costs (transportation, childcare, etc.). The Council may wish to ask the
Administration if they have received feedback from board and commission members about how this
funding is helping, or if there are other ways to expand the pool of residents that can afford to serve.
Staff note: This funding comes from the Mayor’s Office budget which does not have a separate
budget analysis staff report.
6. Public Utilities Funds budget items of note:
•Water Utility – The total Water Utility budget for FY 24 is $178 million. There is a
proposed rate increase of 18 percent for water this year. Rate increases for this and future
years for the utility are timed based on capital project needs and related bonding to finance
the projects. Debt service cost for all the funds is modeled to peak around 2037. This
year’s budget proposal includes a request to add a drought surcharge in the water utility.
This additional fee would be applied to users of water who enter blocks three and four of the
four-block tiered pricing structure already in place. Different rates can apply to each block
respectively.
•Sewer Utility – The total Sewer Utility budget for FY 24 is $302 million. It includes a
proposed rate increase of 18 percent for the sewer utility. Increases are timed based on
capital project needs and the related bonding to finance the projects. In FY 23 rates
increased 15 percent. Rate increases and bonding activity are related to the generational
Water Reclamation Facility construction project, to comply with federal standards for water
quality and treatment. Its debt service as a percent of operating revenue is projected at 37%
for the coming year. The wastewater reclamation facility is now anticipated to cost about
$910 million when it’s complete circa 2026. This is the major capital focus in this fund,
along with sewer line replacement and other infrastructure related to conveyance (e.g.
pump stations).
•Stormwater Utility – The total stormwater utility budget for FY 24 is $23 million. It
includes a proposed rate increase of 10 percent this year. Previous bond revenue for
infrastructure needs will provide cash for projects. Massive ongoing capital requirements
and debt payments drive the proposed rate increase. Recent infrastructure activity in this
utility accompanies the City’s 2018 bond for streets reconstruction, because stormwater and
streets projects are often closely connected.
•Street Lighting Utility – The FY 24 budget for Street Lighting is $6 million. It includes a
10 percent rate increase.
7. Golf – The Administration is proposing to continue the previous approach of using transfers from
the General Fund to help the Golf Fund into a balanced operational budget. Due to increased play
over the last several years, the FY 24 budget proposes the Golf Fund to dedicate the $1 per round
Capital Project fee along with operational surplus to needed capital projects (recent years this fee
has been used to offset operational losses). This year the Administration is proposing the following
transfers from Non-Departmental (Gen fund) to the Golf Fund:
•Cost of living wage for golf employees - $370,100
•Debt service payment on irrigation projects - $510,427
•Administrative Fees -- $356,302 (these will be paid back to the general fund and is done for
accounting/transparency purposes) The Administration has previously stated that although
the Golf Fund is an enterprise fund, there is a broader public benefit to that open space to
justify the general fund subsidizing debt and administrative fees.
•IMS Fees - $350,000 (these will be transferred to the IMS fund)
Page | 21
•General transfer to assist Golf - $500,000 - This transfer for general golf operations was
proposed as one time initially in FY 20, but has transitioned into an ongoing transfer. In FY
24 it is proposed to be used for Rose Park Infrastructure Renewal, as it was in FY 23.
8.County transportation option - In 2018 the State Legislature passed SB 136, which provided a
process for Counties to add a sales tax levy to pay for “regionally significant transportation projects,”
and indicated that beginning July 1, 2019, cities in those counties would receive 0.1% of the tax
(UTA also receives 0.1% and the County retains 0.05%) for this purpose. Technically this is a tax
collected by the County and remitted to the City, although it still falls under the category of a sales
and use tax. This is anticipated to generate approximately $9.7 million in FY 24 that will be
transferred to CIP for consideration for transportation projects, in accordance with Council
legislative intent. Note: The Administration is tracking this particular revenue and expense in a
separate fund, so the total is not reflected in the general fund budget from an accounting
perspective.
9.Compensation Changes – The FY 24 budget includes a 5% cost of living increase for all City
employees, along with market adjustments as recommended by the Citizens Compensation Advisory
Committee. The proposed salary increases add approximately $11.5 million in general fund
expenses. The total cost for compensation in the City general fund is $265.7 million, representing
60% of the total general fund budget. City-wide (including enterprise funds) the total amount
dedicated to compensation is $423.8 million.
•The City’s compensation philosophy is to pay employees in the 95%-100% of market to
maintain competitive compensation levels compared to other employers along the Wasatch
Front.
•The Administration is currently in negotiations with unions representing City employees.
Additional compensation changes for represented employees may be recommended to the
Council as part of the FY2023 annual budget based on those ongoing negotiations.
10.Lifestyle Spending Account (LSA) – The proposed budget includes a new benefit for City
employees on a post-tax reimbursement bases with a cap of $500. Examples include out of state medical
travel expenses, childcare, equipment purchases, health and fitness services, etc.
11.Health insurance – The City pays 95% of employee’s health insurance premiums for the health plan
offered by the City, the Summit Star High Deductible Health Plan administered by PEHP. Premiums are
proposed to increase (2.9%) for the City’s health plan, which is a very low increase and is an indicator of
sound fund management and responsible employee use. The Administration is proposing to continue
the up-front contribution to health saving accounts (HSAs) for employees. This is $750 for a single
employee and $1,500 for couples and families. The HSAs are managed independently by each employee,
can accrue money year to year, and earn interest.
12.Retirement – The Utah State Retirement System (URS) indicates to the City each year how much the
City must contribute towards employees’ retirement. There have been years when the City has had to
allocate significantly more funding to this line item to make up for the retirement system’s losses during
the 2008 recession. However, in recent years, increases have not been as significant. Council staff flags
this item annually however, as it is a necessary expense associated with City personnel that is not
controlled by City policymakers.
13.Enterprise Resource Planning (ERP) Initiative – The budget continues the City’s
implementation of the Enterprise Resource Planning Initiative. Various aspects of the project have
“gone live” recently, with the most significant aspects going live in the coming year. This project has
been the main focus of the City’s Innovations team, and has also needed the support and focus of many
Page | 22
FTEs throughout the City in order to make it successful. This initiative is key to enabling the City to
evaluate the overall budget in the future on a program by program basis.
•Staff will highlight in various department briefings where additional staff is proposed to be
added to facilitate these efforts.
•Background: Prior to Workday (the City’s ERP), the City has used a number of programs
to help the City manage and track human resources and finance data. Because these
systems are out of date and do not cross-communicate, there are several pain points that
significantly reduce the efficiency of City employees, hampering efforts at streamlining and
transparency. As has been discovered in the recent audit of the Police Department, current
organization of the City’s financial system also hampers analytical projects like a zero-based
budget exercise for the Police budget. Due to the fact that all of these systems need
updating, the City decided in FY 20 to embark on securing a system-wide solution known as
Enterprise Resource Planning (ERP). Other Cities are using this technology to dramatically
streamline operations and increase transparency. The Administration has convened a team
with representatives from various departments to guide this process and ensure that all
stakeholder needs are met. This topic can be addressed in more detail in the IMS
Department budget discussion.
General Budget Background Information
1.Property Tax Split – Below is a chart depicting the current (as of 2021) distribution of property
taxes to various entities, that are paid by residents and businesses in Salt Lake City (note that this
shifts each year slightly if one entity elects to pursue an increase in taxes):
2.New Growth Fluctuations – The following chart illustrates the historic new growth revenue
received by the City each year. Staff noted that the pattern in recent years does not track the actual
pattern of building permit activity, particularly in years before state law was clarified in 2016, and
since 2020, when building permits in the City have been steadily increasing:
SLC School District
26%
State Basic School Levy
14%
Charter School Levy
1%
SL County
15%
Salt Lake City
29%
Salt Lake City JL
0%
SLC Library
6%
SLC Library JL
0%
Metro
Water
SLC
2%
SLC Mosquito
Abatement
1%
Central UT Water
Conservancy
4%
Multicounty
Assessment Levy
0%
County Assessor Levy
2%
Page | 23
ATTACHMENTS:
•Attachment 1 - FY 2024 Department Budget briefing schedule
•Attachment 2 – Decision Matrix for Budget Subcommittee
•Attachment 3 – FY 2024 Mayor Recommended CIP Projects
•Attachment 4 – FY 2024 CDCIP Board Recommended CIP Projects
•Attachment 5 – Funding Our Future FY 24 detail
$(500,000)
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
FY
2015
FY
2016
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
Actual New Growth Received
Page | 24
ATTACHMENT 1 - FY 2024 Department Budget Briefing Schedule
April 19
Work Session
•Airport
•Public Utilities
•Library
May 2
Formal Meeting
•Mayor’s Recommended Budget Presentation
May 9
Work Session
•Budget Highlights from the Mayor’s Administration, including revenue
•Council Staff Budget Overview
•Metro Water
•Attorney's Office
May 16
Redevelopment Agency (RDA) Meeting
•RDA Budget Overview & Budget focus
Council Work Session
•Police
•Compensation
•IMS
•Justice Court
RDA, City Council, and Local Building Authority Budget Public Hearing - 7:00 p.m.
May 23
•Community & Neighborhoods
•Public Services
•Public lands
•Sustainability & Refuse
•Golf
•Non-Departmental
•Finance
•Fleet
•Unresolved Issues
Thursday, June 1
Work Session
•Fire
•Human Resources
•Economic Development
•911 Communications Bureau
•Insurance & Risk Management
•Governmental Immunity
June 6
Work Session
•CIP Overview
•Legislative Intents and Interim Study Items
•Unresolved Issues
Formal Meeting
•City Council Budget Public Hearing
Thursday June 8
•Unresolved Issues
Tuesday June 13th
RDA
•Potential budget adoption
Council Work Session
•Unresolved Issues
Council Formal Meeting
•Potential budget adoption
July XXX
•CIP
Tuesday, August 15th
•Council Formal Meeting - State-required Truth in Taxation Public Hearing
FY2024 FY2023 FY2022
Total FOF Revenue 52,338,120 47,215,097 40,359,137
Community and Neighborhoods 3,371,453 Beginning Balance 3,046,398 1,076,452
(64,759) Personal Services Base to Base Changes 54,400 BA#6 - Transfer to IMS - Civic Engagement Specialist (80,054)
Annualization of partially funded positions 40,749 Annualization of partially funded positions - Sales Tax Option - Housing
Pension Changes (5,400) Pension Changes (916) Build A More Equitable City (from Non-Departmental) 388,000
Insurance Rate Changes 2,620 Insurance Rate Changes 4,000 Expanded Housing Opportunity Program - Landlord
Insurance (from Non-Departmental) 53,000
Merit Changes - Merit Changes - Incentivized Rent Assistance (from Non-Departmental) 671,620
Salary Proposal 42,026 Salary Proposal 32,668 Mortgage Assistance (from Non-Departmental) 50,000
Homeless HSD - Advantage Services 598,000 Budget Amendment #2 - Salary Changes 20,156 Housing Plan - Marketing home ownership programs (from
Non-Departmental$300,000) 300,000
CAN/HSD - TIP, Tenant Relocation Assistance Program 180,000 Transportation Planner III (Grade 28) (10 Months) 203,747 Housing Plan - Service Models for most vulnerable (from
Non-Departmental $535,380) 525,380
CAN/HSD - TIP, Tenant Resource Center and Navigation Service 46,000 Program Expenses [One-Time $8,800]11,000 Shared Housing 62,000
TOTAL Community and Neighborhoods 4,210,689 3,371,453 3,046,398
Fire Department 869,540 Beginning Balance 236,448
Annualization of partially funded positions 24,022
Personal Services Base to Base Changes 42,368 Personal Services Base to Base Changes 25,846 Emergency Management Phase 2 236,448
Pension Changes (1,076) Pension Changes (1,264)
Insurance Rate Changes 3,348 Insurance Rate Changes 1,648
Merit Changes 6,571 Merit Changes -
Salary Proposal 37,261 Salary Proposal 6,696
316,092
Fleet Fuel Cost Increase
Remove Program Expense [One-Time] (47,200) Remove FD Deployment Expense Reimbursement [One Time]
Remove Emergency Management Phase 2 [One Time] (36,066)
(CHAT) Community Health Access Team Enhancements 369,667 Transfer MRT from ARPA Funding
Program Costs [One-Time, $2,000] 21,000 MRT Expansion (Firefighter) - (Grade 17) (11 Months) 264,240
Fire Captain - Medical Division (6-month funding) 72,252 Program Expenses [One-Time $47,200]55,900
Program Costs [One-Time, $2,500] 3,200
TOTAL Fire 1,400,953 869,540 236,448
Police Department 12,207,968 Beginning Balance 8,749,563 8,749,563
Personal Services Base to Base Changes (421,911) Personal Services Base to Base Changes 985,535
Annualization of partially funded positions 546,193 Annualization of partially funded positions
Pension Changes (11,921) Pension Changes 16,223
Insurance Rate Changes 32,376 Insurance Rate Changes 54,240
Merit Changes 2,780 Merit Changes 120,288
Salary Proposal 377,963 Salary Proposal 534,466
NFP & CCAC Cost Projections [41 Impacted Employees]
Budget Amendment #2 - Salary Changes 1,002,346
Civilian Response Team Program Director - (Grade 32) (10 Months) 130,143
Civilian Response (Grade 20) (9 Mths) 202,999 Civilian Response Team Specialist - (Grade 19) (6 Months) (CRT Funded) 520,164
Other Equipment [One-Time] 74,056
Fleet & Fuel Costs (Ongoing) 6,400 Program Expenses 95,000
TOTAL Police Department 13,016,903 12,207,968 8,749,563
Public Lands 687,424 Beginning Balance
Move Park Ranger to Funding Our Future 687,424
Personal Services Base to Base Changes (69,774)
Pension Changes (4,900)
Insurance Rate Changes 1,892
Merit Changes 4,986
Salary Proposal 26,893
FOF - Parks New Properties & Growth and Use Impacts (10 months)
Parks Maintenance Tech II (Grade 16) (10 Mths)67,800
Associated Seasonals 127,500
Program Costs [Ongoing]110,450
Sr Natural Resource Technician (Grade 16) (10 Mths)67,800
Maint. Electrician IV (Grade 22) (10 Mths)83,800
Program Costs [Ongoing] 39,000
General Maint. Worker IV (Grade 21) (10 Mths)79,800
Sprinkler Irrigation Tech III (Grade 20) (10 Mths) 76,000
Central Control Irrigation SPE (Grade 20) (10 Mths)76,000
Sr Warehouse Operator (Grade 15) (10 Mths)7,500
FOF - T&NL New Properties & Growth and Use Impacts
Sr Natural Resource Technician (Grade 16) (10 Mths)62,000
Associated Seasonals (13,400)
Program Costs [Ongoing]38,000
Environ Specialist II Union 74,700
Sr Natural Resource Technician (Grade 16) (10 Mths)62,000
Associated Seasonals 17,200
Program Costs [Ongoing]52,000
Operational Expenses [One-Time]50,000
Sr Natural Resource Technician (Grade 16) (10 Mths)62,000
Sr Natural Resource Technician (Grade 16) (10 Mths)62,000
TOTAL Public Lands 1,848,671 687,424
Public Services 3,482,579 Beginning Balance 2,675,831 2,353,031
Personal Services Base to Base Changes (203,084) Personal Services Base to Base Changes (4,016)
Annualization of partially funded positions 44,327 Annualization of partially funded positions -
Pension Changes (12,672) Pension Changes 3,358
Insurance Rate Changes 7,856 Insurance Rate Changes 12,400 Concrete Road Maintenance Initiative [Ongoing] 80,000
Merit Changes 6,344 Concrete Road Maintenance Initiative [One Time] 69,500
Salary Proposal 90,712 Salary Proposal 62,552 Streets Response Team FTE [Ongoing] 53,300
Budget Amendment #2 - Salary Changes 77,623 Increase 1/2 Asphalt Budget [Ongoing] 120,000
390,552
138,460
Streets Mill and Overlay Pilot Program (Equipment funding in CIP) 130,000 Program Expenses 20,000
Expansion of Traffic Signal Maintenance (Grade 23) (10 Months) 83,175
Program Expenses 16,300
TOTAL Public Services 3,539,718 3,482,579 2,675,831
911 Dispatch 792,384 281,325 911 Communications Bureau
Annualization of partially funded positions 511,059 32 Hour Work Week Pilot Program [Extending Pilot Program from Six
to 11 Months] 281,325
Personal Services Base to Base Changes 21,631
Pension Changes (3,780)
Insurance Rate Changes 3,224
Salary Proposal 33,387
846,846 792,384 281,325
Non Departmental FY2023 Budget FY2023 Budget FY 2022 Budget
Police Body Cameras and Vehicle Integration 512,578 Police Body Cameras and Vehicle Integration 512,578 Police Body Cameras and Vehicle Integration 512,578
Capital Improvement Projects and Maintenance Fund 3,100,000 Capital Improvement Projects and Maintenance Fund 3,100,000 CIP Projects (TBD) 1,280,000
Parks Maintenance from FOF 2,000,000 Parks Maintenance from FOF 2,000,000 Infrastructure Projects 2,300,000
Transit Plan - FTN
Transfer Out to CIP Fund Funding Our Future Transit Key
Routes Holding Account (One-time) (600 North Corridor
Transformation)
Transfer Out to CIP Fund
Funding Our Future
Transit Key Routes
1,879,654
Fleet Fund:Fleet Fund:
Public Safety Apparatus/Vehicle Replacement 4,000,000 Public Safety Apparatus/Vehicle Replacement 4,000,000 Fire Apparatus Replacement 4,000,000
Streets Fleet Equipment/Vehicle Replacement 1,700,000 Streets Fleet Equipment/Vehicle Replacement 1,700,000 Streets Fleet Equipment Replacement 950,916
Public Services - Concrete Maintenance Equipment Public Service Concrete Maintenance 58,000
Fleet - Centralized Fleet Maintenance 138,500 Fleet - Centralized Fleet Maintenance 138,500 Fleet - Centralized Fleet Maintenance 138,500
Fire - MRT 50,000
Police - Civilian Response Team Program Director 60,300
Police - Civilian Response Team Members 315,000
Public Services - Traffic Sign & Marking 133,000
Public Services - Traffic Signal Maintenance 170,300
Remove FY2023 Vehicles for New Positions 728,600
IMS Services:IMS Services:
IMS Servies 430,054 IMS Services 430,054 IMS Budget Amendment Changes 80,054
IMS Expenses for New Positions (GF - 47, FOF - 22)66,000 IMS Expenses for New Positions (GF - 47, FOF - 22)66,000 IMS Initiatives 350,000
Housing Plan - Land Discounts and Financing (transfer to
RDA) 2,590,000 Housing Plan - Land Discounts and Financing (transfer to
RDA) 2,590,000
Police Department:
Police Officer Training [One-Time $150,400]
Social Worker Program 646,017 Social Worker Program 962,109 Social Worker Program [BA#7 - Correct Accounting Error] 139,390
Increased Mental Health Responders 450,000 Increased Mental Health Responders 450,000 Increased Mental Health Responders (Funding in Non
Departmental) [9@10 Months and 3@6 Months] 450,000
842,000 BA#2 Transfer Social Workers to Fire Department (316,092)
Diversifying Public Safety Civilian Response Models Holding Account Diversifying Public Safety Civilian Response Models
Holding Account 842,000 Diversifying Public Safety Civilian Response Models Holding
Account 2,001,608
Transit:Transit:
Transit Plan - Service for Key Routes (1, 2, 9 & 21)6,600,000 Transit Plan - Service for Key Routes (1, 2, 9 & 21)6,600,000 Transit Plan - Key Routes 4,500,000
Transit Plan - Bus Service Mobilization for 1000 1,101,319
Transit Plan - On-Demand Ride Services (Smaller Service Area)1,900,000 Transit Plan - On Demand Ride Services 1,900,000 Transit Plan - On Demand Ride Services (Smaller 1,100,000
Transit Plan - UTA Outreach 100,000 Transit Plan - UTA Outreach 100,000 Transit Plan - UTA Outreach 100,000
Redevelopment Agency Fund
Housing Plan - Land Discounts and Financing (transfer to RDA) 2,590,000
25,803,749 25,803,749 23,532,019
Total FOF Expense 50,667,529 47,215,097 38,521,584
TOTAL Non-Departmental
TOTAL 911 Dispatch Bureau
Budget Amendment #4 - CHAT (3 FTEs from Police, Funding from Non
Expansion of Traffic Sign & Marking Maintenance (Grade 18) (10 Months)
Budget Amendment #4 - CCP-Rapid Intervention Team (Transfer from
Funding Our Future (FOF) Revenues and Expenses
Attachment 2 – Decision Matrix for Budget Committee
Mandate Reliance Community
Benefiting Equity Mayor Goals Council Priorities ESG Resiliency
0 There is no
mandate
Other Public
Sector entities
provide this
service
Indirect benefit to
the majority of
the community
No impact in
historically
underserved areas
Does not meet
any of the
Mayor's Go als
Does no t meet
any of the Council
priorities
Does not focus on
any of the ESG
areas
Does not meet
any resiliency
criteria
2 Self Mandate
Other Private
Sector entities
provide this
service
Direct benefit to
some of the
community and
indirect benefit to
the majority of
the community
Small impact in
historically
underserved areas
Meets 1-2 of the
Mayor's Go als
Meets 1-2 Council
priorities
Focuses on 1-2 o f
the ESG areas
Meets 1 - 3
resiliency criteria
4 State or Federal
Mandate
The City is the
sole pro vider o f
this service
Direct Benefit to
the majority of
the community
Large impact in
historically
underserved areas
Meets 3 or more
of the Mayors'
Go als
Meets 3 o r more
of the Council
priorities
Focuses on all the
ESG areas
Meets 4+
resiliency criteria
General Fund Class C Streets Impact Fee Parks Impact Fee FOF Streets FOF Other FOF Transit Q Cent
Available Funds 7,300,000$ 3,500,000$ 5,248,024$ 15,534,954$ 1,010,000$ 1,100,000$ 990,000$ 7,500,000$
Recommended Funds 7,284,921$ 3,500,000$ 240,000$ 2,728,850$ 1,000,000$ 1,100,000$ 990,000$ 7,500,000$
Remaining Funds 15,079$ -$ 5,008,024$ 12,806,104$ 10,000$ -$ -$ -$
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P2 (Tier I)Planning Library Plaza Structural Assessment and Visioning 104 $ 190,000 $ 190,000 $ - $ - $ - $ - $ - $ - $ - $ 190,000 $ 190,000 $ - $ - $ - $ - $ - $ - $ -
T4 New Safer Crossings: Main St., Glendale Park, and Citywide 103.3 $ 900,000 $ 270,000 $ - $ 90,000 $ - $ - $ - $ - $ 540,000 $ 900,000 $ 270,000 $ - $ 90,000 $ - $ - $ - $ - $ 540,000
C3 Constituent 200 East ADA and Sidewalk Improvements 103.1 $ 234,000 $ 234,000 $ - $ - $ - $ - $ - $ - $ - $ 234,000 $ 234,000 $ - $ - $ - $ - $ - $ - $ -
T6 New Transit Capital for Frequent Transit Routes / Operational Investments 101.9 $ 1,500,000 $ - $ - $ 150,000 $ - $ - $ - $ 1,350,000 $ - $ 1,100,000 $ - $ - $ 110,000 $ - $ - $ - $ 990,000 $ -
T1 Renewal Complete Streets Program: 2100 South, Virginia St., and Citywide 100.7 $ 6,600,000 $ 2,272,000 $ 1,228,000 $ - $ - $ - $ - $ - $ 3,100,000 $ 3,293,000 $ - $ - $ - $ - $ - $ - $ - $ 3,293,000
E3 Renewal Public Way Concrete 2023/2024 100 $ 750,000 $ - $ - $ - $ - $ 750,000 $ - $ - $ - $ 750,000 $ - $ - $ - $ - $ 750,000 $ - $ - $ -
T2 New Livable Streets Implementation 99.14 $ 2,500,000 $ 250,000 $ - $ - $ - $ - $ 2,250,000 $ - $ - $ 1,350,000 $ 250,000 $ - $ - $ - $ - $ 1,100,000 $ - $ -
T5 New Neighborhood Byways 98 $ 800,000 $ 440,000 $ - $ - $ - $ - $ - $ - $ 360,000 $ 800,000 $ 440,000 $ - $ - $ - $ - $ - $ - $ 360,000
E1 Renewal Complete Streets Reconstruction 2023/2024 97 $ 4,500,000 $ 2,250,000 $ 2,250,000 $ - $ - $ - $ - $ - $ - $ 4,500,000 $ 2,250,000 $ 2,250,000 $ - $ - $ - $ - $ - $ -
C23 Constituent Poplar Grove Park Full Court Basketball Expansion 96.86 $ 507,000 $ 253,500 $ - $ - $ 253,500 $ - $ - $ - $ - $ 507,000 $ 253,500 $ - $ - $ 253,500 $ - $ - $ - $ -
P1 (Tier I)New Cottonwood Park Trailhead and Parklet 95.57 $ 850,000 $ 202,000 $ - $ - $ 648,000 $ - $ - $ - $ - $ 850,000 $ 202,000 $ - $ - $ 648,000 $ - $ - $ - $ -
E2 Renewal Complete Streets Overlay 2023/2024 95.29 $ 3,500,000 $ 2,250,000 $ 1,250,000 $ - $ - $ - $ - $ - $ - $ 1,250,000 $ - $ 1,250,000 $ - $ - $ - $ - $ - $ -
T3 New Urban Trails: The Other Side Village & the 9-Line Trail 94 $ 1,700,000 $ - $ - $ - $ - $ - $ - $ - $ 1,700,000 $ 1,700,000 $ - $ - $ - $ - $ - $ - $ - $ 1,700,000
P3 (Tier I)Renewal Fire Station No. 7 Tennis and Pickleball Court Restoration and Amenities 92.57 $ 855,000 $ 438,850 $ - $ - $ 416,150 $ - $ - $ - $ - $ 855,000 $ 438,850 $ - $ - $ 416,150 $ - $ - $ - $ -
P6 (Tier II)New 337 Park Development 92.29 $ 550,000 $ - $ - $ - $ 550,000 $ - $ - $ - $ - $ 550,000 $ - $ - $ - $ 550,000 $ - $ - $ - $ -
C8 Constituent Jefferson Park Improvements 90.86 $ 530,000 $ - $ - $ - $ 530,000 $ - $ - $ - $ - $ 530,000 $ - $ - $ - $ 530,000 $ - $ - $ - $ -
P4 (Tier I)New Parks Bilingual Signage Installation 89.86 $ 414,000 $ 82,800 $ - $ - $ 331,200 $ - $ - $ - $ - $ 414,000 $ 82,800 $ - $ - $ 331,200 $ - $ - $ - $ -
C6 Constituent Fairpark Traffic Circle Construction Phase 89.57 $ 497,000 $ 497,000 $ - $ - $ - $ - $ - $ - $ - $ 497,000 $ - $ - $ - $ - $ - $ - $ - $ 497,000
E5 Renewal Alleyway Improvements 2023/2024 87 $ 250,000 $ - $ - $ - $ - $ 250,000 $ - $ - $ - $ 250,000 $ - $ - $ - $ - $ 250,000 $ - $ - $ -
F1 New Fire Station #1 Apparatus Bay Extension 86.57 $ 1,148,771 $ 1,148,771 $ - $ - $ - $ - $ - $ - $ - $ 1,148,771 $ 648,771 $ - $ - $ - $ - $ - $ - $ - $ 500,000
FA1 Renewal Facilities Asset Renewal Plan FY24 85.57 $ 1,700,000 $ 1,700,000 $ - $ - $ - $ - $ - $ - $ - $ 1,700,000 $ 1,700,000 $ - $ - $ - $ - $ - $ - $ -
S1 New Mill and Overlay Maintenance Pilot Program 84 $ 750,000 $ 750,000 $ - $ - $ - $ - $ - $ - $ - $ 750,000 $ - $ - $ - $ - $ - $ - $ - $ 750,000
C21 Constituent Historic Restorations, Replacements, Conservation Work at International Peace Gardens 82.86 $ 325,000 $ 325,000 $ - $ - $ - $ - $ - $ - $ - $ 325,000 $ 325,000 $ - $ - $ - $ - $ - $ - $ -
T8 Renewal 75-Year-Old Traffic Signal Replacement 80.14 $ 400,000 $ - $ - $ 40,000 $ - $ - $ - $ - $ 360,000 $ 400,000 $ - $ - $ 40,000 $ - $ - $ - $ - $ 360,000
TOTAL 31,950,771$ 13,553,921$ 4,728,000$ 280,000$ 2,728,850$ 1,000,000$ 2,250,000$ 1,350,000$ 6,060,000$ 24,843,771$ 7,284,921$ 3,500,000$ 240,000$ 2,728,850$ 1,000,000$ 1,100,000$ 990,000$ 7,500,000$ 500,000$
CDCIP Board RecommendationsRequested Amounts
General Fund Class C Streets Impact Fee Parks Impact Fee FOF Streets FOF Other FOF Transit Q Cent General Fund Class C Streets Impact Fee Parks Impact Fee FOF Streets FOF Other FOF Transit Q Cent
Available Funds 7,300,000$ 3,500,000$ 5,248,024$ 15,534,954$ 1,010,000$ 1,100,000$ 990,000$ 7,500,000$ Available Funds 7,307,135$ 3,500,000$ 5,248,024$ 15,534,954$ 1,010,000$ 1,250,000$ 990,000$ 7,500,000$
Recommended Funds 7,284,921$ 3,500,000$ 240,000$ 2,728,850$ 1,000,000$ 1,100,000$ 990,000$ 7,500,000$ Recommended Funds 7,284,921$ 3,500,000$ 240,000$ 2,728,850$ 1,000,000$ 1,250,000$ 990,000$ 7,500,000$
Remaining Funds 15,079$ -$ 5,008,024$ 12,806,104$ 10,000$ -$ -$ -$ Remaining Funds 22,214$ -$ 5,008,024$ 12,806,104$ 10,000$ -$ -$ -$
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P2 (Tier I)Planning Library Plaza Structural Assessment and Visioning 104 $ 190,000 $ 190,000 $ - $ - $ - $ - $ - $ - $ - $ 190,000 $ 190,000 $ - $ - $ - $ - $ - $ - $ -
T4 New Safer Crossings: Main St., Glendale Park, and Citywide 103.3 $ 900,000 $ 270,000 $ - $ 90,000 $ - $ - $ - $ - $ 540,000 $ 900,000 $ 270,000 $ - $ 90,000 $ - $ - $ - $ - $ 540,000
C3 Constituent 200 East ADA and Sidewalk Improvements 103.1 $ 234,000 $ 234,000 $ - $ - $ - $ - $ - $ - $ - $ 234,000 $ 234,000 $ - $ - $ - $ - $ - $ - $ -
T6 New Transit Capital for Frequent Transit Routes / Operational Investments 101.9 $ 1,100,000 $ - $ - $ 110,000 $ - $ - $ - $ 990,000 $ - $ 1,100,000 $ - $ - $ 110,000 $ - $ - $ - $ 990,000 $ -
T1 Renewal Complete Streets Program: 2100 South, Virginia St., and Citywide 100.7 $ 3,293,000 $ - $ - $ - $ - $ - $ - $ - $ 3,293,000 $ 3,293,000 $ - $ - $ - $ - $ - $ - $ - $ 3,293,000
E3 Renewal Public Way Concrete 2023/2024 100 $ 750,000 $ - $ - $ - $ - $ 750,000 $ - $ - $ - $ 750,000 $ - $ - $ - $ - $ 750,000 $ - $ - $ -
T2 New Livable Streets Implementation 99.14 $ 1,350,000 $ 250,000 $ - $ - $ - $ - $ 1,100,000 $ - $ - $ 1,350,000 $ 250,000 $ - $ - $ - $ - $ 1,100,000 $ - $ -
T5 New Neighborhood Byways 98 $ 800,000 $ 440,000 $ - $ - $ - $ - $ - $ - $ 360,000 $ 800,000 $ 440,000 $ - $ - $ - $ - $ - $ - $ 360,000
E1 Renewal Complete Streets Reconstruction 2023/2024 97 $ 4,500,000 $ 2,250,000 $ 2,250,000 $ - $ - $ - $ - $ - $ - $ 4,500,000 $ 2,250,000 $ 2,250,000 $ - $ - $ - $ - $ - $ -
C23 Constituent Poplar Grove Park Full Court Basketball Expansion 96.86 $ 507,000 $ 253,500 $ - $ - $ 253,500 $ - $ - $ - $ - $ 507,000 $ 253,500 $ - $ - $ 253,500 $ - $ - $ - $ -
P1 (Tier I)New Cottonwood Park Trailhead and Parklet 95.57 $ 850,000 $ 202,000 $ - $ - $ 648,000 $ - $ - $ - $ - $ 850,000 $ 202,000 $ - $ - $ 648,000 $ - $ - $ - $ -
E2 Renewal Complete Streets Overlay 2023/2024 95.29 $ 1,250,000 $ - $ 1,250,000 $ - $ - $ - $ - $ - $ - $ 1,250,000 $ - $ 1,250,000 $ - $ - $ - $ - $ - $ -
T3 New Urban Trails: The Other Side Village & the 9-Line Trail 94 $ 1,700,000 $ - $ - $ - $ - $ - $ - $ - $ 1,700,000 $ 1,700,000 $ - $ - $ - $ - $ - $ - $ - $ 1,700,000
P3 (Tier I)Renewal Fire Station No. 7 Tennis and Pickleball Court Restoration and Amenities 92.57 $ 855,000 $ 438,850 $ - $ - $ 416,150 $ - $ - $ - $ - $ 855,000 $ 438,850 $ - $ - $ 416,150 $ - $ - $ - $ -
P6 (Tier II)New 337 Park Development 92.29 $ 550,000 $ - $ - $ - $ 550,000 $ - $ - $ - $ - $ 550,000 $ - $ - $ - $ 550,000 $ - $ - $ - $ -
C8 Constituent Jefferson Park Improvements 90.86 $ 530,000 $ - $ - $ - $ 530,000 $ - $ - $ - $ - $ 530,000 $ - $ - $ - $ 530,000 $ - $ - $ - $ -
P4 (Tier I)New Parks Bilingual Signage Installation 89.86 $ 414,000 $ 82,800 $ - $ - $ 331,200 $ - $ - $ - $ - $ 414,000 $ 82,800 $ - $ - $ 331,200 $ - $ - $ - $ -
C6 Constituent Fairpark Traffic Circle Construction Phase 89.57 $ 497,000 $ - $ - $ - $ - $ - $ - $ - $ 497,000 $ 497,000 $ - $ - $ - $ - $ - $ - $ - $ 497,000
E5 Renewal Alleyway Improvements 2023/2024 87 $ 250,000 $ - $ - $ - $ - $ 250,000 $ - $ - $ - $ 250,000 $ - $ - $ - $ - $ 250,000 $ - $ - $ -
F1 New Fire Station #1 Apparatus Bay Extension 86.57 $ 1,148,771 $ 648,771 $ - $ - $ - $ - $ - $ - $ - $ 500,000 $ 1,148,771 $ 648,771 $ - $ - $ - $ - $ - $ - $ - $ 500,000
FA1 Renewal Facilities Asset Renewal Plan FY24 85.57 $ 1,700,000 $ 1,700,000 $ - $ - $ - $ - $ - $ - $ - $ 1,700,000 $ 1,700,000 $ - $ - $ - $ - $ - $ - $ -
S1 New Mill and Overlay Maintenance Pilot Program 84 $ 750,000 $ - $ - $ - $ - $ - $ - $ - $ 750,000 $ 750,000 $ - $ - $ - $ - $ - $ - $ - $ 750,000
C21 Constituent Historic Restorations, Replacements, Conservation Work at International Peace Gardens 82.86 $ 325,000 $ 325,000 $ - $ - $ - $ - $ - $ - $ - $ 325,000 $ 325,000 $ - $ - $ - $ - $ - $ - $ -
T8 Renewal 75-Year-Old Traffic Signal Replacement 80.14 $ 400,000 $ - $ - $ 40,000 $ - $ - $ - $ - $ 360,000 $ 400,000 $ - $ - $ 40,000 $ - $ - $ - $ - $ 360,000
N/A N/A Westside Art N/A $ 150,000 $ - $ - $ - $ - $ 150,000 $ - $ -
TOTAL 24,843,771$ 7,284,921$ 3,500,000$ 240,000$ 2,728,850$ 1,000,000$ 1,100,000$ 990,000$ 7,500,000$ 500,000$ 24,993,771$ 7,284,921$ 3,500,000$ 240,000$ 2,728,850$ 1,000,000$ 1,250,000$ 990,000$ 7,500,000$ 500,000$
CDCIP Board Recommendations Mayor Recommendations
The remaining $22,214 in GF and $10,000 of FOF Streets was added to Cost Overrun
Westside Art project was added ($150,000 of FOF Other)
CITY COUNCIL OF SALT LAKE CITY
451 SOUTH STATE STREET, ROOM 304
P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476
SLCCOUNCIL.COM
TEL 801-535-7600 FAX 801-535-7651
COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
TO:City Council Members
FROM:Sam Owen, Policy Analyst
DATE:May 9, 2023
RE: Salt Lake City Department of Airports Revenue Bonds, Series 2023
ISSUE AT A GLANCE
The Department of Airports is proposing and planning for another round of bonds to pay for capital projects
known as the New SLC which is comprised of the North Concourse Program as well as the Terminal
Redevelopment Program. The proposal anticipates a $445,240,000 total issuance just after the start of the new
fiscal year.
That is the request in front of the Council in connection with this briefing: consideration and decision on the
parameters resolution for the calendar 2023 issuance described above.
The following chart shows outstanding bong obligations as well as the current proposed issuance. Future
issuances are shown in the right two columns.
Chart reproduced from the airport presentation to the Council on this topic:
Item Schedule:
Briefing: May 9, 2023
Public Hearing: May 16, 2023
Potential Action: May 16, 2023
Page | 2
OTHER BACKGROUND
Repayment on the bonds is secured by airline revenue, facility charges, grants, and other airport revenue. Cost
per enplaned passenger, a key metric in evaluating costs to the Airlines to operate at the airport, and subsequent
debt repayment, is expected to reach over $20 by 2029 compared to a current $7.43. The debt service coverage
ratio is expected to reach 1.68 by 2030 from 2.45 now (without the load of the 2023 series or subsequent
issuances). The Airport’s Master Trust Indenture requires a debt service coverage ratio of 1.5. The change in this
metric over time indicates greater cost and more to repay, but a comfortable level of exposure in terms of
financial ratings and outlook for the airport. Enplanements show an upward trajectory approaching and
exceeding pre-2020 levels.
Current debt service
FY 2022 2023 2024
Interest payments on
bonds $116,531,042 $117,061,803 $121,527,966
Payments on bond
principle $1,140,000 $21,920,000 $25,815,000
A cornerstone of the airport’s bonding process is an extensive assessment by the “airport consultant,” a required
contractor entity that prepares documentation telling the full story of the airport, its key metrics and multi-year
trends.
That consultation describes the capital redevelopment of the airport as having “completed the initial phase of its
new airside concourses... [with the entire] concourse development… planned to be complete by late 2027. This
redevelopment is comprised of two major capital programs known as the Terminal Redevelopment Program
(TRP) and the North Concourse Program (NCP), as further described below. Collectively, these
redevelopment programs are referred to as the New SLC (formerly referred to as the Airport
Redevelopment Program).” (Emphasis added)
POLICY QUESTIONS
1.Bond documents list “investment considerations” outlining factors that could figure into returns on
airport debt, as well as stability and profitability of the operation. Among these considerations are
protection and preservation of the Great Salt Lake and wetland area, as well as carbon emissions
reductions. Council Members might wish to focus on these elements of rendering the airport mission
sustainable. Do Council Members want a better understanding of how the airport contributes to
preservation and emissions reduction goals for the region?
ATTACHMENTS
1. Transmittal
5/9/2023
AIRPORT REVENUE BONDS SERIES 2023A AND 2023B CITY COUNCIL
Overview of the New SLC
Completion of Phase 4 Achieves 94 Active Gates Plus
Hardstands to Provide Additional Future Capacity, When Needed
The New SLC March 2023
5
Financing schedule for the 2023 Bonds shows closing in August.*
Tuesday, May 9 City Council Work Session
Tuesday, May 16 City Council Meeting –Resolution Adoption
Week of June 12 Meet with Rating Agencies
Week of July 3 Receive Ratings
Post the Preliminary Official Statement
Week of July 17 Bond Pricing
Week of July 31 Closing
Series 2023 Bond Highlights
•Asking for authorization to borrow up to $600 million of general airport
revenue bonds with a plan to sell approximately $450 million
•Assumed interest rate is 5% based on current market conditions with a not to
exceed rate of 6%
•Final maturity of not greater than 40 years; most likely a 30-year final
maturity
•Bond proceeds will fund capitalized interest to help pay debt service until
bond-funded facilities are placed into service
Total capital costs of the New SLC are estimated
at $5.135 billion.
Total Project Costs
(in millions)
TRP $2,830.1
NCP $2,304.9
Total $5,135.0
PFC Revenues
(pay-as-you-go)
6.5%Airport Funds
11.1%
CFCs Revenues
(pay-as-you-go)
3.9%
AIP/TSA
3.5%
Outstanding Bonds
52.6%
Proposed Series
2023 Bonds
7.8%
Future Bonds
14.7%
Total Funding
from Bond Proceeds:
$3.85* billion
(75.0%)
* Includes earnings on project fund deposits prior to their expenditure
Two additional financings are planned to fund
the New SLC.
Source: PFM Financial Advisors LLC
* Series 2017, Series 2018, and Series 2021 metrics are actuals
** Capitalized interest period may be revised and will be based upon the placed in-service dates of the projects financed
Series 2017*Series 2018*Series 2021*Series 2023 Series 2024 Series 2026
Assumed
Issuance Date
Closed
February 23,
2021
Closed
October 31, 2018
Closed
August 5, 2021 August 1, 2023 July 1, 2024 January 1, 2026
Estimated
Principal Amount $1.0 billion $850.6 million $904.6 million $445.2 million $460.9 million $400.1 million
Estimated Project
Fund Deposit $883.8 million $771.5 million $974.6 million $400 million $400 million $353 million
Assumed
True Interest Cost 4.09%4.30%2.90%5.05%5.60%5.65%
Capitalized Interest
Period Through 2020
Completely
through 2020;
Partially through
2023
Partially through
July 2025
Partially through
July 2025**
Completely
through 2025;
Partially through
January 2026**
Completely
through 2026;
Partially through
July 2027**
Assumed
Final Maturity 7/1/2047 7/1/2048 7/1/2051 7/1/2053 7/1/2054 7/1/2055
Estimated sources and uses of funds for
the Series 2023 Bonds
Sources of Funds
Bond Par Amount $445,240,000
Original Issue Premium 11,325,916
Total Sources of Funds $456,565,916
Uses of Funds
Project Fund Deposit $400,000,000
Capitalized Interest 23,637,604
Debt Service Reserve Fund 30,252,275
Issuance Costs 2,676,037
Total Uses of Funds $456,565,916
Source: PFM Financial Advisors LLC
Estimated debt service on the Series 2023 Bonds
Year Principal Interest Debt Service Capitalized Interest Net Debt Service
2024 -$23,156,600 $23,156,600 ($18,331,358)$4,825,242
2025 7,090,000 23,156,600 30,246,600 (5,306,246)24,940,354
2026 7,445,000 22,802,100 30,247,100 30,247,100
2027 7,820,000 22,429,850 30,249,850 30,249,850
2028 8,210,000 22,038,850 30,248,850 30,248,850
2029 8,620,000 21,628,350 30,248,350 30,248,350
2030 9,050,000 21,197,350 30,247,350 30,247,350
2031 9,505,000 20,744,850 30,249,850 30,249,850
2032 9,980,000 20,269,600 30,249,600 30,249,600
2033 10,475,000 19,770,600 30,245,600 30,245,600
2034 11,005,000 19,246,850 30,251,850 30,251,850
2035 11,550,000 18,696,600 30,246,600 30,246,600
2036 12,130,000 18,119,100 30,249,100 30,249,100
2037 12,735,000 17,512,600 30,247,600 30,247,600
2038 13,370,000 16,875,850 30,245,850 30,245,850
2039 14,040,000 16,207,350 30,247,350 30,247,350
2040 14,740,000 15,505,350 30,245,350 30,245,350
2041 15,480,000 14,768,350 30,248,350 30,248,350
2042 16,255,000 13,994,350 30,249,350 30,249,350
2043 17,065,000 13,181,600 30,246,600 30,246,600
2044 17,920,000 12,328,350 30,248,350 30,248,350
2045 18,860,000 11,387,550 30,247,550 30,247,550
2046 19,850,000 10,397,400 30,247,400 30,247,400
2047 20,890,000 9,355,275 30,245,275 30,245,275
2048 21,990,000 8,258,550 30,248,550 30,248,550
2049 23,145,000 7,104,075 30,249,075 30,249,075
2050 24,415,000 5,831,100 30,246,100 30,246,100
2051 25,760,000 4,488,275 30,248,275 30,248,275
2052 27,175,000 3,071,475 30,246,475 30,246,475
2053 28,670,000 1,576,850 30,246,850 30,246,850
Total $445,240,000 $455,101,650 $900,341,650 ($23,637,604)$876,704,046
Questions?
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
CITY COUNCIL TRANSMITTAL
______________________________ Date Received: April 21, 2023
Lisa Shaffer, Chief Administrative Officer
Date Sent to Council: April__, 2023
TO: Salt Lake City Council DATE: April__, 2023
Darin Mano, Chair
FROM: Bill Wyatt, Salt Lake City Department of Airports, Executive Director
SUBJECT: Issuance of Airport Revenue Bonds, Series 2023 for Financing the Construction of
the New SLC International Airport
STAFF CONTACTS: Bill Wyatt, Executive Director, 801-575-2408
Brian Butler, Airport Chief Financial Officer, 801-575-2923
DOCUMENT TYPE: Resolution
RECOMMENDATION: (1) That the City Council adopt a resolution (the “Bond Resolution”)
on May 16, 2023, authorizing the issuance and sale of up to $600 million principal amount of Salt
Lake City, Airport Revenue Bonds, Series 2023 (the “2023 Bonds”), and giving authority to certain
officers to approve the final terms and provisions of and confirm the issuance of the 2023 Bonds,
from time to time, within certain parameters set forth in the attached Bond Resolution; (2) Set a
public hearing date for June 6, 2023, and (3) Hold a public hearing on June 6, 2023. This timeline
(the adoption of the Bond Resolution on May 16, 2023, the subsequent publication of the notice of
public hearing and bonds to be issued, and a public hearing on June 6, 2023) accommodates the
required 30-day contest period to close the transaction on or about July 31, 2023.
BUDGET IMPACT: This financing will have no impact on the City’s General Fund budget as no
General Fund revenues are pledged toward the repayment of the 2023 Bonds. Further, neither the
full faith and credit nor the taxing power of the City, the State or any political subdivision or state
agency is pledged to the payment of the principal of, premium if any, and interest on the 2023
Bonds.
Instead, 100% of the debt service on the 2023 Bonds will be paid from the various types of revenues
generated at Salt Lake City International Airport (the “Airport). Such revenues include the landing
fees, terminal rentals, and other fees paid by the airlines serving the Airport, as well as various
revenues generated from sources other than the airlines. Such non-airline revenues are derived from
sources such as parking, rental cars, food and beverage concessions, news and gift concessions,
Bill Wyatt (Apr 21, 2023 10:28 MDT)
Lisa Shaffer (Apr 21, 2023 12:55 MDT)
04/21/2023
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
cargo revenues and various types of rental income. The passenger facility charge (“PFC”) revenues
that the Airport receives from the $4.50 charge imposed on passengers boarding planes at the
Airport will also be applied toward the payment of project costs and debt service.
BACKGROUND/DISCUSSION: In 2014, the City entered into a new 10-year Airline Use
Agreement (“AUA”) with the airlines serving the Airport. In the AUA, the airlines authorized the
City to undertake the full Terminal Redevelopment Program (the “TRP”) planned for the Airport.
The TRP is a comprehensive and integrated series of projects that will result in the replacement of
substantially all of the Airport’s landside and terminal complex facilities. The TRP has a current
estimated cost of $2.83 billion. On April 30, 2015, the airlines that are signatories to the AUA voted
unanimously to approve construction of the North Concourse Project (the “NCP”). The NCP was
undertaken in lieu of renovating the Airport’s existing Concourses B, C and D. The NCP originally
included an additional concourse with approximately 31 gates and capacity for future expansion, and
a connecting tunnel to the main terminal complex. The NCP has a current estimated cost of $2.30
billion.
Phase I of the TRP opened on September 15, 2020 and Phase I of the NCP opened on October 27,
2020 which collectively are now referred to as the New SLC. Due to the global pandemic of Covid-
19, the City, in consultation with the airlines, decided to accelerate demolition of the existing
facilities and advance the schedule for Concourse A east. All of the legacy facilities of the old airport
have been demolished and construction has already commenced on the Concourse A east as well as
the central tunnel. Construction on the central node on concourse B as well as eight additional gates
began in Q1 2022.
In anticipation of the acceleration of the TRP phases, the City offered an extension of the AUA
through June 30, 2034, which was executed by Delta Air Lines and United Airlines. When it became
apparent that acceleration of Phase IV of the TRP would present substantial savings to the City by
monoloplizing on an already mobilized construction force and present day construction costs, the
City offered the airlines an amendment, or in the case of Delta Air Lines and United, a second
amendment, to the AUA to finance Phase IV development. The new AUA Amendment updates
and modernizes various provisions to the AUA, including key business terms to bolster the
Department’s ability to fund the New SLC and maintain financial stability.
Proceeds of the 2023 Bonds will be used to for the purposes of (a) financing additional capital
improvements to the Airport (the “Series 2023 Projects”); (b) funding capitalized interest on all or a
portion of the 2023 Bonds; (c) funding any necessary reserves in connection with the 2023 Bonds;
(d) paying the costs incurred in connection with the issuance and sale of the 2023 Bonds (including,
but not limited to, the purchase of one or more municipal bond insurance policies). and (e)
reimburse for capital costs incurred up to sixty (60) days prior to adoption of the resolution.
The Airport currently projects that the $5.13 billion of costs described above will be funded from
the following sources:
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
Estimated Sources of Funding
Amounts in
(millions)
Proceeds of 2017 Bonds $926
Proceeds of 2018 Bonds 799
Proceeds of 2021 Bonds 975
Proceeds of 2023 Bonds 400
Proceeds of Future Bonds 753
Pay-as-you-go Passenger Facility Charges (“PFCs”) 333
Customer Facility Charges (“CFCs”) 199
Federal Grants (AIP and TSA) 180
Airport Internally-Generated Funds 570
Total $5,135
Assuming interest rates remain at their present levels at the time the bonds are sold, the City’s
financial advisor and underwriters estimate that the 2023 Bonds will be sold at a true interest cost of
approximately 5.0% per annum.
The current plan calls for the 2023 Bonds to be sold on or about July 17, 2023. The Designated
Officers defined in the attached Bond Resolution are authorized to approve the interest rate(s) and
other terms and provisions relating to the 2023 Bonds by executing the Certificate of Determination,
the form of which is also attached.
The Certificate of Determination will need to be signed in-person by the Mayor and Council Chair
or their respective designees on the afternoon of the date of pricing and sale of the 2023 Bonds,
which is currently scheduled for July 31, 2023.
Included in section 11 of the Bond Resolution is a Declaration of Official Intent (Reimbursement of
Expenditures) that allows the Airport to seek reimbursement with proceeds of the 2023 Bonds for
expenditures related to both the TRP and NCP. This will allow the Airport to have more flexibility
when reimbursing construction costs when there is a gap in debt financing of construction costs.
Draft copies of the Bond Resolution, the Certificate of Determination, the Form of the Fourth
Supplemental Trust Indenture, the Form of the Preliminary Official Statement (including the Report
of the Airport Consultant), the Form of Bond Purchase Agreement, the Form of Continuing
Disclosure Agreement, Notice of Public Hearing, and Notice of Bonds to Be Issued are included for
ERIN MENDENHALL
Mayor
OFFICE OF THE MAYOR
P.O. BOX 145474
451 SOUTH STATE STREET, ROOM 306
SALT LAKE CITY, UT 84114-5474
WWW.SLCMAYOR.COM
TEL 801-535-7704
your review. Please keep in mind that these are preliminary drafts and are subject to change and
completion.
Attachments: Bond Resolution
Exhibit A: Certificate of Determination
Exhibit B: Form of Fourth Supplemental Trust Indenture
Exhibit C: Preliminary Official Statement (including the Report of the Airport
Consultant)
Exhibit D: Form of Bond Purchase Agreement
Exhibit E: Form of Continuing Disclosure Agreement
Exhibit F: Notice of Public Hearing
Exhibit G: Notice of Bonds to Be Issued
4854-1788-4237
RESOLUTION NO. _______ OF 2023
A RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF NOT TO
EXCEED $600,000,000 AGGREGATE PRINCIPAL AMOUNT OF ONE OR
MORE SERIES OF AIRPORT REVENUE BONDS (THE “SERIES 2023
BONDS”) FOR THE PURPOSE OF FINANCING CERTAIN CAPITAL
IMPROVEMENTS TO THE SALT LAKE CITY INTERNATIONAL AIRPORT;
GIVING AUTHORITY TO CERTAIN OFFICIALS AND OFFICERS TO
APPROVE THE FINAL TERMS AND PROVISIONS OF THE SERIES 2023
BONDS WITHIN THE PARAMETERS SET FORTH HEREIN; AUTHORIZING
AND APPROVING THE EXECUTION AND DELIVERY OF A FOURTH
SUPPLEMENTAL TRUST INDENTURE, A BOND PURCHASE AGREEMENT
AND A CONTINUING DISCLOSURE AGREEMENT; AUTHORIZING AND
APPROVING PRELIMINARY AND FINAL OFFICIAL STATEMENTS AND
THE DISTRIBUTION THEREOF; PROVIDING FOR THE PUBLICATION OF
A NOTICE OF PUBLIC HEARING AND A NOTICE OF BONDS TO BE
ISSUED; PROVIDING FOR THE RUNNING OF A CONTEST PERIOD;
AUTHORIZING THE TAKING OF ALL OTHER ACTIONS NECESSARY FOR
THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY
THIS RESOLUTION; AND RELATED MATTERS.
W I T N E S S E T H :
WHEREAS, Salt Lake City, Utah (the “City”), is a duly organized and existing city of the
first class, operating under the general laws of the State of Utah (the “State”); and
WHEREAS, on February 23, 2017, pursuant to authority contained in the Local
Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended (the
“Act”), and other applicable provisions of law, and the Master Trust Indenture, dated as of
February 1, 2017 (the “Master Indenture”), by and between the City and Wilmington Trust,
National Association, as trustee (the “Trustee”), and the First Supplemental Trust Indenture, dated
as of February 1, 2017, by and between the City and the Trustee, the City issued its Airport
Revenue Bonds, Series 2017A (AMT) and Series 2017B (Non-AMT) (collectively, the “Series
2017 Bonds”) in the aggregate principal amount of $1,000,000,000; and
WHEREAS, the Series 2017 Bonds were issued to (a) finance certain capital improvements
to the Salt Lake City International Airport; (b) fund capitalized interest on the Series 2017 Bonds;
(c) make a deposit to the Common Debt Service Reserve Fund (as defined in the Master Indenture);
and (d) pay the costs incurred in connection with the issuance and sale of the Series 2017 Bonds;
and
WHEREAS, on October 31, 2018, pursuant to authority contained in the Act, and other
applicable provisions of law, and the Master Indenture and the Second Supplemental Trust
Indenture, dated as of October 1, 2018, by and between the City and the Trustee, the City issued
its Airport Revenue Bonds, Series 2018A (AMT) and Series 2018B (Non-AMT) (collectively, the
“Series 2018 Bonds”) in the aggregate principal amount of $850,550,000; and
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WHEREAS, the Series 2018 Bonds were issued to (a) finance certain capital improvements
to the Salt Lake City International Airport; (b) fund capitalized interest on the Series 2017 Bonds
and the Series 2018 Bonds; (c) make a deposit to the Common Debt Service Reserve Fund; and
(d) pay the costs incurred in connection with the issuance and sale of the Series 2018 Bonds; and
WHEREAS, on March 1, 2021, pursuant to authority contained in the Act, and other
applicable provisions of law, the Master Subordinate Trust Indenture, dated as of March 1, 2021
(the “Master Subordinate Indenture”), by and between the City and Zions Bancorporation,
National Association, as trustee (the “Subordinate Trustee”), the First Supplemental Subordinate
Trust Indenture, dated as of March 1, 2021 (the “First Supplemental Subordinate Indenture,”
and together with the Master Subordinate Indenture, the “Subordinate Indenture”), by and
between the City and the Subordinate Trustee, and the Revolving Credit Agreement, dated as of
March 1, 2021 (the “Subordinate Credit Agreement”), by and between the City and JPMorgan
Chase Bank, National Association (the “Subordinate Bank”), the City established a short-term
borrowing program that provides for the issuance and/or incurrence, from time to time, of
subordinate airport revenue short-term revolving obligations (the “Subordinate Revolving
Obligations”), which may be outstanding at any one time in an aggregate principal amount not
exceeding $150,000,000; and
WHEREAS, the Subordinate Revolving Obligations are issued and/or incurred, from time
to time, to finance capital improvements to the Salt Lake City International Airport, to pay costs
of issuance related to the Subordinate Revolving Obligations and to finance such other purposes
permitted under the Act, the Subordinate Indenture and the Subordinate Credit Agreement; and
WHEREAS, on August 5, 2021, pursuant to authority contained in the Act, and other
applicable provisions of law, and the Master Indenture and the Third Supplemental Trust
Indenture, dated as of August 1, 2021, by and between the City and the Trustee, the City issued its
Airport Revenue Bonds, Series 2021A (AMT) and Series 2021B (Non-AMT) (collectively, the
“Series 2021 Bonds”) in the aggregate principal amount of $904,570,000; and
WHEREAS, the Series 2021 Bonds were issued to (a) finance certain capital improvements
to the Salt Lake City International Airport; (b) repay Subordinate Revolving Obligations; (c) fund
capitalized interest on the Series 2021 Bonds; (d) make a deposit to the Common Debt Service
Reserve Fund; and (e) pay the costs incurred in connection with the issuance and sale of the
Series 2021 Bonds; and
WHEREAS, the City considers it necessary and desirable and for the benefit of the City
and its residents to issue additional Airport Revenue Bonds pursuant to the Master Indenture, in
one or more series as hereinafter provided, for the purposes of (a) financing additional capital
improvements to the Salt Lake City International Airport (the “Series 2023 Projects”); (b) funding
capitalized interest on all or a portion of such additional Airport Revenue Bonds; (c) funding any
necessary reserves in connection with such additional Airport Revenue Bonds; and (d) paying the
costs incurred in connection with the issuance and sale of such additional Airport Revenue Bonds
(including, but not limited to, the purchase of one or more municipal bond insurance policies); and
WHEREAS, pursuant to authority contained in the Act and other applicable provisions of
law, the Master Indenture and a Fourth Supplemental Trust Indenture (the “Fourth Supplemental
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Indenture,” and together with the Master Indenture, the “Indenture”), to be executed and
delivered by and between the City and the Trustee, a form of which is attached hereto as Exhibit B,
and for the purposes set forth above, the City has determined to (a) issue its additional Airport
Revenue Bonds, in one or more series, in an aggregate principal amount not to exceed
$600,000,000 (collectively, the “Series 2023 Bonds”) (subject to the further limitations outlined
herein); and (b) cause the proceeds of the sale of the Series 2023 Bonds to be applied in accordance
with the Indenture; and
WHEREAS, the City is authorized by the Act and the Master Indenture to execute and
deliver the Fourth Supplemental Indenture, and to issue the Series 2023 Bonds to finance the Series
2023 Projects, to fund capitalized interest on the Series 2023 Bonds, to make a deposit to the
Common Debt Service Reserve Fund and/or one or more Series Debt Service Reserve Funds (as
defined in the Master Indenture), and to pay all related costs authorized by law (including, but not
limited to, one or more municipal bond insurance policies); and
WHEREAS, Sections 11-14-316 and 11-14-318 of the Act provide that, before issuing
bonds, an issuing entity (a) may provide public notice of its intent to issue such bonds, and (b) must
hold a public hearing to receive input from the public with respect to (i) the issuance of such bonds,
and (ii) the potential economic impact that the improvement, facility or property for which the
bonds pay all or part of the cost will have on the private sector; and
WHEREAS, a portion of the Series 2023 Bonds will be issued as “exempt facility bonds”
as defined under Section 142(a) of the Internal Revenue Code of 1986, as amended (the “Code”),
and therefore are subject to the public approval and public hearing requirements set forth in Section
147(f) of the Code; and
WHEREAS, in compliance with Section 11-14-316 of the Act, the City desires to provide
for the publication of a Notice of Bonds to be Issued (the “Notice of Bonds to be Issued”) and the
running of a 30-day contest period, and to cause the publication of the Notice of Bonds to be Issued
at this time with respect to the issuance of the Series 2023 Bonds; and
WHEREAS, in compliance with Section 11-14-318 of the Act and Section 147(f) of the
Code, the City desires to call a public hearing and to publish a notice of such hearing with respect
to the issuance of the Series 2023 Bonds, and the capital improvements to the Salt Lake City
International Airport to be financed with the proceeds of the Series 2023 Bonds, and to provide
for the publication of a Notice of Public Hearing (the “Notice of Public Hearing”) at this time
with respect to the issuance of the Series 2023 Bonds and the capital improvements to the Salt
Lake City International Airport to be financed with the proceeds of the Series 2023 Bonds; and
WHEREAS, in the opinion of the City Council of Salt Lake City, Utah (the “City
Council”), it is in the best interests of the City and its residents that (a) the Designated Officers
(defined below) be authorized to approve the final terms and provisions relating to the Series 2023
Bonds and to execute the Certificate of Determination (defined below) containing such terms and
provisions and to accept the offer of BofA Securities, Inc., on behalf of itself and J.P. Morgan
Securities LLC, Barclays Capital Inc., Goldman Sachs & Co. LLC, Samuel A. Ramirez & Co.,
Inc., Siebert Williams Shank & Co., LLC, and Wells Fargo Bank, National Association
(collectively, the “Underwriters”), for the purchase of the Series 2023 Bonds; and (b) the
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Designated Officers, and such other officials and officers of the City named herein, be authorized
to execute and deliver the Fourth Supplemental Indenture, the Final Official Statement (defined
below), the Bond Purchase Agreement (defined below), the Continuing Disclosure Agreement
(defined below) and such other necessary documents with respect to the issuance of the Series
2023 Bonds, all as provided herein; and
WHEREAS, the City desires that this Resolution serve as an official action of the City
Council in order to comply with Treasury Regulation Section 1.150-2 and any other regulations of
the U.S. Department of the Treasury relating to the qualification for reimbursement of expenditures
incurred by the City prior to the date of issue of the Series 2023 Bonds;
NOW, THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, as
follows:
Section 1.Issuance of the Series 2023 Bonds.
(a)For the purposes set forth above, there is hereby authorized and directed the
execution, issuance, sale and delivery of the Series 2023 Bonds in one or more series (with
such adjustments to the series designation as are necessary or desirable) in the aggregate
principal amount not to exceed $$600,000,000. The Series 2023 Bonds shall be dated as
of their date of initial delivery, issued in authorized denominations, and payable all as
provided in the Indenture. The Series 2023 Bonds shall be subject to redemption prior to
maturity as provided in the Indenture and the Certificate of Determination.
(b)The form of the Series 2023 Bonds set forth in the form of the Fourth
Supplemental Indenture, subject to appropriate insertions and revisions in order to comply
with the provisions of the Indenture, is hereby approved. The Mayor of the City or the
Mayor’s designee (the “Mayor”) and the City Recorder of the City (the “City Recorder”)
or any Deputy City Recorder are hereby authorized and directed to execute and seal the
Series 2023 Bonds and to deliver the Series 2023 Bonds to the Trustee for authentication.
Any such execution of the Series 2023 Bonds by the Mayor and the City Recorder or any
Deputy City Recorder may be made by manual or facsimile signature. Any facsimile
signature of the Mayor and/or the City Recorder or any Deputy City Recorder shall have
the same force and effect as if the Mayor and/or City Recorder or any Deputy City Recorder
had manually signed each of such Series 2023 Bonds.
Section 2. Pledge to Secure the Series 2023 Bonds. The Series 2023 Bonds will be
limited obligations of the City, payable solely from and secured by a pledge of Net Revenues (as
defined in the Master Indenture) derived by the City from the operations of the Airport System (as
defined in the Master Indenture) and certain funds and accounts established pursuant to the
Indenture, on parity with the Series 2017 Bonds, the Series 2018 Bonds, the Series 2021 Bonds
and any additional Bonds (as defined in the Master Indenture) issued in the future. None of the
properties of the Airport System will be subject to any mortgage or other lien for the benefit of the
owners of the Series 2023 Bonds, and neither the full faith and credit nor the taxing power of the
City, the State of Utah (the “State”) or any political subdivision or agency of the State will be
pledged to the payment of the principal of, premium, if any, or interest on the Series 2023 Bonds.
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Section 3. Series 2023 Bond Details; Delegation of Authority.
(a)The Series 2023 Bonds shall mature on the dates and in the principal
amounts, and shall bear interest (calculated on the basis of a year of 360 days consisting of
twelve 30-day months) at the rates per annum and be payable on the dates, all as to be
provided in a Certificate of Determination, a form of which is attached hereto as Exhibit A,
to be delivered pursuant to this Section 3, which shall set forth certain terms and provisions
of the Series 2023 Bonds (the “Certificate of Determination”).
(b)For the purposes of this Resolution and the Series 2023 Bonds, there is
hereby delegated to (i) the Mayor or, in the event of the absence or incapacity of the Mayor,
the Mayor’s Chief of Staff, or in the event of the absence or incapacity of both the Mayor
and the Mayor’s Chief of Staff, either the Executive Director for the Department of
Airports of the City or his designee (the “Airport Executive Director”) or the Director of
Finance for the Department of Airports of the City (also referred to as the Chief Financial
Officer for the Department of Airports of the City) or his designee (the “Airport Director
of Finance”); and (ii) the Chair of the City Council or, in the event of the absence or
incapacity of the Chair of the City Council, the Vice Chair of the City Council, or in the
event of the absence or incapacity of both the Chair and the Vice Chair of the City Council,
the most senior member of the City Council then available (collectively, the “Designated
Officers”), subject to the parameters set forth in this Resolution, the power to determine
the following with respect to the Series 2023 Bonds, and any one of the Designated Officers
from each of (i) and (ii) above are together hereby authorized to make such determinations:
(i)the principal amount of each series of the Series 2023 Bonds
necessary to accomplish the purposes of the Series 2023 Bonds set forth in the
recitals hereto; provided that the aggregate principal amount of the Series 2023
Bonds shall not exceed $$600,000,000; provided further, that, if so determined by
the Designated Officers in the Certificate of Determination, the Series 2023 Bonds
may be issued as one or more series, with the appropriate adjustment to the series
designation, and the combined principal amount of all series of the Series 2023
Bonds may not exceed the maximum aggregate principal amount set forth in this
Section 3(b)(i) (all series of the Series 2023 Bonds are subject to all of the
determinations set forth in this Section 3(b));
(ii)the maturity date and principal amount of each maturity of each
series of the Series 2023 Bonds to be issued; provided, however, that the Series
2023 Bonds shall mature over a period of not to exceed forty (40) years from their
date of initial delivery;
(iii)the interest rate or rates to be borne by the Series 2023 Bonds, the
dates on which interest shall be paid and the date on which payment of such interest
shall commence, provided, however, that the interest rate or rates to be borne by
any Series 2023 Bond shall not exceed six percent (6.00%) per annum;
(iv)the sale of the Series 2023 Bonds and the purchase price to be paid
by the Underwriters; provided, however, that the discount from par of the Series
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2023 Bonds in the aggregate shall not exceed two percent (2.00%) (expressed as a
percentage of the principal amount);
(v)the Series 2023 Bonds, if any, to be retired from mandatory sinking
fund redemption payments and the dates and the amounts thereof;
(vi)the time and redemption price, if any, at which the Series 2023
Bonds may be called for redemption prior to their maturity at the option of the City;
and
(vii)any other provisions deemed advisable by the Designated Officers
not materially in conflict with the provisions of this Resolution.
Following the sale of the Series 2023 Bonds, the Designated Officers shall obtain such
information as they deem necessary to make such determinations as provided above and shall make
such determinations as provided above and shall execute the Certificate of Determination
containing such terms and provisions of each series of the Series 2023 Bonds, which execution
shall be conclusive evidence of the action or determination of the Designated Officers as to the
matters stated therein.
Section 4. Approval and Execution of the Fourth Supplemental Indenture. The
Fourth Supplemental Indenture, in substantially the form attached hereto as Exhibit B, is hereby
authorized and approved, and the Mayor is hereby authorized, empowered and directed to execute
and deliver the Fourth Supplemental Indenture on behalf of the City, and the City Recorder or any
Deputy City Recorder is hereby authorized, empowered and directed to affix to the Fourth
Supplemental Indenture the seal of the City and to attest such seal and countersign such Fourth
Supplemental Indenture, with such changes to the Fourth Supplemental Indenture from the form
attached hereto as are approved by the Mayor, her execution thereof to constitute conclusive
evidence of such approval. The Master Indenture and the Fourth Supplemental Indenture, shall
constitute a “system of registration” for all purposes of the Registered Public Obligations Act of
Utah.
Section 5. Preliminary Official Statement Deemed Final. The Preliminary Official
Statement (including the Report of the Airport Consultant provided by Landrum & Brown,
Incorporated appended to the Preliminary Official Statement as Appendix B thereto) with respect
to the Series 2023 Bonds, in substantially the form presented at this meeting and in the form
attached hereto as Exhibit C (collectively, the “Preliminary Official Statement”), including the
use and distribution thereof, is hereby authorized and approved, with such changes, omissions,
insertions, revisions and supplements as shall be necessary to complete the same and as the Mayor,
the Airport Executive Director or the Airport Director of Finance shall deem advisable. The
Mayor, the Airport Executive Director and the Airport Director of Finance are, and each of them
is, hereby authorized to do or perform all such acts and to execute all such certificates, documents
and other instruments as may be necessary or advisable to deem final the Preliminary Official
Statement within the meaning and for purposes of paragraph (b)(1) of Rule 15c2-12 of the
Securities and Exchange Commission, as amended (“Rule 15c2-12”), subject to completion
thereof with the information established at the time of the sale of the Series 2023 Bonds. The
Underwriters are hereby authorized to distribute (via printed format and/or electronic means) the
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Preliminary Official Statement in connection with the sale of the Series 2023 Bonds to the public.
In connection with the distribution of the Preliminary Official Statement, the Underwriters are
hereby further authorized to distribute (via printed format and/or through electronic means) copies
of the most recent annual comprehensive financial report of the Department of Airports of the City
and such other financial statements of the City or the Department of Airports of the City as the
Airport Executive Director or the Airport Director of Finance shall deem necessary or desirable.
Section 6. Final Official Statement. The final Official Statement with respect to the
Series 2023 Bonds, in substantially the form of the Preliminary Official Statement (including the
Report of the Airport Consultant provided by Landrum & Brown, Incorporated appended to the
Preliminary Official Statement as Appendix B thereto) presented at this meeting and in the form
attached hereto as Exhibit C (collectively, the “Final Official Statement”), including the use and
distribution thereof, is hereby authorized with such changes, omissions, insertions, revisions and
supplements as the Mayor, the Airport Executive Director and the Airport Director of Finance
shall deem advisable in order for such Final Official Statement to be deemed a “final official
statement” within the meaning of and for purposes of Rule 15c2-12, including the completion
thereof with the information established at the time of the sale of the Series 2023 Bonds set forth
in the Certificate of Determination. The Mayor and the Airport Executive Director shall sign and
deliver the Final Official Statement, and any supplements thereto, for distribution (via printed
format and/or electronic means) to prospective purchasers of the Series 2023 Bonds and other
interested persons. The approval of any such changes, omissions, insertions, revisions and
supplements shall be conclusively established by the Mayor’s and the Airport Executive Director’s
execution of such Final Official Statement. The Underwriters are hereby authorized to distribute
(via printed format and/or electronic means) the Final Official Statement in connection with the
sale of the Series 2023 Bonds to the public. In connection with the distribution of the Final Official
Statement, the Underwriters are hereby further authorized to distribute (via printed format and/or
through electronic means) copies of the most recent annual comprehensive financial report of the
Department of Airports of the City and such other financial statements of the City or the
Department of Airports of the City as the Airport Executive Director or the Airport Director of
Finance shall deem necessary or desirable.
Section 7. Sale of the Series 2023 Bonds; Bond Purchase Agreement. The Series 2023
Bonds authorized to be issued herein are hereby authorized to be sold and delivered to the
Underwriters, upon the terms and conditions set forth in the Bond Purchase Agreement. The
Mayor and the Airport Executive Director (or the Airport Director of Finance) are hereby
authorized, empowered and directed to execute and deliver the Bond Purchase Agreement on
behalf of the City in substantially the form attached hereto as Exhibit D, with such changes therein
from the form attached hereto as are approved by the Mayor and the Airport Executive Director
(or the Airport Director of Finance), their execution thereof to constitute conclusive evidence of
such approval (the “Bond Purchase Agreement”). The City Recorder or any Deputy City
Recorder is hereby authorized, empowered and directed to affix to the Bond Purchase Agreement
the seal of the City and to attest such seal and countersign the Bond Purchase Agreement.
Section 8. Other Certificates and Documents Required to Evidence Compliance with
Federal Tax and Securities Laws. Each of the Mayor, the City Recorder or any Deputy City
Recorder, the Airport Executive Director and the Airport Director of Finance, acting singularly, is
hereby authorized and directed to execute (a) such certificates and documents, including one or
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more tax compliance certificates, as are required to evidence compliance with the Code relating to
the tax-exempt status of interest on the Series 2023 Bonds; and (b) a Continuing Disclosure
Agreement, in substantially the form attached hereto as Exhibit E (the “Continuing Disclosure
Agreement”), and such other certificates and documents as shall be necessary to comply with the
requirements of Rule 15c2-12 and other applicable federal securities laws.
Section 9. Other Actions With Respect to the Series 2023 Bonds. The officers and
employees of the City shall take all action necessary or reasonably required to carry out, give effect
to, and consummate the transactions contemplated hereby and shall take all action necessary or
desirable in conformity with the Act and the Indenture to carry out the issuance of the Series 2023
Bonds, including, without limitation, the execution and delivery of any closing and other
documents required to be delivered in connection with the sale and delivery of the Series 2023
Bonds. If (a) the Mayor; (b) the City Recorder; (c) the Airport Executive Director; or (d) the
Airport Director of Finance shall be unavailable or unable to execute or attest and countersign,
respectively, the Series 2023 Bonds or the other documents that they are hereby authorized to
execute, attest and countersign, the same may be executed, or attested and countersigned,
respectively, (i) by the Mayor’s Chief of Staff; (ii) by any Deputy City Recorder; (iii) by any
designee of the Airport Executive Director; or (iv) by any designee of the Airport Director of
Finance. Without limiting the generality of the foregoing, the officers and employees of the City
are authorized and directed to take such action as shall be necessary and appropriate to issue the
Series 2023 Bonds.
Section 10. Notice of Public Hearing and Notice of Bonds to be Issued; Contest
Period.
(a) Notice of Public Hearing. In accordance with Section 11-14-318 of the Act
and Section 147(f) of the Code, as applicable, the City shall hold a public hearing on June 6,
2023, or such other date as selected by the City Council, to receive input from the public
with respect to (i) the issuance of the Series 2023 Bonds in an aggregate principal amount
not to exceed $$600,000,000; and (ii) the potential economic impact that the Series 2023
Projects will have on the private sector, from time to time. The hearing date shall not be
less than 14 days after the Notice of Public Hearing is published and posted, such
publication to be (A) made on (1) the Utah Public Notice Website created under Utah Code
Section 63A-16-601, and (2) the Salt Lake City Public Notice Webpage, and (B) posted in
a public location within the City and County Building, Plaza 349, and the Main Library,
likely to be seen by residents of Salt Lake City, as required under Utah Code Section 63G-
28-102. The City directs its officers and staff to cause the Notice of Public Hearing, in
substantially the form attached hereto as Exhibit F, to be (i) published at the time and on
(1) the Utah Public Notice Website created under Utah Code Section 63A-16-601, and
(2) the Salt Lake City Public Notice Webpage, and (ii) posted at the time and in a public
location within the City and County Building, Plaza 349, and the Main Library, likely to
be seen by residents of Salt Lake City, as required under Utah Code Section 63G-28-102.
After the public hearing, the Mayor is hereby authorized to approve the issuance of the
Series 2023 Bonds in accordance with Section 147(f) of the Code.
(b) Notice of Bonds to be Issued; Contest Period. In accordance with
Section 11-14-316 of the Act, the City directs its officers and staff to cause the Notice of
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Bonds to be Issued with respect to the Series 2023 Bonds, in substantially the form attached
hereto as Exhibit G, to be (i) published on (A) the Utah Public Notice Website created
under Utah Code Section 63A-16-601, (B) the Salt Lake City Public Notice Webpage, and
(C) the Utah Legal Notices website (www.utahlegals.com) created under Utah Code
Section 45-1-101, and (ii) posted in a public location within the City and County Building,
Plaza 349, and the Main Library, likely to be seen by residents of Salt Lake City, as required
under Utah Code Section 63G-28-102. The City Recorder shall cause a copy of this
Resolution (together with all exhibits hereto) to be kept on file electronically and at 451
South State Street, Room 415, Salt Lake City, Utah, for public examination during the
regular business hours of the City until at least thirty (30) days from and after the date of
publication of the Notice of Bonds to be Issued.
Section 11. Declaration of Official Intent (Reimbursement of Expenditures). The City
Council hereby declares the official intent of the City to reimburse the City with proceeds of the
Series 2023 Bonds for expenditures with respect to the “Terminal Redevelopment Program” and
the “North Concourse Program” at Salt Lake International Airport, made on and after a date that
is no more than 60 days prior to the adoption of this Resolution. For purposes of this Section 11,
the “Terminal Redevelopment Program” and the “North Concourse Program” at Salt Lake
International consist of the following components, among others: Concourse A-East, Concourse
B-East, hardstand facilities, baggage handling systems, the Central Tunnel, airfield projects,
“remain-overnight” airfield pavement, apron paving, the hydrant fueling system, and taxiway
paving.
Each of said expenditures was and will be either (a) of a type properly chargeable to a
capital account under general federal income tax principles (determined in each case as of the date
of the expenditure), (b) a cost of issuance with respect to the Series 2023 Bonds, (c) a nonrecurring
item that is not customarily payable from current revenues, or (d) a grant to pay a party that is not
related to or an agent of the City so long as such grant does not impose any obligation or condition
(directly or indirectly) to repay any amount to or for the benefit of the City. The maximum
principal amount of the Series 2023 Bonds to be issued to finance the certain portions of the
“Terminal Redevelopment Program” and the “North Concourse Program at Salt Lake International
is approximately $600 million (inclusive of financing costs).
The City will make a reimbursement allocation, which is a written allocation by the City
that evidences the City’s use of proceeds of the Series 2023 Bonds to reimburse an expenditure,
no later than 18 months after the later of the date on which the expenditure is paid or the applicable
component of the “Terminal Redevelopment Program” or the “North Concourse Program” at Salt
Lake International is placed in service or abandoned, but in no event more than three years after
the date on which the expenditure is paid.
Section 12. Prior Acts Ratified, Approved and Confirmed. All acts of the officers and
employees of the City heretofore or hereafter undertaken in connection with the issuance of the
Series 2023 Bonds are hereby ratified, approved and confirmed.
Section 13. Resolution Irrepealable. Following the execution and delivery of the Fourth
Supplemental Indenture, this Resolution shall be and remain irrepealable until all of the Series
2023 Bonds and the interest thereon shall have been fully paid, cancelled, and discharged.
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Section 14. Severability. If any section, paragraph, clause, or provision of this Resolution
shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of
such section, paragraph, clause, or provision shall not affect any of the remaining provisions of
this Resolution.
Section 15. Effective Date. This Resolution shall be effective immediately upon its
approval and adoption.
[Remainder of page intentionally left blank; signature page follows]
S-1
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ADOPTED AND APPROVED by the City Council of Salt Lake City, Utah, this 16th day
of May, 2023.
SALT LAKE CITY, UTAH
By
Chair, Salt Lake City Council
ATTEST:
By
City Recorder
[SEAL]
APPROVED:
By
Mayor
APPROVED AS TO FORM:
By
Megan DePaulis
Senior City Attorney
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EXHIBIT A
CERTIFICATE OF DETERMINATION
PURSUANT TO
RESOLUTION NO. [____] OF 2023
PROVIDING FOR THE ISSUANCE OF
AIRPORT REVENUE BONDS
Dated: [____________], 2023
1. Authority; Definitions. Pursuant to Resolution No. [___] of 2023, adopted by the
City Council (the “City Council”) of Salt Lake City, Utah (the “City”) on May 16, 2023 (the
“Resolution”), the City Council has authorized the issuance of the City’s Airport Revenue Bonds,
Series 2023A (AMT) (the “Series 2023A Bonds”) and Airport Revenue Bonds, Series 2023B
(Non-AMT) (the “Series 2023B Bonds,” and together with the Series 2023A Bonds, the “Series
2023 Bonds”) under and pursuant to the Master Trust Indenture, dated as of February 1, 2017 (the
“Master Indenture”), by and between the City and Wilmington Trust, National Association, as
trustee (the “Trustee”), and a Fourth Supplemental Trust Indenture, to be dated as of [______] 1,
2023 (the “Fourth Supplemental Indenture,” and together with the Master Indenture, the
“Indenture”), to be executed and delivered by and between the City and the Trustee. This
certificate is executed pursuant to and in accordance with the delegation of authority contained in
the Resolution, as authorized by law. All terms used herein and not otherwise defined herein shall
have the meanings specified in the Resolution or the Indenture.
2. Acceptance of Offer. The offer of BofA Securities, Inc., J.P. Morgan Securities
LLC, Barclays Capital Inc., Goldman Sachs & Co. LLC, Samuel A. Ramirez & Co., Inc., Siebert
Williams Shank & Co., LLC, and Wells Fargo Bank, National Association (collectively, the
“Underwriters” ) for the purchase of the Series 2023 Bonds, which is set out in full in the Bond
Purchase Agreement, dated [_______], 2023 (the “Bond Purchase Agreement”), between the City
and BofA Securities, Inc., on behalf of itself and the other Underwriters, is hereby accepted, it
being hereby found, determined and declared that such offer is in the best interests of the City.
The Series 2023 Bonds shall be issued by the City for the purposes set forth in the Indenture.
The sale of the Series 2023A Bonds to the Underwriters at the price of $[__________]
(representing the par amount of the Series 2023A Bonds $[__________], plus an original issue
premium of $[_________], less an original issue discount of $[__________], and less an
Underwriters’ discount of $[_________]) is hereby confirmed. The Series 2023A Bonds shall be
delivered to the Underwriters and the proceeds of sale thereof applied as provided in the Indenture,
the Bond Purchase Agreement and paragraph 5 hereof.
The sale of the Series 2023B Bonds to the Underwriters at the price of $[__________]
(representing the par amount of the Series 2023B Bonds $[__________], plus an original issue
premium of $[_________], less an original issue discount of $[__________], and less an
Underwriters’ discount of $[_________]) is hereby confirmed. The Series 2023B Bonds shall be
delivered to the Underwriters and the proceeds of sale thereof applied as provided in the Indenture,
the Bond Purchase Agreement and paragraph 5 hereof.
A-2
4854-1788-4237
3. Maturity Dates, Principal Amounts and Interest Rates of Series 2023 Bonds.
The Series 2023A Bonds shall be issued in the aggregate principal amount of $[________]. The
Series 2023A Bonds shall mature on July 1 of the years and in the principal amounts, and shall
bear interest payable semiannually on January 1 and July 1, commencing on January 1, 20[__], at
the rates per annum, as follows:
Maturity Date
(July 1)
Principal
Amount
Interest
Rate
$%
The Series 2023B Bonds shall be issued in the aggregate principal amount of $[________].
The Series 2023B Bonds shall mature on July 1 of the years and in the principal amounts, and shall
bear interest payable semiannually on January 1 and July 1, commencing on January 1, 20[__], at
the rates per annum, as follows:
Maturity Date
(July 1)
Principal
Amount
Interest
Rate
$%
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4854-1788-4237
4. Redemption of Series 2023 Bonds.
Optional Redemption of the Series 2023 Bonds.
(a)The Series 2023A Bonds maturing on or before July 1, 20[__] are not
subject to optional redemption prior to maturity. The Series 2023A Bonds maturing on or
after July 1, 20[__] are redeemable at the option of the City on or after [_______] 1, 20[__],
in whole or in part at any time, from any moneys that may be provided for such purpose,
at a redemption price equal to [___]% of the principal amount of the Series 2023A Bonds
to be redeemed plus accrued interest to the date fixed for redemption, without premium.
(b)The Series 2023B Bonds maturing on or before July 1, 20[__] are not
subject to optional redemption prior to maturity. The Series 2023B Bonds maturing on or
after July 1, 20[__] are redeemable at the option of the City on or after [_______] 1, 20[__],
in whole or in part at any time, from any moneys that may be provided for such purpose
and at a redemption price equal to [____]% of the principal amount of such Series 2023B
Bonds to be redeemed plus accrued interest to the date fixed for redemption, without
premium.
Mandatory Sinking Fund Redemption of the Series 2023 Term Bonds.
(a) The Series 2023A Bonds maturing on July 1, 20[__] are subject to
mandatory sinking fund redemption in part, by lot, at a redemption price equal to 100% of
the principal amount thereof, plus accrued interest thereon to the date fixed for redemption,
without premium, on July 1 of the following years and in the following principal amounts:
July 1
of the Year Principal Amount
$
*
*Final Maturity Date
(b) The Series 2023B Bonds maturing on July 1, 20[__] are subject to
mandatory sinking fund redemption in part, by lot, at a redemption price equal to 100% of
the principal amount thereof, plus accrued interest thereon to the date fixed for redemption,
without premium, on July 1 of the following years and in the following principal amounts:
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4854-1788-4237
July 1
of the Year
Principal Amount
$
*
*Final Maturity Date
5. Use of Proceeds of Series 2023 Bonds.
(a) The proceeds of the sale of the Series 2023A Bonds, being the amount of
$[________] (which sum represents the par amount of the Series 2023A Bonds of
$[________] plus an original issue premium of $[_________], less an original issue
discount of $[__________], and less an Underwriters’ discount of $[_________]), shall be
deposited and used as follows:
(i) $[__________], representing Capitalized Interest, shall be deposited
into the Interest Account of the Series 2023A Debt Service Fund (held by the
Trustee) to be used to pay the interest due and payable on the Series 2023A Bonds
on the following dates and in the following amounts:
Interest Payment
Date
Amount to be Used to
Pay Interest
All remaining amounts on
deposit in Interest Account
(ii) $[________] shall be deposited into the Common Debt Service
Reserve Fund (held by the Trustee);
(iii) $[________] shall be deposited into the Series 2023A Costs of
Issuance Account (held by the City) to be used to pay the Costs of Issuance of the
Series 2023A Bonds; and
(iv) $[________] shall be deposited into the Series 2023A Construction
Fund (held by the City) to be used to pay the Costs of the Series 2023A Project.
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4854-1788-4237
(b) The proceeds of the sale of the Series 2023B Bonds, being the amount of
$[________] (which sum represents the par amount of the Series 2023B Bonds of
$[________] plus an original issue premium of $[_________], less an original issue
discount of $[__________], and less an Underwriters’ discount of $[_________]), shall be
deposited and used as follows:
(i) $[__________], representing Capitalized Interest, shall be deposited
into the Interest Account of the Series 2023B Debt Service Fund (held by the
Trustee) to be used to pay the interest due and payable on the Series 2023B Bonds
on the following dates and in the following amounts:
Interest Payment
Date
Amount to be Used to
Pay Interest
All remaining amounts on
deposit in Interest Account
(ii) $[________] shall be deposited into the Common Debt Service
Reserve Fund (held by the Trustee);
(iii) $[________] shall be deposited into the Series 2023B Costs of
Issuance Account (held by the City) to be used to pay the Costs of Issuance of the
Series 2023B Bonds; and
(iv) $[________] shall be deposited into the Series 2023B Construction
Fund (held by the City) to be used to pay the Costs of the Series 2023B Project.
(Remainder of page intentionally left blank; signature page follows)
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4854-1788-4237
IN WITNESS WHEREOF, we have hereunto set our hand on the _____ day of ____, 2023.
By
Mayor
By
Chair, Salt Lake City Council
Approved as to form:
By
Senior City Attorney
4854-1788-4237
EXHIBIT B
[ATTACH FORM OF FOURTH SUPPLEMENTAL TRUST INDENTURE]
DRAFT
4855-0634-7339.3
FOURTH SUPPLEMENTAL TRUST INDENTURE
by and between
SALT LAKE CITY, UTAH,
a municipal corporation and political subdivision of the State of Utah
and
WILMINGTON TRUST, NATIONAL ASSOCIATION
as Trustee
Relating to
$[PARA]
Salt Lake City, Utah
Airport Revenue Bonds
Series 2023A
(AMT)
$[PARB]
Salt Lake City, Utah
Airport Revenue Bonds
Series 2023B
(Non-AMT)
Dated as of [] 1, 2023
TABLE OF CONTENTS
Page
4855-0634-7339.3
ARTICLE I
DEFINITIONS; INTERPRETATIONS
Section 1.01. Definitions........................................................................................................ 2
Section 1.02. Article and Section References ........................................................................ 4
ARTICLE II
THE SERIES 2023 BONDS
Section 2.01. Designation of the Series 2023 Bonds; Principal Amount .............................. 4
Section 2.02. Series 2023 Bonds Under the Master Indenture; Security; Parity ................... 4
Section 2.03. General Terms of the Series 2023 Bonds ........................................................ 4
Section 2.04. Exchange of Series 2023 Bonds ...................................................................... 6
ARTICLE III
REDEMPTION OF THE SERIES 2023 BONDS
Section 3.01. Notices to Holders............................................................................................ 6
Section 3.02. Redemption Dates ............................................................................................ 7
Section 3.03. Optional Redemption of the Series 2023 Bonds .............................................. 7
Section 3.04. Mandatory Sinking Fund Redemption of the Series 2023 Term Bonds .......... 8
Section 3.05. Payment of Series 2023 Bonds Called for Redemption ................................ 10
Section 3.06. Selection of Series 2023 Bonds for Redemption; Series 2023 Bonds
Redeemed in Part ........................................................................................... 10
Section 3.07. Effect of Redemption Call ............................................................................. 10
ARTICLE IV
ESTABLISHMENT OF FUNDS AND APPLICATION THEREOF
Section 4.01. Establishment of Funds and Accounts ........................................................... 10
Section 4.02. Application of Series 2023A Bond Proceeds................................................. 11
Section 4.03. Application of Series 2023B Bond Proceeds ................................................. 12
Section 4.04. Series 2023A Debt Service Fund ................................................................... 13
Section 4.05. Series 2023A Construction Fund ................................................................... 14
Section 4.06. Series 2023B Debt Service Fund ................................................................... 14
Section 4.07. Series 2023B Construction Fund ................................................................... 16
Section 4.08. Series 2023 Costs of Issuance Fund............................................................... 16
Section 4.09. Common Debt Service Reserve Fund ............................................................ 17
Section 4.10. Sources of Payment of the Series 2023 Bonds .............................................. 17
Section 4.11. Perfection of Security Interest ....................................................................... 17
ARTICLE V
TAX COVENANTS
Section 5.01. Series 2023 Rebate Fund ............................................................................... 18
Section 5.02. Preservation of Tax Exemption ..................................................................... 18
ii
4855-0634-7339.3
ARTICLE VI
MISCELLANEOUS
Section 6.01. Parties in Interest............................................................................................ 19
Section 6.02. Continuing Disclosure ................................................................................... 19
Section 6.03. Severability .................................................................................................... 19
Section 6.04. No Personal Liability of City Members and Officials; Limited
Liability of City to Bondholders .................................................................... 19
Section 6.05. Execution of Instruments; Proof of Ownership ............................................. 19
Section 6.06. System of Registration ................................................................................... 20
Section 6.07. Plan of Financing ........................................................................................... 20
Section 6.08. Governing Law .............................................................................................. 20
Section 6.09. Notices ........................................................................................................... 20
Section 6.10. Holidays ......................................................................................................... 21
Section 6.11. Counterparts ................................................................................................... 21
Section 6.12. Representation Regarding Ethical Standards for City Officers and
Employees and Former City Officers and Employees ................................... 21
EXHIBIT A FORM OF SERIES 2023 BOND
EXHIBIT B DEBT SERVICE SCHEDULES
EXHIBIT C-1 SERIES 2023A PROJECTS
EXHIBIT C-2 SERIES 2023B PROJECTS
4855-0634-7339.3
FOURTH SUPPLEMENTAL TRUST INDENTURE
THIS FOURTH SUPPLEMENTAL TRUST INDENTURE (this “Fourth
Supplemental Indenture”), dated as of [] 1, 2023, is entered into by and between SALT LAKE
CITY, UTAH (the “City”), a municipal corporation and political subdivision of the State of Utah,
and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association
organized and existing under the laws of the United States of America, as trustee (the “Trustee”),
and supplements that Master Trust Indenture, dated as of February 1, 2017 (as amended, restated,
supplemented or otherwise modified from time to time in accordance with the terms thereof, the
“Master Indenture”), by and between the City and the Trustee.
WHEREAS, the Master Indenture provides in Section 2.09 thereof for the issuance of
Bonds and in Section 10.02 thereof for the execution and delivery of Supplemental Indentures
setting forth the terms of such Bonds; and
WHEREAS the City now, for the purpose of providing money to finance certain capital
improvements to Salt Lake City International Airport, by execution and delivery of this Fourth
Supplemental Indenture and in compliance with the provisions of the Master Indenture (a) sets
forth the terms of its (i) $[PARA] Airport Revenue Bonds, Series 2023A (AMT) (the “Series
2023A Bonds”) and (ii) its $[PARB] Airport Revenue Bonds, Series 2023B (Non-AMT) (the
“Series 2023B Bonds” and, together with the Series 2023A Bonds, the “Series 2023 Bonds”),
(b) provides for the deposit and use of the proceeds of the Series 2023 Bonds, and (c) makes other
provisions relating to the Series 2023 Bonds.
GRANTING CLAUSE
In order to secure the payment of the Series 2023 Bonds, the City hereby pledges, assigns
and grants to the Trustee with respect to the Series 2023 Bonds all of the liens, rights, interests and
privileges set forth in the Granting Clauses of, and elsewhere in, the Master Indenture. To secure
further the payment of the Series 2023 Bonds, the City in furtherance of the Master Indenture
hereby pledges and grants to the Trustee a lien on and security interest in and assigns to the Trustee
all right, title and interest of the City, except as otherwise provided herein, in and to (a) the
Common Debt Service Reserve Fund (as defined in the Master Indenture) and all moneys and
securities held from time to time therein and, with respect to any Debt Service Reserve Fund Surety
Policy (as defined in the Master Indenture) provided at any time in satisfaction of all or a portion
of the Reserve Requirement (as defined in the Master Indenture) with respect to the Common Debt
Service Reserve Fund, all rights, title and interest in such instruments and the proceeds thereof, (b)
the Series 2023A Construction Fund (as hereinafter defined) and all moneys and securities held
from time to time therein, (c) the Series 2023B Construction Fund (as hereinafter defined) and all
moneys and securities held from time to time therein, (d) the Series 2023A Debt Service Fund (as
hereinafter defined) and all moneys and securities held from time to time therein, including any
Capitalized Interest, (e) the Series 2023B Debt Service Fund (as hereinafter defined) and all
moneys and securities held from time to time therein, including any Capitalized Interest, and (f) the
Series 2023 Costs of Issuance Fund (as hereinafter defined) and all moneys and securities held
from time to time therein.
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4855-0634-7339.3
ARTICLE I
DEFINITIONS; INTERPRETATIONS
Section 1.01. Definitions. The following definitions shall apply to terms used in this
Fourth Supplemental Indenture unless the context clearly requires otherwise. Capitalized terms
not otherwise defined in this Section 1.01 or elsewhere in this Fourth Supplemental Indenture shall
have the same meanings as set forth in the Master Indenture.
“Authorized Denominations” means $5,000 principal amount and integral multiples
thereof.
“Continuing Disclosure Agreement” means the agreement of the City, dated the date of
issuance of the Series 2023 Bonds, pursuant to which the City shall agree to undertake for the
benefit of the Holders and the beneficial owners of the Series 2023 Bonds certain ongoing
disclosure requirements.
“Costs of Issuance” means all costs and expenses incurred by the City in connection with
the issuance of the Series 2023 Bonds, including, but not limited to, costs and expenses of printing
and copying documents, the preliminary and final official statements and the Series 2023 Bonds,
underwriters’ compensation, and the fees, costs and expenses of rating agencies, the Trustee,
counsel, accountants, financial advisors, feasibility consultants and other consultants.
“Fourth Supplemental Indenture” means this Fourth Supplemental Trust Indenture, dated
as of [] 1, 2023, by and between the City and the Trustee and which, among other things, sets
forth the terms of the Series 2023 Bonds.
“Interest Payment Date” means each July 1 and January 1, commencing [January] 1, 2024,
the dates upon which interest on the Series 2023 Bonds becomes due and payable.
“Master Indenture” means the Master Trust Indenture, dated as of February 1, 2017, by
and between the City and the Trustee, as the same may be amended, supplemented or otherwise
modified from time to time in accordance with the terms thereof.
“Paying Agent” means, for purposes of this Fourth Supplemental Indenture and the
Series 2023 Bonds, the Trustee, or any other institution appointed by the City.
“Record Date” means for a January 1 Interest Payment Date the preceding December 15
and for a July 1 Interest Payment Date the preceding June 15.
“Registrar” means for purposes of this Fourth Supplemental Indenture and the Series 2023
Bonds, the Trustee, or any other institution appointed by the City.
“Series 2023A Bonds” means $[PARA] aggregate principal amount of Bonds issued under
the Master Indenture and this Fourth Supplemental Indenture and designated as “Salt Lake City,
Utah, Airport Revenue Bonds, Series 2023A (AMT).”
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4855-0634-7339.3
“Series 2023A Construction Fund” means the Construction Fund of such designation
established pursuant to Section 4.01(d) hereof and into which money is to be deposited to pay
Costs of the Series 2023A Projects.
“Series 2023A Costs of Issuance Account” means the Account of such designation
established in the Series 2023 Costs of Issuance Fund pursuant to Section 4.01(c) hereof and into
which money is to be deposited to pay Costs of Issuance of the Series 2023A Bonds.
“Series 2023A Debt Service Fund” means the Debt Service Fund of such designation
established pursuant to Section 4.01(a) hereof and into which money is to be deposited to pay debt
service on the Series 2023A Bonds.
“Series 2023A Projects” means, collectively, any or all of those capital projects listed in
Exhibit C-1 attached hereto which are to be financed with the proceeds of the Series 2023A Bonds
deposited into the Series 2023A Construction Fund.
“Series 2023A Term Bonds” means, collectively, the Series 2023A Bonds maturing on
July 1, 20[] and the Series 2023A Bonds maturity on July 1, 20[].
“Series 2023B Bonds” means $[PARB] aggregate principal amount of Bonds issued under
the Master Indenture and this Fourth Supplemental Indenture and designated as “Salt Lake City,
Utah, Airport Revenue Bonds, Series 2023B (Non-AMT).”
“Series 2023B Construction Fund” means the Construction Fund of such designation
established pursuant to Section 4.01(e) hereof and into which money is to be deposited to pay
Costs of the Series 2023B Projects.
“Series 2023B Costs of Issuance Account” means the Account of such designation
established in the Series 2023 Costs of Issuance Fund pursuant to Section 4.01(c) hereof and into
which money is to be deposited to pay Costs of Issuance of the Series 2023B Bonds.
“Series 2023B Debt Service Fund” means the Debt Service Fund of such designation
established pursuant to Section 4.01(b) hereof and into which money is to be deposited to pay debt
service on the Series 2023B Bonds.
“Series 2023B Projects” means, collectively, any or all of those capital projects listed in
Exhibit C-2 attached hereto which are to be financed with the proceeds of the Series 2023B Bonds
deposited into the Series 2023B Construction Fund.
“Series 2023B Term Bonds” means, collectively, the Series 2023B Bonds maturing on
July 1, 20[] and the Series 2023B Bonds maturity on July 1, 20[].
“Series 2023 Bonds” means, collectively, the Series 2023A Bonds and the Series 2023B
Bonds.
“Series 2023 Costs of Issuance Fund” means the Fund of such designation established
pursuant to Section 4.01(c) hereof and into which money is to be deposited to pay Costs of Issuance
of the Series 2023 Bonds.
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4855-0634-7339.3
“Series 2023 Rebate Fund” means the Fund of such designation that may be established
from time to time pursuant to Section 5.01 hereof and the provisions of the Tax Certificate.
“Series 2023 Term Bonds” means, collectively, the Series 2023A Term Bonds and the
Series 2023B Term Bonds.
“Tax Certificate” means the Tax Compliance Certificate, dated the date of issuance of the
Series 2023 Bonds, as amended from time to time, entered into by the City and executed with
respect to the Series 2023 Bonds.
Section 1.02. Article and Section References. Except as otherwise indicated, references
to Articles and Sections are to Articles and Sections of this Fourth Supplemental Indenture.
ARTICLE II
THE SERIES 2023 BONDS
Section 2.01. Designation of the Series 2023 Bonds; Principal Amount. The Bonds
authorized to be issued under the Master Indenture and this Fourth Supplemental Indenture shall
be designated as (a) “Salt Lake City, Utah, Airport Revenue Bonds, Series 2023A (AMT)”, which
shall be issued in the original principal amount of $[PARA], and (b) “Salt Lake City, Utah, Airport
Revenue Bonds, Series 2023B (Non-AMT)”, which shall be issued in the original principal amount
of $[PARB].
Section 2.02. Series 2023 Bonds Under the Master Indenture; Security; Parity. The
Series 2023 Bonds are issued under and subject to the terms of the Master Indenture, shall be
Bonds as defined pursuant to the Master Indenture, and are secured by and payable, on parity with
all Outstanding Bonds, from Net Revenues and other security provided in the Granting Clauses of
the Master Indenture and this Fourth Supplemental Indenture and in accordance with the terms of
the Master Indenture and this Fourth Supplemental Indenture. In order to secure the payment of
the Series 2023 Bonds, the City hereby pledges, assigns and grants to the Trustee with respect to
the Series 2023 Bonds all of the liens, rights, interests and privileges set forth in the Granting
Clauses of, and elsewhere in, the Master Indenture and this Fourth Supplemental Indenture.
Section 2.03. General Terms of the Series 2023 Bonds. The Series 2023 Bonds shall,
upon initial issuance, be dated [], 2023. Each Series 2023 Bond shall bear interest from the
Interest Payment Date next preceding the date of authentication thereof unless such date of
authentication is an Interest Payment Date, in which event such Series 2023 Bond shall bear
interest from such date of authentication, or unless such date of authentication is after a Record
Date and before the next succeeding Interest Payment Date, in which event such Series 2023 Bond
shall bear interest from such succeeding Interest Payment Date, or unless such date of
authentication is on or before [December 15, 2023], in which, event such Series 2023 Bond shall
bear interest from [], 2024. If interest on the Series 2023 Bonds shall be in default, Series 2023
Bonds issued in exchange for Series 2023 Bonds surrendered for transfer or exchange shall bear
interest from the Interest Payment Date to which interest has been paid in full on the Series 2023
Bonds surrendered.
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4855-0634-7339.3
The Series 2023 Bonds shall be initially issued as Book-Entry Bonds as provided in Section
2.06 of the Master Indenture. The Series 2023 Bonds shall be issued in Authorized Denominations.
Interest on the Series 2023 Bonds shall be paid on each Interest Payment Date. Interest on
the Series 2023 Bonds shall be calculated on the basis of a year of 360 days and twelve 30-day
months.
The Series 2023A Bonds shall be issued in the original principal amount of $[PARA] and
shall mature on the dates and in the principal amounts and bear interest at the interest rates as set
forth in the following schedule:
Maturity Date
(July 1)
Principal
Amount
Interest
Rate
The Series 2023B Bonds shall be issued in the original principal amount of $[PARB] and
shall mature on the dates and in the principal amounts and bear interest at the interest rates as set
forth in the following schedule:
Maturity Date
(July 1)
Principal
Amount
Interest
Rate
Payment of the principal of the Series 2023 Bonds shall be made upon surrender of the
Series 2023 Bonds to the Trustee or its agent; provided that with respect to the Series 2023 Bonds
which are Book-Entry Bonds, the payment of the principal shall be made as provided in
Section 2.06 of the Master Indenture and the Representation Letter. Payment of interest on the
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4855-0634-7339.3
Series 2023 Bonds which are not Book-Entry Bonds shall be paid by check or draft of the Trustee
mailed on the Interest Payment Date by first-class mail to the person who is the Holder thereof on
the Record Date, and such payment shall be mailed to such Holder at his address as it appears on
the registration books of the Registrar. The payment of interest on Book-Entry Bonds shall be
made as provided in Section 2.06 of the Master Indenture and the Representation Letter. With
respect to all Series 2023 Bonds, interest due and payable on any Interest Payment Date shall be
paid to the person who is the Holder as of the Record Date. The Series 2023 Bonds shall be
substantially in the form of Exhibit A attached hereto.
If the principal of a Series 2023 Bond becomes due and payable, but shall not have been
paid as a result of a default hereunder, and no provision is made for its payment, then such Series
2023 Bond shall bear interest at the same rate after such default as on the day before the default
occurred.
Section 2.04. Exchange of Series 2023 Bonds. Series 2023 Bonds which are delivered
to the Registrar for exchange may be exchanged for an equal total principal amount of Series 2023
Bonds of the same Series, interest rate and maturity date.
The Registrar will not, however, be required to transfer or exchange (a) any such Series
2023 Bond during the period established by the Registrar for selection of Series 2023 Bonds for
redemption or (b) any Series 2023 Bond which has been selected for redemption.
ARTICLE III
REDEMPTION OF THE SERIES 2023 BONDS
Section 3.01. Notices to Holders. If the City wishes that any Series 2023 Bonds be
redeemed pursuant to any optional redemption provision in this Fourth Supplemental Indenture,
the City will notify the Trustee of the applicable provision, the redemption date, the applicable
Series, the maturity date, the interest rate, the CUSIP number and the principal amount of the
applicable Series 2023 Bonds to be redeemed and other necessary particulars. The City will give
notice to the Trustee at least thirty-five (35) days before the redemption date, provided that the
Trustee may, at its option, waive such notice or accept notice at a later date. The Trustee shall
give notice of redemption, in the name of the City, to Holders affected by such redemption at least
thirty (30) days but not more than sixty (60) days before each redemption date, send such notice
of redemption by first-class mail (or with respect to Series 2023 Bonds held by DTC, either via
electronic means or by an express delivery service for delivery on the next following Business
Day) to each Holder of a Series 2023 Bond to be redeemed; each such notice shall be sent to the
Holder’s registered address.
Each notice of redemption shall specify the date of issue, the applicable Series, the maturity
date, the interest rate and the CUSIP number of the applicable Series 2023 Bonds to be redeemed,
if less than all Series 2023 Bonds of a Series, maturity date and interest rate are called for
redemption, the numbers assigned to such Series 2023 Bonds to be redeemed, the principal amount
to be redeemed, the date fixed for redemption, the redemption price, the place or places of payment,
the Trustee’s name, that payment will be made upon presentation and surrender of the applicable
Series 2023 Bonds to be redeemed, that interest, if any, accrued to the date fixed for redemption
7
4855-0634-7339.3
and not paid will be paid as specified in said notice, and that on and after said date interest thereon
will cease to accrue.
The City may provide that, if at the time of mailing of notice of an optional redemption
there shall not have been deposited with the Trustee moneys and/or securities sufficient to redeem
all the applicable Series 2023 Bonds called for redemption, such notice may state that it is
conditional, that is, subject to the deposit of the redemption moneys with the Trustee not later than
one (1) Business Day prior to the scheduled redemption date, and such notice shall be of no effect
unless such moneys are so deposited. In the event sufficient moneys and/or securities are not on
deposit one (1) Business Day prior to the scheduled redemption date, then the redemption shall be
canceled and on such cancellation date notice shall be mailed (or otherwise provided) to the
Holders of such Series 2023 Bonds to be redeemed in the manner provided in this Section.
Failure to give any required notice of redemption as to any particular Series 2023 Bonds
will not affect the validity of the call for redemption of any Series 2023 Bonds in respect of which
no failure occurs. Any notice sent as provided herein will be conclusively presumed to have been
given whether or not actually received by the addressee. When notice of redemption is given,
Series 2023 Bonds called for redemption become due and payable on the date fixed for redemption
at the applicable redemption price. In the event that funds are deposited with the Trustee sufficient
for redemption, interest on the Series 2023 Bonds to be redeemed will cease to accrue on and after
the date fixed for redemption.
If any Series 2023 Bonds at the time of redemption, are Book-Entry Bonds, then, at the
time of the mailing required by the first paragraph of this Section, such redemption notice shall be
given by (i) registered or certified mail, postage prepaid; (ii) telephonically confirmed facsimile
transmission; or (iii) overnight delivery service, to:
The Depository Trust Company
55 Water Street, 50th Floor
New York, NY 10041-0099
Attention: Call Notification
Facsimile: (212) 855-7232
Failure to give the notice described in the immediately preceding paragraph or any defect
therein shall not in any manner affect the redemption of any Series 2023 Bonds.
Section 3.02. Redemption Dates. The date fixed for redemption for Series 2023 Bonds
to be optionally redeemed in accordance with Section 3.03 hereof will be a date designated by the
City in the notice delivered pursuant to Section 3.01 hereof. The date fixed for mandatory sinking
fund redemptions of the Series 2023 Term Bonds will be as set forth in Section 3.04 hereof.
Section 3.03. Optional Redemption of the Series 2023 Bonds.
(a)The Series 2023A Bonds maturing on or before July 1, 20[] are not subject
to optional redemption prior to maturity. The Series 2023A Bonds maturing on or after
July 1, 20[] are redeemable at the option of the City on or after [July] 1, 20[], in whole
or in part at any time, from any moneys that may be provided for such purpose, at a
8
4855-0634-7339.3
redemption price equal to 100% of the principal amount of the Series 2023A Bonds to be
redeemed plus accrued interest to the date fixed for redemption, without premium.
(b)The Series 2023B Bonds maturing on or before July 1, 20[] are not subject
to optional redemption prior to maturity. The Series 2023B Bonds maturing on or after
July 1, 20[] are redeemable at the option of the City on or after [July] 1, 20[], in whole
or in part at any time, from any moneys that may be provided for such purpose, at a
redemption price equal to 100% of the principal amount of the Series 2023B Bonds to be
redeemed plus accrued interest to the date fixed for redemption, without premium.
Section 3.04. Mandatory Sinking Fund Redemption of the Series 2023 Term Bonds.
(a)The Series 2023A Bonds maturing on July 1, 20[] are subject to mandatory
sinking fund redemption in part, by lot, at a redemption price equal to 100% of the principal
amount thereof, plus accrued interest thereon to the date fixed for redemption, without
premium, on July 1 of the following years and in the following principal amounts:
July 1
of the Year Principal Amount
*Final Maturity Date
(b)The Series 2023A Bonds maturing on July 1, 20[] are subject to mandatory
sinking fund redemption in part, by lot, at a redemption price equal to 100% of the principal
amount thereof, plus accrued interest thereon to the date fixed for redemption, without
premium, on July 1 of the following years and in the following principal amounts:
July 1
of the Year Principal Amount
*Final Maturity Date
(d) The Series 2023B Bonds maturing on July 1, 20[] are subject to mandatory
sinking fund redemption in part, by lot, at a redemption price equal to 100% of the principal
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amount thereof, plus accrued interest thereon to the date fixed for redemption, without
premium, on July 1 of the following years and in the following principal amounts:
July 1
of the Year Principal Amount
*Final Maturity Date
(e) The Series 2023B Bonds maturing on July 1, 20[] are subject to mandatory
sinking fund redemption in part, by lot, at a redemption price equal to 100% of the principal
amount thereof, plus accrued interest thereon to the date fixed for redemption, without
premium, on July 1 of the following years and in the following principal amounts:
July 1
of the Year Principal Amount
*Final Maturity Date
(f) Except as otherwise provided in Section 2.06 of the Master Indenture, on or
before the forty-fifth (45th) day prior to any mandatory sinking fund redemption date, the
Trustee shall proceed to select for redemption (by lot in such manner as the Trustee may
determine), from each applicable Series 2023 Term Bonds, an aggregate principal amount
of such applicable Series 2023 Term Bonds equal to the amount for such year as set forth
in the appropriate table above and shall call such Series 2023 Term Bonds or portions
thereof (in Authorized Denominations) for redemption and give notice of such call.
(g) At the option of the City, to be exercised by delivery of a written certificate
to the Trustee on or before the sixtieth (60th) day next preceding any mandatory sinking
fund redemption date, it may (i) deliver to the Trustee for cancellation Series 2023 Term
Bonds or portions thereof (in Authorized Denominations) purchased in the open market or
otherwise acquired by the City or (ii) specify a principal amount of such Series 2023 Term
Bonds or portions thereof (in Authorized Denominations) which prior to said date have
been optionally redeemed and previously cancelled by the Trustee at the request of the City
and not theretofore applied as a credit against any mandatory sinking fund redemption
requirement. Each such Series 2023 Term Bond or portion thereof so purchased, acquired
or optionally redeemed and delivered to the Trustee for cancellation shall be credited by
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the Trustee at 100% of the principal amount thereof against the obligation of the City to
pay the principal of such Series 2023 Term Bond on such mandatory sinking fund
redemption date. In the event the City redeems any of the Series 2023 Term Bonds
pursuant to Section 3.03 hereof or purchases or acquires any of the Series 2023 Term Bonds
as described in this paragraph (g), the City will provide the Trustee with revised mandatory
sinking fund schedules, if applicable.
Section 3.05. Payment of Series 2023 Bonds Called for Redemption. Upon surrender
to the Trustee or the Trustee’s agent, the Series 2023 Bonds called for redemption shall be paid at
the redemption price stated in the notice, plus, when applicable, interest accrued to the date fixed
for redemption.
Section 3.06. Selection of Series 2023 Bonds for Redemption; Series 2023 Bonds
Redeemed in Part. The Series 2023 Bonds are subject to redemption in such order of maturity
date within each applicable Series (except mandatory sinking fund payments on the Series 2023
Term Bonds) as the City may direct and by lot, selected in such manner as the Trustee (or DTC,
as long as DTC is the securities depository for the Series 2023 Bonds) shall deem appropriate,
within a maturity date and interest rate.
Upon surrender of a Series 2023 Bond to be redeemed in part only, the Trustee will
authenticate for the Holder a new Series 2023 Bond of the same Series, maturity date and interest
rate equal in principal amount to the unredeemed portion of the Series 2023 Bond surrendered.
Section 3.07. Effect of Redemption Call. On the date so designated for redemption,
notice having been given in the manner and under the conditions provided herein and sufficient
moneys for payment of the redemption price being held in trust by the Trustee to pay the
redemption price, interest on such Series 2023 Bonds shall cease to accrue from and after such
redemption date, such Series 2023 Bonds shall cease to be entitled to any lien, benefit or security
under the Master Indenture and this Fourth Supplemental Indenture and the Holders of such Series
2023 Bonds shall have no rights in respect thereof except to receive payment of the redemption
price.
Series 2023 Bonds which have been duly called for redemption under the provisions of this
Article III and for the payment of the redemption price of which moneys shall be held in trust for
the Holders of the Series 2023 Bonds to be redeemed, all as provided in this Fourth Supplemental
Indenture, shall not be deemed to be Outstanding under the provisions of the Master Indenture and
this Fourth Supplemental Indenture.
ARTICLE IV
ESTABLISHMENT OF FUNDS AND APPLICATION THEREOF
Section 4.01. Establishment of Funds and Accounts. The following funds and accounts
are hereby established:
(a)Salt Lake City, Utah, Airport Revenue Bonds, Series 2023A Debt Service
Fund (the “Series 2023A Debt Service Fund”) and therein an Interest Account, a Principal
Account and a Redemption Account, to be held by the Trustee;
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4855-0634-7339.3
(b)Salt Lake City, Utah, Airport Revenue Bonds, Series 2023B Debt Service
Fund (the “Series 2023B Debt Service Fund”) and therein an Interest Account, a Principal
Account and a Redemption Account, to be held by the Trustee;
(c)Salt Lake City, Utah, Airport Revenue Bonds, Series 2023 Costs of Issuance
Fund (the “Series 2023 Costs of Issuance Fund”) and therein (i) the Salt Lake City, Utah,
Airport Revenue Bonds, Series 2023A Costs of Issuance Account (the “Series 2023A Costs
of Issuance Account”), and (ii) the Salt Lake City, Utah, Airport Revenue Bonds, Series
2023B Costs of Issuance Account (the “Series 2023B Costs of Issuance Account”), to be
held by the City;
(d)Salt Lake City, Utah, Airport Revenue Bonds, Series 2023A Construction
Fund (the “Series 2023A Construction Fund”), to be held by the City; and
(e)Salt Lake City, Utah, Airport Revenue Bonds, Series 2023B Construction
Fund (the “Series 2023B Construction Fund”), to be held by the City.
Section 4.02. Application of Series 2023A Bond Proceeds. The proceeds of the sale of
the Series 2023A Bonds, in the amount of $[]] (which sum represents the par amount of the Series
2023A Bonds of $[PARA].00, plus an original issue premium in the amount of $[] and less an
underwriters’ discount in the amount of $[]), received by the Trustee ($[] was received by the
Trustee) and the City ($[] was received by the City) shall be deposited by the Trustee and the City
as follows:
(a)$[] of the amount received by the Trustee, representing Capitalized Interest
on the Series 2023A Bonds, shall be deposited by the Trustee into the Interest Account of
the Series 2023A Debt Service Fund to be used to pay the interest due and payable on the
Series 2023A Bonds on the following dates and in the following amounts:
Interest Payment
Date
Amount to be Used to
Pay Interest
(b)$[] of the amount received by the Trustee shall be deposited by the Trustee
into the Common Debt Service Reserve Fund;
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(c)$[] of the amount received by the City shall be deposited by the City into
the Series 2023A Costs of Issuance Account to be used to pay the Costs of Issuance of the
Series 2023A Bonds; and
(d)$[] of the amount received by the City shall be deposited by the City into
the Series 2023A Construction Fund to be used to pay the Costs of the Series 2023A
Projects.
Section 4.03. Application of Series 2023B Bond Proceeds. The proceeds of the sale of
the Series 2023B Bonds, in the amount of $[] (which sum represents the par amount of the Series
2023B Bonds of $[PARB].00, plus an original issue premium in the amount of $[], and less an
underwriters’ discount in the amount of $[]), received by the Trustee ($[] was received by the
Trustee) and the City ($[] was received by the City) shall be deposited by the Trustee and the City
as follows:
(a)$[] of the amount received by the Trustee, representing Capitalized Interest
on the Series 2023B Bonds, shall be deposited by the Trustee into the Interest Account of
the Series 2023B Debt Service Fund to be used to pay the interest due and payable on the
Series 2023B Bonds on the following dates and in the following amounts:
Interest Payment
Date
Amount to be Used to
Pay Interest
(b)$[] of the amount received by the Trustee shall be deposited by the Trustee
into the Common Debt Service Reserve Fund;
(c)$[] of the amount received by the City shall be deposited by the City into
the Series 2023B Costs of Issuance Account to be used to pay the Costs of Issuance of the
Series 2023B Bonds; and
(d)$[] of the amount received by the City shall be deposited by the City into
the Series 2023B Construction Fund to be used to pay the Costs of the Series 2023B
Projects.
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Section 4.04. Series 2023A Debt Service Fund. The Trustee shall make deposits into
the Series 2023A Debt Service Fund as follows:
(a)Interest Account. The Trustee shall deposit into the Interest Account the
amount as provided in Section 4.02(a) hereof and shall, thereafter, deposit into the Interest
Account the amounts received from the City, as provided in the Master Indenture, to be
used to pay interest on the Series 2023A Bonds. The Trustee shall also deposit into the
Interest Account any other amounts deposited with the Trustee for deposit in the Interest
Account or transferred from other Funds and Accounts for deposit therein. All amounts
held at any time in the Interest Account shall be held on a priority basis for the ratable
security and payment of interest due on the Series 2023A Bonds in accordance with their
terms.
Earnings on amounts representing Capitalized Interest on deposit in the Interest
Account shall be retained in the Interest Account until the Series 2023A Projects are
completed. On [], 20[], any amounts representing Capitalized Interest, and any earnings
thereon, remaining on deposit in the Interest Account shall be transferred to the Series
2023A Construction Fund.
Earnings on all other amounts in the Interest Account (other than earnings on
amounts representing Capitalized Interest) shall be withdrawn and paid to the City on the
Business Day following an Interest Payment Date for deposit into the Revenue Account
unless an Event of Default exists under the Master Indenture, in which event the earnings
shall be retained in the Interest Account.
(b)Principal Account. The Trustee shall deposit into the Principal Account
the amounts received from the City, as provided in the Master Indenture, to be used to pay
the principal of the Series 2023A Bonds whether at maturity or by mandatory sinking fund
redemption as provided in Section 3.04 hereof. The Trustee shall also deposit into the
Principal Account any other amounts deposited with the Trustee for deposit into the
Principal Account or transferred from other Funds and Accounts for deposit therein. On
or about each July 15, earnings on amounts in the Principal Account shall be withdrawn
by the Trustee and paid to the City for deposit into the Revenue Account unless an Event
of Default exists under the Master Indenture, in which event the earnings shall be retained
in the Principal Account.
(c)Redemption Account. The Trustee shall deposit into the Redemption
Account amounts received from the City as provided in the Master Indenture to be used to
pay the redemption price of Series 2023A Bonds being redeemed as provided in
Section 3.03 hereof. The Trustee shall also deposit into the Redemption Account any other
amounts deposited with the Trustee for deposit into the Redemption Account or transferred
from other Funds and Accounts for deposit therein. Earnings on the Redemption Account
shall be withdrawn and paid to the City on the Business Day following a redemption date
for deposit into the Revenue Account unless an Event of Default exists under the Master
Indenture, in which event the earnings shall be retained in the Redemption Account.
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The Series 2023A Debt Service Fund shall be invested and reinvested by the Trustee as
directed by an Authorized City Representative in Permitted Investments.
Section 4.05. Series 2023A Construction Fund.
(a)There shall be deposited into the Series 2023A Construction Fund the
amounts as provided in Section 4.02(d) hereof, any amounts transferred from the Interest
Account of the Series 2023A Debt Service Fund representing Capitalized Interest and
earnings thereon as described in Section 4.04(a) hereof, and any earnings from the Series
2023A Costs of Issuance Account as described in Section 4.08(d) hereof.
(b)The City shall apply amounts on deposit in the Series 2023A Construction
Fund to pay the Costs of the Series 2023A Projects and will expend amounts on deposit in
the Series 2023A Construction Fund only in accordance with and subject to the limitations
set forth in the Tax Certificate. Amounts on deposit in the Series 2023A Construction Fund
shall not be used to pay Costs of Issuance. The City shall maintain records of all
expenditures made from the Series 2023A Construction Fund, which records shall include
(i) the name of each entity to which payment was made, (ii) the applicable amount paid to
such entity, and (iii) the applicable Series 2023A Projects for which such payment relates.
(c)Moneys held in the Series 2023A Construction Fund shall be invested and
reinvested in Permitted Investments as directed by an Authorized City Representative.
Earnings on the Series 2023A Construction Fund shall be retained in the Series 2023A
Construction Fund.
(d)The completion of the Series 2023A Projects shall be evidenced by the
filing with the Trustee of a certificate of an Authorized City Representative stating either
(i) the date of completion of the Series 2023A Projects and the amount, if any, required in
the opinion of such Authorized City Representative for the payment of any remaining part
of the Costs of the Series 2023A Projects or (ii) that all amounts in the Series 2023A
Construction Fund have been disbursed or expenses in respect thereof have been incurred.
Any amount remaining in the Series 2023A Construction Fund following the delivery of
such certificate, except for amounts required for the payment of any remaining part of the
Costs of the Series 2023A Projects, or upon the determination of the City not to proceed
with all or a portion of the Series 2023A Projects, may, at the determination of the City, be
applied to any other lawful purpose. As a condition to the disbursement of funds for a
purpose other than the financing of the Series 2023A Projects, an opinion of Bond Counsel
shall be delivered to the City and the Trustee that the purpose for which such funds are to
be used is a lawful purpose for which such proceeds may be used under the Act and that
such use shall not result in the inclusion of interest on any Series 2023A Bonds in gross
income of the recipient thereof for federal income tax purposes.
Section 4.06. Series 2023B Debt Service Fund. The Trustee shall make deposits into the
Series 2023B Debt Service Fund as follows:
(a)Interest Account. The Trustee shall deposit into the Interest Account the
amount as provided in Section 4.03(a) hereof and shall, thereafter, deposit into the Interest
15
4855-0634-7339.3
Account the amounts received from the City, as provided in the Master Indenture, to be
used to pay interest on the Series 2023B Bonds. The Trustee shall also deposit into the
Interest Account any other amounts deposited with the Trustee for deposit in the Interest
Account or transferred from other Funds and Accounts for deposit therein. All amounts
held at any time in the Interest Account shall be held on a priority basis for the ratable
security and payment of interest due on the Series 2023B Bonds in accordance with their
terms.
Earnings on amounts representing Capitalized Interest on deposit in the Interest
Account shall be retained in the Interest Account until the Series 2023B Projects are
completed. On [], [], any amounts representing Capitalized Interest, and any earnings
thereon, remaining on deposit in the Interest Account shall be transferred to the Series
2023B Construction Fund.
Earnings on all other amounts in the Interest Account (other than earnings on
amounts representing Capitalized Interest) shall be withdrawn and paid to the City on the
Business Day following an Interest Payment Date for deposit into the Revenue Account
unless an Event of Default exists under the Master Indenture, in which event the earnings
shall be retained in the Interest Account.
(b)Principal Account. The Trustee shall deposit into the Principal Account
the amounts received from the City, as provided in the Master Indenture, to be used to pay
the principal of the Series 2023B Bonds whether at maturity or by mandatory sinking fund
redemption as provided in Section 3.04 hereof. The Trustee shall also deposit into the
Principal Account any other amounts deposited with the Trustee for deposit into the
Principal Account or transferred from other Funds and Accounts for deposit therein. On
or about each July 15, earnings on amounts in the Principal Account shall be withdrawn
by the Trustee and paid to the City for deposit into the Revenue Account unless an Event
of Default exists under the Master Indenture, in which event the earnings shall be retained
in the Principal Account.
(c)Redemption Account. The Trustee shall deposit into the Redemption
Account amounts received from the City as provided in the Master Indenture to be used to
pay the redemption price of Series 2023B Bonds being redeemed as provided in
Section 3.03 hereof. The Trustee shall also deposit into the Redemption Account any other
amounts deposited with the Trustee for deposit into the Redemption Account or transferred
from other Funds and Accounts for deposit therein. Earnings on the Redemption Account
shall be withdrawn and paid to the City on the Business Day following a redemption date
for deposit into the Revenue Account unless an Event of Default exists under the Master
Indenture, in which event the earnings shall be retained in the Redemption Account.
The Series 2023B Debt Service Fund shall be invested and reinvested by the Trustee
directed by an Authorized City Representative in Permitted Investments.
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Section 4.07. Series 2023B Construction Fund.
(a)There shall be deposited into the Series 2023B Construction Fund the
amounts as provided in Section 4.03(d) hereof, any amounts transferred from the Interest
Account of the Series 2023B Debt Service Fund representing Capitalized Interest and
earnings thereon as described in Section 4.06(a) hereof, and any earnings from the Series
2023B Costs of Issuance Account as described in Section 4.08(e) hereof.
(b)The City shall apply amounts on deposit in the Series 2023B Construction
Fund to pay the Costs of the Series 2023B Projects and will expend amounts on deposit in
the Series 2023B Construction Fund only in accordance with and subject to the limitations
set forth in the Tax Certificate. Amounts on deposit in the Series 2023B Construction Fund
shall not be used to pay Costs of Issuance. The City shall maintain records of all
expenditures made from the Series 2023B Construction Fund, which records shall include
(i) the name of each entity to which payment was made, (ii) the applicable amount paid to
such entity, and (iii) the applicable Series 2023B Projects for which such payment relates.
(c)Moneys held in the Series 2023B Construction Fund shall be invested and
reinvested in Permitted Investments as directed by an Authorized City Representative.
Earnings on the Series 2023B Construction Fund shall be retained in the Series 2023B
Construction Fund.
(d)The completion of the Series 2023B Projects shall be evidenced by the filing
with the Trustee of a certificate of an Authorized City Representative stating either (i) the
date of completion of the Series 2023B Projects and the amount, if any, required in the
opinion of such Authorized City Representative for the payment of any remaining part of
the Costs of the Series 2023B Projects or (ii) that all amounts in the Series 2023B
Construction Fund have been disbursed or expenses in respect thereof have been incurred.
Any amount remaining in the Series 2023B Construction Fund following the delivery of
such certificate, except for amounts required for the payment of any remaining part of the
Costs of the Series 2023B Projects, or upon the determination of the City not to proceed
with all or a portion of the Series 2023B Projects, may, at the determination of the City, be
applied to any other lawful purpose. As a condition to the disbursement of funds for a
purpose other than the financing of the Series 2023B Projects, an opinion of Bond Counsel
shall be delivered to the City and the Trustee that the purpose for which such funds are to
be used is a lawful purpose for which such proceeds may be used under the Act and that
such use shall not result in the inclusion of interest on any Series 2023B Bonds in gross
income of the recipient thereof for federal income tax purposes.
Section 4.08. Series 2023 Costs of Issuance Fund.
(a)There shall be deposited into the respective Accounts within the Series 2023
Costs of Issuance Fund the amounts as provided in Sections 4.02(c) and 4.03(c) hereof.
(b)The City shall apply amounts on deposit in the Series 2023 Costs of
Issuance Fund to pay Costs of Issuance of the Series 2023 Bonds and will expend amounts
on deposit in the Series 2023 Costs of Issuance Fund only in accordance with and subject
17
4855-0634-7339.3
to the limitations set forth in the Tax Certificate. The City shall maintain records of all
expenditures made from the Series 2023 Costs of Issuance Fund, which records shall
include (i) the name of each entity to which payment was made, (ii) the applicable amount
paid to such entity, (iii) the Account in the Series 2023 Costs of Issuance Fund from which
such payment was made, and (iv) a description of the Costs of Issuance represented by
such payment.
(c)Moneys held in the Series 2023 Costs of Issuance Fund shall be invested
and reinvested in Permitted Investments as directed by an Authorized City Representative.
(d)Earnings on the Series 2023A Costs of Issuance Account shall be deposited
into the Series 2023A Construction Fund. Any amounts remaining in the Series 2023A
Costs of Issuance Account on [], 2024 shall be transferred to the Series 2023A
Construction Fund and the Series 2023A Costs of Issuance Account shall be closed.
(e)Earnings on the Series 2023B Costs of Issuance Account shall be deposited
into the Series 2023B Construction Fund. Any amounts remaining in the Series 2023B
Costs of Issuance Account on [], 2024 shall be transferred to the Series 2023B
Construction Fund and the Series 2023B Costs of Issuance Account shall be closed.
Section 4.09. Common Debt Service Reserve Fund. The City hereby elects to have the
Series 2023 Bonds participate in the Common Debt Service Reserve Fund established pursuant to
the Master Indenture. As provided in Sections 4.02(b) and 4.03(b) hereto, at the time of the sale
of the Series 2023 Bonds, a portion of the proceeds of the Series 2023 Bonds shall be deposited
into the Common Debt Service Reserve Fund so that such amount on deposit in the Common Debt
Service Reserve Fund will be equal to the Reserve Requirement for the Common Debt Service
Reserve Fund. At the time of issuance of the Series 2023 Bonds, the Reserve Requirement for the
Common Debt Service Reserve Fund shall be $[].
Section 4.10. Sources of Payment of the Series 2023 Bonds. The Series 2023 Bonds
shall be secured by and payable, on parity with all Outstanding Bonds, from the Net Revenues and
other security provided in the Granting Clauses of the Master Indenture and this Fourth
Supplemental Indenture and in accordance with the terms of the Master Indenture and this Fourth
Supplemental Indenture. The City may, but is not obligated to, provide for the payment of the
principal of and interest on the Series 2023 Bonds from any other source or from any other funds
of the Department.
Section 4.11. Perfection of Security Interest.
(a)The Master Indenture and this Fourth Supplemental Indenture create a valid
and binding pledge and assignment of and security interest in all of the Net Revenues
pledged under the Master Indenture and this Fourth Supplemental Indenture in favor of the
Trustee as security for payment of the Series 2023 Bonds, enforceable by the Trustee in
accordance with the terms thereof.
(b)Under the laws of the State, such pledge and assignment and security
interest is automatically perfected by Section 11-14-501, Utah Code Annotated 1953, as
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4855-0634-7339.3
amended, and is and shall have priority as against all parties having claims of any kind in
tort, contract, or otherwise hereafter imposed on the Net Revenues.
ARTICLE V
TAX COVENANTS
Section 5.01. Series 2023 Rebate Fund. The City hereby agrees that it will execute the
Tax Certificate and will, pursuant to the provisions of the Tax Certificate, cause the Series 2023
Rebate Fund to be established at such times, if any, as provided for in the Tax Certificate, which
fund will be funded if so required under the Tax Certificate and amounts in such Series 2023
Rebate Fund shall be held and disbursed in accordance with the Tax Certificate.
Section 5.02. Preservation of Tax Exemption.
(a)The City shall comply with the covenants and agreements set forth in the
Tax Certificate.
(b)The City shall not use or permit the use of any proceeds of Series 2023
Bonds or any other funds of the City held by the Trustee under the Master Indenture and
this Fourth Supplemental Indenture, directly or indirectly, to acquire any securities or
obligations, and shall not use or permit the use of any amounts received by the City or the
Trustee with respect to the Series 2023 Bonds in any manner, and shall not take or permit
to be taken any other action or actions, which would cause any Series 2023 Bond to be
“federally guaranteed” within the meaning of Section 149(b) of the Code or an “arbitrage
bond” within the meaning of Section 148 of the Code and applicable regulations
promulgated from time to time thereunder and under Section 103(c) of the Code. The City
shall observe and not violate the requirements of Section 148 of the Code and any such
applicable regulations. In the event the City is of the opinion that it is necessary to restrict
or limit the yield on the investment of money held by the Trustee, or to use such money in
certain manners, in order to avoid the Series 2023 Bonds being considered “arbitrage
bonds” within the meaning of Section 148 of the Code and the regulations thereunder as
such may be applicable to the Series 2023 Bonds at such time, the City shall issue to the
Trustee a certificate to such effect together with appropriate instructions, in which event
the Trustee shall take such action as it is directed to take to use such money in accordance
with such certificate and instructions, irrespective of whether the Trustee shares such
opinion.
(c)The City shall at all times do and perform all acts and things permitted by
law and this Fourth Supplemental Indenture which are necessary or desirable in order to
assure that interest paid on the Series 2023 Bonds will not be included in gross income for
federal income tax purposes and shall take no action that would result in such interest being
included in gross income for federal income tax purposes (other than interest paid to
holders of the Series 2023A Bonds that are a “substantial user” of the facilities financed or
refinanced with the Series 2023A Bonds or a “related person” within the meaning of
Section 147(a) of the Code) and shall take no action that would result in such interest being
included in gross income for federal income tax purposes (other than interest paid to
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4855-0634-7339.3
holders of the Series 2023A Bonds that are a “substantial user” of the facilities financed or
refinanced with the Series 2023A Bonds or a “related person” within the meaning of
Section 147(a) of the Code).
ARTICLE VI
MISCELLANEOUS
Section 6.01. Parties in Interest. Except as otherwise specifically provided herein,
nothing in this Fourth Supplemental Indenture expressed or implied is intended or shall be
construed to confer upon any person, firm or corporation other than the City, the Trustee, the
Paying Agent and the Holders of the Series 2023 Bonds any right, remedy or claim under or by
reason of this Fourth Supplemental Indenture or any covenant, condition or stipulation hereof, and
all covenants, stipulations, promises and agreements in this Fourth Supplemental Indenture
contained by and on behalf of the City shall be for the sole and exclusive benefit of the City, the
Trustee and the Holders of the Series 2023 Bonds.
Section 6.02. Continuing Disclosure. The City hereby covenants and agrees that it will
comply with and carry out all of the provisions of the Continuing Disclosure Agreement.
Notwithstanding any other provision of this Fourth Supplemental Indenture, failure of the City to
comply with its obligations set forth in the Continuing Disclosure Agreement shall not constitute
an Event of Default (as specified in Article VIII of the Master Indenture); provided, however, that
any participating underwriter for the Series 2023 Bonds or any Holder or beneficial owner of the
Series 2023 Bonds may take such actions as may be necessary and appropriate to compel
performance by the City of its obligations under this Section, including seeking mandate or specific
performance by court order.
Section 6.03. Severability. In case any one or more of the provisions of this Fourth
Supplemental Indenture, or of any Series 2023 Bonds issued hereunder shall, for any reason, be
held to be illegal or invalid, such illegality or invalidity shall not affect any other provisions of this
Fourth Supplemental Indenture or of the Series 2023 Bonds, and this Fourth Supplemental
Indenture and any Series 2023 Bonds issued hereunder shall be construed and enforced as if such
illegal or invalid provisions had not been contained herein or therein.
Section 6.04. No Personal Liability of Mayor, City Council Members or City
Officials; Limited Liability of City to Bondholders. No covenant or agreement contained in the
Series 2023 Bonds or in this Fourth Supplemental Indenture shall be deemed to be the covenant
or agreement of any present or future Mayor, Council member, official, officer, agent or employee
of the City, the Department of Airports or the Airport System, in their individual capacity, and
neither the members of the Council, the officers and employees of the City, nor any person
executing the Series 2023 Bonds shall be liable personally on the Series 2023 Bonds or be subject
to any personal liability or accountability by reason of the issuance thereof.
Section 6.05. Execution of Instruments; Proof of Ownership. Any request, direction,
consent or other instrument in writing required or permitted by this Fourth Supplemental Indenture
to be signed or executed by the Holders of the Series 2023 Bonds or on their behalf by an
attorney-in-fact may be in any number of concurrent instruments of similar tenor and may be
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4855-0634-7339.3
signed or executed by such Holders in person or by an agent or attorney-in-fact appointed by an
instrument in writing or as provided in the Series 2023 Bonds. Proof of the execution of any such
instrument and of the ownership of Series 2023 Bonds shall be sufficient for any purpose of this
Fourth Supplemental Indenture and shall be conclusive in favor of the Trustee with regard to any
action taken by it under such instrument if made in the following manner:
(a)The fact and date of the execution by any person of any such instrument
may be proved by the certificate of any officer in any jurisdiction who, by the laws thereof,
has power to take acknowledgments within such jurisdiction, to the effect that the person
signing such instrument acknowledged before him the execution thereof, or by an affidavit
of a witness to such execution.
(b)The ownership of Series 2023 Bonds shall be proved by the registration
books kept under the provisions of Section 2.04 of the Master Indenture.
Nothing contained in this Section 6.05 shall be construed as limiting the Trustee to such
proof. The Trustee may accept any other evidence of matters herein stated which it may deem
sufficient. Any request, consent of, or assignment by any Holder of the Series 2023 Bonds shall
bind every future Holder of the same Series 2023 Bonds or any Series 2023 Bonds issued in lieu
thereof in respect of anything done by the Trustee or the City in pursuance of such request or
consent.
Section 6.06. System of Registration. The Master Indenture and this Fourth
Supplemental Indenture shall constitute a system of registration within the meaning and for all
purposes of the Registered Public Obligations Act, Chapter 7 of Title 15, Utah Code Annotated
1953, as amended.
Section 6.07. Plan of Financing. The Master Indenture and this Fourth Supplemental
Indenture shall constitute a plan of financing within the meaning and for all purposes of the Act.
Section 6.08. Governing Law. The laws of the State shall govern the construction and
enforcement of this Fourth Supplemental Indenture and of all of the Series 2023 Bonds issued
hereunder.
Section 6.09. Notices. Except as otherwise provided in this Fourth Supplemental
Indenture, all notices, certificates, requests, requisitions or other communications by the City, the
Trustee, the Paying Agent or the Registrar pursuant to this Fourth Supplemental Indenture shall be
in writing and shall be sufficiently given and shall be deemed given when mailed by registered
mail, postage prepaid, addressed as follows: if to the City, to the Salt Lake City Department of
Airports, Attention: Chief Financial Officer, by delivery or by mail, P.O. Box 145550, Salt Lake
City, Utah, 84114-5550, with a copy to the City Attorney at the same address; if to the Trustee,
the Paying Agent and the Registrar to Wilmington Trust, National Association 650 Town Center
Drive, Suite 600, Costa Mesa, California 92626, Attention: Corporate Trust Department. Any of
the foregoing may, by notice given hereunder to each of the others, designate any further or
different addresses to which subsequent notices, certificates, requests or other communications
shall be sent hereunder.
21
4855-0634-7339.3
Section 6.10. Holidays. If the date for making any payment or the last date for
performance of any act or the exercising of any right, as provided in this Fourth Supplemental
Indenture, shall not be a Business Day, such payment may, unless otherwise provided in this
Fourth Supplemental Indenture, be made or act performed or right exercised on the next
succeeding Business Day with the same force and effect as if done on the nominal date provided
in this Indenture; provided that no interest shall accrue between the scheduled date of payment and
the actual date of payment.
Section 6.11. Counterparts. This Fourth Supplemental Indenture may be signed in
several counterparts. Each will be an original, but all of them together constitute the same
instrument.
Pursuant to the Uniform Electronic Transactions Act, Title 46, Chapter 4 of the Utah Code
Annotated 1953, as amended, the City and the Trustee hereby agree and consent to the use of
electronic signatures and electronic records in connection with the Series 2023 Bonds; provided,
however, that such consent and agreement only permits the use of, but does not require, electronic
signatures or electronic records, including on documents delivered in counterparts.
Section 6.12. Representation Regarding Ethical Standards for City Officers and
Employees and Former City Officers and Employees. The Trustee represents that it has not:
(a) provided an illegal gift or payoff to a City officer or employee or former City officer or
employee, or his or her relative or business entity; (b) retained any person to solicit or secure the
Trustee’s appointment under this Fourth Supplemental Indenture upon an agreement or
understanding for a commission, percentage, brokerage or contingent fee, other than bona fide
employees or bona fide commercial selling agencies for the purpose of securing business;
(c) knowingly breached any of the ethical standards set forth in the City’s conflict of interest
ordinance, Chapter 2.44 of the City Code; or (d) knowingly influenced, and hereby promises that
it will not knowingly influence, a City officer or employee or former City officer or employee to
breach any of the ethical standards set forth in the City’s conflict of interest ordinance,
Chapter 2.44 of the City Code.
[Remainder of page intentionally left blank; signature page follows]
S-1
4855-0634-7339.3
IN WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental Trust
Indenture to be duly executed, all as of the date first above written.
SALT LAKE CITY, UTAH
By
Mayor
Attest:
By
City Recorder
[SEAL]
Approved as to form:
By
Senior City Attorney
WILMINGTON TRUST, NATIONAL
ASSOCIATION, as Trustee
By
Authorized Representative
[Signature page to Fourth Supplemental Trust Indenture]
4855-0634-7339.3
EXHIBIT A
FORM OF SERIES 2023 BOND
UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AS DEFINED IN THE HEREINAFTER DEFINED INDENTURE) TO THE TRUSTEE (AS
HEREINAFTER DEFINED) FOR REGISTRATION OF, TRANSFER, EXCHANGE, OR
PAYMENT, AND ANY SERIES 2023[A/B] BOND ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
REGISTERED REGISTERED
No. R-___ Principal Amount: $___________
UNITED STATES OF AMERICA
STATE OF UTAH
SALT LAKE CITY, UTAH
AIRPORT REVENUE BOND
SERIES 2023[A/B]
[(AMT)/(Non-AMT)]
Interest Rate Maturity Date Original Dated Date CUSIP
____% July 1, 20__ [], 2023 795576___
Registered Owner:
Principal Amount:
KNOW ALL MEN BY THESE PRESENTS that Salt Lake City, Utah (the “City”), a duly
organized and existing municipal corporation and political subdivision of the State of Utah (the
“State”), acknowledges itself indebted and for value received hereby promises to pay, in the
manner and from the source hereinafter provided, to the Registered Owner identified above, or
registered assigns, on the Maturity Date identified above, unless this Bond shall have been called
for redemption and payment of the redemption price shall have been duly made or provided for,
upon presentation and surrender hereof, the principal amount identified above, and to pay, in the
manner and from the source hereinafter provided, to the Registered Owner hereof interest on the
balance of said principal amount from time to time remaining unpaid from the Interest Payment
Date next preceding the date of registration and authentication of this Bond, unless this Bond is
registered and authenticated as of an Interest Payment Date, in which event this Bond shall bear
interest from such Interest Payment Date, or unless this Bond is registered and authenticated prior
A-2
4855-0634-7339.3
to the first Interest Payment Date, in which event this Bond shall bear interest from the Original
Dated Date specified above, or unless, as shown by the records of the hereinafter referred to
Trustee, interest on the hereinafter referred to Series 2023[A/B] Bonds shall be in default, in which
event this Bond shall bear interest from the date to which interest has been paid in full, at the rate
per annum specified above (calculated on the basis of a year of 360 days comprised of twelve 30-
day months), payable in each year on January 1 and July 1, beginning [January] 1, 2024, until
payment in full of such principal amount, except as the provisions hereinafter set forth with respect
to redemption prior to maturity may become applicable hereto. This Bond, as to principal and
redemption price when due, will be payable at the principal corporate trust operations office of
Wilmington Trust, National Association, as paying agent of the City, or its successor as such
paying agent, in any coin or currency of the United States of America which at the time of payment
is legal tender for the payment of public and private debts; provided, however, that payment of the
interest hereon shall be made to the Registered Owner hereof and shall be paid by check or draft
mailed to the person who is the Registered Owner as of the applicable Record Date at his address
as it appears on the registration books of the Trustee or at such other address as is furnished in
writing by such registered owner to the Trustee prior to the Record Date. Notwithstanding the
previous sentence, if this Bond is a Book-Entry Bond, as defined in the hereinafter defined Master
Indenture, principal, redemption price and interest will be paid as provided in Section 2.06 of the
Master Indenture. The Record Date for a January 1 payment is the preceding December 15, and
the Record Date for a July 1 payment is the preceding June 15. All capitalized terms not defined
herein shall have the meanings set forth in the hereinafter defined Indenture.
THIS BOND IS A LIMITED OBLIGATION OF THE CITY, PAYABLE SOLELY
FROM AND SECURED BY A PLEDGE OF NET REVENUES DERIVED BY THE CITY
FROM THE OPERATIONS OF THE AIRPORT SYSTEM AND CERTAIN FUNDS AND
ACCOUNTS. NONE OF THE PROPERTIES OF THE AIRPORT SYSTEM ARE SUBJECT TO
ANY MORTGAGE OR OTHER LIEN FOR THE BENEFIT OF THE OWNERS OF THE
BONDS, AND NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF
THE CITY, THE STATE OR ANY POLITICAL SUBDIVISION OR AGENCY OF THE STATE
IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR
INTEREST ON THE BONDS.
This Bond and the issue of Bonds of which it is a part are issued in conformity with and
after full compliance with the Constitution of the State of Utah and pursuant to the provisions of
the Local Government Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended
(the “Act”), and all other laws applicable thereto.
This Bond is a limited obligation of the City and is one of the Airport Revenue Bonds of
the City (the “Bonds”) issued under and by virtue of the Act and under and pursuant to a Master
Trust Indenture, dated as of February 1, 2017 (the “Master Indenture”), by and between the City
and Wilmington Trust, National Association, as trustee (said trustee and any successor thereto
under the Master Indenture being herein referred to as the “Trustee”), and as supplemented by a
Fourth Supplemental Trust Indenture, dated as of [] 1, 2023 (the “Fourth Supplemental
Indenture,” and together with the Master Indenture, the “Indenture”), by and between the City and
the Trustee, for the purpose of financing or refinancing costs of certain capital improvements to
the Salt Lake City International Airport, funding a debt service reserve fund and paying all
expenses incident thereto and to the issuance of the Series 2023[A/B] Bonds described below.
A-3
4855-0634-7339.3
As provided in the Master Indenture, Bonds may be issued from time to time in one or
more series in various principal amounts, may mature at different times, may bear interest at
different rates, and may otherwise vary as provided in the Master Indenture, and the aggregate
principal amount of Bonds which may be issued is not limited. All Bonds issued and to be issued
under the Master Indenture are and will be equally and ratably secured by the pledge and covenants
made therein, except as otherwise expressly provided or permitted in or pursuant to the Master
Indenture.
This Bond is one of a Series of Bonds designated as “Airport Revenue Bonds, Series
2023[A/B] [(AMT)/(Non-AMT)]” (the “Series 2023[A/B] Bonds”), issued in the aggregate
principal amount of $[[PARA]/[PARB]], dated as of the Original Dated Date identified above, and
duly issued under and by virtue of the Act and under and pursuant to the Indenture. Copies of the
Indenture are on file at the office of the City Recorder in Salt Lake City, Utah, and at the principal
corporate trust office of the Trustee, in Costa Mesa, California, and reference to the Indenture and
the Act is made for a description of the pledge and covenants securing the Series 2023[A/B] Bonds,
the nature, manner and extent of enforcement of such pledge and covenants, the terms and
conditions upon which the Series 2023[A/B] Bonds are issued and additional Bonds may be issued
thereunder, and a statement of the rights, duties, immunities and obligations of the City and of the
Trustee. Such pledge and other obligations of the City under the Indenture may be discharged at
or prior to the maturity or redemption of the Series 2023[A/B] Bonds upon the making of provision
for the payment thereof on the terms and conditions set forth in the Indenture.
Simultaneously with the issuance of the Series 2023[A/B] Bonds, the City is issuing
$[[PARA]/[PARB]] of its Airport Revenue Bonds, Series 2023[A/B] [(AMT)/(Non-AMT)] (the
“Series 2023[A/B] Bonds”) under the Indenture. Additionally, the City has previously issued
(a) $826,210,000 aggregate principal amount of its Airport Revenue Bonds, Series 2017A (AMT)
(the “Series 2017A Bonds”), (b) $173,790,000 aggregate principal amount of its Airport Revenue
Bonds, Series 2017B (Non-AMT) (the “Series 2017B Bonds,” and together with the Series 2017A
Bonds, the “Series 2017 Bonds”), (c) $753,855,000 aggregate principal amount of its Airport
Revenue Bonds, Series 2018A (AMT) (the “Series 2018A Bonds”), (d) $96,695,000 aggregate
principal amount of its Airport Revenue Bonds, Series 2018B (Non-AMT) (the “Series 2018B
Bonds,” and together with the Series 2018A Bonds, the “Series 2018 Bonds”), (e) $776,925,000
aggregate principal amount of its Airport Revenue Bonds, Series 2021A (AMT) (the “Series
2021A Bonds”), and (f) $127,645,000 aggregate principal amount of its Airport Revenue Bonds,
Series 2021B (Non-AMT) (the “Series 2021B Bonds,” and together with the Series 2021A Bonds,
the “Series 2021 Bonds”), under the Master Indenture. The Series 2023 Bonds, the Series 2017
Bonds, the Series 2018 Bonds and the Series 2021 Bonds are equally and ratably secured under
the Master Indenture. The Master Indenture also provides for the incurrence of additional debt,
including the issuance of additional bonds, to be secured under the Master Indenture equally and
ratably with the Series 2023[A/B] Bonds, the Series 2023[A/B] Bonds, the Series 2017 Bonds, the
Series 2018 Bonds and the Series 2021 Bonds.
The Series 2023[A/B] Bonds maturing on or before July 1, 20[] are not subject to optional
redemption prior to maturity. The Series 2023[A/B] Bonds maturing on or after July 1, 20[] are
redeemable at the option of the City on or after July 1, 20[], in whole or in part at any time, from
any moneys that may be provided for such purpose and at a redemption price equal to 100% of the
A-4
4855-0634-7339.3
principal amount of the Series 2023[A/B] Bonds to be redeemed plus accrued interest to the date
fixed for redemption, without premium.
[The Series 2023A Bonds with a stated Maturity Date of July 1, 20[] will be subject to
mandatory sinking fund redemption on July 1, 20[] and each July 1, thereafter, to and including
July 1, 20[] in accordance with the terms of a mandatory sinking fund redemption schedule set
forth in the Fourth Supplemental Indenture.]
[The Series 2023A Bonds with a stated Maturity Date of July 1, 20[] will be subject to
mandatory sinking fund redemption on July 1, 20[] and each July 1, thereafter, to and including
July 1, 20[] in accordance with the terms of a mandatory sinking fund redemption schedule set
forth in the Fourth Supplemental Indenture.]
[The Series 2023B Bonds with a stated Maturity Date of July 1, 20[] will be subject to
mandatory sinking fund redemption on July 1, 20[] and each July 1, thereafter, to and including
July 1, 20[] in accordance with the terms of a mandatory sinking fund redemption schedule set
forth in the Fourth Supplemental Indenture.]
[The Series 2023B Bonds with a stated Maturity Date of July 1, 20[] will be subject to
mandatory sinking fund redemption on July 1, 20[] and each July 1, thereafter, to and including
July 1, 20[] in accordance with the terms of a mandatory sinking fund redemption schedule set
forth in the Fourth Supplemental Indenture.]
The Series 2023[A/B] Bonds are available in Authorized Denominations of $5,000 of
original principal amount and integral multiples thereof. A holder may transfer or exchange Series
2023[A/B] Bonds in accordance with the Indenture. The Trustee may require a holder, among
other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and
fees required by law or permitted by the Master Indenture.
The Registered Owner of this Bond shall be treated as the owner of it for all purposes.
If money for the payment of principal or interest remains unclaimed for two years, the
Trustee will pay the money to or for the account of the City. After that, holders entitled to the
money must look only to the City and not to the Trustee for payment.
If the City at any time deposits with the Trustee money or Government Obligations as
described in the Master Indenture sufficient to pay at maturity principal of and interest on the
Outstanding Series 2023[A/B] Bonds, and if the City also pays all other sums then payable by the
City under the Master Indenture, the Master Indenture will be discharged. After discharge,
Bondholders must look only to the deposited money and securities for payment. If the City at any
time deposits with the Trustee money or Government Obligations as described in the Master
Indenture sufficient to pay at maturity, principal of and interest on all or any portion of the
Outstanding Series 2023[A/B] Bonds, such Series 2023[A/B] Bonds, with respect to which the
deposit was made, shall no longer be deemed to be Outstanding and shall no longer be secured by
the Master Indenture except to the extent of the funds set aside therefor.
A-5
4855-0634-7339.3
The Master Indenture, the Fourth Supplemental Indenture and the Series 2023[A/B] Bonds
may be amended or supplemented, and any past default or compliance with any provision may be
waived, as provided in the Master Indenture. Any consent given by the owner of this Bond shall
bind any subsequent owner of this Bond or any Bond delivered in substitution for this Bond.
The Master Indenture provides that the occurrences of certain events constitute Events of
Default. If an Event of Default occurs and is continuing, the Trustee may exercise the remedies
set forth in the Master Indenture and the Fourth Supplemental Indenture. Under no circumstances
does an Event of Default grant any right to accelerate payment of this Bond. An Event of Default
and its consequences may be waived as provided in the Master Indenture and the Fourth
Supplemental Indenture. Bondholders may not enforce the Indenture or this Bond except as
provided in the Master Indenture and the Fourth Supplemental Indenture. The Trustee may refuse
to enforce the Indenture or this Bond unless it receives indemnity satisfactory to it. Subject to
certain limitations, holders of a majority of the principal amount of the Series 2023[A/B] Bonds
(determined in accordance with the terms of the Master Indenture and the Fourth Supplemental
Indenture) may direct the Trustee in its exercise of any trust or power.
No member, director, officer or employee of the City shall have any personal liability for
any obligations of the City under this Bond, the Master Indenture or the Fourth Supplemental
Indenture or for any claim based on such obligations or their creation or be subject to any personal
liability or accountability by reason of the issuance thereof. Each Bondholder, by accepting this
Bond, waives and releases all such liability. The waiver and release are part of the consideration
for the issuance of this Bond.
It is hereby certified and recited that all conditions, acts and things required by the
Constitution or statutes of the State of Utah or by the Act or the Indenture to exist, to have happened
or to have been performed precedent to or in the issuance of this Bond exist, have happened and
have been performed and that the issue of Bonds, together with all other indebtedness of the City,
is within every debt and other limit prescribed by said Constitution and statutes.
This Bond shall not be valid until the Certificate of Authentication hereon shall have been
signed by the Trustee.
A-6
4855-0634-7339.3
IN WITNESS WHEREOF, SALT LAKE CITY, UTAH, has caused this Bond to be signed
in its name and on its behalf by the signature of its Mayor, and its corporate seal to be impressed
or imprinted hereon, and attested and countersigned by the signature of its City Recorder, all as of
the Original Dated Date specified above.
SALT LAKE CITY, UTAH
By
Mayor
Attest and Countersign:
By
City Recorder
[SEAL]
A-7
4855-0634-7339.3
CERTIFICATE OF AUTHENTICATION
This Bond is one of the Bonds described in the within mentioned Indenture and is one of
the Airport Revenue Bonds, Series 2023[A/B][(AMT/Non-AMT)], of Salt Lake City, Utah.
Date of registration and authentication: _____________
WILMINGTON TRUST, NATIONAL
ASSOCIATION, as Trustee
By
Authorized Representative
A-8
4855-0634-7339.3
FORM OF ASSIGNMENT
I or we assign and transfer to
Insert social security or other
identifying number of assignee
[ ]
[ ]
(Print or type name, address and zip code of assignee) this Bond and irrevocably appoint
agent to transfer this Bond on the books of the City. The agent may
substitute another to act for him.
Dated:
Signed
(Sign exactly as name appears on the face of this Bond)
Signature guaranteed:
(NOTE: Signature must be guaranteed by an Eligible
Guarantor Institution.)
4855-0634-7339.3
EXHIBIT B
DEBT SERVICE SCHEDULES
$[PARA]
Salt Lake City, Utah
Airport Revenue Bonds
Series 2023A
(AMT)
Date Principal Interest Total
B-2
4855-0634-7339.3
$[PARB]
Salt Lake City, Utah
Airport Revenue Bonds
Series 2023B
(Non-AMT)
Date Principal Interest Total
4855-0634-7339.3
EXHIBIT C-1
SERIES 2023A PROJECTS
4855-0634-7339.3
EXHIBIT C-2
SERIES 2023B PROJECTS
4854-1788-4237
EXHIBIT C
[ATTACH FORM OF PRELIMINARY OFFICIAL STATEMENT]
KKR Draft 4/21/2023
i
PRELIMINARY OFFICIAL STATEMENT DATED JULY __, 2023
NEW ISSUE-BOOK-ENTRY ONLY Ratings: See “RATINGS” herein.
In the opinion of Kutak Rock LLP, Bond Counsel to the City, under existing laws, regulations, rulings and judicial decisions and
assuming the accuracy of certain representations and continuing compliance with certain covenants, interest on the Series 2023 Bonds is
excluded from gross income for federal income tax purposes, except for interest on any Series 2023A Bond for any period during which such
Series 2023A Bond is held by a “substantial user” of the facilities financed by the Series 2023A Bonds, or a “related person” within the
meaning of Section 147(a) of the Internal Revenue Code of 1986, as amended. Bond Counsel is further of the opinion that (a) interest on the
Series 2023A Bonds is a specific preference item for purposes of the federal alternative minimum tax imposed on individuals, and (b) interest
on the Series 2023B Bonds is not a specific preference item for purposes of the federal alternative minimum tax on individuals. For tax years
beginning after December 31, 2022, interest on the Series 2023 Bonds may affect the federal alternative minimum tax imposed o n certain
corporations. Bond Counsel is further of the opinion that, under the existing laws of the State of Utah, a s presently enacted and construed,
interest on the Series 2023 Bonds is exempt from State of Utah individual income taxes. See “TAX MATTERS” herein.
$XXX,XXX,000*
SALT LAKE CITY, UTAH
$XXX,XXX,000* Airport Revenue Bonds, Series 2023A (AMT)
$XX,XXX,000* Airport Revenue Bonds, Series 2023B (Non-AMT)
SALT LAKE CITY INTERNATIONAL AIRPORT
Dated: Date of Delivery Due: July 1, as shown on the inside cover page hereof
Salt Lake City, Utah (the “City”) is issuing its Airport Revenue Bonds, Series 2023A (AMT) (the “Series 2023A Bonds”) and its Airport
Revenue Bonds, Series 2023B (Non-AMT) (the “Series 2023B Bonds” and, with the Series 2023A Bonds, the “Series 2023 Bonds”) to finance
portions of the New SLC, as described herein, and related costs of the City’s Department of Airports (the “Department”) at Salt Lake City
International Airport (the “Airport”). The Series 2023 Bonds will be issued pursuant to a Master Trust Indenture (the “Master Indenture”)
and a Fourth Supplemental Trust Indenture (the “Fourth Supplemental Indenture,” and, with the Master Indenture, the “Indenture”), each by
and between the City and Wilmington Trust, National Association, as trustee (the “Trustee”). The Series 2023 Bonds are limited obligations
of the City payable solely from and secured by a pledge of (a) Net Revenues, (b) certain funds and accounts held by the Trust ee under the
Indenture, and (c) other amounts payable under the Indenture, all as defined herein. The Series 2023 Bonds will be secured by a pledge of
Net Revenues on parity with the City’s Airport Revenue Bonds Series 2017A, Series 2017B, Series 2018A, Series 2018B, Series 2021A and
2021B (collectively, the “Existing Bonds”), which are outstanding as of July 2, 2023, in the aggregate principal amount of $2,706,245,000.
None of the properties of the Airport System, as defined herein, are subject to any mortgage or other lien for the benefit of the owners of the
Series 2023 Bonds, and neither the full faith and credit nor the taxing power of the City, the State of Utah (the “State”) or any political
subdivision or agency of the State is pledged to the payment of the principal of or interest on the Series 2023 Bonds.
The Series 2023 Bonds will be issued as fully registered bonds and, when issued, will be registered in the name of Cede & Co., as
registered owner and nominee for The Depository Trust Company, New York, New York (“DTC”). Purchasers will acquire beneficial
ownership interests in the Series 2023 Bonds in denominations of $5,000 or integral multiples thereof and will not receive physical delivery
of bond certificates. So long as Cede & Co. is the registered owner of the Series 2023 Bonds, principal of, premium if any, and interest on
the Series 2023 Bonds will be payable by the Trustee to Cede & Co., as nominee for DTC. See “APPENDIX E – Book-Entry Only System”
herein.
The Series 2023 Bonds will bear interest from their date of original delivery, payable each January 1 and July 1, commencing on January
1, 2024.
The Series 2023 Bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described herein.
See the inside cover page hereof for maturities, principal amounts, interest rates, yields and prices of the Series 2023 Bonds.
This cover page contains information for quick reference only. It is not a summary of this issue. Investors must read this entire Official
Statement to obtain information essential to the making of an informed investment decision.
The Series 2023 Bonds are offered when, as and if issued by the City and received by the Underwriters, subject to the receipt of an
unqualified approving opinion as to validity of Kutak Rock LLP, Denver, Colorado, Bond Counsel to the City, and certain other conditions.
Certain legal matters will be passed upon for the City by the City Attorney, Katherine N. Lewis, and Disclosure Counsel to the City, Kaplan
Kirsch & Rockwell LLP, Boston, Massachusetts, and for the Underwriters by their counsel, Gilmore & Bell, P.C., Salt Lake City, Utah. PFM
Financial Advisors LLC, San Francisco, California, serves as Municipal Advisor to the City. Delivery of the Series 2023 Bonds to DTC or
its custodial agent is expected in New York, New York on or about August __, 2023.
BofA Securities J.P. Morgan
____________________
Barclays Goldman Sachs & Co.
LLC
Ramirez & Co.,
Inc.
Siebert Williams Shank
& Co., LLC
Wells Fargo
Securities
July __, 2023
* Preliminary, subject to change
.
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KKR Draft 4/21/2023
ii
SALT LAKE CITY, UTAH
$XXX,XXX,000*
Airport Revenue Bonds, Series 2023A (AMT)
Due
(July 1)
Principal
Amount
Interest
Rate
Yield
Price
CUSIP†
795576
795576
795576
795576
795576
795576
795576
795576
795576
795576
795576
795576
795576
795576
795576
$____________ ____% Term Bonds due July 1, 20__; Yield ____%; Price _______ CUSIP† 795576___
$___________ ____% Term Bonds due July 1, 20__; Yield ____%; Price________ CUSIP† 795576___
$XX,XXX,000*
Airport Revenue Bonds, Series 2023B (Non-AMT)
Due
(July 1)
Principal
Amount
Interest
Rate
Yield
Price
CUSIP†
795576
795576
795576
795576
795576
795576
795576
795576
795576
795576
795576
795576
795576
$____________ ____% Term Bonds due July 1, 20__; Yield ____%; Price _______ CUSIP† 795576___
$___________ ____% Term Bonds due July 1, 20__; Yield ____%; Price________ CUSIP† 795576___
† Copyright, American Bankers Association. CUSIP data herein are provided by CUSIP Global Services, managed on behalf of
the American Bankers Association by FactSet Research Systems. The CUSIP numbers listed above are being provided solely for
the convenience of Bondholders only at the time of issuance of the Series 2023 Bonds and neither the City nor the Underwriters
make any representation with respect to such numbers or undertake any responsibility for their accuracy now or at any time in the
future.
* Preliminary, subject to change
KKR Draft 4/21/2023
iii
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KKR Draft 4/21/2023
iv
SALT LAKE CITY, UTAH
CITY COUNCIL
Darin Mano ............................................................................................................................................... Council Chair
Victoria Petro-Eschler ...................................................................................................................... Council Vice Chair
Dan Dugan ............................................................................................................................................ Council Member
Amy Fowler .......................................................................................................................................... Council Member
Alejandro Puy ....................................................................................................................................... Council Member
Ana Valdemoros ................................................................................................................................... Council Member
Chris Wharton ...................................................................................................................................... Council Member
CITY ADMINISTRATION
Erin J. Mendenhall ................................................................................................................................................ Mayor
Rachel Otto ................................................................................................................................................ Chief of Staff
Katherine Lewis ......................................................................................................................................... City Attorney
Cindy Lou Trishman ................................................................................................................................. City Recorder
Marina Scott ............................................................................................................................................. City Treasurer
AIRPORT ADVISORY BOARD
Theresa Foxley ....................................................................................................................................................... Chair
John Bradshaw ................................................................................................................................................Vice Chair
Jess Bird............................................................................................................................................................. Member
Roger Boyer ....................................................................................................................................................... Member
Arlyn Bradshaw ................................................................................................................................................. Member
Dirk Burton ........................................................................................................................................................ Member
Tye Hoffman ..................................................................................................................................................... Member
Hoang Nguyen ................................................................................................................................................... Member
Victoria Petro-Eschler ....................................................................................................................................... Member
Steve Price ......................................................................................................................................................... Member
DEPARTMENT OF AIRPORTS
Bill Wyatt .......................................................................................................................................... Executive Director
Treber Anderson .......................................................................................................................... Director of Operations
Shane Andreasen ........................................................................ Director of Administration and Commercial Services
Brian Butler ................................................................................................................................ Chief Financial Officer
Edwin M. Cherry ................................................................................................... Director of Information Technology
Eddie R. Clayson ...................................................................................................................... Director of Maintenance
Brady Fredrickson ........................................................................................... Director of Planning and Environmental
Medardo Gomez ............................................................ Director of Operational Readiness, Activation, and Transition
Peter L. Higgins ......................................................................................................................... Chief Operating Officer
Melyssa Trnavskis .............................................................. Director of Airport Design and Construction Management
Nancy Volmer ............................................................................................ Director of Communication and Marketing
BOND COUNSEL
Kutak Rock LLP
Denver, Colorado
DISCLOSURE COUNSEL
Kaplan Kirsch & Rockwell LLP
Boston, Massachusetts
MUNICIPAL ADVISOR
PFM Financial Advisors LLC
San Francisco, California
INDEPENDENT AUDITORS
Eide Bailly LLP
Salt Lake City, Utah
AIRPORT CONSULTANT
Landrum & Brown, Inc.,
Cincinnati, Ohio
in association with Airmac LLC
TRUSTEE
Wilmington Trust, National Association
Los Angeles, California
KKR Draft 4/21/2023
v
The information contained in this Official Statement has been furnished by the City, DTC and other sources
that are believed to be reliable. No dealer, broker, salesperson or any other person has been authorized by the City or
the Underwriters to give any information or to make any representations other than those contained i n this Official
Statement in connection with the offering contained herein, and, if given or made, such information or representations
must not be relied upon as having been authorized by the City or the Underwriters.
This Official Statement does not constitute an offer to sell or solicitation of an offer to buy, nor shall there
be any sale of the Series 2023 Bonds by any person in any jurisdiction in which it is unlawful for such person to make
such offer, solicitation or sale. The information and expressions of opinion herein are subject to change without notice,
and neither delivery of this Official Statement nor any sale made thereafter shall under any circumstances create any
implication that there has been no change in the affairs of the City or in any other information contained herein, since
the date of this Official Statement.
The Underwriters have provided the following sentence for inclusion in this Official Statement. The
Underwriters have reviewed the information in this Official Statement in accordance with, and as part of, their
responsibilities to investors under the federal securities laws as applied to the facts and circumstances of this
transaction, but the Underwriters do not guarantee the accuracy or completeness of such information.
The Series 2023 Bonds have not been registered under the Securities Act of 1933, as amended, in reliance
upon exemptions contained in such act. Any registration or qualification of the Series 2023 Bonds in accordance with
applicable provisions of the securities laws of the states in which the Series 2023 Bonds have been registered or
qualified and the exemption from registration or qualification in other states cannot be regarded as a recommendation
thereof.
THE SERIES 2023 BONDS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR
HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS OFFICIAL STATEMENT. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
This Official Statement contains “forward-looking statements” within the meaning of the federal securities
laws in the sections hereof entitled “THE NEW SLC,” “THE AIRPORT,” “REPORT OF THE AIRPORT
CONSULTANT” and APPENDIX B. These forward-looking statements include, among others, statements
concerning expectations, beliefs, opinions, future plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. The forward-looking statements in this Official Statement
are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or
implied by such statements.
This Official Statement contains projections and estimates that are based on current expectations and
assumptions. In light of the important factors that may materially affect the financial condition of the Department and
the aviation industry generally and other economic and financial matters, the inclusion in this Official Statement of
such projections and estimates should not be regarded as a representation by the City or the Underwriters that such
projections and estimates will occur. Such projections and estimates are not intended as representations of fact or
guarantees of results.
The City and the Department each maintain a website and social media accounts. However, the information
presented on those websites and social media accounts is not a part of this Official Statement and should not be relied
upon in making an investment decision with respect to the Series 2023 Bonds.
KKR Draft 4/21/2023
vi
TABLE OF CONTENTS
INTRODUCTION ....................................................................................................................................................... 1
General .......................................................................................................................................................... 1
Salt Lake City .................................................................................................................................................. 1
Salt Lake City Department of Airports ........................................................................................................... 1
Salt Lake City International Airport ................................................................................................................ 1
The New SLC .................................................................................................................................................. 2
Plan of Finance ................................................................................................................................................ 2
The Series 2023 Bonds .................................................................................................................................... 2
Security for the Bonds ..................................................................................................................................... 3
Forward-Looking Statements .......................................................................................................................... 3
Additional Information .................................................................................................................................... 3
THE SERIES 2023 BONDS ........................................................................................................................................ 4
General Provisions .......................................................................................................................................... 5
Redemption of the Series 2023 Bonds ............................................................................................................ 5
Book-Entry Only System ................................................................................................................................ 8
ESTIMATED SOURCES AND USES OF FUNDS .................................................................................................. 4
DEBT SERVICE SCHEDULE ................................................................................................................................... 9
THE NEW SLC ......................................................................................................................................................... 10
Summary of the New SLC ............................................................................................................................ 10
Elements of the New SLC ............................................................................................................................. 16
Project Management of the New SLC ........................................................................................................... 19
Other Capital Projects ................................................................................................................................... 21
Funding Sources for the New SLC ................................................................................................................ 22
SECURITY FOR THE SERIES 2023 BONDS ....................................................................................................... 24
Pledge of Net Revenues ................................................................................................................................ 24
Flow of Funds................................................................................................................................................ 25
Rate Covenant ............................................................................................................................................... 29
Common Debt Service Reserve Fund ........................................................................................................... 30
Additional Bonds ........................................................................................................................................... 31
Use of PFCs to Pay Debt Service .................................................................................................................. 33
Permitted Investments ................................................................................................................................... 33
Events of Default and Remedies; No Acceleration ....................................................................................... 33
Subordinate Obligations (Subordinate Revolving Obligations) .................................................................... 33
Other Covenants of the City .......................................................................................................................... 34
THE AIRPORT ......................................................................................................................................................... 34
Overview ....................................................................................................................................................... 34
The Airport’s Air Service Area ..................................................................................................................... 35
The City ........................................................................................................................................................ 37
Airport Management ..................................................................................................................................... 38
COVID-19 Outbreak ..................................................................................................................................... 44
Impact of COVID-19 on the Airport ............................................................................................................. 44
Department’s Response to COVID-19 .......................................................................................................... 45
Airport Facilities ........................................................................................................................................... 41
Aviation Activity at the Airport .................................................................................................................... 44
Airline Use Agreement .................................................................................................................................. 53
Airport Financial Operations ......................................................................................................................... 56
Liquidity ........................................................................................................................................................ 65
Personnel Considerations .............................................................................................................................. 66
Retirement and Other Post-Employment Benefits ........................................................................................ 66
Risk Management .......................................................................................................................................... 67
Debt Management Policy .............................................................................................................................. 67
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vii
Investment Policy .......................................................................................................................................... 68
ENVIRONMENTAL, SOCIAL AND GOVERNANCE FACTORS .................................................................... 69
Environmental and Sustainability Factors ..................................................................................................... 69
Social Factors ................................................................................................................................................ 71
Governance Factors ....................................................................................................................................... 71
REPORT OF THE AIRPORT CONSULTANT ..................................................................................................... 72
General ........................................................................................................................................................ 72
Projection of Debt Service Coverage and Cost Per Enplanement ................................................................. 72
INVESTMENT CONSIDERATIONS ..................................................................................................................... 74
Delta’s Presence at the Airport ...................................................................................................................... 74
Project Costs and Schedule ........................................................................................................................... 74
Financial Assumptions .................................................................................................................................. 75
Seismic Risk and Other Force Majeure Events ............................................................................................. 75
General Economic Considerations ................................................................................................................ 76
Financial and Operational Condition of the Airline Industry ........................................................................ 77
Airline Consolidation .................................................................................................................................... 77
Effect of Bankruptcy of Air Carriers and Other Tenants............................................................................... 78
Cost of Aviation Fuel .................................................................................................................................... 79
Structural Changes in the Travel Market and Travel Substitutes .................................................................. 79
Technological Innovations in Ground Transportation ................................................................................... 79
Aviation Security and Safety Concerns ......................................................................................................... 80
Information Concerning the Airlines ............................................................................................................. 80
FAA Reauthorization and Federal Funding................................................................................................... 80
Federal Law Affecting Rates and Charges .................................................................................................... 81
PFC Revenues and Other Sources of Funding .............................................................................................. 81
Cybersecurity ................................................................................................................................................ 82
Environmental Regulations ........................................................................................................................... 82
Potential Limitation of Tax Exemption of Interest on Series 2023 Bonds .................................................... 83
Legislative Developments ............................................................................................................................. 83
Limitation of Remedies; No Acceleration ..................................................................................................... 84
Forward-Looking Statements ........................................................................................................................ 84
TAX MATTERS ........................................................................................................................................................ 84
General ........................................................................................................................................................ 85
Tax Treatment of Original Issue Premium .................................................................................................... 85
Tax Treatment of Original Issue Discount .................................................................................................... 85
Backup Withholding ..................................................................................................................................... 86
Changes in Federal and State Tax Law ......................................................................................................... 86
RATINGS ................................................................................................................................................................... 87
FORWARD-LOOKING STATEMENTS ............................................................................................................... 87
NO DEFAULTED BONDS ....................................................................................................................................... 87
LEGAL MATTERS .................................................................................................................................................. 87
Litigation ....................................................................................................................................................... 87
Approval of Legal Proceedings ..................................................................................................................... 88
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viii
INDEPENDENT AUDITORS .................................................................................................................................. 88
UNDERWRITING .................................................................................................................................................... 88
MUNICIPAL ADVISOR .......................................................................................................................................... 89
CONTINUING DISCLOSURE ................................................................................................................................ 89
MISCELLANEOUS .................................................................................................................................................. 90
APPENDIX A COMPREHENSIVE ANNUAL FINANCIAL REPORT .......................................................... A-1
APPENDIX B REPORT OF THE AIRPORT CONSULTANT .......................................................................... B-1
APPENDIX C FORM OF MASTER INDENTURE ........................................................................................... C-1
APPENDIX D FORM OF AIRLINE USE AGREEMENT ................................................................................ D-1
APPENDIX E BOOK-ENTRY ONLY SYSTEM ................................................................................................. E-1
APPENDIX F FORM OF CONTINUING DISCLOSURE AGREEMENT ...................................................... F-1
APPENDIX G FORM OF OPINION OF BOND COUNSEL ............................................................................. F-1
*Preliminary, subject to change 1
OFFICIAL STATEMENT
of
SALT LAKE CITY, UTAH
Relating to its
$XXX,XXX,000* Airport Revenue Bonds, Series 2023A (AMT)
$XX,XXX,000* Airport Revenue Bonds, Series 2023B (Non-AMT)
INTRODUCTION
General
This Official Statement of Salt Lake City, Utah (the “City”) sets forth certain information concerning the
City, its Department of Airports (the “Department”), the Salt Lake City International Airport (the “Airport”) and the
City’s $XXX,XXX,000* Airport Revenue Bonds, Series 2023A (AMT) (the “Series 2023A Bonds”) and
$XX,XXX,000* Airport Revenue Bonds, Series 2023B (Non-AMT) (the “Series 2023B Bonds” and, with the Series
2023A Bonds, the “Series 2023 Bonds”).
Salt Lake City
The City, a municipal corporation and political subdivision of the State of Utah (the “State”), has a Council-
Mayor form of government. The City Council consists of seven members, who are elected by voters within seven
geographic districts of approximately equal population. The Mayor is elected at large by the voters of the City and is
charged with the executive and administrative duties of the government. The Mayor appoints and the City Council
approves the appointment of the Executive Director of the Department. See “THE AIRPORT – The City” herein.
The Airport is owned by the City. In addition to the Airport, the City owns South Valley Regional Airport
(“South Valley” or “U42”) and Tooele Valley Airport (“Tooele” or “TVY”) (collectively with the Airport, the “Airport
System”), which are all operated and managed by the Department. The Mayor of the City and the City Council oversee
the Department’s affairs. An eleven-member advisory board (the “Airport Advisory Board”) of citizen volunteers
advises the Mayor.
Salt Lake City Department of Airports
The day-to-day operations of the Airport System are managed by the Executive Director of the Department,
who reports directly to the Mayor. The Executive Director leads the management staff of the Department and the
Department’s Chief Operating Officer and nine Division Directors oversee each of the primary operating and
administrative divisions of the Department and report to the Executive Director.
Salt Lake City International Airport
The Airport is located on approximately 9,400 acres about five miles west of the City’s downtown . The
airfield at the Airport contains four runways, three of which are used for airline traffic and the fourth of which is used
for general aviation traffic. A new terminal facility and associated landside facilities were placed into service at the
Airport on September 15, 2020, replacing the prior terminal complex in its entirety. The new terminal facility consists
of three levels and includes a federal inspection services area, passenger circulation areas, a centralized security
screening checkpoint, a ticketing area for departing passengers, and administrative offices for the Department and
other tenants at the Airport. The Airport’s newly constructed facilities also include a new five-level parking structure
for short-term parking along with surface parking for longer-term parking and employees, a new two level roadway
system, and a new central utility plant. The Airport is classified by the Federal Aviation Administration (“FAA”) as
a Large Hub facility based upon its share of nationwide enplaned passengers. The FAA classifies Large Hub airports
as those serving at least 1% of annual U.S. passenger enplanements. See “THE AIRPORT – Airport Management”
and “– Airport Facilities” herein. The Airport is also a principal hub for Delta Air Lines, Inc. (“Delta”). In the fiscal
KKR Draft 4/21/2023
2
year ended June 30, 2022 (“FY 2022”), Delta and its affiliates carried approximately 73.4% of the passengers enplaned
at the Airport. See “THE AIRPORT – Aviation Activity at the Airport.”
The New SLC
The “New SLC”, formerly known as the Airport Redevelopment Program, is a comprehensive and integrated
series of projects that has resulted in the replacement of substantially all of the Airport’s landside and terminal complex
facilities and the demolition of the previous facilities. The New SLC consists of the Terminal Redevelopment Program
(“TRP”) and the North Concourse Program (“NCP”). The TRP is a $2.86 billion capital improvement program that
consists of the following project elements: (1) the South Economy parking lot, (2) the Rental Car Quick Turn Around
and three Rental Car Remote Service Site facilities, (3) the Central Utility Plant, (4) a new Terminal Facility, (5) the
Gateway Center, (6) Concourse A West, including 25 gates, (7) the Parking Garage, (8) a new terminal roadway
system to serve the new landside facilities, (9) Concourse A East, including 22 gates, and (10) related infrastructure
improvements, including apron reconfiguration, information technology, utilities and landscaping. By September 15,
2020 the major elements of the TRP, including the new Terminal Facility, Concourse A West, Central Utility Plant,
Parking Garage, Gateway Center, roadways, and much of the airfield paving were placed in service. The NCP is a
separate, but programmatically integrated, $2.27 billion set of projects consisting of a concourse (“Concourse B”) now
planned to contain a total of 47 domestic contact gates and four hardstand positions, and will be constructed in four
phases. Concourse B is located parallel to Concourse A and is currently connected to it by a mid-concourse passenger
tunnel. Phase 1 of the NCP, Concourse B West, was placed in service on October 27, 2020, on schedule, with 21
gates.
A substantial portion of the New SLC has been completed as of July 1, 2023, including substantially all
elements of the TRP except for the final 17 gates in Concourse A East, which are expected to open on October 31,
2023. The NCP is being undertaken in phases, with 21 gates in Concourse B West already in service. The only
element of the original New SLC that is not expected to be completed in 20 23 is the Central Tunnel connecting the
main Terminal and Concourse A with Concourse B, and that element is expected to be placed in service in the fall of
2024 along with five additional gates. Thereafter, the remaining 21 gates in Concourse B East are e xpected to be
placed in service in phases beginning in the fall of 2025 and concluding with the opening of the final gate in November
2027. All elements of the New SLC have been bid, although not all of the elements of Phase 4 of the NCP are yet
subject to construction contracts. Based upon the bids received, the Department expects that the New SLC will be
completed on time and within the budget for the New SLC described herein. See “THE NEW SLC” herein.
Plan of Finance
The Series 2023 Bonds are being issued to (1) finance a portion of the cost of the design and construction of
the New SLC, (2) make a deposit to the Common Reserve Fund (as defined herein), (3) fund a portion of the interest
accruing on the Series 2023 Bonds, and (4) pay the costs of issuance of the Series 2023 Bonds. As described under
“THE NEW SLC” and “APPENDIX B – REPORT OF THE AIRPORT CONSULTANT – CIP Plan of Finance,” the
City has funded to date and expects to continue to fund the design and construction of the New SLC from a variety of
sources, including Department funds, proceeds of airport revenue bonds, drawings on a revolving credit agreement
(as described below), passenger facility charges (“PFCs”), customer facility charges (“CFCs”) and federal grants. In
addition to the Series 2023 Bonds, the City previously issued its Airport Revenue Bonds, Series 2017A (AMT) (the
“Series 2017A Bonds”), Airport Revenue Bonds, Series 2017B (Non-AMT) (the “Series 2017B Bonds” and, with the
2017A Bonds, the “Series 2017 Bonds”), Airport Revenue Bonds, Series 2018A (AMT) (the “Series 2018A Bonds”)
and Airport Revenue Bonds, Series 2018B (Non-AMT) (the “Series 2018B Bonds” and, with the 2018A Bonds, the
“Series 2018 Bonds”), Airport Revenue Bonds, Series 2021A (AMT) (the “Series 2021A Bonds”) and Airport Revenue
Bonds, Series 2021B (Non-AMT) (the “Series 2021B Bonds” and, with the 2021A Bonds, the “Series 2021 Bonds”
and, with the Series 2017 Bonds and the Series 2018 Bonds, the “Existing Bonds”). As of July 2, 2023, the Existing
Bonds were outstanding in the aggregate principal amount of $2,706,245,000. Following the issuance of the Series
2023 Bonds, the City currently expects that it will issue additional airport revenue bonds under the Master Indenture
(as defined below) to fund a total of approximately $800 million of construction costs of elements of the New SLC.
Given the complexity and timing of the New SLC, the final plan of finance remains subject to change. See “THE
NEW SLC” and “APPENDIX B – REPORT OF THE AIRPORT CONSULTANT – CIP Plan of Finance.”
The Series 2023 Bonds
KKR Draft 4/21/2023
3
The Series 2023 Bonds are being issued pursuant to the Master Trust Indenture dated as of February 1, 2017
(the “Master Indenture”) by and between the City and Wilmington Trust, National Association, as trustee (the
“Trustee”), the Fourth Supplemental Trust Indenture to be dated as of August 1, 2023 (the “Fourth Supplemental
Indenture” and, collectively with the Master Indenture, and all supplements thereto, the “Indenture”) by and between
the City and the Trustee, and the Act, as defined in the Master Indenture. The Series 2023 Bonds have been approved
by a resolution of the City Council adopted on June __, 2023. The Series 2023 Bonds are subject to optional and
mandatory sinking fund redemption prior to maturity as provided herein. See “THE SERIES 2023 BONDS” herein.
Security for the Bonds
The Series 2023 Bonds, the Existing Bonds and any additional Bonds issued pursuant to the Master Indenture
(collectively, the “Bonds”) will be limited obligations of the City payable solely from and secured by a pledge of (1)
Net Revenues, (2) certain funds and accounts held by the Trustee under the Indenture, and (3) other amounts payable
under the Indenture. None of the properties of the Airport System are subject to any mortgage or other lien for the
benefit of the owners of the Series 2023 Bonds or any other Bonds, and neither the full faith and credit nor the taxing
power of the City, the State or any political subdivision or agency of the State is pledged to the payment of the principal
of, premium, if any, and interest on the Series 2023 Bonds or any other Bonds. See “SECURITY FOR THE SERIES
2023 BONDS.”
Subordinate Obligations
Pursuant to the Master Subordinate Trust Indenture, dated as of March 1, 2021 (the “Master Subordinate
Indenture”), by and between the City and Zions Bancorporation, National Association, as trustee (the “Subordinate
Trustee”), the First Supplemental Subordinate Trust Indenture, dated as of March 1, 2021, as amended (the “First
Supplemental Subordinate Indenture,” and with the Master Subordinate Indenture, the “Subordinate Indenture”), by
and between the City and the Subordinate Trustee, and the Credit Agreement, dated as of March 1, 2021, as amended
(the “Subordinate Revolving Obligations Credit Agreement ”), by and between the City and JPMorgan Chase Bank,
National Association (the “Subordinate Revolving Obligations Bank”), which expires on March 1, 2024, the City is
authorized to issue and have outstanding, from time to time, up to $150,000,000 in aggregate principal amount of its
Salt Lake City, Utah Subordinate Airport Revenue Short-Term Revolving Obligations (collectively, the “Subordinate
Revolving Obligations”). As of July 1, 2023, the City had no Subordinate Revolving Obligations outstanding. All
Subordinate Revolving Obligations issued by the City are purchased by the Subordinate Revolving Obligations Bank
in accordance with the terms of the Subordinate Revolving Obligations Credit Agreement. The Subordinate Revolving
Obligations provide the City with flexibility to borrow on a short-term basis to supplement Department surplus funds
and Bond proceeds. Thus, the City may issue additional Subordinate Revolving Obligations, from time to time, to
finance, on an interim basis, construction costs of elements of the New SLC. See “SECURITY FOR THE SERIES
2023 BONDS – Subordinate Obligations (Subordinate Revolving Obligations).”
Forward-Looking Statements
This Official Statement contains projections and estimates that are based on current expectations. In light of
the important factors that may materially affect the financial condition of the Department and the aviation industry
generally and other economic and financial matters, the inclusion in this Official Statement of such projections and
estimates should not be regarded as a representation by the City that such projections and estimates will occur. Such
projections and estimates are not intended as representations of fact or guarantees of results. The Department
disclaims any obligation or undertaking to release publicly any updates or revisions to any forward -looking statement
contained herein to reflect any change in the Department’s expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based.
Additional Information
This Official Statement includes a description of the City, the Department an d the Department’s facilities
and certain financial and operational factors relating to the Department, and a description of the Series 2023 Bonds
and the security therefor. Except where noted, all information presented in this Official Statement has been provided
by the City. The following appendices are included as part of this Official Statement: APPENDIX A –ANNUAL
COMPREHENSIVE FINANCIAL REPORT OF THE DEPARTMENT FOR THE FISCAL YEAR ENDED JUNE
30, 2022; APPENDIX B – REPORT OF THE AIRPORT CONSULTANT dated July __, 2023; APPENDIX C –
FORM OF MASTER INDENTURE; APPENDIX D – FORM OF AIRLINE USE AGREEMENT; APPENDIX E –
KKR Draft 4/21/2023
4
BOOK-ENTRY ONLY SYSTEM; APPENDIX F – FORM OF CONTINUING DISCLOSURE AGREEMENT; and
APPENDIX G – FORM OF OPINION OF BOND COUNSEL. APPENDIX B has been prepared by Landrum &
Brown, Inc. (“Landrum” or the “Airport Consultant”), Airport Consultant to the City. APPENDICES C and G have
been prepared by Kutak Rock LLP, Bond Counsel to the City. APPENDI X F has been prepared by Kaplan Kirsch &
Rockwell LLP, Disclosure Counsel to the City. The information included in APPENDIX E has been obtained from
The Depository Trust Company (“DTC”).
Certain defined terms that are capitalized but not defined herein are defined in the Master Indenture. See
“APPENDIX C – FORM OF MASTER INDENTURE - ARTICLE I – DEFINITIONS; INTERPRETATION.” All
references in this Official Statement to the Master Indenture, the Fourth Supplemental Indenture, the Series 2023
Bonds, the Continuing Disclosure Agreement, the Airline Use Agreement and all other agreements, statutes and
instruments are qualified by reference to the complete document. Copies of the Fourth Supplemental Indenture are
available for examination at the offices of the Department and the Trustee.
The Department’s principal office is located at 3920 West Terminal Drive, Salt Lake City, Utah 84122. The
Department’s telephone number is (801) 575-2400. Copies of certain documents, including the Department’s Annual
Comprehensive Financial Report (“ACFR”) for FY 2022, are available electronically on the Department’s website at:
http://www.slcairport.com/about-the-airport/financial-information. However, no information on the Department’s or
the City’s website is part of or incorporated into this Official Statement, except to the extent such information is
expressly disclosed herein.
The Department’s ACFR for fiscal year 2021 (“FY 2021”) has been awarded the Certificate of Achievement
for Excellence in Financial Reporting by the Government Finance Officers Association (“GFOA”) and the Department
has submitted the ACFR for FY 2022 to the GFOA. The Department’s ACFR has been awarded the Certificate of
Achievement for Excellence in Financial Reporting by the GFOA for more than ten consecutive years.
ESTIMATED SOURCES AND USES OF FUNDS
The estimated sources and uses of funds in connection with the issuance of the Series 2023 Bonds are
summarized below (rounded to the nearest dollar):*
Series 2023A
Bonds
Series 2023B
Bonds
Total
Sources of Funds
Principal amount
Plus/minus Original Issue
Premium/Discount
Total Sources of Funds
Uses of Funds
Deposit to Construction Fund
[Repay Revolving Line of Credit]
Capitalized Interest1
Deposit to Common Reserve Fund
Costs of Issuance2
Total Uses of Funds
________________________________
*Amounts may not add due to rounding.
1 Includes a portion of the interest accruing on the Series 2023 Bonds through DATE. See also footnote 2 to the schedule under
the heading “DEBT SERVICE SCHEDULE” herein.
2 Includes underwriters’ discount, trustee fees, legal fees, municipal advisor and consultant fees, rating agency fees, printing
expenses and other miscellaneous fees and expenses.
KKR Draft 4/21/2023
5
THE SERIES 2023 BONDS
General Provisions
The Series 2023 Bonds will bear interest at the rates and mature on the dates set forth on the inside front
cover page of this Official Statement. Interest will be calculated on the basis of a 360-day year consisting of twelve
30-day months. The Series 2023 Bonds will be dated their initial date of delivery, and will bear interest from that date
payable semi-annually on January 1 and July 1 of each year, commencing January 1, 2024 (each an “Interest Payment
Date”). Interest due and payable on the Series 2023 Bonds on any Interest Payment Date will be paid to the person
who is the registered owner as of the Record Date (DTC, so long as the book -entry system with DTC is in effect).
Each Series 2023 Bond will bear interest from the Interest Payment Date next preceding the date of authentication
thereof unless such date of authentication is an Interest Payment Date, in which event such Series 2023 Bond will bear
interest from such date of authentication, or unless such d ate of authentication is after a Record Date and before the
next succeeding Interest Payment Date, in which event such Series 2023 Bond will bear interest from such succeeding
Interest Payment Date, or unless such date of authentication is on or before December 15, 2023, in which event such
Series 2023 Bond will bear interest from its date of delivery. If interest on the Series 2023 Bonds is in default, Series
2023 Bonds issued in exchange for Series 2023 Bonds surrendered for transfer or exchange will bear interest from the
last Interest Payment Date to which interest has been paid in full on the Series 2023 Bonds surrendered.
The Series 2023 Bonds will be issued in denominations of $5,000 and integral multiples thereof. The Series
2023 Bonds will be issued in fully registered form and will be registered in the name of Cede & Co., as registered
owner and nominee of DTC. DTC will act as securities depository for the Series 2023 Bonds. Individual purchases
may be made in book-entry form only. Purchasers will not receive certificates representing their interest in the Series
2023 Bonds purchased. So long as Cede & Co., as nominee of DTC, is the registered owner of the Series 2023 Bonds,
references herein to the Bondholders or registered owners means Cede & Co. and does not mean the Beneficial Owners
of the Series 2023 Bonds.
So long as Cede & Co. is the registered owner of the Series 2023 Bonds, the principal of and interest on the
Series 2023 Bonds will be payable by wire transfer by the Trustee to Cede & Co., as nominee for DTC, which is
required, in turn, to remit such amounts to the DTC participants for subsequent disbursement to the Beneficial Owners.
See “APPENDIX E — BOOK-ENTRY ONLY SYSTEM.”
Redemption of the Series 2023 Bonds
Optional Redemption
The Series 2023 Bonds maturing on or before July 1, 20__ are not subject to optional redemption prior to
maturity. The Series 2023 Bonds maturing on and after July 1, 20__ are redeemable on or after July 1, 20__ at the
option of the City, in whole or in part at any time, from any moneys that may be provided for such purpose and at a
redemption price equal to ___% of the principal amount of the Series 2023 Bonds to be redeemed plus accrued interest
to the date fixed for redemption, without premium.
Mandatory Sinking Fund Redemption
The Series 2023A Bonds maturing on July 1, 20__, are subject to mandatory sinking fund redemption in part,
by lot, at a redemption price equal to 100% of the principal amount thereof, plu s accrued interest thereon to the date
fixed for redemption, without premium, on July 1 of the following years and in the following principal amounts:
July 1
of the Year
Principal Amount
*
*Final Maturity Date
KKR Draft 4/21/2023
6
The Series 2023A Bonds maturing on July 1, 20__ (together with the Series 2023A Bonds maturing on July
1, 20__, the “Series 2023A Term Bonds”), are subject to mandatory sinking fund redemption in part, by lot, at a
redemption price equal to 100% of the principal amount thereof, plus accrued interest thereon to the date fixed for
redemption, without premium, on July 1 of the following years and in the following principal amounts:
July 1
of the Year
Principal Amount
*
*Final Maturity Date
The Series 2023B Bonds maturing on July 1, 20__ are subject to mandatory sinking fund redemption in part,
by lot, at a redemption price equal to 100% of the principal amount thereof, plus accrued interest thereon to the date
fixed for redemption, without premium, on July 1 of the following years and in the following principal amounts:
July 1
of the Year
Principal Amount
*
*Final Maturity Date
The Series 2023B Bonds maturing on July 1, 20__ (together with the Series 2023B Bonds maturing on July
1, 20__, the “Series 2023B Term Bonds”) are subject to mandatory sinking fund redemption in part, by lot, at a
redemption price equal to 100% of the principal amount thereof, plus accrued interest thereon to the date fixed for
redemption, without premium, on July 1 of the following years and in the following principal amounts:
July 1
of the Year
Principal Amount
*
*Final Maturity Date
At the option of the City, to be exercised by delivery of a wri tten certificate to the Trustee on or before the
60th day next preceding any mandatory sinking fund red emption date for the Series 2023A Term Bonds or the Series
2023B Term Bonds (collectively, the “Series 2023 Term Bonds”), the City may (a) deliver to the Trustee, for
cancellation, Series 2023 Term Bonds, as applicable, or portions thereof (in Authorized Denominations) purchased in
the open market or otherwise acquired by the City or (b) specify a principal amount of suc h applicable Series 2023
Term Bonds or portions thereof (in Authorized Denominations), which prior to said date have been optionally
redeemed and previously cancelled by the Trustee at the request of the City and not theretofore applied as a credit
against any mandatory sinking fund redemption requirement. Each such applicable Series 2023 Term Bond or portion
thereof so purchased, acquired or optionally redeemed and delivered to the Tr ustee for cancellation will be credited
by the Trustee, at 100% of the principal amount thereof, against the obligation of the City to pay the principal of such
applicable Series 2023 Term Bond on such mandatory sinking fund redemption date.
Notices of Redemption to Bondholders; Conditional Notice of Optional Redemption
KKR Draft 4/21/2023
7
The Trustee will give notice of redemption, in the name of the City, to Bondhol ders affected by redemption
(DTC, so long as the book-entry system with DTC is in effect) at least 30 days but not more than 60 days before each
redemption date. The Trustee will send such notice of redemption by first class mail (or with respect to Series 2023
Bonds held by DTC, either via electronic means or by an express delivery service for delivery on the next fol lowing
Business Day) to each registered owner of a Series 2023 Bond to be redeemed; each such notice will be sent to the
owner’s registered address. The City will also post, or cause to be posted, such notice of redemption on the Municipal
Securities Rulemaking Board’s Electronic Municipal Market Access (“EMMA”) website.
Each notice of redemption will specify the date of issue, the applicable Series, the maturity date, the interest
rate and the CUSIP number of the applicable Series 2023 Bonds to be redeemed, if less than all Series 2023 Bonds of
a Series, maturity date and interest rate are called for redemption , the numbers assigned to the Series 2023 Bonds to
be redeemed, the principal amount to be redeemed, the date fixed for redemption, the redemption price, the place or
places of payment, the Trustee’s name, that payment will be made upon presentation and surrender of the applicable
Series 2023 Bonds to be redeemed, that interest, if any, accrued to the date fixed for redemption and not paid will be
paid as specified in said notice, and that on and after said date interest thereon will cease to accrue.
The City may provide that, if at the time of mailing of notice of an optional redemption there has not been
deposited with the Trustee moneys and/or securities sufficient to redeem all the applicable Series 2023 Bonds called
for redemption, such notice may state that it is conditional, that is, subject to th e deposit of the redemption moneys
with the Trustee not later than one Business Day prior to the scheduled redemption date, and such notice will be of no
effect unless such moneys are so deposited. In the event sufficient moneys are not on deposit one Bus iness Day prior
to the scheduled redemption date, then the redemption will be canceled and on such cancellation date notice will be
mailed to the Holders of such Series 2023 Bonds.
Failure to give any required notice of redemption as to any particular Series 2023 Bonds will not affect the
validity of the call for redemption of any Series 2023 Bonds in respect of which no failure occurs. Any notice sent as
provided in the Indenture will be conclusively presumed to have been given whether or not actually rec eived by the
addressee. When notice of redemption is given, Series 2023 Bonds called for redemption become due and payable on
the date fixed for redemption at the applicable redemption price. In the event that funds are deposited with the Trustee
sufficient for redemption, interest on the Series 2023 Bonds to be redeemed will cease to accrue on and after the date
fixed for redemption.
Effect of Redemption
On the date so designated for redemption, notice having been given in the manner and under the condit ions
provided in the Indenture and as described above and sufficient moneys for payment of the redemption price being
held in trust to pay the redemption price, interest on such applicable Series 2023 Bonds will cease to accrue from and
after such redemption date, such Series 2023 Bonds will cease to be entitled to any lien, benefit or security under the
Indenture and the owners of such Series 2023 Bonds will have no rights in respect thereof except to receive payment
of the redemption price. Series 2023 Bonds which have been duly called for redemption and for the payment of the
redemption price of which moneys will be held in trust for the holders of the respective Series 2023 Bonds to be
redeemed, all as provided in the Indenture, will not be deemed to be Outstanding under the provisions of the Indenture.
Selection of Series 2023 Bonds for Redemption; Series 2023 Bonds Redeemed in Part
Redemption of the Series 2023 Bonds will only be in Authorized Denominations. The Series 2023 Bonds
are subject to redemption in such order of maturity and interest rate within a Series (except mandatory sinking fund
payments on the Series 2023 Term Bonds) as the City may direct and by lot within such maturity and interest rate of
such Series selected in such manner as the Trustee (or DTC, as long as DTC is the securities depository for the Series
2023 Bonds) deems appropriate.
Except as otherwise provided under the procedures of DTC, on or before the 45th day prior to any mandatory
sinking fund redemption date, the Trustee will proceed to select for redemption (by lot in such manne r as the Trustee
may determine) from the Series 2023 Term Bonds an aggregate principal amount of such Series 2023 Term Bonds
equal to the amount for such year as set forth in the applicable table under “Mandatory Sinking Fund Redemption”
above and will call such Series 2023 Term Bonds or portions thereof (in Authorized Denominations) for redemption
and give notice of such call.
KKR Draft 4/21/2023
8
Book-Entry Only System
DTC will act as securities depository for the Series 2023 Bonds. The Series 2023 Bonds will be issued as
fully registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as
may be requested by an authorized representative of DTC. One fully registered bond certificate will be issued for
each maturity of each Series of the Series 2023 Bonds in the aggregate principal amount of such maturity, and will be
deposited with DTC. For more information regarding DTC and its procedures, see “APPENDIX E – BOOK-ENTRY
ONLY SYSTEM.”
[Remainder of page intentionally left blank.]
KKR Draft 4/21/2023
9
DEBT SERVICE SCHEDULE
Upon issuance of the Series 2023 Bonds, the Existing Bonds and the Series 2023 Bonds will be the only
outstanding Bonds of the City payable from the Net Revenues of the Airport System. Subject to the final pricing of
the Series 2023 Bonds, the City currently expects to issue a total of approximately $800 million of additional Bonds
to fund additional project costs for the New SLC through FY 2028. The following schedule sets forth the debt service
for the Bonds:
Series 2023A Bonds Series 2023B Bonds
Period
Ending¹
Aggregate
Debt Service
on Existing
Bonds3 Principal Interest² Principal Interest²
Aggregate Debt
Service on Bonds
7/1/2024
7/1/2025
7/1/2026
7/1/2027
7/1/2028
7/1/2029
7/1/2030
7/1/2031
7/1/2032
7/1/2033
7/1/2034
7/1/2035
7/1/2036
7/1/2037
7/1/2038
7/1/2039
7/1/2040
7/1/2041
7/1/2042
7/1/2043
7/1/2044
7/1/2045
7/1/2046
7/1/2047
7/1/2048
7/1/2049
7/1/2050
7/1/2051
Total
___________
1 Pursuant to the provisions of the Master Indenture, the City is required to make monthly deposits to the applicable Debt Service Funds for the Bonds so that
sufficient amounts are on deposit in such funds 15 days prior to each applicable principal paymen t date (July 1) and interest payment date (January 1 and July
1) for the Bonds. See “SECURITY FOR THE SERIES 2023 BONDS” and “APPENDIX C —FORM OF MASTER INDENTURE.”
2 A portion of the interest due on the Series 2023 Bonds through, and including, DATE will be paid with a portion of the proceeds of the Series 2023 Bonds.
Interest is capitalized on specific components of the New SLC to the date such component is expected to be placed in service.
3 A portion of the interest due on the Series 2021 Bonds through, and including, October 1, 2024 will be paid with a portion of the proceeds of the Series 2021
Bonds.
KKR Draft 4/21/2023
10
THE NEW SLC
Summary of the New SLC
The New SLC is a comprehensive and integrated series of projects that has replaced substantially all of the
Airport’s landside and terminal complex facilities. Following the recession of 2008-2010, the Department, in
consultation with Delta, undertook a comprehensive study of the Airport’s facilities to determine the improvements
necessary to extend the useful lives of these facilities for an additional 30 years. The cost and utility of making
extensive renovations to the then-existing facilities was compared by the Department to the cost of replacing these
facilities with new and more efficient ones. The Department and the air carriers operating at the Airport, including
Delta, concluded that replacement of the majority of the landside and terminal complex facilities at the Airport would
be the better approach.
The New SLC is composed of two primary components. The TRP is an estimated $2.86 billion capital
improvement program, including soft costs, to build new facilities to replace ag ed facilities, mitigate seismic risks,
accommodate current operations and prepare for future growth. The NCP is an estimated $2.27 billion set of projects
that are programmatically integrated with the TRP consisting of Concourse B (formerly known as the North
Concourse) consisting of 47 gates parallel to Concourse A (formerly known as the South Concourse) to be constructed
in four stages, a tunnel connecting to the new main terminal facility and related apron and fuel hydrant facilities. The
first phase of the New SLC is substantially complete and is in service.
The Department and the signatory air carriers operating at the Airport (the “Signatory Airlines”) negotiated
the Airline Use Agreement, as amended as described herein (the “AUA”), that became effective July 1, 2014 for a ten
year term and that includes approval of the TRP, and provides a process for the Signatory Airlines to approve
additional capital projects, including the NCP. On December 14, 2022, in accordance with the provisions of the AUA,
Delta approved on behalf of all Signatory Airlines an amendme nt to the AUA that revised the project budget for the
New SLC and pursuant to a Second Amendment to the AUA, effective December 14, 2022 (the “Second
Amendment”), Delta approved construction of the 16 additional gates at Concourse B for an additional not t o exceed
amount of $680,713,083 and extended the term of the AUA through June 30, 2044 . Alaska Airlines and Southwest
Airlines have also executed the Second Amendment extending the term of their AUAs to June 30, 2044, and American
Airlines and United Airlines have executed amendments to their AUAs extending the term thereof to June 30, 2034 ,
and in each case approving the final phase of the NCP. [Spirit Airlines has also become a Signatory Airline with an
AUA with a term ending June 30, 2034.] See “THE AIRPORT – Airline Use Agreement.” As part of the NCP,
Concourse B, was originally designed with 31 gates, but allowed for the addition of 16 more gates at a future date, as
demand warranted. The demand for additional gates at the Airport by many of the air carriers, including Delta, has
caused the Department to undertake construction of the remaining portion of Concourse B as part of the New SLC
project. The Signatory Airlines unanimously approved undertaking the NCP in April 2016. The cost increases in the
New SLC budget since 2018 are primarily related to changes to the original design requested by Delta and certain
other Signatory Airlines, including construction of the full extent of Concourse B of 47 gates, to increased materials
costs during the COVID-19 pandemic, and to increased construction costs in the Salt Lake City area. In addition, the
Signatory Airlines have elected to have the City finance construction of certain tenant finishes, for which such
Signatory Airlines will reimburse the City over the remaining term of the airline’s AUA. See “THE AIRPORT –
Airline Use Agreement.” The current budget for the NCP portion of the New SLC is an estimated $2.27 billion. Phase
4 of the NCP, consisting of 11 gates and related apron and fuel system work as well as four permanent hardstand
positions, all located on the eastern portion of Concourse B, has been bid, but is not yet fully under contract pursuant
to Component Guaranteed Maximum Price contracts (“CGMPs”). See “– Project Management of the New SLC”
below. (A “hardstand” position is not connected to a concourse directly, and is served by buses from Concourse B.)
KKR Draft 4/21/2023
11
Table of Lease Terms
Airline Term
ending
June 30
Percentage
of
passengers
(FY 2022)
Delta Air Lines Inc. 2044 73.4%
Southwest Airlines 2044 10.4
Alaska Airlines 2044 2.3
American Airlines 2034 5.4
United Airlines 2034 4.7
Spirit Airlines 2034 0.2
Total 96.4%
With the opening of most elements of the TRP and the western portion of Concourse B in the fall of 2020,
the majority of the original scope of the New SLC was completed and placed in service and with five additional gates
opening in May of 2023 and the final 17 gates of Concourse A East expected to open October 31, 2023, all elements
of the New SLC except the central tunnel will have been placed in service. The remaining work, in addition to the
central tunnel, is largely in response to the recovery of passenger traffic since the COVID-19 pandemic and demand
by both Delta and the other airlines serving the Airport for additional facilities. Demolition of the former terminals
and concourses has been completed.
KKR Draft 4/21/2023
12
Completed Elements of the New SLC
Source: Authority records
In addition to right-sizing the Airport’s facilities to accommodate current and future demand, the New SLC
meets current requirements for seismic resiliency, solves certain operational problems resulting from the prior facility
layout, improves customer service and maintains the Airport’s competitive cost structure. A magnitude 5.7 earthquake
struck the Salt Lake City area in March 2020. None of the elements of the New SLC sustained any significant damage.
The City achieved Leadership in Energy and Environmental Design (“LEED”) Gold certification for the new terminal
facilities, and the City anticipates achieving LEED Gold certification and not less than Silver certification for the
entire New SLC, as required by City ordinance.
The New SLC Project Management Team recognized at the start of the pandemic that to complete the New
SLC safely and on time, measures needed to be quickly put in place to ensure the health of the trade workers onsite.
Written COVID-19 plans were published by both construction managers at risk in early March 2020 and processes
were immediately put in place to maintain the health of those persons working on the New SLC Project. The measures
put in place and reinforced on a daily basis allowed the New SLC project to remain under construction, to receive
high marks on three different Salt Lake County Health Department inspections, to peak at 1,950 trade workers and to
achieve the scheduled opening for the phase 1 openings of the New SLC.
As a result of the COVID-19 pandemic and the related downturn in passengers using the Airport, the
Department, in consultation with the Signatory Airlines, modified the phasing schedule for the remainder of the
construction of the New SLC. Rather than completing Concourses A and B in several phases while maintaining
elements of the previous concourses in service, in the spring of 2020, the Department determined to demolish all of
the remaining terminal elements and construct Concourse A East in a single phase . This is expected to result in the
completion of Concourse A East in October 2023, more than two years ahead of the original schedule, which called
for phased completion of Concourse A East through calendar year (CY) 2025. When the New SLC was rephased, the
Department was not able to determine whether the additional gates in Concourse B East would be necessary to
accommodate future demand and, accordingly, that portion of the NCP was suspended. As air traffic at the Airport
began to rebound rapidly during the summer of 2020, and after consultation with the Signatory Airlines, the
Department determined that the original NCP program with a total of 31 gates was necessary to accommodate the
projected airline demand. Since 2020, even greater demand for gates at the Airport has led the Department, after
Project Element Date Placed in
Service
Cost ($000s)
South Economy parking lot October 2014 $14,344
Rental Car Quick Turnaround (“QTA”) and Remote
Service Sites (“RSS”)
January 2016 95,457
Central Utility Plant (“CUP”) September 2020 59535
Terminal Facility September 2020 787,979
Gateway Center September 2020 126,153
Concourse A West – 25 gates September 2020 422,742
Parking Garage September 2020 241,872
Terminal Roadway System September 2020 110,343
Related infrastructure, including aprons, IT, utilities
and landscaping
September 2020 ________
Concourse B West – 21 gates October 2020 398,450
Mid-concourse Tunnel October 2020 21,063
Associated ramp and fuel hydrants Simultaneously with
associated gates
_______
Concourse A East – partial (5 gates) May 2023 _______
Total Cost of Completed Project Elements $_______
KKR Draft 4/21/2023
13
consultation with Delta and the other Signatory Airlines serving the Airport, to undertake the full scope of Concourse
B East, with a total of 47 gates. The Department expects to complete construction of the final phase of Concourse B
East and, therefore, of all gates in the New SLC, by the end of CY 2027. In order to accommodate operational demands
while Concourses A and B East are completed, the Department is utilizing 20 temporary hardstand positions to the
north and east of Concourse B, plus an additional four remain overnight (or “RON”) positions for aircraft that could
be used as hardstand positions.
Set forth on the following page is a photograph showing the major completed portions of the New SLC and
the areas that remain under construction.
[Remainder of page intentionally left blank]
KKR Draft 4/21/2023
14
KKR Draft 4/21/2023
15
Phasing the NCP will result in new gates coming into service on Concourse B East beginning in the Fall of
2024 and continuing through the final gate coming on -line in November of 2027. As a result of the decision to
temporarily use hardstands and demolish the remaining concourses of the old terminal, t he Airport is currently gate-
constrained. Delta and its regional partners currently operates from 15 of the 20 hardstand positions, while use of the
other five hardstand positions is assigned by the Department. As of the date hereof, there are 71 gate positions at the
Airport, 20 of which are hardstands. By the end of 2023, the remaining 17 gates on Concourse A East are expected to
open and the 15 hardstand positions used by Delta will be decommissioned to make way for the final phases of
Concourse B East. By October 2024, five gates in Concourse B East are expected to open and be occupied by Delta
and the new central connecting tunnel is expected to open. Four more gates of Concourse B East are expected to be
placed in service and used by Delta in Fall 2025, while a further five gates of Concourse B East are expected to open
in January 2026, 11 more at Concourse B East in January 2027, and the final gate of Concourse B East by November
2027. In addition, the Department will construct four permanent hardstand positions served from the eastern end of
Concourse B East. The table below shows the expected dates of completion of the two Concourses of the New SLC.
New SLC Gates
Location Number of Gates Completion (actual/expected)
Concourse A West 25 September 2020
Concourse A East 5 May 2023
Concourse A East 17 October 2023
Concourse B West 21 October 2020
Concourse B East 5 Fall 2024
Concourse B East 4 Fall 2025
Concourse B East 5 January 2026
Concourse B East 11 January 2027
Concourse B East 1 November 2027
Total Gates 94
The gates currently used by the Signatory Airlines other than Delta, seven of which (including two Concourse
B gates and five hardstands) are not leased to any airlines but are used on a per operation basis by multiple airlines
(“Common Use”), and certain others 64 of which (including 15 hardstands leased to Delta) are preferentially leased,
are operating at capacity. A preferential use lease gives the tenant air carrier the right to occupy and use the gate
facilities for its scheduled operations but allows the Department to require the carrier leasing such space to
accommodate operations by other air carriers when the gate is not in use for the lessee’s scheduled operations. Carriers
are sharing gates in order to accommodate existing operations and, during peak period s, the Department has used its
rights under the preferential use leases with Delta and other carriers to accommodate operations of other airlines.
Upon completion of the New SLC, the Airport will have 94 gates connected to its concourses, and four additional
hardstand positions served from the eastern end of Concourse B East with aircraft parking positions located
immediately south of Concourse A, to accommodate peak periods and new entrant airlines. Of the 94 gates, 47 will
be in Concourse B and the remaining 47 in Concourse A; all 94 such gates will include jet bridges and be sized to
accommodate, at a minimum, Boeing 737 or Airbus A320 aircraft, as well as smaller regional jets. This configuration
will provide greater flexibility, efficiency and passenger convenience. In addition, at least six gates will have the
capacity to accommodate the largest aircraft in service. The new, larger gates are designed to accommodate more
than triple the 11 million annual passengers the facilities replaced by the New SLC were designed to serve. Before
construction of the New SLC commenced, the Airport was served by 86 gates, of which only 56 included jet bridges
and the concourses were inefficient “finger piers” that had narrow entrance and exit taxiways that created delays for
aircraft accessing or departing from the terminal. The new parking facilities provide an increase of approximately
2,000 additional spaces over those existing before completion of this portion of the New SLC. The New SLC is
designed to accommodate both projected growth at the Airport as well as provide for future expansion as needed.
The following table shows the major elements of the New SLC yet to be completed and the expected costs,
whether a CGMP for such project element has been executed, project status, the actual or expected date on which
construction of such element has or will commence and the expected date of beneficial occupancy (“DBO”) for each
project element.
KKR Draft 4/21/2023
16
Elements of the New SLC to Be Completed as of July 1, 2023
Project Element
Actual /
Expected
Cost
($000’s)†
Executed
CGMP as of
7/1/23?
Project Status
Actual/Expected
Commencement of
Construction
Expected DBO
TRP
TRP Baggage Handling System 140,465 Yes In Service (89%),
Under Const. (11%)
October 2016 September
2020/Oct. 2023
Concourse A East 353,382 Yes Under Const. January 2021 Oct. 2023
Terminal Apron, Taxilanes and Fuel
Hydrant System*
289,317 Yes In Service (__%)
Under Const (__%).
Phased Oct. 2023
Subtotal remaining TRP (incl. Owner’s
reserve of $19,194)
$
100%
executed
NCP
Concourse B East Phase 3 (14 gates)
412,272
Yes
Under Const.
April 2022
Q4 2024 – Q1
2026 (phases)
Concourse B East Phase 4 (11 gates)
Q1 2027-Q4 2027
NCP Baggage Handling System
70,820
Yes
In Service/Under
procurement
June 2018
October 2020/Q4
2024-2027
Central Tunnel
109,456
Yes
Under Const.
April 2022
Q4 2024
Apron*
355,471
Partial
In Svc. (__%)/Under
Const. (__%)/
June 2018
Q1 2027
Hydrant Fueling System*
43,137
Partial
Under Const. (__%)/In
Design (__%)
Phased
Q1 2027
Temporary hardstands and related costs
104,742
Yes
In Svc.
January 2021
October 2020
BHS Cold Bag Storage 35,862 No Planning Q3 2022 Q4 2023
Subtotal remaining NCP (including
Owner’s reserve of $46,758)
$
____%
executed
TOTAL remaining New SLC $
____%
executed
* Portions of the terminal apron and fuel system to be bid and constructed annually; segments expected to be completed to support opening of related concourse facilities.
† Includes allocable portion of soft costs.
Completed Elements of the New SLC
The New SLC will result in the replacement of essentially all of the landside and terminal complex facilities
at the Airport with new, more efficient, safe and passenger-focused facilities. A brief summary of the major elements
of the New SLC that have been completed and placed in service is set forth below:
Terminal
The new Terminal facility was placed into service on September 15, 2020. The new Terminal facility is
contiguous to Concourse A, connected to the new parking garage via the new Gateway Center, and includes
approximately 912,000 square feet (“sf”) of space on three levels. Level 1 of the Terminal contains a federal inspection
services area (“FIS”), international baggage claim and recheck area, ticket counters for remote passenger airline check-
in, baggage drop services and security checkpoint screening, tenant administrative offices, a centralized security
checkpoint for dedicated employee access, and ground transportation counters, and serves commercial curbs and other
ground transportation functions. Level 2 provides passenger circulation areas and connects landside and airside
components of the facility. Public areas prior to the security checkpoint provide for baggage claim and airline baggage
service offices, an expansive meeter-greeter area, food and beverage retail concessions, and a centralized securi ty
screening checkpoint. Areas beyond security screening include the terminal plaza area, which consists of 79,000 sf
of concessions, seating and circulation space and transitions to the airside concourses. Level 3 contains the ticketing
area for departing passengers, administrative offices for the Department and other tenants at the Airport, and a portion
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of the Delta Sky Club. Departing passengers being dropped off at the Airport arrive on the Level 3 curb. The Airport
is served by the TRAX light rail system, owned and operated by the Utah Transit Authority (“UTA”), which connects
the Airport with downtown Salt Lake City. The Terminal was designed to accommodate relocation of the terminus
of the TRAX light rail station at the first level of the Terminal. The TRAX extension was financed and built by UTA
and became operational on October 26, 2021.
Gateway Center
The Gateway Center, which also opened on September 15, 2020, is an elevated building adjacent to the north
side of the Parking Garage that consists of approximately 126,000 sf of building space that connects the Parking
Garage to the new Terminal facility. The Gateway Center houses a variety of functions, including both ticket counters
and kiosks for remote passenger airline check-in and baggage drop services, rental car counters and check-in facilities,
and rental car support offices. The Gateway Center provides a high level of customer service by seamlessly connecting
passengers using the new parking garage (including those renting or returning rental cars) with the departures level of
the Airport without a level change. Departing passengers are also able to obtain boarding passes at kiosks and check
baggage in the Gateway Center adjacent to the garage, and arriving passengers are able to proceed directly to their
automobiles or complete their rental car transaction and proceed directly to their rental car. The Gateway Center is
connected to the Terminal via two pedestrian bridges and connected to the parking garage via two vestibules. Based
on data collected by the Department, the Gateway Center was designed to serve most of the Airport’s origination and
destination (“O&D”) passengers.
Concourse A West
The initial portion of Concourse A to be constructed was Concourse A West, which provides a total of 25
gates, six of which can accommodate international arrivals, and was placed into service on September 15, 2020. This
facility houses approximately 459,000 sf of building space on three levels. Level 1 (ground level) contains non-public
areas that accommodate airline operations offices and support areas, outbound and transfer baggage facilities, storage
facilities and mechanical-electrical-plumbing (“MEP”) facilities. Level 2 consists of holdrooms and the primary
passenger circulation level and serves enplaning and deplaning passengers. Passenger amenities on Level 2 include
moving sidewalks and a wide variety of food, beverage and retail concessions. International gates connect to a sterile
corridor that routes international passengers to the FIS facilities in Level 1 of the Terminal. Level 3 contains
communications rooms and other non-public space. See “- Elements of the New SLC Under Construction – Concourse
A East” below.
Concourse B West
Concourse B West, consisting of 21 gates, opened for service in October 2020. It consists of approximately
361,000 sf of building space on two main levels, plus a third level for non-public support areas similar to Concourse
A, apron site work and paving, and hydrant fueling. Level 1 of Concourse B West contains non-public areas
substantially similar to Concourse A, although during use of the hardstands, a portion of Level 1 has been converted
to be used as temporary holdrooms, while Level 2 serves enplaning and deplaning passengers, and includes holdrooms
and passenger amenities similar to Concourse A. The existing west mid-concourse tunnel was extended from
Concourse A West to Concourse B West and provides pedestrian access to Concourse B.
Concourse A East
Five gates in Concourse A East opened for services in May 2023. The remaining 17 gates are expected to
open in October 2023. See “- Elements of the New SLC Under Construction – Concourse A East” below.
Rental Car Facilities
The rental car service facilities were placed in service in March 2016. These facilities consist of a QTA
facility for fueling and washing cars and three facilities for performing light vehicle maintenance. The QTA is a two-
level building of approximately 468,000 sf with 14 wash and service bays on the first floor and vehicle storage and
parking on the second floor. The RSS facility consists of three single -story service buildings containing a total of
approximately 34,000 sf of building space located south of the QTA. These buildings provide back-of-house
maintenance areas for the rental car providers and contain office, support and storage space. The QTA and RSS are
currently in use by the rental car companies operating at the Airport.
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Parking Garage and South Economy Parking Lot
The new parking structure was placed into service on September 15, 2020. The new parking garage is a five-
level concrete structure with a footprint of approximately 36 5,000 sf and a total gross square footage of approximately
1.42 million sf. Levels 2 through 5 of the Parking Garage provide 3,469 public parking spaces, doubling the number
of structured parking spaces previously located at the Airport. The first floor is dedicated to rental car operations and
contains approximately 1,200 ready/return parking spaces. Upper floors are served via two helical ramps.
In addition to the new Parking Garage, the Airport also has a substantial amount of surface parking available
for Airport patrons, including a new surface parking area located east of the new parking structure (“Lot E”) within
walking distance of the Terminal. Lot E includes 384 parking spaces. The South Economy Parking Lot opened in
July 2014 and consists of approximately 2,900 additional parking spaces replacing the economy parking that was
displaced by the construction of the new rental car facilities. The South Economy Parking Lot is integrated with the
remainder of the Economy Parking Lot.
The Department now has a total of 14,401 commercial parking spaces (excluding employee, Park and Wait,
and rental car spaces) located on the Airport, an increase of over 2,500 spaces compared to 2014. This increase is
primarily because of the increased number of spaces in the new parking structure. The Department has retained its
variety of parking products, ranging from premium, reserved spaces closest to the new Terminal to economy spaces
in remote lots and including a variety of intermediate options, including covered and structured parking and hourly or
daily rates.
Central Utility Plant
The Central Utility Plant, a 52,000 sf building, houses all main boilers and chillers as well as electrical
systems to service the terminal complex, consisting of the new Terminal, Gateway Center, Concourses A and B,
Parking Garage, roadways and rental car facilities, and other applicable Airport systems connected to this facility,
including pumping systems, electrical equipment, distribution equipment and emergency generators. The CUP is a
stand-alone building located west of the QTA Facility. The CUP was turned over to the Department on May 1, 2020
for testing and is in service and provides heating, cooling and electrical service to the Airport.
Terminal Roadway System
This project element of the New SLC includes all roadways, bridges and signage to service the new terminal
complex and support areas. The departing passenger roadway is an elevated bridge system with vehicle access to the
Level 3 Terminal curb-front. Other elements of this component include the arriving passenger roadways which access
the Terminal at Level 1, commercial vehicle roads, rental car user and service roads, and access to and from the
parking facilities. The new permanent roadways became operational in September 2020.
Supporting Elements
The New SLC includes substantial supporting elements, such as apron site-work and paving, demolition and
landscaping, and extensive information technology infrastructure. The apron site -work includes all airfield site
demolition, utility relocation and apron paving required to enable the redevelopment of the terminal complex,
including Concourses A and B. Included in this project element are hydrant fueling and u tilities including power,
water and sewer. Also included is landside landscaping work such as entry and exit landscaping and planting of
undeveloped areas. In addition, as described above, the Department has constructed 20 hardstand positions and four
remain overnight positions adjacent to Concourse B to accommodate aircraft until demolition work begins in
preparation for the final phases of the construction of Concourse B East, at which point five hardstand and four remain
overnight positions will remain accessible from Concourse B.
Following the opening of the new Terminal and other elements of the TRP in September 2020, the
Department demolished the original terminal buildings and concourses, the original parking garage, connectors and
pedestrian bridges. This demolition work was originally phased to occur over a period from 2021 through 2024.
However, as a result of the program rephasing that occurred in 2020, demolition has been completed.
Information technology (“IT”) components are an integral element of the New SLC and have been and will
be incorporated throughout the facilities and project site. Elements in this scope of work include IT infrastructure, IT
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19
systems including building systems, parking revenue control and related vehicle control systems, and operating
systems. Other associated systems being added or updated as part of the New SLC include baggage information
display systems (“BIDS”), flight information display systems (“FIDS”), gate information display systems (“GIDS”),
lobby information display systems and ramp information display systems.
Elements of the New SLC Under Construction
Concourse A East
Concourse A East is the remaining portion of Concourse A and is under construction following completion of
demolition of the remaining original terminal facilities. Concourse A East currently is planned to be fully completed
in October 2023. This facility will also have three levels and is expected to comprise approximately 371,000 sf of
space. Level 1 of Concourse A East will contain non-public areas similar to Concourse A West. Level 2 of the facility
will serve enplaning and deplaning passengers, and will include passenger amenities similar to Concourse A West.
Concourse A East is expected to accommodate 22 domestic aircraft gate positions. Level 3 contains a portion of the
29,000 sf Delta Sky Club and will also contain non-public areas similar to Concourse A West.
Concourse B East
Concourse B East is planned to consist of approximately 336,000 sf of building space on two main levels,
plus a third level for club space and non-public support areas similar to Concourse A, apron site work and paving,
hydrant fueling, plus a new central passenger tunnel connecting Concourse B to Concourse A. Level 1 of Concourse
B East will contain non-public areas substantially similar to Concourse A, although a portion of Level 1 will be used
as holdrooms for the four permanent hardstands to be constructed , while Level 2 will serve enplaning and deplaning
passengers, and will include holdrooms and passenger amenities similar to Concourse A. Level 3 is planned to include
another Delta Sky Club of approximately ________ sf, an approximately 7,800 sf of United club (its first club at the
Airport) and a club developed as a concession for use by all passengers.
Concourse B East is planned to add an additional 26 aircraft gate positions, in three stages, and will complete
the currently planned construction with a total of 47 gates. Concourse B East is being constructed in phases: Under
current projections, five Concourse B East gates are expected to be operational in the fourth quarter of calendar year
(“CY”) 2024, with four more becoming operational by the end of CY 2025, a further five becoming operational in
January 2026, 11 gates becoming operational in January 2027, and one final gate becoming operational in November
of 2027. Once Concourse B is completed, all airlines operating at the Airport are expected to operate from Concourse
B, including use of some gates by Delta, and Delta is expected to occupy all of Concourse A. At completion of the
New SLC, all air carriers at the Airport are expected to operate from substantially similar, new and efficient terminal
facilities.
Central Passenger Tunnel
A central passenger tunnel connecting Concourse B to Concourse A, including moving sidewalks, is under
construction and is anticipated to open in fall of 2024.
Supporting Elements
The supporting elements associated with Concourses A and B East will also be constructed in concert with
the two eastern portions of the Concourses. These include apron site-work and paving, demolition, and extensive
information technology infrastructure. The apron site-work includes all airfield site demolition, utility relocation and
apron paving required to enable the development of Concourses A and B East. Included in this project element are
hydrant fueling and utilities including power, water and sewer and an additional four permanent hardstands, served
from level 1 of Concourse B East.
Project Management of the New SLC
Controls
The Department has established a multi-layered project management team for the New SLC. R.W. Block
Consulting, Inc., subsequently acquired by Anser Advisory (“Anser”) prepared the Plan of Execution that includes a
plan for program management and delivery of the New SLC. Under the Plan of Execution, the program management
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team is competitively procured through pre-qualifying a limited number of firms and then undertaking separate
procurements by soliciting responses from the pre-qualified firms for each of the key roles identified in the plan. The
Plan of Execution also envisions contracting with a flexible team of experts to manage the specific elements of the
New SLC so that, for example, when the rental car facilities were completed and the project management roles for
that project element were no longer required, the contracts for such services were terminated. The external project
management team is overseen and complemented by Department staff.
The Department has established two committees consisting of Department Directors to oversee all capital
projects at the Airport, including the New SLC. The Financial Oversight Committee (“FOC”) is chaired by the
Department’s Chief Financial Officer and includes the Director of Engineering and Chief Operating Officer as the
other members. Before any construction contract for a project at the Airport may proceed, the FOC must authorize
the funding for that project, including the source of funds. Before work may commence on any project, the
Construction Committee (“CC”) must authorize the execution of the construction contract, including each of the
CGMP contracts for the New SLC. The CC is chaired by the Director of Engineering and includes the other members
of the FOC and the Directors of Maintenance, Planning and Capital Programs, and Administration and Commercial
Services. The FOC and CC each meet bi-monthly in scheduled sessions and minutes are taken and published. This
formal review process entails a rigorous and comprehensive examination of all capital projects undertaken by the
Department and helps identify and address differences between estimated and actual construction costs at an early
stage in the approval process.
The Program Director for the New SLC, Making Projects Work, Inc., (a company specializing in airport
project management) reports directly to the Department’s Executive Director and serves as the owner’s authorized
representative under the CMAR Contracts described below. Anser remains engaged as an independent consultant
overseeing financial and program controls and Anser also reports directly to the Executive Director. Ten separate
firms, including Making Projects Work, Inc. and Anser, have been prequalified to participate in competitive processes
for selection of key project management staff. To date, this process has resulted in selection of an external program
management team that peaked at 59 persons from the ten different pre-qualified firms and, as of December 2022,
consisted of 46 staff. The program management team is adjusted as elements of the New SLC are completed.
The interests of the Signatory Airlines are represented by an Airline Technical Representative (“ATR”),
whose rights and responsibilities are set forth in the AUA and who is resident in the City for the duration of the New
SLC project. The ATR was formerly a Delta employee and is now employed by the program management team. The
ATR must be included in development of contract documents for the New SLC, discussions relating to cost controls
and design changes. See “THE AIRPORT – Airline Use Agreement - New SLC” below.
The Department entered into Construction Manager at Risk (“CMAR”) Contracts with two joint ventures,
one with Holder-Big-D Construction, a joint venture (“HDJV”), for the TRP and the other with Austin Commercial
and Okland Construction Company joint venture (“AOJV”) for the initial phase of the NCP, to help manage its risk
for cost increases and project delays. As a result of the rephasing of the New SLC and the temporary postponement
of the second phase of the NCP, the CMAR Contract with AOJV was terminated for convenience. AOJV’s work
under its CMAR Contract has been completed and AOJV has de-mobilized. HDJV has added the final phases of the
NCP and portions of the central passenger tunnel to its existing CMAR Contract.
The CMAR bids separate CGMP Contracts for specified elements of the New SLC. The New SLC has been
broken down into CGMP contracts between the Department, on behalf of the City, and the joint venture undertaking
that element of the New SLC. Each CGMP is designed and bid separately and is subject to review and approval by
the Department prior to execution. There are eleven CGMPs for the TRP and twelve for the NCP. Each CGMP
constitutes an amendment to the applicable CMAR Contract that provides that the CMAR will construct the elements
of the New SLC described in the scope of the applicable CGMP for a guaranteed maximum price, within the schedule
set forth in the CGMP and in accordance with the applicable CMAR Contract. The Department pays only the costs
incurred under the CGMP, up to the guaranteed maximum price. Absent scope changes, should the costs exceed the
guaranteed maximum price, the CMAR is liable for the excess costs, with no reimbursement from the Department,
absent certain specified conditions. This structure provides the Department with a reasonable degree of certainty
regarding the cost of the project and limits cost overruns without Department approval. The timing, completion date
and guaranteed maximum price for the work elements under each CGMP may only be changed by a CGMP
amendment, which requires the approval of the Department. The CMAR Contracts also require the CMAR to provide
specified pre-construction and general conditions services during its term. As of July 1, 2023, 100% of the TRP and
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___% of the NCP by project cost is subject to an executed CGMP and over $____ billion had been expended on New
SLC project costs.
Design
HOK (formerly Helmuth, Obata & Kassabaum, Inc.) is the lead design firm for the New SLC. HOK leads a
team of 14 architect and engineering subconsulting firms that provide all of the planning, engineering and design
services for the New SLC.
Construction
HDJV, comprised of Holder Construction Company and Big-D Construction, was selected through a
competitive process to undertake construction services for the TRP pursuant to a CMAR Contract. Subsequently, the
final phases of the NCP and portions of the central passenger tunnel were added to HDJV’s CMAR Contract. The
HDJV CMAR Contract had an initial term of five years commencing October 25, 2013, and may be extended at the
Department’s sole option. The Department has exercised extension options and extended the term of the HDJV
CMAR Contract through August 5, 2026. In addition, the contract with HDJV can be terminated at various points in
the program and a new CMAR selected, at the option of the Department.
Before the Department enters into a CGMP, the FOC must approve the guaranteed maximum price and the
CC must approve the scope of the work of the CGMP and recommend to the Executive Director that the CGMP be
approved and executed. The CMAR Contracts provide for a formal dispute resolution process that must be undertaken
in the event of a disagreement between the Department and HDJV before any legal action may be commenced. In the
CMAR Contracts, HDJV has acknowledged that it is not entitled to receive any work under the applicable Contract
and has waived all claims for anticipated profits and other claims associated with the Department’s de cision not to
proceed with the New SLC, any CGMP or any portion thereof. All subcontracts must be competitively awarded and
the subcontracts are held by HDJV, and expressly provide that the Department has no contractual relationship with
the subcontractors. HDJV may bid upon and receive up to 20% of the contracts under each CGMP , but only if it
submits the lowest bid in a competitively bid process and receives the approval of the Department, and the remaining
portions of each CGMP must be undertaken by unrelated parties to HDJV.
Each CGMP is for a fixed price under which HDJV bears most risks of cost increases. As of December 31,
2022, each of the executed CGMPs is on or below its fixed amount. [As of July 1, 2023, a CGMP has not been
executed for Phase 4 of the NCP, but the Department has received bids for this final element of the New SLC and is
in the process of negotiating the final CGMPs for these project elements with HDJV.] However, the CMAR Contracts
provide for time extensions under certain limited circumstances. These include changes requested by the Department
after the CGMP is executed, unknown conditions that were not foreseeable at the time the CGMP was executed, delays
caused by the Department, weather conditions outside of the ten -year mean, or force majeure events and remediation
of hazardous materials. Delays because of labor disputes may not result in an extension of time. If a Joint Venture
suffers a delay because of one of these permissible events, the CMAR Contract includes a process for determining the
period of an extension, which cannot exceed one day for each day of delay and requires the Joint Venture to mitigate
delays to the extent possible. In no event are damages permitted beyond the extension of time, such as loss of profits;
indirect, incidental, consequential or special damages; or acceleration costs not approved by the Department ,
permitted.
Other Capital Projects
Other capital projects currently anticipated by the Department to be undertaken or completed during the
period that the various elements of the New SLC will be under construction consist primarily of on -going capital
improvements to existing landside and airside facilities. Cost estimates for the other projected capital projects, as well
as an allowance for yet unidentified projects for maintaining the Airport in a state of good repair, during the period
from FY 2023 through FY 2030 total approximately $385 million. These projects primarily are expected to maintain
the Airport’s airside and landside infrastructure in good repair over the period of construction of the New SLC, as
well as provide for improvements to the facilities at the Auxiliary Airports. Projects expected to be undertaken during
FY 2024 and 2025 include partial reconstruction of the Airport’s taxiways E and F, design and construction of the
South Employee parking lot, an overlay of the TVY runway, and planning for taxiway tunnel and roadway
realignment, among numerous other projects. [UPDATE] The Department may defer or elect not to undertake a
portion of the capital projects included in other capital projects during the projection period, depending on
circumstances such as aviation demand levels and availability of project funding.
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Funding Sources for the New SLC
Overview
The New SLC has been and is being funded from a variety of sources, including Department funds, proceeds
of the Existing Bonds, the Series 2023 Bonds, and additional Bonds to be issued in the future, passenger facility
charges (“PFCs”), customer facility charges (“CFCs”), and grant funds from the FAA Airport Improvement Program
(“AIP”), the Transportation Security Administration (“TSA”) Other Transaction Agreement (“OTA”), and the
Infrastructure Investment and Jobs Act (also known as the “Bipartisan Infrastructure Bill,” or “BIL”). In addition to
the Existing Bonds, and the Series 2023 Bonds, the City expects to issue additional Bonds to fund a total of
approximately $800 million of project costs for the New SLC. The Department may issue Subordinate Revolving
Obligations, from time to time, to finance costs of the New SLC on an interim basis and then repay the Subordinate
Revolving Obligations from various sources of funds, including proceeds of additional Bonds and other available
funds. The Department has applied PFCs to pay-as-you-go projects in prior years, but is now applying most PFCs
collected to pay debt service on outstanding Bonds and expects to use PFCs to pay debt service on portions of the
Series 2023 Bonds and additional Bonds to be issued in the future. CFCs being collected are applied to reimburse the
Department for the costs, including imputed interest, of eligible facilities serving the rental car companies that are
now in service and that were funded with Department funds.
The table below describes the various projected sources of funds that are expected to be used to fund the New
SLC as well as the other capital projects (“Other CIP”). This mix of funding sources is expected to maintain the
Airport’s cost per enplaned passenger at a rate comparable to other Delta hub airports. These amounts reflect the sums
of funds actually expended and anticipated future expenditures. In the AUA, the City has agreed not to recover the
portions of the New SLC funded with Department funds, and none of the project costs funded with AIP or BIL grants,
PFCs or CFCs are included in the airline rate base or recovered through airline rates and charges.
EXPECTED SOURCES OF FUNDS
FOR THE NEW SLC AND OTHER CAPITAL PROJECTS
(Dollars in 000s)
Dept.
Funds
PAYGO
PFCs
PAYGO
CFCs
TSA OTA/
AIP/ BIL
Grants
Prior
Bonds*†
Series
2023
Bonds
Additional
Bonds
Total**
TRP $275,214 $332,838 $199,036 $62,747 $1,831,533 $2,830,055
NCP $295,952 0 0 $117,386 $867,663 $2,304,919
Total
New
SLC**
$463,227
$332,838
$199,036
$180,133
$2,699,196
$5,134,974
Other CIP $322,221 0 0 $____ 0 $385,173
TOTAL:* $893,437 $332,838 $199,060 $180,133 $2,699,196 $5,520,147
*Includes interest earnings.
**Totals may not add due to rounding.
†Includes all Series 2017, 2018 and 2021 Bond proceeds available for construction. Construction proceeds have been fully expended, other than
approximately $20 million of 2021B Bonds proceeds.
Department Funds
The Airport derives revenues from a wide variety of non-aeronautical sources, including parking, rental car
fees, concessions fees and ground transportation fees. Beginning in 1997, the City began reserving excess non-airline
revenues in anticipation of undertaking the New SLC and other capital projects, and as of March 31, 2023, the City
maintained a balance of approximately $__ million in the Surplus Fund available for future development of the Airport
System. The Department has been expending such retained amounts since commencing the New SLC program in
2014. Beginning in FY 2022, the Department determined to use additional money on deposit in the Surplus Fund for
New SLC project costs rather than retain such funding as reserves. The Department regularly applies its internally
generated funds for project costs and the Department expects to continue reimbursing itself from CFCs and AIP, BIL
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and OTA grant funds during the construction of the New SLC. See “APPENDIX B - REPORT OF THE AIRPORT
CONSULTANT – CIP Plan of Finance.”
Airport Revenue Bonds
The City expects to fund approximately $400 million of the costs of the New SLC from proceeds of the Series
2023 Bonds and an additional $800 million of proceeds of Bonds to be issued in the future . Portions of the debt
service payable on the Bonds are expected to be paid with PFCs. See “APPENDIX B - REPORT OF THE AIRPORT
CONSULTANT – CIP Plan of Finance.”
Subordinate Revolving Obligations
The City may issue, from time to time, Subordinate Revolving Obligations to provide interim financing for
certain costs of the New SLC program. [No Subordinate Revolving Obligations are outstanding as of July 1, 2023.]
The Subordinate Revolving Obligations provide the Department with rapid access to capital, greater funding certainty
and additional financial flexibility. See “SECURITY FOR THE SERIES 2023 BONDS – Subordinate Revolving
Obligations.”
PFCs
As of March 31, 2023, the City has received approval from the FAA to impose and use $2.65 billion of PFCs
for projects at the Airport including the TRP, and the City expects to fund approximately $332.8 million of the costs
of the TRP with PAYGO PFCs, out of a total of $1.38 billion of PFCs approved for the TRP. In addition, to the extent
authorized by the FAA, the City has applied and expects to continue to apply in the future additional PFCs to pay
principal of and interest on a portion of the Bonds, including a portion of the Series 2023 Bonds. The City is authorized
to collect a PFC of $4.50 from eligible passengers enplaning at the Airport, of which $0.11 is retained by the collecting
air carriers as a handling fee. Federal law restricts the use of PFCs to certain kinds of projects and, accordingly, based
on current FAA approvals, PFCs may only be used for certain elements of the TRP, including portions of Concourse
A, and airside project elements. As of the date hereof, the City has not sought and does not expect to seek approval
from the FAA to apply PFCs to the costs of the NCP. See “INVESTMENT CONSIDERATIONS – PFC Revenues
and Other Funding Sources.” Due to the resurgence in passenger air travel following the height of the CO VID-19
pandemic, the Department received approximately $49.70 million in PFC revenue during FY 2022, nearly double the
$25.38 million in PFC revenue that the Department received in FY 2021 . PFCs are excluded from the Net Revenues
securing the Bonds pledged under the Master Indenture, but the City may, by execution of a Supplemental Indenture
or a certificate of designation, pledge or otherwise commit PFCs to secure payment of specified Bonds. See
“SECURITY FOR THE SERIES 2023 BONDS – Use of PFCs to Pay Debt Service.” See also, “INVESTMENT
CONSIDERATIONS – PFC Revenues and Other Funding Sources.”
As of March 31, 2023, the Department had collected approximately $___ million and expended
approximately $____ million of its total approved PFC collections on approved projects, including $332.8 million of
pay-as-you-go PFCs for elements of the TRP. The Department expects to expend the majority of PFCs currently on
hand plus a portion of PFCs collected in future years for payment of principal of and interest on Bonds issued to fund
PFC-eligible TRP elements. See “APPENDIX B – REPORT OF THE AIRPORT CONSULTANT – CIP Plan of
Finance.”
CFCs
The City requires rental car companies to collect a CFC of $5 per transaction day, limited to 12 days per
contract, from persons renting automobiles at the Airport. The City expects to apply a total of approximately $199.1
million of CFCs to pay certain costs of the TRP, either direc tly or to reimburse the City for eligible costs previously
funded with Department funds. As of March 31, 2023, approximately $199.1 million of CFCs have been expended
for CFC eligible projects, although the Department expects to reimburse itself in the future for a portion of such costs
as additional CFCs are collected. Although federal law does not restrict the use of CFCs, a City ordinance limits the
use of CFCs only to financing capital improvements at the Airport that support rental car services, including a pro rata
share of joint use infrastructure such as roadways, the portions of the Parking Garage needed for ready/return facilities,
funding debt service associated with rental car facilities or funding the City’s costs for such other rental car r elated
purposes as the City may determine. CFCs are excluded from Net Revenues and the Department does not expect to
issue any CFC revenue bonds. The City also currently does not expect to apply proceeds of the Bonds to finance
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rental car facilities or, accordingly, to pay debt service on Bonds with CFCs. The Department expects to apply CFCs
to the costs of the portion of the recently completed Parking Facility that will serve rental car companies, and elements
of the roadway system serving the rental car facilities. See “APPENDIX B - REPORT OF THE AIRPORT
CONSULTANT – CIP Plan of Finance.”
AIP, BIL, and TSA Grants
The Department expects to apply $209.8 million of AIP grant funds to fund eligible costs of the New SLC.
In addition, the TSA provides certain grant funds through OTAs for in -line baggage screening systems, and the
Department anticipates receiving $15.2 million from the TSA for that element of the TRP. The grant funding available
to airports under the BIL falls into two categories: The BIL provided for two different kinds of capital grants over the
five year term of the program, from federal fiscal year (“FFY”) 2022, ending September 30, 2022, through FFY 2026.
The first are Airport Infrastructure Grant (“AIG”) funds, which are allocated similar to AIP funds on the basis of
enplaned passengers and operational metrics, and Airport Terminal Program (“ATP”) funds, which are subject to
annual competitive allocation. The Department expects to receive approximately $25.2 million in BIL AIG grant
funds annually over the five year period, which it expects to apply to portions of the New SLC and to other capital
improvements at the Airport. The Department also expects to submit applications for ATP program fundin g, and has
received a total of $29 million to date, which is being applied to construction of Concourse B East. See “APPENDIX
B - REPORT OF THE AIRPORT CONSULTANT – CIP Plan of Finance.” The Department has not and does not
expect to apply proceeds of CARES Act, CRRSA or ARPA grants for costs of the New SLC. See “THE AIRPORT
– COVID-19 Outbreak – Department’s Response to COVID-19”.
The City receives grants annually from the FAA pursuant to the AIP and also receives OTA funding from
the TSA from time to time. The AIP grants generally fall into two categories: (i) entitlement grants, which are awarded
based upon the number of passengers enplaned at the Airport as well as entitlement grants based on air cargo
throughout at the Airport, and (ii) discretionary grants, which are awarded at the discretion of the FAA based upon
specified criteria, including a cost-benefit analysis. Similar to many federal grant-in-aid programs, AIP grants are
reimbursement grants. Accordingly, the Department must expend its own cash to fund an authorized project and then
submit invoices to the FAA for reimbursement of such costs pursuant to the terms of the grant. Thus, while grants
may be awarded in one fiscal year, grant funds may be received over a period of several subsequent fiscal years. For
a description of the AIP program, see “INVESTMENT CONSIDERATIONS – FAA Reauthorization and Federal
Funding.”
The Department will continue its practice of fully utilizing the AIP entitlement grants that are awarded to it
to maintain and improve the Airport System, and of aggressively seeking FAA discretionary grants for AIP -eligible
projects. Based on communications with the FAA, the Department currently expects $150,000 in annual AIP
entitlement grants for each of the Auxiliary Airports. For fiscal years 2019-2022, the Department was awarded $228.3
million in FAA AIP grants for projects including conducting an airport master plan study, and runway, taxiway and
apron pavement rehabilitation work. The Department received $52.0 million in AIP grant funds in FY 2022.
However, there can be no assurance that additional grants from the FAA or TSA will be available in the future. See
“INVESTMENT CONSIDERATIONS – FAA Reauthorization and Federal Funding.”
SECURITY FOR THE SERIES 2023 BONDS
Pledge of Net Revenues
The Series 2023 Bonds are limited obligations of the City payable solely from and secured by a pledge of
Net Revenues, certain funds and accounts held by the Trustee under the Indenture, and other amounts payable under
the Indenture. The Series 2023 Bonds will be secured by a pledge of Net Revenues on parity with the Existing Bonds,
and any additional Bonds issued in the future.
“Net Revenues” are defined in the Master Indenture to mean, for any given period, the Revenues for such
period, less the Operation and Maintenance Exp enses of the Airport System for such period.
“Revenues” are defined in the Master Indenture to include, among other things, except to the extent
specifically excluded therefrom, all income, receipts, earnings and revenues received by the City from the oper ation
and ownership of the Airport System for a given period, as determined in accordance with generally accepted
accounting principles, as modified from time to time, including, but not limited to, (1) rates, tolls, fees, rentals, charges
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and other payments made to or owed to the City for the use or availability of the Airport System, (2) amounts received
or owed from the sale or provision of supplies, materials, goods and services provided by or made available by the
City, including rental or business interruption insurance proceeds, received by, held by, accrued to or entitled to be
received by the City or any successor thereto from the possession, management, charge, superintendence and control
of the Airport System and its related facilities or activities and undertakings related thereto or from any other facilities
wherever located with respect to which the City receives payments which are attributable to the Airport System or
activities or undertakings related thereto and (3) Other Pledged Revenues. See “APPENDIX C — FORM OF
MASTER INDENTURE — ARTICLE I — DEFINITIONS; INTERPRETATION” for a more complete definition of
Revenues. CFCs and Capitalized Interest, among other things, are specifically excluded from Revenues unless
otherwise designated as Other Pledged Revenues pursuant to a certificate of the City or in a Supplemental Indenture.
PFCs also are specifically excluded from Revenues, but may be applied to pay principal of and interest on Bonds as
described below. The City has not designated or pledged pursuant to a certificate or a Supplemental Indenture any
PFCs to the payment of Bonds. However, see “— Use of PFCs to Pay Debt Service” below for a discussion of the
City’s past use of and future expectation to use PFCs to pay a portion of the debt service on the Outstanding Bonds
and the Series 2023 Bonds. Additionally, a portion of the interest on the Series 2021 Bonds is payable from Capitalized
Interest through October 1, 2024, and a portion of the interest on the Series 2023 Bonds will be payable from
Capitalized Interest through DATE.
“Operation and Maintenance Expenses of the Airport System” or “O&M Expenses” are defined in the Master
Indenture to mean, for any given period, the total operat ion and maintenance expenses of the Airport System as
determined in accordance with generally accepted accounting principles as in effect from time to time; including any
costs of Credit Facilities and Liquidity Facilities; but excluding depreciation expen se and any operation and
maintenance expenses of the Airport System payable from moneys other than Revenues , including, but not limited to,
any non-cash items that are required to be treated as operation and maintenance expenses of the Airport System in
accordance with generally accepted accounting principles.
The Department operates the Airport and the Auxiliary Airports as the Airport System. The Master Indenture
includes the operation and maintenance costs and revenues of the Auxiliary Airports within the definitions of
“Operation and Maintenance Expenses of the Airport System” and “Revenues.” None of the properties of the Airport
System are subject to any mortgage or other lien for the benefit of the owners of the Bonds, and neither the full faith
and credit nor the taxing power of the City, the State or any political subdivision or agency of the State is pledged to
the payment of the principal of or interest on the Bonds.
Flow of Funds
The City has created and holds and maintains a special fund designated as the Revenue Fund into which all
Revenues and other moneys and funds not included in Revenues are deposited. Pursuant to the Master Indenture and
the Master Subordinate Indenture, the City has agreed to continue to hold and maintain the Revenue Fund.
Additionally, pursuant to the Master Indenture and the Master Subordinate Indenture, the City has covenanted and
agreed to establish, hold and maintain the Revenue Account within the Revenue Fund. As long as there are any
Outstanding Bonds or Outstanding Subordinate Obligations, all Revenues will be deposited in the Revenue Account
and will be set aside for the payment of the following amounts or deposited or transferred to the following funds,
accounts and subaccounts in the following order of priority:
First: to the Operation and Maintenance Subaccount. On or prior to the third Business Day of each month,
the City shall deposit Revenues to the Operation and Maintenance Subaccount in an amount equal
to one-twelfth of the estimated Operation and Maintenance Expenses of the Airport System for the
then current Fiscal Year as set forth in the budget of the City for such Fiscal Year as finally approved
by the City. In the event that the balance in the Operation and Maintenance Subaccount at any time
is insufficient to make any required payments therefrom due and payable between the third Business
Day of the then current month and the second Business Day of the immediately succeeding month,
additional Revenues at least sufficient to make such payments shall immediately be deposited in the
Operation and Maintenance Subaccount from the Revenue Account.
Second: to the Debt Service Funds. Except as otherwise provided in a Supplemental Indenture, on or prior
to the third Business Day of each month, a sufficient amount of Revenues shall be transferred by
the City, without priority and on an equal basis, except as to timing of payment, to the Trustee for
deposit to the Debt Service Funds in the amounts, at the times and in the manner provided in the
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Master Indenture to provide for the payment of principal and interest to become due on the
Outstanding Bonds. In addition to the deposit of Revenues to the Debt Service Funds, the City shall
transfer any applicable Pledged Passenger Facility Charges and/or Passenger Facility Charges
Available for Debt Service to the Trustee for deposit to the applicable Debt Service Fund in
accordance with the provisions of the applicable Supplemental Indenture and/or a certificate of the
City as provided in the Master Indenture. Except as otherwise provided in a Supplemental
Indenture, the amount of Revenues, Pledged Passenger Facility Charges, if any, and Passenger
Facility Charges Available for Debt Service deposited each month shall equal one sixth of the full
amount required to pay the interest on the Outstanding Bonds next coming due and one twelfth of
the principal amount and/or sinking fund installment of the Outstanding Bonds next coming due.
Third: to the Common Debt Service Reserve Fund and Series Debt Service Reserve Funds. On or prior to
the third Business Day of each month, a sufficient amount of Revenues shall be transferred by the
City, without priority and on an equal basis, to the Trustee for deposit to the Common Debt Service
Reserve Fund at the times and in the amounts provided in the Master Indenture, and to any Series
Debt Service Reserve Fund at the times and in the amounts set forth in the Supplemental Indenture
pursuant to which such Series Debt Service Reserve Fund is created. See “— Common Debt Service
Reserve Fund” below.
Fourth: to the Subordinate Obligation Debt Service Funds. Except as otherwise provided in a
Supplemental Subordinate Indenture, on or prior to the third Business Day of each month, a
sufficient amount of Revenues shall be transferred by the City, without priority and on an equal
basis, except as to timing of payment, to the Subordinate Trustee for deposit to the Subordinate
Obligation Debt Service Funds in the amounts, at the times and in the manner provided in the Master
Subordinate Indenture to provide for the payment of principal and interest to become due on the
outstanding Subordinate Obligations. In addition to the deposit of Revenues to the Subordinate
Obligation Debt Service Funds, the City shall transfer any applicable Pledged Passenger Facility
Charges and/or Passenger Facility Charges Available for Debt Service to the Subordinate Trustee
for deposit to the applicable Subordinate Obligation Debt Service Fund in accordance with the
provisions of the applicable Supplemental Subordinate Indenture and/or a certificate of the City as
provided in the Master Subordinate Indenture. Except as otherwise provided in a Supplemental
Subordinate Indenture, the amount of Revenues, Pledged Passenger Facility Charges, if any, and
Passenger Facility Charges Available for Debt Service deposited each month shall equal one sixth
of the full amount required to pay the interest on the outstanding Subordinate Obligations next
coming due and one twelfth of the principal amount and/or sinking fund installment of the
outstanding Subordinate Obligations next coming due.
Fifth: to the Subordinate Obligation Debt Service Reserve Funds. On or prior to the third Business Day of
each month, a sufficient amount of Revenues shall be transferred by the City , without priority and
on an equal basis, to the Subordinate Trustee for deposit to any debt service reserve fund established
by or for the benefit of the City in connection with any Subordinate Obligations, provided, however,
no Revenues shall be transferred by the City to the Subordinate Obligation Trustee for deposit to
any debt service reserve fund established by or for the benefit of the City in connection with any
Subordinate Obligations if amounts (including any Debt Service Reserve Fund Surety Policy) in the
Common Debt Service Reserve Fund are not sufficient to meet the Reserve Requirement or amounts
(including any Debt Service Reserve Fund Surety Policy) in any Series Debt Service Reserve Fund
are not sufficient to meet the applicable Reserve Requirement for such Series Debt Service Reserve
Fund. No Subordinate Obligation Debt Service Reserve Fund has been, or is expected to be,
established for the Subordinate Revolving Obligations.
Sixth: to the Operation and Maintenance Reserve Subaccount. On or prior to the third Business Day of
each month, sufficient Revenues shall be deposited to the Operation and Maintenance Reserve
Subaccount to fund any deficiency in the Operation and Maintenance Reserve Subaccount in
accordance with the Master Indenture and the Master Subordinate Indenture.
Seventh: to the Renewal and Replacement Subaccount. On or prior to the third Business Day of each
month, sufficient Revenues shall be deposited to the Renewal and Replacement Subaccount to fund
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any deficiency in the Renewal and Replacement Subaccount in accordance with the Master
Indenture and the Master Subordinate Indenture.
Eighth: to the Rolling Coverage Account. On or prior to the third Business Day of each month, at the
discretion of the City, Revenues may be deposited to the Rolling Coverage Account in an amount
determined by the City to fund the Rolling Coverage Account in accordance with the Master
Indenture and the Master Subordinate Indenture.
Ninth: to the Surplus Fund. At the discretion of the City, all or a portion of the remaining Revenues may
be deposited to the Surplus Fund to be used for any lawful Airport System purpose.
Pursuant to the Master Indenture and the Master Subordinate Indenture, the City has created, within the Revenue
Fund, separate funds, accounts or subaccounts for the deposit of CFCs and PFCs that have not been designated as
Revenues. See “—Use of PFCs to Pay Debt Service” below for a discussion of the City’s expectation to use PFCs to pay
a portion of the debt service on Bonds, including the Series 2023 Bonds.
The following chart provides a graphic presentation of the flow of funds under the Master Indenture and the
Master Subordinate Indenture upon the receipt of Revenues.
Flow of Funds Pursuant to Master Indenture
REVENUES1
REVENUE ACCOUNT
OPERATION AND MAINTENANCE
SUBACCOUNT *
DEBT SERVICE FUNDS **
COMMON DEBT SERVICE RESERVE FUND AND SERIES DEBT
SERVICE RESERVE FUNDS **
SUBORDINATE OBLIGATION DEBT SERVICE FUND(S)***
SUBORDINATE OBLIGATION DEBT SERVICE RESERVE
FUNDS***
OPERATION AND MAINTENANCE RESERVE SUBACCOUNT *
RENEWAL AND REPLACEMENT SUBACCOUNT *
ROLLING COVERAGE ACCOUNT *
Passenger Facility Charges
Available for Debt Service
and Pledged Passenger
Facility Charges
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*Maintained within the Revenue Account of the Department.
**Held and maintained by the Trustee.
***Held and maintained by the Subordinate Trustee.
(1) Revenues do not include PFC or CFC revenues.
SURPLUS FUND Any Lawful Purpose of
the Department
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Rate Covenant
The City has covenanted in the Master Indenture that, while any of the Bonds (including the Series 2023
Bonds) remain Outstanding, it will establish, fix, prescribe and collect rates, tolls, fees, rentals and charges in
connection with the Airport System and for services rendered in connection therewith, so that:
(a) Revenues in each Fiscal Year will be at least equal to the followin g amounts:
(i) Operation and Maintenance Expenses of the Airport System due and payable during such
Fiscal Year;
(ii) the Annual Debt Service on any Outstanding Bonds required to be funded by the City in
such Fiscal Year as required by the Master Indenture or any Supplemental Indenture with respect to the
Outstanding Bonds;
(iii) the required deposits to the Common Debt Service Reserve Fund or any Series Debt
Service Reserve Fund which may be established by a Supplemental Indenture;
(iv) the reimbursement owed to any Credit Provider or Liquidity Provider as required by a
Supplemental Indenture;
(v) the interest on and principal of any indebtedness of the City issued on behalf of the
Department required to be funded during such Fiscal Year, other than for Outstanding Bonds, but including
Subordinate Obligations; and
(vi) funding of any debt service reserve funds created with respect to any indebtedness of the
City issued on behalf of the Department, other than Outstanding Bonds, but including Subordinate
Obligations.
(b) During each Fiscal Year the Net Revenues, together with any Transfer, will be equal to at least
125% of Annual Debt Service on the Outstanding Bonds for such Fiscal Year. For purposes of this paragraph (b), the
amount of any Transfer taken into account cannot exceed 25% of Annual Debt Service on the Outstanding Bonds in
such Fiscal Year.
“Transfer” is defined in the Master Indenture to mean (a) the amount on deposit, if any, on the last Business
Day of the applicable Fiscal Year in the Rolling Coverage Account plus (b) any amounts withdrawn from the Rolling
Coverage Account during such Fiscal Year to pay Operation and Maintenance Expenses of the Airport System , to
make any required payments or deposits to pay or secure the payment of principal of and/or interest on the Bonds and
Subordinate Obligations, if any, or to pay the cost of any additions, improvements, repairs, renewals or replacements
to the Airport System, less (c) any amounts deposited in the Rolling Coverage Account from Revenues during such
Fiscal Year.
For purposes of paragraphs (a) and (b) above, Annual Debt Service on the Outstanding Bonds will be reduced
by the amount of principal and/or interest paid with Capitalized Interest, Passenger Facility Charges Available for
Debt Service and/or Pledged Passenger Facility Charges. See “APPENDIX C – FORM OF MASTER INDENTURE
– ARTICLE IV - REVENUES; FUNDS AND ACCOUNTS – Section 4.15 - Passenger Facility Charges Available
for Debt Service.”
The Department was granted a total of $183.9 million of federal relief grants (excluding concession relief of
$13.75 million) under the three programs adopted by Congress providing financial relief to airports during the COVID -
19 pandemic. See “THE AIRPORT – COVID-19 Outbreak – Department’s Response to COVID-19.” The table
below shows the application of these federal relief funds by the Department by Fiscal Year. The Department expects
to have expended all such relief funds by December 2023. The Departm ent has applied and expects to continue to
apply these relief funds to reimburse itself for O&M Expenses. Although these grant funds are not Revenues under
the Master Indenture, by applying them to fund O&M Expenses, the Department is better able to meet the requirements
of paragraph (a) and (b) above of the Rate Covenant, since the grant funds applied reduce the amount of Revenues
required to pay O&M Expenses, thus increasing Net Revenues.
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Federal COVID-19 Relief Grants (in $ millions)
Total FY2020 FY 2021 FY 2022 FY 2023 FY 2024†
CARES Act $82.5 $3.9 $66 $12.6 -- --
CRRSA* 20.6 -- -- 20.6 -- --
ARPA** 80.8 -- -- 6.8 $37 $37
Total $183.9 $3.9 $66.0 $40.0 $37.0 $37.0
Source: Department
*Concession relief of $2.75 million not included
**Concession relief of $11.0 million not included
†Budgeted
The AUA also provides for extraordinary coverage protection if the Department expects to fail to meet the
rate covenant under the Master Indenture. Under the AUA, if in any Fiscal Year the amount of Revenues less
Operating Expenses is projected to be less than the sum of the principal of, premium, if any, and interest due in that
Fiscal Year on the Bonds and Subordinate Obligations then Outstanding, plus 25% of such Debt Service on Bonds
and the amount required under the agreement providing for the issuance of such Subordinate Obligations, then the
Signatory Airlines will make extraordinary coverage protection payments in addition t o landing fees and terminal
rents. See “THE AIRPORT – Airline Use Agreement – Rates and Charges” below.
If Revenues and Net Revenues, together with any Transfer , in any Fiscal Year are less than the amounts
specified in paragraphs (a) and (b) above, the City is required to retain and direct a Consultant to make
recommendations as to the revision of the City’s business operations and its schedule of rates, tolls, fees, rentals and
charges for the use of the Airport System and for services rendered by the City in connection with the Airport System,
and after receiving such recommendations or giving reasonable opportunity for such recommendations to be made,
the City will take all lawful measures to revise the schedule of rates, tolls, fees, rentals and charges as may be necessary
to produce Revenues and Net Revenues, together with any Transfer in the amounts specified in paragraphs (a) and (b)
above in the next succeeding Fiscal Year.
In the event that Revenues or Net Revenues for any Fiscal Year are less than the amounts specified in
paragraphs (a) or (b) above, but the City has, prior to or during the next succeeding Fiscal Year, promptly taken all
lawful measures to revise the schedule of rates, tolls, fees, rentals and charges as required by the provisions set forth
in the prior paragraph, such deficiency in Revenues or Net Revenues will not constitute an Event of Default under the
Master Indenture. Nevertheless, if after taking the measures required by the provisions set forth in the prior paragraph
to revise the schedule of rates, tolls, fees, rentals and charges, Revenues or Net Revenues in the next succeeding Fiscal
Year (as evidenced by the audited financial statements of the City for such Fiscal Year) are less than the amounts
specified in paragraphs (a) and (b) above, such deficiency in Revenues or Net Revenues will constitute an Event of
Default under the Master Indenture.
See “THE AIRPORT –The Airline Use Agreement” for a discussion regarding certain limits on the ability
of the City to raise fees to be charged to the Signatory Airlines.
Common Debt Service Reserve Fund
Pursuant to the Master Indenture, the City established the Common Debt Service Reserve Fund (the
“Common Reserve Fund”) with the Trustee to secure any Bonds the City elects to participate in the Common Reserve
Fund. At the time of issuance of the Outstanding Bonds, the City elected to have each series of the Outstanding Bonds
participate in the Common Debt Service Reserve Fund and, at the time of issuance of the Series 2023 Bonds, the City
will elect to have the Series 2023 Bonds participate in the Common Reserve Fund. The Outstanding Bonds, the Series
2023 Bonds and any additional Bonds the City elects to have participate in the Common Reserve Fund are collectively
referred to in this Official Statement as the “Common Reserve Fund Participating Bonds.”
Moneys held in the Common Reserve Fund will be used for the purpose of paying principal of and interest
on the Common Reserve Fund Participating Bonds on a parity basis. If, on any Payment Date for the Common Reserve
Fund Participating Bonds, the amounts in the Debt Service Funds for such Bonds are insufficient to pay in full the
amount then due on such Bonds, moneys held in the Common Reserve Fund will be used for the payment of the
principal of and/or interest thereon. If amounts in the Common Reserve Fund consist of both cash and one or more
Debt Service Reserve Fund Surety Policies, the Trustee will make any required payments of amounts in the Common
Reserve Fund first from any cash on dep osit in the Common Reserve Fund prior to making a draw upon any such
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Debt Service Reserve Fund Surety Policy. Moneys held in the Common Reserve Fund also may be used to make any
deposit required to be made to the Rebate Fund created for the Common Reserve Fund Participating Bonds at the
written direction of the City if the City does not have other funds available from which such deposit can be made.
The Common Reserve Fund is required to be funded at all times in an amount equal to the Reserve
Requirement. The “Reserve Requirement” is equal to the lesser of (a) Maximum Aggregate Annual Debt Service for
all Outstanding Common Reserve Fund Participating Bonds, (b) ten percent of the original principal amount of the
Outstanding Common Reserve Fund Participating Bonds, less the amount of original issue discount with respect to
such Common Reserve Fund Participating Bonds if such original issue discount exceeded 2% on such Common
Reserve Fund Participating Bonds at the time of their original sale, and (c) 125% of the average Aggregate Annual
Debt Service for the Outstanding Common Reserve Fund Participating Bonds. At the time of issuance of any
additional Bonds which the City elects to have participate in the Common Reserve Fund, the Reserve Requirement is
required to be met at the time of such issuance. The City may fund all or a portion of the Reserve Requirement with
a Debt Service Reserve Fund Surety Policy. See “APPENDIX C – FORM OF THE MASTER INDENTURE -
ARTICLE IV – REVENUES; FUNDS AND ACCOUNTS– Section 4.06 Common Debt Service Reserve Fund and
Series Debt Service Reserve Funds.” As of March 31, 2023, $______ million was on deposit in the Common Reserve
Fund. At the time of issuance of the Series 2023 Bonds, a portion of the proceeds of the Series 2023 Bonds in the
amount of $__________ will be deposited to the Common Reserve Fund to meet the Reserve Requirem ent, which
will be $__________ and will be fully funded upon such deposit. Funds in the Common Reserve Fund are invested
in Permitted Investments. See “– Permitted Investments” below.
Additional Bonds
The Master Indenture provides the City with flexibility as to establishing the nature and terms of any
additional Bonds hereafter issued with a lien and charge on Net Revenues on parity with the Outstanding Bonds and
the Series 2023 Bonds. For example, the Master Indenture provides for the issuance of Variable Rate Indebtedness,
Capital Appreciation Bonds and Balloon Indebtedness on a parity with the Series 2023 Bonds. See “APPENDIX C –
FORM OF MASTER INDENTURE – ARTICLE II - FORM, EXECUTION, DELIVERY AND REGISTRATION
OF BONDS – Section 2.11 – Additional Bonds Test.” Additional Bonds may be issued under the Master Indenture
on a parity with the Series 2023 Bonds and the Existing Bonds, provided, among other things, that there is delivered
to the Trustee either:
(a) a certificate, dated as of a date between the date of pricing of the Bonds being
issued and the date of delivery of such Bonds (both dates inclusive), prepared by an Authorized City
Representative showing that the Net Revenues for the last audited Fiscal Year or for any 12 consecutive
months out of the most recent 18 consecutive months immediately preceding the date of issuance of the
proposed Series of Bonds, together with any Transfer for the most recently ended Fiscal Year, were at least
equal to 125% of Maximum Aggregate Annual Debt Service, which excludes Capitalized Interest, with
respect to all Outstanding Bonds and the proposed Series of Bonds, calculated as if the proposed Series of
Bonds were then Outstanding; or
(b) a certificate, dated as of a date between the date of pricing of the Bonds being
issued and the date of delivery of such Bonds (both dates inclusive), prepared by a Consultant, with national
recognition as experts in the area of air traffic and airport financia l analysis, showing that:
(i) the Net Revenues for the last audited Fiscal Year or for any 12
consecutive months out of the most recent 18 consecutive months immediately preceding the date
of issuance of the proposed Series of Bonds, together with any Transfer for the most recently ended
Fiscal Year, were at least equal to 125% of the sum of the Annual Debt Service due and payable
with respect to all Outstanding Bonds for such applicable period; and
(ii) for the period from and including the first full Fiscal Year following the
issuance of such proposed Series of Bonds during which no interest on such Series of Bonds is
expected to be paid from the proceeds thereof through and including the later of: (A) the fifth full
Fiscal Year following the issuance of such Series of Bonds, or (B) the third full Fiscal Year during
which no interest on such Series of Bonds is expected to be paid from the proceeds thereof, the
estimated Net Revenues, together with any estimated Transfer, for each such Fiscal Year, will be at
least equal to 125% of the Aggregate Annual Debt Service for each such Fiscal Year with respect
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to all Outstanding Bonds and calculated as if (y) the proposed Series of Bonds were then
Outstanding, and (z) any future Series of Bonds which the City estimates will be required to
complete payment of the estimated costs of construction of such portion of the Specified Project and
any other uncompleted portion of the Specified Project from which the Consultant projects
additional Revenues will be generated were then Outstanding.
For purposes of paragraphs (a) and (b) above, the amount of any Transfer taken into account cannot exceed
25% of the Aggregate Annual Debt Service on the Outstanding Bonds, the proposed Series of Bonds and any future
Series of Bonds required to complete the Specified Project as described above. The components of Aggregate Annual
Debt Service are to be calculated as provided in the Master Indenture. See “APPENDIX C – FORM OF MASTER
INDENTURE – ARTICLE II - FORM, EXECUTION, DELIVERY AND REGISTRATION OF BONDS – Section
2.11 – Additional Bonds Test.”
For purposes of subparagraph (b)(ii) above, in estimating Net Revenues, the Consultant may take into account
(1) Revenues from Specified Projects or other Airport Facilities reasonably exp ected to become available during the
period for which the estimates are provided, (2) any increase in fees, rates, charges, rentals or other sources of
Revenues which have been approved by the City and will be in effect during the period for which the esti mates are
provided, and (3) any other increases in Revenues which the Consultant believes to be a reasonable assumption for
such period. With respect to Operation and Maintenance Expenses of the Airport System, the Consultant will use
such assumptions as the Consultant believes to be reasonable, taking into account: (x) historical Operation and
Maintenance Expenses of the Airport System, (y) Operation and Maintenance Expenses of the Airport System
associated with the Specified Projects and any other new Airport Facilities, and (z) such other factors, including
inflation and changing operations or policies of the City, as the Consultant believes to be appropriate. The Consultant
will include in the certificate or in a separate accompanying report the calculations and assumptions made in
determining the estimated Net Revenues and will also set forth the calculations of Aggregate Annual Debt Service,
which calculations may be based upon information provided by another Consultant.
For purposes of preparing the certificate or certificates described above, the Consultant or the Authorized
City Representative may reasonably rely upon financial information provided by the City.
At the time of issuance of the Series 2023 Bonds, the Airport Consultant will deliver a certificate as described
in paragraph (b) above to the Trustee.
Neither of the certificates described in paragraphs (a) or (b) above will be required if:
(i) the Bonds being issued are for the purpose of refunding then Outstanding Bonds
and there is delivered to the Trustee, instead, a certificate of an Authorized City Representative or Consultant
showing that Maximum Aggregate Annual Debt Service after the issuance of such Refunding Bonds will not
exceed the Maximum Aggregate Annual Debt Service prior to the issuance of such Refunding Bonds; or
(ii) the Bonds being issued constitute Notes and there is delivered to the Trustee,
instead, a certificate prepared by an Authorized City Representative or a Consultant showing that the
principal amount of the proposed Notes being issued, together with the principal amount of any Notes then
Outstanding, does not exceed 10% of the Net Revenues for any 12 consecutive months out of the most recent
24 months immediately preceding the issuance of the proposed Notes; or
(iii) the Bonds being issued are Completion Bonds and the following written
certificates are delivered to the Trustee (A) a Consultant’s certificate stating that the nature and purpose of
such Project has not materially changed and (B) a certificate of an Authorized City Representative to the
effect that (1) all of the proceeds (including investment earnings on amounts in the Construction Fund
established for the Project) of the original Bonds issued to finance such Project have been or will be used to
pay Costs of the Project and (2) the then estimated Costs of the Project exceed the sum of the Costs of the
Project already paid plus moneys available in the Construction Fund established for the Project (including
unspent proceeds of Bonds previously issued for such purpose). “Completion Bonds” are defined in the
Master Indenture as Bonds issued to pay costs of completing a Project for which Bonds have previously been
issued and the principal amount of such Bonds being issued for completion purposes does n ot exceed an
amount equal to 15% of the principal amount of the Bonds originally issued for the Project. The Series 2023
Bonds and any additional Bonds to be issued to finance additional costs of the New SLC will not be deemed
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to constitute Completion Bonds under the Master Indenture. See “APPENDIX C – FORM OF MASTER
INDENTURE – ARTICLE I – DEFINITIONS; INTERPRETATION.”
The City expects to issue additional Bonds in the future to finance the development of the Airport System.
See “THE AIRPORT REDEVELOPMENT PROGRAM – Funding Sources.”
Use of PFCs to Pay Debt Service
Pursuant to the Master Indenture, PFC revenues are excluded from the definition of Revenues and, therefore,
are not pledged to the payment of debt service on the Bonds, except for Pledged Passenger Facility Charges, which
are subject to the pledge of the Master Indenture but do not constitute Revenues . However, PFC revenues may still
be applied to pay debt service on Bonds that financed PFC-eligible projects in two separate ways. The City may
designate specified PFC revenues as Passenger Facility Charges Available for Debt Service. Passenger Facility
Charges Available for Debt Service are transferred to the Trustee and deposited directly into a City designated Debt
Service Fund to be used to pay debt service on a specific Series of Bonds. The City may also pledge specified PFC
revenue to secure designated Bonds as Pledged Passenger Facility Charges. Pledged Passenger Facility Charges are
also transferred to the Trustee and deposited directly into a City designated Debt Service Fund to be used to pay debt
service on a specific Series of Bonds. The City has not elected, and the City has no current plans to elect, to designate
PFCs as Pledged Passenger Facility Charges. The City expects, however, to the extent approved by the FAA, to use
PFCs as Passenger Facility Charges Available for Debt Service to pay a portion of the debt service on the Series 2023
Bonds, as well as the Outstanding Bonds, that financed PFC-eligible projects. Debt service paid with PFCs, whether
designated as Passenger Facility Charges Available for Debt Service and/or Pledged Passenger Facility Charges , is
not included in the calculation of the rate covenant set forth in the Master Indenture, and debt service o n additional
Bonds expected to be paid from PFCs is not included in the additional bonds test set forth in the Master Indenture.
For additional information regarding PFCs and the City’s expected use of PFC revenues, see “APPENDIX B –
REPORT OF THE AIRPORT CONSULTANT.”
Permitted Investments
Moneys and funds held by the City will be invested in Permitted Investments, subject to any restrictions set
forth in the Master Indenture and subject to restrictions imposed upon the City by the State Money Management Act.
Moneys and funds held by the Trustee under the Master Indenture, including moneys in the respective Debt Service
Funds, and the accounts therein, and the Common Reserve Fund, may be invested as directed by the City in Permitted
Investments, subject to the restrictions set forth in the Master Indenture and subject to restrictions imposed upon the
City by the State Money Management Act. See “THE AIRPORT— Financial Considerations - Investment Policy”
herein.
Events of Default and Remedies; No Acceleration
Events of Default under the Master Indenture and related remedies are described in “APPENDIX C—FORM
OF THE MASTER INDENTURE—ARTICLE VIII – DEFAULTS AND REMEDIES.” The occurrence of an Event
of Default does not grant any right to accelerate payment of the Bonds , including the Series 2023 Bonds and the
Existing Bonds, to either the Trustee or the Holders of the Bonds. The Trustee is authorized to take certain actions
upon the occurrence of an Event of Default, including proceedings to enforce the obligations of the City under the
Master Indenture. If there is an Event of Default, payments, if any, on the Bonds will be made after payments of
Operation and Maintenance Expense of the Airport System. Since Net Revenues are Revenues net of all amounts
needed to pay Operation and Maintenan ce Expense of the Airport System, and the City is not subject to involuntary
bankruptcy proceedings, the City may be able to continue indefinitely collecting Revenues and applying them to the
operation of the Airport System even if an Event of Default has occurred and no payments are being made on the
Bonds.
Subordinate Obligations (Subordinate Revolving Obligations)
The Master Subordinate Indenture provides for the issuance and/or incurrence, from time to time, of debt
obligations of the City secured by and payable from a pledge of Subordinate Revenues (as defined below), including,
without limitation, bonds, notes, bond anticipation notes, commercial paper, revolving lines of credit, obligations
incurred pursuant to an interest rate swap agreement, obligations incurred through lease or installment purchase
agreements or certificates of participation, and certain other obligations (collectively, “Subordinate Obligations”).
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“Subordinate Revenues” mean all Revenues remaining after the City has provided for the payment of
Operation and Maintenance Expenses of the Airport System, the payment of debt service on the Bonds and any
amounts necessary to replenish the Common Debt Service Reserve Fund (or any other debt service reserve fund
established to secure one or more series of Bonds).
Pursuant to the Master Subordinate Indenture, the First Supplemental Subordinate Indenture and the
Subordinate Revolving Obligations Credit Agreement, the City is authorized to issue and have outstanding, from time
to time, up to $150,000,000 in aggregate principal amount of Subordinate Revolving Obligations. When Subordinate
Revolving Obligations are issued, all of the Subordinate Revolving Obligations issued by the City are purchased by
the Subordinate Revolving Obligations Bank (JPMorgan Chase Bank, National Association) in accordance with the
terms of the Subordinate Revolving Obligations Credit Agreement. Except as otherwise provided in the Subordinate
Revolving Obligations Credit Agreement, the principal of all Subordinate Revolving Obligations outstanding pursuant
the Master Subordinate Indenture, the First Supplemental Subordinate Indenture and the Subordinate Revolving
Obligations Credit Agreement are due and payable on March 1, 2024. However, subject to the terms of the
Subordinate Revolving Obligations Credit Agreement, on March 1, 2024, the City can convert any outstanding
Subordinate Revolving Obligations to a term loan that will be payable in six equal semi-annual installments following
March 1, 2024. As of the date of this Official Statement, there are no outstanding Subordinate Obligations.
Upon the occurrence of an event of default under the Subordinate Revolving Obligations Credit Agreement,
the Subordinate Revolving Obligations Bank may terminate its obligation to make revolving loans, bring a legal action
to take any action that may appear necessary to collect amounts due to the Subordinate Revolving Obligations Bank
and exercise any and all remedies the Subordinate Revolving Obligations Bank may have under the Subordinate
Revolving Obligations Credit Agreement and the Subordinate Indenture. The Subordinate Revolving Obligations
Bank is not permitted to accelerate amounts due under the Subordinate Revolving Obligations Credit Agreement or
the Subordinate Indenture.
Reference is made to the Subordinate Indenture and the Subordinate Revolving Obligations Credit
Agreement for the complete terms of such documents. Copies of the Master Subordinate Indenture, the First
Supplemental Subordinate Indenture and a redacted copy of the Subordinate Revolving Obligations Credit Agreement
are posted on EMMA.
Other Covenants of the City
Pursuant to the Master Indenture, the City has agreed to other covenants for the benefit of the holders of the
Bonds, including the Series 2023 Bonds, in addition to those described above. For example, the City has covenanted
not to issue any bonds or other obligations with a lien on or security interest in the Net Revenues which is superior to
the Bonds, not to enter into any contracts or take any actions that are inconsistent with the Master Indenture, and to
operate and maintain the Airport System in good working order. The City also has retained the right under the Master
Indenture to issue obligations secured by a pledge of Net Revenues which is subordinate to the lien securing the Bonds,
and to issue special facilities obligations that are not secured by a pledge of Net Revenues but that are secured only
by revenues derived from a specified Special Facility. See “APPENDIX C – FORM OF THE MASTER
INDENTURE – ARTICLE V – COVENANTS OF THE CITY.”
THE AIRPORT
Overview
The Airport serves as the principal airport for the Salt Lake City metropolitan region, the State and portions
of Colorado, Idaho, Nevada, and Wyoming. See “APPENDIX B – REPORT OF THE AIRPORT CONSULTANT –
Role of the Airport.” Based on final data from the FAA, approximately 10.80 million enplaned passengers boarded
aircraft at the Airport in CY 2021, ranking it 20th in the United States. This was an increase of approximately 80.5%
as compared to FAA data for CY 2020. The number of enplaned passengers rose in CY 2021 largely as a result of
the national recovery from the COVID-19 pandemic and resulting growth in demand for air travel.
All the major network airlines and four low-cost carriers (“LCCs”) operate at the Airport. The Airport is also
a primary hub airport for Delta. Delta and its regional partners carried 73.4% of the enplaned passengers at the Airport
in FY 2022. The Airport served a total of over 25.5 million passengers in FY 2022. The Airport operates efficiently
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and is frequently ranked first among similarly sized U.S. airports for on-time arrivals and departures by OAG Aviation
Worldwide Limited.
The Airport also has significant cargo operations. Approximately 227,355 U.S. tons of freight and mail were
loaded and unloaded on and off aircraft at the Airport in FY 2022. Based on data from Airports Council International-
North America (“ACI-NA”), the Airport was ranked the 32nd busiest cargo airport in the U.S. for CY 2021 with 205,472
metric tons of cargo. Also, in CY 2021, ACI-NA data shows that the Airport had over 342,000 aircraft movements
or operations, ranking the Airport 14th in the U.S. and 16th in the world for aircraft movements.
The Airport’s Air Service Area
The Airport is the primary commercial air service facility serving the Salt Lake City metropolitan area and
the surrounding region. The Airport has essentially no competition from other airports within the region, with no
other large commercial service airports being located within 400 highway miles of the Airport. The geographical
region that serves as an airport’s primary air service catchment area generally is referred to as its primary Air Service
Area. The Airport’s primary Air Service Area is defined as the Salt Lake City-Provo-Orem Combined Statistical Area
(“CSA”), which includes 10 counties in Utah. The Salt Lake City-Provo-Orem CSA is the 22nd most populous CSA
in the U.S., with approximately 2.7 million people, or approximately 82.2% of the population in the entire State. In
many cases, an Air Service Area can extend beyond the primary area, depending on the location of other population
centers and availability of other commercial service airports; however, it is generally the ec onomic strength of the
primary Air Service Area that provides the principal demand for supporting origin and destination (“O&D”) air travel,
which refers to persons who begin or end their air travel at the Airport. In the case of the Airport, its secondary air
service area generally consists of the remainder of the State and portions of Colorado, Idaho, Nevada and Wyoming.
The chart below shows the Airport’s Air Service Area and its location in the State.
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Because the Airport is isolated from competing airport facilities, it has limited, if any , competition for air
service. Las Vegas McCarran International Airport (LAS) is the closest comparable airport, which is approximately
435 driving miles from the Airport. Denver International Airport (DIA) is the next closest at approximately 530
driving miles from the Airport. Boise Airport (BOI) in Idaho is about 340 driving miles from the Airport; however,
it is a smaller facility and is classified as a Medium Hub by the FAA. There are no other comparable facilities to the
Airport within the State in terms of air service. The next largest commercial service airport in Utah is St. George
Regional Airport (SGU), which is much smaller than the Airport. SGU had 153,200 enplaned passengers for CY
2021, and was ranked as the 191st largest airport in the U.S. by enplaned passengers according to data from the FAA.
The Airport’s Air Service Area recently has experienced population growth considerably above the national
average, and its labor force is also growing, while Utah’s unemployment rate of 2.2% was more than a point below
the national rate of 3.5% as of December 2022. Utah has experienced net in-migration in 13 of the past 32 years and
in the past two years, in-migration has driven population growth. The region’s diverse economy includes banking and
finance, the largest component of the gross regional product (“GRP”); transportation and distribution, as the City is a
point of convergence for east-west rail lines and both east-west and north-south interstate highways; manufacturing
and mining; and a growing technology sector. The Church of Jesus Christ of Latter-Day Saints is headquartered in
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the City and is responsible for a significant amount of passenger air traffic through the Airport associated with both
business activities of the Church as well as missionary trips. [more to come] The area is also a regional healthcare
and education hub, with three research hospitals and the only academic medical center in the Intermountain West, and
all three of the State’s major universities are within 70 miles of the Airport. Lastly, the area is a significant tourist
destination, and a significant number of sports and outdoor products companies such as Black Diamond, Gregory
Mountain Products, Huish, and Petzl have large operations in the region. Salt Lake City will host national Outdoor
Retailer trade shows in June 2023 (Outdoor Retailer Summer) and November 2023 (Outdoor Retailer Winter). Many
well-known, world-class ski resorts are located within an hour’s drive of the Airport and these resorts are increasingly
becoming year-round destinations for golfing, hiking, mountain biking and other outdoor activities. Five national
parks are located in Utah, along with numerous National Recreation Areas, and the Airport is centrally located to
provide access to other western U.S. National Parks. This diverse economy supports a strong O&D market,
complemented by Delta’s connecting activity at the Airport. For additional information regarding the Airport’s Air
Service Area and demographics, see “APPENDIX B – REPORT OF THE AIRPORT CONSULTANT – Role of the
Airport and Economic Base for Air Traffic.”
The City
The Airport is owned by the City, a municipal corporation and political subdivision of the State. The City
owns three airports: the Airport, South Valley and Tooele, all of which are operated and managed by the Department.
The Mayor of the City and the City Council oversee the Department’s affairs. An eleven-member Airport Advisory
Board of citizen volunteers advises the Mayor.
The City has a Council-Mayor form of government. The City Council consists of seven members, who are
elected by voters within seven geographic districts of approximately equal population. The Mayor is elected at large
by the voters of the City and is charged with the e xecutive and administrative duties of the government.
The seven-member, part-time City Council is charged with the responsibility of performing the legislative
functions of the City. The City Council performs three primary functions: It passes laws for the City, including
approving issuance of debt; adopts the City budget, including, as a part thereof, the budget of the Department ; and
conducts management and operational audits of City departments.
Term information concerning the Mayor and the members of the City Council is set forth below:
Office District Person
Years in
Service
Expiration of
Current Term
Mayor -- Erin J. Mendenhall 3 January 2025
Council Chair #5 Darin Mano 3 January 2026
Council Vice Chair #1 Victoria Petro-Eschler 1 January 2026
Council Member #2 Alejandro Puy 1 January 2026
Council Member #3 Chris Wharton 5 January 2026
Council Member #4 Ana Valdemoros 5 January 2024
Council Member #6 Dan Dugan 3 January 2024
Council Member #7 Amy Fowler 5 January 2026
In February 1976, the City created the Airport Advisory Board to provide advice with respect to broad matters
of policy affecting the operation of the Airport System. All actions taken by the Airport Advisory Board constitute
recommendations to the Mayor. The Mayor has the power to review, ratify, modify, or veto any action submitted by
the Airport Advisory Board. The members of the Airport Advisory Board are Theresa Foxley, Chair, John Bradshaw,
Vice Chair, Jess Bird, Roger Boyer, Arlyn Bradshaw, Dirk Burton, Tye Hoffman, Hoang Nguyen, Victoria Petro-
Eschler, as City Council Member from District 1 , and Steve Price.
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Airport Management
The day-to-day operations of the Airport System are managed by the Executive Director of the Department,
who reports directly to and is appointed by the Mayor. The Department’s nine Division Directors oversee each of the
primary operating and administrative divisions of the Department , and include the director of Operational Readiness,
Activation, and Transition that is intended to oversee the acceptance and start-up of the facilities comprising the New
SLC and is expected to be phased out at the conclusion of the New SLC project, and all Directors report to the
Executive Director. The executive team of the Department is a full-time staff of professional and technical personnel
located at the Airport. In addition to the Executive Director, the executive team of the Department is comprised of
the Chief Operating Officer, to whom the Director of Operations reports, along with Airport police and fire fighting,
and the following nine Directors: (1) Administration and Commercial Services, (2) Airport Design and Construction
Management, (3) Finance, (4) Operational Readiness, Activation, and Transition, (5) Maintenance, (6) Director of
Airport Operations, (7) Planning and Environmental, (8) Information Technology, and (9) Communications and
Marketing. Brief biographies of the members of the Department’s management team are set forth below.
Bill Wyatt, Executive Director
Bill Wyatt began serving as the Executive Director of the Department in November 2017. Prior to joining
the Department, Mr. Wyatt served for 16 years as the Executive Director for the Port of Portland, Oregon, where he
oversaw Portland International Airport, four marine terminals, two general aviation airports, industrial parks and other
real estate properties.
Prior to serving as the Port of Portland’s Executive Director, h e served as Chief of Staff to then-Governor
John A. Kitzhaber for seven years, preceded by six years as President of the Oregon Business Council and five years
as Executive Director of the Association for Portlan d Progress which was, at the time, Portland’s downtown
development association. Mr. Wyatt served as an Oregon state representative from 1974 through 1977.
Mr. Wyatt studied political science at Willamette University and the University of Oregon, where he served
as Student Body President.
Treber Andersen, Director of Airport Operations
Treber Andersen has worked for the Department since 2004. Prior to his appointment as Director of Airport
Operations in 2021, Mr. Andersen was the Assistant Operations Director for terminal and landside programs including
the oversight of parking, passenger shuttle, ground transportation, gate management, and hardstand activities.
Mr. Andersen has also held positions in communications and airfield operations with the Department, where
he participated in emergency response coordination, snow removal activities, FAR 139 compliance, and security
functions. Before joining the Department, he worked for fixed base operator Million Air servicing private jet and
piston aircraft.
Mr. Andersen is a graduate of Brigham Young University, where he earned a Bachelor of Science in Business
Administration and a Master of Public Administration. He is a Certified Member of the American Association of
Airport Executives (“AAAE”) and serves on the Academic Relations Committee.
Shane Andreasen, Director of Administration and Commercial Services
Shane Andreasen serves as the Director of Administration and Commercial Services for the Department. He
leads the team responsible for business and policy development and implementation, airline and concession lease
negotiations, real property transactions, procurement, airport and tenant insurance and risk management, and facility
and property management. Mr. Andreasen also oversees the commer cial and property assets of the Airport and the
two reliever airports also owned by the Department. Mr. Andreasen has over 19 years of experience in all aspects of
airport properties, development and leasing.
Prior to rejoining the Department in early 2020, Mr. Andreasen spent nine years working for the Port of
Portland where he most recently served as the Acting Director of the Portland International Airport Business &
Properties. Prior to that assignment, he led the redevelopment of the concessions program and negotiated a twenty -
year rental car agreement.
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Mr. Andreasen recently received his Certified Member accreditation from the AAAE, and is active in ACI-
NA. He graduated from Westminster College in Salt Lake City, Utah with a Bachelor’s Degree in Business
Management.
Brian Butler, Chief Financial Officer
Brian Butler has worked for the Department since 2015. He has over 1 6 years of experience in both the
financial and accounting industries. As the Department’s Chief Financial Officer, Mr. Butler directs a staff of
accountants that oversee and manage the operating and capital budgets, accounting, financial reporting, financial
audits, purchasing, payroll, asset control, debt issuance, management of outstanding debt, and airline rate analysis and
rate calculation.
He is a member of the American Institute of Certified Public Accountants, the Utah Association of Certified
Public Accountants, ACI-NA, and AAAE, and is a licensed Certified Public Accountant (“CPA”). He is a graduate
of Brigham Young University with a Bachelor’s Degree in Corporate Finance, Utah Valley University with a
Bachelor’s Degree in Accounting, and the University of Utah with a Master’s Degree in Accounting.
Edwin Cherry, Director of Information Technology
Edwin Cherry currently serves as the Director of Information Technology for the Department, where he is
responsible for overseeing the provision of information and communication services throughout the Airport campus.
Mr. Cherry has spent the last 30 years in the aviation industry serving in numerous roles ranging from
consulting, project management and product development to his current role in airport IT management. He has led
teams in the development of IT solutions at numerous domestic and international airports with an emphasis on the
integration of the disparate special systems that are widely used by passengers, airports and airlines.
Mr. Cherry is active in ACI-NA and AAAE. He graduated from the University of South Florida with a
Bachelor of Science degree in Engineering.
Eddie Clayson, Director of Maintenance
Eddie Clayson began working for the Department in 1993. He was appointed as the Director of Maintenance
in 2016. Prior to his appointment, Mr. Clayson worked in building controls and as the facilities superintendent for the
Department.
Before joining the Department, Mr. Clayson worked as an electronics engineer for Lockheed Engineering &
Sciences, where he was responsible for control systems on buildings, test chambers and equipment.
Mr. Clayson is involved with AAAE and the International Facilities Management Associa tion (“IFMA”). He
earned his Accredited Airport Executive (“AAE”) from AAAE in 2013. Through IFMA, Mr. Clayson has earned his
Certified Facility Manager and Sustainability Facility Professional credentials. He has been active in the IFMA
Airport Facilities Council and is the past president of the Council. Mr. Clayson graduated from Brigham Young
University with a Bachelor of Science degree in Electronic Engineering and Technology.
Brady Fredrickson, AICP, ASLA, CM, Director of Planning and Environmental
Brady Fredrickson has 22 years of experience working in the planning and capital programming field. He
started his carrier with the SE Group in New Hampshire as a resort planner , designing and developing plans for ski
resort base area and mountainside facilities.
Mr. Fredrickson has worked for the Department since 2000. Over the last 2 2 years, he has worked on a
variety of planning and development projects including the 2021 mas ter plan update, planning and design of terminal
and concourse facilities, general aviation development plans, light rail service to the Airport, aircraft parking plans,
and a variety of airport planning studies. As the Director of Planning and Environmental, he oversees the planning
and capital programming for Salt Lake City International Airport, South Valley Airport and Tooele Valley Airport.
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Mr. Fredrickson is a graduate of Utah State University. He is a member of the American Institute of Certified
Planners, AAAE, and the American Society of Landscape Architects. He is a licensed professional Landscape
Architect.
Medardo Gomez, Director of Operational Readiness, Activation, and Transition
Medardo Gomez began working in the Airport Maintenance and En gineering division in 1993 as a
Superintendent of Facilities and has also worked as Airport Maintenance Operations Superintendent, and as an
Assistant Director of Maintenance. Prior to his airport experience he worked in the maintenance of educational
facilities industry.
He is a member of ACI and AAAE and has been an Accredited Member since 2012. He is currently a National
Board of Examiner for AAAE. Mr. Gomez is a frequent contributor in professional organizations conferences and
currently sits in several Airport Cooperative Research Program (“ACRP”) research projects. He has been an adjunct
professor of Aviation Management since 2008.
Mr. Gomez is a graduate of Brigham Young University and holds a BS in Facilities Management, and a
Masters Degree in Public Administration.
Peter L. Higgins, Chief Operating Officer
Mr. Higgins has worked for the Department for more than 20 years, serving previously as both the Director
of Airport Operations and Director of Airport Maintenance. He has experience in aviation management and large -
scale development programs. In addition, Mr. Higgins has served as a senior level construction equipment fleet
executive.
Before joining the Department, Mr. Higgins worked for Granite Construction Company and for Gibbons and
Reed. Mr. Higgins currently serves as a member of the ACI World Safety & Technical Standing Committee and has
served as the Chair of the ACI Operations, Planning, Safety, Infrastructure and Development (OPSID) Committee.
Mr. Higgins is also a past president of the Northwest Chapter of AAAE. He is an accredited member of the
Association of Construction Equipment Managers and is also an Accredited Airport Executive by the AAAE.
Mr. Higgins is a graduate of the University of Utah where he earned a Bachelor of Science Degree in Civil
Engineering. He is a graduate of the Executive Development Program-Professional Equipment Manager Certification
from Virginia Polytechnic Institute as well as the Executive and Supervisory Training Program.
Melyssa Trnavskis, Director of Airport Design and Construction Management
Melyssa Trnavskis joined the Department in 2022 from T-O Engineers, where she served as an Aviation
Project Manager. Prior to that, Ms. Trnavskis worked for the Calgary Airport Authority as Director of Engineering
and as Project Manager for Airfield Development. She has also worked in various engineering and planning roles for
CH2M Hill and Isbill Associates.
In her position at the Department, Ms. Trnavskis is responsible for the successful implementation of the
capital improvement programs for all three of the Department’s airports.
Ms. Trnavskis is a graduate of the University of Central Florida, where she earned a Bachelor of Science
Degree in Civil Engineering. She also holds a Bachelor of Science Degree in Aviation Business Administration from
Embry-Riddle Aeronautical University and a Master of Science Degree in Civil Engineering from the University of
California.
Nancy Volmer, Director of Communication and Marketing
Nancy Volmer began working for the Department in 2015. As the director of communication and marketing,
Ms. Volmer oversees media relations, community outreach and publications.
Ms. Volmer has worked for over 35 years in the communications and marketing field. Before joining the
Department, she worked in communications and marketing for organizations, including the Utah State Courts, Salt
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Lake Organizing Committee for the 2002 Olympic Winter Games, the Salt Lake Area Chamber and the Park City
Chamber/Bureau.
Ms. Volmer is a member of AAAE, ACI-NA and the Public Relations Society of America. She is also
accredited by the International Association of Business Communicators.
Ms. Volmer is a graduate of the University of Utah where she earned Bachelor of Science degrees in Land
Resource Management and in Journalism and Mass Communication. In addition, she earned a Master of Professional
Communication degree from Westminster College and has a certification in Integrated Marketing Communication
from the University of Utah.
Airport Facilities
Overview
The Airport is located on approximately 9,400 acres about five miles west of the City’s downtown. The
airfield at the Airport contains four runways, three of which are used for airline traffic and the fourth of which is used
for general aviation. The new terminal complex currently consists of three levels and provides 71 aircraft parking
positions at Concourses A and B, including 20 hardstand positions. The new terminal complex and Concourse A
West were placed into service in September 2020, with Concourse B West opening in October 2020. The Airport also
contains a new five level parking garage structure for short-term parking, along with surface parking for longer-term
parking and employees. The Airport is classified by the FAA as a Large Hub facility based upon its share of
nationwide enplaned passengers. The FAA classifies Large Hub airports as those serving at least 1.0% of annual U.S.
passenger enplanements.
The Airport commenced operations in 1911 with primarily acrobatic flights. The City purchased 100 acres
surrounding the original landing strip in 1920 and named the airport Woodward Field. The first commercial passenger
flight took place in 1926, with two passengers sitting atop mail bags. In 1943, the Airport became a training base and
replacement depot for the U.S. Army Air Force. Following World War II, the Airport was transferred back to the City
and in 1950, the three runways were upgraded. The first terminal was dedicated in 1961 and Terminal Two was
completed in 1978. The third air carrier runway was added in 1995, an International Arrivals Building was added in
1996, and a new FAA air traffic control tower and terminal radar approach control facility were opened in 1999. With
the opening of the new Terminal, Concourse A West, Concourse B West and related facilities in the fall of 2020,
Phase I of the New SLC has replaced the landside facilities of the Airport has been placed in service and the old
facilities have been demolished. Upon completion of the New SLC, there will be 94 contact gates with jet bridges.
Essentially all of the Airport’s landside facilities have been replaced with new facilities. See “THE NEW SLC”.
Airfield
The existing airfield consists of three air carrier runways and a general aviation runway. The air carrier
runways are, generally, in a parallel north/south alignment (Runways 16L-34R, 16R-34L, and 17-35). The general
aviation runway is oriented in a northwest/southeast direction (Runway 14 -32). Runway 16L-34R is 12,003 feet in
length, Runway 16R-34L is 12,000 feet in length, Runway 17-35 is 9,596 feet in length, and Runway 14-32 is 4,892
feet in length. All runways are 150 feet wide. The air carrier runways are equipped with high intensity runway lighting
systems, centerline lighting and touchdown zone lights. Precision instrument landing systems (“ILS”) are located on
all ends of the air carrier runways for approaches during instrument flight rules (“IFR”) conditions. The general
aviation runway (14-32) is not equipped with an ILS.
Terminal Facilities
The passenger terminal complex now consists of a single terminal facility, which is contiguous to Concourse
A and connected to the new parking garage via the new Gateway Center, and includes approximately 912,000 sf of
space on three levels. Level 1 of the Terminal contains FIS area, international baggage claim and recheck area, ticket
counters for remote passenger airline check-in, baggage drop services and security checkpoint screening, tenant
administrative offices, a centralized security checkpoint for dedicated employee access, and ground transportation
counters, and serves commercial curbs and other ground transportation functions. Level 2 provides passenger
circulation areas and connects landside and airside components of the facility. Public areas prior to the security
checkpoint provide for baggage claim and airline baggage service offices, an expansive meeter-greeter area, food and
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beverage retail concessions, and a centralized security screening checkpoint. Areas beyond security screening include
the main terminal plaza area consisting of 79,000 sf of concessions, seating and circulation space, and transition to the
airside concourses. Level 3 contains the ticketing area for departing passengers, administrative offices for the
Department and other tenants at the Airport, and a 29,000 sf Delta Sky Club. Departing passengers being dropped off
at the Airport arrive on the Level 3 curb. The Airport is served by the TRAX light rail system owned and operated by
the UTA, which connects the Airport with downtown Salt Lake City. The terminus of the TRAX light rai l station at
the Airport has been relocated to the first level of the Terminal. The TRAX extension was financed and built by the
UTA. See “THE NEW SLC.”
New concession contracts commenced with the opening of the first phase of the New SLC in the fall of 2020,
and all former contracts terminated at that time with the full demolition of the legacy facilities. New contracts
constitute 59 locations in the initial (“Phase I”) opening of the New SLC. In October of 2021, the Department issued
a second request for proposals (“RFP”) for Phase II concessions, to coincide with Concourse A East gates opening in
the fall/winter of 2023; the Department announced an initial slate of Phase II concessionaires, including local and
national restaurants and retailers, in May of 2022. Then, in October of 2022, the Department issued a third RFP for
concessions in Concourse B East, which is expected to open in late 2024. A fourth RFP for concessions in Phase IV
and a separate RFP for a third-party lounge are expected in late 2024. Continuing with practices in Phase I, the
Department intends to award locations in packages of varying albeit smaller sizes to existing and new concessionaire
partners with successful proposals.
Airport ground transportation services generally include taxis, limo usines, shuttle buses and transportation
network companies (“TNCs”), such as Uber Technologies, Inc. (“Uber”) and Lyft, Inc. (“Lyft”). The terminal roadway
provides vehicular access to the Terminal at ground level.
Parking Facilities
Public parking facilities currently located at the Airport consist of the new five level, short-term parking
garage near the terminal complex and long-term economy surface parking lots. As part of the TRP, the economy lots
have also been reconfigured. See “THE NEW SLC – Parking Garage and South Economy Parking Lot.” In total,
these facilities comprise about 152 acres, including the five levels of the garage, and have 14,401 public parking
spaces. The short-term parking garage has 3,469 public parking spaces on levels 2 through 5 and is located adjacent
to the passenger terminal. The first floor is dedicated to rental car operations. Current pricing for the short-term
parking garage is $35 per day or $55 per day for the Premium Reserved Parking service. In addition to the new
Parking Garage, the Airport also has a substantial amount of surface parking available for Airport patrons, including
a new surface parking area (“Lot E”) located east of the new parking structure within walking distance of the Terminal
that includes 384 parking spaces currently priced at $21 per day. The Department expects to increase the rate at the
economy lots on July 1, 2023 to $12 per day.
To help reduce vehicle traffic congestion in the terminal area, the Department maintains a 120-space Park
and Wait lot and adjacent Touch n’ Go service plaza located west of Terminal Drive, just south of the Terminal, where
motorists meeting arriving passengers may wait without charge until passengers are ready to be picked up. The Park
and Wait lot has large electronic signs displaying flight arrival information. Once a flight has arrived and sufficient
time has elapsed for passengers to claim their luggage, the sign indicates “ready for pick up.” The Department expects
to expand the Park and Wait lot in FY 2023 by 95 additional spaces. To reduce congestion at the curb, however, the
Department encourages drivers to wait until passengers are at the curb, confirming with their driver via cell phone.
Rental Car Facilities
Rental car operations for passengers at the Airport currently are located in the Gateway Center and on the
ground floor of the new parking garage adjacent to the terminal building and include approximately 1,200 ready/return
parking spaces. Nine rental car brands are currently located at the Airport: Alamo, Avis, Budget, Dollar, Enterprise,
Hertz, National, Payless and Thrifty. Hertz, Dollar and Thrifty assumed their agreements with the City for operations
at the Airport prior to emerging from bankruptcy protection on June 30, 2021. In addition, six brands are located off-
Airport and their customers must use shuttle bus services , and the Department has entered into an agreement with
Turo, Inc. to operate at the Airport.
The rental car service facilities were placed in service in March 2016. These facilities consist of a QTA
facility for fueling and washing cars and three facilities for performing light vehicle maintenance. The QTA is a two -
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level building of approximately 468,000 sf with 14 wash and ser vice bays on the first floor and vehicle storage and
parking on the second floor. The RSS facilities consist of three single-story service buildings containing a total of
approximately 34,000 sf of building space located south of the QTA. These buildings provide back-of-house
maintenance areas for the rental car providers and contain office, support and storage space. The QTA and RSS are
currently in use by the rental car companies operating at the Airport. See “THE NEW SLC – Rental Car Facilities.”
Air Cargo and Aircraft Maintenance Facilities
The Airport has over 1 million sf of leased cargo space. Both UPS and DHL have stand-alone cargo facilities
and FedEx constructed a 69,660 sf cargo facility. Delta and its regional partner, SkyWest, each maintain an aircraft
maintenance hangar at the Airport at which both routine and heavy maintenance are performed, and Delta has
maintained a reservation center at the Airport for over 25 years that employs over 620 persons.
Industrial Activity and Other Nonaeronautical Activities
In December 2017, the Department opened an 8,400 sf Touch n’ Go Convenience Store at the site of the Park
and Wait lot. This facility offers a gas station and convenience store, as well as a coffee house, a Burger King® and
a fast-casual restaurant. The facility also includes flight information display monitors, allowing persons waiting to
pick up arriving passengers to track flight arrivals, and a drive -through window.
The Department maintains an industrial park on the east side of the Airport for aviation-related businesses.
Boeing Corporation (“Boeing”) has a 100,000 sf fabrication and assembly facility at the Airport located on 16 acres
of land that currently employs approximately 575 persons where tail sections of its 787 -9 “Dreamliner” aircraft are
assembled. Boeing has manufacturing facilities in the Salt Lake City area that manufacture many of the components
of this assembly and has also purchased an 850,000 sf building approximately 20 miles from the Airport at which
parts for the 787 are manufactured. Boeing holds an option until June 30, 2027 on an additional 136 acres of land
adjacent to its assembly facility on the west side of the Airport .
On ____, 2023, Delta leased approximately eight acres of land from the Department for the construction of
a Flight Operations Training Center, which will initially house four flight simulators and training, administrative, and
office space. Construction commenced __ 2023, with completion ____.
Airport Access
The Airport has access from Interstate Highway 80 and is approximately 5 miles, or 10 minutes, from
downtown Salt Lake City by car. The Airport is served by the TRAX light rail system owned and operated by the
UTA, which connects the Airport with downtown Salt Lake City. The Terminal accommodates the terminus of the
TRAX light rail station at the Airport to the first level of the Terminal. The TRAX extension was financed and built
by the UTA. UTA also provides limited bus service to Too ele and paratransit services. In addition, the Airport is
served by taxis, private shuttles and TNCs.
The Airport is served by several TNCs, including both Uber and Lyft. The Department has set aside dedicated
curb space at the Airport for TNC pick-ups, but TNC drivers are required to wait for customers off -Airport. TNC
operations at the Airport have grown substantially since FY 2016, when TNC operations were first permitted at the
Airport and 209,800 transactions were reported, to FY 2022, when 1.30 million transactions were reported. Airport
revenues from TNC operations at the Airport have also increas ed: In FY 2022, the Airport realized $3.89 million in
such revenue, compared to $0.25 million in FY 2016 and greater than the pre-pandemic FY 2019 Airport revenues of
$3.63 million derived from TNCs.
The City is served by a network of interstate highways, with I-15 providing north-south access and I-80
providing east-west access. Several recreational areas, such as Park City, are within one hour’s driving time from the
Airport and all three of the State’s major universities are within 70 miles of the Airp ort.
Ancillary Facilities
Ancillary facilities support the aviation-related activities at the Airport. These ancillary facilities include the
82 acre Utah Air National Guard site, the on-Airport fuel facility, general aviation facilities, including two fixed base
operators (“FBOs”), corporate hangars, FAA, the Department, maintenance facilities, and commercial facilities.
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Auxiliary Airports
The Department also operates two general aviation (“GA”) airports owned by the City: South Valley and
Tooele (referred to collectively as the “Auxiliary Airports”). South Valley is approximately 880 acres in size and is
primarily a GA airport, with a 5,860 foot runway, over 200 based aircraft and approximately 67,500 annual operations.
Tooele provides GA and flight training services and is slightly smaller, with approximately 600 acres and a 6,100 foot
runway, 16 based aircraft and approximately 38,000 annual operations. These airports support the GA and f light
training needs of the region and complement the commercial airport services provided at the Airport.
COVID-19 Outbreak
Certain of the historical information regarding developments in finances and operations of the Department
contained under the heading “THE AIRPORT” includes the period encompassing the COVID-19 pandemic and should
be considered in light of the negative and adverse impacts of COVID-19. The data for FY 2020 contains information
that pre-dates the outbreak of COVID-19 in the United States and the data for FY 2021 and FY 2022 shows the impacts
of the pandemic on air travel through the Airport. The effects of the COVID -19 pandemic on passenger traffic, airline
operations and related effects on revenues began to be experienced at the Airport in March of 2020.
The outbreak of COVID-19, a respiratory disease caused by a new strain of coronavirus, had significant
adverse health and financial impacts throughout the world and the State of Utah and caused significant disruptions to
domestic and international air travel, including both passenger and cargo operations. Many states and local
governments in the United States, including the State, initially issued “stay at home” or “shelter in place” orders,
which severely restricted movement and limited businesses and activities to essential functions. Additionally, a
number of nations actually or effectively closed their borders by restricting entry and exit to only essential travel
and/or requiring travelers to self-isolate for 14 days, further depressing demand for passenger air travel, although those
restrictions have largely been lifted.
Beginning in March of 2020, Airports in the United States, including the Airport, were significantly affected
by the reductions in passenger volumes and flights, as well as by the broader economic shutdown resulting from the
COVID-19 outbreak. The outbreak adversely affected domestic and international travel and travel -related industries.
Airlines, including those operating at the Airport, reported unprecedented reductions in passenger volumes, causing
the cancellation of numerous flights and a dramatic reduction in network capacity , including suspension of service on
certain routes, including some to and fro m the Airport.
The COVID-19 pandemic appears now to be endemic and its impact on air travel appears to be receding
significantly. There can be no assurance, however, that a new strain of COVID -19 or another pandemic will not
adversely affect air travel in the future. See “INVESTMENT CONSIDERATIONS – Public Health Concerns.”
The information included in this Official Statement includes audited data for FY 2020, which reflects
approximately four months of impact from the COVID -19 pandemic, as well as audited data for FY 2021 and FY
2022 showing the impacts of the COVID-19 pandemic and the subsequent recovery of air traffic, passengers and
Revenues.
Impact of COVID-19 on the Airport
The outbreak of COVID-19 and related restrictions had an adverse effect on the airlines serving the Airport,
the retail concessionaires at the Airport and Airport Revenues as discussed herein. Historical patterns of passenger
and cargo traffic at the Airport were drastically disrupted by the emergence of the COVID-19 pandemic in early 2020
and the Airport witnessed a sharp contraction in activity beginning in March 2020.
During the first eight months of FY 2020 (the City’s fiscal year ends June 30), prior to the COVID-19
outbreak, the Airport continued to experience strong business activity. Commencing with the COVID-19 outbreak,
however, the Airport saw steep declines in many financial and operating metrics, although many of these same metrics
began improving in late spring 2020. April 2020 represented the low point in terms of enplaned passengers, which
totaled 87,557 or 8.1% of April 2019 enplanements. Scheduled seat capacity was reduced starting in April 2020,
although actual passenger traffic was reduced starting mid-March 2020, and by March 2021 had recovered to 62.4%
of those recorded in March 2019. Domestic service at the Airport rebounded more quickly than, and did not dip as
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substantially as, at other U.S. airports during the same period. See APPENDIX B – REPORT OF THE AIRPORT
CONSULTANT.
The declines in passenger traffic also reduce d demand for commercial parking as well as the goods and
services provided by Airport concessionaires, including but not limited to restaurants, retail and rental car services,
and ground transportation services, such as those provided by taxis and transportation network companies such as
Uber and Lyft.
PFCs collected, including investment income, during this period were also adversely affected by the
reduction in passengers using the Airport due to the COVID-19 pandemic. The reduction in PFC collections will not
result in less PFCs being collected, because the Department’s authority to collect PFCs is not determined by time but
by the approved amount. However, the reduction in the collections of PFCs during this period caused the Department
to review its annual capital budget, including debt service projected to be paid from PFC revenues, to align the use of
PFCs in FY 2020 and 2021 with projected collections.
Department’s Response to COVID-19
The Department responded to the effects of COVID-19 by cutting operating costs, providing financial relief
to tenants, and providing financial assistance to both airline and concessions tenants for the build out of new space in
the Terminal and Concourses A and B. In addition, the Department was awarded a total of $1 83.9 million in federal
grant funds under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) of March 27, 2020, the
Coronavirus Response and Relief Supplemental Appropriations Act (“CRRSA”) signed into law on December 27,
2020, and $91,670,30, of which slightly more than $11 million is restricted for concessions relief, of additional federal
grant funds under the American Rescue Plan Act (“ARPA”) signed into law on March 11, 2021. As discussed under
“SECURITY FOR THE SERIES 2023 BONDS – Rare Covenant” above, the Department has used and expects to
continue to use the CARES Act, CRRSA and ARPA funds to pay O&M Expenses which helps reduce costs for the
air carriers and concessionaires operating at the Airport.
Aviation Activity at the Airport
The Airport predominantly serves domestic traffic, which comprised approximately 96.7% of the Airport’s
enplaned passenger traffic in FY 2022; international traffic is a relatively small component at approximately 3.3%.
Prior to the COVID-19 pandemic, international traffic was a growing segment of the air service at the Airport.
According to OAG Aviation Worldwide Limited (“OAG”), as of June 30, 2019, airlines served 98 non-stop
destinations and averaged 370 daily departures from the Airport. Due to the COVID-19 pandemic, airlines operating
at the Airport reduced service and, in June 2020, the Airport provided 143 average daily departures to 67 non-stop
destinations. By the end of FY 2022, the Airport’s passenger air service had almost fully recovered to pre -pandemic
levels: In June 2023, the Airport had 399 average scheduled daily departures to 95 non-stop destinations. Prior to the
COVID-19 pandemic, the Airport had service to three Canadian cities and five locations in Mexico. The Airport also
had European service to Amsterdam Schiphol Airport (AMS), Paris Charles De Gaulle Airport (CDG), and London
Heathrow Airport (LHR). Since the COVID-19 pandemic, the Airport’s international service has grown, with services
to all international destinations served prior to the pandemic having returned and, with the introduction of Lufthansa
subsidiary Eurowings Discover, addition of new service to Frankfurt (FRA).
Historical Enplaned Passengers
Enplaned passengers at an airport correlate positively to several important sources of non-airline revenue,
including in-terminal concessions, parking and rental car fees, as well as PFCs and CFCs. Based on data from the
FAA, approximately 10.80 million enplaned passengers boarded aircraft at the Airport in CY 2021, ranking the Airport
20th in the U.S. for enplaned passengers. This was an increase of approximately 80.5% as compared to FAA data for
CY 2020, due to the recovery from the COVID-19 pandemic.
According to data maintained by the Department and the United States Department of Transportation
(“USDOT”), in FY 2022, the Airport had an estimated __ million domestic O&D enplaned passengers (__%) and an
estimated __ million connecting passengers (__%).
The following table sets forth historical enplanement information for the Airport for the fiscal years ending
June 30, 2013 through June 30, 2022. Prior to the outbreak of the COVID-19 pandemic, the Airport had experienced
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six consecutive fiscal years of enplanement growth through FY 2019. The table categorizes enplanement information
into O&D enplanements and connecting enplanements:
SALT LAKE CITY INTERNATIONAL AIRPORT
O&D AND CONNECTING ENPLANED PASSENGERS
Fiscal Year
O&D
Enplaned
Passengers
% Change
From
Prior FY
Connecting
Enplaned
Passengers
% Change
From
Prior FY
Total
Enplaned
Passengers
% Change
From
Prior FY
2013 5,206,208 1.1 4,837,861 (2.8) 10,044,069 (0.8)
2014 5,239,044 0.6 5,055,650 4.5 10,294,694 2.5
2015 5,711,087 9.0 5,122,921 1.3 10,833,708 5.2
2016 6,145,817 7.6 5,147,194 0.5 11,293,011 4.2
2017 6,643,195 8.1 5,207,025 1.2 11,850,220 4.9
2018 7,201,438 8.4 5,218,734 0.2 12,420,172 4.8
2019 7,543,142 4.7 5,546,991 6.3 13,090,133 5.4
2020
2021
2022
5,817,629
4,353,659
(22.3)
(25.7)
4,278,103
3,356,694
(23.7)
(20.7)
10,095,732
7,710,353
12,802,218
(22.9)
(23.6)
66.0
Sources: Total Enplanements: Department Records; USDOT (via Diio) for O&D passengers. Connecting passengers were derived
by subtracting USDOT-reported O&D passengers from Department-reported total enplanements.
Airlines report the number of enplaned passengers at an airport to the USDOT but are not required to
differentiate between O&D and connecting passengers. Based on other reported data, the USDOT estimates the
number of O&D versus connecting passengers, and this estimate is generally accepted within the industry.
The number of enplaned passengers generally followed previous annual increases until March 2020, when
the effects of the COVID-19 pandemic began to be experienced at the Airport. Since April 2020, enplaned passengers
at the Airport have strongly recovered, with the airport experiencing enplanements in FY 2022 almost on par with FY
2019, the Airport’s best-ever year for enplanements. The table below shows monthly enplaned passengers for FY
2019 through FY 2023 (to date).
Salt Lake City International Airport
Monthly Enplaned Passengers
Fiscal Years 2019 – 2023
Month FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 % Change FY
2023
compared to
FY 2019
July 1,196,325 1,239,067 438,268 1,235,161 1,178,528 (1.4)
August 1,201,689 1,220,698 507,906 1,134,159 1,145,192 (4.7)
September 1,050,274 1,098,626 491,647 1,025,583 1,102,153 4.9
October 1,077,840 1,177,796 548,370 1,090,841 1,104,699 2.5
November 1,000,320 996,598 494,175 1,003,296 1,009,249 0.9
December 1,000,259 1,098,032 540,171 1,005,886 1,021,513 2.1
January 1,005,577 1,078,161 531,994 924,882 1,061,267 5.5
February 954,196 1,037,793 520,106 918,036 981,561 2.9
March 1,206,454 612,882 752,949 1,137,469
April 1,075,360 87,557 755,761 1,061,384
May 1,131,368 161,192 1,000,370 1,129,468
June 1,190,471 287,330 1,118,636 1,136,053
Total 13,090,133 10,095,732 7,710,353 12,802,218
Source: Department records
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During the ten year period from FY 2013 to FY 2022, the number of passengers enplaned at the Airport grew
to a peak of approximately 13.1 million in FY 2019 and then declined to approximately 7.7 million enplaned
passengers in FY 2021 as a result of the COVID-19 pandemic before almost entirely recovering to 12.8 million
enplaned passengers in FY 2022. FY 2023 enplaned passenger numbers are expected by the Department to exceed
those in FY 2019, the year prior to the COVID-19 pandemic. Enplaned passengers at the Airport showed steady
growth from FY 2013 through FY 2019. When the COVID-19 pandemic began to affect passenger traffic in March
of 2020, enplaned passengers at the Airport decreased substantially, but less than many other U.S. airports. As shown
on the table above, monthly enplaned passengers in each month since September 2022 have recovered to levels above
those in FY 2019. See APPENDIX B – REPORT OF THE AIRPORT CONSULTANT. The Airport operates as both
a major O&D market and as a major connecting hub for Delta. Delta’s enplaned passengers combined with those of
its regional partners comprised 73.4% of enplaned passengers at the Airport in FY 2022. Historically, O&D passenger
traffic at the Airport has ranged between 49% and 60% of total passengers. For a more complete discussion of the
changes in enplanements at the Airport and factors affecting these changes, see “APPENDIX B – REPORT OF THE
AIRPORT CONSULTANT – Air Service and Air Traffic Analysis.”
During the ten year period from FY 2013 through FY 2022, the two segments of enplanements at the Airport
experienced growth, albeit at differing rates. O&D enplanements grew from an estimated 5.2 million enplaned
passengers in FY 2013 to an estimate of 7.5 million enplanements in FY 2019. O&D enplanements fell in FY 2020
and FY 2021, primarily as a result of the COVID-19 pandemic, before climbing to __ million enplanements in FY
2022. O&D enplanements have grown steadily at a CAGR of ___% from FY 2013 through FY 2022, reflecting the
strength of the Air Service Area’s economy and demand for travel to and from the City and the region. Similarly,
during the same ten year period, connecting enplaned passengers declined in the FY 2020 and FY 2021, reflecting the
effects of the COVID-19 pandemic, but have grown at a CAGR of ___% over the ten year period from FY 2013 - FY
2022.
Airlines Serving the Airport
All the major network airlines and four LCCs, including two ultra-low cost carriers (“ULCC”), operate at the
Airport. The Airport also has cargo operations by ten all-cargo carriers in addition to cargo carried by the passenger
airlines. While service by international airlines was suspended during the COVID-19 pandemic, those international
carriers have all restored international service.
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AIRLINES OPERATING IN DECEMBER 2022
AT SALT LAKE CITY INTERNATIONAL AIRPORT
Signatory Airlines [Non-signatory and] Affiliate Airlines*
Alaska Airlines (AK)
American Airlines (AA)
Delta Air Lines (Delta)
Frontier Airlines
JetBlue Airways
Southwest Airlines
[Spirit Airlines]
United Airlines (UAL)
Envoy Air (AA)
Horizon Air (AK)
Mesa Airlines (AA, UAL)**
SkyWest Airlines (AK, AA, Delta, UAL)
All Cargo Airlines
Air Transport International, Inc.
Alpine Aviation
Ameriflight, LLC
Amerijet International
Corporate Air
Empire Airlines
FedEx
Northern Air Cargo
Southern Air†
United Parcel Service
Foreign Flag Airlines*
Aeromexico (Delta)
Air Canada
Eurowings Discover
KLM Royal Dutch Airlines (Delta)
*Affiliated Signatory Airlines shown in parentheses. ** American Airlines ended its affiliation with Mesa in April 2023
†Operates DHL Express service
Delta is the dominant carrier at the Airport and, with its affiliates, generated approximately 73.4% of
enplanements in FY 2022. Southwest Airlines (“Southwest”) is the number two carrier at the Airport, with an enplaned
passenger market share of approximately 10.4% in FY 2022. American had an enplaned passenger market share of
approximately 5.4% in FY 2022. Alaska started service in FY 2013 and grew substantially until growth flattened in
FY 2017, after which Alaska’s enplanements decreased in each year through FY 2021, before recovering to nearly
FY 2019 levels in FY 2022. Delta has maintained the largest market share at the Airport, with both a strong O&D
and hubbing presence, but as the local O&D market has grown and Delta has adjusted its hubbing operations at the
Airport, the shares of Delta’s competitors have grown and the O&D share of Delta’s passengers has also grown. The
table below lists the airlines serving the Airport in FY 2018-2022 and their respective market share of enplaned
passengers in FY 2018 through FY 2022.
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SALT LAKE CITY INTERNATIONAL AIRPORT
AIRLINE MARKET SHARE OF ENPLANED PASSENGERS
(000’s)
Fiscal Year ended June 30
Airline
FY 2018
FY 2019
FY 2020 FY 2021 FY 2022
Market
Share
FY
2018
Market
Share
FY 2022
Delta Air Lines 6,431 6,896 5,587 4,172 7,364 51.8 57.5%
Delta Connection 2,298 2,563 1,778 1,420 2,039 18.5 15.9
Subtotal Delta* 8,729 9,459 7,365 5,592 9,403 70.3 73.4%
Southwest Airlines 1,310 1,300 982 758 1,327 10.5 10.4
American Airlines 775 740 555 520 688 6.2 5.4
United Air Lines 608 663 475 350 596 4.9 4.7
Alaska Air 379 333 253 182 295 3.1 2.3
JetBlue Airways 363 358 274 113 249 2.9 1.9
Frontier 243 263 191 194 217 2.0 1.7
Other 13 2 1 10 27 0.1 0.2
Total 12,420 13,090 10,096 7,719 12,802
* Includes Delta Connection
Amounts may not add due to rounding. Source: Department Records
Delta and its predecessors have served Salt Lake City since 1926. Western Airlines (“Western”) began
service on April 17, 1926, flying mail from Los Angeles to Salt Lake City. In 1982, Western established a hub at the
Airport. In 1987, Delta acquired Western and Delta has maintained a hub at the Airport ever since.
According to Delta, the Airport provides an efficient western hub for Delta that connects passengers from
connecting markets in the western U.S. with Delta’s network, as well as connects passengers from Los Angeles
International Airport (LAX) and Seattle-Tacoma International Airport (SEA), where Delta also has substantial
operations, to Delta’s eastern hubs and focus cities, including Hartsfield-Jackson Atlanta International Airport (ATL),
Boston-Logan International Airport (BOS) and LaGuardia Airport (LGA). Although a substantial percentage of
Delta’s passengers flying through the Airport are connecting passengers, based upon USDOT data for FY 2022,
approximately ___% of Delta’s passengers at the Airport were O&D passengers, consistent with the strength of the
Salt Lake City region’s air service market. For more information regarding Delta’s operations at the Airport, see
“APPENDIX B – REPORT OF THE AIRPORT CONSULTANT.”
Passenger Markets
For June 2023, scheduled non-stop service from the Airport was offered to 83 domestic and 12 international
destinations. Eurowings, a low-cost subsidiary of the German-based Lufthansa Group, began service to Frankfurt in
May 2022. Set forth below is a map depicting the non-stop destinations served from the Airport.
[Remainder of page intentionally left blank.]
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NON-STOP DESTINATIONS SERVED FROM
SALT LAKE CITY INTERNATIONAL AIRPORT
[to be updated]
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The following table shows the percentage of O&D passengers traveling on U.S. air carriers between the
Airport and other airports for the 12 months ended December 31, 2022, the most recent period for which data is
available, as reported by USDOT. Passengers traveling on foreign flag airlines are not included.
SALT LAKE CITY INTERNATIONAL AIRPORT
TOP O&D PASSENGER DESTINATIONS
Destination City
Airport
Code(s)
% of O&D
Enplaned
Passengers
FY 2022
Enplaned O&D
Passengers
Los Angeles Area LAX, LGB,
SNA, BUR, ONT
%
San Francisco Bay Area SFO, OAK, SJC
New York / Newark JFK, EWR
Denver DEN
Phoenix PHX
San Diego SAN
Seattle SEA
Las Vegas LAS
Central Florida MCO, TPA
Dallas/Fort Worth DFW, DAL
Washington / Baltimore BWI, DCA, IAD
Chicago ORD, MDW
Atlanta ATL
Hawaii HNL, OGG
Portland PDX
Boston BOS
Houston IAH, HOU
Austin AUS
Sacramento SAC
Minneapolis/St. Paul MSP
Detroit DTW
Philadelphia PHL
Boise BOI
Spokane GEG
Anchorage ANC 0 0
Top 20 Total % 0
Remaining 0 0
Total: 100.0% 0
Source: USDOT
The future level of aviation activity and enplaned passenger traffic at the Airport will depend upon factors
such as regional, national and international economic conditions, the regional, national and international recovery of
air travel from COVID-19, Delta maintaining its operating hub at the Airport, potential health or security threats, and
the financial condition of individual airlines and their continued service at the Airport. See “INVESTMENT
CONSIDERATIONS” below.
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Aircraft Operations and Landed Weights
Total aircraft operations at the Airport increased from 332,018 in FY 2018 to 341,064 in FY 2019. As a
result of the COVID-19 pandemic, total aircraft operations decreased to 303,042 in FY 2020 . However, in FY 2022,
total aircraft operations rose to 338,507, almost entirely recovering to FY 2019 levels. Landed weights increased from
14,908,945 thousand pounds of landed weight in FY 2018 to 15,989,165 thousand pounds in FY 2022, reflecting
increased operations at the Airport, as well as a shift away from smaller regional jet aircraft . This latter trend is also
shown by the shift in passengers from Delta’s regional carriers (“Delta Connection”) to Delta’s mainline service.
Total Delta enplanements (including its Delta Connection carriers) between FY 2018 and FY 2022 increased from
8.72 million passengers in FY 2018 to 9.37 million in FY 2022, while the number of enplaned passengers on Delta’s
mainline aircraft alone rose from approximately 6.4 million in FY 2018 to 7.4 million in FY 2022.
The following tables show historical data on aircraft operations (landings and takeoffs) for FY 2018 through
FY 2022, and landed weights for the same periods. The approximate distribution of operations in FY 2022 was 72.6%
air carriers, 20.5% general aviation, 6.0% cargo, and 0.9% military.
SALT LAKE CITY INTERNATIONAL AIRPORT
HISTORICAL AIRCRAFT OPERATIONS
(total landings and takeoffs)
Fiscal Year Ended June 30
2018 2019 2020 2021 2022
Passenger Aircraft 250,904 253,578 216,320 219,808 245,840
Cargo 20,382 20,618 20,604 20,672 20,296
General Aviation 53,695 61,117 63,326 68,469 69,370
Military 7,037 5,751 2,792 3,190 3,001
Total Operations 332,018 341,064 303,042 312,139 338,507
Annual Change 2.7% 2.7% (11.1%) 3.0% 8.4%
Source: Department Records
SALT LAKE CITY INTERNATIONAL AIRPORT
HISTORICAL LANDED WEIGHTS
(amounts in thousands of pounds)
Fiscal Year Ended June 30
2018 2019 2020 2021 2022
Airlines 13,737,381 14,263,691 12,315,209 12,631,435 14,668,929
Cargo 1,171,564 1,201,369 1,246,304 1,356,217 1,320,235
Total 14,908,945 15,465,060 13,561,514 13,987,652 15,989,164
Annual Change 3.5% 3.7% (12.3%) 3.1% 14.3%
Source: Department Records
Air Cargo
The Airport is also a regional center for processing air cargo. Approximately 227,355 U.S. tons of freight
and mail were loaded and unloaded on and off aircraft at the Airport in FY 2022. As of June 30, 2023, the Airport
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was served by ten all-cargo and small package and express carriers. All-cargo carriers carry only cargo and these
companies include FedEx and UPS.
For FY 2022, the companies with the largest share of enplaned and deplaned cargo at the Airport, based on
cargo tonnage, were FedEx with 46.0%; UPS with 42.7%; Delta with ___%; Alpine Aviation with 1.3%; Ameriflight
with 1.1%; and Southwest with 0.8%. Together, these six carriers accounted for over 95% of total cargo and mail
handled at the Airport in FY 2022. The following table shows historical data on air cargo and mail shipped through
the Airport for FY 2018 through FY 2022.
SALT LAKE CITY INTERNATIONAL AIRPORT
HISTORICAL AIR CARGO AND MAIL
(amounts in U.S. tons)
Fiscal Year ended June 30
2018 2019 2020 2021 2022
Cargo 190,143 203,950 199,985 212,260 202,246
Mail 20,712 20,293 21,400 27,865 25,109
Total 210,855 224,243 221,385 240,125 227,335
Annual Change 5.1% 6.3% (1.3%) 8.5% (5.3%)
Source: Department Records
Airline Use Agreement
General
The City has entered into an AUA with each of the following carriers: Alaska, American, Delta, Frontier,
JetBlue Airways, Southwest and United (each a “Signatory Airline”). Each AUA terminates on June 30, 2024, unless
earlier terminated or extended. In May 2018 and September 2021, respectively, Delta and United extended their
respective AUAs through June 30, 2034. Then, effective December 14, 2022, Delta agreed to a second amendment
to the AUA (the “Second Amendment”) that extended its term through June 30, 2044, and authorized further extensions
through 2054. In addition to Delta, Alaska and Southwest have also entered into the Second Amendment extending
the term through June 30, 2044 and American and United have entered into the Second Amendment extending the
term through June 30, 2034. [In addition, Spirit Airlines has become a Signatory Airline as of May 2023.]
Accordingly, Signatory Airlines that carried 96.3% of the enplaned passengers at the Airport have entered into an
extension of the AUA through at least June 30, 2034. As of July 1, 2024, Capital Investments (as defined in the AUA)
will require the approval of Signatory Airlines equating to at least 15% of enplanements for the prior 12 months.
The AUA may only be terminated by a Signatory Airline for an extraordinary event, such as closure or
imposition of material and substantial restrictions on operation of the Airport for more than 90 days. The AUA also
allows a Signatory Airline to designate one or more airlines meeting certain criteria as Affiliates. All of the passenger
air carriers operating at the Airport are Signatory Airlines or their Affiliates. The AUA with each Signatory Airline
is in substantially the same form and provides for the lease of specified airline premises on an exclusive or preferential
basis, depending upon the type of space, as well as use of certain common and joint use facilities . Gates and ticket
counters are leased on a preferential basis, pursuant to which the Depart ment may allow another airline to operate in
such space in periods during which the Signatory Airline does not have a scheduled operation using such facilities.
Offices and passenger clubs/lounges are leased on an exclusive use basis, and baggage and certain other areas are joint
or common use facilities. In addition, the Department currently has not leased and has reserved two gates and five
aircraft hardstand positions as common use facilities. The AUA also provides for reallocation of space by the
Department, either on its own initiative, in which case moving costs will be paid by the Department, or at the Signatory
Airline’s request, in which case all costs are paid by the requesting Signatory Airline. The AUA grants the Signatory
Airlines the right to operate at the Airport. The form of the AUA (including the First and Second Amendments) is set
forth in APPENDIX D hereof.
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Rates & Charges
The AUA establishes the manner in which the Department will establish and collect rates and charges for use
of the Airport by Signatory Airlines. Pursuant to the AUA, the Department has established seven direct Cost and
Revenue Centers, including the Airfield and the Terminal s and two indirect Cost Centers for general and
administrative (“G&A”) and roadway expenses. Landing fees for use of the airfield are calculated on a residual basis:
All budgeted costs allocable to the airfield, including operating expenses, debt service, amortization of capital costs
funded with Revenues other than the TRP and amounts necessary to replenish reserves allocable to the Airfield Cost
and Revenue Center, less Revenues allocable to the airfield other than landing fees, are divided by estimated landed
weights and recovered on the basis of actual landed weights of aircraft operated at the Airport. Landing fees are
charged monthly in arrears based upon actual landed weights for the preceding month.
The rental rate for terminal space is calculated on a commercial compensatory basis by dividing all budgeted
costs properly allocable to the Terminal Cost and Revenue Center, less Revenues from airlines that are not Signatory
Airlines, by the Rentable Airline Space within the Terminals to determine the rental rate. The rental rates are th en
adjusted based upon whether the leased space has heating, ventilation and air conditioning , known as conditioned
space, or is unconditioned space. Effective July 1, 2024 and for each Fiscal Year thereafter, the AUA as amended by
the Second Amendment provides that a fixed 82% of the Net Terminal Requirement will be recovered through terminal
rental rates, regardless of the amount of space rented by th e airlines. Baggage claim facilities are joint use facilities
and charged by allocating 20% of the revenue requirement for such facilities among all Signatory Airlines and 80%
by the percentage of passengers of each such carrier. For common use gate facilities, the Department establishes a
per turn rate by determining the highest cost per operation for all carriers, equal to the total of leased gate space
multiplied by the conditioned rate per square foot and then dividing that amount by 365, and then dividing that daily
rate by the lowest number of scheduled operations at any leased gate to determine the per turn fee. Rates for common
use ticket counters and bag make-up areas are similarly calculated to derive a daily rate for use of such space. Other
fees that are charged for use of the Airport’s aeronautical facilities include fees for international passengers to cover
costs associated with the screening of international passengers; charges for over-night aircraft parking; storage of
ground service equipment; storage areas and ticketing kiosks; and fees for employee badging and parking.
The Department has the right to recalculate rates and charges if budgeted costs, landed weights or rented
terminal space are likely to vary by more than 10% from the actual costs or estimates, or if recalculation is required
by the Master Indenture. Within 120 days after the close of each fiscal year, the Department calculates the actual
costs and expenses and the amounts collected in landing fees, terminal rents and other charges for the prior fiscal year
and, if the amount collected exceeded or was less than the actual revenue requirements, the difference or shortfall is
included in the rates for the second fiscal year following the fiscal year of such operations. See “ – Airport Financial
Operations – Management’s Discussion and Analysis – Terminal Rents” below.
The Department shares a portion of certain in-terminal concession revenues and rental car concession
revenues (excluding CFCs) with the Signatory Airlines in the amount of $1 per enplaned passenger for up to 10 million
enplaned passengers and additional amounts if enplaned passengers exceed 10 million; provided, however, that the
total revenue sharing amount in any fiscal year cannot exceed the least of (i) 30% of Net Remaining Revenue; (ii) the
total amount of Annual Adjusted Gross Revenues for Selected Concessions; and (iii) the Calculated Revenue Sharing
Amount. In FY 2022 such revenue sharing totaled $13.6 million, up substantially from $7.7 million in FY 2021, as
demand for passenger air travel recovered as the COVID-19 pandemic abated. The Second Amendment provides for
an increase in revenue sharing commencing July 1, 2024 of $1.40 per enplaned passenger up to 14 million Enplaned
Passengers and if the number of Enplaned Passengers in any Fiscal Year exceeds 14 million, additional revenue
sharing not to exceed the lesser of (i) 40% of Net Remaining Revenues, (ii) the total amount of Annual Adjusted Gross
Revenues for Selected Concessions, and (iii) the Calculated Revenue Sharing Amount.
The AUA also provides for extraordinary coverage protection if the Department expects to fail to meet the
rate covenant under the Master Indenture. See “SECURITY FOR THE SERIES 2023 BONDS – Rate Covenant.”
Under the AUA, if in any Fiscal Year the amount of Revenues less Operating Expenses is projected to be less than
the sum of the principal of, premium, if any, and interest due in that fiscal year on the Bonds and Subordinated
Obligations, if any, then Outstanding, plus 25% of such Debt Service on Bonds and the amount required under the
agreement providing for the issuance of such Subordinated Obligations, then the Signatory Airlines will make
extraordinary coverage protection payments in addition to landing fees and terminal rents. Such payments shall be
allocated among the Signatory Airlines in a fair and not unjustly discriminatory manner to the landing fee or terminal
rentals or both in the reasonable discretion of the Executive Director.
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See “APPENDIX D – FORM OF AIRLINE USE AGREEMENT – Rates and Charges.”
The New SLC and Other Construction Projects
Each Signatory Airline, by execution of the AUA, has approved the TRP. The NCP was approved
unanimously by the Signatory Airlines in April 2016 in accordance with the provisions of the AUA for approval of
additional capital projects in the Terminal and Airfield Cost and Revenue Centers . Certain other capital investments
at the Airport are subject to approval by at least one of the Signatory Airlines, following consultation between the
Department and the Signatory Airlines, before the Department may undertake such improvements; provided, that
certain capital projects, such as those mandated by the FAA, USDOT or TSA, projects to repair casualty damage,
projects at Cost and Revenue Centers other than the Airfield or Terminal, reasonable repairs, emergency expenditures,
projects funded with PFCs, CFCs or grants, or projects undertaken for and funded by a Signatory Airline may be
undertaken without Signatory Airline approval.
The AUA requires that the Signatory Airlines appoint an Airline Technical Representative to represent them
in matters pertaining to the TRP. The Airline Technical Representative must participate in design review, attend
meetings of the Airport’s Financial Oversight and Construction Committees, and may inspect and review construction
and make recommendations to the Department regarding matters related to the New SLC. The Department must
consult with the Airline Technical Representative in the development of contract documents and construction
schedules, and in the event of certain cost increases. The cost of the TRP originally approved in the AUA was $1.782
billion. This total cost may be increased with the approval of 55% of the Signatory Airlines or Signatory Airlines that
collectively accounted for at least 55% of the terminal rents in the preceding Fiscal Year. Project costs may also be
increased without Signatory Airline approval to reflect additional co sts because of causes beyond the City’s control
following review by the Airline Technical Representative or for elements of the TRP undertaken to satisfy the request
of a Signatory Airline as long as such Airline pays such additional costs.
On March 16, 2021, Delta, acting on behalf of the Signatory Airlines pursuant to the AUA, agreed to an
increase in the overall cost of the New SLC to an estimated construction cost, of $4.45 billion. Delta, and all other
signatories to the Second Amendment, subsequently agreed to a further increase in the cost of the New SLC by
approximately $680.7 million for the costs of the final phase of Concourse B (the N CP) through approval of the
Second Amendment to the AUA effective December 14, 2022. The full cost of the New SLC, including soft costs, is
estimated to be $5.13 billion.
The current estimate of $2.27 billion for the NCP is based upon the final estimated costs for the Concourse
B portion of the project and related projects and recent experience with construction costs in the Salt Lake City area.
The increase in the cost of the NCP over its originally estimated budget reflects expansion of the Concourse B to 47
gates, tenant scope additions, including hardstand expansion, p assenger and baggage system enhancements, and an
accelerated schedule cutting one to two years from the construction schedule, as well as cost escalations due to
materials pricing impacted by the COVID-19 pandemic and a robust construction environment in t he Salt Lake City
area.
In the event of cost increases where the actual bid for a contract exceeds the estimate by more than 10%, or
total costs of a project contract, including change orders, exceed the total estimated cost of that element of the TRP
by 10%, then the City must meet with the Airline Technical Representative prior to the award of any further contracts
and seek agreement on a method o f revising the TRP or accepting such increased costs. If the Department and the
Airline Technical Representative cannot agree, then a majority of a committee composed of the Program Director, the
Department’s Chief Financial Officer and the Airline Technical Representative shall make recommendations to the
Executive Director regarding revising such contract to br ing costs within the allowable limits. Change orders that
would increase the amount of any contract by the greater of $250,000 or more than 10% of the original contract , or
would extend the time to complete a contract by more than 25%, must also be submitted to the Airline Technical
Representative for review and comment before execution by the Department. See “APPENDIX D — FORM OF
AIRLINE USE AGREEMENT — Capital Investments — Special Provisions for the Project.”
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Airport Financial Operations
The Department is an enterprise fund of the City and receives no City funding. All Revenues generated by
the Airport System are deposited in the Revenue Fund and applied in accordance with the Master Indenture. No City
general tax revenues are used for any Airport purpose.
Management’s Discussion of Historical Operating Results
The Department prepares its financial statements on an accrual basis in accordance with generally accepted
accounting principles as set forth by the Government Accounting Standards Boar d (“GASB”). Revenues and expenses
are recorded when earned and incurred, not when received or paid, except for PFCs, which are recorded when received.
The Department’s financial statements for the Fiscal Year ended June 30, 2022, audited by Eide Bailly LLP, are
attached to this Official Statement as APPENDIX A. See also “INDEPENDENT AUDITORS” herein.
The Department receives Revenues from a variety of sources, including from airlines for both landing fees
and terminal rents, parking facilities, rental car operators, in-terminal concessions, ground transportation fees, other
airline fees and miscellaneous revenues. The Department has pursued a strategy of maintaining a low cost per
enplanement (“CPE”) through maximizing non-airline revenues and sharing certain concessions revenues with the
Signatory Airlines, continually seeking ways to improve concessions and associated revenues generated at the Airport
and controlling operating expenses. Prior to the outbreak of the COVID-19 pandemic in 2020, non-airline Revenues
had increased for four consecutive fiscal years and represented approximately 64.5% of all Revenues received by the
Department in FY 2019, or a total of $111.9 million, compared to $89.5 million, or 63.5% of total Revenues in FY
2018. In FY 2022, non-airline Revenues represented approximately 52.4% of all Revenues received by the
Department, or a total of $139.5 million, and airline Revenues, net of revenue sharing, were approximately $123.3
million, more than double the airline Revenues, net of revenue sharing, of $61.6 million in FY 2019. In addition, the
Department accumulated PFC and CFC revenues as well as excess Net Revenues from prior Fiscal Years in
anticipation of TRP funding needs, although with the commencement of construction of elements of the TRP in FY
2015, the amount of cash generated from Airport operations available for future construction has diminished. As of
June 30, 2022, the Department held $378 million in restricted funds available for future construction, including
proceeds of the Series 2021 Bonds and Department Revenues, compared to $216 million at the end of FY 2021 and
$265 million at the end of FY 2020. The Department collected approximately $48.8 million in PFCs in FY 2022,
including interest earnings, compared to $29.2 million in FY 2021, and $14.0 million in CFCs in FY 2022 compared
to $9.0 million in FY 2021. See “THE NEW SLC – Funding Sources for the New SLC – PFCs” and “ – CFCs”. PFC
and CFC collections are used to fund eligible capital projects at the Airport. PFC and CFC collections are directly
related to passenger traffic at the Airport, with PFCs being collected only from eligible enplaned passengers, while
CFCs are paid by the portion of deplaned O&D passengers renting cars at the Airport.
The Department manages its costs in order to maintain a low CPE . In FY 2023, the budgeted CPE is $8.16,
slightly higher than its $8.11 level in FY 2022. In light of the substantial construction and development associated
with the New SLC, the Department has budgeted a CPE of $9.94 for FY 2024, reflecting the costs associated with
operating and maintaining the additional space that is being brought on line at the Airport, although management also
anticipates that the new structures and energy-efficient design of the New SLC will reduce certain costs on a per
square foot basis, such as energy and routine capital maintenance, compared to the cost of operating and maintaining
the Airport’s former aging and inefficient facilities. See “REPORT OF THE AIRPORT CONSULTANT” and
“APPENDIX B – REPORT OF THE AIRPORT CONSULTANT – Airline Revenues” regarding the Airport
Consultant’s projection of CPE at the Airport at completion of the New SLC.
The FAA has approved Department applications to impose and use a $4.50 PFC, as authorized by federal
legislation, and collect a total of $2.158 billion of PFCs through approximately April 1, 2037. The revenues from
PFCs are dedicated to certain FAA-authorized capital projects and are excluded from the Revenues pledged under the
Master Indenture that secure the Bonds, except as expressly provided therein. However, PFCs may be applied to pay
debt service on the Bonds under certain circumstances. See “SECURITY FOR THE SERIES 2023 BONDS – Use of
PFCs to Pay Debt Service.” The Department also requires CFCs to be paid by rental car customers at the Airport.
The current CFC of $5 per day, with a limit of 12 transaction days, is collected by the rental car companies and paid
to the Department and held in a separate account for certain capital projects. CFC revenues are also excluded from
Revenues pledged under the Master Indenture securing the Bonds. See “SECURITY FOR THE SERIES 2023
BONDS – Pledge of Net Revenues” herein.
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The table below presents the Department’s Operating Revenues, Operating Expenses, Non-Operating
Revenues and Expenses and Net Position for Fiscal Years 2018 through 2022 and three quarters ended March 31,
2023 compared to March 31, 2022 .
[Remainder of page intentionally left blank.]
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SALT LAKE CITY DEPARTMENT OF AIRPORTS
TOTAL ANNUAL REVENUES AND EXPENSES
FY 2018 FY 2019 FY 2020 FY 2021
FY 2022 FY 2022
through
March 31
FY 2023
through
March 31
Operating Revenues
Airfield $37,850,416 $40,799,238 $40,689,749 $40,792,381 $51,530,131 $50,681,866
Terminals 56,371,640 60,286,589 58,015,237 84,092,806 111,698,594 88,604,971
Landside 68,304,466 72,852,990, 58,885,211 51,311,766 90,523,390 67,475,873
Auxiliary Airports 1,782,152 2,031,742 2,138,371 2,106,100 2,492,699 1,751,742
General Aviation 2,526,808 2,392,266 2,568,559 3,381,032 3,260,293 2,428,691
Support Areas 7,662,008 6,437,741 5,957,045 6,319,366 5,161,656 3,772,239
Other 2,915,551 2,739,183 3,169,004 4,230,360 3,595,926 7,208,712
Operating Revenues 177,413,041 187,539,749 171,423,176 192,394,249 272,510,077 221,924,094
Less: Airline Revenue
Sharing
(13,007,308) (14,076,885) (10,096,880) (7,710,155) (13,566,127) (10,138,263)
Total Operating Revenues $164,405,733 $173,462,864 $161,326,296 $184,684,094 $258,943,950 211,785,831
Operating Expenses
Airfield $31,484,601 $31,305,225 $32,866,248 $31,303,986 $39,396,566 33,785,699
Terminals 41,079,201 40,435,158 47,183,508 65,663,460 73,755,975 49,345,952
Landside 12,522,236 10,081,900 11,223,893 12,704,070 15,075,369 10,347,307
Auxiliary Airports 3,253,108 4,241,437 4,534,580 4,386,332 4,292,035 2,947,531
General Aviation 995,461 877,645 892,387 747,824 39,952 701,770
Support Areas 1,235,761 1,661,436 1,600,159 1,644,206 1,562,360 1,280,609
Roads and Grounds 6,876,733 7,670,463 8,516,862 5,108,025 4,599,614 3,763,756
Other 2,529,250 2,161,008 3,085,500 2,118,334 1,897,243 1,824,463
Total Operating Expenses
Before Depreciation
99,976,351 98,434,272 109,903,136 123,676,237 140,619,114 103,997,087
Net Federal Grants (ex. AIP) 3,908,282
Operating Income Before
Depreciation
64,429,382 75,028,592 55,331,442 61,007,857 118,324,836 107,788,744
Depreciation 63,826,718 63,549,763 57,604,443 100,890,159 144,018,609 147,652,216
Operating Income/(Loss) 602,664 11,478,829 (2,273,001) (39,882,302) (25,693,773) (39,863,472)
Non-Operating Revenues
(Expenses)
Passenger Facility Charges 47,739,461 49,720,539 40,607,278 29,227,051 48,759,002 35,453,747
Customer Facility Charges 15,740,068 16,012,445 12,477,986 9,015,981 14,024,129 10,991,959
Net Bond interest expense (34,674,629) (72,222,513) (85,497,741) (86,108,427) (116,831,638) (115,059,952)
Bond issuance costs - (3,129,538) - (506,009) (3,010,366) (4,150,366)
Interest Income 21,782,631 36,964,373 19,360,991 3,944,378 11,740,156 3,159,280
Contribution of capital assets - - - (9,028,611) (647,664) 239,104
Other revenue (expenses), net (2,501,999) 9,405,217 1,527,746 (15,942,595) (6,546,909) 3,951,995
Net Non-Operating Revenue
(Expenses)
48,085,532 36,750,523 (11,523,740) (69,398,232) (52,513,290) (65,414,233)
Capital Contributions 18,142,126 14,284,968 31,124,710 94,930,936 71,745,501 44,947,224
Net Position
Increase in Net Position 66,830,322 62,514,320 13,419,687 (14,349,598) (6,461,562) (60,330,481)
Net Position, Beginning of
Period
1,287,810,074 1,354,640,396 1,417,154,716 1,430,574,403 1,416,224,805 1,416,222,404
Net Position, End of Period $1,354,640,396 $1,417,154,716 $1,430,574,403 $1,416,224,805 $1,409,763,243 1,355,891,923
Source: Salt Lake City Department of Airport Audited Financial Statements (FY) and internal records
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Airline Revenues
The Department received approximately $123.3 million, or 30.9% of its total Revenues, in FY 2022 from the
airlines operating at the Airport, net of revenue sharing, compared to $101.4 million, or 33.4% of total Revenues, in
FY 2021 and $61.6 million, or 35.5% of total Revenues in FY 2019 . The Department credited approximately $13.6
million and $7.7 million of revenue sharing back to the Signatory Airlines in FY 2022 and FY 2021, respectively,
resulting in an average CPE of $8.11 in FY 2022, down from $11.24 in FY 2021. Through March 2023, the
Department received approximately $___ million, or ___% of its total Revenues, from airlines operating at the Airport,
net of revenue sharing, compared to $111.3 million, or 52.6% of total Revenues through March 2022, and $59.9
million, or 40.7% of total Revenues, through March 2019. The Department receives Revenues from the Signatory
Airlines and other aviation users of the Airport’s facilities based on their use or lease of the Airpor t’s aeronautical
facilities. The primary sources of such revenues are landing fees, which are charged by 1,000 pounds of landed weight,
and terminal rents, which are charged on a per square foot basis or, for common or joint use facilities, on a per
passenger, per use or daily basis. Other aeronautical fees are derived from aircraft remain overnight parking fees,
support building rentals, fuel farm charges and fees for use of the passenger loading bridges. Landing fees and terminal
rental rates are set annually by the Department pursuant to the terms of the AUA. See “– Airline Use Agreement”
above. The tables below provide a summary of the sources of the Department’s Revenues as well as a break -out of
the sources of airline revenues by carrier.
SALT LAKE CITY DEPARTMENT OF AIRPORTS
SUMMARY OF OPERATING REVENUES
(in thousands)
Fiscal Year ended June 30
2018 2019 2020 2021 2022 FY 2022
through
March
FY 2023
through
March
Landing Fees $32,742 $35,434 $35,638 $35,996 $45,158 $46,272
Airline Terminal Space Rentals 31,028 33,432 34,645 66,680 83,480 68,125
Other Airline Revenues 6,799 6,769 7,031 7,015 8,182 7,063
Total Airline Revenues 70,569 75,635 77,314 109,691 136,820 121,460
Car Rental 29,181 29,856 25,372 24,317 35,378 28,534
Auto Parking Facilities 35,323 36,297 27,974 23,491 48,813 34,339
Other Terminal Rentals 39,041 42,046 37,634 31,608 48,015 35,220
Other Revenues 4,441 3,704 3,129 2,387 3,485 2,373
Credit: Revenue Sharing (13,007) (14,077) (10,097) (7,710) (13,566) (10,138)
Total Operating Revenues $165,548 $173,461 $161,326 $184,684 $258,945 211,788
Source: Department Records
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SALT LAKE CITY DEPARTMENT OF AIRPORTS
SOURCES OF AIRLINE REVENUES
(in thousands)
Fiscal Year ended June 30
FY 2021 FY 2022
Airline
(includes affiliates)
Landing
Fees
% of
Total
Rents
% of
Total
Landing
Fees
% of
Total
Rents
% of
Total
Alaska $ 687 1.9% $ 1,814 2.9% $ 960 2.1% $ 2,333 3.0%
American 1,507 4.2 3,916 6.3 2,037 4.5 4,832 6.2
Delta 24,625 68.4 42,745 68.4 29,909 66.2 54,593 70.0
Frontier 513 1.4 1,659 2.7 622 1.4 2,114 2.7
JetBlue 406 1.1 1,669 2.7 750 1.7 2,347 3.0
Southwest 2,388 6.6 7,187 11.5 4,053 9.0 7,181 9.2
United 1,155 3.2 3,475 5.6 1,867 4.1 4,578 5.9
Other (1) 4,715 13.1 - 0.0 4,960 11.0 - 0.0
TOTALS: $35,996 100.0% $62,465 100.0% $45,158 100.0% $77,978 100.0%
Source: Department Records
(1) Includes charter, cargo and commuter.
Landing Fees. Landing fees at the Airport increased from $36.00 million in FY 2021 to $45.16 million in
FY 2022. During this period the landing fee per thousand pounds of landed weight decreased from $2.54 to $2.47.
The landing fee for FY 2023 is $2.82 and the landing fee for FY 2024 is budgeted to be $3.43. Under the AUA, any
variance between the landing fees collected and the direct and indirect costs of operating the Airfield Cost and Revenue
Center during a fiscal year is calculated after the fiscal year ends, and the adjustment is either added to, in the case of
a shortfall, or credited to, in the case of a surplus, the landing fee for the second succeeding fiscal year, although the
Department retains the ability to revise the landing fee if the amount to be collected in any fiscal year is substantially
less than the expected costs. Landed weights at the Airport increased from 13,987,652 thousand pounds in FY 2021
to 15,989,164 thousand pounds in FY 2022 due to an increase in passenger aircraft operations resulting primarily from
the national recovery from the COVID-19 pandemic. Through March 2023, landed weights at the Airport increased
to _____________ thousand pounds from _______________ thousand pounds through March 2022, compared to
10,649,608 thousand pounds through March 2 019, prior to the pandemic.
Terminal Rents. Each fiscal year, the Department establishes terminal building rental rates and fees on a
commercial compensatory basis as required by the terms of the AUA. The annual calculation allows the Department
to recover its budgeted direct and indirect capital and operating costs for such leased terminal space , but the
Department bears the risk of not recovering the cost of any unleased terminal space. As of June 30, 2023, substantially
all available airline space at the Airport was either leased, or in use on a common or joint use basis. Similar to the
method described above for adjusting landing fees on an annual basis, terminal rates and fees are also adjusted based
on actual costs incurred and rents received. The Department calculates the variance from the budget estimates after
the fiscal year ends, and the adjustment is either added to the second succeeding year’s terminal rental rate (in the case
of a shortfall) or credited against such rental rate (in the case of a surplus). The Department does not recover the costs
allocable to unrented space through its terminal rentals. The Department can also make adjustments during the year
to the rates charged to the Signatory Airlines for terminal rentals.
The Department currently leases 64 of the 71 currently operational gate positions to various Signatory
Airlines serving the Airport. The remaining gates are held for use on common use basis and airlines using such gates
are charged a per turn or daily fee. Current demand at the Airport has outstripped the number of gates available, and
the Department routinely requires Signatory Airlines to allow other airlines to operate from preferentially leased space
during hours when the Signatory Airline has no scheduled operation at the gate or to share common use gates. In
addition to the 51 gates, there are 15 hardstand positions from which Delta operates, as well as five additional
hardstand positions that are operated by the Department on a common use basis. Passengers boarding at hardstand
positions use temporary holdrooms located in Concourse B and are bused to the aircraft. Upon completion of
Concourse A later in calendar year 2023, the 15 hardstands used for Delta’s operations are expected to removed from
service, although the Department expects to maintain five hardstand positions to the north of Concourse B for the
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remainder of the NCP and construct an additional four hardstand positions served from the east of Concourse B East
to accommodate the strong demand for operational space. Terminal rental revenue from the airlines in FY 2022 was
$83.5 million, an increase of $16.8 million from the $66.7 million received in FY 2021, which in turn was an increase
of $32.0 million compared to the $34.6 million in terminal revenues received from the airlines in FY 2020. The
terminal rental rate for class 1 conditioned space was $167.59 per square foot in FY 2022 compared to $139.60 per
square foot in FY 2021. The increased rental rate for FY 2022 reflects the costs associated with elements of the New
SLC being placed in service and debt service becoming payable following the capitalized interest period. Through
March 2023, terminal revenues received from the airlines operating at the Airport increased to $___ million from
$68.1 million through March 2022 and $25.1 million through March 2019. The rate for FY 2023 is $171.07 per square
foot, and the budgeted terminal rental for FY 2024 is $184.03. Under the AUA, the Department is permitted to recover
its budgeted costs of operating and maintaining the terminal space as adjusted to account for actual costs, plus certain
approved capital costs. The approved capital costs include the capital costs of the New SLC, provided that the
Department may not recover capital costs of the New SLC paid with accumulated capital (Department funds), PFCs
or AIP grants, and if costs increase beyond certain limits, the Department and the Signatory Airlines must undertake
a process to resolve the overruns. See “ – Airline Use Agreement” above and “APPENDIX D — FORM OF THE
AIRLINE USE AGREEMENT” for a more complete discussion of the provisions of the AUA.
Other Airline Fees. As described above, the Department receives fees from the airlines operating at the
Airport from several other sources, including rental of support buildings, which generated $4.3 million in FY 2022;
passenger loading bridge fees, which generated $1.6 million in FY 2022; use of the fuel farm, which generates
approximately $1.8 million per year under an agreement effective January 1, 2021; and RON fees, which generated
approximately $400,000 in FY 2022.
Non-Airline Revenues
The Department seeks to maximize non-airline Revenues and shares a portion of certain Selected Concession
Revenues, as defined in the AUA, consisting of rents received from rental car concessions, excluding CFCs, and in-
terminal concession revenues, with the Signatory Airlines in order to maintain a low CPE and to promote expansion
of service by carriers. The primary sources of the Department’s non-airline Revenue are parking fees (which are not
shared with the Signatory Airlines), rental car fees and in-terminal concessions. Approximately $148.6 million, or
37.3% of total Revenues, were generated from non-airline sources in FY 2022, compared to $90.4 million, or 29.6%
of total Revenues in FY 2021 and $111.9 million, or 64.5% of total Revenues in FY 2019 . Non-airline revenues for
the nine-month period ending March 31, 2023 were $___ million compared to $100.5 million and $82.7 million for
the same nine-month period for fiscal years 2022 and 2019, respectively. The percentage of airline Revenues to non-
airline Revenues is shifting in part due to the increased cost of the new Terminal and concourse facilities being rented
by the airlines, compared to lesser increases in non-aeronautical revenues per passenger, but a significant increase in
passengers.
Parking Revenues. Airport parking revenues more than doubled between FY 2021 and FY 2022, from $23.5
million to $48.8 million, reflecting the return of O&D passenger traffic at the Airport. This also represents a
substantial increase over parking revenues in FY 2019, which were $36.3 million. This increase was primarily because
of recovery of air-travel demand as the COVID-19 pandemic abated; there were no parking rate increases during this
period. Parking revenues are generated according to the parking rates established by the Department. In FY 2020,
the Department increased the daily rate for parking in the garage from $32 to $35 and implemented a fee of $55 per
day for Premium Reserved Parking. The Department anticipates increasing the fee for economy parking from $10 per
day to $12 per day on July 1, 2023. The Department does not share parking revenues with the Signatory Airlines as
an offset to either landing fees or terminal rents; rather, the Department retains the business risk and the return of this
Cost and Revenue Center. Parking revenues for the nine-month period ending March 31, 2023 were $___ million
compared to $34.3 million and $32.3 million for the same nine-month period for fiscal years 2022 and 2019,
respectively.
Rental Cars and Peer-to-Peer Car Sharing. Fees and rentals from the car rental companies increased from
$24.3 million in FY 2021 to $35.4 million in FY 2022, primarily because of recovering travel demand as the COVID-
19 pandemic abated. This is also a significant increase over the $29.9 million in FY 2019 fees and rentals from rental
car companies. Fees and rentals from car rental companies for the nine-month period ending March 31, 2023 were
$___ million compared to $28.5 million and $22.9 million for the same nine-month period for fiscal years 2022 and
2019, respectively. The agreements with the rental car companies for use of the new RSS and QTA facilities are for
a ten year term commencing on March 1, 2016. These agreements provide for a payment of an effective 11.1%
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commission on rental car revenues, plus fair market rent on a per square foot basis for all facilities occupied by the
rental car companies, plus CFCs. The rental car facilities are operated and maintained by a third pa rty engaged by the
rental car companies. CFCs, which are not Revenues pledged to payment of the Series 2023 Bonds, generated an
additional $14.0 million in FY 2022 and $9.0 million in FY 2021, compared to $16 million in FY 2019, and will be
applied to fund certain capital construction related to rental car company operations at the Airport. Off-airport rental
car companies operate under month-to-month agreements and pay to the Department fees equating to 10% of revenues
for access to the Airport.
The City and Turo Inc. (“Turo”) entered into a Peer-to-Peer Vehicle Sharing Operating Agreement effective
September 23, 2021 that gives Turo the right to operate at the Airport. For the privilege of o perating at the Airport,
Turo has agreed to pay the Department ten percent of its gross revenues, which resulted in revenue received by the
Department for Turo’s first full year of operations, CY 2022, of $1.2 million. The Department will continue to monitor
Turo and its potential financial impacts on the rental car companies doing business at the Airport.
TNCs and Ground Transportation. As of July 1, 2020, the Department began collecting a charge of $2.50
for each passenger vehicle with 1-9 seats operated by a TNC operator at the Airport that picks up or drops off a
passenger, with a flat fee of $10 per operation for vehicles with 10 or more seats . The fees prior to that ranged from
$1.13 to $2.46 per pick up or drop off. Since FY 2016, when TNCs were first permitted to operate at the Airport,
TNC revenues to the Airport have grown from approximately $247,100 to $3.9 million in FY 2022. [Although ground
transportation revenues from other services at some airports that have a substantial TNC presence have declined, the
Airport’s total ground transportation revenues, excluding TNC revenues, increased slightly from $____ million in FY
2021 to $____ million in FY 2022.] Although without TNC trips, other ground transportation trips have declined
from approximately 793,000 in FY 2018 to 614,000 in FY 2022, representing a 12.7% decline in such non-TNC
ground trips during that period. However, total ground transportation revenues, including TNCs, increased from $___
million in FY 2021 to $___ million in FY 2022, compared to $72.4 million in FY 2019. Ground transportation revenue
excluding TNCs for the nine-month period ending March 31, 2023 was $___ million compared to $___ million and
$51.8 million for the same nine-month period for fiscal years 2022 and 2019, respectively. Total ground transportation
revenue for the nine-month period ending March 31, 2023 was $___ million compared to $___ million and $54.5
million for the same nine-month period for fiscal years 2022 and 2019, respectively. As shown above, although TNC
operations have increased substantially since FY 2016, both parking and rental car revenues have continued to grow.
There can be no assurance, however, that TNC operations will not have an adverse impact on parking fees, rental car
revenues and other ground transportation revenues in the future.
Terminal Concessions. Revenue from concessions increased from $12.68 million in FY 2021 to $22.76
million in FY 2022, exceeding the $20.5 million in FY 2019, primarily because of an increase in passengers due to
the abatement of the COVID-19 pandemic, the majority of the in-terminal concessions locations being open, and
greater concessions opportunities in the new Termina l and concourses. Concessions revenues for the nine-month
period ending March 31, 2023 were $___ million compared to $___ million and $15.5 million for the same nine-
month period for fiscal years 2022 and 2019, respectively. Since opening phase 1 of the New SLC, sales per enplaned
passenger has continued to climb from $7.62 per enplaned passenger for the month of September 2020 to $12.04 for
the month of January 2023. Among other factors, the Department attributes the growth to increased concessions
square footage, the right mix of concessions concepts, and a street pricing policy which went into effect with the
opening of the New SLC.
$9.01 $7.62
$12.04
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
Sales Per Enplaned Passenger
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Source: Department records based upon monthly concessionaire reports.
Other Revenue Sources. The Department also derives Revenues from other sources, including cargo and
other building rentals, hangar rents for both air carrier maintenance facilities and for general aviation facilities at the
Auxiliary Airports, FBO rents and fees and other buildings leased by the Department, such as the Touch n’ Go
Convenience Store and the Boeing assembly facility. Revenues from these sources totaled $5.4 million in FY 2022,
compared to $5.2 million in FY 2021. The increase is primarily a result of the resurgence of travel following the
abatement of the COVID-19 pandemic. Other revenues for the nine-month period ending March 31, 2023 were $___
million compared to $2.4 million and $5.0 million for the same nine-month period for fiscal years 2022 and 2019,
respectively.
In addition to Revenues, the Department received federal relief grants under the federal CARES Act, CRRSA
and ARPA (which are not Revenues under the Trust Indenture) totaling 183.7 million which are being applied to
reduce O&M Expenses. See “SECURITY FOR THE SERIES 2023 BONDS – Rate Covenant.” Finally, the federal
government awarded the Department $125.8 million in BIL AIG grant funding; the Department drew down $25.2
million from such BIL funds in FY 2022 and intends to draw the same amount in each of FY 2023 and FY 2024 and
apply such BIL grants to the cost of the NCP and other capital costs at the Airport.
Operating Expenses
The Department’s operating expenses fall into six primary categories and include salaries and ben efits,
materials and supplies, services, which include utilities, intergovernmental charges, and other operating expenses.
Operating expenses are allocated to each of the Revenue and Cost Centers and the indirect G&A and roadways Cost
Centers. Amounts allocable to the two aeronautical cost centers are recovered through landing fees and terminal
rentals, while the Department seeks to generate revenues in excess of the costs allocable to the other non-aeronautical
Revenue and Cost Centers from allocable rents, fees and charges. Costs allocable to the G&A and roadways Cost
Centers are allocated to and recovered from each of the seven direct Revenue and Cost Centers based upon the
proportion of the G&A and roadways services properly allocable to such Revenue and Cost Centers. The
Department’s management of operating expenses is an important aspect of maintaining the CPE at the Airport within
the Department’s desired range. As a result, the Department’s operating expenses (excluding capital outlays) have
increased at a compounded annual growth rate (“CAGR”) of 1.24% from FY 2019, before the COVID-19 pandemic,
through FY 2022 from a total of $106.9 million in FY 2019 to $107.3 million in FY 2022. This reflects the budget
cuts implemented by the Department in response to the COVID-19 pandemic as well as the recovery of passengers
and air service and the need to increase staffing to accommodate such increases. The Department has budgeted $161.6
million for operating expenses in FY 2024, and forecasts that the actual amount of net operating expenses for FY 2024
will be $124.6 million, after application of $37 million of ARPA grant funds, reflecting the return of normal passenger
traffic and the opening of elements of the New SLC in calendar years 2023 and 2024.
SALT LAKE CITY DEPARTMENT OF AIRPORTS
SUMMARY OF OPERATING EXPENSES
(in thousands)
Fiscal Year ended June 30
2018 2019 2020 2021 2022
FY 2022
through
March 31
FY 2023
through
March 31
Personnel Services $50,076 $40,258 $48,584 $46,782 $47,805 $41,643
Charges/Services/Fees 23,996 26,300 25,118 40,762 51,723 32,202
Operational Maintenance Supplies 11,343 12,610 12,381 11,041 13,673 12,828
Utilities 6,166 5,721 5,697 6,664 7,176 5,021
Fire Services 5,130 5,364 5,587 5,262 5,890 4,380
Police Services -- 3,891 8,332 8,717 9,173 6,412
Salt Lake City Administration 3,265 4,288 4,204 4,448 5,180 1,511
Total Operating Expenses $99,976 $98,433 $109,903 $123,676 $140,619 103,997
Source: Department Records
* Starting on January 1, 2019, the Airport Police combined with the Salt Lake City Police, and all wages, benefits, and operating expenses are
broken out separately.
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The Department’s largest expense in FY 2022 is comprised of a combination of charges, services, and fees,
which were cumulatively $51.7 million in FY 2022, a 26.9% increase from the $40.76 million in FY 2021, and which
comprised approximately 36.8% of the total operating expenses for FY 2022. These services include costs associated
with outsourcing parking lot operations, shuttle bus services, janitorial services and professional and consulting
services. Since FY 2018, the cost of such services has increased from $23.9 million to $51.7 million in FY 2022. The
increase in expenses for services was driven by expenses related to expanded hardstand operations and the
management of a new IT system that did not exist in FY 2021, as well as janitorial and maintenance expenses.
The Department’s personnel services were its second-largest expense, comprising $47.8 million in FY 2022,
a 2.2% increase over the $46.8 million spent on personnel services in FY 2021 , and were 34.0% of the Department’s
FY 2022 expenses overall. The Department pays salaries and wages of its employees directly and reimburses the City
for its share of fringe benefits, including insurance and pension benefits allocable to the Department’s staff.
Operational maintenance supplies constituted approximately 9.7% of the Department’s operating expenses
and were $13.7 million in FY 2022, compared to $11.0 million in FY 2021. Intergovernmental charges comprised
approximately 19.5% of the total operating expenses for FY 2022, and were $27.4 million, compared to $25.1 million
in FY 2021. These charges consist primarily of reimbursements to the City for the costs associated with the City’s
provision of aircraft rescue and firefighting services at the Airport, which accounted for $5.9 million of such costs in
FY 2022, compared to $5.3 million in FY 2021, as well as reimbursement for other centralized services, such as legal,
accounts payable, purchasing, human resources and contract management services . Starting on January 1, 2019, the
Airport Police combined with the Salt Lake City Police, and the Department now reimburses the City for the actual
direct and indirect costs of the salaries, benefits and related expenses of the police officers assigned to the Airport,
which accounted for $9.2 million in FY 2022, compared to $8.7 million in the FY 2021.
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Liquidity
The table below shows the Airport’s liquidity position for the past five fiscal years. The table below does
not include any unused and available draws on the Subordinate Revolving Obligation Credit Agreement, which is
available for any lawful use at the Airport. The table below also does not reflect application of the remaining ARPA
grant funds ($74 million), which the Department expects to apply in FY 2023 and FY 2024 to pay a portion of the
Airport’s O&M expenses. Beginning in FY 2021, the Department determined to apply a portion of the amounts on
deposit in the Surplus Fund to the payment of costs of the New SLC. Hence, the days cash on hand reflects this
discretionary use of the Surplus Fund. The table includes proceeds held in both the PFC and CFC Accounts. The
Department expects to expend the majority of PFCs collected towards payment of principal of and interest on Bonds
issued to fund PFC-eligible elements of the TRP, and the Department ex pects to apply CFCs to reimburse itself for a
portion of the costs of the recently completed Parking Facility that will serve rental car companies, and elements of
the roadway system serving the rental car facilities.
SALT LAKE CITY DEPARTMENT OF AIRPORTS
AIRPORT LIQUIDITY POSITION AND DAYS CASH ON HAND
Fiscal Year ended June 30
($ in millions)
Fund Balances FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Unrestricted cash
Surplus Fund $242 $460 $397 $125 $170
Revenue Fund 14 2 3 15 15
Total Unrestricted Cash $256 $462 $400 $140 $185
Restricted Funds
O&M Reserve* 23 25 28 32 36
CFC Account 1 2 3 0 1
PFC Account 10 10 13 3 4
Common Reserve Fund**
202 314 220 206 388
Total Restricted Funds
$236 $352 $264 $241 $429
Total Unrestricted Cash
and Restricted Funds $492 $813 $664 $381 $614
Funds Available for
Operations [A]† $279 $487 $428 $172 $221
O&M Expenses [B]†† $100 $98 $110 $124 $141
Days Cash on Hand = [A]
/ ([B]/365) 1,018 1,814 1,420 506 572
Source: Department Records
* Includes $5 million in the Renewal & Replacement Fund per the AUA.
** Also includes capitalized interest
†Surplus Fund, Revenue Fund, O&M Reserve Fund and Renewal & Replacement Fund.
††Excluding depreciation
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Personnel Considerations
As of June 30, 2022, the Department had 520 full-time-equivalent (“FTE”) employees. Approximately
81.9% of the Department’s employees are employed in the Maintenance (262) and Operations (164) Departments.
This is an increase of 22 FTEs compared to FY 2021 and 2020, and reflects the need to increase staffing to operate
and maintain the new facilities that are being brought on-line as elements of the New SLC are completed. Of the new
hires in FY 2022, 16 were for Maintenance and nine were for Operations, while Engineering decreased by two FTEs
and Finance and Accounting lost one FTE position.
Prior to July 1, 2019, the Airport’s police officers were direct employees of the Department. However, the
City and the Department agreed to transfer the Department’s police officers to the City’s Police Department, effective
as of January 1, 2019. The Department retains a small staff of dedicated Airport police officers, but the Airport police
officers have direct supervision and back -up from the remainder of the City’s police force and are direct employees
of the City. The Department reimburses the City for the actual direct and indirect costs of the salaries, benefits and
related expenses of the police officers assigned to the Airpo rt. According to the Department, the transfer of the
Airport’s police officers to the City’s Police Department has not resulted in a material difference between the costs
budgeted by the Department for police services and the actual costs charged by the City.
The Department reimburses the City for the actual direct and indirect cost of providing Aircraft Rescue and
Fire Fighting, Police and certain other services. On March 22, 2011, the City Council passed the City’s Collective
Bargaining and Employee Representation Joint Resolution (the “Joint Resolution”). Among other provisions, the
Joint Resolution recognizes eligible City employees’ collective bargaining rights, sets forth procedures for labor
negotiations between the City and certain labor unions, requires City and union representatives to act in good faith
when negotiating labor matters, and requires unions covered by the Joint Resolution to take affirmative action to end
employee strikes and work stoppages. Pursuant to the Joint Resolution, the City and Local 1004 of the American
Federation of State, County and Municipal Employees, AFL-CIO (“AFSCME”), entered into a Memorandum of
Understanding (the “MOU”) that was renegotiated in June 2020 and will expire in June 2023, replacing the prior MOU
with AFSCME that was in effect through June 27, 2020. The MOU establishes the wages, benefits and employment
conditions of eligible employees identified by the City, including 252 unionized City employees at the Airport as of
March 30, 2021. In addition to other eligible City employees, the MOU covers all Public Safety and certain
maintenance employees, Airport Operations Coordinators and eligible employees in the Police and Fire Department ,
including those who serve at the Airport. Pursuant to the MOU, AFSCME has agreed not to engage or encourage
employees to engage in any strike, work stoppage or other collective concerted withholding of services. No eligible
employee under the MOU will receive any benefits or wages while he or she is engaged in a strike, work stoppage or
other interruption of work.
The Department considers its relations with its employees and the union representatives of the City’s public
safety employees that are members of AFSCME Local 1004 to be good.
Certain users of the Department’s facilities that generate a substantial portion of the Department’s Revenues,
such as the air carriers, are dependent upon successful management of their own labor rela tions for continuation of
their operations. These matters are beyond the control of the Department, and significant labor disputes in these areas
could have an adverse effect on the Department’s Revenues.
Retirement and Other Post-Employment Benefits
Employee Workforce and Retirement System. The Department participates in the Utah Retirement Systems,
which provide three cost-sharing multiple-employer public employee retirement systems and one multiple employer
agent system, each of which are defined benefit retirement plans covering public employees of the State and employees
of participating local governmental entities (the “URS”). The URS are administered under the direction of the Utah
State Retirement Board (the “URS Board”) whose members are appointed by the Governor of Utah. Each year, as
approved by the State Legislature, the URS Board sets rates, enacts rules and implements policies related to the
pensions and benefits the Department’s retirees receive. Starting in FY 2014-15, GASB Statement Number 68 requires
URS to pass on pension and retirement liability to the public entities it serves, including the Department. Working
with the Department’s independent auditors and State specialists, this net pension asset has been recorded on the
Department’s financial statements for the fiscal year ending June 30, 2022 in the amount of $12.7 million and a net
pension liability of $0. The reasons for the favorable status of the Department’s pension funding include favorable
investment returns for the URS over the pasts several years and the transition of the Department’s emplo yees, through
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new hiring and retirement of older employees, to the Tier 2 systems . The Department contributed $3.29 million in
FY 2022 and $3.71 million in FY 2021 to the URS with respect to the pension and retirement liabilities of its
employees. In FY 2021, the Department reported a net pension asset of $440,000 and a net pension liability of $1.2
million, compared to a net pension asset of $0 and a net pension liability of $8.4 million in FY 2020 . Based upon the
actuarial assumptions used, the pension plan’s fiduciary net position was projected in the latest valuation, on January
1, 2021, to be available to make all projected future benefits payments of active and inactive employees. See
“APPENDIX A — SALT LAKE CITY DEPARTMENT OF AIRPORTS ANNUAL COMPREHENSIVE
FINANCIAL REPORT OF THE DEPARTMENT FOR THE FISCAL YEAR ENDED JUNE 30, 20 22 — Notes to
Financial Statements — 6 — Pension Plans.”
Other Postemployment Benefits. As a result of a City-wide undertaking, commencing January 1, 2016, all
postemployment benefits other than pensions for City employees, including those employed by the Department, were
terminated. No contributions have been made since January 31, 2016 and none are expected to be made going forward.
Risk Management
The Department carries a general liability policy with a maximum limit of $500,000,000 covering bodily
injury, property damage, excess auto liability and hangarkeeper’s liability. The policy includes sublimits of $50
million for each occurrence for personal and advertising injury, and $50 million for commercial automobiles. The
Airport also carries war liability/TRIA coverage of $150,000,000. The Airport facilities are covered by a multi-risk
property insurance policy with a maximum limit of $1,000,000,000 and $100,000 deductible per occurrence. Earth
movement carries a sub-limits of $100,000,000 with a 1% deductible per location subject to a minimum of $100,000
and a maximum of $5,000,000 deductible. Flood carries a sublimit of $150,000,000 subject to a $100,000 minimum
and $5,000,000 maximum deductible for all locations in any one occurrence. Named Storm carries a $1,000,000,000
limit and a 5% deductible, subject to a minimum $250,000 deductible per occurrence. Business Interruption is covered
at $200,000,000, subject to a minimum $100,000 deductible. Cyber Coverages including standard perils is covered
up to $5,000,000, with a $100,000 deductible. The Department carries commercial automobile liability coverage
(scheduled vehicles) of $1,000,000 per occurrenc e with no deductible.
Contractors, including the CMAR, are required to carry builders’ risk insurance covering all facilities under
construction during the full period of construction. As elements of the New SLC are completed, the Department
expects to continue evaluating its coverage limits and increase them as appropriate to account for the increased value
of the new construction.
Pursuant to Amendment No. 1 to the HDJV CMAR Contract, HDJV has provided, is administrating and has
implemented a Contractor Controlled Insurance Program (“CCIP”) that covers on-site exposures for HDJV and, with
limited exceptions, all subcontractors performing work on the TRP and NCP. Demolition and environmental
remediation contracts; off-site labor or fabrication; architects, engineers and consultants; contracts under $20,000; and
work, labor, transportation and other activities outside the boundaries of the TRP and NCP site are excluded from
participation in the CCIP. The coverage provided under the CCIP includes on -site Worker’s Compensation, on-site
Employer’s Liability, on-site general liability and on-site excess liability insurance with combined limits equal to
$25,000,000. Under its CMAR Contract, HDJV also is required to carry additional insurance coverage, including
builder’s risk and professional liability coverage. The City is included as an additional insured on all such policies
of insurance except Worker’s Compensation. HDJV’s policies of insurance are primary and any other insurance
carried by the City are excess and not contributing.
The City Treasurer is covered under a $10,000,000 public official’s bond. The City also has: (1) public
employee dishonesty insurance (an employee “blanket policy”) with a $1,000,000 limit for theft and a $20,000
deductible. The City is self-insured for losses above the limits and below the deductibles. Further, the City is self -
insured for unemployment. The Risk Management Fund, an internal service fund, has been established to pay these
claims along with health insurance premiums and certain admi nistrative expenses.
Debt Management Policy
The City maintains a Debt Management Policy (“Debt Policy”) that is applicable to the Bonds issued by the
City for the benefit of the Department. The Series 2023 Bonds comply with the requirements of the Debt Policy. The
Debt Policy covers the types of debt that the City may issue; the legal, policy and financial limits that govern the
issuance of debt and use of the proceeds of such debt; debt structuring practices; debt issuance practices; and debt
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administration and management practices, including tax law requirements, arbitrage regulations and disclosure
practices.
Futures, options other than options to enter into swaps, calls or puts are not legal investments under the Money
Management Act. Interest rate exchange or swap contracts, cash flow exchange or swap contracts, any derivatives of
these contracts, including forward swaps and options to enter into swaps, and interest rate floors, caps and collars may
only be entered into if it is first determined that such contract (a) is designed to reduce the amount or duration of
payment, rate, spread or similar risk or (b) is reasonably anticipated to result in a lower borrowing cost. Such contracts
are to be utilized for the control or management of debt or the cost of servicing debt and not for speculation. It is the
City’s current practice not to enter into such derivative contracts, but no assurance can be given that the City or
Department will not enter into such contracts in the future.
Investment Policy
It is the policy of the City to invest public funds, of which the Department ’s funds are a part, in accordance
with the principles of sound treasury management and in compliance with State and local laws, regulations and other
policies governing the investment of public funds, specifically, according to the terms and conditions of the State
Money Management Act of 1974 and Rules of the State Money Management Council as currently amended
(collectively, the “Money Management Act”), and the City’s own written investment policy. The following investment
objectives, in order of priority, are required to be met when investing public funds: (1) legality, (2) safety of principal,
(3) need for liquidity, (4) maximum yield on investments consistent with the first three objectives and (5) maturity of
investments, so that the maturity date does not exceed the anticipated date of the expenditure of funds or as required
by the Money Management Act. Bond and Note proceeds and all funds pledged or otherwise dedicated to the payment
of principal of and interest on those Bonds and Notes will be invested in accordance with the applicable terms of the
borrowing instruments, the Master Indenture and Subordinate Master Indenture in the case of the Department, or if
silent or less restrictive, then in accordance with Section 571-7-11 of the Money Management Act. See also
“SECURITY FOR THE SERIES 2023 BONDS – Permitted Investments” and “APPENDIX C – FORM OF MASTER
INDENTURE – Article I – Definitions; Interpretation; and – Article VI – Investment of Moneys; Permitted
Investments,” relating to investment of Series 2023 Bond proceeds and amounts held in the funds and accounts under
the Indenture.
The City may use investment advisers to conduct investment transactions on its behalf as permitted by t he
Money Management Act and local ordinance or policy. Investment advisers must be certified by the Director of the
Utah State Division of Securities of the Department of Commerce. Only qualified depositories as certified by Utah’s
Commissioner of Financial Institutions are eligible to receive and hold deposits of public funds. The State Money
Management Council issues a quarterly list of certified investment advisers, certified dealers and qualified depositories
authorized by State statute to conduct transactions with public treasurers. Transactions involving authorized deposits
or investments of public funds may be conducted only through issuers of securities authorized by Section 51 -7-11(3)
of the Utah Code, qualified depositories included in the current State list, and certified dealers included in the current
State list. The City Treasurer must take delivery of all investments purchased, including those purchased through a
certified investment adviser. This may be accomplished by the City Treasurer taking physical delivery of the security
or delivering the security to a bank or trust company designated by the City Treasurer for safekeeping. The City
Treasurer may use a qualified depository bank for safekeeping securities or maintai n an account with a money center
bank for the purpose of settling investment transactions and safekeeping and collecting those investments.
In FY 2011 the Department began investing certain of its funds in U.S. Treasury and Agency notes, rather
than in the Utah State Public Treasurer’s Investment Fund (“PTIF”), in order to increase return on restricted and
reserved funds. As of June 30, 2022, the Department held approximately $145.9 million in U.S. Treasury and Agency
notes combined.
City policy provides that not more than 25% of total City funds or 25% of the qualified depository’s allotment,
whichever is less, can be invested in any one qualified depository. Not more than 20% of total City funds may be
invested in any one certified out-of-state depository institution. However, there is no limitation placed on the amount
invested with the PTIF and other money market mutual funds, provided that the overall standards of investments
achieve the City’s policy objectives. As of June 30, 2022, the Department had deposits with qualified depositaries
totaling $5.4 million, of which $500,000 was covered by federal depositary insurance, and the remaining $4.9 million
was uninsured and uncollateralized.
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The City’s entire portfolio, including the invested funds of the Department, is currently in compliance with
all of the provisions of the Money Management Act.
The PTIF is a local government investment fund, established in 1981, and managed by the State Treasurer.
As of June 30, 2022, Department funds on deposit in the PTIF totaled approximately $772.1 million, which represents
a substantial portion of the Department’s funds. All investments in the PTIF must comply with the Money
Management Act and rules of the State Money Management Council. The PTIF invests primarily in money market
securities. Securities in the PTIF include certificates of deposit, commercial paper, short -term corporate notes,
obligations of the U.S. Treasury and securities of certain agencies of the federal government. By policy, the maximum
weighted average adjusted life of the portfolio is not to exceed 90 days and the maximum final maturity of any security
purchased by the PTIF is limited to five years. Safekeeping and audit controls for all investments owned by the PTIF
must comply with the Money Management Act. The PTIF is not rated, and the average maturities of those investments
is not known.
All securities purchased are delivered versus payment to the custody of the State Treasurer or the State
Treasurer’s safekeeping bank, assuring a perfected interest in the securities. Securities owned by the PTIF are
completely segregated from securities owned by the State. The State has no claim on assets owned by the PTIF except
for any investment of State moneys in the PTIF. Deposits are not insured or otherwise guaranteed by the State.
Investment activity of the State Treasurer in the management of the PTIF is reviewed monthly by the State
Money Management Council and is audited by the State Auditor.
The information in this section concerning the current status of the PTIF has been obtained from sources the
Department believes to be reliable, but the Department and the City take no responsibility for the accuracy thereof.
See “APPENDIX A – ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE DEPARTMENT
FOR THE FISCAL YEAR ENDED JUNE 30, 2022 — Notes to the Financial Statements — Note 2 – Deposits and
Investments.”
ENVIRONMENTAL, SOCIAL AND GOVERNANCE FACTORS
Environmental and Sustainability Factors
The Department is attentive to environmental considerations affecting the Great Salt Lake (the “Lake”) basin,
including the impacts of climate change on Salt Lake City and the surrounding region. Like much of the Western
United States, Utah has experienced long-term drought, contributing to a decline in the Lake’s water volume and to
air-quality challenges in the Salt Lake City region. The Department has responded to these environmental challenges
and others through a longstanding, demonstrated commitment to strengthening the Airport’s sustainability and
reducing the environmental impacts of the Airport’s facilities and operations for the benefit of the greater Salt Lake
City community.
Sustainability is a core value of the Department. As a reflection of that value, the Department has taken
many steps to enhance the sustainability of its operations and facilities, and the Department maintains sustainability
metrics on its website. In 2021 the Department achieved LEED Gold certification for then-constructed facilities of
the TRP and Concourse B West. The Department anticipates achieving LEED Gold certification for the entire New
SLC, in compliance with City ordinance. To achieve LEED certification, facilities must meet both environmental
criteria, including energy-efficiency and water-use standards, and social-equity criteria, including those concerning
compliance with the Americans with Disabilities Act. The New SLC replaces older, energy-inefficient buildings with
new, highly efficient buildings that are expected to reduce energy consumption per squa re foot substantially.
As part of its focus on sustainability, the Department is committed to reducing air pollution resulting from
its operations, including emissions of greenhouse gases and other pollutants. The Department has invested significant
sums in reducing emissions at the Airport through the use of alternative fuels and electrified ground service equipment
(“GSE”) and other vehicles, such as airport buses fueled by compressed natural gas or electricity. The New SLC
includes 536 charging stations that will enable the airlines operating at the Airport to fully electrify their GSE and 164
publicly accessible vehicle-charging stations in the Airport’s parking facilities. The Department has developed a five-
year Green Fleet Action Plan to transition Airport fleet vehicles to alternative fuels; as of June 30, 2023, all GSE must
be converted to electric power. While most of the Airport’s carbon footprint is attributable to emissions outside the
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control of the Department, the design of the New SLC has helped reduce certain aircraft emissions by 35,000 metric
tons annually, including by more efficiently providing centrally conditioned air to parked aircraft and by reducing
taxiing times through the linear layout of the New SLC concourses. Additionally, through the implementation of a
software analytics program, the Department has identified opportunities to save over 1,800 hours of electric heater
run time per month. Reflecting the Department’s environmental commitment, the Department has participated since
2017 in Airports Council International’s (“ACI”) Airport Carbon Accreditation program, the sole institutionally
endorsed carbon-management certification standard for airports. The Airport has advanced to that program’s Level
3, which requires the Department to engage stakeholders in its carbon-reduction efforts.
For over two decades, the Western United States has experienced drought conditions. These conditions,
together with agricultural, commercial, and residential demand for water from the Lake’s watershed, have contributed
to a substantial decline in the Lake’s volume and water level. The drought has also contributed to other environmental
challenges in the Salt Lake City region, including diminished air quality in the Lake basin and the risk of wildfires,
especially in the Wasatch Mountains. Climate change may also contribute to storms that have caused flooding in Salt
Lake City. See “INVESTMENT CONSIDERATIONS – Seismic Risk and Other Force Majeure Events.” The
Department has taken a multifaceted approach to conserve water across its facilities and operations. In 2021, the
Department collaborated with the Salt Lake City Department of Public Utilities (“Public Utilities”) to develop a Water
Resource Plan to promote water conservation efforts. By installing native landscaping, drought-tolerant plants, and
advanced metering systems at the Airport, the Department has saved, on average, 73 million gallons of water per year.
Furthermore, over the past two years, the Department has responded to severe drought conditions by implementing
water-use limits and drought restoration programs that have saved an additional 10 million gallons of water annually.
Meanwhile, the restrooms in the New SLC all feature touchless, low-flow faucets and toilets, reducing wasted water
and increasing hygiene. These high-efficiency water fixtures use an average of 40% less water than the Airport’s
previous restroom water fixtures. Additionally, as part of the New SLC, the Department constructed a Quick
Turnaround car wash that uses approximately 80% less potable water than the Airport’s prior rental-car wash facility.
The Department’s water conservation efforts complement those that the State of Utah, other departments of
the City, and the Salt Lake City community have undertaken to mitigate the effects of drought, conserve water, and
protect the Lake. Over the 2022 and 2023 legislative sessions, the Utah State Legislature cumulatively allocated
nearly $1 billion for numerous water conservation efforts, including $200 million in 2023 alone to provide matching
grants for irrigation-efficiency projects. The state also established the position of the Great Salt Lake Commissioner
to administer a water trust to fund conservation and restoration of the Lake and its ecosystem. In 2022, Public Utilities,
which serves as the City’s water utility, announced that it had exceeded its water -conservation goal over the 2022
irrigation season, as consumption of Public Utilities water declined by approximately 15%, or 2.9 billion gallons,
compared to the prior three-year average. Additionally, Public Utilities announced that daily water consumption in
2022 peaked at approximately 140 million gallons, in July 2022, which constituted approximately a one-third decline
from the year 2000’s daily peak of over 210 million gallons consumed by Public Utilities customers.
The New SLC has been designed to meet current requirements for seismic resiliency up to a magnitude 7.4
earthquake. Segments of the Wasatch Fault, which is an active fault located primarily on the western edge of the
Wasatch Mountains, underlie Salt Lake City. A magnitude 5.7 earthquake struck Salt Lake City in March 2020. None
of the elements of the New SLC sustained any significant damage. See “THE NEW SLC – Summary of the New
SLC.” In addition, the New SLC is designed to prepare for natural and climate risks through maintaining a network
of on-site generators to ensure a secure and resilient power supply. These generators have the capacity to power
virtually all of the Airport’s mission-critical facilities and equipment. Another means to enhance sustainability is to
divert waste from landfills and other facilities. Approximately 90% of the construction waste from the New SLC was
diverted from landfills. The Airport’s location requires the ability to operate in all weather conditions. In 2022 the
Department doubled its rate of waste diversion from 7% in 2021 to 14% in 2022. The Airport has its own deicing
fluid reclamation facility that, during the 2021–22 icing season, processed approximately 3.4 million gallons of
water/glycol mixture and recovered approximately 122,000 gallons of pure polypropylene glycol. The Department
has also established a 465-acre wetlands mitigation site outside of the Airport to compensate for natural wetlands that
were impacted by Airport development. The Department has an active wildlife management program led by a wildlife
biologist. In recognition of the Department’s environmental responsibili ty and focus on sustainable design, in 2022,
Utah Business magazine named the Department as a recipient of its Green Business Award.
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Social Factors
The Department is focused on benefitting all of the communities that live and work in the Salt Lake City
area. The Department’s diversity, equity and inclusion program seeks to ensure that the Department’s workforce, and
that of its airline and concessionaire partners, reflects the diversity of the Salt Lake City community. Currently, over
15,200 persons are employed at the Airport by the Department and its tenants, 29% of whom are women. This diverse
workforce includes individuals who are native to 145 countries. Additionally, since 2020, the Department has
increased the share of its employees who are persons of color by approximately 20% and doubled the share of women
holding senior management positions. The Department carefully reviews job descriptions prior to posting to remove
any unintended biases, provides training to managers to ensure equitable recruitment practices and conducts recruiting
efforts targeted at non-majority populations. The Department also participates in the City’s “Diversity & Inclusion”
and “Respect Perspective” training programs to improve diversity and inclusion in the workplace. The Department
reaches out to its community in a variety of ways, including by providing education to prospective participants on
how to take part in the Department’s Disadvantaged Business Enterprise (“DBE”) and Airport Concessionaire DBE
programs; through participation in regular visits to elementary schools to teach students about airport operations,
wildlife mitigation and jobs at the Airport; by investing in the arts, reflecting the culture and landscape of Utah; by
holding airport honor flights for veterans; and through other initiatives, such as hosting a food bank for federal
transportation security officers when federal government employees were furloughed. The Department’s Airport
Safety, Engagement, and Training Programs manager serves as the Department ’s ambassador to the Government
Alliance on Race and Equity program, which the City recently joined.
The Department is a leader in health and safety. At the start of the COVID-19 pandemic, the Department
instituted a series of actions designed to protect its workers, including the trades people working on the New SLC.
The result was a dramatic reduction in illness and injury well below industry averages, as well as opening the first
phase of the New SLC on time. The Department has instituted a safety management system (“SMS”) program to
reduce risk and support a safe working environment in the air operations area and the Department has developed a
ramp safety enforcement program to reinforce airfield and ramp safety rules and provide for retraining and sanctions
for badge holders who fail to comply. The Department hosts five blood drives annually as well as flu vaccination
clinics, skin cancer screenings, biometric screening clinics, and two annual mammography events.
Similarly, the Department works to ensure that it maintains good relations with all of its workers through a
group of wellness programs, which the Department’s health and wellness committee meets quarterly to plan and
oversee. The Department also provides education and training opportunities to allow its employees to grow and
advance; in 2022, the Department provided an average 22 hours of training to each employee.
Governance Factors
The Department’s mission is to develop and manage a system of airports that provides quality transportation
facilities and services to optimize convenience, safety and efficiency for aviation customers. The Department’s vision
is to achieve excellence and unprecedented customer service in making Salt Lake City among the most convenient
and efficient air transportation centers in the world.
The Mayor appoints and the City Council approves the appointment of the Executive Director of the
Department. See “THE AIRPORT – The City.” An Advisory Board reports to the Mayor and makes
recommendations regarding the operation and management of the Airpor t System. The Department is an enterprise
fund and a self-sustaining organization requiring no funding from property taxes, general funds of local governments
or special district taxes. The Department’s budgets are prepared by Department staff and submitted to and approved
by the Mayor and City Council.
The Department is committed to demonstrating good governance by providing transparency to its
stakeholders and incorporating a focus on sustainable practices into its decision-making. The Department’s second
Environmental, Social, and Governance Report (the “Second ESG Report”) in underway and scheduled for completion
in 2023; upon completion, the Second ESG Report will be published publicly online. The Second ESG Report will
provide substantial detail and extensive discussion regarding the Department’s environmental, social, and governance
efforts. The Second ESG Report follows the Department’s first Environmental, Social, and Governance Report, which
the Department published in 2021.
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The Department and the Airport have repeatedly been recognized for leadership and operational quality. In
2021, ACI named the Airport one of the two best airports in North America for Airport Service Quality (“ASQ”)
among airports with 25 to 40 million annual passengers. The Airport also received a passenger ranking of 4.02 out
of 5 in ACI’s ASQ survey. In 2022, ACI-NA named the Airport a winner of an Airport Concessions Award. For
2022, Cirium awarded the Airport its On-Time Performance Award, recognizing the Airport as the top global airport
in North America for on-time performance.
The Department is committed to continuing to improve its sustainability and reducing impacts of Airport
operations, to being a strong and beneficial partner to the Salt Lake City region’s community and to transparent and
responsive governance.
REPORT OF THE AIRPORT CONSULTANT
General
The Department has retained the firm of Landrum & Brown, Inc., as recognized experts in their field, to
prepare a report on traffic, revenues, expenses, the New SLC and financial analyses in connection with the issuance
of the Series 2023 Bonds. The Airport Consultant has prepared a Report of the Airport Consultant dated July__ , 2023
(the “Report of the Airport Consultant” or the “Report”) in connection with the issuance of the Series 2023 Bonds.
The Airport Consultant has consented to the Report of the Airport Consultant being included in this Official Statement
as APPENDIX B. This Report should be read in its entirety for an explanation of the assumptions and methodology
used therein.
The Report of the Airport Consultant is divided into five sections plus a cover letter summarizing the Airport
Consultant’s conclusions. Section 1 provides an overview of the role of the Airport and the economic base for air
traffic at the Airport. Section 2 reviews air service at the Airport and provides air traffic projections of air service
activity at the Airport for the period from FY 2023 through FY 2030, a period of three (3) full fiscal years following
the end of the projected period a portion of interest on the Series 2023 Bonds will be capitalized (the “projection
period”). Section 3 reviews the existing Airport facilities and the capital program, generally consisting of the New
SLC, as well as the on-going capital projects through FY 2030. Section 4 of the Report reviews the Department’s
financial framework and provides a financial analysis, concluding with projections of net revenues and debt service
coverage through FY 2030, calculated in accordance with the Master Indenture. In preparation of the projections in
its Report, the Airport Consultant has made certain assumptions with respect to conditions that may occur and the
course of action management expects to take during the projection period. The Airport Consultant has relied upon
Department staff for representations about its plans and expectations and for disclosure of significant information that
might affect the realization of projected results. Department staff have reviewed these assumptions and concur that
they provide a reasonable basis for the purpose of the projections. While the Department and the Airport Consultant
believe these assumptions to be reasonable for the purpose of the projections, they are dependent upon future events,
and actual conditions may differ from those assumed in the analysis. To the extent actual future factors differ from
those assumed by the Airport Consultant or provided to the Airport Consultant by others, the actual results could vary
materially from these projections. The Airport Consultant has no responsibility to update its Report for events and
circumstances occurring after the date of its Report. The projections are based on assumptions that may not be realized
and actual results may differ materially from the projections. See “INVESTMENT CONSIDERATIONS – Financial
Assumptions” herein.
Projection of Debt Service Coverage and Cost Per Enplanement
The following table reflects the projection of Net Revenues and the calculation of debt service coverage on
the Bonds, including the Series 2023 Bonds and the estimated $800 million of New SLC project costs expected to be
funded with proceeds of additional Bonds expected to be issued in the future. The Airport Consultant’s projection is
based on actual unaudited net revenues for the first three quarters of FY 2023, and projected Net Revenues from FY
2024 through FY 2030, as set forth in Section 4 of the Report of the Airport Consultant. Such projection reflects the
impact on revenues and expenses associated with the Series 2023 Bonds, the Existing Bonds, as well as additional
Bonds expected to be issued during the projection period and the operating costs of the elements of the New SLC as
they are placed into service. The projection does not reflect the impact on Department finances of projects other than
the New SLC and the other capital projects discussed in the Report. Any additional future c apital projects may be
financed by future issuance of additional Bonds. The Report of the Airport Consultant also includes a projection
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based upon a slower recovery scenario. The full Report of the Airport Consultant should be read in its entirety for an
explanation of the assumptions and methodology used in both the projections that is being relied upon for the
additional debt test as well as the slower recovery scenario .
The projected cost per enplaned passenger is estimated to be $8.16 in FY 2023, and then stabilize at between
$_____ and $_____ though the projection period as passenger traffic is projected to recover, capitalized interest is
expended, all of the facilities of the New SLC are expected to be placed in service and all debt service on the Bonds
is included in the rate base.
PROJECTION OF DEBT SERVICE COVERAGE*
(Fiscal Year ending June 30)
($ in thousands)
Estimate
2023
Budget
2024
2025
2026
2027
2028
2029
2030
Revenues $265,962 $296,862 $378,577 $395,855 $403,036 $411,785
Operating Expenses and
Capital Outlays 172,367 177,262 176,894 183,970 191,328 198,982
Less: Federal COVID
Relief Funds applied to
O&M (36,935) (36,935) 0 0 0 0
Net Revenues $130,530 $153,325 $201,683 $211,886 $211,708 $212,804
Plus: Rolling Coverage
Account 19,736 25,211 39,766 42,640 44,262 44,755
Net Revenues & Rolling
Coverage Account $150,266 $178,537 $241,449 $254,526 $255,970 $257,559
Total Debt Service (Net
of Capitalized Interest) 125,118 149,040 208,542 221,061 228,501 231,130
PFCs applied to Debt
Service (46,175) (48,196) (49,479) (50,500) (51,452) (52,112)
Debt Service (net of
PFCs) $78,943 $100,845 $159,063 $170,561 $177,049 $179,019
Debt Service Coverage 1.90 1.77 1.52 1.49 1.45 1.44
Source: Airport Consultant
*Amounts may not add due to rounding
The Report of the Airport Consultant and the projection of Net Revenues and debt service coverage included
therein incorporates assumptions of the debt service on the Series 2023 Bonds and additional Bonds expected to be
issued during the projection period based upon information provided by PFM Financial Advisors LLC (“PFM”),
municipal advisor to the Department, in July, 2023. PFM’s calculations are based upon the assumptions set forth in
the Report of the Airport Consultant. Both PFM and the Airport Consultant have used what they believe are
conservative assumptions to estimate the projected annual debt service on the additional Bonds to be issued to fund
the New SLC; however, there can be no assurance that the assumed rates will be achieved or that interest rates will
not exceed those used in the assumptions. The Report assumes a bond yield of ____% for the Series 2023 Bonds and
_____% for the additional Bonds to be issued. Several other projections included in the Report of the Airport
Consultant, such as projected airline payments per enplaned passenger, rely on the estimated debt service amounts
and investors should take into consideration these assumptions when considerin g the Report of the Airport Consultant.
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The Report of the Airport Consultant should be read in its entirety for an understanding of the Report and its
underlying assumptions. As noted in the Report of the Airport Consultant, any projection is subject to uncertainties.
Inevitably, some of the assumptions used to develop the Report will not be realized and unanticipated events and
circumstances may occur. The actual financial results achieved will vary from those in the Report of the Airport
Consultant and the variations may be material. The Report of the Airport Consultant is not expected to be updated
with final pricing information for the Series 2023 Bonds. See “INVESTMENT CONSIDERATIONS – FINANCIAL
ASSUMPTIONS” and “APPENDIX B - REPORT OF THE AIRPORT CONSULTANT.”
INVESTMENT CONSIDERATIONS
This section contains a general overview of certain risk factors which should be considered, in addition to
the other matters set forth in this Official Statement, in evaluating an investment in the Series 2023 Bonds. The order
in which this information is presented does not necessarily reflect the relative importance of various risks. The Series
2023 Bonds may not be suitable for all investors. Potential investors in the Series 2023 Bonds are advised to consider
the following factors, among others, and to review this entire Official Statement to obtain information essential to
making of an informed investment decision. The following summary does not purport to be a comprehensive or
exhaustive discussion of risks or other considerations which may be rel evant to investing in the Series 2023 Bonds.
There can be no assurance that other considerations not discussed herein will not be or become material to investors.
The risks below present a summary of additional risks to the Airport’s Revenues that pros pective purchasers of the
Series 2023 Bonds should give careful consideration to prior to purchasing the Series 2023 Bonds.
Delta’s Presence at the Airport
Delta is the dominant air carrier operating at the Airport and maintains a large connecting hub at the Airport.
Approximately 73.4% of the passengers enplaned at the Airport in FY 2022 and 24.9%, of the Department’s operating
revenue (after airline revenue sharing) was received from rentals and services provided to Delta and the Delta
Connection carriers for FY 2022.
As a result of the Airport’s geographic location, facilities and capabilities , Delta’s execution of an extension
of the AUA through FY 2044, Delta’s investment in the Airport, including the New SLC, and the expected
construction of a new flight operations simulator facility, the Department expects that the Airport will remain a system
hub for Delta; however, no assurance can be given to that effect or with regard to Delta’s future level of activity at the
Airport, regardless of Delta’s financial condition. If, for whatever reason, Delta discontinues or reduces its hubbing
operations at the Airport, its current level of activity at the Airport may not be replaced by other carriers. It is possible
that if Delta or another airline were to cease service or significantly reduce service at the Airport, Revenues, PFC
collections and costs for other airlines serving the Airport could be adversely affecte d. Such a change in Delta’s or
another airline’s activity at the Airport could result in differences to th e projections presented in the Report of the
Airport Consultant. See “THE AIRPORT - Aviation Activity at the Airport -Airlines Providing Service at the Airport”
above.
Project Costs and Schedule
The estimated costs of, and the projected schedule for, the New SLC and other capital projects depend on
various sources of funding, and are subject to a number of uncertainties. The ability of th e Department to complete
these projects within the current budgets and on the current schedules may be adversely affected by various factors
including: (1) estimating errors, (2) design and engineering errors, (3) cost increases because of demand for and
scarcity of labor and materials, (4) contractors’ difficulty in predicting costs over a lengthy construction period, (5)
the need to estimate costs of unbid project elements, (6) changes to the scope of the projects, (7) delays in contract
awards, (8) material and/or labor shortages, (9) delays because of airline operational needs, (10) unforeseen site
conditions, (11) adverse weather conditions, (12) contractor defaults, (13) labor disputes, (14) unanticipated levels of
inflation, (15) litigation and (16) environmental issues. See “THE NEW SLC - Summary of the New SLC”. No
assurance can be given that the costs of the projects will not exceed the current budget for these projects or that the
completion will not be delayed beyond the currently projected completion dates. Any schedule delays or cost increases
could result in the need to issue additional Bonds or Subordinate Obligations, which would require additional approval
for certain increased costs. The issuance of additional Bonds or Subordinate Obligations may result in increased costs
per enplaned passenger to the airlines. No assurance can be given that the City would receive the required Signatory
Airline approvals, or that, absent such approvals, an alternative source of funding would be available. At present, the
Department is unable to estimate the costs associated with each of the risks identified above and the total impact of
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these risks if such events were to occur. In addition, the Department may ultimately decide not to proceed with certain
capital projects or may proceed with them on a different schedule, resulting in different results than those included in
the projections shown in “APPENDIX B - REPORT OF THE AIRPORT CONSULTANT.”
Financial Assumptions
The City’s plan of financing for the New SLC is based on a number of financial assumptions, including
assumptions relating to: (1) the estimated costs and timing of construction of the New SLC and the ability of the
Department to complete construction of the New SLC within budget; (2) the projected levels of aviation activity at
the Airport; and (3) timing of, and assumptions with respect to the issuance of and interest rates borne by, additional
Bonds, including access to the capital markets. Although the Department believes each of these assumptions is based
on reasonable judgments, one or more of these assumptions may prove incorrect. The impact of a significant variation
of any of the assumptions described above could have a material adverse effect on the plan of financing for the New
SLC.
The City’s plan of financing is based upon certain assump tions with respect to growth in aviation at the
Airport. The factors affecting such levels of activity are largely beyond the Department’s control. Origination and
destination traffic, which accounts for approximately __% of passenger activity at the Airport, will be affected to a
significant degree by the speed of the recovery from the COVID-19 pandemic, the economic vitality of the City and
the region. The level of hubbing activity by Delta or any other airline that may choose to hub in the City’s air trade
area will reflect corporate decisions made by such airlines. These decisions will be based, in part, upon each airline’s
financial capacity and strategic markets, availability of aircraft, cost of aviation fuel and a number of other factors
beyond the control of the City.
Seismic Risk and Other Force Majeure Events
The New SLC is designed, in part, to upgrade the seismic stability of the facilities at the Airport.
Nevertheless, the Airport could potentially sustain extensive damage to its facilities in a major earthquake from ground
motion and possible liquefaction of underlying soils. Damage could include pavement displacement, which could
necessitate the closing of one or more runways for extended periods of time , distortion of pavement grades, breaks in
utilities, loss of water supply, damage to drainage and sewage lines, and displacement or collapse of buildings. A
major earthquake in the Salt Lake City region may cause significant temporary and possibly long -term harm to the
economy of the Salt Lake City area, which in turn could have a negative effect on passenger traffic a nd Revenues, and
such effect could be material. Segments of the Wasatch Fault, which is an active fault located primarily on the western
edge of the Wasatch Mountains, underlie Salt Lake City. An earthquake on the Salt Lake City segment of the Wasatch
Fault could severely damage the Airport facilities and adversely affect the Department’s ability to generate Revenues.
As noted above, in March of 2020, the Salt Lake City area suffered a magnitude 5.7 earthquake. Although many
buildings in the region were damaged by the earthquake, none of the new facilities of the New SLC suffered damage
from the earthquake requiring repair.
The Salt Lake City region is susceptible to climate and environmental risks related to drought conditions and
water supplies, risks that may materially and adversely affect the Airport’s operations and the Department’s ability to
generate Revenues. For more than two decades, much of the Western United States, including the Salt Lake City
region, has experienced drought. For most of 2021, the U.S. Drought Monitor classified virtually all of Salt Lake City
as being in an “exceptional drought.” Those drought conditions have since significantly abated. Over the 2022–23
snowfall season, Utah broke its snowpack record, helping to alleviate the region’s and the state’s drought. However,
the Utah Department of Natural Resources (“DNR”) projects that multiple years of above-average perception will be
necessary to reverse the impacts of drought in Utah. One consequence of Utah’s drought has been further reduction
in the size of the Great Salt Lake, which has lost an estimated 73 % of its water volume and 60% of its surface area
since 1850. This reduction in the Lake’s size has the potential to reduce snowfall in and around the City due to a
reduction in lake effect, an outcome that could further strain the City’s water resources, given that Utah receives most
of its drinking water from snowpack. The Lake’s decreased surface area also increases the risk of dust dispersal over
the Salt Lake City region; winds have carried dust potentially adverse to human health from the exposed lakebed into
the region’s atmosphere.
The Salt Lake City region is susceptible to other climate and environmental risks that could materially and
adversely impact the Department’s operations and Revenue generation . The Great Salt Lake basin faces significant
smog. Utah’s annual energy-related carbon dioxide emissions increased significantly in the half-century between
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1970 and 2020, during which period the state’s population grew by more than 200%. However, between 2000 and
2020, those annual emissions levels declined by greater than 12%, from 65.4 million metric tons to 57.4 million metric
tons, even as Utah’s population grew by more than 40 %. The region is also susceptible to flooding, including due to
severe storms. On the Airport, the northern end of Runway 16R, the Airport’s westernmost runway, lies within a
floodplain. Additionally, the DNR classifies much of the Wasatch Range, part of which lies immediately east of the
City, as being at very high risk of wildfire, as it does certain areas around the Airport.
Other events of force majeure, such as extreme weather events and other natural occurrences such as fires
and explosions, spills of hazardous substances, strikes and lockouts, sabotage, terrorist attacks or wars, blockades or
riots could also adversely affect the Department’s ability to generate Revenues. There is no assurance that such events
will not occur while the Series 2023 Bonds are Outstanding. Although the Department has attempted to mitigate the
risk of loss from many of these occurrences by purchasing commercial property and casualty insurance, no assurance
can be given that such insurance will be available or in sufficient amounts at a reasonable cost or available at all or
that insurers will pay claims in a timely manner, or at all.
Public Health Concerns
As demonstrated by the COVID-19 pandemic, wide-spread public health events can have a sudden and
material and adverse effect on air travel demand. Although both passenger traffic and commercial airline operations
at the Airport have nearly recovered to pre-2019 levels, future outbreaks of disease or pandemics could lead to a
decrease in passenger traffic which in turn could lead to a decrease in passenger traffic at the Airport and a
corresponding decline in Airport Revenues. There can be no assurance that such an outbreak will not occur while the
Series 2023 Bonds are outstanding or that the recovery from any such outbreak will be similar to, take longer than or
be shorter than the recovery that the Airport has experienced since March of 2020. Airport management cannot
predict, among other things: (i) the duration or extent of another outbreak of COVID-19 or another pandemic; (ii) the
scope or duration of restrictions or warnings related to air travel, gatherings or any other activities, and the duration
or extent to which airlines will reduce services at the Airport, or whether airlines will cease operations at the Airport
or shut down in response to such restrictions or warnings; (iii) what effect any other outbreak or pandemic-related
restrictions or warnings may have on air travel and the resulting impact on Airport revenues and expenses; (iv) whether
and to what extent another outbreak or pandemic may disrupt the local, State, national or global economies,
manufacturing or supply chain, or whether any such disruption may adversely impact Airport-related construction,
the cost, sources of funds, schedule or implementation of the Airport’s capital program, or other Airport operations;
(v) the extent to which another outbreak or pandemic, or the resultant disruption to any local, State, national or global
economies, may result in changes in demand for air travel, or may have an impact on the airlines or concessionaires
serving the Airport, or the airline and travel industry, generally, including resulting in the bankruptcy or cessation of
operations of airlines or Airport tenants; (vi) whether or to what extent the Department may provide deferrals,
forbearances, adjustments or other changes to the Department’s arrangements with its tenants and Airport
concessionaires; or (vii) the extent to which any of the foregoing will have a material adverse effect on the finances
and operations of the Airport.
General Economic Considerations
Historically, the financial performance of the air transportation industry has correlated with the state of the
national and global economy. As a result of the COVID-19 pandemic, the U.S. and world-wide air travel industries
sustained unprecedented losses, from which they are beginning to recover. However, the Russian invasion of Ukraine
and resulting economic and especially energy embargoes, as well as increased inflation and supply chain disruptions,
have further, adversely affected the world’s and the national economies. Following significant and dramatic changes
that occurred in the financial markets in September 2008, the U.S. economy experienced a recession followed by weak
growth. The near-term economic outlook for the national and Utah economies to recover from the effects of the
invasion, energy price instability, inflation and supply chain disruptions, as well as the effect of the COVID-19
pandemic, the speed and extent of which will be dependent on a number of factors, many of which are national or
international in scope. There can be no assurances that the prolonged weak economic conditions and inflation, the
recurrence of the COVID-19 pandemic or another national or global pandemic, or other national and international
fiscal concerns will not have an adverse effect on the air transportation industry and/or the Department’s Net
Revenues.
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Financial and Operational Condition of the Airline Industry
The number of passengers using the Airport will depend partly on the profitability of the U.S. airl ine industry
and the associated ability of the industry and individual airlines, particularly Delta, to make the necessary investments
to continue providing service. The airline industry historically has been highly cyclical and is characterized by intense
competition, high operating and capital costs, and varying demand. Passenger and cargo volumes are highly sensitive
to general and localized economic trends, and passenger traffic varies substantially with seasonal travel patterns. After
an exceptional period of volatility in the 2000s, U.S. carriers experienced record profitability prior to the COVID -19
pandemic. In the near-term, the airlines serving the Airport appear to have substantially recovered from the effects of
the COVID-19 pandemic. However, operational issues resulting from the pandemic, including loss of air crews and
a shortage of pilots have hampered this recovery and may constrain growth in air service for some period of time. The
profitability of the airline industry may continue to fluctuate dramatically from quarter to quarter and from year to
year, even in the absence of catastrophic events such as the COVID -19 pandemic, the terrorist attacks of September
11, 2001 and the economic recession of 2008 and 2009. Further, in the summer of 2022 and continuing into the fall
and winter, airlines serving the Airport have experienced significant and substantial service disruptions cau sed by
several factors, including technological failures of airline and FAA computer systems, severe weather , and inability
to staff operations due to crew shortages.
Further, because of the discretionary nature of business and personal travel spending, airline passenger traffic
and revenues are heavily influenced by a variety of factors, including: (i) the strength of the U.S. economy and other
regional and world economies, (ii) the cost and availability of labor, fuel, aircraft and insurance, (iii) intern ational
trade, (iv) currency values, (v) competitive or partnership considerations, including the effects of airline ticket pricing,
(vi) traffic and airport capacity constraints, (vii) governmental regulation, including security regulations and taxes
imposed on airlines and passengers, and maintenance and environmental requirements, (viii) passenger demand for
air travel, including the availability of business travel substitutes such as teleconferencing, videoconferencing and
web-casting, (ix) strikes and other union activities, (x) operational disruptions caused by technological failures, severe
weather events and crew shortages, and (xi) disruptions caused by airline accidents, criminal incidents, acts of war or
terrorism, outbreaks of disease, epidemic or pandemic, and weather and natural disasters.
It is reasonable to assume that any significant financial or operational difficu lties incurred by Delta, the
dominant airline servicing the Airport, could have a material adverse effect on the Airport, althoug h financial or
operational difficulties by any of the other Signatory Airlines, whether directly or indirectly, also may have an adverse
impact on Revenues or Airport operations, the effect of which may be material. See “ – Delta’s Presence at the
Airport” above. At this time, it is not possible to predict the effect that any financial or operational difficulties incurred
by Delta or any other airline serving the Airport could have on the Airport.
Industry Workforce Shortages
Workforce and labor shortages (including pilots, flight attendants, mechanics and other personnel) are an
aviation industry-wide issue, and have resulted in difficulties in certain airlines restoring and maintaining routes and
generally providing service. For example, a shortage in pilots has especially affected smaller regional airlines. There
are several causes for such shortage. Congress changed duty time rules in 2010 to mitigate pilot fatigue, which
required airlines to increase pilot staff. Beginning in 2013, first officers flying for commercial airlines were required
to have at least 1,500 hours of flight time, instead of the 250 hours previously required. At the onset of the COVID-
19 pandemic, airlines were faced with a surplus of personnel resulting from the sudden and dramatic decline in traffic.
As a result, airlines offered their employees buyouts and early retirement packages and, according to certain media
reports, approximately 5,000 (or 10%) experienced pilots took early retirement. FAA airman certification statistics
show that 28% of the 170,086 people with an airline transport pilot (“ATP”) certificate are 60 years of age or older
and are due to retire over the next five years. In contrast, only 4.4% of people with an ATP certification were under
the age of 30. Other factors include fewer new pilots coming out of the military. In particular, regional airlines have
been hit the hardest by the pilot shortage. Unable to provide the wages of the larger airlines, the regional airlines have
been losing their pilots to the mainline carriers who are attempting to fill their needs. As a result, the regional airlines
have had to scale back or in some cases eliminate service, to smaller markets. If the pilot shortage continues to become
more widespread in the industry, the passenger airlines may not be able to meet future passenger demand, and would
be required to reduce their seat capacity, resulting in material impacts to future traffic in the U.S. and internationally.
In addition to the pilot shortage, over the next decade there could be a shortage of qualified mechanics to
maintain the airlines’ fleet of planes. This potential shortage is a result of an aging pool of mechanics, a large number
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of which are expected to retire in the next decade, and a lack of younger people joining the ranks of the mechanics. A
shortage of mechanics could raise the cost of maintenance, require airlines to maintain more spare planes and/or result
in increased flight cancellations and delays.
General labor staffing shortages have also affected, and may continue to affect, the airline industry. Several
major airlines have announced reduced schedules and have cancelled flights as a result of reported labor shortages
and staffing challenges. Labor shortages have been attributed to growing travel demand after thousands of workers in
the airline industry opted for buyouts, early retirement packages or otherwise terminated thei r employment during the
COVID-19 pandemic.
Airline Consolidation
In 2005, ten major airlines were flying inside the United States (AirTran, Alaska Airlines, American Airlines,
America West, Continental, Delta, Northwest, Southwest, United and US Airways) and accounted for 87.0% of all
available seats. Faced with declining profitability because of increased costs of aviation fuel, lower fares brought on
by the proliferation of low cost carriers (as described below), reduced growth potential in the domestic markets and
declining passenger activity based on security concerns, the airlines pursued consolidation. As a result of these
consolidations, today there are five major network airlines flying inside the United States – Alaska, American, Delta,
Southwest and United -- that account for approximately 80% of domestic capacity (available seats). Additionally, in
2009, Republic Airways Holdings purchased Frontier Airlines and Midwest Airlines operating the combined carrier
as Frontier Airlines. Republic Airways sold Frontier Airlines in 2013. In December 2016, Alaska Air Group acquired
Virgin America, and a single operating certificate was issued in 2018. Most recently, JetBlue Airways has proposed
to combine with Spirit Airlines and create a single low cost carrier with the scale to compete with the five major
network carriers. The proposed combination is undergoing anti-trust review by the federal government and there is
no assurance that it will be approved. Such consolidation, combined with a focus on driving profitability via capacity
discipline and unbundling of services and resulting increased fee income, had increased airline profitability prior to
the onset of the COVID-19 pandemic. In addition, American and JetBlue recently entered into an agreement pursuant
to which each can code share with the other and each can access the other airl ine’s passenger loyalty program.
Further airline consolidation remains possible. Depending on which airlines serving the Airport merge or
join alliances, if any, the result may be fewer flights or decreases in gate utilization by one or more airlines. Su ch
decreases could result in reduced Airport revenues, reduced PFC collections and increased costs for the airlines serving
the Airport.
Effect of Bankruptcy of Air Carriers and Other Tenants
Since 2001, several airlines with operations at the Airport have filed for and have subsequently emerged from
bankruptcy protection, including United, Continental, Delta, Frontier, Northwest, US Airways and, most recently,
American Airlines in 2011. In addition, during the COVID-19 pandemic, both Hertz Rent a Car and Advantage filed
for bankruptcy protection. The Hertz Group (including Dollar and Thrifty) emerged from bankruptcy and, at most
airports at which it operated, including the Airport, assumed it s operating agreements and leases and emerged from
bankruptcy protection in 2021. In contrast, Advantage filed for liquidation and its assets, including leases at many
airport locations, were sold off. Additional bankruptcies, liquidations or major restructurings of other airlines or
important airport tenants could occur. The Department’s stream of payments from a debtor could be interrupted to
the extent of unpaid fees for pre-petition goods and services, including accrued rent and landing fees. Under the U.S.
Bankruptcy Code, a debtor that is a lessee under an unexpired lease with the Department of non -residential real
property, such as a lease of Terminal space or a hangar, is required within certain statutory time periods to assume or
reject such lease. Rejection of a lease or other agreement or executory contract would give rise to an unsecured claim
of the Department for damages, the amount of which in the case of a lease or other agreement is limited by the U.S.
Bankruptcy Code. The amount ultimately received in the event of a rejection of a lease or other agreement could be
considerably less than the maximum amounts allowed under the U.S. Bankruptcy Code. Additionally, during the
pendency of a bankruptcy proceeding, a debtor airline may not, abs ent a court order, make any payments to the
Department on account of goods and services provided prior to the bankruptcy. The Department actively monitors
past due balances to minimize any potential losses due to such proceedings, aggressively pursues ove rdue amounts
and bankruptcy claims, and includes an allowance for uncollectible debts in its landing fee and terminal rental rates.
Whether or not an airline agreement is assumed or rejected by a debtor airline in a bankruptcy proceeding, it is not
possible to predict the subsequent level of utilization of the gates leased under such agreement.
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It is not possible to predict the impact on the Department of any future bankruptcies, liquidations or major
restructurings of other airlines or tenants.
Cost of Aviation Fuel
Airline earnings are significantly affected by changes in the price of aviation fuel. Fuel prices continue to be
susceptible to, among other factors, political unrest in various parts of the world (particularly in the oil -producing
nations in the Middle East, Russia and North Africa); Organization of Petroleum Exporting Countries’ policy; the
rapid growth of economies such as China and India and resulting demand for oil -based fuels; the levels of inventory
carried by industries; the amounts of reserves maintained by governments; the amount and availability of new sources
of energy (e.g., U.S. fracking operations); disruptions to production and refining facilities; and weather. The Russian
invasion of Ukraine led to a substantial increase in o il prices and a concomitant increase in the cost of jet fuel.
There has been no prolonged shortage of aviation fuel since the fuel crisis of 1974, but there have been
significant price increases for fuel. From 2000 to 2008, the price of aviation fuel more than tripled. Oil prices reached
an all-time record high of approximately $145 per barrel in July 2008, and while oil prices have declined from this
elevated level, they have fluctuated significantly since then. During the second half of CY 2014, an imbalance between
worldwide supply and demand resulted in a significant drop in the price of oil and aviation fuel. As of DATE,
according to Bloomberg, the price of Brent crude oil futures was $____ per barrel. According to Form 41 (USDOT),
the cost of aviation fuel purchased by commercial airlines in DATE averaged $____ per gallon. Significant
fluctuations and prolonged increases in the cost of aviation fuel have adversely affected air transportation industry
profitability, causing airlines to reduce capacity, fleet and personnel; to invest in new, more fuel efficient aircraft and
equipment; and to increase airfares and institute fuel, ch ecked baggage, and other extra surcharges, all of which may
reduce demand for air travel.
Many airlines engage in or have engaged in fuel hedging – purchasing fuel in advance at a fixed price through
derivative contracts – to help manage the risk of future increases in fuel costs. However, there can be no assurance
that any fuel hedging contract can provide any particular level of protection from volatile fuel prices. Delta has even
gone as far as to purchase its own refinery in order to better manage its fuel costs.
Structural Changes in the Travel Market and Travel Substitutes
Many factors have combined to alter consumer travel patterns. The threat of terrorism against the United
States remains high. As a result, the federal government has mandated var ious security measures that have resulted
in security taxes and fees and longer passenger processing and wait times at airports. Both add to the costs of air
travel and make air travel less attractive to consumers relative to ground transportation, especi ally to short-haul
destinations. Additionally, consumers have become more price sensitive. Efforts of airlines to stimulate traffic by
heavily discounting fares have changed consumer expectations regarding airfares. Consumers have come to expect
extraordinarily low fares. In addition, the availability of fully transparent price information on the internet now allows
quick and easy comparison shopping, which has changed consumer purchasing habits. Consumers have shifted from
purchasing paper tickets from travel agencies or airline ticketing offices to purchasing electronic tickets over the
internet. This has made pricing and marketing even more competitive in the U.S. airline industry. Finally, smaller
corporate travel budgets, combined with the higher time costs of travel and the impacts of the COVID-19 pandemic,
have made business customers more amenable to communications substitutes such as teleconferencing and
videoconferencing.
Teleconference, video-conference and web-based meetings continue to improve in quality and price and are
often considered a satisfactory alternative to face-to-face business meetings. Events such as the COVID-19 pandemic
have accelerated this trend and increased the number of individuals who are able to work f rom home. While the
effects cannot be quantified, it is possible that business travel to and from the Airport may be susceptible to such travel
substitutes.
Technological Innovations in Ground Transportation
One significant source of non-airline Revenues is generated from ground transportation activity, including
use of on-Airport parking facilities; trip fees paid by taxis, limousines and TNCs; car sharing companies such as Turo,
and rental car transactions by Airport passengers. The relative market share of these sources of revenue is shifting.
As one example, the popularity of TNCs has increased because of the increasing number of cities where TNCs operate,
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the lack of other technological innovations in ground transportation, convenience of requesting a ride through a mobile
application, the ability to pay for this service without providing cash or other payment to the hired driver, and
competitive pricing. In FY 2022, TNCs recorded over ___ million Airport pick-ups and drop-offs resulting in
approximately $___ million in trip fee Revenue for the Department, compared to nearly____ and 1.4 million pick-
ups and drop-offs and approximately $___ million and $3.6 million in trip fee Revenue in FY 2021 and 2019,
respectively. Although ground transportation revenue in total and excluding TNC trip fees has continued to perform
well, there can be no assurance that passengers will not choose to utilize TNCs instead of parking or using rental cars
in the future, which could result in a reduction in ground transportation revenues.
New technologies (such as autonomous vehicles, connected vehicles, and electronic vertical take-off and
landing aircraft (eVTOL)) and innovative business strategies in established markets such as commercial ground
transportation and car rental may continue to occur and may result in further changes in Airport passengers’ choice of
ground and air transportation modes. Examples of disruptive technologies in the ground transportation context include
TNCs and peer-to-peer car sharing companies such as Turo which have encroached upon traditional taxi, limo and car
rental concessions. The Department entered into an agreement with Turo effective September 2021 and notes that
Turo generated over $8 million in reported gross revenue at the Airport in its first year of reported operations. While
the Department makes every effort to anticipate demand shifts, there may be times when the Department’s
expectations differ from actual outcomes. In such event, revenue from one or more ground transportation modes may
be lower than expected. The Department cannot predict with certainty what impact these innovations in ground
transportation will have over time on revenues from parking, other ground transportation services or rental cars. The
Department also cannot predict with certainty whether or to what extent it will collect non-airline Revenues in
connection with such new technologies or innovative business strategies.
Aviation Security and Safety Concerns
Security and safety concerns also affect air travel demand from time to time. Concerns about the safety of
airline travel and the effectiveness of security precautions, particularly in the context of potential international
hostilities and terrorist attacks, may influence passenger travel behavior and air travel demand. Travel behavior may
be affected by anxieties about the safety of flying and by the inconveniences and delays associated with more stringent
health or security screening procedures, both of which may give rise to the avoidance of air travel generally and the
switching from air to surface travel modes.
Information Concerning the Airlines
Many of the principal domestic airlines serving the Airport, or their respective parent corpor ations, are subject
to the information reporting requirements of the Securities Exchange Act of 1934, as amended and , in accordance
therewith, file reports and other information with the SEC. Likewise, foreign airlines serving the Airport that have
American Depository Receipts (“ADRs”) registered on a U.S. national exchange are subject to the same reporting
requirements. Certain information, including financial information, concerning such domestic airlines, or their
respective parent corporations, and such foreign airlines is disclosed in certain reports and statements filed with the
SEC. Such reports and statements can be inspected and copied at the public reference facilities maintained by the
SEC and on its website.
Foreign airlines serving the Airport, or foreign corporations operating airlines serving the Airport , unless
such airlines have ADRs registered on a national exch ange, are not required to file information with the SEC. Such
foreign airlines, or foreign corporations operating airlines, serv ing the Airport file limited information only with the
USDOT.
The Department does not undertake any responsibility for or make any representation as to the accuracy or
completeness of: (i) any reports and statements filed with the SEC or USDOT or (ii) any material contained on the
SEC’s website as described in the two preceding paragraphs, including, but not limited to, updated information on the
SEC’s website or links to other Internet sites accessed through the SEC’s website.
FAA Reauthorization and Federal Funding
On October 5, 2018, the President signed into law a five year reauthorization bill for the FAA – the FAA
Reauthorization Act of 2018 which expires on September 30, 2023. Debates on a new reauthorization act for the FAA
have begun in both the Senate and House of the United States Congress, but there can be no assurance that the FAA’s
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authority, including its ability to make Airport Improvement Program and other grants, will be extended before the
current reauthorization bill lapses. The 2018 FAA reauthorization retains the federal cap on PFCs at $4.50 and
authorizes $3.35 billion per year for AIP through federa l fiscal year 2023, which is the same funding level as was in
place for the preceding five years. The AIP provides federal capital grants to support airport infrastructure through
entitlement grants, which are determined by formulas based on passenger, cargo and general aviation activity levels,
and discretionary grants, allocated on the basis of specific set-asides and the national priority ranking system. The
Department is unable to predict the level of AIP funding at this time, since authorization is subject to Congressional
appropriation. If there is a reduction in the amount of AIP grants awarded to the Department for the Airport, it could:
(1) increase by a corresponding amount the capital expenditures that the Department would n eed to fund from other
sources, including operating revenues, and Bond proceeds, (2) extend the timing to complete certain projects, and/or
(3) reduce the scope of individual proposed projects or the overall program, or both. See “The NEW SLC - Funding
Sources” for more information regarding federal grant funding received by the Department.
Federal Law Affecting Rates and Charges
Rates and charges for aeronautical use of an airport imposed pursuant to a written agreement between the air
carriers operating at an airport and the operator of the airport are generally not subject to federal regulation. The AUA
between the City and the Signatory Airlines sets forth a formula for establishing rates and charges for use of the
aeronautical facilities at the Airport. Accordingly, the Department believes that the provisions of federal law regarding
the determination of such fees are generally inapplicable during the term of the AUA.
For rates and charges not determined pursuant to an agreement, Federal aviation law requires, in general, that
airport fees be reasonable and that, in order to receive federal grant funding, all airport generated revenues must be
expended for the capital or operating costs of the airport, the local airport system, or other local facilities owned or
operated by the airport owner that are directly and substantially related to air transportation of passengers or property.
Pursuant to the requirements of the Federal Aviation Administration Authorization Act of 1994, the USDOT and FAA
have promulgated regulations setting forth an expedited hearing process to be followed in determining the
reasonableness of airport rates and charges, and have also promulgated a policy statement (the “Rates and Charges
Policy”), which sets forth the standards that the USDOT uses in determining the reasonableness of the fees charged
to airlines and other aeronautical users.
In 1997, the United States Court of Appeals for the District of Columbia determined that a portion of the
Rates and Charges Policy was arbitrary and capricious and vacated po rtions of the policy and remanded it to the
USDOT. In 2008, USDOT amended the Rates and Charges Policy to permit “congested airports,” as defined therein,
to charge a two part landing fee that includes a per operation charge intended to help reduce congestion and operating
delays. Congested airports are also permitted to include certain other costs in their rate base, including the cost of
certain construction work in progress and costs associated with reliever airports, if owned by the same airport operator.
The Airport does not currently qualify as a congested airport. The USDOT has not yet proposed any other revisions
to the Rates and Charges Policy. If new guidelines are published, the costs that will be permitted to be included in
determining an airport’s rate base and the extent to which such future guidelines may limit the Department’s flexibility
in negotiating new airline agreements or in setting rates and charges for use of the Airport’s airfield and non -airfield
facilities cannot be determined at this time. Any new FAA guidelines or any standards promulgated by a court in
connection with a dispute could limit the amounts and allocation of costs payable by airlines serving the Airport.
Unless and unttil the USDOT promulgates a new policy regarding rates and charges, the guiding principle for
determining whether rates and charges established for use of airport assets is the requirement of federal law that such
charges be “reasonable.”
PFC Revenues and Other Sources of Funding
The plan of finance for the New SLC assumes that PFC revenues, federal grants and other sources of funding
will be received in certain amounts and at certain times to pay certain project costs and debt service. See “The NEW
SLC - Funding Sources.” No assurance can be given that these sources of funding actually will be available in the
amounts or on the schedule assumed.
The amount of PFC revenue collected for the Airport in past years has varied, and in future years will vary,
based upon the actual number of passenger enplanements at the Airport. No assurance can be given that any level of
enplanements will be realized. As a consequence of the reduction in passengers using the Airport due to the COVID-
19 pandemic, the amount of PFCs collected diminished from FY 2019 levels in FY 2020 and was reduced in FY 2021
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as well. In FY 2022, PFC collections recovered as passenger traffic at the Airport regained momentum. This adverse
impact of decreased enplanements could be direct or indirect. For example, PFC shortfalls could result in increases
in terminal rentals or landing fees at the Airport, thereby negatively impacting the airlines’ desire to operate at the
Airport. Furthermore, under the terms of the PFC Act, the FAA may terminate the Department’s authority to impose
a PFC if the Department’s PFC revenues are not being used for approved projects in accordance with the FA A’s
approval, the PFC Act or the regulations promulgated thereunder, or if the Department otherwise violates the PFC Act
or regulations. The FAA may also terminate the Department’s authority to impose a PFC for a violation by the
Department of the Airport Noise and Capacity Act. The PFC termination provisions contained in the regulations
provide both informal and formal procedural safeguards. The FAA’s PFC regulations require Collecting Carriers (as
defined in the PFC Act) to account for PFC collections sep arately, and provides that such funds are to be regarded as
trust funds held by the Collecting Carriers for the beneficial interest of the public agency imposing the PFC . In early
cases in which PFCs were at issue, certain bankruptcy court decisions indicated that PFCs may not be treated as trust
funds and that airports are not entitled to any priority over other creditors of the Collecting Carrier as to such funds.
In the more recent cases, however, the bankruptcy court has recognized the airports’ interests in PFCs and taken steps
to segregate PFCs from airline revenues. Where an air carrier files for bankruptcy protection and liquid ates, PFC
revenues may not be recoverable if they have been expended by the carrier before such filing.
To the extent that any portion of the funding assumed in the plan of finance for capital projects at the Airport
is not available as anticipated, the Department may be required to issue an additional Series of Bonds or Subordinate
Obligations to pay the costs of such capital projects and to increase airline rates and charges to pay debt service on the
Bonds and the Subordinate Obligations and to fund the required coverage thereon. As an alternative to issuing Bonds
or Subordinate Obligations, the Department may ultimately decide not to proceed with certain capital projects or may
proceed with them on a different schedule, producing different results than those included in the projections shown in
the “APPENDIX B - REPORT OF THE AIRPORT CONSULTANT.”
Cybersecurity
The Department, like many other large public and private entities, relies on a large and complex technology
environment to conduct its operations, and faces multiple cybersecurity threats including, but not limited to, hacking,
phishing, viruses, malware, ransomware and other attacks to its computing and other digital networks and systems
(collectively, “Systems Technology”). As a recipient and provider of personal, private, or sensitive information, the
Department may be the target of cybersecurity incidents that could result in adverse consequences to the Department’s
Systems Technology, requiring a response action to mitigate the consequ ences.
Cybersecurity incidents could result from unintentional events, or fro m deliberate attacks by unauthorized
entities or individuals attempting to gain access to the Department’s Systems Technology for the purposes of
misappropriating assets or information or causing operational disruption and damage. To mitigate the risk of business
operations impact and/or damage by cybersecurity incidents or cyber-attacks, the Department invests in multiple forms
of cybersecurity and operational safeguards.
While Department cybersecurity and operational safeguards are periodically tested, no assurance can be
given by the Department that such measures will ensure against other cybersecurity threats and attacks. Cybersecurity
breaches could damage the Department’s Systems Technology and cause material disruptions to the Department’s
finances or operations. The costs of remedying any such damage or protecting against future attacks could be
substantial. Further, cybersecurity breaches could expose the Department to material litigation and other legal risks,
which could cause the Department to incur material costs relating to such legal claims or proceedings.
The airlines serving the Airport and other Airport tenants, as well as the FAA and TSA, also face
cybersecurity threats that could affect their operations or finances. As evidenced by the recent failure of the FAA’s
Notice to Air Missions system and the resulting nation -wide ground stop, third party computer systems beyond the
control of the Department can also be critical to the air transportation system.
Environmental Regulations
The EPA and the State Department of Environmental Quality are responsible for regulating air quality and
water quality. The City is not aware of any releases of pollutants or contaminants at the Airport , other than those
which are subject to ongoing remediation described in Note No. 1 (“Pollution Remediation Obligations”) to the
audited financial statements in APPENDIX A hereto, and as described in the following sentence. In addition to on-
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going remediation efforts, the Department is investigating the extent to which per- and polyfluoroalkyl (“PFAS”)
substances contained in fire-fighting foam are contained in soil and groundwater located at or adjacent to the Airport’s
Utah Air National Guard facilities and the Department’s now closed fire-fighting training facility and surrounding
Airport property. Until this year, the FAA required operators of most commercial U.S. airports, including the Airport,
to use aqueous fire-fighting foam (“AFFF”) containing PFAS. In January 2023, the FAA announced that airports
could begin to convert to PFAS-free fire-fighting foam (“F3”) provided that such F3 meets certain federal criteria. The
Department expects to transition to use of F3 as it becomes widely available, but the current formulation of F3 is not
a simple “drop in” solution and existing equipment must be thoroughly remediated of AFFF contamination before F3
can be used, which may require significant time and funds. The EPA has commenced the process for considering
PFAS as a hazardous substance under federal law, but currently, no guidance regarding remediation of existing PFAS
has been provided. In September 2022, the EPA proposed to designate some PFAS as a hazardous substance pursuant
to the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), and in March 2023
the EPA proposed national drinking-water standards for some PFAS contaminants. As of the date of this Official
Statement, the EPA has finalized neither proposal. The Department is also continuing to undertake extensive
investigation of soil and groundwater at the Airport and is evaluating how to address treating the materials released
from AFFF. However, there could be other such releases not known to the City as of the date of this Official Statement.
The potential exists for additional federal regulation or remediation that may require capital expenditures or changes
in operations at the Airport System.
Potential Limitation of Tax Exemption of Interest on Series 2023 Bonds
From time to time, the President of the United States, the United States Congress and/or state legislatures
have proposed and could propose in the future, legislation that, if enacted, could cause interest on the Series 2023
Bonds to be subject, directly or indirectly, to federal income taxation or to be subject to or exempted from state income
taxation, or otherwise prevent Beneficial Owners from realizing the full current benefit of the tax status of such
interest. Clarifications of the Internal Revenue Code of 1986, as amended (the “Code”), or court decisions may also
cause interest on the Series 2023 Bonds to be subject, directly or indirectly, to federal income taxation or to be subject
to or exempted from state income taxation. The introduction or enactment of any such legislative proposals or any
clarification of the Code or court decisions may also affect the market price for, or marketability of, the Series 2023
Bonds, or could limit the value of certain deductions and exclusions, including the exclusion for tax-exempt interest.
Prospective purchasers of the Series 2023 Bonds should consult their own tax advisors regarding any such pending or
proposed federal or state tax legislation, regulations or litigation, as to which Bond C ounsel expresses no opinion.
Interest on the Series 2023 Bonds may become subject to federal income taxation if certain events occur subsequent
to the date of issuance of the Series 2023 Bonds that violate the requirements and limitations prescribed by the Code.
Although the City has agreed not to violate the requirements and limitations of the Code, there can be no assurance
that these events will not occur. If certain requirements are violated, the interest on the Series 2023 Bonds may be
deemed to be taxable retroactive to their date of issuance. The Series 2023 Bonds are not subject to mandatory
redemption or to mandatory acceleration in the event of such an occurrence. No premium or additional interest will
be paid to the bondholders or former bond holders to compensate the bondholders for any losses they may incur as a
result of the interest on the Series 2023 Bonds becoming subject to federal income taxation. See “TAX MATTERS –
Changes in Federal and State Tax Law.”
Risk of Tax Audit
The Internal Revenue Service (the “IRS”) includes a subdivision that is specifically devoted to tax-exempt
bond compliance. If the IRS undertook an examination of the Series 2023 Bonds or other Bonds issued by the City
as tax-exempt bonds, it could have a material adverse effect on the marketability or the market value of the Series
2023 Bonds.
Counterparty and Liquidity Risk Exposure
The Department has entered into a credit facility agreement, and may enter into additional agreements, with
various financial institutions. Any adverse rating developments with respect to such credit or liquidity providers or
other counterparties could have an adverse effect on the Department, including, without limitation, an increase in debt
service-related costs, a termination event or other negative effects under the related agreements. Payments required
under these agreements in the event of any termination or a default by any of the financial institutions under its liquidity
obligations could have an adverse impact on the finances of the Department.
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Legislative Developments
The Department is a department of the City and subject to applicable federal, State and City legislation and
regulation, changes to which could have a material effect on the operations or financial position of the Department.
The Airport is highly regulated by federal agencies including the FAA, the EPA, DEQ, the TSA, Customs and Border
Protection and the Department of Health. In the past, actions by these agencies (in particular the FAA and the TSA)
have required the Department to undertake additional capital expenditures and have affected passenger traffic. The
Department cannot predict whether any such legislation or regulations will be introduced after the date of this Official
Statement or, if introduced, whether such legislation or regulations would be enacted or adopted, or their effect on the
operations or financial condition of the Department.
Limitation of Remedies; No Acceleration
Any remedies available to owners of the Bonds upon the occurrence of an event of default under the Master
Indenture are in many respects dependent upon judicial actions which are in turn often subject to discretion and delay
and could be both expensive and time-consuming to obtain. If the Department fails to comply with its covenants
under the Master Indenture, including its covenant to pay principal of or interest on the Bonds, there can be no
assurance that available remedies will be adequate to fully protect the interests of the owners of the Bonds. The ability
of the Department to comply with its covenants under the Master Indenture and to generate Net Revenues sufficient
to pay principal of and interest on the Bonds may be adversely affected by actions and events outside the control of
the Department. Further, the rate covenant included in the Master Indenture provides that if the requirement that Net
Revenues together with any Transfer equal at least 125% of aggregate Annual Debt Service with respect to the Bonds
is not met, so long as the Department is taking specified steps to meet the rate covenant, an event of default will not
be triggered until after the following Fiscal Year. See “SECURITY FOR THE SERIES 2023 BONDS-Rate
Covenant.” The ability of the Department to increase its rates, fees and charges and to reduce its expenses will be
limited by, among other things, existing contracts and federal law.
Events of Default under the Indenture and related remedies are described herein under “APPENDIX C -
FORM OF MASTER INDENTURE-ARTICLE VIII-DEFAULTS AND REMEDIES.” The occurrence of an Event
of Default does not grant any right to accelerate payment of the Bonds, including the Series 2023 Bonds. In addition,
the Master Subordinate Obligation Indenture does not grant any right to accelerate payment of Subordinate Obligations
as a result of an event of default thereunder. Since Net Revenues are Revenues net of all amounts needed to pay
Operation and Maintenance Expenses of the Airport System, and the City is not subject t o involuntary bankruptcy
proceedings, the City may be able to continue indefinitely collecting Revenues and applying them to the operation of
the Airport System even if an Event of Default has occurred and no payments are being made on the Bonds, including
the Series 2023 Bonds.
Forward-Looking Statements
This Official Statement contains projections and estimates that are based on current expectations. In light of
the important factors that may materially affect the financial condition of the Department an d the aviation industry
generally and other economic and financial matters, the inclusion in this Official Statement of such projections and
estimates should not be regarded as a representation by the City that such projections and estimates will occur. Such
projections and estimates are not intended as representations of fact or guarantees of results.
As discussed in the Report of the Airport Consultant, the factors affecting aviation activity at the Airport
include: the growth of population and of the economy in the Airport Service Area, the recovery from the effects of the
COVID-19 pandemic, airline service and route networks, the financial health and viability of the airline industry,
national and international economic and political conditions, the ava ilability and price of aviation fuel, levels of air
fares, the capacity of the national air traffic control system and capacity at the Airport and elsewhere. The Report of
the Airport Consultant should be read in its entirety for an understanding of all of the assumptions used to prepare the
projections made therein. Inevitably, some assumptions used to develop the projections will not be realized and
unanticipated events and circumstances may occur. Therefore, the actual results achieved during the projection period
will vary, and the variations may be material. See “APPENDIX B - REPORT OF THE AIRPORT CONSULTANT.”
TAX MATTERS
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General
In the opinion of Kutak Rock LLP, Bond Counsel to the City, under existing laws, regulations, rulings and
judicial decisions, interest on the Series 2023 Bonds is excluded from gross income for federal income tax purposes,
except for interest on any Series 2023A Bond for any period during which such Series 2023A Bond is held by a
“substantial user” of the facilities financed by the Series 2023A Bonds or a “related person” within the meaning of
Section 147(a) of the Code. Bond Counsel is further of the opinion that (a) interest on the Series 2023A Bonds is a
specific preference item for purposes of the federal alternative minimum tax imposed on individuals, and (b) interest
on the Series 2023B Bonds is not a specific preference item for purposes of the federal alternative minimum tax
imposed on individuals . The opinions described above assume the accuracy of certain representations and compliance
by the City with covenants designed to satisfy the requirements of the Code, that must be met subsequent to the
issuance of the Series 2023 Bonds. Failure to comply with such requirements could cause interest on the Series 2023
Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Series
2023 Bonds. The City has covenanted to comply with such requirements. Bond Counsel has expressed no opinion
regarding other federal tax consequences arising with respect to the Series 2023 Bonds. For tax years beginning after
December 31, 2022, interest on the Series 2023 Bonds may affect the federal alternative minimum tax imposed on
certain corporations.
The accrual or receipt of interest on the Series 2023 Bonds may otherwise affect the federal income tax
liability of the owners of the Series 2023 Bonds. The extent of these other tax consequences will depend on such
owners’ particular tax status and other items of income or deduction. Bond Counsel has expressed no opinion
regarding any such consequences.
Purchasers of the Series 2023 Bonds, particularly purchasers that are corporations (including S corporations,
foreign corporations operating branches in the United States of America, and certain corporations subject to the
alternative minimum tax imposed on corporations for tax years beginning after December 31, 2022), property or
casualty insurance companies, banks, thrifts or other financial institutions, certain recipients of social security or
railroad retirement benefits, taxpayers entitled to claim the earned income credit, taxpayers entitled to claim the
refundable credit in Section 36B of the Code for coverag e under a qualified health plan or taxpayers who may be
deemed to have incurred or continued indebtedness to purchase or carry tax-exempt obligations, should consult their
tax advisors as to the tax consequences of purchasing or owning the Series 2023 Bonds.
Bond Counsel is further of the opinion that, under the existing laws of the State, as presently enacted and
construed, interest on the Series 2023 Bonds is exempt from State individual income taxes.
A copy of the proposed form of opinion of Bond Counsel is attached hereto as APPENDIX G.
Tax Treatment of Original Issue Premium
The Series 2023 Bonds that have an original yield below their respective interest rates, as shown on the inside
cover of this Official Statement (collectively, the “Premium Series 2023 Bonds”), are being sold at a premium. An
amount equal to the excess of the issue price of a Premium Series 2023 Bond over its stated redemption price at
maturity constitutes premium on such Premium Series 2023 Bond. A purchaser of a Premium Series 2023 Bond must
amortize any premium over such Premium Series 2023 Bond’s term using constant yield principles, based on the
purchaser’s yield to maturity (or, in the case of Premium Series 2023 Bonds callable prior to their maturity, generally
by amortizing the premium to the call date, based on the purchaser’s yield to the call date and giving effect to any call
premium). As premium is amortized, the amount of the amortization offsets a corresponding amount of interest f or
the period, and the purchaser’s basis in such Premium Series 2023 Bond is reduced by a corresponding amount
resulting in an increase in the gain (or decrease in the loss) to be recognized for federal income tax purposes upon a
sale or disposition of such Premium Series 2023 Bond prior to its maturity. Even though the purcha ser’s basis may
be reduced, no federal income tax deduction is allowed. Purchasers of the Premium Series 2023 Bonds should consult
their tax advisors with respect to the determination and treatment of premium for federal income tax purposes and
with respect to the state and local tax consequences of owning a Premium Series 2023 Bond.
Tax Treatment of Original Issue Discount
The Series 2023 Bonds that have an original yield above their respective interest rates as shown on the inside
cover of this Official Statement (collectively, the “Discount Series 2023 Bonds”) are being sold at an original issue
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discount. The difference between the initial public offering prices of such Discount Series 2023 Bonds and their stated
amounts to be paid at maturity (excluding “qualified stated interest” within the meaning of Section 1.1273 -1 of the
Regulations) constitutes original issue discount treated in the same manner for federal income tax purposes as interest,
as described above.
The amount of original issue discount that is treated as having accrued with respect to a Discount Series 2023
Bond is added to the cost basis of the owner of the bond in determining, for federal income tax purposes, gain or loss
upon disposition of such Discount Series 2023 Bond (including its sale, redemption or payment at maturity). Amounts
received on disposition of such Discount Series 2023 Bond that are attributable to accrued or otherwise recognized
original issue discount will be treated as tax-exempt interest, rather than as taxable gain, for federal income tax
purposes.
Original issue discount is treated as compounding semiannually, at a rate determined by reference to the yield
to maturity of each individual Discount Series 2023 Bond, on days that are determined by reference to the maturity
date of such Discount Series 2023 Bond. The amount treated as original issue discount on such Discount Series 20 23
Bond for a particular semiannual accrual period is equal to (a) the product of (i) the yield to maturity for such Discount
Series 2023 Bond (determined by compounding at the close of each accrual period) and (ii) the amount that would
have been the tax basis of such Discount Series 2023 Bond at the beginning of the particular accrual period if held by
the original purchaser, less (b) the amount of any interest payable for such Discount Series 20 23 Bond during the
accrual period. The tax basis for purposes of the preceding sentence is determined by adding to the initial public
offering price on such Discount Series 2023 Bond the sum of the amounts that have been treated as original issue
discount for such purposes during all prior periods. If such Discount Series 20 23 Bond is sold between semiannual
compounding dates, original issue discount that would have been accrued for that semiannual compounding period
for federal income tax purposes is to be apportioned in equal amounts among the days in such compounding period.
Owners of Discount Series 2023 Bonds should consult their tax advisors with respect to the determinat ion
and treatment of original issue discount accrued as of any date and with respect to the state and local tax consequences
of owning a Discount Series 2023 Bond. Subsequent purchasers of Discount Series 2023 Bonds that purchase such
bonds for a price that is higher or lower than the “adjusted issue price” of the bonds at the time of purchase should
consult their tax advisors as to the effect on the accrual of original issue discount .
Backup Withholding
An owner of a Series 2023 Bond may be subject to backup withholding at the applicable rate determined by
statute with respect to interest paid with respect to the Series 2023 Bonds if such owner fails to provide to any person
required to collect such information pursuant to Section 6049 of the Code with such owner’s taxpayer identification
number, furnishes an incorrect taxpayer identification number, fails to report interest, dividends or other “reportable
payments” (as defined in the Code) properly, or, under certain circumstance s, fails to provide such persons with a
certified statement, under penalty of perjury, that such owner is not subject to backup withholding.
Changes in Federal and State Tax Law
From time to time, there are legislative proposals in the Congress and in the states that, if enacted, could alter
or amend the federal and state tax matters referred to under this heading “TAX MATTERS” or adversely affect the
market value of the Series 2023 Bonds. It cannot be predicted whether or in what form any such proposal might be
enacted or whether if enacted it would apply to bonds issued prior to enactment. In addition, regulatory actions are
from time to time announced or proposed and litigation is threatened or commenced which, if implemented or
concluded in a particular manner, could adversely affect the market value of the Series 2023 Bonds. It cannot be
predicted whether any such regulatory action will be implemented, how any particular litigation or judicial action will
be resolved, or whether the Series 2023 Bonds or the market value thereof would be impacted thereby. Purchasers of
the Series 2023 Bonds should consult their tax advisors regarding any pending or proposed legislation, regulatory
initiatives or litigation. The opinions expressed by Bond Counsel are b ased on existing legislation and regulations as
interpreted by relevant judicial and regulatory authorities as of the date of issuance and delivery of the Series 2023
Bonds, and Bond Counsel has expressed no opinion as of any date subsequent thereto or wit h respect to any pending
legislation, regulatory initiatives or litigation.
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Prospective purchasers of the Series 2023 Bonds are advised to consult their own tax advisors prior to any
purchase of the Series 2023 Bonds as to the impact of the Code upon their acquisition, holding or disposition of the
Series 2023 Bonds.
RATINGS
The Series 2023 Bonds have been assigned ratings of “__” (outlook: [stable]) by Moody’s Investors Service,
Inc. (“Moody’s”), “__” (outlook:[positive]) by S&P Global Ratings (“S&P”) and “___” (outlook: [stable]) by Kroll
Bond Rating Agency, Inc. (“KBRA”), respectively. Such ratings reflect only the respective views o f Moody’s, S&P
and KBRA and an explanation of the significance of such ratings may be obtained from the rating agency f urnishing
the same. There is no assurance that such ratings will continue for any given period of time or that they will not be
revised or withdrawn entirely by any or all of such rating agencies if, in its or their judgment, circumstances so warrant.
Any such downward revision or withdrawal of such ratings may have an adverse effect on the market price of the
Series 2023 Bonds.
FORWARD-LOOKING STATEMENTS
This Official Statement contains “forward-looking statements” within the meaning of the federal securities
laws in the sections hereof entitled “THE NEW SLC,” “THE AIRPORT,” “REPORT OF THE AIRPORT
CONSULTANT” and APPENDIX B. If and when included in this Official Statement, the words “expects,” “projects,”
“intends,” “anticipates,” “estimates” and analogous expressions are intended to identify forward -looking statements
as defined in the Securities Act of 1933, as amended, and any such statements inherently are subject to a variety of
risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and
uncertainties include, among others, general economic and business conditions, changes in political, social and
economic conditions, regulatory initiatives and compliance with governmental regulations, litigation and various other
events, conditions and circumstances affecting airports and the airline industry, many of which are beyond the control
of the Department. These forward-looking statements speak only as of the date of this Official Statement. The
Department disclaims any obligation or undertaking to release publicly any updates or revisions to any forward -
looking statement contained herein to reflect any change in the Department’s expectations with regard thereto or any
change in events, conditions or circumstances on which any such statement is based.
NO DEFAULTED BONDS
The City has never failed to pay principal and interest when due on any of its bonds, no tes or other financial
obligations.
LEGAL MATTERS
Litigation
The City Attorney reports the following matters involving potential financial liability of the City with
respect to the Department:
An opinion executed by the City Attorney, dated the date of closing, will be provided stating, among other
things, that to the best of her knowledge, after due inquiry, no litigation, with merit, in the State or federal court s has
been served on the City or is, to the best of her knowledge, threatened, challenging the creation, organization or
existence of the City, or the titles of its officers to their respective offices, or seeking to restrain or enjoin the issuan ce,
sale or delivery of the Series 2023 Bonds, or directly or indirectly contesting or affecting the proceedings or the
authority by which the Series 2023 Bonds are issued, the legality of the purposes for which the Series 2023 Bonds are
issued, or the validity of the Series 2023 Bonds, or the issuance thereof.
Lawsuits are periodically filed against the Department and/or its employees, involving construction claims,
workers’ compensation and employment claims, claims related to procurement processes and small claims. The
majority of these claims are covered by the Department’s insurance coverage and self-insured retentions within
expected limits. The City has a statutory obligation to defend and indemnify its officers and employees, including
those of the Department, in relation to lawsuits arising from acts or failures to act of the officers or employees while
in the scope and course of employment.
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The City is involved from time to time in routine litigation matters relating to the Department and its
operations. These routine matters include personal injury and property damage claims for which the City’s liability
is covered in whole or part by insurance or by contractual provisions that obligate third party service providers or
concessionaires to indemnify and defend the City from claims that relate to such third party services at the Airport.
Other matters include disputes with employees; disputes with contractors, subcontractors, engineers and others arising
out of construction and maintenance of the Department’s properties; dispute s over leases and concessions; and
property, theft and damage claims arising from the Department’s parking operations. The City has assessed the
pending litigation and determined that the likelihood of liability in uninsured claims currently pending is re mote. The
City does not expect that these matters will require any amounts to be paid that, singly or in the aggregate, will have
a material effect on the operations or financial position of the Department. There can be no assurance, however, that
a judgment may be rendered and sustained upon appeal that exceeds the amount of the Department’s insurance and
its self-insured retentions, and such amounts, although unlikely, could be material.
Approval of Legal Proceedings
Certain legal matters incident to the authorization and issuance of the Series 2023 Bonds are subject to the
approval of Kutak Rock LLP, Bond Counsel to the City. Certain legal matters will be passed upon for the City by the
City Attorney and by Kaplan Kirsch & Rockwell LLP, the City’s Disclosure Counsel. The Underwriters are being
represented by their counsel, Gilmore & Bell, P.C. The approving opinion of Bond Counsel will be delivered with the
Series 2023 Bonds in substantially the form set forth in APPENDIX G of this Official Statement.
INDEPENDENT AUDITORS
The basic financial statements of the Department as of and for the year ended June 30, 20 22, included in
APPENDIX A to this Official Statement, have been audited by Eide Bailly LLP, independent auditors, as stated in
their report appearing in APPENDIX A herein.
Copies of the City’s annual comprehensive financial report may be obtained upon request from the City
Treasurer’s office, 451 South State Street, Room 228, Salt Lake City, Utah 84111. Copies of the Department’s annual
comprehensive financial report may be obtained upon request from Brian Butler, the Department’s Chief Financial
Officer, 3920 West Terminal Drive, P.O. Box 145550, Salt Lake City, Utah 84122.
UNDERWRITING
The Series 2023 Bonds are being purchased by BofA Securities, Inc., (“BofA”), J.P. Morgan Securities LLC
(“J.P. Morgan”), Barclays Capital Inc., Goldman Sachs & Co. LLC, Samuel A. Ramirez & Co., Inc., Siebert Williams
Shank & Co., LLC and Wells Fargo National Association (collectively, the “Underwriters”), for whom BofA is acting
as representative (the “Representative”). The Underwriters have agreed, subject to certain conditions, to purchase all
of the Series 2023 Bonds at an aggregate purchase price of $____________ (equal to the par amount of the Series
2023 Bonds, [plus an original issue premium in the aggreg ate amount of $_____________] [less an underwriting
discount of $____________)] pursuant to a Bond Purchase Agreement between the City and the Representative, on
behalf of the Underwriters (the “Bond Purchase Agreement”) and to reoffer the Series 2023 Bonds at public offering
prices not higher than or at yields not lower than those se t forth on the inside cover page hereof. The Bond Purchase
Agreement provides that the Underwriters will purchase all of the Series 2023 Bonds, if any are purchased. The
Underwriters reserve the right to join with dealers and other underwriters in offerin g the Series 2023 Bonds to the
public. The obligations of the Underwriters to accept delivery of the Series 2023 Bonds are subject to various
conditions of the Bond Purchase Agreement.
The Underwriters may offer and sell the Series 2023 Bonds to certain dealers (including depositing the Series
2023 Bonds into investment trusts, which investment trusts may be sponsored by an Underwriter) and others at prices
lower than the public offering prices stated on the inside cover page hereof. The initial public offering prices may be
changed from time to time by the Underwriters.
The Underwriters and their respective affiliates are full service financial institutions engaged in various
activities, which may include securities trading, commercial and in vestment banking, investment management,
principal investment, hedging, financing and brokerage activities. Certain of the Underwriters and their respective
affiliates have, from time to time, performed, and may in the future perform, various investment b anking services for
the City, for which they received or will receive customary fees and expenses.
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In the ordinary course of their various business activities, the Underwriters and their respective affiliates may
make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities)
and financial instruments (which may include bank loans and/or credit default swaps) for their own account and for
the accounts of their customers and may at any time hold long and short positions in such securities and instruments.
Such investment and securities activities may involve securities and instruments of the City.
The following language has been provided by the Underwriters named herein. The City takes no
responsibility as to the accuracy or completeness thereof.
BofA, an underwriter of the Series 2023 Bonds, has entered into a distribution agreement with its affiliate
Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill”). As part of this arrangement, BofA may distribute
securities to Merrill, which may in turn distribute such securities to investors through the financial advisor network of
Merrill. As part of this arrangement, BofA may compensate Merrill as a dealer for their selling efforts with respect to
the Series 2023 Bonds.
This paragraph has been provided by J.P. Morgan Securities LLC: J.P. Morgan Securities LLC (“JPMS”),
one of the Underwriters of the Series 2023 Bonds, has entered into negotiated dealer agreements (each, a “Dealer
Agreement”) with each of Charles Schwab & Co., Inc. (“CS&Co.”) and LPL Financial LLC (“LPL”) for the retail
distribution of certain securities offerings at the original issue prices. Pu rsuant to each Dealer Agreement, each of
CS&Co. and LPL may purchase Series 2023 Bonds from JPMS at the original issue price less a negotiated portion of
the selling concession applicable to any Series 2023 Bonds that such firm sells.
MORE TO COME
MUNICIPAL ADVISOR
PFM is serving as municipal advisor to the Department for the issuance of the Series 2023 Bonds. PFM is
not obligated to undertake, and has not undertaken, either to make an independent verification of or to assume
responsibility for, the accuracy, completeness, or fairness of the information contained in this Official Statement. PFM
is an independent financial advisory firm and is not engaged in the business of underwriting, trading or distributing
securities. PFM is a registered municipal advisor with the Securities and Exchange Commission and the Municipal
Securities Rulemaking Board under the Dodd-Frank Act of 2010.
CONTINUING DISCLOSURE
The City will enter into a Continuing Disclosure Agreement (the “CDA”), in substantially the form attached
hereto as APPENDIX F, for the benefit of the beneficial owners of the Series 2023 Bonds to send certain information
annually and to provide notice of certain events to the Municipal Securities Rulemaking Board pursuant to the
requirements of Section (b)(5) of Rule 15c2-12 (the “Rule”) adopted by the SEC under the Securities Exchange Act
of 1934. In the CDA, the City will agree to use diligent efforts to require certain “obligated persons” (at this time only
Delta) to provide certain annual financial information and operating data, unless the City is no longer required to do
so under the Rule. The City has not undertaken to provide additional information regarding any person that is not
obligated under the AUA, a lease or other agreement having a term of more than one year to pay a portion of the debt
service on the Series 2023 Bonds and providing at least twenty percent (20%) of the Revenues of the Department for
the prior two (2) fiscal years. Delta has agreed in the AUA to provide the City such information with respect to Delta
as the City may reasonably request in order for the City to comply with the requirements of the Rule.
A failure by the City to comply with the CDA will not constitute a default under the Indenture and beneficial
owners of the Series 2023 Bonds are limited to the remedies described in the CDA. A failure by the City to comply
with the CDA must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal
securities dealer before recommending the purchase or sale of the Series 2023 Bonds in the secondary market.
Consequently, such a failure may adversely affect the transferability and liquidity of the Series 2023 Bonds and their
market price. See “FORM OF CONTINUING DISCLOSURE AGREEMENT” attached hereto as APPENDIX F for
the information to be provided, the events which will be noticed on an occurrence basis and the other terms of the
CDA, including termination, amendment and remedies.
The City entered into a CDA with respect to the Series 2017 Bonds in February 2017, and the City entered
into additional CDAs with respect to the Series 2018 Bonds and Series 2021 Bonds. Prior to February 2017, the City
KKR Draft 4/21/2023
90
did not have any bonds secured by Net Revenues of the Airport System outstanding. The City has complied fully with
its continuing disclosure obligations with respect to its Airport Revenue Bonds for the preceding five years.
The City has entered into a number of continuing disclosure undertakings p ursuant to the Rule with respect
to the bonds it has issued in addition to those issued for the benefit of the Department and has contracted with a number
of dissemination agents to file annual information and notices of certain events on behalf of the Cit y. In the previous
five years the City provided its annual financial information and audited financial statements to each of the applicable
dissemination agents in advance of the deadline specified in the applicable continuing disclosure undertaking.
Dissemination agents for certain of the City’s bonds filed such information late; however, the information was filed
within 10 days of the deadline. Additionally, with respect to certain bonds issued for the benefit of the City’s Water
System, during the previous five years the City filed the audited financial statements of the Water System, but did not
include the audited financial statements of the City. Corrective filings have been made and the City has taken steps
to ensure that in the future the City’s audited financial statements will be filed for such Water System bonds as
required. The City has adopted continuing disclosure policies and procedures to help ensure compliance with its
continuing disclosure undertakings. [UPDATE]
MISCELLANEOUS
All quotations from, and summaries and explanations of the Utah Constitution, statutes, programs, laws of
the State, court decisions and the Indenture, which are contained in this Official Statement do not purport to be
complete and reference is made to said Constitution, statutes, programs, laws, court decisions and the Indenture for
full and complete statements of their provisions.
Any statements in this Official Statement involving matters of opinion, whether or not expressly so stated,
are intended as such and not as representations of facts. This Official Statement is not t o be construed as a contract
between the City or the Underwriters and the purchasers or owners of any of the Series 2023 Bonds.
The appendices attached hereto are an integral part of this Official Statement and should be read in
conjunction with the foregoing material.
The delivery of this Official Statement and its distribution and use have been duly authorized by the City.
SALT LAKE CITY CORPORATION
By:
Erin J. Mendenhall, Mayor
SALT LAKE CITY DEPARTMENT OF
AIRPORTS
By:
Bill Wyatt, Executive Director
KKR Draft 4/21/2023
A-1
APPENDIX A
ANNUAL COMPREHENSIVE FINANCIAL REPORT
B-1
APPENDIX B
REPORT OF THE AIRPORT CONSULTANT
`
PREPARED BY
Landrum & Brown, Incorporated
Appendix B:
Report of the Airport Consultant
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport
DRAFT 3 - April 20, 2023
PREPARED FOR
Salt Lake City Department of Airports
4445 Lake Forest Drive
Suite 700
Cincinnati, OH 45242
USA
T +1 513 530 5333
F +1 513 530 1278
landrum-brown.com
July XX, 2023
Mr. William W. Wyatt
Executive Director
Salt Lake City Department of Airports
Salt Lake City International Airport
3920 West Terminal Drive
Salt Lake City, Utah 84122
Re: Report of the Airport Consultant, Salt Lake City, Utah, Airport Revenue Bonds, Series 2023A (AMT) and
Series 2023B (Non-AMT), Salt Lake City International Airport
Dear Mr. Wyatt:
Landrum & Brown, Incorporated (L&B), in association with Airmac LLC, is pleased to submit this Report of the
Airport Consultant (Report) in connection with the proposed issuance by Salt Lake City, Utah, of its Airport
Revenue Bonds, Series 2023A (AMT) and Series 2023B (Non-AMT) herein referred to collectively as the Series
2023 Bonds. This independent Report has been prepared for the Salt Lake City Department of Airports
(Department) to support its planned issuance of the Series 2023 Bonds and is intended to be included in the
Official Statement for the Series 2023 Bonds as Appendix B, Report of the Airport Consultant. All capitalized terms
in this Report are used as defined in the Official Statement relating to the Series 2023 Bonds or in the Master
Indenture, except as otherwise defined herein.
Salt Lake City International Airport (Airport) is owned by Salt Lake City, Utah (City) and operated by the City
through the Department. The Mayor of the City, the City Council and an 11-member advisory board (Airport
Advisory Board) of citizen volunteers oversee its affairs. The Airport Advisory Board provides advice with respect
to broad matters of policy affecting the operation of the Airport System, while the Mayor and City Council oversee
the Department’s affairs. The Airport comprises approximately 9,400 acres of land in Salt Lake County, Utah. It is
located approximately five miles west of the City’s downtown. The Airport is generally isolated from other airport
competition and is the primary commercial air passenger and cargo service facility for the Salt Lake Valley, the
State of Utah, and portions of southwestern Wyoming, southeastern Idaho, northeastern Nevada, and
northwestern Colorado. The Department also operates two general aviation airports: South Valley Regional
Airport in West Jordan and Tooele Valley Airport in Erda (Auxiliary Airports). These airports serve the general
aviation needs of corporate and private aircraft in the region. The Department operates the Airport and the
Auxiliary Airports together as an Airport System.
The day-to-day operations of the Airport System are managed by the Executive Director, who is appointed by and
reports directly to the Mayor. The Executive Director leads the management staff of the Department along with the
Department’s Division Directors. Nine Directors are responsible for the following nine Divisions: Operations;
Maintenance; Finance; Design & Construction Management; Planning and Environmental; Administration and
Commercial Services; Communication and Marketing; Information Technology; and Operational Readiness,
Activation, and Transition for the New SLC. In addition, the executive team of the Department is comprised of the
Chief Operating Officer, to whom the Director of Operations reports, along with Airport police and firefighting. The
executive team of the Department is a full-time staff of professional and technical personnel located at the Airport.
Salt Lake City Department of Airports Report of the Airport Consultant
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ii | Landrum & Brown
The New SLC
The Department has completely redeveloped the Airport’s landside and terminal facilities and has completed the
initial phase of its new airside concourses. Fifty-one of the 94 loading-bridge capable gates are complete and in-
use, and the new airside concourse development is planned to be complete by late 2027. This redevelopment is
comprised of two major capital programs known as the Terminal Redevelopment Program (TRP) and the North
Concourse Program (NCP), as further described below. Collectively, these redevelopment programs are referred
to as the New SLC (formerly referred to as the Airport Redevelopment Program). An overview of the TRP and the
NCP is provided below, and additional details are contained in Chapter 3 of this Report.
The Terminal Redevelopment Program
The TRP replaced all of the former aged and functionally obsolete terminal complex, including the development of
a consolidated terminal facility, an attached linear airside concourse (Concourse A, formerly referred to has the
South Concourse), and landside facilities at the Airport. In addition, the TRP addressed changes in the aviation
industry and improved inherent operational inefficiencies of the former facilities. Other than the eastern half of
Concourse A, the TRP has been completed and was opened in September 2020. The remaining portion of
Concourse A is planned to be completed on October 31, 2023. It is currently estimated that the TRP will cost
approximately $2.83 billion of which approximately 92% has already been spent as of January 31, 2023.
Additional details on the TRP and its primary components are contained in Chapter 3 of this Report.
The North Concourse Program
The NCP consists of a 47-gate midfield concourse and the development of an underground connecting tunnel
from Concourse A. The initial phase of the NCP which consists of 21 of the planned 47 gates on Concourse B
(formerly referred to as the North Concourse) was completed and opened in October 2020. In April 2016, the
Signatory Airlines unanimously approved the implementation of the NCP. The second phase, which adds an
additional 9 aircraft gates, and the third phase, the new central underground tunnel are planned to be completed
in the fourth quarter of 2025 and 2024, respectively. The fourth phase, which was approved in late 2022, will add
16 additional gates, five of which are planned to be operational in January 2026, and the remaining 11 aircraft
gates are planned to be open in January 2027. When completed, it is currently estimated that the NCP will cost
approximately $2.30 billion of which approximately 43% has already been spent as of January 31, 2023.
Additional details on the NCP and its primary components are contained in Chapter 3 of this Report.
Airline Use Agreement
The City entered into a 10-year Airline Use Agreement (AUA) with the Signatory Airlines operating at the Airport
effective on July 1, 2014 and expiring on June 30, 2024. In 2021, United Airlines extended its AUA through June
30, 2034, and in 2023, Delta agreed to an additional amendment that modified certain provisions including
extending the term of its AUA to June 30, 2044 with options to extend through June 30, 2054 (Second
Amendment). In addition to revising the term of the agreement, the Second Amendment updates and modernizes
various provisions to the AUA, including key business terms to bolster the Department’s ability to fund the New
SLC, generate additional cash flow for other capital development, and maintain financial stability as it has agreed
to the new fourth phase extension of the NCP. One key change results in the mitigation of terminal vacancy risk to
the Department as the Second Amendment fixes the airline share of the terminal requirement at 82% as opposed
to the ratio of space leased to the airlines. Revenue sharing with the Signatory Airlines has also been enhanced in
the Second Amendment. The Department is currently in discussions with the other Signatory Airlines regarding
their execution of the Second Amendment; however, expects Alaska Airlines and Southwest airlines will execute
the Second Amendment. Other Signatory Airlines are currently reviewing the Second Amendment and are also
Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport| iii
expected to sign for a term through June 30, 2034. Additional details on the Second Amendment are contained in
Chapter 4 of this Report.
The current AUA and Second Amendment establish, among other things, procedures for setting and adjusting
rentals, rates, fees and charges to be collected for the use of Airport facilities. As of the date of this Report, the
Signatory Airlines at the Airport include Alaska Airlines, American Airlines, Delta, Frontier Airlines, JetBlue Airways,
Southwest Airlines, Spirit Airlines and United Airlines. Together, the Signatory Airlines accounted for nearly 100%
of enplaned passengers at the Airport in FY 2022.
The AUA and Second Amendment govern airline use of certain Airport facilities, including Airfield, Terminal,
Terminal Aircraft Aprons, baggage claim, ticket counters and gate areas and permits the Signatory Airlines to
lease Exclusive Use Premises, Preferential Use Premises, and Joint Use Premises. Exclusive Use Premises
generally include office space, storage areas, airline club lounges, and employee break rooms. Preferential Use
Premises are Airport space, including holdroom areas and gates, ticket counters, and certain baggage makeup
areas, leased to a Signatory Airline and to which the Signatory Airline has a higher and continuous priority of use
over all other air carriers. Joint Use Premises generally include baggage claim areas and baggage makeup
equipment and are shared with one or more other airlines. The AUA also contemplated the development of the
TRP during the course of its term. Section 10.06 of the AUA specifies special provisions regarding the TRP
including memorializing that the Signatory Airlines have approved and support the TRP. The NCP was not
contemplated as part of the AUA; however, the Signatory Airlines approved the first three phases of the NCP in
April 2016 and the fourth phase in late 2022.
The AUA also provides for extraordinary coverage protection that allows the Department to collect additional
payments from the Signatory Airlines to satisfy the Rate Covenant set forth in the Master Indenture if the
Department expects it will not meet the Rate Covenant in any FY. More information on the AUA and Second
Amendment can be found in Chapter 4 of this Report.
Existing Bonds and Series 2023 Bonds
The Series 2023 Bonds are being issued pursuant to the Master Indenture and Fourth Supplemental Trust
Indenture. As of July 2, 2023, the Department had $2.706 billion of debt outstanding consisting of the Series 2017
Bonds, the Series 2018 Bonds, and the Series 2021 Bonds (collectively, the “Existing Bonds”). Prior to the
issuance of the Series 2017 Bonds, the Department did not have any Bond debt outstanding. Therefore, the
Existing Bonds are all associated with funding for the New SLC. In addition, the Department has entered into a
short-term revolving credit facility with JP Morgan Chase Bank, National Association, pursuant to which the City
can access up to $150 million (Line of Credit); which constitute a subordinate obligation under the Subordinate
Trust Indenture. As of July 1, 2023, the Department had no outstanding balance on the Line of Credit, and all
$150 million was available to the Department, if needed.
The Department has funded to date and expects to continue to fund the design and construction of the New SLC
from a variety of sources, including Department funds, proceeds of airport revenue bonds (including the Existing
Bonds, the Series 2023 Bonds, and future bonds), Passenger Facility Charges (PFCs), Customer Facility
Charges (CFCs), and federal grants.
Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
iv | Landrum & Brown
Proceeds of the Series 2023 Bonds will be used to (1) fund a portion of the costs of the New SLC, (2) fund
capitalized interest, (3) fund a deposit to the Common Debt Service Reserve Fund, and (4) pay the costs of
issuance of the Series 2023 Bonds. The Series 2023 Bonds are special limited obligations of the City, secured by
a pledge of Net Revenues derived by the Department from the operation of the Airport System.
Rate Covenant under Master Indenture
The City is obligated under the Master Indenture, to establish, fix, prescribe and collect rates, tolls, fees, rentals
and charges in connection with the operation of the Airport System and for services rendered in connection
therewith, so that during each Fiscal Year (FY) the Net Revenues, together with any Transfer from the Rolling
Coverage Account, will be equal to at least 125% of Annual Debt Service on the Outstanding Bonds for such FY.
In addition, the City has covenanted, while any Bonds are Outstanding, to establish, fix, prescribe, and collect
rates, tolls, fees, rentals and charges in connection with the operation of the Airport System and for services
rendered in connection therewith, so that Revenues in each FY will be at least equal to the following amounts: (i)
Operation and Maintenance Expenses of the Airport System due and payable during such FY; (ii) the Annual Debt
Service on any Outstanding Bonds required to be funded by the City in such FY as required by the Master
Indenture or any Supplemental Indenture with respect to the Outstanding Bonds; (iii) the required deposits to the
Common Debt Service Reserve Fund or any Series Debt Service Reserve Fund which may be established by a
Supplemental Indenture; (iv) the reimbursement owed to any Credit Provider or Liquidity Provider as required by a
Supplemental Indenture; (v) the interest on and principal of any indebtedness of the Department required to be
funded during such FY, other than for Outstanding Bonds, but including Subordinate Obligations; and (vi) funding
of any debt service reserve funds created with respect to any indebtedness of the Department, other than
Outstanding Bonds, but including Subordinate Obligations.
Report of the Airport Consultant
In our preparation of this independent Report, we evaluated the ability of the Department to generate Revenues
from operation of the Airport System sufficient to meet the funding requirements and obligations established by
the Master Indenture during the projection period of FY 2023 through FY 2030. The following provides an
overview of the primary findings and conclusions contained in the Report.
Role of the Airport
The Airport serves two distinct roles for passenger air transportation: origin-destination (O&D), for passengers
beginning or ending their trip at the Airport, and as Delta’s primary connecting hub for the inter-mountain region
and the western U.S. Based on preliminary data for calendar year (CY) 2021, the Airport was classified by the
Federal Aviation Administration (FAA) as a Large Hub facility based upon its share of nationwide enplaned
passengers. Based on data from the FAA, approximately 10.8 million enplaned passengers boarded aircraft at the
Airport in CY 2021, ranking the Airport 20th in the U.S. The Airport has a diverse, stable base of air carriers. Four
of the U.S. network airlines along with two low-cost carriers (LCCs) and one ultra-low-cost carrier are Signatory
Airlines at the Airport. The Airport serves a large and growing O&D market. Per the U.S. Department of
Transportation in FY 2022, 59.7% of the Airport’s enplaned passengers were O&D. The Airport is also a primary
connecting hub airport for Delta. Delta accounted for 73.4% of enplaned passengers at the Airport in FY 2022
consisting of both O&D and connecting passengers (49.2% O&D and 50.8% connecting).
Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport| v
Economic Base for Air Traffic
The Airport is the primary commercial air service facility serving the Salt Lake City metropolitan area and the
surrounding region and is located far from other comparable airports. The geographical region that serves as an
airport’s primary air service catchment area can be referred to as its ‘Air Service Area.’ For the purposes of this
Report, the Airport’s Air Service Area is defined as the Salt Lake City-Provo-Orem Combined Statistical Area
(CSA), which includes the following 10 counties in Utah: Box Elder, Davis, Juab, Morgan, Salt Lake City, Summit,
Tooele, Utah, Wasatch, and Weber. The Salt Lake City-Provo-Orem CSA is the 22nd most populated CSA in the
U.S., with approximately 2.75 million people, and comprised over 82% of the population of the State of Utah in CY
2021.
The Air Service Area’s economic strength is evaluated in Chapter 1 of this Report. The Air Service Area has
historically exhibited more favorable trends in population growth, educational attainment, employment, and
household income than the U.S., and these trends are projected to continue.
The economy in the Air Service Area is also connected to visitors to the region, including both leisure and
business travelers. The Air Service Area is in relatively close proximity to many national parks (including the
Mighty 5),1 state parks, and ski resorts that offer visitors unique and exceptional activities in an open and outdoor
natural setting more conducive to restrictions in place during pandemics. Many of these activities were as popular
as ever during the COVID-19 pandemic.
While, overall, the associated impacts and restrictions resulting from the COVID-19 pandemic have negatively
affected the regional economy, tourism, conventions, and events over the past few years, the Air Service Area has
fared better than the national economy. It is anticipated that the economy will continue its recovery as the spread
of COVID-19 is further controlled, which will further stimulate demand for air travel. More information on the
economic base for air transportation is contained in Chapter 1.
Air Service and Air Traffic Analysis
Prior to the impacts associated with the COVID-19 pandemic, between FY 2012 and FY 2019, total enplaned
passengers at the Airport increased from approximately 10.1 million to approximately 13.1 million, an overall
compound annual growth rate (CAGR) of approximately 3.7% for this period. The last few months of FY 2020
were significantly impacted by the pandemic and passenger traffic declined precipitously. In March 2020,
passengers were down 49.2% as compared to March 2019 and decreased to a low of 91.9% fewer passengers in
April 2020 as compared to April 2019. In May 2020 and June 2020, enplaned passenger counts started to recover
as they were down 85.8% and 75.9%, respectively from the same months in 2019. For the entire FY 2020,
enplaned passenger counts decreased by 22.9% from FY 2019 to 10.1 million enplaned passengers. In FY 2022,
there were 12.8 million enplaned passengers at the Airport, which is about 98% of FY 2019 levels.
1 Mighty 5 includes Arches, Bryce Canyon, Canyonlands, Capitol Reef, and Zion.
Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
vi | Landrum & Brown
Figure 1 depicts the impacts associated with the COVID-19 pandemic on passenger checkpoint throughput at
both the Airport and for the overall U.S based on data from the TSA. This figure presents the recovery trend for
passenger checkpoint throughput as a percent of 2019 levels, which tracks closely to O&D passengers. As
shown, the impact to the Airport’s passenger checkpoint throughput tracked closely with the nationwide trend
early in the pandemic, decreasing to an unprecedented trough of around -91.1% of the prior year’s levels in April
2020. Starting in May 2020, TSA checkpoint throughput for the Airport and the U.S. started to recover. Recovery
of passenger counts for the Airport has consistently been higher than for U.S. airports as a whole. The Airport
exceeded monthly 2019 levels for the first time since the beginning of the pandemic in April 2022 when it
enplaned 107% of the enplanements compared to April 2019. In January 2023, the Airport had 105.5% of January
2019 TSA checkpoint throughput levels, while TSA’s nationwide throughput for January 2023 was at 95.1% of
January 2019 throughput. While connecting traffic at the Airport has not yet fully recovered, it is also showing
stronger recovery than other hubs. In FY 2023, connecting passengers were approximately 94.8% of FY 2019
levels.
Figure 1 Comparison of Airport and U.S. Monthly TSA Checkpoint Throughput
(January 2020 – January 2023)
Sources: Salt Lake City Department of Airports, accessed March 2023. Transportation Security Administration, accessed
March 2023.
105.5%
95.1%
WHO declared the
COVID-19 outbreak a
global pandemic on
March 11, 2020
0%
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Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-22 May-22 Sep-22 Jan-23
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Salt Lake City International Airport United States
Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport| vii
A number of standard industry forecasting techniques were considered in order to project enplaned passengers
such as econometric regression modeling, trend analysis, market share, and time series. Landrum & Brown has
determined that, with respect to the Airport, econometric regression models were the most appropriate forecasting
method to project enplaned passengers at the Airport. Econometric regression modeling quantifies the
relationship between enplaned passengers and key socioeconomic variables. This methodology recognizes that
the key independent variables will change over time and assumes that their fundamental relationships with the
dependent variables will remain.
Through the testing of multiple sets of independent variables, two univariate linear models, one for domestic O&D
and the other for international enplaned passengers, were selected to project enplaned passengers at the Airport.
The domestic O&D model used historical O&D enplaned passenger data from FY 2002 through FY 2019 while the
international model used enplaned passenger data from FY 2012 through FY 2019 and the Air Service Area’s
Gross Regional Product (GRP) per capita. These models exhibit strong regression statistics when compared to
models with other combinations of independent variables. Domestic connecting passengers are expected to
continue to recover back to FY 2019 levels as a percentage of the total domestic enplaned passengers through
FY 2027. After FY 2027, the percentage of enplaned passengers connecting through the Airport was assumed to
remain constant. These models and assumptions were used to project enplaned passengers through FY 2030.
Based on models and the set of assumptions above, total enplaned passengers are projected to increase at a
CAGR of 3.3% for the period of 2022 through 2030. The result is that enplaned passengers are projected to
increase from 12.8 million in FY 2022 to 16.6 million in FY 2030. The sensitivity projection used the same models
developed under the base case but assumed a 10% reduction in the growth in the economic forecasts and
assumed that domestic connecting passengers would only recover to 40% of the total domestic passengers,
down from 41.7% assumed in the base case. Based on models and the set of assumptions above, total enplaned
passengers are projected to increase at a CAGR of 2.7% for the period of FY 2022 through FY 2030. For
additional details on the projections of air traffic, please refer to Chapter 2 herein. Table 1 presents the baseline
and sensitivity scenario enplaned passenger projections.
Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
viii | Landrum & Brown
Table 1 Enplaned Passengers Projections
Fiscal Year
Baseline Scenario Sensitivity Scenario
Enplaned
Passengers
(in thousands) Percent of FY 2019
Enplaned
Passengers
(in thousands) Percent of FY 2019
FY 2018 Actual 12,420 94.9% 12,420 94.9%
FY 2019 Actual 13,090 100.0% 13,090 100.0%
FY 2020 Actual 10,096 77.1% 10,096 77.1%
FY 2021 Actual 7,710 58.9% 7,710 58.9%
FY 2022 Actual 12,802 97.8% 12,802 97.8%
FY 2023 Estimate 13,258 101.3% 13,258 101.3%
FY 2024 13,762 105.1% 13,632 104.1%
FY 2025 14,276 109.1% 14,007 107.0%
FY 2026 14,806 113.1% 14,386 109.9%
FY 2027 15,351 117.3% 14,769 112.8%
FY 2028 15,749 120.3% 15,115 115.5%
FY 2029 16,150 123.4% 15,463 118.1%
FY 2030 16,555 126.5% 15,813 120.8%
Range Average Annual Growth Rate
FY 2019-22 -0.7%
FY 2022-30 3.3% 2.7%
FY 2023-30 3.2% 2.5%
Note: These projections are based on current expectations and information and are not intended as a representation of
facts or guarantee of results.
Sources: Salt Lake City Department of Airports (actual data); L&B (estimated and projected data).
Capital Improvement Program
The New SLC: The New SLC consists of both the TRP and NCP as described below:
The Terminal Redevelopment Program: The TRP has completely replaced and rebuilt the Airport’s
landside and terminal facilities and is currently replacing its airside concourse facilities over the next few
years in conjunction with the NCP. The western portion and initial five gates on the eastern portion of the
airside concourse (Concourse A) were opened in September 2020 and May 2023, respectively, and are
operational. The remaining portions of Concourse A are expected to open in October 2023. The TRP has
been funded, in part, with proceeds of the Existing Bonds, and is also intended to be funded, in part, with
proceeds of the Series 2023 Bonds and additional Bonds along with other funding sources to be
described later in this Report. The capital and operating costs associated with the TRP have been
included in the financial analysis in this Report and are further described in Chapter 4.
Report of the Airport Consultant Salt Lake City Department of Airports
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Airport Revenue Bonds, Series 2023
Salt Lake City International Airport| ix
The North Concourse Program: The NCP is also currently under construction and includes the
development of a midfield airside concourse (Concourse B) to the north of the new airside concourse to
be developed simultaneously with the TRP (i.e., Concourse A). The western portion of Concourse B
opened in October 2020 and is currently operational. An additional nine gates on the eastern portion of
Concourse B are anticipated to be opened during the fourth quarter of 2024 with full operation of
Concourse B by the fourth quarter of 2025. The fourth phase is anticipated to open five gates on the
eastern portion of Concourse B in January 2026 and 11 gates in January 2027. The NCP has been
funded, in part, with proceeds of the Existing Bonds, and is also intended to be funded, in part, with
proceeds of the Series 2023 Bonds and additional Bonds along with other funding sources to be
described later. The capital and operating costs associated with the NCP have been included in the
financial analysis of this Report and are further described in Chapter 4.
Other Capital Projects: These projects are in addition to the elements of the New SLC and are the other
Airport System capital projects that currently are anticipated by the Department to be undertaken over the
projection period, or from FY 2023 through FY 2030. Such projects are referred to in this Report as the
‘Other Capital Projects.’ The estimated capital funding and operating costs, if any, and estimated revenue
impacts, if any, associated with the Other Capital Projects have also been included as part of the financial
analysis in this Report.
The New SLC, including the increased cost for the NCP as described above, is estimated to cost approximately
$5.13 billion, including design, engineering, construction, escalation for inflation, and contingency amounts, but
excluding financing costs. Sources of funding for the New SLC are presented in Exhibit A of this Report.
Approximately $3.61 billion of project costs have already been incurred through January 2023. Proceeds of the
Existing Bonds have funded and continue to fund portions of the New SLC and proceeds of the planned Series
2023 Bonds and proceeds of additional Bonds are also planned to fund a portion of the New SLC.
Other Capital Projects currently anticipated by the Department to be undertaken and/or completed during the
projection period are also shown in Exhibit A. Preliminary cost estimates for the Other Capital Projects total
approximately $519 million for the period of FY 2023 through FY 2030. It should be noted that certain capital
projects included in Other Capital Projects could potentially be deferred or not otherwise undertaken by the
Department during the projection period depending on circumstances such as aviation demand levels, availability
of project funding, etc.
Financial Analysis
L&B evaluated the ability of the Airport System to generate Net Revenues sufficient to meet the funding
requirements and obligations established by the Master Indenture during the projection period of FY 2023 through
FY 2030. Per our analysis, the Department is projected to produce sufficient Net Revenues, which, will at least
equal 125% of debt service on the Existing Bonds, the Series 2023 Bonds, and projected future additional Bonds.
The Department is projected to meet its requirements and obligations established by the Master Indenture and
maintain airline cost per enplaned passenger (CPE) levels generally in-line with other large hubs in the western
U.S. Table 2 below presents projections of debt service coverage ratios and airline CPE. Please refer to
Section 4.10 of this Report for financial results related to the slower recovery enplaned passenger projection.
Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
x | Landrum & Brown
Table 2 Financial Results Summary [TO BE PROVIDED]
Fiscal
Year
Baseline Sensitivity Scenario
Airline
CPE
Airline CPE
(FY23$)
Debt Service
Coverage Airline
CPE
Airline CPE
(FY23$)
Debt Service
Coverage
2022 (Actual)
$7.43 2.45
2023 $7.65 2.14
2024 $11.83 1.86
2025 $18.37 1.85
2026 $19.32 1.71
2027 $19.85 1.68
2028 $20.49 1.66
2029 $20.23 1.67
2030 $19.88 1.68
Notes: These projections are based on current expectations and information and is not intended as a representation of
facts or a guarantee of results. An inflation rate of 3% was assumed for the purposes of calculating results in FY
2023 dollars.
Source: Prepared by Landrum & Brown, Inc., April 2023.
L&B prepared the aviation activity and financial projections included in this Report along with various underlying
assumptions. In preparing our findings and conclusions, L&B has relied upon the accuracy and completeness of
certain assumptions, financial data, and other data provided to it by the referenced sources, without independent
verification; however, L&B has reviewed the projections and assumptions with the Department and has no reason
to believe such assumptions and data are materially incorrect.
The techniques and methodologies used in preparing this Report are consistent with industry practices for similar
studies in connection with airport revenue bond sales. Although L&B believes that the approach and assumptions
used are reasonable and provide an appropriate basis for the financial projections, any projection is subject to
uncertainties. Inevitably, some assumptions used to derive the projection contained herein will not be realized,
and unforeseeable events may occur. The actual financial results achieved will vary from those projected, and
such variations could be material. We have no responsibility to update this Report for events and/or
circumstances occurring after the date of this Report.
Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport| xi
L&B is not registered with the U.S. Securities & Exchange Commission as a municipal advisor, is not acting as a
municipal advisor, and does not assume any fiduciary duties or provide advisory services as described in Section
15B of the Securities Exchange Act of 1934 or otherwise. L&B does not make recommendations or advice
regarding any action to be taken by our clients with respect to any prospective, new, or existing municipal financial
products or issuance of municipal securities including with respect to the structure, timing, terms or other similar
matters concerning municipal financial products or the issuance of municipal securities.
L&B, in association with Airmac LLC, appreciates this opportunity to serve as the Department’s Airport Consultant
for this proposed financing.
Sincerely,
Landrum & Brown, Incorporated
Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
xii | Landrum & Brown
Contents Page
1 Role of the Airport and Economic Base for Air Traffic 1
1.1 Role of the Airport 1
1.1.1 National Role 1
1.1.2 Regional Role 3
1.1.3 Role as a Hub for Delta Air Lines 5
1.2 Socioeconomic Base for Air Traffic 7
1.2.1 Population 7
1.2.2 Employment 13
1.2.3 Income 17
1.2.4 Gross Domestic/Regional Product 19
1.2.5 Regional Tourism and Visitors 20
1.2.6 Summary 23
2 Air Service and Air Traffic Analysis 24
2.1 Air Service at the Airport 24
2.1.1 Airlines Operating at the Airport 24
2.1.2 Current Nonstop Service 27
2.1.3 Origin and Destination Markets 27
2.1.4 Airline Revenue Performance at the Airport 31
2.1.5 Delta Air Lines Operations at the Airport 32
2.2 Air Traffic Activity and Trends 42
2.2.1 Enplaned Passengers 42
2.2.2 Aircraft Operations 46
2.2.3 Aircraft Landed Weight 49
2.3 Key Factors Affecting Air Traffic Demand 52
2.3.1 The COVID-19 Pandemic 52
2.3.2 Economic Conditions and Events 52
2.3.3 The U.S. Airline Industry 56
2.3.4 Pilot Shortage 59
2.3.5 Aircraft Shortage 60
2.3.6 Aviation Fuel 60
2.3.7 Aviation Security 62
2.3.8 National Air Traffic Capacity 62
2.4 Air Traffic Activity Projections 62
2.4.1 Projection Assumptions 63
2.4.2 Enplaned Passengers Projection 63
2.4.3 Aircraft Landed Weight Projection 66
2.5 Enplaned Passenger Sensitivity Projection 67
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3 Airport Facilities and Capital Improvement Program 68
3.1 Existing Airport Facilities 68
3.1.1 Airport History 69
3.1.2 Airfield Facilities 69
3.1.3 Terminal Facilities 70
3.1.4 Public Parking Facilities 72
3.1.5 Rental Car Facilities 72
3.1.6 Transportation Network Companies 73
3.1.7 Ancillary Facilities 73
3.2 The Auxiliary Airports 74
3.3 Summary of Capital Projects 75
3.4 The New SLC 76
3.4.1 The Terminal Redevelopment Program 76
3.4.2 The North Concourse Program 79
3.4.3 New SLC Aircraft Gate Positions 80
3.4.4 The New SLC Program Management Team 81
3.5 Other Capital Projects 82
3.5.1 Financial Impact for Other Capital Projects 82
3.6 Plan of Finance 83
3.6.1 Federal, State and Other Grants 83
3.6.2 Passenger Facility Charge Revenues 83
3.6.3 Department Funds 84
3.6.4 Existing Bonds, Series 2023 Bonds, and Future Bonds 84
3.6.5 Customer Facility Charges 85
4 Financial Framework and Analysis 86
4.1 Airport Governing Body 86
4.2 Management Structure 86
4.3 Financial Structure 87
4.3.1 Accounting Structure 87
4.3.2 Master Indenture 89
4.3.3 Subordinate Indenture 93
4.3.4 Airline Use Agreement 95
4.3.5 Other Principal Business Agreements 98
4.3.6 CARES Act Grant Assistance 100
4.3.7 Coronavirus Response and Relief Supplemental Appropriation Act 100
4.3.8 American Rescue Plan Act 100
4.4 Debt Service 101
4.5 Operating Expenses 103
4.6 Non-Airline Revenues 105
4.6.1 Auto Parking 106
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4.6.2 Car Rental 107
4.6.3 Terminal Concessions 107
4.6.4 Other 107
4.7 Airline Revenues 107
4.7.1 Landing Fees 108
4.7.2 Terminal Rents 108
4.7.3 Revenue Share 108
4.7.4 Signatory Airline Cost per Enplaned Passenger 108
4.8 Application of Airport Revenues 109
4.9 Net Revenues and Debt Service Coverage 109
4.10 Sensitivity Scenario Financial Analysis [TO BE PROVIDED] 110
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List of Tables Page
TABLE 1-1 U.S. LARGE HUB AIRPORTS ENPLANED PASSENGER RANKINGS (RANKED
BASED ON CY 2021) 2
TABLE 1-2 POPULATION (CY 2012 AND CY 2030) 9
TABLE 1-3 TOP EMPLOYERS IN UTAH (CY 2021) 16
TABLE 1-4 PASSENGER DEMAND FORECAST VARIABLES (CY 2021 – CY 2030) 23
TABLE 2-1 AIRLINES SERVING THE AIRPORT (AS OF MARCH 2023) 25
TABLE 2-2 HISTORICAL AIRPORT ENPLANED PASSENGER MARKET SHARE (FY 2018 –
FY 2022) 26
TABLE 2-3 TOP-25 DOMESTIC O&D MARKETS FROM THE AIRPORT (SORTED BASED ON
YE SEPTEMBER 2022 O&D ENPLANED PASSENGERS) 30
TABLE 2-4 KEY AIRLINE REVENUE METRICS AT THE AIRPORT (YE MARCH 2020 VS. YE
SEPTEMBER 2022) 32
TABLE 2-5 DELTA’S TOP 10 AIRPORTS BASED ON SCHEDULED DEPARTING SEATS (YE
MARCH 2018, YE MARCH 2020, AND YE MARCH 2023) 33
TABLE 2-6 DELTA’S TOP TEN DOMESTIC O&D MARKETS BASED ON ESTIMATED
REVENUE (YE SEPTEMBER 2022) 33
TABLE 2-7 DELTA CONNECTING PASSENGERS BY HUB BY REGION (YE SEPTEMBER
2022) 37
TABLE 2-8 DELTA TOP 25 AIRPORTS WITH PASSENGERS CONNECTING AT WEST COAST
HUBS (YE SEPTEMBER 2022) 40
TABLE 2-9 HISTORICAL ENPLANED PASSENGERS (FY 2012 – FY 2022 AND FY 2023
YEAR-TO-DATE) 43
TABLE 2-10 HISTORICAL AIRCRAFT OPERATIONS (FY 2012 – FY 2022 AND FY 2023 YEAR-
TO-DATE) 47
TABLE 2-11 HISTORICAL LANDED WEIGHT IN THOUSAND-POUND UNITS (FY 2012 – FY
2022 AND FY 2023 YEAR-TO-DATE) 50
TABLE 2-12 ENPLANED PASSENGER PROJECTION (FY 2018 – FY 2030) 65
TABLE 2-13 LANDED WEIGHT PROJECTION (FY 2018 – FY 2030) 66
TABLE 2-14 ENPLANED PASSENGER SENSITIVITY PROJECTION (FY 2018 – FY 2030) 67
TABLE 3-1 AIRCRAFT GATE USE AT THE AIRPORT (AS OF MAY 2023) 72
TABLE 3-2 TRP PROJECT COSTS BY ELEMENT (THOUSANDS OF DOLLARS) 77
TABLE 3-3 NCP PROJECT COSTS BY ELEMENT (THOUSANDS OF DOLLARS) 80
TABLE 3-4 PLANNED AIRCRAFT PARKING POSITIONS DURING THE NEW SLC
CONSTRUCTION 81
TABLE 4-1 SUMMARY OF FEDERAL FUNDING APPLICATION BY FISCAL YEAR (DOLLARS
IN MILLIONS) 101
TABLE 4-2 OUTSTANDING BONDS, SERIES 2023 BONDS AND FUTURE BONDS
ESTIMATED SOURCES AND USES (DOLLARS IN THOUSANDS) 102
TABLE 4-3 ASSUMPTIONS FOR THE SERIES 2023 BONDS AND FUTURE BONDS
(DOLLARS IN MILLIONS) 102
TABLE 4-4 HISTORICAL OPERATING EXPENSES AND CAPITAL OUTLAYS (DOLLARS IN
MILLIONS)1 103
TABLE 4-5 HISTORICAL AIRPORT NON-AIRLINE REVENUES (DOLLARS IN MILLIONS)1 105
TABLE 4-6 PUBLIC PARKING RATES AT THE AIRPORT (DAILY MAXIMUM RATES) 106
TABLE 4-7 DEBT SERVICE COVERAGE AND PASSENGER AIRLINE CPE PROJECTIONS 110
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TABLE 4-8 SENSITIVITY ANALYSIS RESULTS: DEBT SERVICE COVERAGE AND AIRLINE
CPE 111
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List of Figures Page
FIGURE 1-1 AIR SERVICE AREA AND PROXIMITY TO OTHER AIRPORTS 4
FIGURE 1-2 ENPLANED PASSENGER MARKET SHARE AT THE AIRPORT (FY 2022) 5
FIGURE 1-3 PERCENTAGE OF CONNECTING PASSENGERS FOR DELTA TRAFFIC ONLY AT
THE AIRPORT (FY 2011 – FY 2022) 6
FIGURE 1-4 POPULATION GROWTH IN U.S. CSAS WITH POPULATION IN EXCESS OF 1.5
MILLION 8
FIGURE 1-5 HISTORICAL AND FORECAST POPULATION TRENDS (CY 2012 – CY 2030) 10
FIGURE 1-6 AGE DISTRIBUTION (CY 2021) 11
FIGURE 1-7 EDUCATIONAL ATTAINMENT (CY 2021) 12
FIGURE 1-8 HISTORICAL AND FORECAST EMPLOYMENT TRENDS (CY 2012 – CY 2030) 13
FIGURE 1-9 UNEMPLOYMENT RATES (JANUARY 2008 – DECEMBER 2022) 14
FIGURE 1-10 EMPLOYMENT BY INDUSTRY SECTOR (CY 2021) 15
FIGURE 1-11 HISTORICAL AND FORECAST PER CAPITA PERSONAL INCOME TRENDS (CY
2012 – CY 2030) 18
FIGURE 1-12 DISTRIBUTION OF HOUSEHOLD INCOME (CY 2021) 19
FIGURE 1-13 HISTORICAL PER CAPITA GROSS DOMESTIC/REGIONAL PRODUCT TRENDS
(CY 2012 – CY 2030) 20
FIGURE 1-14 PARK VISITORS TO THE MIGHTY 5 (JANUARY 2019 – DECEMBER 2022) 21
FIGURE 2-1 NONSTOP DOMESTIC DESTINATIONS AT THE AIRPORT 28
FIGURE 2-2 NONSTOP INTERNATIONAL DESTINATIONS AT THE AIRPORT 29
FIGURE 2-3 DELTA’S PERCENT OF O&D ENPLANED PASSENGERS AT INTERIOR
CONNECTING HUBS (2018 Q4 – 2022 Q3) 34
FIGURE 2-4 UNITED STATES REGIONS 35
FIGURE 2-5 TRAFFIC FLOWS THROUGH DELTA CONNECTING HUBS (YE SEPTEMBER
2022) 36
FIGURE 2-6 DELTA’S TOP 25 CONNECTING MARKETS AT THE AIRPORT, LAX, AND SEA
(YE SEPTEMBER 2022) 39
FIGURE 2-7 DELTA’S CONNECTING ENPLANED PASSENGERS AT INTERIOR CONNECTING
HUBS (FY 2015 – FY 2022) 41
FIGURE 2-8 MONTHLY ENPLANED PASSENGERS (MARCH 2019 – FEBRUARY 2023) 45
FIGURE 2-9 COMPARISON OF AIRPORT AND U.S. MONTHLY TSA CHECKPOINT
THROUGHPUT (JANUARY 2020 – JANUARY 2023) 46
FIGURE 2-10 MONTHLY AIRCRAFT OPERATIONS (MARCH 2019 – FEBRUARY 2023) 48
FIGURE 2-11 MONTHLY LANDED WEIGHT (MARCH 2019 – JANUARY 2023) 51
FIGURE 2-12 UNITED STATES ECONOMIC IMPACT OF THE COVID-19 PANDEMIC 53
FIGURE 2-13 U.S. AVIATION SYSTEM SHOCKS AND RECOVERIES (THROUGH OCTOBER
2022) 54
FIGURE 2-14 CONSUMER PRICE INDEX (JANUARY 2007 – JANUARY 2023) 55
FIGURE 2-15 MAJOR U.S. AIRLINE MERGERS OF THE 21ST CENTURY1 58
FIGURE 2-16 JET FUEL PRICES (JANUARY 2002 – DECEMBER 2024) 61
FIGURE 2-17 SCHEDULED DEPARTING SEATS AT THE AIRPORT 64
FIGURE 3-1 AIRPORT LAYOUT (AS OF DATE – SEE NOTE – TO BE UPDATED) 68
FIGURE 3-2 SLC TERMINAL COMPLEX 71
FIGURE 3-3 THE NEW SLC 78
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FIGURE 4-1 FLOW OF FUNDS 90
Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport | 1
1 Role of the Airport and Economic Base for Air Traffic
This chapter introduces the Salt Lake City International Airport (SLC or the Airport) and summarizes the role the
Airport serves in accommodating air traffic for the nation, the region, and as a primary connecting hub within Delta
Air Lines’ (Delta’s) network. This chapter also describes the Salt Lake City region’s socioeconomic base and its
ability to continue to support demand for air transportation.
1.1 Role of the Airport
The Airport is owned and operated by Salt Lake City, Utah (the City), with the support and advice of the Salt Lake
City Airport Board (Airport Advisory Board). The Department, a department of the City, is charged with operating
the Airport System, as defined herein. The Airport serves as the principal commercial service airport for the Salt
Lake City metropolitan region, the State of Utah, and portions of Colorado, Idaho, Nevada, and Wyoming.
1.1.1 National Role
The Airport has consistently been one of the largest 30 commercial passenger airports in the U.S in terms of
enplaned passengers. In calendar year (CY) 2019, the Airport had 12.8 million enplaned passengers, 23rd most in
the U.S. In CY 2020, enplaned passengers at the Airport decreased by 53.4% to 6.0 million primarily because of
the Coronavirus Disease 2019 (COVID-19) pandemic. In CY 2021, enplaned passengers at SLC increased to
10.8 million, approximately 84.1% of CY 2019 levels.2 Based on data from the Department for CY 2022, the
Airport had approximately 12.9 million enplaned passengers, which is a recovery back to CY 2019 levels. SLC’s
post-pandemic recovery in passenger traffic has been relatively more favorable than most of the largest airports in
the U.S. with the average large hub airport in CY 2021 being approximately 69% of CY 2019 passenger levels.
The Airport was the 5th fastest of all large hubs in terms of passenger recovery during this time. [Include CY 2022
data when available] As a result, SLC was able to move up in the rankings to 20th in terms of total enplaned
passengers in CY 2021. Based on its level of activity, the Airport is classified by the Federal Aviation
Administration (FAA) as one of 30 Large Hub facilities in the U.S.3 Table 1-1 provides the enplaned passenger
volume for Large Hub airports 4 in the U.S. for CY 2019 and CY 2021.
In addition to passenger operations, there is also a significant amount of air cargo processed at the Airport.
According to Airports Council International–North America (ACI-NA), 214,472 metric tons of air cargo, including
both freight and mail, were loaded and unloaded at the Airport in CY 2020. In CY 2021, 205,472 metric tons of air
cargo were loaded and unloaded at SLC which represented a 4.4% decrease from CY 2020. The Airport was
ranked as the 31st busiest cargo airport in the U.S. in CY 2021.
2 Enplaned passenger values are from the FAA’s , Air Carrier Activity Information System (ACAIS) and may not match the Airport’s reported
values.
3 The FAA classifies Large Hubs as those airports that each account for 1 percent or more of total U.S. passenger enplanements.
4 Large Hub facilities based on CY 2021 enplanements.
Salt Lake City Department of Airports Report of the Airport Consultant
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2 | Landrum & Brown
Table 1-1 U.S. Large Hub Airports Enplaned Passenger Rankings (Ranked based on CY 2021)
Rank City Airport
Hub Size Code
Enplaned Passengers (in 000s) Percent
Change CY 2021 CY 2019
1 Atlanta Hartsfield - Jackson Atlanta International Large ATL 36,676 53,506 -31.5%
2 Fort Worth Dallas-Fort Worth International Large DFW 30,005 35,779 -16.1%
3 Denver Denver International Large DEN 28,646 33,593 -14.7%
4 Chicago Chicago O'Hare International Large ORD 26,351 40,871 -35.5%
5 Los Angeles Los Angeles International Large LAX 23,663 42,939 -44.9%
6 Charlotte Charlotte/Douglas International Large CLT 20,901 24,200 -13.6%
7 Orlando Orlando International Large MCO 19,619 24,562 -20.1%
8 Las Vegas Harry Reid International Large LAS 19,160 24,728 -22.5%
9 Phoenix Phoenix Sky Harbor International Large PHX 18,940 22,434 -15.6%
10 Miami Miami International Large MIA 17,500 21,421 -18.3%
11 Seattle Seattle-Tacoma International Large SEA 17,430 25,002 -30.3%
12 Houston George Bush Intercontinental/Houston Large IAH 16,243 21,905 -25.8%
13 New York John F Kennedy International Large JFK 15,273 31,037 -50.8%
14 Newark Newark Liberty International Large EWR 14,514 23,161 -37.3%
15 Fort Lauderdale Fort Lauderdale/Hollywood International Large FLL 13,599 17,951 -24.2%
16 Minneapolis Minneapolis-St Paul International Large MSP 12,211 19,193 -36.4%
17 San Francisco San Francisco International Large SFO 11,725 27,779 -57.8%
18 Detroit Detroit Metro Wayne County Large DTW 11,518 18,143 -36.5%
19 Boston General Edward Lawrence Logan International Large BOS 10,910 20,699 -47.3%
20 Salt Lake City Salt Lake City International Large SLC 10,796 12,841 -15.9%
21 Philadelphia Philadelphia International Large PHL 9,820 16,006 -38.7%
22 Glen Burnie Baltimore/Washington International Large BWI 9,254 13,285 -30.3%
23 Tampa Tampa International Large TPA 8,847 10,979 -19.4%
24 San Diego San Diego International Large SAN 7,836 12,649 -38.0%
25 New York LaGuardia Large LGA 7,827 15,394 -49.2%
26 Chicago Chicago Midway International Large MDW 7,681 10,082 -23.8%
27 Nashville Nashville International Large BNA 7,594 8,936 -15.0%
28 Dulles Washington Dulles International Large IAD 7,228 11,884 -39.2%
29 Arlington Ronald Reagan Washington National Airport Large DCA 6,732 11,595 -41.9%
30 Austin Austin-Bergstrom International Airport Large AUS 6,666 8,507 -21.6%
Source: Federal Aviation Administration, Air Carrier Activity Information System (ACAIS), September 2022, accessed March 2023.
Report of the Airport Consultant Salt Lake City Department of Airports
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ACI-NA data indicated that the Airport had 276,730 aircraft operations 5 in CY 2020 (including all-cargo carrier
operations), down 19.7% from CY 2019. Aircraft operations at the top 30 airports in the U.S. decreased an
average of 30.5% over the same period. In CY 2021, aircraft operations at SLC increased 23.8% compared to an
average of 34.3% for the other airports in the top 25. The Airport’s moderately low decline and subsequent
recovery in aircraft operations during the COVID-19 pandemic has resulted in the Airport increasing its rank from
the 23rd busiest airport in the U.S. in CY 2019 to the 14th for CY 2021.
1.1.2 Regional Role
The Airport serves as the primary commercial service airport for the Salt Lake City metropolitan area and the
surrounding region. Origin and destination (O&D) passengers, or those that begin or end their travel at the Airport,
accounted for approximately 59.7% of passenger traffic at the Airport in Fiscal Year (FY)6 2022. The share of O&D
passengers at the Airport increased from prior years in FY 2022. For example, for the period of FY 2018 through
FY 2021, O&D passengers at the Airport averaged approximately 58% of total traffic. At this time, it is unclear if
the share of O&D traffic relative to all passenger traffic will return to historical levels and whether more recent
percentages of O&D traffic are temporary as a result of impacts associated with the COVID-19 pandemic or other
factors such as reductions in airline capacity due to pilot and staffing shortages, aircraft availability, etc. Delta
handles the vast majority of the connecting passengers (88.2% in FY 2022) at the Airport. More information on the
Airport’s O&D market and Delta’s operations at the Airport is presented in Chapter 2.
The geographic region that serves as an airport’s primary catchment area is referred to as its “Air Service Area”.
For the purposes of this report, the Airport’s Air Service Area is defined as the Salt Lake City-Provo-Orem
Combined Statistical Area (CSA), which includes the following ten counties in Utah: Box Elder, Davis, Juab,
Morgan, Salt Lake, Summit, Tooele, Utah, Wasatch, and Weber.7 The Salt Lake City-Provo-Orem CSA was the
22nd most populous CSA in the nation in CY 2021 with approximately 2.75 million people and accounted for
approximately 82.3% of the entire population of Utah.
In many cases, an airport’s air service area can extend beyond its ‘primary’ Air Service Area depending on the
location of other population centers and availability of other commercial service airports. However, it is generally
the economic strength of the primary air service area that provides the principal demand for O&D air travel. In the
case of the Airport, its secondary air service area generally consists of the remainder of the State and portions of
Colorado, Idaho, Nevada, and Wyoming within about 300 driving miles from the Airport.
The Air Service Area is largely isolated from competing airport facilities and, hence, the Airport has limited, if any,
competition for air service. Las Vegas’s Harry Reid International Airport (LAS) (formerly McCarran International
Airport) is the closest large hub airport and is over 400 driving miles from the Airport. Denver International Airport
(DEN), the next closest large hub, is over 500 driving miles from the Airport. Boise Airport in Idaho is over 300
driving miles from the Airport; however, it is a smaller facility and classified as a medium hub by the FAA.8
Figure 1-1 illustrates the Airport’s location in relation to its Air Service Area as well as the other commercial
airports within the region.
5 An aircraft operation includes the landing, takeoff, or touch-and-go procedure by an aircraft on the runway at an airport.
6 The Airport’s Fiscal Year is the 12-month period ending June 30.
7 Executive Office of the President: Office of Management and Budget, Revised Delineations of Metropolitan Statistical Areas, and
Combined Statistical Areas, and Guidance on Uses of the Delineations of These Areas, March 6, 2020.
8 The FAA classifies Medium Hub airports as those serving at least 0.25% but less than 1.00% of annual U.S. passenger boardings.
Salt Lake City Department of Airports Report of the Airport Consultant
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4 | Landrum & Brown
Figure 1-1 Air Service Area and Proximity to Other Airports
Airport Code
FAA
Airport
Category
Driving
Distance from
Downtown
Salt Lake City
Nonstop
Destinations
(April 2023)
CY 2022
Enplaned
Passengers
(000s)
Salt Lake City International Airport SLC Large 8 miles 90 12,871
Boise Airport BOI Medium 337 miles 23 2,248
Harry Reid International Airport LAS Large 428 miles 148 25,818
Reno-Tahoe International Airport RNO Medium 520 miles 16 2,155
Denver International Airport DEN Large 524 miles 197 34,644
Albuquerque International Sunport ABQ Medium 602 miles 25 2,374
Phoenix Sky Harbor International Airport PHX Large 666 miles 141 22,296
Sources: Salt Lake City Department of Airports (for SLC); Individual Airport Websites, accessed March 2023. Cirium, Diio
Mi, Schedule – Dynamic Table, accessed April 2023
Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
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Salt Lake City International Airport | 5
1.1.3 Role as a Hub for Delta Air Lines
The Airport has served as a hub for Delta for many decades. Prior to the impacts associated with the global
COVID-19 pandemic, Delta’s enplaned passengers increased over the years, averaging 2.2% growth per annum
from FY 2011 through FY 2019. Delta’s enplaned passenger market share, including its regional affiliates,
comprised approximately 73.4% of enplaned passengers at the Airport in FY 2022. Figure 1-2 presents the
Airport’s enplaned passenger market share for FY 2022. As shown, Delta has the largest passenger market share
at the Airport.
Figure 1-2 Enplaned Passenger Market Share at the Airport (FY 2022)
Notes: Regional affiliates, as applicable, have been included with their appropriate network partner. Amounts may not
add because of rounding.
Source: Salt Lake City Department of Airports, accessed March 2023.
73.4%
10.4%
5.4%
4.7%
2.3%
1.9%
1.7%
0.2%
0.0%
Mainline
57.5%
Regional
15.9%
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%
Delta Air Lines
Southwest Airlines
American Airlines
United Airlines
Alaska Airlines
JetBlue Airways
Frontier Airlines
Spirit Airlines
Other
Share of Enplaned Passengers
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6 | Landrum & Brown
While O&D passengers have experienced an overall increasing trend in recent years both as a percentage and in
absolute terms, a significant portion of Delta’s air traffic at the Airport is connecting passengers, or passengers
that have a scheduled stop at the Airport and transfer to another flight. In recent years, prior to the impacts of the
COVID-19 pandemic, the percentage of Delta’s traffic that is connecting traffic at the Airport, rather than O&D has
declined at the Airport. This decrease in connecting passenger percentage over this period, or a corresponding
increase in O&D passenger percentage for Delta, can be partly attributed to Delta business decisions and the
ongoing economic growth of the Air Service Area as local demand for air travel has generally been increasing.
Figure 1-3 presents the percentage of Delta traffic that was connecting passengers at the Airport from FY 2010
and through FY 2022. Delta’s operations at the Airport are described in more detail in Section 2.1.5 herein. As
described earlier, it is uncertain at this time whether recent trends in O&D and connecting traffic at the Airport are
permanent or are temporary.
Figure 1-3 Percentage of Connecting Passengers for Delta Traffic Only at the Airport (FY 2011 –
FY 2022)
Source: US DOT Reports DB1A; US DOT T100 Report, accessed via Cirium, Diio Mi, accessed March 2023.
64.3%63.3%62.1%60.7%62.7%62.1%59.8%57.4%54.6%54.2%52.9%55.1%50.8%0%
10%
20%
30%
40%
50%
60%
70%
FY
2010
FY
2011
FY
2012
FY
2013
FY
2014
FY
2015
FY
2016
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
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Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
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Salt Lake City International Airport | 7
1.2 Socioeconomic Base for Air Traffic
Generally, air travel demand at an airport is largely correlated with the demographic and economic characteristics
of the surrounding region. The economic strength of the Air Service Area has a major impact on the aviation
activity at the Airport since most of the Airport’s passenger demand is O&D. The following sections review current
economic trends and conditions in the Air Service Area and present data indicative of its capability to generate
demand for air transportation through the next several years.
Data for population, age distribution, educational attainment, income, and gross regional product (GRP) for the Air
Service Area are discussed below. Parallel data for the U.S. are also shown to provide a basis of comparison to
trends in the Air Service Area. Where available, historical data will be presented for the CY 2012 to CY 2022
period, which represents the most recent 10-year trend for historical data. Also, where available, data projections
through CY 2030 are included to be consistent with air traffic and financial projections presented later in this
Report.
1.2.1 Population
A growing population is a significant source of demand for air travel. According to the U.S. Census Bureau, 39 of
the 175 CSAs in the U.S. had an estimated population in excess of 1.5 million people in CY 2021, including the
Salt Lake City CSA , which is defined as the Air Service Area (ASA) for this Report.9 The Salt Lake City CSA has
been one of the fastest growing CSAs in the U.S. for more than a decade, but growth has accelerated in recent
years. For the five-year period of CY 2017 through CY 2021 (the latest data available), the population in the Salt
Lake City CSA has increased at a compound annual growth rate (CAGR) of 1.8%, the second fastest rate of
CSAs in excess of 1.5 million people. Figure 1-4 presents the CAGR for the period of CY 2017 through CY 2021
for population in the nation’s fastest growing CSAs. The Air Service Area’s population ranks 22nd among the
nation’s largest CSAs.
Table 1-2 provides CY 2012 and CY 2021 population data from Woods & Poole Economics, Inc (W&P). Between
CY 2012 and CY 2021, the population of the Air Service Area increased by 16.5% from approximately 2.4 million
to 2.7 million. Since CY 2012, the Air Service Area’s population has increased at a CAGR of 1.7%, the same as
Utah overall (1.7%) but significantly higher growth than that of the U.S. as a whole (0.6%).
9 U.S. Census Bureau, Metropolitan and Micropolitan Statistical Areas Population Totals and Components of Change: 2020-2021
Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
8 | Landrum & Brown
Figure 1-4 Population Growth in U.S. CSAs with Population in Excess of 1.5 Million
Sources: U.S. Census Bureau, Metropolitan and Micropolitan Statistical Areas Population Totals and Components of
Change: 2020-2021, Annual Resident Population Estimates and Estimated Components of Resident Population
Change for Metropolitan and Micropolitan Statistical Areas and Their Geographic Components: April 1, 2010 to
July 1, 2019, accessed March 2023.
2.0%
1.8%
1.8%
1.8%
1.7%
1.4%
1.4%
1.3%
1.3%
1.3%
1.1%
1.1%
1.0%
1.0%
1.0%
1.0%
0.9%
0.9%
0.8%
0.7%
0.7%
0.6%
0.6%
0.6%
0.6%
0.6%
0.6%
0.6%
0.6%
0.5%
0.2%
0.2%
0.1%
0.1%
0.0%
0.0%
0.0%
-0.2%
-0.3%
Jacksonville
Salt Lake City
Nashville
Orlando
Raleigh
Dallas
Charlotte
Las Vegas
Greenville
San Antonio
Atlanta
Houston
Oklahoma City
Sacramento
Indianapolis
Phoenix
Seattle
Denver
Minneapolis
Columbus
Kansas City
Portland
Philadelphia
Cincinnati
Greensboro
Virginia Beach
Boston
New York
Louisville
Washington
Detroit
Pittsburgh
Cleveland
Miami
St Louis
Milwaukee
Chicago
San Jose
Los Angeles
-0.5%0.0%0.5%1.0%1.5%2.0%2.5%
Population Growth
Compound Annual Growth Rate (CY 2017 -2021)
Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport | 9
Table 1-2 Population (CY 2012 and CY 2030)
Region
Population (In Thousands) CAGR
Actual Estimated Projection CY
2012-2021
CY
2021-2030 CY 2012 CY 2021 CY 2030 United States 314,281 331,894 352,070 0.6% 0.7%
Utah 2,861 3,338 3,747 1.7% 1.3%
Air Service Area 2,357 2,746 3,081 1.7% 1.3%
Salt Lake County, UT 1,068 1,186 1,303 1.2% 1.0%
Utah County, UT 542 685 800 2.6% 1.7%
Davis County, UT 317 367 415 1.7% 1.4%
Weber County, UT 236 267 290 1.4% 0.9%
Tooele County, UT 60 77 88 2.8% 1.5%
Box Elder County, UT 50 60 64 1.9% 0.8%
Summit County, UT 38 43 49 1.4% 1.4%
Wasatch County, UT 25 36 45 4.1% 2.4%
Morgan County, UT 10 13 15 2.9% 1.5%
Juab County, UT 10 12 13 1.9% 1.1%
Notes: CAGR = Compound annual growth rate.
Source: Woods & Poole Economics, Inc., 2022 Complete Economic and Demographic Data Source, June 2022, accessed
March 2023.
Figure 1-5 depicts the depicts historical and forecasted population indexed to CY 2012 for the Air
Service Area and for the U.S. overall. Population growth in the Air Service Area has continually
outpaced the nation. According to W&P, population in the Air Service Area is forecast to increase from
2.7 million in CY 2021 (estimated) to 3.1 million in CY 2030, resulting in a CAGR of 1.3%, which is
almost double the rate forecast for national population.
Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
10 | Landrum & Brown
Figure 1-5 Historical and Forecast Population Trends (CY 2012 – CY 2030)
Source: Woods & Poole Economics, Inc., 2022 Complete Economic and Demographic Data Source, June 2022, accessed
March 2023.
1.2.1.1 Components of Population Growth
A high birth rate combined with a low mortality rate has historically been the main driver for population growth in
the region. In CY 2021, there were more than 37,600 births compared to about 17,300 deaths in the Air Service
Area, which as a result, led to an increase in population of more than 20,300 people related to natural growth. The
Air Service Area has historically had one of the highest birth rates in the U.S. In CY 2021, the Air Service Area had
birth rate of 13.7 per 1,000 residents which was the ninth highest rate of all CSAs in the U.S. and it is the highest
rate of any CSA with a population in excess of one million.
In CY 2011, the birth rate was 18.6 per 1,000 residents, significantly higher than the rate in CY 2021. However,
population growth has remained strong as net migration has increased in recent years. In CY 2011, the Air
Service Area only added about 2,300 people as a result of migration but in CY 2021 there was about an additional
17,100 added to the Air Service Area population as a result of migration. Utah has experienced net migration in 13
of the past 32 years and in the past two years, migration has driven population growth.
Population in the ASA has and is
projected to grow at a significantly
faster rate than the rest of the nation
Forecast ►
80
90
100
110
120
130
140
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
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Salt Lake City International Airport | 11
1.2.1.2 Age Distribution
Demand for air travel varies by age group. It is assumed that people of working ages 10 from 25 to 64 account for a
higher share of air travel than older or younger people as they often traveled for business purposes and have
more disposable income available for leisure trips. Figure 1-6 presents the distribution of age groups among the
population for the Air Service Area and the U.S. Overall, the median age of the population for the Air Service Area
(31.4 years) is significantly lower than nationally (38.8 years). The Air Service Area’s share of population between
the working ages of 25 and 64 is currently somewhat lower than that of the U.S. Persons within the Air Service
Area between the ages of 25 and 64 accounted for 49.5% of the population as compared to 51.9% for the U.S.
While the share of working age population in the Air Service Area is somewhat lower than that of the U.S., it does
have a higher proportion of population in the younger working age range, or ages 24 to 46. This provides an
opportunity for the Air Service Area to maintain a robust working age population for years to come as the
population ages.
Figure 1-6 Age Distribution (CY 2021)
Note: Commonly, working age is defined as those people aged 15 to 64. However, for the purposes of this Report, a
narrower age range of 25 to 64 has been used to reflect the group of people most likely beyond secondary
education and more likely to be employed on a full-time basis.
Source: US Census Bureau, 2021: ACS 1-Year Estimates Data Profiles, accessed March 2023.
10 Commonly, working age is defined at those people aged 15 to 64. However, for the purposes of this Report, a narrower age range of 25
to 64 has been used to reflect the group of people most likely beyond secondary education and more likely to be employed on a full-time
basis.
0%
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3%
4%
5%
6%
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8%
9%
< 5 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85+
Young Age Working Age Seniors
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1.2.1.3 Educational Attainment
Consumer Expenditure Survey data from the U.S. Bureau of Labor Statistics show that people with a college
degree have, historically, generated a higher percentage of expenditures on air travel. Figure 1-7 presents the
share of educational attainment for persons aged 25 or older within the Air Service Area and the U.S. According to
the U.S. Census Bureau, 47.2% of the population aged 25 or older in the Air Service Area have a college degree
or higher. By comparison, only 43.8% of the population aged 25 or older in the U.S. have a college degree or
higher.
In CY 2021, there were nearly 225,000 persons enrolled in college or graduate school in the Air Service Area
which is equivalent to about 11.5% of the population over the age of 18 years old.11 In comparison, the U.S. had
approximately 21.2 million persons enrolled in college or graduate school in CY 2021 which equates to 8.2% of
the population over the age of 18 years old. Some of this disparity is due to the younger population in the Air
Service Area (those over the age of 25 are less likely to be currently attending college), but is also attributable to a
higher share of younger people attending college. In the Air Service Area, approximately 48.9% of the population
between 18 and 25 are enrolled in school compared to approximately 48.3% for the U.S.
Figure 1-7 Educational Attainment (CY 2021)
Source: US Census Bureau, 2021: ACS 1-Year Estimates Data Profiles, accessed March 2023.
11 US Census Bureau, 2021: ACS 1-Year Estimates Data Profiles.
47.2% of Air Service Area's population has
a college degree or higher as compared to
43.8% for the United States
0%10%20%30%40%50%60%70%80%90%100%
Air Service Area
United States
Percent of People 25 Years or Older
Advanced Degree Bachelor's Degree Associate Degree
Some College, No Degree High School Diploma or Equivalent Not a High School Graduate
Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
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Salt Lake City International Airport | 13
1.2.2 Employment
Growth in employment is an important indicator of the overall health of the local economy. Historically, changes in
population and employment tend to be closely correlated because people migrate in and out of areas largely
depending on their ability to find work. Figure 1-8 presents actual and forecast annual growth rates for
employment in the Air Service Area and the U.S. from CY 2012 through CY 2030. From CY 2012 through CY
2019, employment in the Air Service Area increased at a CAGR of 3.1% compared to 1.7% for U.S. as a whole. In
CY 2020, employment in the Air Service Area decreased by 1.2% as a direct result of the impacts associated with
the COVID-19 pandemic. The decline in employment was not as deep when compared to many other areas of the
U.S. In CY 2020, employment in the U.S. decreased by 5.4%. In CY 2021, there was a significant recovery in
employment both in the Air Service Area and the U.S. Employment in the Air Service Area increased by 5.0% in
CY 2021 which resulted the Air Service Area having more employed persons than it did in CY 2019, while
nationwide employment was still recovering in CY 2021. Future growth in employment is forecast to be higher in
the U.S. than the Air Service Area over the next few years while the U.S. is forecast to continue to recover from
the impacts associated with the COVID-19 pandemic; however, the ASA overall is forecast to have a higher long-
term growth rate in employment over the projection period.
Figure 1-8 Historical and Forecast Employment Trends (CY 2012 – CY 2030)
Source: Woods & Poole Economics, Inc., 2022 Complete Economic and Demographic Data Source, June 2022, accessed
March 2023.
Employment growth in
the Air Service Area is
forecast to outpace the
U.S. as a whole once
recovery from the
COVID-19 pandemic is
complete
Forecast ►
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
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1.2.2.1 Labor Force & Unemployment Rates
Unemployment rates are an indicator of economic health as rates usually decrease as economic activity in the
region grows. Figure 1-9 presents the historical unemployment rates for the Air Service Area and the U.S. As
shown, from CY 2008 through CY 2019, unemployment rates in the Air Service Area trended similar to the
national average but at a consistently more favorable rate. Primarily as a result of the Great Recession (generally
late CY 2007 to mid CY 2009) and its lingering impacts, unemployment for the Air Service Area peaked at 8.1% in
January 2010 as compared to the national unemployment peak of 10.6% in the same month. Total employment
during CY 2019 increased at a faster rate than population since the end of the Great Recession, resulting in
significant declines in unemployment rates during that time. However, since the impacts associated with the
COVID-19 pandemic occurred in the U.S. starting in March 2020, unemployment rates increased to historic levels
as a result of stay-at-home orders and companies hedging for potential losses. In April 2020, the unemployment
rate for the Air Service Area reached 9.9% compared to the national rate of 14.4%. Both the national
unemployment rate and the unemployment rate in the Air Service Area declined relatively rapidly from these
peaks over the next several months with the Air Service Area remaining well below national levels. In December
2022, the unemployment rate for the Air Service Area was 2.0%, which was significantly lower than that of the
U.S. at 3.3%.
Figure 1-9 Unemployment Rates (January 2008 – December 2022)
r
Sources: U.S. Department of Labor: Bureau of Labor Statistics, Labor Force Statistics from the Current Population Survey,
accessed March 2023.
National unemployment
rates originally peaked
in late 2009, early 2010
in the months following
the recession
Unemployment rates
reached historic levels
as COVID-19 results in
the shutdown of
businesses on a
national level
0%
2%
4%
6%
8%
10%
12%
14%
16%
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Report of the Airport Consultant Salt Lake City Department of Airports
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Salt Lake City International Airport | 15
1.2.2.2 Industry Sectors
Figure 1-10 presents employment by industry sector for the Air Service Area and the U.S for CY 2021. As shown,
the goods-producing sectors accounted for 13.8% of the jobs in the Air Service Area while nationally they
accounted for 12.8%. The service-providing sectors accounted for 86.2% of the jobs in the Air Service Area
compared to 87.2% nationally. The share of most of the sectors are similar between the Air Service Area and the
U.S. Some notable differences include a higher share of professional and financial services in the Air Service
Area, and a lower percentage of the education and health sector and the leisure and hospitality sector in the Air
Service Area. Overall, while there are certain differences is the distribution of industry sectors, it can be concluded
that the Air Service Area’s general industry composition is relatively close to that of the U.S.
Figure 1-10 Employment by Industry Sector (CY 2021)
Source: Woods & Poole Economics, Inc., 2022 Complete Economic and Demographic Data Source, June 2022, accessed
March 2023.
1.2.2.3 Major Employers
The top employers in Utah with more than 4,000 employees for CY 2021 are shown in Table 1-3. These
employers serve a diverse range of industries including but not limited to health care, education, government, and
retail.
Goods-Producing
13.8%Goods-Producing
12.8%
Service-Providing
86.2%
Service-Providing
87.2%
Other
7.1%Other
7.4%
Leisure and Hospitality
8.1%
Leisure and Hospitality
9.4%
Government
12.2%
Government
12.4%
Education
and Health
12.5%
Education
and Health
14.5%
Financial Activities
12.8%
Financial Activities
10.4%
Professional
Services
16.3%
Professional
Services
15.4%
Trade,
Transportation,
and Utilities
17.2%
Trade,
Transportation,
and Utilities
17.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Air Service Area United States
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Table 1-3 Top Employers in Utah (CY 2021)
Rank Company Name Industry
Average Annual
Employment
1 Intermountain Healthcare Health Care 20,000 +
2 University of Utah Higher Education 20,000 +
3 Wal -Mart Associates Warehouse Clubs/Supercenters 20,000 +
4 State of Utah State Government 20,000 +
5 Brigham Young University Higher Education 15,000-19,999
6 Hill Air Force Base Federal Government 10,000-14,999
7 Davis County School District Public Education 7,000-9,999
8 Smith's Food and Drug Centers Grocery Stores 7,000-9,999
9 Utah State University Higher Education 7,000-9,999
10 Aine School District Public Education 7,000-9,999
11 Granite School District Public Education 7,000-9,999
12 Northrop Grumman Aerospace 7,000-9,999
13 U.S. Department of Treasury Federal Government 7,000-9,999
14 Jordan School District Public Education 5,000-6,999
15 Amazon.com Services Courier/Express Delivery Service 5,000-6,999
16 Utah Valley University Higher Education 5,000-6,999
17 Salt Lake County Local Government 5,000-6,999
18 U.S. Postal Service Federal Government 5,000-6,999
19 The Home Depot Home Centers 5,000-6,999
20 United Parcel Service Courier/Express Delivery Service 4,000-4,999
21 The Canyons School District Public Education 4,000-4,999
22 Weber County School District Public Education 4,000-4,999
23 Delta Air Lines Air Transportation 4,000-4,999
24 ARUP Laboratories Medical Laboratory 4,000-4,999
Source: Utah Department of Workforce Services, Largest Employers by County, accessed March 2023.
Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport | 17
1.2.2.4 Silicon Slopes
The area surrounding Lehi, Utah is commonly referred to as Silicon Slopes due to its expanding tech presence.
While the regional economy is not dependent on the growing tech community, it is helping to diversify the
workforce in the area. The area is located south of the ASA between Salt Lake City and Provo. Most tech
businesses have been searching for an optional location to the traditional Silicon Valley location in California.
Utah offers lower taxes and a competitive workforce with young and highly educated individuals as compared to
Silicon Valley, and is in relative proximity to Silicon Valley with a flight just under two hours. In 2014, eBay opened
a 240,000-square-foot campus in Salt Lake City. Adobe chose the region as the site for its new $90 million facility
in 2018 and acquired Lehi based software company, Workfront in 2020. In 2021, Micron sold its microchip plant in
the region to Texas Instruments. Other major nation-wide companies with a significant presence in Silicon Slopes
include Microsoft, Oracle, 1-800 Contacts, Facebook, LexisNexis, and Cisco.
There are a number of additional related companies located in this area. Ancestry.com was started by two
Brigham Young University graduates in 1996 and is still headquartered in Lehi, Utah. Internet retailer
Overstock.com has its headquarters in Midvale, Utah. Vivint, a smart home and home security company, was
founded in Provo, Utah in 1999. In December 2022, it was announced that NRG would be acquiring Vivint.
Qualtrics, a cloud-based subscription software platform for experience management company, has one of its two
headquarters located in Provo, Utah. American Fork is home to Domo. Domo is a cloud-based software company
that specializes in business intelligence and data visualization. The expense Management and Business
budgeting software, Divvy, is located in Draper, Utah. HireVue, which develops a platform used to automated
workflows to allow companies to scale hiring, is headquartered in South Jordan, Utah.
1.2.3 Income
Income statistics are broad indicators of the relative earning power and wealth of an area and provide a measure
of the relative affluence of a region’s residents and, consequently, of their ability to afford air travel.
1.2.3.1 Per Capita Personal Income
Per capita personal income (PCPI) corresponds to the income per resident (total income divided by total
population). Figure 1-11 provides the historical and forecasted PCPI for the Air Service Area and the U.S. from
CY 2012 through CY 2030. In CY 2012, PCPI in the Air Service Area was $43,192, which was lower than the
national average of $51,477. From CY 2012 through CY 2021, PCPI in the Air Service Area has increased at a
CAGR of 2.9% as compared to a 1.9% CAGR for the U.S. However, the PCPI in the Air Service Area reached an
estimated $55,741 in CY 2021 which was $5,222 lower than the national average. It assumed that the Air Service
Area’s younger population and lower share of working age population as compared to the U.S. contributes to
PCPI being lower than the national average.
Salt Lake City Department of Airports Report of the Airport Consultant
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18 | Landrum & Brown
Figure 1-11 Historical and Forecast Per Capita Personal Income Trends (CY 2012 – CY 2030)
Source: Woods & Poole Economics, Inc., 2022 Complete Economic and Demographic Data Source, June 2022, accessed
March 2023.
1.2.3.2 Household Income
While PCPI is lower for the Air Service Area than the U.S., household income is greater. To understand the
distribution of income within the region, households within the Air Service Area were segmented into three
categories: upper-class households, middle-class households, and lower-class households. The Pew Research
Center defines the upper-class as adults whose income is more than double the national median. In CY 2022, the
national median household income was $69,717, so upper-class would be considered those with a household
income over $139,434. For the purposes of this Report, upper-class has been defined as those with a household
income of $150,000 or more. The Pew Research Center defines the middle-class as adults whose income falls
between two-thirds and double the national median. For the purposes of this Report, middle-class has been
defined as those with a household income of at least $50,000 but less than $150,000. Households in the middle
and upper-class brackets more likely have individuals whose jobs require travel when compared to lower-class
households. Additionally, upper-class households generally have more disposable income and can therefore
afford more leisure travel than households in other income brackets.
Figure 1-12 presents the percentage of households within each income bracket for the Air Service Area as
compared to the U.S. for CY 2021. As shown, 20.3% of households in the Air Service Area were considered
upper-class, which is above the national average of 17.7%. Additionally, the Air Service has a larger share of
middle-class households (53.1%) compared to the U.S. (45.9%).
PCPI in the Air Service
Area is projected to remain
below the national average
Forecast ►
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Report of the Airport Consultant Salt Lake City Department of Airports
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Salt Lake City International Airport | 19
Figure 1-12 Distribution of Household Income (CY 2021)
Source: US Census Bureau, 2021: ACS 1-Year Estimates Data Profiles, accessed March 2023.
1.2.4 Gross Domestic/Regional Product
Gross domestic product (GDP) and GRP are measures of the value of all final goods and services produced
within a geographic area. These measures are general indicators of the economic health of a geographic area
and, consequently, of the area’s potential demand for air transportation services. Figure 1-13 presents the
historical and forecasted GDP for the U.S. and GRP for the Air Service Area on a per capita basis from CY 2012
through CY 2030. Over the period shown, GRP for the Air Service Area on a per capita basis has been lower than
that of the U.S. apart from CY 2020; however, the Air Service Area has trended much closer to the U.S. in recent
years. Growth in GRP for the Air Service Area is forecasted to be minimal over the next 2 years, which is forecast
to result in a slight gap between it and the U.S. per capita GDP. However, the gap is forecasted to narrow through
the forecast period.
20.3%
17.7%
53.1%
45.9%
26.6%
36.4%
0%10%20%30%40%50%60%70%80%90%100%
Air Service Area
(Median = $82,797)
United States
(Median = $69,717)
Percent of Households
Upper-Class ($150K+)Middle-Class ($50K - $149K)Lower-Class (< $50K)
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Figure 1-13 Historical Per Capita Gross Domestic/Regional Product Trends (CY 2012 – CY 2030)
Source: Woods & Poole Economics, Inc., 2022 Complete Economic and Demographic Data Source, June 2022, accessed
March 2023.
1.2.5 Regional Tourism and Visitors
In CY 2021, travelers directly spent $10.6 billion in Utah supporting approximately 130,600 total jobs.12
Nonresident visitors spent 81.9% of this amount with a majority of those visitors traveling for leisure purposes.13
Outdoor tourism is a major industry in the Air Service Area and for the surrounding region and the State. In
general, outdoor tourism consists of two main seasons: summer and winter. However, it is not uncommon to find
outdoor tourists in all months. In the summer season, the main driver for outdoor tourism is the national and State
parks. In the winter, it is primarily the numerous ski resorts throughout the region.
[Details on business and leisure and O vs. D to come if available]
12 Kem C. Gardner Policy Institute, The State of Utah’s Travel and Tourism Industry 2021, February 2023.
13 Kem C. Gardner Policy Institute, The State of Utah’s Travel and Tourism Industry 2021, February 2023.
The gap between GRP
in the Air Service Area
and GDP is forecasted
to narrow through the
forecast
Forecast ►
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1.2.5.1 National and State Parks
Utah is home to five national parks, nicknamed ‘The Mighty 5’,14 which combined for 10.7 million recreation visits
in CY 2019. All five of the parks provide miles of trails for hiking, backpacking, snowshoeing, cross country skiing,
and horseback riding with backdrops of sweeping vistas and some of the highest concentrations of hoodoos
(irregular columns of rock) found anywhere in the world. There are also 11 national places, including the Glen
Canyon National Recreation Area and the Golden Spike National Monument. The COVID-19 pandemic initially
caused the temporary closure of all the national parks in Utah by early April 2020. According to data from the
National Park Service, the Mighty 5 had 7.8 million recreation visits in 2020, a decline of 27.4%. The parks began
to reopen in May 2020. Figure 1-14 presents the monthly visits to the Mighty 5 from January 2019 through
December 2022. As shown, there was a significant drop in visitors beginning in March 2020. However, visitor
traffic was relatively robust in the late summer and early fall of 2020 considering much of the tourism in the U.S.
was still severely impacted as a result of the pandemic. In CY 2021, visitors to the Mighty 5 exceeded pre-
pandemic levels with 11.3 million. Visitors to the Mighty 5 declined in CY 2022 to 10.5 million, slightly below CY
2019 levels.
Figure 1-14 Park Visitors to the Mighty 5 (January 2019 – December 2022)
Source: National Parks Service, National Reports, accessed March 2023.
In addition to the Mighty 5 national parks, Utah has 44 state parks. In CY 2019, state park visits increased 10.6%
relative to CY 2018 or from 6.7 million to 7.4 million people. Unlike the national parks, Utah’s state parks saw
significant growth in visits in CY 2020, receiving over 10 million visits. The growth continued into CY 2021, as
Utah state parks reported a record 11.6 million visitors. In CY 2022, visitor counts declined to just under 10 million
visits.
14 Mighty 5 includes Arches, Bryce Canyon, Canyonlands, Capitol Reef, and Zion.
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1.2.5.2 Ski Resorts
The ski industry is another major driver of tourism in Utah. For the 2018-19 season which runs from mid-
November through to April, there were 5.1 million skier days 15 in Utah, the most on record. The 2019-20 season
was shut down early because of the COVID-19 pandemic. However, despite the shortened season, Utah’s ski
resorts still saw their fourth best season on record.16 All 15 of Utah’s ski areas were open for the 2020-21 season
with safety protocols in place. For the 2020-21 season, ski resorts saw a record-breaking total of more than 5.3
million skier days, up nearly 3.5% from the previous record from the 2018-19 season. This trend continued in the
2021-22 season when there were 5.8 million skier days.17 Out of state skiers contributed $1.9 billion to Utah’s
economy in the 2021-22 season. [data for 2022-23 season]
1.2.5.3 Air Travel associated with the Church of Jesus Christ of Latter-day Saints
[To be provided at a later date]
1.2.5.4 Other
The Air Service Area is home to a rich variety of cultural, educational, and entertainment attractions including: the
Utah Museum of Fine Arts; Utah Museum of Contemporary Art; Phillips Gallery; Natural History Museum of Utah;
Hogle Zoo; Tracy Aviary; Fort Douglas Military Museum; Red Butte Garden; Wheeler Historic Farm; Living Planet
Aquarium; The Leonardo science museum; Clark Planetarium and IMAX Theater; Discovery Gateway Children’s
Museum; Utah Opera; Utah Symphony; Ballet West; Repertory Dance Theatre; Pioneer Theatre Company, and
others.
In 2020, 116,800 people attended the annual Sundance Film Festival, held in January in Park City, Utah.
Approximately 44,000 of the attendees were visitors from out of State.18 In 2021 and 2022, the Sundance Film
Festival transitioned to a virtual event. The event provided both virtual and in-person experiences in the 2023
iteration of the festival. Other festivals and events in the Air Service Area and around the state include the Utah
Shakespeare Festival, Moab Music Festival, Utah Festival Opera, Tuacahn theater series, and the Utah Arts
Festival.
Major professional sports teams based in the Air Service Area include the National Basketball Association’s Utah
Jazz, Major League Soccer’s Real Salt Lake, and Major League Rugby’s Utah Warriors. There are also six minor
league professional teams. In February 2023, the 72nd annual NBA All-Star Weekend was held in Salt Lake City.
In 2019, there were approximately 655,000 attendees accounting for more than $330 million in direct spending at
meetings/conventions/events in Salt Lake City.19 However, the meeting industry had been one of the hardest hit
sectors because of restrictions implemented during the COVID-19 pandemic. Visit Salt Lake, through its “Meet In
Utah” program, offered financial incentives to groups that contracted events by December 30, 2020 that were
planned to be held in 2021. Through this effort, 40 events were scheduled and generated 30,182 attendees in
2021.20 Overall in 2021, conventions in Salt Lake City had 278,433 people, accounting for 716,710 room nights,
generating an estimated $115.2 million in direct spending. [2022 data]
15 A skier day is defined as one person visiting a ski area for all or part of a day or night for skiing or snowboarding.
16 Ski Utah, Utah Skier Numbers Remain Promising Despite an Abrupt End to the 2019-20 Season, accessed online at
https://www.skiutah.com/news/authors/pr/utah-skier-numbers-remain
17 Standard-Examiner, Utah ski resorts see record numbers during 2020-2021 winter, despite pandemic, accessed June 2021.
18 Y2 Analytics, 2020 Sundance Film Festival: Economic Impact, access online at
https://www.sundance.org/pdf/2020%20Sundance%20Film%20Festival%20Economic%20Impact%20Report.pdf
19 Visit Salt Lake, 2019 Annual Report, accessed online at https://www.visitsaltlake.com/members/member-tools/
20 Visit Salt Lake, 2021 Annual Report, accessed online at https://www.visitsaltlake.com/members/member-tools/
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On October 17, 2022, the Hyatt Regency – Salt Lake City opened. The 26-story, 700-room hotel was the final
piece to expansion of the City’s meeting and convention area. It is situated next to the convention center to allow
for easy access for convention attendees staying at the hotel. The hotel offers 60,000 square feet of indoor
meeting space and 7,400 square feet of outdoor event space.
In February 2023, the Outdoor Retailer Snow Show returned to Salt Lake City after five years in Denver,
Colorado. Visit Salt Lake provides a list of conventions with attendance of 50 persons or more, and major
exhibitions and events attracting significant attendance from out of town. From April 2023 through December
2023, there are currently 51 such events and conventions boosting an estimated attendance of nearly 225,000
people. Most notable of these are the USA Volleyball 2023 Salt Lake City Showdown, the 2023 Salt Lake City
Marathon, 2023 FitCon, 2023 Boys’ Junior Volleyball National Championships, the Young Living 2023
International Grand Convention, and the doTERRA 2023 Annual Convention.
1.2.6 Summary
Table 1-4 presents a summary of CY 2021 and CY 2030 economic variables for the Air Service Area and for the
U.S. including population, employment, personal income, and gross regional and domestic product. With the
exception of per capita GDP/GRP which are forecast to increase at the same rate, growth expectations for these
variables are higher in the Air Service Area than in the U.S. Notably, personal income, population, and
employment are projected to have stronger growth rates in the Air Service Area, thus indicating the ongoing
capacity of the Air Service Area to continue to generate demand for air travel services during the projection period
for this Report.
Table 1-4 Passenger Demand Forecast Variables (CY 2021 – CY 2030)
Variable1 Region
Actual
2021
Forecast
2030
CAGR2
2021-2030
Population
(In Thousands)
Air Service Area 2,746 3,081 1.3%
United States 331,894 352,070 0.7%
Total Employment
(In Thousands)
Air Service Area 1,844 2,219 2.1%
United States 201,624 231,986 1.6%
Per Capita Personal
Income
Air Service Area $55,741 $64,731 1.7%
United States $60,963 $70,635 1.6%
Per Capita GDP/GRP Air Service Area $67,481 $76,902 1.5%
United States $67,849 $77,252 1.5%
1 All dollar amounts are in 2021 dollars.
2 CAGR = Compound annual growth rate.
Source: Woods & Poole Economics, Inc., Complete Economic and Demographic Data Source, June 2022, accessed
March 2023.
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2 Air Service and Air Traffic Analysis
This chapter describes and evaluates the state of air service at the Airport, analyzes historical trends in air traffic,
identifies key factors that generally affect demand for air travel, and provides projections of air traffic activity.
2.1 Air Service at the Airport
The following sections evaluate current air service capacity and operating performance for the primary passenger
airlines serving the Airport. The Airport’s overall O&D market is also assessed at the market level, comparing
performance with prior years. Because of Delta’s significant presence at the Airport, the airline is evaluated in
greater detail. The Airport’s role as a connecting hub for Delta when compared to other U.S. hubs is examined. To
the extent airline market data and related information is available, impacts associated with the COVID-19
pandemic are also identified.
2.1.1 Airlines Operating at the Airport
The Airport has historically experienced diverse air service from the primary U.S. airlines. As of March 2023, the
Airport had scheduled passenger service by four U.S. network airlines,21 two low-cost carriers (LCCs),22 two ultra-
low-cost carriers (ULCCs),23 and four foreign flag airlines. All domestic carriers have maintained service, albeit at
lower levels in terms of seats and number of destinations since the onset of the COVID-19 pandemic. Table 2-1
provides a list of the scheduled passenger and all-cargo airlines that served the Airport as of March 2023.
To illustrate specific trends in changes to the passenger market share, Table 2-2 provides the enplaned
passengers by airline with the associated market share from FY 2018 through FY 2022. In FY 2018, Delta
accounted for 70.3% of the total enplaned passengers at the Airport. From FY 2018 through FY 2019, Delta
continued to increase its passenger market share at the Airport while the passenger market share of most of the
other domestic airlines remained relatively constant through this period. Although Delta’s number of enplaned
passengers declined in FY 2020 primarily because of the impacts related to the COVID-19 pandemic during the
last several months of FY 2020, its passenger market share at the Airport increased. Delta accounted for 72.9% of
the total enplaned passengers in FY 2020. In FY 2022, Delta accounted for 73.4% of the enplaned passengers.
Delta and Southwest are the only airlines that have provided continuous service and had a higher market share in
FY 2022 than in FY 2019. In FY 2022, Spirit Airlines began service at the Airport.
For FY-to-date 2023 24, market share has shifted as a result of the introduction of Spirit Airlines and the resumption
of international passenger service from KLM and Aeroméxico. Delta’s FY-to-date market share is down to 72.0%
from 73.4% in FY 2022. A similar trend is shown for nearly all of the airlines that have provided continuous service
with the exception of Southwest and JetBlue. FY-to-date, Spirit’s market share is at 1.6%, up from 0.2% from FY
2022 when the airline started service at the Airport. KLM and Aeroméxico, combined, accounted for 0.5% of the
enplaned passengers through January 2023.
21 For the purposes of this Report, Alaska Airlines, American Airlines, Delta Air Lines and United Airlines are considered network airlines.
22 For the purposes of this Report, Southwest Airlines and JetBlue Airways are considered low-cost carriers.
23 For the purposes of this Report, Frontier Airlines and Spirit Airlines are considered ultra-low-cost-carriers.
24 FY-to-date is currently through January 2023.
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Table 2-1 Airlines Serving the Airport (as of March 2023)
Passenger Airlines
U.S. Network
Passenger Carriers
(4)
Low-Cost
Passenger Carriers
(2)
Ultra-Low-Cost
Passenger Carriers
(2)
Regional/Commuter
Passenger Airlines
(4)
Foreign Flag
Passenger Airlines
(4)
Alaska Airlines JetBlue Airlines1 Frontier Airlines Horizon Air2 Aeroméxico
American Airlines Southwest Airlines Spirit Airlines1 Mesa Airlines3,4 Air Canada
Delta Air Lines Envoy Air3 Eurowings Discover
United Airlines SkyWest
Airlines2,3,4,5 KLM Royal Dutch
All-Cargo Airlines (10)
Air Transport
International, Inc. Alpine Aviation Ameriflight, LLC Amerijet
International Corporate Air
Empire Airlines FedEx Northern Air Cargo
Southern Air
(operates DHL
Express service)
United Parcel
Service
1 In October 2022, Spirit Airlines shareholders approved a new merger agreement with JetBlue Airways, which would
create the fifth largest airline in the U.S. This merger is being challenged by the U.S. Department of Justice.
2 Doing business as Alaska Airlines
3 Doing business as American Eagle
4 Doing business as United Express
5 Doing business as Delta Connection
Sources: Cirium, Diio Mi, Schedule – Dynamic Table, accessed March 2023 (passenger airlines); Department (all-cargo
airlines), access March 2023.
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Table 2-2 Historical Airport Enplaned Passenger Market Share (FY 2018 – FY 2022)
Airline
Enplaned Passengers (In Thousands) Market Share
FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022
Delta Air Lines 8,729 9,432 7,365 5,592 9,403 70.3% 72.0% 72.9% 72.5% 73.4%
Southwest Airlines 1,310 1,300 982 758 1,327 10.5% 9.9% 9.7% 9.8% 10.4%
American Airlines 775 740 555 520 688 6.2% 5.7% 5.5% 6.7% 5.4%
United Airlines 608 663 475 350 596 4.9% 5.1% 4.7% 4.5% 4.7%
Alaska Airlines 379 333 253 182 295 3.1% 2.5% 2.5% 2.4% 2.3%
JetBlue Airways1 363 358 274 113 249 2.9% 2.7% 2.7% 1.5% 1.9%
Frontier Airlines 243 263 191 194 217 2.0% 2.0% 1.9% 2.5% 1.7%
Spirit Airlines1 0 0 0 0 21 0.0% 0.0% 0.0% 0.0% 0.2%
Other 13 2 1 0 6 0.1% 0.0% 0.0% 0.0% 0.0%
Total 12,420 13,090 10,096 7,710 12,802 100.0% 100.0% 100.0% 100.0% 100.0%
Note: Amounts may not add because of rounding.
1 In October 2022, Spirit Airlines shareholders approved a merger proposal with JetBlue Airways. This merger is being challenged by the U.S. Department
of Justice.
Source: Salt Lake City Department of Airports, accessed March 2023.
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2.1.2 Current Nonstop Service
The Airport’s passenger operations have historically peaked during the summer months. In July 2019, there was
nonstop service to 99 markets (88 domestic and 11 international) from the Airport. Nonstop service to many
markets was suspended in 2020 and 2021 because of the impacts associated with the COVID-19 pandemic. As
of March 2023, there is scheduled service to 95 markets (83 domestic and 12 international) from the Airport.25
Figure 2-1 and Figure 2-2 provide a breakdown of the scheduled domestic and international nonstop markets at
the Airport.
2.1.3 Origin and Destination Markets
Table 2-3 provides information regarding the Airport’s top domestic O&D markets, including the number of daily
O&D enplaned passengers for year-end (YE)26 March 2020 and YE September 2022. The table also presents
daily departing seats. For example, the Los Angeles Basin market (the largest O&D market served from the
Airport) had an average of 3,532 daily O&D enplaned passengers with 4,024 total nonstop departing seats to the
market during YE September 2022.
The table helps to illustrate how the Airport’s air travel demand has changed since the start of the COVID-19
pandemic. Overall, O&D enplaned passengers at the Airport were up 4.4% for YE September 2022 as compared
to YE March 2020 levels despite a decline in nonstop scheduled seats. As shown, leisure markets during YE
September 2022, such as those in Florida, are up from YE March 2020 levels. Another important distinction for
these leisure destinations is that they are served by LCCs and ULCCs. ULCC traffic has been the leading driver of
growth in these leisure markets in recent years.
The Airport’s top O&D international markets are Cancun, Mexico; London, England; and Vancouver, Canada and
each have nonstop service. The largest O&D international market currently not served with direct service from the
Airport is Rome, Italy.
25 Some service is seasonal and may not operate in any given month.
26 Year-end (YE) refers to the 12-month period ended during the month presented. For example, YE March 2020 refers to the period of April
2019 through March 2020.
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Figure 2-1 Nonstop Domestic Destinations at the Airport
Source: Cirium, Diio Mi, Schedule – Dynamic Table, accessed March 2023
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Figure 2-2 Nonstop International Destinations at the Airport
Source: Cirium, Diio Mi, Schedule – Dynamic Table, accessed March 2023.
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Table 2-3 Top-25 Domestic O&D Markets from the Airport
(sorted based on YE September 2022 O&D Enplaned Passengers)
O&D Enplaned Passengers
Per Day
Nonstop Scheduled Departing
Seats Per Day
Region Airports Served
YE
March
2020
YE
September
2022
Percent
Change
YE
March 2020
YE
September
2022
Percent
Change
Los Angeles LAX, LGB, BUR,
LGB, ONT 2,229 2,352 5.5% 4,038 4,024 -0.4%
San Francisco
Bay
SFO, OAK, SJC 1,228 1,003 -18.3% 2,810 2,398 -14.7%
Phoenix PHX 837 962 15.0% 2,019 1,765 -12.6%
New York/
Newark
JFK, EWR 933 913 -2.2% 1,563 1,366 -12.6%
Denver DEN 915 899 -1.8% 2,468 2,743 11.1%
Las Vegas LAS 647 749 15.8% 1,630 1,772 8.7%
Orlando MCO 474 717 51.2% 660 1,006 52.4%
Dallas/
Ft. Worth
DFW, DAL 591 693 17.2% 1,638 1,918 17.1%
Seattle SEA 683 641 -6.1% 1,848 1,643 -11.1%
San Diego SAN 695 630 -9.3% 1,129 1,023 -9.4%
Hawaii HNL, OGG 465 589 26.8% 278 351 26.6%
Baltimore/
Washington
BWI, DCA, IAD 614 549 -10.6% 774 610 -21.3%
Chicago ORD, MDW 488 506 3.6% 1,375 1,287 -6.4%
Southeast
Florida
FLL, MIA 344 475 38.2% 324 545 68.6%
Atlanta ATL 447 439 -1.7% 1,801 1,628 -9.6%
Houston IAH, HOU 356 418 17.4% 679 798 17.6%
Boston BOS 409 412 0.9% 553 544 -1.5%
Portland PDX 438 391 -10.7% 1,121 988 -11.9%
Austin AUS 286 285 -0.5% 452 573 26.8%
Sacramento SMF 262 267 2.0% 696 716 3.0%
Minneapolis/
St. Paul
MSP 260 252 -3.1% 941 850 -9.6%
Detroit DTW 205 216 5.5% 735 782 6.4%
Nashville BNA 151 207 37.2% 226 295 30.3%
Tampa/
Clearwater
TPA 150 195 30.2% 149 190 28.1%
Charlotte CLT 144 194 34.4% 322 399 23.9%
Top 25 14,250 14,954 4.9% 30,227 30,215 0.0%
Others 4,542 4,672 2.9% 9,769 8,998 -7.9%
Total 18,792 19,627 4.4% 39,996 39,213 -2.0%
Notes: Airports served indicates that the airport was provided with scheduled service during YE September 2022.
Source: US DOT Reports DB1A; US DOT T100 Report, accessed via Cirium, Diio Mi, accessed March 2023.
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2.1.4 Airline Revenue Performance at the Airport
Airline performance at an airport can be measured primarily by four key airline revenue metrics: revenue per
available seat mile, load factor, and yield. Each of these airline metrics are summarized below.
Revenue per available seat mile (RASM) – RASM is the unit metric used by airlines, expressed in
cents, to measure the amount of revenue received for each available seat mile (ASM). ASMs are
measured by airlines for the purpose of determining capacity; one ASM unit equates to one seat flying
one mile. For example, an aircraft with 100 seats operating on a route of 1,000 miles would equate to
100,000 ASMs. For the purposes of this analysis, RASM only measures passenger revenue derived from
air fares and does not include other revenues received by airlines such as baggage fees.
Load factor – Load factor measures how an airline is performing on a specific route or in aggregate in
terms of filling its available seat capacity. Load factor is calculated as total revenue passenger miles
(RPMs) divided by ASMs. RPMs are the general airline metric for measuring the number of miles traveled
by paying passengers. For example, a revenue passenger flying one mile equates to one RPM.
Yield – The last measure is airline yield, represented by revenue per passenger mile (RPM). Yield (or
RPM) is like RASM, however, yield measures revenue for each passenger-mile sold (RASM measures
revenue for each passenger-mile available to be sold). Yield is the industry measurement for price, while
load factor is a volume-related measurement. RASM factors in both and, thus, is considered the key
airline revenue metric.
In general, the higher the RASM or yield the more profitable an airline is assuming that the number of ASMs
remain constant over time. Since an airline’s revenue does not necessarily increase proportionately with the
distance it flies, both RASM and yield will typically decrease as the overall length of the trip or stage length
increases. Therefore, if an airline increases its overall stage length, it should be expected that RASM and yield will
decrease. To account for this, RASM and yields have been adjusted based on the airline’s average stage length.
For the purposes of this Report and to normalize for varying stage lengths, all stage length adjusted (SLA)27
values are expressed in a base of 1,000 miles.
Table 2-4 compares key airline revenue metrics for all U.S airlines and the three largest network airlines serving
the Airport in YE March 2020 versus YE September 2022. Key airline revenue metrics exhibited some decreases
during the COVID-19 pandemic. However, as shown for YE September 2022, key airline revenue metrics for the
Airport are better than the national average and better those for the Airport prior to the COVID-19 pandemic. Note
that the data presented does not include airline ancillary fees for items such as ticket changes, checked bags,
priority seating, etc., as this data is not available by airport. Over the years, U.S. airlines have realized significant
revenues from these ancillary fees.
27 Stage length adjustments are a common practice used to normalize comparisons of passenger yields and revenue per
available seat mile. Stage length adjustments for 1,000 miles are made using the formula:
SLA Value = Value * (observed length of haul/1000)0.5.
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Table 2-4 Key Airline Revenue Metrics at the Airport (YE March 2020 vs. YE September 2022)
Airline
SLA Passenger RASM Load Factor SLA Yield
YE
March 2020
YE
September
2022
YE
March 2020
YE
September
2022
YE
March 2020
YE
September
2022
Delta Air
Lines 13.3¢ 14.6¢ 85% 86% 15.7¢ 17.2¢
Southwest
Airlines 9.1¢ 9.1¢ 80% 82% 11.5¢ 11.2¢
American
Airlines 11.9¢ 13.7¢ 83% 88% 14.4¢ 15.6¢
Airport
Average 12.4¢ 13.6¢ 84% 85% 14.9¢ 16.1¢
National
Average 11.8¢ 11.9¢ 82% 81% 14.6¢ 14.7¢
Notes: Data include regional affiliates, as applicable, and do not include airline ancillary fees such as charges for
checked baggage, etc.
SLA Value = Value * (observed length of haul/1,000)0.5
Source: Cirium, Diio Mi: US DOT Reports DB1A and T100, accessed March 2023.
2.1.5 Delta Air Lines Operations at the Airport
Delta, including its regional affiliates, is the dominant airline at the Airport, historically accounting for at least 70%
of the Airport’s enplaned passengers. The Airport is important in serving O&D traffic and is also one of Delta’s
primary connecting hubs along with Hartsfield-Jackson Atlanta International Airport (ATL), Minneapolis-St. Paul
International Airport (MSP), and Detroit Metropolitan Wayne County Airport (DTW). Table 2 -5 provides the
scheduled departing seats for Delta’s top 10 airports in the U.S by departing seats for YE March 2018, YE March
2020, and YE March 2023. As shown, the Airport had approximately 11.0 million scheduled departing seats during
YE March 2020, which ranked it as Delta’s fourth largest airport in the U.S. In YE March 2023, the Airport
maintained its number four ranking; however, it has moved closer to the top three airports. Delta has almost fully
recovered at the Airport in terms of seating capacity from prior to the COVID-19 pandemic. Departing seats at the
Airport are scheduled to reach more than 10.7 million in YE March 2023, 2.0% below the YE March 2020 level.
Only two airports in Delta’s top 10 (Boston and Orlando) are scheduled to have more seats in YE March 2023
than in YE March 2020.
[aircraft gauge to be reviewed and included if applicable]
Report of the Airport Consultant Salt Lake City Department of Airports
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Salt Lake City International Airport | 33
Table 2-5 Delta’s Top 10 Airports Based on Scheduled Departing Seats
(YE March 2018, YE March 2020, and YE March 2023)
Rank Airport Code
Departing Seats Percent Change
YE March
2018
YE March
2020
YE March
2023 2018-20 2020-23
1 Atlanta ATL 47,554,353 49,642,305 42,585,034 4.39% -14.22%
2 Minneapolis/St. Paul MSP 15,785,584 16,304,674 13,376,762 3.29% -17.96%
3 Detroit DTW 15,416,603 16,457,242 12,736,515 6.75% -22.61%
4 Salt Lake City SLC 9,704,690 10,951,178 10,729,212 12.84% -2.03%
5 New York-JFK JFK 9,786,275 10,806,085 10,193,809 10.42% -5.67%
6 New York-LGA LGA 7,655,678 8,332,309 7,941,137 8.84% -4.69%
7 Los Angeles LAX 7,863,072 8,326,197 7,478,946 5.89% -10.18%
8 Seattle SEA 6,133,392 7,354,029 6,888,504 19.90% -6.33%
9 Boston BOS 3,829,246 5,189,122 5,881,134 35.51% 13.34%
10 Orlando MCO 3,514,162 3,682,619 3,796,146 4.79% 3.08%
Source: Diio Mi, Schedule – Dynamic Table, accessed April 2023.
2.1.5.1 Delta’s O&D Passenger Traffic at the Airport
The size of the Airport’s O&D market is a key consideration in being a hub for Delta. As shown in Table 2-6, Delta
achieved almost $2.9 million in estimated revenue per day on a roundtrip basis at the Airport in YE September
2022. The Airport was the 6th largest domestic market in Delta’s network based upon both O&D passengers and
revenue for YE September 2022, up from 7th in FY 2019.
Table 2-6 Delta’s Top Ten Domestic O&D Markets Based on Estimated Revenue
(YE September 2022)
Rank Airport Code
O&D Passenger
Per Day
Average
One-Way Fare
Roundtrip Revenue
Per Day
(In Thousands) Yield
1 Atlanta ATL 29,948 $228 $6,841 0.21¢
2 Minneapolis/
St. Paul MSP 15,411 $232 $3,574 0.18¢
3 Detroit DTW 14,865 $246 $3,650 0.20¢
4 New York-JFK JFK 13,834 $283 $3,911 0.14¢
5 Los Angeles LAX 12,612 $261 $3,295 0.15¢
6 Salt Lake City SLC 12,308 $233 $2,864 0.18¢
7 New York-LGA LGA 11,546 $171 $1,976 0.20¢
8 Boston BOS 9,943 $233 $2,321 0.16¢
9 Seattle SEA 8,475 $263 $2,231 0.15¢
10 Orlando MCO 8,243 $209 $1,725 0.16¢
Source: Cirium, Diio Mi: US DOT Reports DB1A, accessed March 2023.
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Figure 2-3 presents the percentage of O&D enplaned passengers for Delta’s traffic at its key “interior” connecting
hub airports including ATL, MSP, DTW, and the Airport. Interior hubs are considered to be those hub airports that
are geographically located within the interior of the U.S. and not on either the U.S. east or west coasts. As shown,
48.5% of Delta’s enplaned passengers at the Airport were O&D passengers in the third quarter of CY 2022. As
presented in Figure 2-3, O&D traffic tends to peak as a percentage during the first quarter of the CY and drop off
modestly in the second and third quarters. Delta’s percentage of O&D traffic has generally trended with its other
major connecting hubs at MSP and DTW; however, has been somewhat lower in recent quarters. Delta’s share of
O&D traffic at the Airport was also well above that for its ATL hub. However, given ATL’s role as Delta’s largest
global connecting hub airport, comparisons to ATL are not as relevant as the other hub comparisons. Per
discussions with Delta staff over the years, serving large O&D markets and maintaining a ratio of approximately
40% to 50% of O&D traffic at its primary connecting hubs, except for ATL, is considered to be a sustainable
balance for its network. Over the past two decades, other Delta connecting hubs that served much smaller local
O&D markets that were unable to sustain a similar share of O&D passenger traffic were either significantly
downsized or discontinued as connecting hubs within Delta’s network. It is important to note that at the Airport, the
share of O&D traffic declined significantly in the second through the fourth quarter of CY 2020 and CY 2021,
before recovering during the first quarter of the following year. Although, this trend existed prior to the COVID-19
pandemic, it was not as pronounced. However, in CY 2022, the decline is more indicative of typical seasonality.
Figure 2-3 Delta’s Percent of O&D Enplaned Passengers at Interior Connecting Hubs
(2018 Q4 – 2022 Q3)
Source: Cirium, Diio Mi: US DOT Reports DB1A and T100, accessed March 2023.
48.5%
52.4%
55.2%
32.4%
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20%
30%
40%
50%
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70%
2018
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2019
Q1
2019
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2019
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2020
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2020
Q4
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Report of the Airport Consultant Salt Lake City Department of Airports
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Salt Lake City International Airport | 35
2.1.5.1 Delta’s Connecting Traffic at the Airport
The Airport provides Delta a strategic presence in the western U.S. allowing for connectivity to and from the U.S.
Mountain-West and Pacific regions. Figure 2-4 presents the U.S. regions used for our analysis of Delta’s
connecting traffic.
Figure 2-4 United States Regions
Source: U.S. Census Bureau, Census Regions and Divisions of the United States.
The Airport is a critical connecting hub for those passengers that begin their journey in the West. For YE
September 2022, 10.3 million passengers originated in the West and were connected through one of Delta’s
major hubs. Passengers originating from the West accounted for 25.4% of the passengers connecting at Delta’s
major hubs, which is the second largest region of origin. Figure 2-5 graphically depicts the traffic flow from the
West through each of Delta’s connecting hubs to the destination’s region. The Airport handled 2.8 million of the
10.3 million passengers (27.3%) of the connecting passengers from origins in the West, second only to ATL.
Nearly half (46.9%) of those 2.8 million passengers concluded their journey in the West region. The 1.3 million
West-to-West connecting passengers through the Airport is more than half of all West-to-West connections and
almost double that of SEA, the second largest airport in terms of handling such connections. The Airport is also
second to ATL for all connections from the West to all other regions in the U.S. Table 2-7 provides the detailed
number of connecting passengers at each of Delta’s connecting hubs.
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Figure 2-5 Traffic Flows Through Delta Connecting Hubs (YE September 2022)
Source: Cirium, Diio Mi: US DOT Reports DB1A, accessed March 2023.
Report of the Airport Consultant Salt Lake City Department of Airports
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Salt Lake City International Airport | 37
Table 2-7 Delta Connecting Passengers by Hub by Region (YE September 2022)
Origin
Region
Destination
Region
Enplaned Passengers (In Thousands)
Connecting Hub
Total SLC DTW ATL MSP SEA LAX
West West 1,306 0 21 11 720 266 2,324
Midwest 403 195 212 772 148 109 1,839
Northeast 145 296 340 259 76 47 1,163
South 804 234 2,234 469 193 237 4,171
International 152 45 243 70 166 127 803
Total 2,810 770 3,050 1,580 1,303 787 10,300
Midwest West 390 201 197 768 147 115 1,818
Midwest 0 167 40 332 0 0 539
Northeast 0 277 102 111 0 0 490
South 1 504 2,071 417 0 0 2,993
International 8 115 437 113 18 16 707
Total 399 1,264 2,847 1,741 165 131 6,547
Northeast West 151 306 326 254 71 49 1,158
Midwest 0 298 106 111 0 0 515
Northeast 0 13 0 0 0 0 13
South 1 233 1,326 10 0 1 1,570
International 2 39 248 19 12 12 330
Total 154 889 2,006 395 83 61 3,587
South West 790 224 2,255 471 188 231 4,159
Midwest 1 509 2,103 433 0 0 3,046
Northeast 1 226 1,330 13 0 0 1,570
South 0 117 6,305 13 0 0 6,435
International 11 123 1,265 65 31 32 1,526
Total 804 1,199 13,258 994 220 263 16,737
International West 148 47 248 68 161 116 788
Midwest 7 113 415 108 19 14 676
Northeast 1 34 250 16 13 11 327
South 11 124 1,219 62 31 25 1,472
International 3 10 145 7 16 16 197
Total 170 327 2,277 262 240 183 3,460
Grand Total 4,336 4,449 23,438 4,971 2,011 1,425 40,631
Note: Totals may not equal due to rounding.
Source: Cirium, Diio Mi: US DOT Reports DB1A, accessed March 2023.
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Delta’s other major airport operations in the western U.S. are on the West Coast at Seattle-Tacoma International
Airport (SEA) and Los Angeles International Airport (LAX). Both airports are also considered key Delta gateways
to Asia. Other than serving the major U.S. West Coast corridor markets, the geographic locations of SEA and LAX
on the U.S. West Coast are considered a disadvantage in operating efficient domestic connecting traffic flows
throughout the western region of the U.S. While there is some overlap in Delta’s service provided to larger West
Coast markets from the Airport, SEA, and LAX, these three airports generally do not compete with one another,
as each airport serves distinct markets and regions not served by the others. Additionally, with the Airport’s central
location within the western U.S., it serves as an efficient connecting point for Delta passengers to or from both
SEA and LAX to the eastern U.S. Both LAX and SEA are considered primarily O&D airports for Delta, although
their geographic locations also offer the opportunity to provide connections to trans-Pacific, Mexican, and
Canadian international markets, and larger markets along the U.S. West Coast. LAX and SEA also serve as a
connecting point for traffic to and from the Airport to Alaska and Hawaii, although Honolulu is served nonstop from
the Airport, and Maui and Anchorage have been seasonally served nonstop markets from the Airport as well.
Figure 2-6 depicts the top 25 markets with passengers connecting through the Airport, SEA, and LAX. As shown,
the top airport destinations for passengers that connect through SLC consist of major markets along the West
Coast, smaller airports within the U.S. Mountain-West, other Delta connecting hubs, and larger O&D markets in
the eastern U.S. In particular, the Airport provides Delta’s primary access to several smaller Mountain-West and
western markets such as Boise, Reno, Bozeman, Glacier Park, Idaho Falls, and Billings, among others. It is
important to note that many of these markets experienced passenger growth during the first few years of the
COVID-19 pandemic as they, along with the Airport, offer leisure/outdoor recreation activities and were popular
destinations. These are also markets that, for the most part, Delta could not efficiently serve via any of its other
hub airports. In general, the only other viable option for efficient connectivity in the U.S. Mountain-West is Denver
International Airport (DEN). However, Denver appears to be an unlikely alternative for Delta given that three other
airlines (United Airlines, Southwest Airlines, and Frontier Airlines) already operate hubs and/or focus city
operations there.
To further illustrate this point, Table 2-8 presents the top 25 airports where passengers either began or ended
their trips while connecting through these U.S. West Coast hubs on Delta for YE September 2022. As shown,
Delta’s top 25 connecting markets through the Airport account for about half (52.1%) of Delta’s total connecting
passengers and the Airport, with most of the markets being located in the Mountain-West or western portion of the
U.S. By comparison, the top airport where most passengers either begin or end their trips on Delta while
connecting through either SEA or LAX are Anchorage (ANC) and Honolulu (HNL), respectively. The majority of
other passenger connections at SEA or LAX are generally to airports that are most proximate to those hubs,
relative to the other hubs. For example, 26.6% of passengers connecting at SEA on Delta either begin or end their
trip in Anchorage, Portland, Spokane, Fairbanks, or Vancouver. Similarly, for LAX, 23.2% of passengers begin or
end their trips in Hawaii, Las Vegas, or San Francisco. Overall, Delta’s top 25 connecting markets through SEA or
LAX account for more than 56% of Delta’s total connecting passengers indicating that the top connecting markets
at SEA and LAX are more concentrated as a share of the connecting passengers than the top connecting markets
at the Airport, thus indicating that Delta’s connecting traffic at the Airport is more diverse than its connecting traffic
in SEA and LAX.
Report of the Airport Consultant Salt Lake City Department of Airports
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Salt Lake City International Airport | 39
Figure 2-6 Delta’s Top 25 Connecting Markets at the Airport, LAX, and SEA (YE September 2022)
Source: Cirium, Diio Mi: US DOT Reports DB1A, accessed March 2023.
Salt Lake City Department of Airports Report of the Airport Consultant
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40 | Landrum & Brown
Table 2-8 Delta Top 25 Airports with Passengers Connecting at West Coast Hubs
(YE September 2022)
Salt Lake City
International Airport
Los Angeles
International Airport
Seattle-Tacoma
International Airport
Airport
Code
Share of
Passengers
Airport
Code
Share of
Passengers
Airport
Code
Share of
Passengers
PDX 3.4% HNL 8.3% ANC 10.1%
LAS 3.0% LAS 4.6% PDX 6.6%
SEA 2.7% SFO 4.4% GEG 4.3%
LAX 2.6% OGG 3.4% FAI 3.3%
GEG 2.5% KOA 2.5% YVR 2.3%
BOI 2.5% PHX 2.4% BOI 2.2%
SMF 2.5% SMF 2.3% EUG 2.0%
BZN 2.2% SEA 2.3% LAS 2.0%
PHX 2.2% SLC 2.1% PHX 2.0%
SAN 2.2% LIH 2.0% HNL 1.9%
DEN 2.1% SYD 2.0% PSC 1.9%
SFO 2.1% PDX 1.9% SMF 1.9%
RNO 2.0% SJC 1.9% SAN 1.8%
ATL 1.9% ORD 1.7% RDM 1.8%
MCO 1.9% DEN 1.6% LAX 1.7%
IDA 1.8% OAK 1.6% SLC 1.7%
MSP 1.7% JFK 1.5% SFO 1.7%
DFW 1.7% DFW 1.5% JNU 1.6%
SJC 1.7% RNO 1.4% MFR 1.4%
DTW 1.6% IAH 1.3% BOS 1.4%
FCA 1.6% MCO 1.3% MSP 1.4%
ONT 1.6% ATL 1.3% KOA 1.4%
OAK 1.6% AUS 1.2% DEN 1.4%
JAC 1.6% EWR 1.1% OGG 1.3%
MCI 1.5% TUS 1.1% MCO 1.2%
Other 47.9% Other 43.1% Other 39.7%
Total 100.0% Total 100.0% Total 100.0%
Source: Cirium, Diio Mi: US DOT Reports DB1A, accessed March 2023.
Report of the Airport Consultant Salt Lake City Department of Airports
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Salt Lake City International Airport | 41
Connecting traffic at the Airport has fared better in recent years than Delta’s other interior hubs prior to the
COVID-19 pandemic. From FY 2015 through FY 2019, the Airport had a 7.8% growth in connecting passengers.
ATL was the only other interior hub with positive growth in connecting passengers at 1.5%. The Airport has also
had the fastest recovery from the COVID-19 pandemic in connecting passengers among Delta’s interior hubs. In
FY 2022 while still not recovered back to FY 2019 levels, connecting passengers were 97.9% of FY 2015 levels,
significantly better than ATL’s 79.6%, MSP’s 64.6%, and DTW’s 61.3%. Figure 2-7 provides a depiction of
connecting passengers at Delta’s interior hubs indexed FY 2015.
Figure 2-7 Delta’s Connecting Enplaned Passengers at Interior Connecting Hubs
(FY 2015 – FY 2022)
Source: Cirium, Diio Mi: US DOT Reports DB1A and T100, accessed March 2023.
2.1.5.2 Delta’s Financial Information
Delta currently has 919 aircraft in its fleet. The airline has orders for 59 130-seat Airbus A220-300, 130 194-seat
Airbus A321neo, 18 281-seat Airbus A330-900, 16 306-seat Airbus A350-900, and 100 182-seat Boeing 737 Max
10.28 Delta Air Lines is expecting to fully retire the Boeing 717-200 aircraft by December 2025.
28 Information gathered from airline’s website, Boeing’s Orders & Deliveries, and Airbus’ Orders and Deliveries, accessed March 2023.
97.9
61.3
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42 | Landrum & Brown
In the first quarter of CY 2020, Delta had an operating margin 29 of 11.5%, the highest among the network carriers.
However, Delta was impacted financially by the impacts associated with the COVID-19 pandemic in the
subsequent quarters having the lowest operating margin of any the network carriers. In the first quarter of 2021,
the operating margin for Delta was -106.4%, by far the worst margin among network carriers. However, financial
recovery has been strong over the past six quarters as Delta achieved an operating margin of 7.4% for the fourth
quarter of 2022.30
2.2 Air Traffic Activity and Trends
This section analyzes historical trends in air traffic activity at the Airport including enplaned passengers, aircraft
operations, and landed weight. It also discusses the primary factors affecting these trends. This section identifies,
to the extent data is available, air traffic trends at the Airport that have been impacted by the COVID-19 pandemic.
2.2.1 Enplaned Passengers
Passenger activity at an airport drives numerous revenues and financial measures including such items as non-
airline revenues (e.g., parking, rental cars, terminal concessions, etc.), Passenger Facility Charge (PFC)
revenues, rental car Customer Facility Charge (CFC) revenues, and FAA Airport Improvement Program (AIP)
entitlement grant distributions. Enplaned passengers are also the denominator for airline cost per enplaned
passenger (CPE). The relationship of the enplaned passengers to the Airport’s financial performance is discussed
in more detail in Chapter 4 of this Report. Table 2-9 presents the historical enplaned passengers at the Airport
categorized by domestic and international for the period of FY 2012 through FY 2023 year-to-date.
2.2.1.1 FY 2012 – FY 2019
From FY 2012 through FY 2019, enplaned passenger traffic at the Airport experienced a generally consistent
upward trend. Enplaned passengers at the Airport increased from approximately 10.1 million in FY 2012 to
approximately 13.1 million in FY 2019, representing a CAGR of 3.7%. Since the Airport predominantly serves
domestic traffic, the majority of the increase in passenger levels was domestic. However, international enplaned
passengers have increased at a significantly faster rate from FY 2012 to FY 2019 as compared to domestic
enplaned passengers (a CAGR of 14.4% versus 3.4%, respectively).
Domestic O&D traffic has been the segment most attributable to passenger growth in recent years. From FY 2012
through FY 2019, domestic O&D passengers increased at a CAGR of 5.5% compared to 1.0% in domestic
connecting passengers. Nearly 80% of the growth in total passengers from FY 2012 through FY 2019 was
domestic O&D passengers. This increase in O&D traffic led to a shift in the overall percentage of O&D
passengers at the Airport over that period. In FY 2012, approximately 51% of total passengers at the Airport were
O&D but in FY 2019, approximately 58% of total passengers at the Airport were O&D. As shown on Table 2-9,
domestic O&D enplaned passengers in FY 2022 exceeded FY 2019 levels.
29 Operating margin is the percentage of revenue a company retains after adjusted for expenses.
30 2022 SEC 10-Q filing for Delta Air Lines accessed November 2022.
Report of the Airport Consultant Salt Lake City Department of Airports
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Table 2-9 Historical Enplaned Passengers (FY 2012 – FY 2022 and FY 2023 Year-to-Date)
Fiscal
Year
Domestic
O&D
Domestic
Connecting International Total
Year-Over-Year
Growth Rate
FY 2012 5,047,049 4,869,600 208,437 10,125,086
FY 2013 5,207,779 4,665,420 169,577 10,042,776 -0.8%
FY 2014 5,238,496 4,876,640 179,558 10,294,694 2.5%
FY 2015 5,646,557 4,963,342 223,809 10,833,708 5.2%
FY 2016 6,003,089 4,984,784 305,138 11,293,011 4.2%
FY 2017 6,458,910 4,958,050 433,260 11,850,220 4.9%
FY 2018 6,988,693 4,940,863 490,647 12,420,203 4.8%
FY 2019 7,324,128 5,231,588 534,346 13,090,062 5.4%
FY 2020 5,694,554 4,018,891 382,287 10,095,732 -22.9%
FY 2021 4,240,934 3,293,039 176,380 7,710,353 -23.6%
FY 2022 7,416,912 4,960,059 425,247 12,802,218 66.0%
FY 2022 YTD1 8,337,844
FY 2023 YTD1 8,606,307 3.2%
Range Average Annual Growth Rate
FY 2012-19 5.5% 1.0% 14.4% 3.7%
FY 2019-22 0.4% -1.8% -7.3% -0.7%
FY 2012-22 3.9% 0.2% 7.4% 2.4%
1 FY 2022 and FY 2023 year-to-date (YTD) data is through February 2022 and February 2023 respectively.
Source: Salt Lake City Department of Airports, Air Traffic Statistics, accessed March 2023.
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44 | Landrum & Brown
From FY 2012 through FY 2019, Delta enplaned passengers increased from 7.4 million to 9.4 million, resulting in
a CAGR of 3.4%, slightly higher than the airline’s increase in seating capacity during that time, which increased at
a CAGR of 3.1%. Existing markets accounted for the majority of this increase in seating capacity with LAX, PDX,
DEN, and SEA having the most seats added. However, there were some notable new markets added since FY
2012 including Raleigh-Durham International Airport (RDU), Fort Lauderdale-Hollywood International Airport
(FLL), and Amsterdam Airport Schiphol (AMS). The remainder of the growth in enplaned passengers was
primarily from American, United Airlines (United), and JetBlue Airways (JetBlue) as well as the start of service by
Alaska Airlines (Alaska) during this period.
2.2.1.2 COVID-19 Pandemic Impact: FY 2020 – FY 2023 (Year-to-Date)
Beginning in March 2020, enplaned passengers at the Airport decreased dramatically because of the impacts
associated with the COVID-19 pandemic. These impacts included international travel restrictions and stay-at-
home orders throughout the U.S. Overall, enplaned passengers decreased by 61.7% in CY 2020 as compared to
CY 2019 levels with most, if not all, of the impact occurring after mid-March 2020 when the COVID-19 pandemic
generally took hold in the U.S. Figure 2-8 presents the monthly enplaned passengers for the 12 months prior to
the pandemic through year-to-date FY 2023. As shown, in March 2020, enplaned passengers decreased by
approximately 49.2% from March 2019. The decline continued into April when enplaned passengers were 91.9%
lower than April 2019. The recovery in enplaned passengers at the Airport plateaued somewhat in November
2020 through January 2021 with monthly totals being down around 50% as compared to the same months in the
prior year. In February 2021, enplaned passengers recovered to be about 48.9% down from February 2020. In
April 2021, enplaned passengers were up 763.2% when compared to the low point during the pandemic in April
2020, but were still down 29.7% as compared to April 2019. In May 2021, enplaned passengers exceeded one
million for the first time since the beginning of the COVID-19 pandemic and were down 11.6% as compared to
May 2019. Since May 2021, enplaned passengers have been hovering at approximately 95% of the pre-pandemic
levels with some months faring better than others. From December 2021 through March 2022, enplaned
passengers were down as much as 14.2%. Since March 2022, enplaned passengers have been nearing recovery
to pre-pandemic levels. To date, there have been three months (November 2021, September 2022, and
November 2022) where enplaned passengers exceeded pre-pandemic levels. Most of the direct effects of the
COVID-19 pandemic have subsided. However, the ripple effects are still felt through the industry in terms of pilot
and staffing shortages, slow aircraft deliveries, and a softening of the economy. Details of these effects are
reviewed in Section 2.3.
Report of the Airport Consultant Salt Lake City Department of Airports
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Salt Lake City International Airport | 45
Figure 2-8 Monthly Enplaned Passengers (March 2019 – February 2023)
Source: Salt Lake City Department of Airports, Air Traffic Statistics, accessed March 2023.
Figure 2-9 depicts the impacts associated with the COVID-19 pandemic to passenger checkpoint throughput at
both the Airport and for the overall U.S based on data from the TSA. Checkpoint throughput is a good indicator for
the recovery of O&D passengers. This figure presents the recovery trend for passenger checkpoint throughput as
a percent of 2019 levels. As shown, the impact to the Airport’s passenger checkpoint throughput tracked closely
with the nationwide trend early in the pandemic, decreasing to an unprecedented trough of around -91.1% of the
prior year’s levels in April 2020. Starting in May 2020, TSA checkpoint throughput for the Airport and the U.S.
started to recover. Recovery for the Airport has consistently been higher than the nation as a whole. The Airport
exceeded monthly 2019 levels for the first time since the pandemic in April 2022 when it was 107% of April 2019.
In January 2023, the Airport was 105.5% of January 2019 TSA checkpoint throughput levels, while the overall
U.S. airport average was at 95.1%.
WHO declared the
COVID-19 outbreak a
global pandemic on
March 11, 2020
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Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
46 | Landrum & Brown
Figure 2-9 Comparison of Airport and U.S. Monthly TSA Checkpoint Throughput
(January 2020 – January 2023)
Sources: Salt Lake City Department of Airports, accessed March 2023. Transportation Security Administration, accessed
March 2023.
2.2.2 Aircraft Operations
Airlines’ decisions on aircraft type and the number of operations to accommodate passenger demand ultimately
determine overall aircraft landed weight. Airlines are constantly evaluating how to best serve passenger demand
with their available aircraft fleet. In markets that exhibit strong business travel, an airline may decide to operate
smaller aircraft on the route several times per day to offer customers more choice and redundancy. In other
cases, an airline may choose to offer larger aircraft and less frequency. Airlines also make decisions to change
aircraft capacity on particular routes in response to load factors and profitability. Aircraft fleet mix and operations
are important considerations for airport operators when planning for the appropriately sized airport facilities and to
ensure the airport has sufficient capacity to accommodate operations in the future. Table 2-10 presents the
aircraft operations at the Airport from FY 2012 through FY 2023 year-to-date.
105.5%
95.1%
WHO declared the
COVID-19 outbreak a
global pandemic on
March 11, 2020
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Salt Lake City International Airport United States
Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport | 47
Table 2-10 Historical Aircraft Operations (FY 2012 – FY 2022 and FY 2023 Year-to-Date)
Fiscal
Year Passenger All-Cargo
General
Aviation Military Total
Year-Over-
Year Growth
Rate
FY 2012 249,038 16,520 73,389 4,170 343,117
FY 2013 236,790 17,942 74,215 2,044 330,991 -3.5%
FY 2014 237,700 18,098 66,620 2,190 324,608 -1.9%
FY 2015 237,948 18,484 60,824 2,738 319,994 -1.4%
FY 2016 237,294 19,434 50,879 7,978 315,585 -1.4%
FY 2017 247,150 20,240 48,843 7,202 323,435 2.5%
FY 2018 250,904 20,382 53,695 7,037 332,018 2.7%
FY 2019 253,666 20,618 61,117 5,751 341,152 2.8%
FY 2020 216,320 20,604 63,326 2,792 303,042 -11.1%
FY 2021 219,808 20,672 68,469 3,190 312,139 3.0%
FY 2022 245,840 20,296 69,370 3,001 338,507 8.4%
FY 2022 YTD1 231,026
FY 2023 YTD1 214,056 -7.3%
Range Average Annual Growth Rate
FY 2012-19 0.3% 3.2% -2.6% 4.7% -0.1%
FY 2019-22 -1.0% -0.5% 4.3% -19.5% -0.3%
FY 2012-22 -0.1% 2.1% -0.6% -3.2% -0.1%
1 FY 2022 and FY 2023 year-to-date (YTD) data is through February 2022 and February 2023 respectively.
Source: Salt Lake City Department of Airports, Air Traffic Statistics, accessed March 2023.
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Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
48 | Landrum & Brown
2.2.2.1 FY 2012 – FY 2019
Aircraft operations at the Airport declined from FY 2012 through FY 2016 as network carriers shifted from smaller
regional jets to narrow-body aircraft. However, from FY 2016 to FY 2019, aircraft operations at the Airport have
increased consistently. As shown, total aircraft operations in FY 2019 were slightly lower than such levels in FY
2012; however, air carrier aircraft operations in FY 2019 were about 1.9% higher than such levels in FY 2012. The
main category that decreased over this period was general aviation aircraft operations.
2.2.2.2 COVID-19 Pandemic Impact: FY 2020 – FY 2023 (Year-to-Date)
In response to the significant decrease in enplaned passengers in the U.S. and at the Airport during the ongoing
COVID-19 pandemic, the airlines reduced the number of daily flights. Figure 2-10 depicts the monthly aircraft
operations for the 12 months prior to the pandemic through year-to-date 2023. As shown, starting in March 2020,
aircraft operations decreased by approximately 14.4% from March 2019, compared to a49.2% decrease in
enplaned passengers. Normally, aircraft operations would be more directly related to enplaned passengers.
However, there was an initial reluctance to remove flights because of the implementation of social distancing
practices (i.e., restricting the use of middle seats) and to a smaller degree the continued operations of all-cargo
airlines that were impacted to a lesser degree by the pandemic. The decline continued into April 2020 and May
2020 when aircraft operations were 49.7% and 52.2% lower than the same months in the prior year, respectively.
Since May 2020, aircraft operations at the Airport have started to recover. The recovery in aircraft operations
stalled somewhat from December 2020 through February 2021 but strong growth resumed in March 2021 when
operations increased 10.8% when compared to March 2020. In April 2021, aircraft operations were 93.3% greater
than in April 2020, which was the low point of the pandemic. From June 2021 through February 2023, aircraft
operations have remained at approximately 95.9% of pre-pandemic levels with certain months in CY 2021
increasing over pre-pandemic levels.
Figure 2-10 Monthly Aircraft Operations (March 2019 – February 2023)
Source: Salt Lake City Department of Airports, Air Traffic Statistics, accessed March 2023.
WHO declared the
COVID-19 outbreak a
global pandemic on
March 11, 2020
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Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport | 49
For YE March 2023, scheduled passenger aircraft operations were 9.7% below YE March 2020. Airlines used the
downturn in passenger demand during the pandemic to accelerate the retirement of certain aircraft, in particular
the older 50-seat small regional jets; older variants of the Boeing 737, Airbus A320, and Airbus A321; and the
Boeing 757 aircraft. In YE March 2020, small regional jets accounted for 11.9% of the scheduled departures at the
Airport. These flights are now mostly handled by large regional and in some cases narrow-body aircraft. In
YE March 2023, small regional jets only accounted for 5.2% of the scheduled departures. A large portion of the
older Boeing 737 and Airbus A320 aircraft have been replaced with the larger Boeing 737 Max 8, Boeing 737 Max
9, Airbus 320neo, and Airbus A321neo aircraft. These changes have resulted in the average aircraft size
increasing from 121 seats per scheduled departure in YE March 2020 to 132 in YE March 2023. As a result,
seating capacity has almost reached pre-pandemic levels. For YE March 2023, scheduled passenger seating
capacity was just 1.3% below YE March 2020.
2.2.3 Aircraft Landed Weight
Aircraft landed weight, expressed in 1,000-pound units, is the sum of the maximum gross certificated landing
weight as certified by the FAA for passenger and all-cargo aircraft landing at the Airport. Per the Airport Use and
Lease Agreement with the Signatory Airlines that operate at the Airport, aircraft landed weight is used as the
denominator in the calculation of landing fees that are used to recover the net cost of the airfield. Therefore,
landed weight is an important measure for the Department as it provides a method to recover costs associated
with the airfield from each airline based on its share of landed weight. Table 2-11 presents the landed weight at
the Airport from FY 2012 through FY 2023 year-to-date.
2.2.3.1 FY 2012 – FY 2019
Aircraft landed weight at the Airport increased from 12.6 million-pound units in FY 2012 to 15.5 million-pound units
in FY 2019, resulting in a CAGR of 3.0%. Both passenger airlines and all-cargo airlines contributed to landed
weight growth, increasing at a CAGR of 2.8% and 4.7%, respectively. A significant portion of the all-cargo airlines’
landed weight growth can be attributed to increased e-commerce traffic at the Airport during this period.
2.2.3.2 COVID-19 Pandemic Impact: FY 2020 – FY 2023 (Year-to-date)
Overall, aircraft landed weight decreased by 12.3% in FY 2020 as compared to FY 2019 levels with the primary
impacts occurring after mid-March 2020. Passenger airlines accounted for the decrease in landed weight over this
period as they were down by 13.7%. However, all-cargo airlines landed weight increased in FY 2020 as compared
to FY 2019 by 3.7%, which mitigated the overall decrease in landed weight at the Airport. This trend was generally
experienced throughout the U.S. as all-cargo carriers have experienced some growth since the COVID-19
pandemic as the demand for cargo services has remained strong.
Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
50 | Landrum & Brown
Table 2-11 Historical Landed Weight in thousand-pound units (FY 2012 – FY 2022 and FY 2023
year-to-date)
Fiscal
Year
Passenger
Airlines All-Cargo Total
Year-Over-Year
Growth Rate
FY 2012 11,731,536 873,214 12,604,750 20.9%
FY 2013 11,463,695 942,557 12,406,252 -1.6%
FY 2014 11,740,729 938,309 12,679,038 2.2%
FY 2015 12,202,986 997,992 13,200,978 4.1%
FY 2016 12,511,833 1,069,830 13,581,663 2.9%
FY 2017 13,303,497 1,106,147 14,409,644 6.1%
FY 2018 13,737,381 1,171,564 14,908,945 3.5%
FY 2019 14,263,691 1,201,369 15,465,060 3.7%
FY 2020 12,315,209 1,246,304 13,561,513 -12.3%
FY 2021 12,631,435 1,356,217 13,987,652 3.1%
FY 2022 14,668,929 1,320,235 15,989,164 14.3%
FY 2022 YTD1 9,663,543
FY 2023 YTD1 9,168,764 -5.1%
Range Average Annual Growth Rate
FY 2012-19 2.8% 4.7% 3.0%
FY 2019-22 0.9% 3.2% 1.1%
FY 2012-22 2.3% 4.2% 2.4%
1 FY 2022 and FY 2023 year-to-date (YTD) data is through January 2022 and January 2023 respectively.
Source: Salt Lake City Department of Airports, Air Traffic Statistics.
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Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport | 51
Figure 2-11 depicts the monthly aircraft landed weight for the 12 months prior to the outbreak through year-to-
date FY 2023. As shown, starting in March 2020, aircraft landed weight decreased by approximately 11.7% from
March 2019, compared to decreases of 49.2% for enplaned passengers and 14.8% for aircraft operations. The
decline continued into May 2020 when aircraft landed weight was 63.2% lower than May 2019. In May 2020,
aircraft landed weight at the Airport started to recover. The recovery in aircraft landed weight stalled somewhat in
December 2020 through February 2021. In March 2021, landed weight increased 5.4% compared to March 2020
but was still down 7.0% from March 2019. In April 2021, aircraft landed weight was 127.7% greater than in April
2020, which was the low point of the pandemic. Aircraft landed weight in April 2021 was also higher than April
2019 levels by 0.3%. Aircraft landed weight continued to exceed 2019 levels through November 2021. However,
since then aircraft landed weight has been consistently under pre-pandemic levels with the exception of
September 2022 and November 2022. In January 2023, aircraft landed weight was 3.8% lower than January
2022.
Figure 2-11 Monthly Landed Weight (March 2019 – January 2023)
Source: Salt Lake City Department of Airports, Air Traffic Statistics.
WHO declared the
COVID-19 outbreak a
global pandemic on
March 11, 2020
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Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
52 | Landrum & Brown
2.3 Key Factors Affecting Air Traffic Demand
The following section addresses certain key factors that could impact air traffic activity, both nationwide and at the
Airport.
2.3.1 The COVID-19 Pandemic
While passenger traffic, and to a lesser extent aircraft operations and landed weight, were dramatically and
adversely affected by the impacts associated with the COVID-19 pandemic initially, passenger traffic started to
recover during the late spring of 2020. However, during the fall of 2020, the recovery seemed to stall before more
recovery during the holiday season in 2020. The recovery of air traffic nationwide slowed again during the early
winter months in 2021 but had a more rapid recovery over the rest of 2021. Travel over the holiday season in
2021/2022 was strong; however, airline staffing issues caused in part by COVID-19 variants, along with winter
weather, caused many flight cancelations and delays. Travel over the holiday season in 2022/2023 was also
generally strong; however, weather impacts across the U.S. and operational issues experienced by Southwest
Airlines also caused many flight delays and cancelations. On a national level, the ongoing effects of the COVID-
19 pandemic on air travel have diminished when compared to the past two years.
It should be noted that recovery has not been uniform across all segments. Strong growth in leisure travel has
been the driver of the recovery while business travel still remains below pre-pandemic levels. Delta’s domestic
corporate sales in the quarter ended December 2022 were 80 percent recovered to 2019 levels.31 Recent
corporate survey results indicate that 96 percent of companies expect their travel will stay the same or increase
sequentially in the quarter ended March 2023.32 The US Travel Association projects that the volume of business
travel by air will recover to around 98% of pre-pandemic levels in 2023 with full recovery by 2024.33
2.3.2 Economic Conditions and Events
Historically, the U.S. economy, as measured by GDP, has generally grown at a relatively steady rate, averaging
3.1% per annum between 1960 and 2019. The rate of growth had been remarkably stable reflecting both the size
and maturity of the U.S. economy. Individual years have fluctuated from the long-term trend for a variety of
reasons including macroeconomic factors, fuel shocks, war, and terrorist attacks.
Prior to 2020, there were two official economic recessions in the U.S. in the 21st century. The first occurred
between March 2001 and November 2001 and was compounded by the September 11, 2001 terrorist attacks.
The negative impact of these events on the airline industry is well documented. The recession itself was short-
lived by historical standards and the economy returned to positive growth quickly, fueled by a gradual but
prolonged reduction in interest rates. The Great Recession occurred between December 2007 and June 2009.34
As a result of the Great Recession, the nation’s unemployment rate rose from 5.0% in December 2007 to a high
of 10.0% in October 2009.35
31 Delta Air Lines, Delta Announces December Quarter and Full Year 2022 Profit.
32 Ibid
33 CAPA Center for Aviation, After slow end to 2022, the business travel outlook is turning more positive for 2023, March 2023.
34 National Bureau of Economic Research, U.S. Business Cycle Expansions and Contractions, September 20, 2010.
35 Ibid.
Report of the Airport Consultant Salt Lake City Department of Airports
DRAFT 3 - April 20, 2023
Airport Revenue Bonds, Series 2023
Salt Lake City International Airport | 53
The outbreak of COVID-19 in early 2020 and the declaration of a pandemic by the WHO on March 11, 2020,
coupled with the subsequent resulting travel restrictions led to the disruption of economies around the world,
resulting in dramatic increases in unemployment and significant decreases in air traffic. According to the Bureau
of Economic Analysis (BEA), real GDP decreased at an annual rate of 31.4% in the second quarter of 2020 after
decreasing by 5.0% in the first quarter of 2020. In comparison, the worst decrease in GDP during the Great
Recession was 8.4% in the fourth quarter of 2008. There was a significant recovery in GDP in the third quarter of
2020, increasing 33.4%. Growth was followed by increases of 4.3% in the fourth quarter of 2020, 6.3% in the first
quarter of 2021, and 6.5% in the second and third quarters of 2021. In the second quarter of 2021, GDP
exceeded the level experienced in the fourth quarter of 2019.
Figure 2-12 depicts the magnitude of the impact the COVID-19 pandemic had on the United States economy
when compared to the Great Recession.
Traditionally, two consecutive quarters of contraction is the benchmark used to determine if a country has entered
a recession. The National Bureau of Economic Research defines a recession as a significant decline in economic
activity that is spread across the economy and lasts more than a few months.36 Economic markers such as
unemployment, rising wages, and consumer spending indicate that the economy is stronger than what is
indicated by the contraction in GDP. The second estimate for fourth quarter 2022 shows a 2.7% growth in GDP,
representing a second consecutive quarter of positive growth.
Figure 2-12 United States Economic Impact of the COVID-19 Pandemic
Source: U.S. Bureau of Economic Analysis, National Income and Product Accounts, March 2023.
36 National Bureau of Economic Research, Business Cycle Dating.
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Salt Lake City Department of Airports Report of the Airport Consultant
DRAFT 3 - April 20, 2023
54 | Landrum & Brown
Figure 2-13 shows how enplaned passenger traffic in the U.S. has experienced long-term growth. During periods
of economic contractions and exogenous events, there is a notable decline in passenger volumes, and during the
subsequent economic expansions and recovery periods, there is significant growth in passenger volumes.
Additionally, exogenous shocks such as terrorist attacks have generally had a short but significant impact on
passenger volumes. As presented in this figure, the COVID-19 pandemic has been the most disruptive event to
impact aviation in history. There is still much uncertainty around when air traffic on a national level will recover to
“pre-COVID-19” levels. Additionally, in the short-term, certain factors such as the ability to add capacity given pilot
shortages (discussed below) are impacting airline traffic.
Figure 2-13 U.S. Aviation System Shocks and Recoveries (through October 2022)
Note: Excludes non-revenue enplaned passengers.
Source: U.S. Bureau of Transportation Statistics, U.S. Air Carrier Traffic Statistics; National Bureau of Economic
Research, U.S. Business Cycle Expansions and Contractions.
PATCO Strike
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COVID-19 Pandemic
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Increases in inflation can have a negative impact on passenger traffic if inflation increases at a faster rate than
income. The consumer price index (CPI) is a measure of the average change over time in the prices paid by
urban consumers for consumer goods and services. Consumer prices began to increase in April 2021 as the
country continued to recover from the recession associated with the COVID-19 pandemic, driven in large part by
rising fuel and food prices. Global supply chain issues also attributed to increases to the CPI. The average cost of
goods and services began to climb at an accelerated rate beginning June 2021 with items like food, fuel, and
housing being directly impacted. In June 2022 the CPI increased to 9.1% over June 2021. Since June 2022, the
increase in CPI has slowed. In January 2023, the CPI increased to 6.4% over January 2022. Figure 2-14
graphically depicts how CPI in the U.S. has changed since January 2007. Inflation has reached historically high
levels that have not been experienced for approximately 40 years.
Figure 2-14 Consumer Price Index (January 2007 – January 2023)
Source: United States Bureau of Labor Statistics, Consumer Price Index (CPI) Databases.
How inflation is impacting air travel is somewhat difficult to assess at this time. According to a study from
Bankrate, 43% of U.S. adults were planning to travel during the holiday season of 2022. However, a majority
(79%) indicated changing their plans due to inflation and rising prices. In the study, holiday travelers were
planning to use the following tactics in an effort to mitigate costs: traveling for fewer days, engaging in less
expensive activities, opting for cheaper accommodations and destinations, taking fewer trips, and traveling
shorter distances. Increasing fuel prices and airfares have resulted in 23% of travelers saying they will drive rather
than fly. However, 12% are deciding on flying in place of driving.37 Over time, it is anticipated that inflation will
return to rates historically experienced over the long term, and that demand for air travel will return to its historical
relationship with inflation.
37 Bankrate, Inflation, rising prices causing 79% of holiday travelers to change their plans, October 4, 2022.
10.1%
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At present, there is much uncertainty around the global economy and the events currently unfolding with the
COVID-19 pandemic, the war between Russia and Ukraine, a global recession, oil prices, and inflation. Future
waves of COVID-19, a prolonged or expansion of the war beyond Russia and Ukraine, oil prices, other
socioeconomic conditions, and their impacts to the global economy could have a further negative impact on
national air passenger demand in the future.
2.3.3 The U.S. Airline Industry
2.3.3.1 Airline Profitability
In 2008 and 2009, the U.S. airline industry decreased capacity, particularly in short-haul markets with smaller,
short range aircraft types. The result was significant improvement in yields, RASM, and subsequent profitability
prior to outbreak of the COVID-19 pandemic. In the years prior to the COVID-19 pandemic, the U.S. airline
industry was at its most stable, profitable point in history. According to the Bureau of Transportation Statistics
(BTS), the 23 U.S. scheduled passenger airlines reported a pre-tax net operating profit of $15.8 billion in CY
2019, which was a 19.7% increase from CY 2018 and marked the eleventh consecutive year of pre-tax operating
profits. The scheduled passenger airlines reported an operating profit margin of 7.5% in 2019, which was up from
6.3% in 2018.38 Profitability during this period can also be attributed to airlines unbundling services and increasing
the use of ancillary fees such as charges for checked baggage.
As a result of the impacts of the COVID-19 pandemic, U.S. airlines incurred record losses in 2020 and into 2021.
The U.S. DOT has reported that U.S. scheduled passenger airlines reported four straight quarters of after-tax net
losses beginning in the second quarter of 2020. For the four quarters ending first quarter 2021, airlines
experienced an aggregate after-tax net losses of $34.0 billion.39 However, U.S. airlines had a $1.0 billion profit in
the second quarter of 2021, the first profit since the beginning of the COVID-19 pandemic, followed by a $2.7
billion profit in the third quarter of 2021.40 The International Air Transport Association (IATA) estimates that globally
airlines lost $126.4 billion in 2020. In 2021, IATA projects losses to be cut to $47.7 billion as revenues rise to $458
billion.41 To help support U.S. air carriers through the pandemic crisis, in March 2020, the U.S. Congress passed
by unanimous vote the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Under Title IV of the
CARES Act, Congress approved $500 billion in federal assistance to severely distressed sectors of the economy
as part of the larger $2 trillion stimulus package. The approved programs include $61 billion to the airline sector
as follows:
i) $29 billion in loans and loan guarantees for air carriers, FAA Part 145 aircraft repair stations and ticket
agents;
ii) $32 billion in payroll protection grants for air carriers and their contractors; and
iii) Relief to air carriers from federal excise taxes that apply to transporting passengers and cargo and the
purchase of aviation jet fuel.
38 Bureau of Transportation Statistics, 2019 Annual and 4th Quarter U.S. Airline Financial Data.
39 Bureau of Transportation Statistics, U.S. Airlines Narrow Net Loss in 1st Quarter 2021 from 4th Quarter 2020,
https://www.bts.gov/newsroom/us-airlines-narrow-net-loss-1st-quarter-2021-4th-quarter-2020.
40 Bureau of Transportation Statistics, U.S. Airlines’ Net Profit in 3rd Quarter 2021 Nearly Triples 2nd Quarter,
https://www.bts.gov/newsroom/us-airlines-net-profit-3rd-quarter-2021-nearly-triples-2nd-quarter.
41 International Air Transport Association, Reduced Losses but Continued Pain in 2021, https://www.iata.org/en/pressroom/pr/2021-04-21-
01/
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The $25 billion to passenger air carriers, $4 billion to cargo air carriers, and $3 billion to contractors were
allocated for support under the CARES Act funds.42 As a condition of accepting these funds, U.S. airlines were
required to (1) refrain from imposing involuntary furloughs on U.S.-based employees or reducing employee pay or
benefits through September 30, 2020; (2) maintain certain limitations on executive compensation through March
24, 2022; (3) suspend the payment of dividends or other distributions and cease stock buybacks through
September 30, 2021; and (4) continue service as is reasonable and practicable under DOT regulations. Enacted
on December 27, 2020, the Consolidated Appropriations Act (including CARES) created the Payroll Support
Program Extension (PSP2) which allocated another $15 billion to passenger air carriers and $1 billion to
contractors. On December 27, 2020, the Coronavirus Response and Relief Supplemental Appropriations Act
(CRRSAA) was signed and provided $2 billion in economic relief to airports. Most recently, the American Rescue
Plan Act of 2021 extended assistance to passenger air carriers and contractors that received financial assistance
under PSP2 for an additional $14 billion and $1 billion respectively.
Jet fuel prices have risen sharply since the start of the Russia-Ukraine war, and upward pressures on fuel prices
are expected to continue. Based on U.S. DOT Form 41 data for 2021, fuel costs represented just over 33% of
airlines’ operating expenses. All airlines will be directly impacted by the rising jet fuel prices and have two options
in terms of managing the increased cost of fuel; they must either absorb the costs themselves, which will further
impact airline profit margins, or pass the higher fuel costs on to passengers through higher air fares which could
reduce demand for air travel.
As discussed above, the airlines are expected to continue to recover financially as air traffic recovers to pre-
pandemic levels. It is generally assumed that the airlines will continue to right-size capacity to meet demand and
evolve business models in the near-term.
2.3.3.2 Airlines Bankruptcies and Mergers
Over the past two decades, the U.S. airline industry has undergone a significant transformation. Although it had
been profitable in recent years prior to the impacts associated with the COVID-19 pandemic, the U.S. airline
industry cumulatively experienced losses of approximately $62 billion from 2000 through 2009 on domestic
operations. Many airlines filed for Chapter 11 bankruptcy protection and some ceased operations altogether.
During this period, airlines suffered from excess capacity, which drove down yields. Yields adjusted for inflation
had dropped by approximately 70%. With oil prices spiking to nearly $150 per barrel in 2008, industry changes
were critical. As a result, all the major network airlines restructured their route networks and reached agreements
with lenders, employees, vendors, and creditors to decrease their cost structure.
As discussed above, the airlines have experienced significant financial difficulty given the significant passenger
decreases caused by the impacts associated with the COVID-19 pandemic. As of December 9, 2021, five U.S.
airlines including three regional carriers and one charter airline ceased operating primarily as a result of the
COVID-19 pandemic.43 Since December 2021, no additional U.S. scheduled mainline passenger airline have filed
for bankruptcy protection or ceased operations.
42 Department of the Treasury, Payroll Support Program Payments, https://home.treasury.gov/policy-issues/cares/preserving-jobs-for-
american-industry/payroll-support-program-payments
43 The five U.S. airlines that have gone bankruptcy in 2020 are the regional carriers: ExpressJet (UA), Trans States Airlines (UA), and
Compass Airlines (AA and DL), and the charter carriers: Miami Air International, and Shoreline Aviation. The major carriers served by the
regional partner carriers contracted with other carriers to provide regional service.
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Industry consolidation has taken place as a result of competitive pressures and economic conditions. Many
airlines have merged or been acquired since the turn of the 21st century. Figure 2-15 provides a graphical
representation of the major U.S. airline mergers during this period. These mergers have resulted in less
competition among the airlines and increased pricing power. The potential impacts associated with consolidation
include limited industry seats, limited capacity growth, and increases in fares.
Figure 2-15 Major U.S. Airline Mergers of the 21st Century1
Note: Lighter shading indicates bankruptcy.
Source: Airlines for America, U.S. Airline Mergers and Acquisitions.
It is expected that airlines will continue to enter into code-share agreements in attempts to seek competitive
advantages. For example, in early 2021, American entered into partnerships with both Alaska Airlines for markets
in the western U.S. and JetBlue Airways for markets in the eastern U.S. In October 2022, Spirit Airlines
shareholders approved a new merger agreement with JetBlue Airways, which could create the fifth largest airline
in the U.S. This merger is currently being challenged by the U.S. Department of Justice.
Delta Air Lines
Northwest Airlines
United Airlines
Continental Airlines
Southwest Airlines
AirTran Airways
American Airlines
Trans World Airlines
US Airways
American West
Alaska Airlines
Virgin America
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022
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2.3.4 Pilot Shortage
At the onset of the COVID-19 pandemic, airlines were faced with a surplus of personnel resulting from the sudden
and dramatic decline in traffic. As a result, airlines offered their employees buyouts and early retirement
packages. In total, it is estimated that approximately 10% of commercial pilots took early retirement during the
pandemic.44 In addition, an aging pilot population is expected to continue to compound the issues arising from
early retirements caused by the pandemic. FAA airman certification statistics shows that 28% of the 170,086
people with an airline transport pilot (ATP) certificate are 60 years of age or older and are due to retire over the
next five years. In contrast, only 4.4% of people with an ATP certification were under the age of 30.
The recovery of air traffic demand in the U.S. was relatively modest from April 2020 through February 2021.
However, starting in March 2021, passenger demand has increased more rapidly and has since recovered to
more than 90% of the U.S. passenger levels experienced in 2019. As a result of this rapid recovery and the
airlines’ inability to quickly replace their retired pilots, airlines have experienced shortages of trained pilots to fly
aircraft. The pilot shortage problem has been amplified during peak travel periods throughout the year. In
particular, regional airlines have been hit the hardest by the pilot shortage. Unable to provide the wages of the
larger airlines, the regional airlines have been losing their pilots to the mainline carriers who are attempting to fill
their needs. As a result, the regional airlines have had to scale back, or in some cases eliminate service, to
smaller markets including some subsidized through the FAA’s Essential Air Service Program.
In order to meet this demand, airlines are quickly attempting to backfill the positions left open by pilot retirements
by hiring and training new pilots. However, in addition to offering early retirement to their pilots, the airlines also
trimmed back their pilot training programs to cut costs during the pandemic. The Regional Airline Association
estimated that 4,346 new pilots qualified for their ATP certificates in 2021 compared to 6,664 in 2019. The U.S.
airline industry is hoping to add approximately 13,000 pilots in 2022, more than double the previous record in
annual hiring.45
According to a report from Oliver Wyman, by 2029 the increased demand for pilots is expected to outpace the
supply creating a pilot shortage of approximately 60,000 pilots worldwide and nearly 21,000 in North America.46 In
the U.S., there are currently several potential measures being explored to help alleviate the pilot shortage,
including:
Raising the federally mandated retirement age for airline pilots from 65 to 67
Reducing flight-hour requirements before joining a U.S. carrier
Lowering the barrier to entry for training programs such as dropping the requirement for a four-year
degree
Creating gateway programs such as Alaska’s Ascend Pilot Academy and United’s Aviate Academy which
offer financial aid and scholarships to lessen the cost of becoming a pilot
If the pilot shortage becomes more widespread in the industry, the passenger airlines may not be able to meet
future passenger demand, and would be required to reduce their seat capacity, resulting in material impacts to
future passenger traffic in the U.S and internationally.
44 CNN, A shortage of pilots could keep the airlines from making a real comeback.
45 Regional Airline Association, 2021 Regional Airline Association Annual Report.
46 Oliver Wyman, After COVID-19, Aviation Faces a Pilot Shortage.
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On March 1, 2023, Delta ratified a new Pilot Working agreement. The contract, which runs through December
2026, provides the 15,000 pilots with an immediate 18% pay increase and pay increases in each of the
subsequent three years. Under the agreement, Delta will also provide a 1% increase of any pay offered by its
competitors (American and United) under any those airline’s negotiated contracts. The contract also provides paid
maternity and paternal leave, better crew meals, improved health insurance, and more.
2.3.5 Aircraft Shortage
Airlines parked planes during the pandemic as demand declined but now are struggling to have the capacity to
meet the demand as travel has returned. Supply chain issues and staffing shortages have resulted in a significant
slowdown in production of new aircraft. In February 2023, deliveries of the 737 Max aircraft were expected to drop
from 35 in January to the low 20s. Boeing is still optimistic in ramping production up in order to meet its goal of
delivering 400-450 planes this year.47
The shortages due to production are compounded by maintenance delays. According to Oliver Wyman, there is a
12,000 to 18,000 short fall in mechanics.48 In order to overcome this shortage of mechanics, airlines will have to
employ similar solutions as they have been doing with pilots including increased pay and subsidizing the training
process.
2.3.6 Aviation Fuel
The price of oil and the associated cost of jet fuel has historically been one of the largest operating costs affecting
the airline industry. In 2000, jet fuel sold to end users averaged $0.89 per gallon. The average cost of jet fuel
increased steadily through 2007. However, in 2008, crude oil prices and, consequently, jet fuel surged in price as
a result of strong global demand, a weak U.S. dollar, commodity speculation, political unrest, and a reluctance to
materially increase supply. In July 2008, jet fuel reached an average price of $4.01 per gallon, nearly double the
price the year prior. Reduced demand in 2009 stemming from the global financial crisis and subsequent economic
downturn resulted in a sharp decline in price. However, as the economic climate improved and political unrest
continued in the Middle East, oil prices increased in the subsequent three years. The increase in the price of jet
fuel put upwards pressure on airline operating costs. As a result, airlines cut capacity or increased fares, and
sometimes both. The average price of jet fuel dropped significantly in 2015 and 2016, reaching a low of $1.03 per
gallon in February 2016. Since then, jet fuel prices increased steadily to a peak of $2.25 in October 2018 before
falling to $1.70 per gallon in December 2019 due to increased oil supplies. In 2019, jet fuel prices remained fairly
stable, averaging approximately $1.90 per gallon from February 2019 through January 2020.
As a result of the COVID-19 pandemic, the global demand for crude oil and fuel decreased dramatically starting in
January 2020. As a result, the price of crude oil dropped below $20 per barrel in April 2020. Since then, crude oil
supply curtailments have caused oil prices to recover. Prices hovered near $40 per barrel from early June 2020
through December 2020, then increased to $92 per barrel in February 2022. Following the start of the war
between Russia and Ukraine, crude oil prices reached nearly $109 per barrel in March 2022, receded to
approximately $102 per barrel in April 2022 and increased again back to nearly $115 per barrel in June 2022.
47 Reuters, Boeing says parts shortages persist, hampering plane production, February 15, 2023.
48 Oliver Wyman, While A Shortage May Be Inevitable, Aviation Has Options Long-Term
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Jet fuel prices have risen sharply since the start of the Ukraine war and upward pressures on prices will likely
continue, particularly if more stringent sanctions are applied to the Russian energy sector and depending on
potential increases in production elsewhere. The U.S. Energy Information Administration (EIA) provides forecasts
of jet fuel refiner price to end users in a report entitled Short-Term Energy Outlook. In the March 2023 release, the
EIA projects that jet fuel prices will reach 241.3 cents per gallon by December 2024. Figure 2-16 presents the
historical price for jet fuel refiner price to end users and the EIA’s forecast of that price.
Future fuel prices and availability are uncertain and fluctuate based on numerous factors. These can include
supply-and-demand expectations, geopolitical events, fuel inventory levels, monetary policies, and economic
growth estimates. Historically, certain airlines have also employed fuel hedging as a practice to provide some
protection against future fuel price increases.
Aviation fuel costs will continue to impact the airline industry in the future. If aviation fuel costs increase
significantly over current levels, air traffic activity could be negatively affected as airlines attempt to pass costs on
to consumers through higher airfares and fees in order to remain profitable. At this time, alternative fuels are not
yet commercially cost effective.
Figure 2-16 Jet Fuel Prices (January 2002 – December 2024)
Source: U.S. Energy Information Administration, Short-Term Energy Outlook (March 2023).
Jul 2008
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2.3.7 Aviation Security
Since the September 11, 2001, terrorist attacks (9/11), government agencies, airlines, and airport operators have
upgraded security measures to guard against threats and to maintain the public’s confidence in the safety of air
travel. Security measures have included cargo and baggage screening requirements, passenger screening
requirements, deployment of explosive detection devices, strengthening of aircraft cockpit doors, the increased
presence of armed air marshals, awareness programs for personnel at airports, additional intelligence in
identifying high-risk passengers, and new programs for flight crews. Aviation security is controlled by the federal
government through the Department of Homeland Security and the TSA.
Although terrorist events targeting aviation interests would likely have negative and immediate impacts on the
demand for air travel, the industry and demand have historically recovered from such events. There have been
terrorist attacks at airports internationally including at Brussels Airport in March 2016, the Istanbul Atatürk Airport
in June 2016, and the Paris Orly Airport in March 2017. So long as government agencies continue to seek
processes and procedures to mitigate potential risks and to maintain confidence in the safety of aircraft, without
requiring unreasonable levels of costs or inconvenience to the passengers, economic influences are expected to
be the primary driver for aviation demand as opposed to security and safety.
2.3.8 National Air Traffic Capacity
The U.S. aviation system has a major impact on the national economy because it provides a means of
transporting people and cargo over long distances in a relatively short period. As demand for air travel increases,
the national aviation system must maintain enough capacity to allow for travel without unacceptable delays or
congestion. It is generally assumed that the required infrastructure improvements needed to maintain capacity will
keep pace with demand. Although not likely over the period of FY 2023 to FY 2030 (Projection Period) evaluated
herein, the inability of the national aviation system to keep pace with demand could create congestion and delays
on a national level that could adversely affect the passenger experience and impact future demand.
2.4 Air Traffic Activity Projections
This section presents the air traffic activity projections including the key assumptions used to develop those
projections. The air traffic activity projections included in this Report represent L&B’s opinion, based on
information available to L&B as well as estimates, trends and assumptions that are inherently subject to
economic, political, regulatory, competitive and other uncertainties, all of which are difficult to predict and which
will be beyond the control of L&B. Projected results may not be realized, and actual results could be significantly
higher or lower than projected. L&B is not obligated to update, or otherwise revise, the projections or the specific
portions presented to reflect circumstances existing after the date when made or to reflect the occurrence of
future events, even in the event that any or all of the assumptions are shown to be in error.
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2.4.1 Projection Assumptions
Projections of air traffic activity were developed based on an analysis of the underlying economic conditions of the
ASA, airline traffic trends, and an assessment of Delta’s continued use of the Airport for hubbing activities. In
general, it was assumed that in the long-term, growth in O&D passenger traffic at the Airport will occur as a
function of growth in socioeconomic conditions within the ASA. In addition, several other assumptions are
incorporated into the projections including the following:
Over the shorter-term, supply issues will continue to impact capacity; however, subside over the next few
years.
Over the long-term, the airlines will continue to add capacity that is in line with demand and economic
growth.
Long-term nationwide growth in air travel will occur over the Projection Period consistent with forecast
growth in the economy.
After a brief period of near record prices, aviation fuel prices will decrease but remain higher relative to
historical levels.
There will be no major disruption of airline service or airline travel behavior over the Projection Period.
2.4.2 Enplaned Passengers Projection
2.4.2.1 Estimate for FY 2023
An estimate for FY 2023 was developed using year-to-date enplaned passenger counts with current airline
schedules for the remainder of the year. Figure 2-17 provides the monthly departing seats from July 2021 through
June 2023. From July 2022 through January 2023, there were 7.6 million enplaned passengers at the Airport.
Over the same time, there were 8.8 million departing seats, indicating an 86.3% load factor for the first seven
months of FY 2023. There are 6.4 million departing seats scheduled for the remainder of FY 2023. Load factors
for the remaining months were assumed to mirror those in FY 2022 for domestic and international flights. Based
on this assumption, it is estimated that approximately 5.6 million enplaned passengers will depart from the Airport
during the remainder of FY 2023. Therefore, it is estimated that there will be 13.3 million enplaned passengers at
the Airport in FY 2023. This estimation is lower than the Airport’s budgeted amount of 13.9 million enplaned
passengers in FY 2023. The analysis shows that domestic and international enplaned passengers would exceed
FY 2019 levels in FY 2023.
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Figure 2-17 Scheduled Departing Seats at the Airport
Sources: Cirium, Diio Mi: Schedule – Dynamic Table; Landrum & Brown Analysis.
2.4.2.2 Long-Term Projection
A number of standard industry forecasting techniques were considered in order to project enplaned passengers
such as econometric regression modeling, trend analysis, market share, and time series. Landrum & Brown has
determined that econometric regression models are the most appropriate to project enplaned passengers at the
Airport. Econometric regression modeling quantifies the relationship between enplaned passengers and key
socioeconomic variables. This methodology recognizes that the key independent variables will change over time
and assumes that their fundamental relationships with the dependent variables will remain.
The first step in developing the appropriate models was to test the independent, or explanatory, variables against
the dependent variables, domestic and international enplaned passengers. For an econometric model to be
considered appropriate, the following must be true:
Adequate test statistics (i.e., high coefficient of determination (R2) values and low p-value statistics),
which indicate that the independent variables are good predictors of passengers at the Airport.
The analysis does not result in theoretical contradictions (e.g., the model indicates that GDP growth is
negatively correlated with traffic growth).
The results are not overly aggressive or conservative or are incompatible with historical averages.
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Through the testing of multiple sets of independent variables, two univariate linear models, one for domestic O&D
and the other for international, were selected to project enplaned passengers at the Airport. The domestic O&D
model used historical enplaned passenger data from FY 2002 through FY 2019 and the Air Service Area’s GRP
per capita. The international model used historical enplaned passenger data from FY 2012 through FY 2019 and
the Air Service Area’s GRP per capita. These models exhibited strong regression statistics when compared to
models with other combinations of independent variables. The model was used to determine an estimated
number of enplaned domestic O&D and international passengers through FY 2030. In FY 2019, domestic
connecting passengers accounted for 41.7% of the total domestic passengers, it was assumed that domestic
connecting passengers would recover as to this percentage of total domestic passengers by FY 2027. After
recovering to the pre-pandemic share of total passengers, domestic connecting passengers are assumed to
increase at the same rate as domestic O&D passengers, maintaining the FY 2019 percentage of O&D and
connecting passengers.
Based on models and the set of assumptions above, total enplaned passengers are projected to increase at a
CAGR of 3.2% for the period of FY 2023 through FY 2030. The result is that enplaned passengers are projected
to increase from 13.3 million in FY 2023 to 16.6 million in FY 2030. Table 2-12 provided the enplaned passenger
projection by segment.
Table 2-12 Enplaned Passenger Projection (FY 2018 – FY 2030)
Fiscal Year
Enplaned Passengers (in thousands)
Year-Over-
Year Growth
Percent of
FY 2019
Domestic
O&D
Domestic
Connecting International Total
FY 2018 Actual 6,989 4,941 208 10,125
FY 2019 Actual 7,324 5,232 534 13,090 5.4% 100.0%
FY 2020 Actual 5,695 4,019 382 10,096 -22.9% 77.1%
FY 2021 Actual 4,241 3,293 176 7,710 -23.6% 58.9%
FY 2022 Actual 7,417 4,960 425 12,802 66.0% 97.8%
FY 2023 Estimate 7,642 4,957 659 13,258 3.6% 101.3%
FY 2024 7,858 5,220 684 13,762 3.8% 105.1%
FY 2025 8,073 5,493 710 14,276 3.7% 109.1%
FY 2026 8,290 5,779 736 14,806 3.7% 113.1%
FY 2027 8,509 6,078 763 15,351 3.7% 117.3%
FY 2028 8,730 6,236 783 15,749 2.6% 120.3%
FY 2029 8,952 6,395 803 16,150 2.5% 123.4%
FY 2030 9,177 6,555 823 16,555 2.5% 126.5%
Range Average Annual Growth Rate
FY 2019-22 0.4% -1.8% -7.3% -0.7%
FY 2022-30 2.7% 3.5% 8.6% 3.3%
FY 2023-30 2.6% 4.1% 3.2% 3.2%
Sources: Salt Lake City Department of Airports, Air Traffic Statistics. Landrum & Brown analysis.
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2.4.3 Aircraft Landed Weight Projection
During the height of the pandemic, passenger aircraft landed weight per enplaned passenger increased
significantly as load factors dropped due to lower demand and the need to implement social distancing practices.
However, the passenger aircraft landed weight per enplaned passenger declined in FY 2022 and was within the
normal range experienced over the previous eight years. Therefore, it was assumed that this factor would remain
constant through the Projection Period. The result is that passenger landed weight is projected to increase from
approximately 14.7 million-pound units in FY 2022 to 18.4 million-pound units in FY 2030, which represents a
CAGR of 2.9% from FY 2022 through FY 2030.
From FY 2012 through FY 2020, there was a consistent upward trend in all-cargo landed weight. In FY 2021,
there was a higher than anticipated growth in all-cargo landed weight. However, in FY 2022 and year-to-date FY
2023, all-cargo landed weight has been trending downwards. Landrum & Brown believes that this is a correction
to higher growth at the start of the COVID-19 pandemic and is not representative of a long-term trend. For FY
2023, it was assumed that the all-cargo weight would remain at the same rate as it has been year-to-date. For
future years, a linear trend model was used to project future landed weight for all-cargo. The result is that all-
cargo landed weight is projected to increase at a CAGR of 3.3%, increasing from 1.3 million-pound units in FY
2022 to 1.7 million-pound units in FY 2030. Table 2-13 provides the landed weight projection by segment.
Table 2-13 Landed Weight Projection (FY 2018 – FY 2030)
Fiscal Year
Landed Weight (In Millions of Pounds) Year-Over-
Year Growth
Percent of
FY 2019 Passenger All-Cargo Total
FY 2018 Actual 13,737 1,172 14,909
FY 2019 Actual 14,264 1,201 15,465 3.7% 100.0%
FY 2020 Actual 12,315 1,246 13,562 -12.3% 87.7%
FY 2021 Actual 12,631 1,356 13,988 3.1% 90.4%
FY 2022 Actual 14,669 1,320 15,989 14.3% 103.4%
FY 2023 Estimate 15,940 1,220 17,160 7.3% 111.0%
FY 2024 15,280 1,290 16,570 -3.4% 105.9%
FY 2025 15,850 1,360 17,210 3.9% 108.5%
FY 2026 16,440 1,430 17,870 3.8% 111.2%
FY 2027 17,050 1,500 18,550 3.8% 113.9%
FY 2028 17,490 1,570 19,060 2.7% 116.6%
FY 2029 17,940 1,640 19,580 2.7% 119.3%
FY 2030 18,380 1,710 20,090 2.6% 122.1%
Range Average Annual Growth Rate
FY 2019-22 0.9% 3.2% 1.1%
FY 2022-30 2.9% 3.3% 2.9%
FY 2023-30 2.1% 4.9% 2.3%
Sources: Salt Lake City Department of Airports, Air Traffic Statistics. Landrum & Brown analysis.
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2.5 Enplaned Passenger Sensitivity Projection
The sensitivity projection used the same models developed under the base case but assumed a 10% reduction in
the growth in the economic forecasts and assumed that domestic connecting passengers would only recover to
40% of the total domestic passengers, down from 41.7% assumed in the base case. Based on models and the
set of assumptions above, total enplaned passengers are projected to increase at a CAGR of 2.5% for the period
of FY 2022 through FY 2030. The result is that enplaned passengers are projected to increase from 12.8 million in
FY 2022 to 15.8 million in FY 2030. Table 2-14 provided the enplaned passenger projection by segment.
Table 2-14 Enplaned Passenger Sensitivity Projection (FY 2018 – FY 2030)
Fiscal Year
Enplaned Passengers (in thousands)
Year-Over-
Year Growth
Percent of
FY 2019
Domestic
O&D
Domestic
Connecting International Total
FY 2018 Actual 6,989 4,941 208 10,125
FY 2019 Actual 7,324 5,232 534 13,090 5.4% 100.0%
FY 2020 Actual 5,695 4,019 382 10,096 -22.9% 77.1%
FY 2021 Actual 4,241 3,293 176 7,710 -23.6% 58.9%
FY 2022 Actual 7,417 4,960 425 12,802 66.0% 97.8%
FY 2023 Estimate 7,642 4,957 659 13,258 3.6% 101.3%
FY 2024 7,836 5,118 678 13,632 2.8% 104.1%
FY 2025 8,030 5,280 697 14,007 2.7% 107.0%
FY 2026 8,225 5,446 715 14,386 2.7% 109.9%
FY 2027 8,421 5,614 735 14,769 2.7% 112.8%
FY 2028 8,618 5,745 752 15,115 2.3% 115.5%
FY 2029 8,816 5,878 769 15,463 2.3% 118.1%
FY 2030 9,016 6,011 786 15,813 2.3% 120.8%
Range Average Annual Growth Rate
FY 2019-22 0.4% -1.8% -7.3% -0.7%
FY 2022-30 2.5% 2.4% 8.0% 2.7%
FY 2023-30 2.4% 2.8% 2.5% 2.5%
Sources: Salt Lake City Department of Airports, Air Traffic Statistics. Landrum & Brown analysis.
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3 Airport Facilities and Capital Improvement Program
This Chapter provides an overview of existing Airport facilities and describes the New SLC (described herein) and
other planned capital improvements at the Airport, referred to as Other Capital Projects for the purposes of this
Report.
3.1 Existing Airport Facilities
The Airport comprises approximately 9,400 acres of land in Salt Lake County, Utah. It is located approximately
five miles west of downtown Salt Lake City. The Airport is relatively distant from other comparable airports and is
the primary commercial air passenger and cargo service facility for the Salt Lake Valley, the State of Utah, and
portions of southwestern Wyoming, southeastern Idaho, northeastern Nevada, and northwestern Colorado.
Access to the Airport is primarily provided from Interstate 80 via Terminal Drive. Existing Airport facilities are
described in sections below and are graphically illustrated in Figure 3-1.
Figure 3-1 Airport Layout (As of DATE – see note – to be updated)
Source: Department management records
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3.1.1 Airport History
Originally used for aerobatic flights, the Airport began as a cinder-covered landing strip in a marshy pasture called
Basque Flats in 1911. The City purchased 100 acres surrounding the landing strip for $40.00 per acre in 1920,
and the resulting airfield was named Woodward Field. The first commercial passenger flight took place in 1926
with two passengers perched atop U.S. mail sacks, and in 1943, the Airport became a training base and
replacement depot for the U.S. Army Air Force. A history of the Airport’s growth over historical time periods is
summarized below.49
1930s and 1940s: In 1930, the Airport was renamed Salt Lake City Municipal Airport and consisted of
approximately 400 acres, 11 hangars and two gravel runways. In 1933, the City built an airport
administration building that housed a passenger waiting room, mail room, airport manager’s office, other
facilities, and leased office space to the airlines. A third runway was also added in 1933. The Airport
became a training base and replacement depot for the U.S. Army Air Force in 1943.
1950s and 1960s: The three runways were upgraded in 1950 to accommodate the largest commercial jet
aircraft of that time. The first terminal building, former Terminal One, was constructed and dedicated in
1961. In 1968, the Airport was renamed the Salt Lake City International Airport.
1970s and 1980s: Airport property expanded to an area of approximately 7,500 acres. In 1978, Terminal
Two was completed to accommodate the operations of former Western Airlines, a new executive terminal
was opened to serve general aviation needs, and the west runway and taxiway systems were extended.
Terminal One was expanded and remodeled in 1981. The Airport became an operational hub for former
Western Airlines in 1982, which led to facility upgrades. In 1984, Terminal Two was expanded to
accommodate an additional concourse. In 1987, Western Airlines merged with Delta and additional
facilities were constructed to accommodate an expansion of the hub.
1990s and 2000s: A third air carrier runway was added in 1995, in addition to Concourse E and the
International Arrivals Building. In 1999, the FAA opened a new airport traffic control tower (ATCT) and
terminal radar approach control facility. The City hosted the 2002 Olympic Winter Games.
2010s to Present: In FY 2015, the Terminal Redevelopment Program (TRP) started construction for the
quick turn-around facility (QTA), rental car facility site work, rental car service buildings, infrastructure, and
temporary roadway construction and realignments. Construction of the NCP began in January 2018. In
September 2020, the terminal and western portion of Concourse A of the TRP opened. In October 2020,
the western portion of Concourse B opened. The prior terminal building and airside concourses were
demolished shortly after the opening of these facilities. As described later in this chapter, the New SLC
program consists of the TRP and NCP.
3.1.2 Airfield Facilities
The existing airfield consists of three air carrier runways and a general aviation runway. The air carrier runways
are, generally, in a parallel north/south alignment (Runways 16L-34R, 16R-34L, and 17-35). The general aviation
runway is oriented in a northwest/southeast direction (Runway 14-32). Runway 16L-34R is 12,003 feet in length,
Runway 16R-34L is 12,000 feet in length, Runway 17-35 is 9,596 feet in length, and Runway 14-32 is 4,900 feet
in length. All runways are 150 feet wide. The air carrier runways are equipped with high intensity runway lighting
systems, centerline lighting, and touchdown zone lights. Precision instrument landing systems (ILS) were installed
on all ends of each air carrier runway for approaches during instrument flight rules (IFR) conditions. The general
aviation runway (14-32) is not equipped with an ILS.
49 Salt Lake City Department of Airports website (https://www.slcairport.com/about-the-airport/airport-overview/airport-history/), accessed
June 2016.
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3.1.3 Terminal Facilities
The current terminal and western airside concourses were completed as part of the New SLC program and
opened in the fall of 2020. The passenger terminal complex consists of a consolidated passenger terminal, one
attached airside concourse (Concourse A – formerly referred to as the South Concourse), and one parallel
concourse (Concourse B – formerly referred to as the North Concourse) comprising over 1.8 million square feet of
total space. An approximately 1,000-linear-foot underground tunnel connects the western portions of the airside
concourses. This tunnel area provides pedestrian access to Concourse B from Concourse A. The new central
tunnel is expected to open in 2024, with both tunnels remaining open. The terminal is also connected to the
parking garage via the Gateway Center. Figure 3-2 illustrates the Airport’s terminal complex and shows the
general area for future facilities that are under construction.
Level 1 of the Terminal contains a federal inspection services (FIS) area, international baggage claim and recheck
area, tenant administrative offices, a centralized security checkpoint for dedicated employee access, ground
transportation counters, and also serves commercial curbs and other ground transportation functions. Level 2
provides passenger circulation areas and connects landside and airside components of the facility. Public areas
prior to the security checkpoint provide for baggage claim and airline baggage service offices, an expansive
meeter-greeter area, food and beverage and retail concessions, and a centralized security screening checkpoint.
Areas beyond security screening include the main terminal plaza area consisting of 79,000 square feet of
concessions, seating, and circulation space. Level 3 contains the ticketing area for departing passengers, a
30,000-square foot Delta SkyClub, and administrative offices for the Department and other tenants at the Airport.
Departing passengers being dropped off at the Airport arrive on the Level 3 curb. The Airport is served by the
TRAX light rail system owned and operated by the Utah Transit Authority (UTA), which connects the Airport with
downtown Salt Lake City.
There are also two remote hardstand facilities: one with 15 positions being used by Delta and its regional affiliate
partners and another 5-position facility being used on a common-use basis. The 15-gate facility is located east of
Concourse B and the 5-gate facility is north of Concourse B. Delta and its regional affiliate partners operate from
both airside concourses, while all other airlines at the Airport operate on Concourse B. As of May 2023, the
existing airside concourses and hardstand facilities provide for a total of 71 aircraft parking positions, associated
passenger waiting areas and security screening facilities. Of the 71 positions, 51 have passenger loading bridges
and the 20 remote hardstand positions are served through a busing operation and have aircraft access directly on
the apron without passenger loading bridges On October 31, 2023, 17 additional gates are planned to come
online on the eastern portion of the southern concourse, while 15 of the hardstand positions will be closed. Table
3-1 presents the current number of aircraft gate positions at the Airport by concourse and used by the Signatory
Airlines. Section 3.6 of this Report describes future gate counts planned as part of the New SLC.
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Figure 3-2 SLC Terminal Complex
Source: Airport management records, April 2023
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Table 3-1 Aircraft Gate Use at the Airport (As of May 2023)
Airline Concourse A Concourse B Hardstand Total
Alaska - 1 - 1
American - 2 - 2
Delta 30 7 15 52
Frontier - 1 - 1
JetBlue - 1 - 1
Southwest - 4 - 4
United - 3 - 3
Department (common use) - 2 5 8
Total 30 21 20 71
Source: Salt Lake City Department of Airports management records
3.1.4 Public Parking Facilities
Public parking facilities currently located at the Airport consist of the new five-level, short-term parking garage
near the terminal complex that opened as part of the New SLC in September 2020 and long-term economy
surface parking lots. As part of the TRP, the economy lots were reconfigured. In total, these Airport parking
facilities comprise about 152 acres, including the five levels of the garage, and have 14,401 public parking
spaces. The short-term parking garage has 3,469 public parking spaces on levels two through five and is located
adjacent to the passenger terminal. The first floor is dedicated to rental car operations and contains approximately
1,200 ready/return parking spaces. Upper floors are served via two helical ramps. Current pricing for the short-
term parking garage is $35 per day or $55 per day for the Premium Reserved Parking service.
In addition to the new Parking Garage, the Airport also has a substantial amount of surface parking available for
Airport patrons, including a new surface parking area located east of the new parking structure. The surface lot
has 384 parking spaces. The South Economy Parking Lot opened in July 2014 and consists of approximately
2,900 additional parking spaces replacing the economy parking that was displaced by the construction of the new
rental car facilities. The South Economy Parking Lot is integrated with the remainder of the Economy Parking Lot.
To help reduce vehicle traffic congestion in the terminal area, the Department maintains a 132-space Park and
Wait lot and adjacent Touch n’ Go service plaza located west of Terminal Drive, just south of the terminal, where
motorists meeting arriving passengers may wait without charge until passengers are ready to be picked up. The
Park and Wait lot has large electronic signs displaying flight arrival information. Once a flight has arrived and
sufficient time has elapsed for passengers to claim their luggage, the sign indicates “ready for pick up.” To reduce
congestion at the curb, however, the Department encourages drivers to wait until passengers are at the curb,
confirming with their driver via cell phone.
3.1.5 Rental Car Facilities
Rental car operations at the Airport currently are located on the ground floor of the new parking garage adjacent
to the terminal building and include approximately 1,200 ready/return parking spaces. Nine rental car brands are
currently located at the Airport: Alamo, Avis, Budget, Dollar, Enterprise, Hertz, National, Payless and Thrifty. In
addition, six brands are located off-Airport and their customers must use shuttle bus services.
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The rental car service facilities were placed in service in March 2016. These facilities consist of a ‘quick-turn-
around’ (QTA ) facility for fueling and washing cars and three facilities for performing light vehicle maintenance.
The QTA is a two-level building of approximately 468,000 sf with 14 wash and service bays on the first floor and
vehicle storage and parking on the second floor. The Rental Car Service Site (RSS) facility consists of three
single-story service buildings containing a total of approximately 34,000 sf of building space located south of the
QTA. These buildings provide back-of-house maintenance areas for the rental car providers and contain office,
support and storage space.
3.1.6 Transportation Network Companies
The Airport is served by several transportation network companies (TNCs), including both Uber and Lyft. The
Department has set aside dedicated curb space at the Airport for TNC pick-ups, but TNC drivers are required to
wait for customers off-Airport. TNC operations at the Airport have grown substantially since FY 2016, when TNC
operations were first permitted at the Airport and 209,800 transactions were reported. During FY 2022, there were
approximately 1.30 million TNC transactions reported.
In October 2021, the Airport entered into an operating agreement with Turo, a peer-to-peer vehicle sharing
company. As part of this agreement, Turo will pay the Airport 10% of gross revenue on vehicle sharing
transactions at the Airport. [insert number of Turo transactions]
3.1.7 Ancillary Facilities
Ancillary facilities support the aviation-related activities at the Airport. The facilities identified as ancillary are
categorized as military, general aviation, FAA, ground support equipment, cargo facilities, aircraft maintenance
facilities, and the Boeing facility.
Military: The Utah Air National Guard (UTANG) operates on more than 82 acres on the northeast side of
the Airport as the Roland R. Wright Air National Guard Base. The 151st Air Refueling Wing is based at the
Airport, which provides personnel to fly, maintain, and support a KC-135R aerial refueling unit.
General Aviation: General aviation (GA) facilities are located on the east side of the Airport property. This
area includes fixed base operator (FBO) facilities, corporate hangars, maintenance hangar facilities,
aircraft parking aprons (aircraft tie-down spaces managed by the FBOs), general aviation aircraft storage
hangars (total combination of 200 T-hangars and shade hangars managed by the Department), fuel
storage facilities and access roadways. The two FBOs on site sell both jet A and 100 low-lead aviation
gasoline. FBOs offer a variety of services including rental cars, catering and transportation. Aircraft
maintenance facilities are available on the airfield.
FAA : The FAA occupies the Airport Traffic Control Tower (ATCT) and handles all flight arrivals and
departures as well as ground movement.
Ground Support Equipment: Ground support equipment (GSE) facilities include areas and buildings
that house vehicles and equipment necessary to serve aircraft operations such as aircraft tugs, baggage
tugs and carts, catering trucks, fuel trucks, 400-hertz power generators, deicers, lavatory service trucks,
etc. GSE is stored in a multi-purpose building and covered areas surrounding the terminal area.
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Cargo Facilities: Over 1.0 million square feet of cargo space is leased at the Airport. United Parcel
Service and DHL each have stand-alone cargo facilities and FedEx has a cargo facility at the Airport
constructed in recent years of just under 70,000 square feet.
Aircraft Maintenance Facilities: Delta and its regional partner, SkyWest, currently lease from the
Department and maintain aircraft maintenance hangars at the Airport. Routine and heavy aircraft
maintenance is performed at these facilities.
Boeing Facility: Boeing leases a 100,000-square foot fabrication and assembly facility on a 16-acre site
on the east side of the Airport. At this site, Boeing is assembling the horizontal stabilizer for its 787-9
Dreamliner aircraft. Boeing also has an option to lease an additional 157 acres of adjacent Airport
property.
3.2 The Auxiliary Airports
The Department also operates two general aviation airports owned by the City: South Valley Regional Airport and
Tooele Valley Airport, referred to collectively as the Auxiliary Airports. These airports support the GA needs of the
region and complement the airport services provided at the Airport. A general description of each GA airport is
provided below.
South Valley Regional Airport (U42) currently supports business-related flying, law enforcement/fire/rescue flying
services, recreational flying, flight training, and air charters. A Utah National Guard Army Aviation Support Facility
is also housed on the airfield. South Valley Regional Airport comprises about 880 acres and is located
approximately 10 miles south of the Airport in West Jordan, Utah. U42 has a single runway, Runway 16-34, which
is 5,862 feet in length and 100 feet in width. The runway is constructed of asphalt and is equipped with pilot-
controlled medium intensity runway lights (MIRL) and four lighted precision approach path indicators (PAPIs). In
addition, each end of the runway is also equipped with runway end identifier lights (REILs). The primary landside
area at U42 consists of a linear layout, running north to south along the west side. Facilities include the Utah
National Guard Army Aviation Support Facility, FBO facilities, maintenance hangar facilities, aircraft parking
aprons (100 aircraft tie-down spaces), general aviation aircraft storage hangars (total combination of 155 T-
hangars and shade hangars managed by the Department), fuel storage facilities and access roadways. The
Department sells both jet A and 100 low-lead aviation gasoline. Aircraft maintenance facilities are available on the
airfield. The Department is currently providing fueling, ground handling, aircraft storage and parking and ground
power (GPU) services at South Valley Regional Airport; however, the Department is currently seeking proposals
from FBO operators to enter into a long-term lease to provide those services going forward. A third-party
maintenance provider and flight school are also available.
Tooele Valley Airport (TVY) currently provides many aviation-related services, including business-related flying,
sky diving, law enforcement/fire/rescue flying services, recreational flying, and flight training. Tooele Valley Airport
comprises about 600 acres and is located in Erda, Utah, approximately five miles northwest of Tooele, near State
Highway 138. It is operated with one primary runway, oriented in a general north-south direction, along with a
supporting parallel taxiway system. The single runway at the airport, Runway 17-35, is 6,050 feet in length and
100 feet in width. The runway is constructed of asphalt and is equipped with pilot-controlled MIRLs. Threshold
lights are located at each end as well as runway end identifier lights for the Runway 35 approach. Four light PAPIs
service the runway. The airport has ILS for Runway 17 in addition to a non-directional beacon. The landside area
consists of a linear layout, running north to south along the east side. The facilities include six individual privately-
owned hangars, aircraft parking aprons (24 aircraft tie-down spaces), self-service fuel storage and dispensing
facilities and access roadways. The Bureau of Land Management maintains a Single Engine Air Tanker base at
Tooele Valley Airport and is in the process of constructing a permanent base through a long-term lease recently
executed with the Department. Self-serve 100 low-lead aviation fuel is available 24 hours a day.
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The Department operates the Airport and the Auxiliary Airports as an Airport System. This is defined within the
Master Indenture to include the operation and maintenance costs and revenues of the Auxiliary Airports within the
definitions of Operation and Maintenance Expenses of the Airport System and Revenues. Therefore, the costs
and revenues of the Auxiliary Airports are included for the purposes of the Master Indenture, including the Rate
Covenant (defined later in Chapter 4 of this Report).
3.3 Summary of Capital Projects
For purposes of this Report, the Department’s current capital program is organized into the following categories,
each of which is discussed in the sections that follow in this chapter of the Report:
The New SLC: The New SLC consists of both the TRP and NCP as described below:
The Terminal Redevelopment Program: The TRP is the major capital program currently under
construction that upon completion will have replaced and rebuilt the Airport’s landside and terminal
facilities and is currently replacing its airside concourse facilities over the next few years in conjunction
with the NCP. The western portion of the airside concourse (Concourse A) was opened in September
2020 and is operational. The initial eastern portion of Concourse A containing five aircraft gates on the
north side was opened in May 2023 and is currently operational. The remainder of the eastern portion of
Concourse A containing 16 additional aircraft gates is planned to open on October 31, 2023. The TRP has
been funded, in part, with proceeds of the Existing Bonds, and is planned to be funded, in part, with
proceeds of the Series 2023 Bonds and future additional Bonds along with other funding sources to be
described below. In addition, the Department has entered into a short-term revolving credit facility with
JPMorgan Chase Bank, National Association, pursuant to which the City can access up to $150 million
(Line of Credit). The Line of Credit is currently intended to be used as an interim funding facility. The
capital and operating costs associated with the TRP have been included in the financial analysis in this
Report and are further described in Chapter 4.
The North Concourse Program: The NCP is also currently under construction and includes the
development of a midfield airside concourse (Concourse B) to the north of the new airside concourse to
be developed simultaneously with the TRP (i.e., Concourse A). The western portion of Concourse B
opened in October 2020 and is currently operational. The eastern portion of Concourse B is anticipated to
be opened in various phases. In October 2024, the central tunnel connecting Concourse A and B along
with the central node of Concourse B and four aircraft gates on the south side of the initial eastern portion
of Concourse B are planned to open. In October 2025, four aircraft gates on the north side of the initial
eastern portion of Concourse B are planned to open, which completes Phase III of the NCP. Phase IV of
the New SLC was recently approved in FY 2023. This will extend Concourse B further to the east and
add 16 gates as well as adding permanent aircraft hardstands, which will be accessible from the east end
of the completed Concourse B. The first five aircraft gates associated with Phase IV are planned to be
open in January 2026 and the remaining 11 gates are planned to open in January 2027. The NCP has
been funded, in part, with proceeds of the Existing Bonds, and will also be funded, in part, with proceeds
of the Series 2023 Bonds, the Line of Credit as an interim funding source, and additional Bonds along
with other funding sources to be described herein. The capital and operating costs associated with the
NCP have been included in the financial analysis in this Report and are further described in Chapter 4.
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Other Capital Projects: These projects are in addition to the elements of the New SLC and are the other
Airport System capital projects that currently are anticipated by the Department to be undertaken over the
projection period, or from FY 2023 through FY 2030. Such projects are referred to in this Report as the ‘Other
Capital Projects.’ The estimated capital funding and operating costs, if any, and estimated revenue impacts, if
any, associated with the Other Capital Projects have also been included as part of the financial analysis in this
Report.
3.4 The New SLC
The New SLC is a comprehensive capital program that is in various stages including certain components that are
in operation, under construction, or being designed to completely redevelop and replace the existing landside and
terminal complex of the Airport. The New SLC is comprised of two capital programs known as the TRP and the
NCP. A significant portion of the New SLC has been completed and is currently operational. Remaining portions of
the New SLC currently under construction or in design primarily consist of airside concourse development, the
new central passenger tunnel, and associated airside improvements. Figure 3-3 illustrates the New SLC and
shows the facilities that are complete and in operation and the future airside concourse elements currently under
construction. The next several sections provide additional details on the TRP and the NCP.
3.4.1 The Terminal Redevelopment Program
In 2014, the Signatory Airlines operating at the Airport approved the implementation of the TRP through execution
of the current AUA that incorporates the TRP and is effective through June 30, 2024.
The TRP is estimated to cost approximately $2.83 billion, including design, engineering, construction, escalation
for inflation, and contingency amounts, but excluding financing costs. Sources of funding for the TRP are
presented in Exhibit A of this Report. Approximately $2.83 billion of project costs have already been incurred
through January 2023. Table 3-2 presents project costs of the TRP by element in chronological order for when
each element is planned to be operational. A description of the major project elements of the TRP is then
contained in the next several subsections.
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Table 3-2 TRP Project Costs by Element (thousands of dollars)
TRP Element Current Budget1 Planned Operation
South Economy Parking Lot $15,944 Operational
Rental Car Facilities: QTA and RSS 129,286 Operational
Central Utility Plant 59,837 Operational
Terminal Facility2 961,698 Operational
Gateway Center 82,513 Operational
Concourse A (West) 420,357 Operational
Parking Garage 239,721 Operational
Terminal Roadway System 107,831 Operational
Concourse A (East) 498,039 May 2023 (west portion)
October 2023 (east portion)
Terminal Apron, Fuel Hydrant System, and Taxilanes 292,927 Operational
Miscellaneous Landside/Parking Lot Improvements 21,902 Operational
Total $2,830,056
Notes: 1 Approximately $2.63 billion of project costs have been incurred through January 2023.
Amounts may not add because of rounding.
2 Includes baggage handling system
Source: Airport records, March 2023.
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Figure 3-3 The New SLC
Source: Department management records, April 2023
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The eastern portion of Concourse A is currently under construction and is the only remaining portion of the TRP to
be completed. This facility continues the configuration of Concourse A and is comprised of approximately 376,000
square feet of space that will be contiguous with the terminal facility. Level 1 of Concourse A will contain non-
public areas that accommodate airline operations offices and support areas, outbound and transfer baggage
facilities, storage facilities, and house MEP systems. Level 2 of the facility will serve as the main passenger
circulation level serving enplaning and deplaning passengers and will include passenger amenities such as
moving sidewalks and expanded food and beverage and retail concessions. In total, the eastern portion of
Concourse A will ultimately accommodate 22 aircraft gate positions.
The eastern section of Concourse A is currently planned to be completed on October 31, 2023 with the early
opening of five gates, which occurred in May 2023. Because of the substantial decreases in air traffic resulting
from the impacts associated with the COVID-19 pandemic that temporarily reduced the need for aircraft gates, the
Department was able to accelerate the demolition of its former airside concourses. The demolition of these former
airside concourses cleared the site for the development of Concourse A and simplified its construction phasing.
The demolition of the former facilities accelerated the planned opening of all the aircraft gates on Concourse A by
nearly two years.
3.4.2 The North Concourse Program
The NCP consists of a planned 47-gate midfield concourse, of which 21 gates opened in October 2020. As
described above, Phase IV of the New SLC was recently approved in FY 2023. This phase extends Concourse B
further to the east to add 16 contact aircraft gates to the NCP as well as adding permanent aircraft hardstands at
the east end of the future Concourse B. With the inclusion of Phase IV, it is currently estimated that the NCP will
cost approximately $2.30 billion. Table 3-3 presents project costs of the NCP by element in chronological order for
when each element is planned to be operational. A description of the major project elements of the NCP follows
the table.
The first phase of the NCP was opened in October 2020, about one month after the terminal and the Concourse A
(west). This initial phase was the west portion of Concourse B and includes 21 aircraft gate positions and
comprises approximately 361,000 square feet of space.
The second phase of the NCP will add an additional nine aircraft gate positions. The second phase is planned to
be approximately 246,000 square feet of building space. The Central Tunnel connecting Concourse B to
Concourse A and terminal will be approximately 1,000 linear feet and will also be constructed during this phase.
The Central Tunnel will become the primary pedestrian access; however, the mid-concourse tunnel will also
remain operational to serve connecting passenger needs. This phase (Phase III) of the NCP is planned to be
initially operational in October 2024 and fully operational by October 2025.
Phase IV of the NCP was recently approved during FY 2023. This phase will add 16 additional gates on
Concourse B and permanent hardstands at the east end of Concourse B. The first five aircraft gates on this
Concourse B extension are planning to be operational in January 2026, and the remaining 11 aircraft gates are
planned to open in January 2027.
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Table 3-3 NCP Project Costs by Element (thousands of dollars)
TRP Element Current Budget1 Planned Operation
Concourse B (west) $364,554 Operational
Concourse B (east – Phase III) 380,941 October 2024 (west portion)
October 2025 (east portion)
Baggage Handling System 35,578 May 2024
Central Tunnel 109,456 October 2024
Mid Concourse Tunnel 21,063 Operational
Apron/Taxilanes 397,634 Various
Hydrant Fueling System 43,137 Various
Concourse A (east) Modifications 250,641 October 2023
Hardstand Operation 46,439 Operational
Phase IV - Concourse B 585,347 January 2026 (west portion)
January 2027 (east portion)
Phase IV - Apron & Hydrant Fueling
System 70,127 Various
Total $2,304,917
Notes: 1 Approximately $981.3 million of project costs have been incurred through January 2023.
Amounts may not add because of rounding.
Source: Airport records, March 2023
3.4.3 New SLC Aircraft Gate Positions
Prior to construction of the New SLC, the Airport had 56 aircraft gates with loading bridges and 30 aircraft gates
without loading bridges on Concourse E. All of the prior concourses and terminal complex were demolished after
the opening of the initial phases of the New SLC in FY 2021. As described earlier, the Airport currently has 71
aircraft positions with 51 of these having loading bridge access to aircraft, and the remaining 20 ground-loaded
positions on the remote aircraft hardstand facility are without loading bridges. The construction phasing plan for
the New SLC has been developed to maintain active aircraft gate positions throughout construction. When
completed, the New SLC is planned to provide 98 aircraft gate positions at the Airport. Of the 98 aircraft gates, 94
will have loading bridge access to aircraft, while the remaining four will be ground-loading accessible through
hardstands. As compared to the former facilities, the Airport is planned to have 38 more loading bridge capable
gates upon completion of the New SLC to accommodate future requirements more efficiently and effectively.
Table 3-4 presents the current plan for aircraft parking positions through various phases of the New SLC
construction.
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Table 3-4 Planned Aircraft Parking Positions During the New SLC Construction
Date
Conc.
C
Conc.
D
Conc.
E1
Conc.
F2
Conc.
G3
Conc.
A
Conc.
B
Hard-
Stand4
Total
with
LB5 Total
Before
Construction of
New SLC
13 13 30 22 8 0 0 30 56 86
Current 0 0 0 0 0 30 21 20 51 71
November 2023 0 0 0 0 0 47 21 5 68 73
October 2024 0 0 0 0 0 47 26 5 73 78
October 2025 0 0 0 0 0 47 30 5 77 82
January 2026 0 0 0 0 0 47 35 5 82 87
November 2027 0 0 0 0 0 47 47 4 94 98
1 Concourse E did not provide loading bridge access to aircraft.
2 Formerly Concourse B
3 Formerly Concourse A
4 The aircraft hardstand does not provide loading bridge access.
5 Loading bridge (LB)
Source: Airport management records, accessed February 2023.
3.4.4 The New SLC Program Management Team
Program management for the New SLC is comprised of a selected staff of professionals chosen from 10
companies of which 46 personnel were engaged as of December 2022. At the peak of construction 68 full-time
personnel were engaged. Pursuant to this approach, the Department maintains complete control as opposed to a
more typical approach where this responsibility is contracted to a firm or team of firms that provide this function
with their staff. The Department’s process allows it to select individuals from the pool of firms for each program
management position. In addition, the Department outlines key performance requirements for each of these
program management positions and has the ability to replace those not meeting appropriate performance
requirements. In such circumstances, the Department will request companies from the external pool to provide
potential candidates to be interviewed by the Department. The Department will then select the most qualified
individual from the pool of candidates. Key external program management staff, which lead the program
management team, include a Program Director, a Financial and Program Controls coordinator, and an Airline
Technical Representative.
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The Program Director reports to the Department’s Executive Director and is responsible for the overall
implementation of the TRP. The lead architectural firm for the New SLC is HOK (formerly known as Helmuth,
Obata & Kassabaum, Inc.), which has multiple sub-consultant firms engaged in various engineering and design
efforts. In October 2013, the Department selected Holder-Big-D, A Joint Venture (HDJV) as the Construction
Manager at Risk (CMAR) for the TRP. HDJV is a joint venture between Holder Construction Company and Big-D
Construction. Big-D Construction is a local Salt Lake City based company and Holder Construction Company is
Georgia-based. In April 2017, the Department selected Austin Okland Aviation as the CMAR for the NCP. The
CMAR Contract with AOJV was terminated for convenience following the reduction in passengers associated with
the impacts of the COVID-19 pandemic and AOJV has de-mobilized. HDJV added the second phase of the NCP
to its existing CMAR.
The New SLC has been broken down into CGMP contracts between the Department, on behalf of the City, and
the CMAR. Each CGMP constitutes an amendment to the CMAR contract that provides that the CMAR will
construct the elements of the New SLC described in the scope of the applicable CGMP for a guaranteed
maximum price, within the schedule set forth in the CGMP and in accordance with the CMAR contract. The
CMAR contract also requires the CMAR, as applicable, to provide specified pre-construction and general
conditions services during its term. As of March 2023, 100% of the TRP project costs and NCP project costs are
subject to an executed CGMP.
Each CGMP is designed and bid separately. All subcontracts must be competitively awarded, and the
subcontracts are held by the CMAR, as applicable, and expressly provide that the Department has no contractual
relationship with the subcontractors. Before the Department enters into a CGMP, the Department’s Financial
Oversight Committee must approve the guaranteed maximum price and its Construction Committee must approve
the scope of the work of the CGMP and recommend to the Executive Director that the CGMP be approved and
executed. The CMAR contract provides for a formal dispute resolution process that must be undertaken in the
event of a disagreement between the Department and the CMAR, as applicable, before any legal action may be
commenced.
3.5 Other Capital Projects
Other Capital Projects currently anticipated by the Department to be undertaken or completed during the
projection period that are not part of the New SLC are shown in Exhibit A. Preliminary cost estimates for the Other
Capital Projects total approximately $322.3 million through FY 2030. Projects expected to be undertaken include
rehabilitation of taxiways as well as improvements at Tooele and South Valley Airports. It should be noted that
certain capital projects included in Other Capital Projects could be potentially deferred or not otherwise
undertaken by the Department during the projection period, depending on circumstances such as aviation
demand levels and availability of project funding. For the purposes of this analysis, all such projects have been
incorporated in this Report and the accompanying financial tables to demonstrate the full financial effect of
undertaking all of the Other Capital Projects along with the New SLC.
3.5.1 Financial Impact for Other Capital Projects
Sources of funding for the Other Capital Projects are described below and presented on Exhibit A. The estimated
financial impacts of the Other Capital Projects are incorporated in this Report.
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It is possible that during the projection period, the Department may consider other potential future Airport
improvements not planned at this time. However, it is assumed that the Department will only undertake
construction on any other potential future projects when demand warrants, necessary environmental reviews have
been completed, necessary approvals have been obtained, and associated project costs can be supported by a
reasonable level of Airport user fees or other discrete funding sources such as state and federal grants, PFCs,
Department funds, CFCs, and third-party funds.
3.6 Plan of Finance
Exhibit A presents the total project costs along with estimated funding sources for the New SLC and Other Capital
Projects. These estimates are based on currently available information regarding the estimated cost and timing of
the New SLC and Other Capital Projects, and the estimated receipt of federal, state, and other grants and other
funds. As presented in Exhibit A, the TRP is estimated to cost approximately $2.83 billion, the NCP is estimated to
cost $2.30 billion, and the Other Capital Projects are estimated to cost $322.3XXX million. Additional details
regarding the estimated funding sources for the New SLC and Other Capital Projects is presented in this section.
3.6.1 Federal, State and Other Grants
The Department receives federal grants for Airport capital development under the FAA Airport Improvement
Program (AIP). The Department received AIP entitlement grants of approximately $3.8 million in FY 2020 based
on (1) levels of funding authorized and appropriated by Congress for the program, (2) the number of passengers
and amount of cargo at the Airport, and (3) a 75% reduction in entitlement grants associated with the
Department’s $4.50 PFC level. The Auxiliary Airports receive a total of approximately $150,000 in FAA AIP
entitlements per year per airport. The Department also receives AIP discretionary grants for specific projects
pursuant to grant applications for such funding, and FAA discretionary grant awards, which are a function of the
amounts authorized and appropriated by Congress and the FAA’s prioritization of competing projects. No future
BIL funds are assumed in the plan of finance, but they will be applied for and used if awarded.
As shown in Exhibit A, the Department expects to be able to fund a portion of its capital development with FAA
AIP and TSA grants. Approximately $373.3 million in federal grants are anticipated to fund a portion of the New
SLC and the Other Capital Projects.
3.6.2 Passenger Facility Charge Revenues
PFC revenues are used to pay for certain FAA-approved, PFC-eligible projects, either by using certain PFC
revenues to pay for approved project costs on a pay-as-you-go basis or by applying certain PFC revenues to pay
debt service associated with bonds used to fund approved projects. Pursuant to the Master Indenture, unless
otherwise provided in a Supplemental Indenture or a certificate of the City, PFC revenues are excluded from the
definition of Revenues, and therefore, are not pledged to the payment of debt service on the Bonds. However,
PFC revenues may still be applied to pay debt service on Bonds in two separate ways. First, the City may
designate specified PFC revenues as Passenger Facility Charges Available for Debt Service. Passenger Facility
Charges Available for Debt Service are transferred to the Trustee and deposited directly into a City designated
Debt Service Fund to be used to pay debt service on a specific Series of Bonds. Secondly, the City can designate
specified PFC revenues as Pledged Passenger Facility Charges. Pledged Passenger Facility Charges are
transferred to the Trustee and deposited directly into a City designated Debt Service Fund to be used to pay debt
service on a specific Series of Bonds. For purposes of the Rate Covenant, Annual Debt Service on the Bonds
does not include principal or interest paid with PFC revenues that have been designated as Passenger Facility
Charges Available for Debt Service and/or Pledged Passenger Facility Charges. For the purposes of the financial
analysis for the Series 2021 Bonds, it is assumed that the City will designate certain PFC revenues as Passenger
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Facility Charges Available for Debt Service and such PFC revenues will be used to pay a portion of the debt
service on Bonds.
As of March 31, 2023, the Department is authorized by the FAA, to impose and use approximately $2.2 billion of
PFC revenues (at the $4.50 level) for various projects. The Department received approval from the FAA on June
3, 2020 of its amendment request to increase its PFC funding for the TRP by $72.3 million. The FAA’s estimated
charge-expiration date is April 1, 2037. As of March 31, 2023, the Department had collected approximately $936.8
million of its total approved collection and had disbursed approximately $916.5 million on approved projects. The
Department received approval for its PFC Application number 16 in February 2016 for the TRP. The application
and subsequent amendment was approved at the PFC collection rate of $4.50 for a total approved use of
approximately $1.38 billion.
As presented in Exhibit A, the Department has planned for approximately $332.8 million of PFCs to fund TRP
project costs on a pay-as-you-go basis. At this time, the Department does not expect to fund any additional costs
of the TRP with PFC revenues on a pay-as-you-go basis. In addition, the Department intends to fund eligible debt
service for the TRP with a significant portion of its annual PFC collections into the foreseeable future.
3.6.3 Department Funds
The Department historically used its internal funds from the operation of the Airport System to fund certain
projects in the CIP. Per the Master Indenture, any Revenues remaining in the Surplus Fund, after all obligations
have been satisfied, are available for use by the Department for any lawful Airport System purpose. Per the AUA,
the Department may include in airline rates and charges a cost for the use of Department funds (net of PFCs,
CFCs, grants, and other funding sources), along with imputed interest, that pay for capital development in airline
cost and revenue centers. This cost is referred to as Amortization in the AUA. The AUA specifically prohibits
Amortization to be included in airline rates and charges for Department funds paying for costs of the TRP. There is
no prohibition for the use of Amortization for NCP.
As presented in Exhibit A, the Department is currently planning to apply internally generated Department funds to
the New SLC of approximately $571.2 million. The Department intends to use approximately $326.3 million of
Department funds for Other Capital Projects.
3.6.4 Existing Bonds, Series 2023 Bonds, and Future Bonds
The remaining portions of the New SLC are planned to be funded with proceeds of Bonds. The Department has
issued the Existing Bonds, and plans to issue the Series 2023 Bonds to pay the costs of implementing a portion of
the New SLC. Currently, the Department also is planning to issue additional Bonds over the next several years to
fund remaining portions of the New SLC based on future timing and cash flow needs. As presented on Exhibit A,
approximately $925.7 million of Series 2017 Bonds proceeds (including interest earnings) have been used to fund
project costs of the New SLC, approximately $798.8 million of Series 2018 Bonds proceeds have been used to
fund project costs of the New SLC, approximately $974.6 million of Series 2021 Bond proceeds have been used
to fund project costs of the New SLC, and approximately $1.15 billion of future Bonds (including the Series 2023
Bonds) proceeds are planned to fund project costs of the New SLC. Of the future Bonds proceeds approximately
$400.0 million are Series 2023 Bonds proceeds and approximately $752.6 million are future Bonds proceeds.
Assumptions related to the issuance of the Series 2023 Bonds and future Bonds are provided in Section 4.4.
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3.6.5 Customer Facility Charges
On July 1, 2011, the Department began requiring the rental car companies at the Airport to charge a customer
facility charge (CFC) to be used to pay, or to reimburse the Department, for capital costs for construction and
improvement of rental car facilities at the Airport. The CFC was initially $4.00, with the current rate of $5.00
effective July 1, 2012. The $5.00 CFC is a per transaction daily fee up to a maximum of 12 days and is collected
by the on-airport rental car companies from each of their customers and subsequently remitted to the Department.
Although federal law does not restrict the use of CFCs, a City ordinance restricts the use of CFCs to finance
capital improvements at the Airport that support rental car services, including a pro rata share of joint use
infrastructure such as roadways, the portions of the Parking Garage needed for ready/return facilities, funding
debt service associated with rental car facilities or funding the City’s costs for such other rental car related
purposes as the City may determine. The City currently does not expect to apply proceeds of Bonds to finance
rental car facilities or, accordingly, to pay debt service on Bonds with CFCs. CFCs are not included in Revenues.
The Department is applying the CFC revenues on a pay-as-you-go basis to fund eligible portions of the TRP that
are used by rental cars. As shown on Exhibit A, the Department intends to fund approximately $199.0 million of
rental car-related improvements of the TRP from CFC revenues. The Department has expended all of the CFC
eligible project costs through March 2023. The Department has already constructed the QTA, RSS, rental car
portion of the parking garage, and rental car portion of the Gateway Center, and has used available CFCs and
Department cash to fund these projects. The Department has been reimbursing its internal cash expenditures on
these elements of the TRP from CFC revenues as they become available.
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4 Financial Framework and Analysis
This Chapter discusses the financial framework for the Airport System, including an overview of the governing
body, management structure of the Department, financial structure including Airport System cost centers, certain
obligations of the Master Indenture, and certain provisions contained in the AUA (defined herein) and in other key
agreements at the Airport System. Additionally, the Department’s plan for funding sources, including the use of
proceeds of the Existing Bonds, the planned Series 2023 Bonds, and future Bonds, along with Debt Service
projections, Operating Expenses, Revenues projections, debt service coverage, and other key financial analyses
are described in this Chapter.
Exhibits contained at the end of this Chapter present actual results for FY 2022, and projections for FY 2023
through FY 2030, also referred to as the Projection Period.
4.1 Airport Governing Body
The Airport System is operated and managed by the Salt Lake City Department of Airports, a department of the
City. The Mayor of the City, the City Council and the 11-member Airport Advisory Board of citizen volunteers
oversee its affairs. In February 1976, the City created the Airport Advisory Board to provide advice with respect to
broad matters of policy affecting the operation of the Airport System. All actions taken by the Airport Advisory
Board constitute recommendations to the Mayor. The Mayor has the power to review any action submitted by the
Airport Advisory Board.
4.2 Management Structure
The day-to-day operations of the Airport System are managed by the Executive Director, who reports directly to
the Mayor. The Executive Director, appointed by the Mayor, leads the management staff of the Department along
with the Department’s Division Directors. Nine Division Directors of the Department lead the following nine
Divisions: Operations; Maintenance; Finance; Airport Design and Construction Management; Planning and
Environmental; Administration and Commercial Services; Communication and Marketing; Information Technology;
and Operational Readiness, Activation, and Transition for the New SLC. In addition, the executive team of the
Department is comprised of the Chief Operating Officer, to whom the Director of Operations reports, along with
Airport police and firefighting. The executive team of the Department is a full-time staff of professional and
technical personnel located at the Airport.
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4.3 Financial Structure
The Department’s Airport System includes the Airport and the Auxiliary Airports, general aviation airports owned
by the City and operated by the Department. For accounting purposes, the Airport System is operated as an
independent enterprise fund of the City and is separate from other City enterprises. As described in Section 5.3.2
below, funds deposited into the Revenue Account are not commingled with any other funds of the City and are
used and applied only in the manner as specified in the Master Indenture. A discussion of the application of
revenues is also described below.
The Department funds its operation of the Airport System with revenues generated from Airport System rentals,
fees, and charges. The Airport System is financially self-sustaining with Revenues generated from airline and
other tenant fees, grants, Passenger Facility Charges (PFCs), rental car CFCs, concession fees, and other
Revenues of the Airport System. Capital improvements at the Airport System are funded by the Department with:
(1) federal, state, and other grants-in-aid, (2) Revenues generated from Airport System rentals, fees and charges;
(3) Airport System revenue bond proceeds; (4) PFC revenues, (5) CFC revenues, and (6) other Department
funds.
4.3.1 Accounting Structure
Pursuant to the AUA for the Airport, the Department has created various cost and revenue centers and cost
centers for the purpose of accounting for and allocating costs and revenues of the Airport System in order to
establish airline rates and charges for the use of the Airfield and the Terminal. Per the AUA, the airline cost and
revenue centers are referred to as the Airfield Cost and Revenue Center and the Terminal Cost and Revenue
Center. In addition to the two-airline cost and revenue centers, the Department also allocates costs and revenues
to five other Department cost centers and two indirect cost centers. Landside, General Aviation, Support Areas,
Auxiliary Airports, and Other comprise the other direct Department cost and revenue centers. The General
Administration and Roads cost centers are the Department’s indirect cost centers, which are allocated to the
direct cost centers. As described below, rate-setting at the Airport is a hybrid methodology, where Landing Fees
are calculated on a residual basis and the Terminal Rents are calculated on a modified commercial compensatory
basis that includes financial incentives for additional enplaned passengers. In the Airfield Cost and Revenue
Center, the Signatory Airlines have the primary responsibility and risk and benefit from non-airline revenues. In the
Terminal Cost and Revenue Center, the Department and the Signatory Airlines share the responsibility and risk.
The AUA also has an adjustment-to-actual provision that sets a process for the reconciliation of rates and charges
with the Signatory Airlines at the end of each FY.
The Airfield Cost and Revenue Center and Terminal Cost and Revenue Center include allocated shares of
Operating Expenses and Capital Outlays, debt service, amortization charges, Rolling Coverage Amount
requirements, O&M Reserve Requirements, Renewal, and Replacement Requirements, other required reserve
deposits, and Revenues. The Existing Bonds, and the Series 2023 Bonds are payable on a parity from the Airport
System Net Revenues from all Cost and Revenue Centers of the Department.
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Direct Cost and Revenue Centers:
Airfield Cost and Revenue Center: The cost and revenue center to which revenues and expenses
associated with those portions of the Airport providing for the landing, taking off, and taxiing of aircraft,
including without limitation approach and turning zones, clear zones, avigation or other easements,
runways, a fully integrated taxiway system, runway and taxiway lights, GSE storage areas, remote aircraft
parking aprons, and other appurtenances related to the aeronautical use of the Airport, including any
airfield property purchased for noise or other environmental mitigation purposes.
Terminal Cost and Revenue Center: The cost and revenue center to which revenues and expenses
associated with the Terminal buildings and Terminal Aircraft Aprons including but not limited to aircraft
gates, ticket counters, baggage claim areas, baggage make up areas, security checkpoint areas, office
space, storage areas, concourses, lobbies, VIP lounges, FIS facilities, employee break rooms and public
areas located within terminal building at the Airport. Terminal Aircraft Aprons include those areas of the
Airport that primarily are designated for parking of passenger aircraft and support vehicles and the
loading and unloading of passenger aircraft.
Landside Cost and Revenue Center: The cost center and revenue center to which revenues and
expenses associated with areas and facilities accommodating ground transportation, including Terminal
public access roadways and curbside, public automobile and employee parking facilities, rental car
operations, and taxi and transportation network companies (TNCs).
General Aviation: The cost and revenue center to which revenues and expenses associated with general
aviation areas and facilities provided at the Airport. These include, but are not limited to, hangar, building,
land and space rentals and fuel flowage fees.
Support Areas: The cost and revenue center to which revenues and expenses associated with, but not
limited to, Airport support areas are allocated. These include flight kitchens, non-terminal buildings, cargo
ramps, and other areas.
Auxiliary Airports: The cost and revenue center to which revenues and expenses associated with areas
and facilities provided at the Auxiliary Airports. These include, but are not limited to, hangar, building, land
and space rentals and fuel flowage fees.
Other: The cost and revenue center to which revenues and expenses associated with areas and facilities
leased or provided for air cargo activities, improved land and buildings, and unimproved land.
Indirect Cost Centers
General Administration: Expenses associated with salaries, benefits, materials, and supplies of the
Airport’s administrative staff and not attributable to any Direct Cost and Revenue Center but allocated
among all cost centers for purposes of rate making based on share of expenses among the Direct Cost
and Revenue Centers.
Roads: Expenses associated with Airport roadways are allocated to the Department’s Direct Cost and
Revenue Centers based on amounts specified in the AUA.
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4.3.2 Master Indenture
The Master Trust Indenture, dated as of February 1, 2017 by and between the City and Wilmington Trust, National
Association, as Trustee (the Master Indenture), authorizes the issuance of airport revenue bonds to pay the costs
of acquiring and constructing Airport System improvements, among other items. The Existing Bonds were issued
pursuant to the Master Indenture and the First, Second, and Third Supplemental Trust Indentures and the Series
2023 Bonds are being issued pursuant to the provisions of the Master Indenture and the Fourth Supplemental
Trust Indenture to be dated as of August 1, 2023, referred to as the Fourth Supplemental Indenture, by and
between the City and the Trustee. The Master Indenture and the Fourth Supplemental Indenture are collectively
referred to as the Indenture. The Series 2023 Bonds are payable solely from the Net Revenues of the Airport
System, certain funds and accounts held by the Trustee under the Indenture, and other amounts payable under
the Indenture. As of July 2, 2023, the Department had $2.706 billion of Bonds Outstanding.
Pursuant to the Master Indenture, the City has pledged Net Revenues to the payment of the Bonds issued
thereunder. Net Revenues are all Revenues of the Airport System remaining after payment of Operation and
Maintenance Expenses of the Airport System. Revenues include, among other things, all amounts derived from all
rates, tolls, fees, rentals, charges and any other payments collected, or received by the City in connection with the
operation of the Airport System, any amounts designated as Other Pledged Revenues pursuant to the procedures
in the Master Indenture, and all investment income earned by the City on such Revenues except as otherwise
expressly provided in the Master Indenture.
Flow of Funds
The Master Indenture and the Subordinate Indenture (as described below) established certain funds and
accounts and the priority for the flow of Revenues and certain other amounts to such funds and accounts, as
described below. Figure 4-1 illustrates the flow of funds as set forth in the Master Indenture and the Subordinate
Indenture (as described below).
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Figure 4-1 Flow of Funds
Source: Master Indenture and Subordinate Indenture
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As long as there are Outstanding Bonds and Subordinate Obligations, all Revenues are required to be deposited
into the Revenue Account, which is administered by the Department on behalf of the City. Revenues will be set
aside for the payment of the following amounts or deposited or transferred to the following funds, accounts and
subaccounts in the following order of priority:
1. Operation and Maintenance Subaccount
2. Debt Service Funds
3. Common Debt Service Reserve Fund and Series Debt Service Reserve Funds
4. Subordinate Obligation Debt Service
5. Subordinate Obligation Debt Service Reserve Funds
6. Operation and Maintenance Reserve Subaccount
7. Renewal and Replacement Subaccount
8. Rolling Coverage Account
9. Surplus Fund
Rate Covenant
In the Master Indenture, the City covenants, while any Bonds are Outstanding, to establish, fix, prescribe, and
collect rates, tolls, fees, rentals and charges in connection with the Airport System and for services rendered in
connection therewith, so that Revenues in each FY will be at least equal to the following amounts:
Operation and Maintenance Expenses of the Airport System due and payable during such FY
the Annual Debt Service on any Outstanding Bonds required to be funded by the City in such FY as
required by the Master Indenture or any Supplemental Indenture with respect to the Outstanding Bonds;
the required deposits to the Common Debt Service Reserve Fund or any Series Debt Service Reserve
Fund which may be established by a Supplemental Indenture;
the reimbursement owed to any Credit Provider or Liquidity Provider as required by a Supplemental
Indenture;
the interest on and principal of any indebtedness of the Department required to be funded during such FY,
other than for Outstanding Bonds, but including Subordinate Obligations; and
funding of any debt service reserve funds created with respect to any indebtedness of the Department,
other than Outstanding Bonds, but including Subordinate Obligations.
The City also covenants and agrees that it shall establish, fix, prescribe and collect rates, tolls, fees, rentals and
charges in connection with the Airport System and for services rendered in connection therewith, so that during
each FY the Net Revenues, together with any Transfer from the Rolling Coverage Account, will be equal to at
least 125% of Annual Debt Service on the Outstanding Bonds for such Fiscal Year. The amount of any Transfer
from the Rolling Coverage Account taken into account shall not exceed 25% of Annual Debt Service on the
Outstanding Bonds in such FY. When calculating Annual Debt Service on the Outstanding Bonds for purposes of
the rate covenants described above, Annual Debt Service on the Outstanding Bonds shall be reduced by the
amount of principal and/or interest paid with Capitalized Interest, Passenger Facility Charges Available for Debt
Service and/or Pledged Passenger Facility Charges.
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Additional Bonds
Pursuant to the Master Indenture, the Department is authorized to issue additional Bonds, subject to meeting
certain conditions. To issue such Bonds, including the Series 2023 Bonds, the Department must provide either:
(i) a certificate, dated as of a date between the date of pricing of the Bonds being issued and the date of
delivery of such Bonds (both dates inclusive), prepared by an Authorized City Representative
showing that the Net Revenues for the last audited FY or any 12 consecutive months out of the most
recent 18 consecutive months immediately preceding the date of issuance of the proposed Series of
Bonds, together with any Transfer for the most recently ended Fiscal Year, were at least equal to
125% of Maximum Aggregate Annual Debt Service with respect to all Outstanding Bonds and the
proposed Series of Bonds, calculated as if the proposed Series of Bonds were then Outstanding; or
(ii) a certificate, dated as of a date between the date of pricing of the Bonds being issued and the date of
delivery of such Bonds (both dates inclusive), prepared by a Consultant, nationally recognized as an
expert in the area of air traffic and airport financial analysis, showing that:
(A) the Net Revenues for the last audited Fiscal Year or for any 12 consecutive months out of the most
recent 18 consecutive months immediately preceding the date of issuance of the proposed Series of
Bonds, together with any Transfer for the most recently ended Fiscal Year, were at least equal to
125% of the sum of the Annual Debt Service due and payable with respect to all Outstanding Bonds
for such applicable period; and
(B) for the period from and including the first full Fiscal Year following the issuance of such proposed
Series of Bonds, during which no interest on such Series of Bonds is expected to be paid from the
proceeds thereof, through and including the later of: (1) the fifth full Fiscal Year following the issuance
of such Series of Bonds, or (2) the third full Fiscal Year during which no interest on such Series of
Bonds is expected to be paid from the proceeds thereof, the estimated Net Revenues, together with
any estimated Transfer, for each such Fiscal Year, will be at least equal to 125% of the Aggregate
Annual Debt Service for each such Fiscal Year with respect to all Outstanding Bonds and calculated
as if (1) the proposed Series of Bonds were then Outstanding, and (2) any future Series of Bonds
which the City estimates will be required to complete payment of the estimated costs of construction
of such portion of the Specified Project and any other uncompleted portion of the Specified Project
from which the Consultant projects additional Revenues will be generated were then Outstanding.
For purposes of subparagraphs (i) and (ii) above, the amount of any Transfer taken into account shall not exceed
25% of the Aggregate Annual Debt Service on the Outstanding Bonds and the proposed Series of Bonds. The
City will be required to meet this test with respect to the Series 2023 Bonds. L&B is providing this Report along
with a certificate described in clause (ii) above with respect to the Series 2023 Bonds.
PFC Revenues used to pay Debt Service
Revenues do not include PFCs. However, PFCs may still be used to pay the principal of and interest on Bonds in
two separate ways under the Master Indenture. The City may designate specified PFCs as Passenger Facility
Charges Available for Debt Service or as Pledged Passenger Facility Charges. Any PFCs designated as
Passenger Facility Charges Available for Debt Service or as Pledged Passenger Facility Charges will be
deposited directly to the Debt Service Fund or Funds directed by the City and will be used to pay debt service on
the applicable Series of Bonds. The City expects, to the extent approved by the FAA, to designate certain PFCs
as Passenger Facility Charges Available for Debt Service and to use such PFCs to pay a portion of the debt
service on Existing Bonds, the planned Series 2023 Bonds, and certain of the Bonds to be issued in the future.
The City does not have any current plans to designate any PFCs as Pledged Passenger Facility Charges. When
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calculating debt service for purposes of the rate covenant set forth in the Master Indenture and the additional
bonds test set forth in the Master Indenture, debt service is reduced by the amount of PFCs, whether designated
as Pledged Passenger Facility Charges Available for Debt Service or as Pledged Passenger Facility Charges,
used or expected to be used, as applicable, to pay debt service on Outstanding Bonds, Series 2023 Bonds, or
any additional Bonds.
4.3.3 Subordinate Indenture
The Master Subordinate Trust Indenture, dated as of March 1, 2021 (the Subordinate Indenture), by and between
the City and Zions Bancorporation, National Association, as Subordinate Trustee (the “Subordinate Trustee”),
authorizes the issuance of Subordinate Obligations to pay the costs of acquiring and constructing Airport System
Improvements, among other items. Pursuant to the Subordinate Indenture, Subordinate Obligations will be
secured by a pledge of and lien on Subordinate Revenues. Subordinate Revenues include Net Revenues less all
amounts required to pay debt service and reserve replenishment on and related to the Bonds.
Rate Covenant
In the Subordinate Indenture, the City covenants, while any Subordinate Obligations are Outstanding, to
establish, fix, prescribe, and collect rates, tolls, fees, rentals and charges in connection with the Airport System
and for services rendered in connection therewith, so that Revenues in each FY will be at least equal to the
following amounts:
Operation and Maintenance Expenses of the Airport System due and payable during such FY
the principal of and interest on any outstanding Bonds required to be funded by the City in such FY as
required by the Master Indenture or any Supplemental Indenture with respect to the Outstanding Bonds;
the required deposits to the Common Debt Service Reserve Fund or any Series Debt Service Reserve
Fund;
the reimbursement owed to any Credit Provider or Liquidity Provider as required by a Supplemental
Indenture;
the annual debt service on any outstanding Subordinate Obligations required to be funded by the City in
such FY as required by the Subordinate Indenture or any supplemental subordinate obligation indenture
with respect to the outstanding Subordinate Obligations;
the required deposits to any debt service reserve fund which may be established by a supplemental
subordinate obligation indenture;
the reimbursement owed to any credit provider or liquidity provider as required by a supplemental
Subordinate Indenture;
the interest on and principal of any indebtedness of the City with respect to the Department of Airports
required to be funded during such Fiscal Year, other than for Outstanding Bonds and outstanding
Subordinate Obligations; and
funding of any debt service reserve funds created with respect to any indebtedness of the Department,
other than Outstanding Bonds and Subordinate Obligations.
The City further covenanted that it shall establish, fix, prescribe and collect rates, tolls, fees, rentals and charges
in connection with the Airport System and for services rendered in connection therewith, so that during each FY
the Subordinate Revenues, together with any transfer, will be equal to at least 115% of annual debt service on the
outstanding Subordinate Obligations for such FY. For purposes of this subsection (b), the amount of any transfer
taken into account shall not exceed 15% of annual debt service on the outstanding Subordinate Obligations in
such Fiscal Year. When calculating annual debt service on the outstanding Subordinate Obligations for purposes
of the rate covenants, annual debt service on the outstanding Subordinate Obligations shall be reduced by the
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amount of principal and/or interest paid with capitalized interest, Passenger Facility Charges available for debt
service and/or pledged Passenger Facility Charges.
Additional Subordinate Obligations
Additional Subordinate Obligations may be issued under the Subordinate Obligation Trust Indenture on parity with
outstanding Subordinate Obligations, provided, among other things, there shall be delivered to the Subordinate
Trustee either:
(i) a certificate, dated as of a date between the date of pricing of the Subordinate Obligations being
issued and the date of delivery of such Subordinate Obligations (both dates inclusive), prepared by an
authorized city representative showing that the Subordinate Revenues for the last audited FY or any 12
consecutive months out of the most recent 18 consecutive months immediately preceding the date of
issuance of the proposed series of Subordinate Obligations, together with any transfer for the most
recently ended FY, were at least equal to 115% of maximum aggregate annual debt service with respect
to all outstanding Subordinate Obligations and the proposed series of Subordinate Obligations, calculated
as if the proposed series of Subordinate Obligations were then outstanding; or
(ii) a certificate, dated as of a date between the date of pricing of the Subordinate Obligations being
issued and the date of delivery of such Subordinate Obligations (both dates inclusive), prepared by a
consultant, nationally recognized as an expert in the area of air traffic and airport financial analysis,
showing that:
(A) the Subordinate Revenues for the last audited FY or for any 12 consecutive months out
of the most recent 18 consecutive months immediately preceding the date of issuance of the
proposed series of Subordinate Obligations, together with any transfer for the most recently
ended FY, were at least equal to 115% of the sum of the annual debt service due and payable
with respect to all outstanding Subordinate Obligations for such applicable period; and
(B) for the period from and including the first full FY following the issuance of such proposed
series of Subordinate Obligations during which no interest on such series of Subordinate
Obligations is expected to be paid from the proceeds thereof through and including the later of:
(1) the fifth full FY following the issuance of such series of Subordinate Obligations, or (2) the
third full Fiscal Year during which no interest on such series of Subordinate Obligations is
expected to be paid from the proceeds thereof, the estimated Subordinate Revenues, together
with any estimated Transfer, for each such FY, will be at least equal to 115% of the aggregate
annual debt service for each such Fiscal Year with respect to all outstanding Subordinate
Obligations and calculated as if (y) the proposed series of Subordinate Obligations were then
outstanding, and (z) any future series of Subordinate Obligations which the City estimates will be
required to complete payment of the estimated costs of construction of such portion of the
specified project and any other uncompleted portion of the specified project from which the
consultant projects additional Revenues will be generated were then outstanding.
For purposes of subparagraphs (i) and (ii) above, the amount of any transfer taken into account shall not
exceed 15% of the aggregate annual debt service on the outstanding Subordinate Obligations, the
proposed series of Subordinate Obligations and any future series of Subordinate Obligations included
pursuant to subparagraph (ii)(B)(z) of the previous paragraph.
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For purposes of subsections (ii)(B) above, in estimating Subordinate Revenues, the consultant may take
into account (1) Revenues from specified projects or other Airport Facilities reasonably expected to
become available during the period for which the estimates are provided, (2) any increase in fees, rates,
charges, rentals or other sources of Revenues which have been approved by the City and will be in effect
during the period for which the estimates are provided, and (3) any other increases in Revenues which
the consultant believes to be a reasonable assumption for such period. With respect to Operation and
Maintenance Expenses of the Airport System, the consultant shall use such assumptions as the
consultant believes to be reasonable, taking into account: (x) historical Operation and Maintenance
Expenses of the Airport System, (y) Operation and Maintenance Expenses of the Airport System
associated with the specified projects and any other new Airport Facilities, and (z) such other factors,
including inflation and changing operations or policies of the City, as the consultant believes to be
appropriate. The consultant shall include in the certificate or in a separate accompanying report the
calculations and assumptions made in determining the estimated Subordinate Revenues and shall also
set forth the calculations of aggregate annual debt service, which calculations may be based upon
information provided by another Consultant.
In certain circumstances, neither of the certificates described above under subsection (a) shall be required for the
issuance of additional Subordinate Obligations. For instance, if Subordinate Obligations are being issued for the
purpose of refunding then outstanding Subordinate Obligations and there is delivered to the Subordinate Trustee,
instead, a certificate of an authorized city representative or a consultant showing that maximum aggregate annual
debt service after the issuance of such refunding, Subordinate Obligations will not exceed maximum aggregate
annual debt service prior to the issuance of such refunding Subordinate Obligations.
4.3.4 Airline Use Agreement
The Department entered into 10-year AUA with the Signatory Airlines operating at the Airport effective July 1,
2014. The AUA is effective through June 30, 2024. The AUA establishes, among other things, procedures for
setting and adjusting rentals, rates, fees and charges to be collected for the use of Airport facilities. The Signatory
Airlines at the Airport include the following: Alaska, American, Delta, Frontier, JetBlue, Southwest and United.
Together, the Signatory Airlines and their respective regional affiliates accounted for nearly 100% of enplaned
passengers at the Airport in FY 2022.
In 2021, the Department offered extension amendments to the AUA and Delta and United Airlines extended their
AUAs through June 30, 2034. Subsequently in FY 2023 as part of negotiations over the fourth phase of the NCP,
Delta agreed to an additional amendment extending the term of its new AUA from July 1, 2024 through June 30,
2044 with options to extend through June 20, 2054 (Second Amendment). In addition to revising the term of the
agreement, the Second Amendment updates and modernizes various provisions to the AUA, including key
business terms to bolster the Department’s ability to fund the New SLC, generate additional cash flow to fund
capital development, and maintain financial stability as it has agreed to the new fourth phase of the NCP. One
key result per the change to the Second Amendment is the mitigation of terminal vacancy risk to the Department
as the Second Amendment provides a fixed airline share of the terminal requirement at 82% as opposed to the
ratio of space leased to the airlines. Revenue sharing with the signatory airlines has also been enhanced in the
Second Amendment. These changes are further described below under the ‘Airline Rate-Setting Methodology’
section. The Department is currently in discussions with the other Signatory Airlines regarding their execution of
the Second Amendment; however, expects Alaska Airlines and Southwest airlines will execute the Second
Amendment. Other Signatory Airlines are currently reviewing the Second Amendment and are also expected to
sign for a term through June 30, 2034..
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The AUA and Second Amendment govern airline use of certain Airport facilities, including Airfield, Terminal,
Aircraft Aprons, baggage claim, ticket counters and gate areas and permits the Signatory Airlines to lease
Exclusive Use Premises, Preferential Use Premises, and Joint Use Premises. Exclusive Premises generally
includes office space, storage areas, airline club lounges, and employee break rooms; and Preferential Use
Premises is Airport space, including holdroom areas and gates, ticket counters, and certain baggage makeup
areas, leased to a Signatory Airline and to which the Signatory Airline has a higher and continuous priority of use
over all other air carriers. Joint Use Premises generally includes baggage claim areas and baggage makeup
equipment.
The key provisions of the AUA and Second Amendment are summarized in the following sections and are used as
the basis for projecting airline revenues for this Report.
Airline Rate-Setting Methodology
As described earlier in this Chapter, the Airport has been segregated into seven direct cost and revenue centers
and two indirect cost centers for the purposes of setting rates and charges: two cost centers associated with the
airlines’ operations and five other Department cost and revenue centers. The cost centers associated with the
airlines are the Airfield Cost and Revenue Center and the Terminal Cost and Revenue Center, each of which is a
direct cost and revenue center, plus their allocated portions of the indirect cost centers. The Department’s other
five direct cost and revenue centers are Landside, General Aviation, Support, Auxiliary Airports, and Other, plus
their allocated portions of the indirect cost centers.
Landing Fees under the AUA and Second Amendment are calculated on an Airfield Cost and Revenue Center
residual basis where the Signatory Airlines are required to guarantee the total requirement. The cost of Capital
Investments allocable to the Airfield, including debt service on Bonds or amortization of Department equity, may
be included in the calculation of the Landing Fees upon approval from at least one Signatory Airline. Terminal
Rents under the AUA are calculated on a commercial compensatory basis where the Signatory Airlines essentially
pay rent for only the space they lease. However, in the Second Amendment effective July 1, 2024, the terminal
rental rate charged to the airlines will be based on a fixed 82% of the net terminal requirement being charged to
the airlines. The cost of Capital Investments allocable to the Terminal, including debt service on Bonds or
amortization of Department equity, may be included in the calculation of the Terminal Rents upon approval from
the Signatory Airlines. The Capital Investment costs associated with the New SLC, including debt service on
Bonds, has received the required approvals from the Signatory Airlines pursuant to the AUA.
The AUA and Second Amendment allow for the calculation and adjustment of Landing Fees and Terminal Rents
each FY, using budgeted aviation activity, expenses, and non-airline revenues. The Department may also adjust
Landing Fees and Terminal Rents during the current FY if certain conditions warrant an adjustment per the AUA.
The AUA also allows for a final adjustment of Landing Fees, Terminal Rents, and Revenue Sharing credits after
the annual audit of Department records. Any resulting Adjustment-to-Actual resulting from the final settlement is
included in the budget for the second subsequent FY and included as part of the calculation of Landing Fees and
Terminal Rents for such FY.
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Revenue Sharing
The AUA provides for the sharing of certain in-terminal and rental car concession revenues, excluding parking,
with the Signatory Airlines (Revenue Sharing). In the current AUA, all Revenue Sharing is applied directly to each
Signatory Airline based on a credit of $1 per enplaned passenger for up to 10 million enplaned passengers carried
by all Signatory Airlines at the Airport. If during any FY, the Signatory Airlines collectively carry more than 10
million enplaned passengers, the Department will provide an additional enhancement to Revenue Sharing for only
those enplaned passengers that exceed the 10 million base; provided, however, that the total revenue sharing
amount in any FY cannot exceed the least of (i) 30% of Net Remaining Revenue; (ii) the total amount of Annual
Adjusted Gross Revenues for Selected Concessions; and (iii) the Calculated Revenue Sharing Amount. The
Department’s obligation to provide Revenue Sharing to the Signatory Airlines in a given FY shall be solely from
annual adjusted gross revenues for selected concessions for such FY.
In the Second Amendment effective July 1, 2024, Revenue Sharing has been modified to increase to $1.40 per
enplaned passenger for up to 14 million enplaned passengers carried by all Signatory Airlines at the Airport. If
during any FY, the Signatory Airlines collectively carry more than 14 million enplaned passengers, the Department
will provide an additional enhancement to Revenue Sharing for only those enplaned passengers that exceed the
14 million base; provided, however, that the total revenue sharing amount in any FY cannot exceed the least of (i)
40% of Net Remaining Revenue; (ii) the total amount of Annual Adjusted Gross Revenues for Selected
Concessions; and (iii) the Calculated Revenue Sharing Amount. The Department’s obligation to provide Revenue
Sharing to the Signatory Airlines in a given FY shall be solely from annual adjusted gross revenues for selected
concessions for such FY. Exhibit G following this Chapter presents the Department’s Revenue Sharing
methodology pursuant to the AUA.
Throughout the FY, budgeted Revenue Sharing amounts are applied uniformly as a monthly credit to Signatory
Airlines’ invoices for Terminal Rents. For budgeting purposes, the Department applies only 95% of forecast
Revenue Sharing amounts throughout the FY. Revenue Sharing Adjustments-to-Actual are performed after the
end of the FY during the annual settlement process described above.
Department Cost Centers
The Department’s non-airline Cost and Revenue Centers are not subject to an airline rate-setting methodology.
Airport Revenues generated in these Cost and Revenue Centers can be used by the Department to meet various
obligations or be used for other authorized Airport System-related purposes. The Department bears the
responsibility and risk for the Department’s non-airline Cost and Revenue Centers.
The TRP
The AUA also contemplated the development of the TRP during the course of the term. Section 10.06 of the AUA
specifies special provisions regarding the TRP including memorializing that the Signatory Airlines have approved
and support the TRP and that the Department will use reasonable efforts to achieve the shared goal of a target
airline cost per enplaned passenger. Additional provisions regarding the TRP include procedures for designating
an airline technical representative, the development of contract documents, estimated costs and potential budget
overruns, change orders, the notice of claims, and for funding the development of the TRP including best efforts
to fund the project with federal and state grants, PFCs, CFCs, and the use of Bonds.
Signatory Airline Approval of Capital Improvement Projects
The Department and the Signatory Airlines agreed in the AUA that costs of certain Capital Investments are subject
to Signatory Airline consideration. Section 10.02 of the Second Amendment specifies that no costs or amortization
of Capital Investments, including debt service on Bonds, shall be charged to the Signatory Airlines in Landing
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Fees or Terminal Rents for any Capital Investments in the Airfield Cost and Revenue Center or in the Terminal
Cost and Revenue Center, respectively, unless Signatory Airlines accounting for at least 15% of enplaned
passengers have approved such Capital Investments. In the event the Department decides to undertake a Capital
Investment in these airline Cost and Revenue Centers, the Department and representatives from the Signatory
Airlines shall meet to discuss the methods for amortizing or allocating any associated Bonds debt service along
with the associated impacts to the Landing Fees and/or Terminal Rents resulting from such Capital Investment.
The Department has received all required approvals from the Signatory Airlines to undertake the capital
development projects described herein including the NCP, and to include debt service, including the Existing
Bonds, the Series 2023 Bonds, and additional Bonds allocable to the Airfield Cost and Revenue Center and
Terminal Cost and Revenue Center in the calculation of Landing Fees and Terminal Rents, respectively.
The Department may implement, at any time, certain types of Capital Investments that are not subject to
Signatory Airline consideration. These include the following:
Projects mandated by the FAA, DOT, TSA, or similar government authority
Projects to repair casualty damage to Airport property that must be rebuilt or replaced in order for the City
to meet its obligations pursuant to the AUA, Master Indenture, or other agreements with lessees at the
Airport
Projects undertaken in Cost and Revenue Centers other than the Airfield Cost and Revenue Center and
the Terminal Cost and Revenue Center
Reasonable repairs, rebuilding, improvements or additions, including the associated costs therefor,
necessary to comply with the AUA or applicable law or to settle lawful claims, satisfy judgements, or
comply with judicial orders against City by reason of its ownership, operation, maintenance or use of the
Airport
Expenditures of any emergency nature which, if not made within 48 hours, would result in the closing of
any portion of the Airport
Projects funded directly or indirectly by PFCs, CFCs or grants; provided, however, that this provision shall
not be interpreted as a waiver of Signatory Airline consultation rights under applicable laws
Projects undertaken to satisfy the specific requirements of any Signatory Airline so long as such Signatory
Airline agrees to pay all increased rentals, fees, charges, and operating and maintenance costs that are
sufficient to cover annual debt service and operating and maintenance costs associated with the project
Projects related to special purpose facilities for which the user agrees to pay or reimburse the Department
Extraordinary Coverage Protection
Section 8.11 of the AUA and Second Amendment also contains an extraordinary coverage protection provision
that allows for the Department to collect additional payments from the Signatory Airlines to satisfy the Rate
Covenant set forth in the Master Indenture. These amounts collected from the Signatory Airlines, if ever required,
are in addition to Landing Fees and Terminal Rents and are to be allocated to the Signatory Airlines in a fair and
not unjustly discriminatory manner in the reasonable discretion of the Executive Director of the Department.
4.3.5 Other Principal Business Agreements
New in-terminal concession contracts commenced with the opening of the New SLC in the fall of 2020, and all
former contracts terminated at that time with the full demolition of the former facilities. In-terminal concession
contracts have been timed with the New SLC opening. New contracts constitute 59 locations in the initial phase
opening of the New SLC, with all locations fully operational and following normal business hours The Department
issued a second request for proposals (RFP) for Phase II and awarded contracts during the summer of 2022.
Design and construction work for Phase II concessions is under way with planned openings to occur during the
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summer and fall of 2023. Proposals from a third RFP issued in the fall of 2022 are currently being reviewed for
openings to occur in 2024 and 2025. The Department will issue RFPs for a third-party/common use lounge and
concessions in 2024 as part of Phase IV of the New SLC. Continuing on with practices in the initial phase, the
Department intends to award locations in packages of varying, albeit smaller sizes, to existing and new
concessionaire partners with successful proposals.
In regard to rental cars and as indicated previously, the following nine brands operate at the Airport: Alamo, Avis,
Budget, Dollar, Enterprise, Hertz, National, Payless, and Thrifty. All of these rental car companies pay privilege
fees and must collect and remit CFCs. The Department contracts with SP Plus Corporation to manage and
operate on-Airport automobile parking facilities. In addition, the Department has agreements with cargo facility
and fixed base operators and tenants leasing hangars and buildings.
Airport non-airline agreements have various terms and conditions. In general, the business terms of these
agreements are based on industry standards and practices. Additional summaries of key non-airline agreement
terms are provided below:
Terminal Food and Beverage Agreements:
Concession fees range between 15% and 22% of gross revenues
Minimum annual guarantee (MAG) equal to 90% of prior year percentage rents or 103% of prior year
MAG, whichever is greater
Total MAG amounts for 2023 are currently estimated at $11 million
New contracts were initially planned to commence with the opening of the New SLC facilities in
September 2020 and October 2020 for a term of 10 years, but were revised because of the COVID-19
pandemic impacts
The 10-year term of the revised contracts commenced upon the sooner of achieving 90% of 2019
enplaned passenger levels for three consecutive months or September 1, 2021.
A second phase of concessions contracts is expected to be subject to a competitive process and
scheduled to open commensurate with the facilities remaining to be completed as part of the New SLC.
Terminal Retail Agreements:
Percentage rents range between 10% and 25% of gross revenues
MAG equal to 90% of prior year percentage rents or 103% of prior year MAG, whichever is greater
Total MAG amounts for 2023 are currently estimated at $8 million
New contracts were initially planned to commence with the opening of the New SLC facilities in
September 2020 and October 2020 for a term of eight years, but were revised because of the COVID-19
pandemic impacts
The term of the revised contracts commenced upon the sooner of achieving 90% of 2019 enplaned
passenger levels for three consecutive months or September 1, 2021.
A second phase of concessions contracts is expected to be subject to a competitive process and
scheduled to open commensurate with the facilities remaining to be completed as part of the New SLC.
Parking and Shuttle Management Agreement:
Includes automobile parking facilities, shuttle bus operations, and aircraft hardstand bus operations
Term of agreement with SP Plus Corporation expires June 30, 2026, with two, 2-year extension options at
the Department’s sole discretion
Rental Car Concession Agreement:
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Concession fees equal to 11.11% on all on-Airport customer contracts or the MAG, whichever is greater
annually
MAG equal to 85% of prior year gross revenues or 103% of prior year MAG, whichever is greater, and it
reset in September 2020 at the opening of new parking garage and continues at the greater value
through term
Total MAG amounts for 2023 are approximately $22 million
In addition to the MAG, each on-Airport rental car company will pay fair market value rent for the use of
the QTA, RSS, parking stalls, and customer service counters
Term of agreement is 10 years expiring on February 28, 2026
4.3.6 CARES Act Grant Assistance
The CARES Act was approved by the U.S. Congress and signed by President Trump on March 27, 2020. It is one
of the legislative actions taken to address the crisis associated with the COVID-19 pandemic and includes among
its relief measures $10 billion of direct aid in the form of grants for U.S. airports, as well as direct aid, loans and
loan guarantees for passengers and cargo airlines.
The FAA announced in April 2020 that it had allocated approximately $82.5 million to the Department for the
Airport System. The Department may draw on such funds, on a reimbursement basis, for any purpose for which
airport revenues may be lawfully used in accordance with FAA rules and regulations.
The Department used approximately $3.9 million of CARES Act funds in FY 2020 for the reimbursement of
Operating Expenses, approximately $66.0 of CARES Act funds in FY 2021, and approximately $12.6 million of
CARES Act funds in FY 2022. For the purposes of the Rate Covenant and the test for Additional Bonds pursuant
to the Master Indenture, Operating Expenses net of such reimbursement amounts are the amounts used in those
calculations.
4.3.7 Coronavirus Response and Relief Supplemental Appropriation Act
On December 27, 2020, the Consolidated Appropriations Act, 2021 was signed. Division M of that Act is the
CRRSAA. Title IV of CRRSAA provides approximately $2 billion in economic relief to airports to prevent, prepare
for, and respond to the COVID-19 public health emergency, including funds set aside for relief from rent and
MAGs for eligible airport concessions at primary airports.
The FAA announced on February 12, 2021 that it had allocated approximately $23.4 million to the Department. Of
that amount, approximately $2.8 million must be used for concessionaire relief. Under the grant program, the
Department may use these funds to retain its workforce, make debt service payments, or offset increased
operational costs from enhanced mitigation efforts to limit the spread of COVID-19. The Department applied $20.6
million for the reimbursement of Operating Expenses in FY 2022. As described above, for the purposes of the
Rate Covenant and the test for Additional Bonds pursuant to the Master Indenture, Operating Expenses net of
such reimbursement amounts are the amounts used in those calculations.
4.3.8 American Rescue Plan Act
On March 11, 2021, the President signed the ARPA, a $1.9 trillion economic stimulus package designed to help
the United States’ economy recover from the adverse impacts of the COVID-19 pandemic. In addition to other
economic relief, ARPA includes financial relief for certain eligible airports. For eligible airports, ARPA appropriates
$8 billion to assist such airports to prevent, prepare for, and respond to COVID-19, and such amounts remain
available until September 30, 2024.
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The FAA announced on June 22, 2021 that it had allocated approximately $91.7 million to the Department. Of that
amount, approximately $11.0 million must be used for concessionaire relief. The Department applied $6.8 million
to the reimbursement of Operating Expenses in FY 2022. It has applied $37.0 million to the reimbursement of
Operating Expenses in FY 2023 and plans to apply the remaining $37.0 million for reimbursement of Operating
Expenses in FY 2024. The Department is planning to have all of its allocated ARPA funds reimbursed by
December 2023.
Table 4-1 presents the summary of federal relief funding by program and year applied.
Table 4-1 Summary of Federal Funding Application by Fiscal Year (dollars in millions)
Actual Budget
Total FY 2020 FY 2021 FY 2022 FY 2023 FY 2024
CARES Act $3.9 $66.0 $12.6 $82.5
CRRSSA 20.6 20.6
ARPA 6.8 37.0 37.0 80.8
BIL (Infrastructure) 25.2 25.2 25.2 125.8
ATP (Airport
Terminal Program)
29.0 29.0
Total $3.9 $66.0 $65.2 $62.2 $91.2 $338.7
4.4 Debt Service
The Department plans to issue the Series 2023 Bonds to (1) fund a portion of the costs of the New SLC, (2) fund
capitalized interest on the Series 2023 Bonds, (3) fund a deposit to the Common Debt Service Reserve Fund, and
(4) pay the costs of issuance of the Series 2023 Bonds. Table 4-2 presents the estimated sources and uses for
the Series 2023 Bonds and future Bonds currently estimated to be required to fund the remaining portions of the
New SLC. The estimated sources and uses of funds and debt service for the proposed Series 2023 Bonds were
prepared by the Department’s municipal advisor, PFM Financial Advisors LLC (PFM).
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Table 4-2 Outstanding Bonds, Series 2023 Bonds and Future Bonds Estimated Sources and
Uses (dollars in thousands)
Sources Series 2023 Future Bonds Total
Par Amount of Bonds $445,240 $861,025 $1,306,265
Premium 11,326 15,385 26,711
Total Sources $456,566 $876,410 $1,332,976
Uses:
Construction Funds $400,000 $752,606 $1,152,606
Capitalized Interest 23,638 55,293 78,930
Common Debt Service Reserve Fund 30,252 63,339 93,592
Cost of Issuance 2,676 5,172 7,847
Total Uses $456,566 $876,410 $1,332,976
Note: Amounts may not add because of rounding.
Source: PFM Financial Advisors LLC, April 2023
Exhibit B presents annual Debt Service for the Projection Period of FY 2023 through 2030. Existing Bonds debt
service, planned Series 2023 Bonds debt service, and future debt service, net of capitalized interest, is projected
to be approximately $275.1 million in FY 2028 upon completion of the New SLC. Total annual debt service, net of
PFC revenues applied to pay debt service on the Existing Bonds, planned Series 2023 Bonds, and future Bonds,
is estimated to be approximately $217.1 million by FY 20XX when all elements of the New SLC are expected to
be operational, and approximately $XXX million by FY 2030. Debt Service estimates were provided by PFM and
are based on the assumptions included in Table 4-3.
Table 4-3 Assumptions for the Series 2023 Bonds and Future Bonds (dollars in millions)
Assumption Series 2023 Future Bonds
Issuance Date 7/1/2023 7/1/2024; 1/1/2026
Par Amount $445,240 $861,025
Project Fund Deposit $400,000 $752,606
Bond Yield %5.05 %5.60
Final Maturity 7/1/2053 7/1/2054; 7/1/2055
Source: PFM Financial Advisors LLC, April 2023
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4.5 Operating Expenses
Table 4-4 presents historical Operating Expenses and capital outlays of the Department for the last five FYs or for
FY 2019 through FY 2023.50 This period has been chosen to present trends immediately following the onset of the
COVID-19 pandemic (FY 2020 versus FY 2019) and trends during the recovery period (FY 2020 through FY
2023). For the period of FY 2019 through FY 2023, total Operating Expenses increased from approximately
$108.1 million in FY 2019 to approximately $130.3 million in FY 2023, a CAGR of approximately 4.8%. While the
Department had budgeted a significant increase in Operating Expenses in FY 2020 of $120.4 million primarily due
to the upcoming opening of the New SLC, it was able to stabilize Operating Expenses upon the arrival of the
pandemic and limit increases such that they increased by 4.0% to $112.4 million. For each year since FY2020,
the Airport has applied CARES, CRRSAA, and ARPA grants to eligible operating expenses: $3.9 million in FY
2020, $66.1 million in FY 2021, and $39.7 million in FY 2022. It is estimated in FY 2023 that $37 million in federal
grants will be applied to eligible operating expenses.
Table 4-4 Historical Operating Expenses and Capital Outlays (dollars in millions)1
FY
2019
FY
2020
FY
2021
FY
2022
FY
20232
CAGR
19-20 20-23 19-23
Salaries and Benefits $48.7 $48.5 $50.4 $54.7 $60.6 (0.4%) 7.7% 5.6%
Materials and Supplies 12.6 12.4 11.0 13.7 16.0 (1.8%) 8.9% 6.1%
Services3 29.2 27.8 43.9 54.4 59.4 -4.8% 28.8% 19.4%
Other Operating Expenses4 2.8 3.0 3.6 3.8 7.1 6.6% 33.8% 26.5%
Intergovernmental Charges 13.5 18.1 18.4 20.3 22.0 33.8% 6.6% 12.9%
Capital Outlays 1.2 2.6 4.7 2.5 2.2 109.5% (4.9%) 15.9%
Total Operating Expenses
& Capital Outlays $108.1 $112.4 $132.0 $149.5 $167.3 4.0% 14.2% 11.5%
Federal Grants Credits5 0.0 (3.9) (66.1) (39.7) (37.0)
Net Operating Expenses &
Capital Outlays $108.1 $108.5 $65.9 $109.8 $130.3 0.4% 6.3% 4.8%
1 Amounts shown are those included in airline rates and charges and may vary from the Department’s financial reports for
various reasons, including the treatment of non-cash items.
2 Estimated results
3 Includes utilities
4 Includes insurance premiums
5 Includes amounts allocated to the Airport from the CARES Act and CRRSA Act that were used to reimburse the
Department for eligible Operating Expenses.
Amounts may not add because of rounding.
Source: Department records, March 2023
50 Data for FY 2021 is estimated based on partial year data.
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The primary categories of Operating Expenses include salaries and benefits, materials and supplies, services,
other operating expenses, intergovernmental charges, and capital outlays less than $100,000. Additionally,
Exhibit C after this Chapter presents annual Operating Expenses of the Department for the Airport System for the
Projection Period.
Key Operating Expenses categories and assumptions in projecting future growth are summarized below. These
categories account for about 96% of the Airport System’s total Operating Expenses for FY 2022.
Salaries and Benefits: This expense category includes salaries, wages, and benefits associated with
Department staff. It is the largest single category of Operating Expenses at the Airport System as it
represented approximately 37% of total Operating Expenses at the Airport System for FY 2022. The
Department was able to keep salaries and benefits expenses relatively flat in FY 2020 as compared to FY
2019 (-0.4%). Since FY 2020, salaries have increased at a CAGR of 7.7% through estimated FY 2023.
As presented above, these expenses increased at a CAGR of approximately 5.6% for the period FY 2019
through FY 2023. In FY 2024, these expenses are budgeted to increase by approximately 17.3% from FY
2023 (estimated) to approximately $71.1 million. Salaries and Benefits expenses are projected to
increase at a CAGR of 4.0% from budget FY 2024 through FY 2030.
Services: This expense category includes costs associated with the Department’s outsourcing for
janitorial services, maintenance contracts, professional services, other contractual services, and utilities at
the Airport System. It is the second largest category of Operating Expenses at the Airport System as it
represented approximately 36% of total Operating Expenses at the Airport for FY 2022.In FY 2020, the
Department was able to decrease these expenses by 4.8%, from $29.2 million to $27.8 million. Between
FY 2020 and FY 2023, this category of expenses increased at a rate of 28.8% [as maintenance contracts
for the new terminal facilities and the busing operation for the aircraft hardstand operation come online.] .
Future services Operating Expenses are projected to decrease in FY 2025 by 6.4%, reflecting the
decrease in aircraft hardstand operation costs, and then increase at a CAGR of approximately 4.0% for
FY 2026 through FY 2030.
Materials and Supplies: Materials and supplies expenses of the Airport System comprised
approximately 9% of total Operating Expenses for FY 2022. This category of expenses dropped (1.8%)
between FY2019 and FY2020, But has grown at a CAGR of 8.9 between FY 2020 and FY 2023. Future
material and supplies Operating Expenses are projected to increase at a CAGR of approximately 4.0%
through FY 2030.
Intergovernmental Charges: This expense category includes charges to the Department for the use of
aircraft rescue and firefighting services, the use of the City’s Police Department effective in October 2018,
and for other allocable costs for the use of City services. Intergovernmental charges expenses at the
Airport System comprised approximately 14% of total Operating Expenses at the Airport System for FY
2022. Future intergovernmental Operating Expenses are projected to increase at a CAGR of
approximately 4.0% through FY 2030.
Overall, the projection of Operating Expenses is based on historical trend reviews, the anticipated impacts of
inflation, the recovery from the impacts associated with the COVID-19 pandemic, projected activity levels, and
cost impacts associated with the New SLC and Other Capital Projects. Exhibit C presents Operating Expenses by
category and cost center through FY 2030. Total Operating Expenses are projected to increase at a CAGR of
approximately 4.1% over the projection period from budget FY 2024 to FY 2030.
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4.6 Non-Airline Revenues
Table 4-5 presents historical non-airline revenues along with growth rates for the Airport System for the period of
FY 2019 to FY 2023 (estimated).51 As shown for FY 2022, the three primary categories of non-airline revenues
(e.g., auto parking, car rental, and terminal concessions) accounted for approximately 70% of the Airport System’s
total non-airline revenues.
The significant decline in passenger traffic at the Airport associated with the COVID-19 pandemic had a major
effect on non-airline revenues. In FY 2020, total non-airlines revenues declined from FY 2019 levels by 14.2%,
from $117.9 million to $101.1 million, with a further decline to $96.5 million in FY 2021. However, with the recovery
of passenger traffic in FY2022, Non-Airline Revenues have increased past pre-pandemic levels.
Exhibit D presents non-airline revenues at the Airport System for the Projection Period, including assumed
incremental impacts associated with the NCP. Non-airline revenues, including Airfield and Terminal offsets to
airline rates and charges, are [projected] at approximately $169 million in FY 2024 and are projected to increase
to approximately $213 million in FY 2030. This increase in non-airline revenues between FY 2024 and FY 2030
represents a CAGR of approximately 4.0%. In general, the projection of non-airline revenues is based on
historical trend reviews, projected activity levels, the recovery from the COVID-19 pandemic, and impacts
associated with the New SLC. Non-airline revenues are further described in the following sections.
Table 4-5 Historical Airport Non-Airline Revenues (dollars in millions)1
FY
2019
FY
2020
FY
2021
FY
2022
FY
20232
CAGR
19-20 20-23 19-23
Auto Parking $36.3 $28.0 $23.5 $48.8 $58.2 (22.9%) 27.7% 12.6%
Car Rental 29.9 25.4 24.3 34.5 36.3 (15.1%) 12.6% 5.0%
Terminal Concessions 20.5 16.7 11.9 20.7 24.0 (18.5%) 12.9% 4.1%
Other 31.3 31.1 36.8 44.6 37.3 (0.5%) 6.2% 4.5%
Total Non-Airline Revenues $117.9 $101.1 $96.5 $148.6 $155.8 (14.2%) 15.5% 7.2%
Enplaned Passengers
(millions) 13.1 10.1 7.7 12.8 13.3 (22.9%) 9.6% 0.4%
Non-Airline Revenues per
Enplaned Passenger $9.00 $10.00 $12.53 $11.61 $11.71 11.1% 5.4% 6.8%
1 Amounts shown are those included in airline rates and charges and may vary from the Department’s financial reports for
various reasons, including the treatment of non-cash items.
2 Estimated results.
Source: Department records, March 2023
51 Data for FY 2023 is estimated based on partial year data as audited data is not available.
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4.6.1 Auto Parking
Auto parking revenues historically have represented the largest component of non-airline revenues at the Airport
System, accounting for approximately 32% of total non-airline revenues for FY 2022. Parking revenue fell
significantly between FY 2019 and FY 2020, dropping proportionately with enplanements by 22.9%. However,
since FY2020, the recovery in parking revenues has outpaced the recovery in enplanements, growing at a CAGR
of 27.7% from FY 2020 to FY 2023.
The Department has implemented certain parking rate changes during this period including increases in the
Economy Lot, Parking Garage, and the implementation of Premium Reserved Parking. The Department also
opened Lot E on the eastern side of the new parking garage and QTA facility where customers can walk to the
terminal. Table 4-6 presents public parking rates at the Airport since FY 2015. As shown in the table, the
Department monitors public parking rates and implements rate changes periodically. Additionally, the Department
offers a variety of parking options to address the differing needs of its customer base. The Department has been
able to realize revenue gains resulting from these increases and the differing products as demand has continued
to increase. In addition, the new parking garage opened in September 2020, which essentially has doubled
garage parking capacity. These factors have led to a CAGR of 12.6% between FY 2019 and FY 2023, even
though enplanements have only just reached pre-pandemic levels.
As of April 2023, three primary off-airport parking companies also provide parking services to passengers, in
competition with the Department.
Table 4-6 Public Parking Rates at the Airport (daily maximum rates)
Parking Facility
FY
2015
FY
2016
FY
2017
FY
2018
FY
2019
FY
2020
FY
2021
FY
2022
FY
2023
Economy Lot $9 $9 $9 $9 $9 $10 $10 $10 $10
Lot E1 n/a n/a n/a n/a n/a $21 $21 $21 $21
Parking Garage2 $28 $32 $32 $32 $32 $35 $35 $35 $35
Premium Reserved Parking n/a $50 $50 $50 $50 $55 $55 $55 $55
1 Lot E opened in September 2020.
2 The new parking garage opened in September 2020.
Source: Department records
For the period of FY 2024 through FY 2030, auto parking revenues are projected to increase at a CAGR of 4.2%.
The projection assumes rate increases generally in line with inflationary trends combined with O&D passenger
count growth.
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4.6.2 Car Rental
Rental car concessions are the second largest source of non-airline revenue at the Airport, approximately 23% in
FY 2022. In FY 2020, rental car revenues decreased primarily because of the impacts associated with the
COVID-19 pandemic to $25.4 million. The car rental revenue rate of decline of 15.1% was more favorable than
the rate of the decrease associated with enplaned passengers. Since FY 2020, the recovery in rental car
concessions has outpaced the enplanement recovery, growing at a CAGR of 12.6% through FY 2023. Rental car
concessions are projected at approximately $38 million in FY 2024.
For the period of FY 2024 through FY 2030, car rental revenues are projected to increase at a CAGR of 3.6%.
The projection assumes increases associated with the passenger recovery and inflationary trends.
4.6.3 Terminal Concessions
In FY 2020, terminal concessions decreased primarily because of the impacts associated with the COVID-19
pandemic to $16.7 million. The revenue rate of decline of 18.5% was more favorable than the rate of the decrease
associated with enplaned passengers. Since FY 2020, terminal concessions have recovered beyond FY 2019
levels, at a CAGR of 12.9% between FY 2020 and FY 2023. The Departments unaudited sales per enplaned
passenger have increased from $8.72 in August 2019 to $12.04 for the month of January 2023.
Given the lack of space for terminal concessions in the legacy airport, additional revenue improvements are being
realized as the concessions program continues to expand along with new phases of construction. Terminal
Concessions are projected at approximately $24 million in FY 2024. For the period of FY 2024 through FY 2030,
terminal concession revenues are projected to increase at a CAGR of 3.9%. The projection assumes increases
related to the passenger recovery, the opening of new concessions related to the New SLC, and inflationary
trends.
4.6.4 Other
Other non-airline revenues primarily include a State of Utah aviation fuel tax, other tenant leases, ground
transportation and TNC revenues, cargo building rents, hangar rents, fixed base operator rents, and other
buildings at the Airport leased by the Department. Ground transportation and TNC revenues were significantly
impacted by the COVID-19 pandemic, decreasing from $6.2 million in FY 2019 to $2.9 million in FY 2021.
However, these revenues have recovered along with enplanements since then, growing to $7.0 million in FY
2023. Many of the other revenues in the category are not as impacted by air traffic activity as the other categories
described above. In FY 2020, other revenues remained relatively flat from the prior year at $31.1 million. The
projection for other non-airline revenues assumes increases generally in line with inflationary trends.
4.7 Airline Revenues
Airline revenues at the Airport include Landing Fees and Terminal Rents. The rate-setting formulas for Landing
Fees and Terminal Rents are consistent with the rate-setting methodologies set forth in the AUA and described
earlier in this Chapter. Exhibits E and F further illustrate the rate-setting methodologies for the Landing Fees and
Terminal Rents, respectively. In addition, projected Revenue Sharing consistent with the AUA is presented on
Exhibit G. The business terms of the AUA are used as the basis for projecting airline revenues for the purposes
of this Report.
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4.7.1 Landing Fees
Exhibit E presents the calculation of Landing Fees for FY 2022 (actual) and the Projection Period. Per the residual
rate-setting methodology, the Department fully recovers direct and allocated indirect costs for airline use of the
Airfield cost center. The total requirement is reduced by estimated non-airline revenues projected in each FY to
calculate the Airfield Revenue Requirement.
As presented in Exhibit E, the Signatory Airline Landing Fee Rate per 1,000-pound unit of landed weight was
$2.70 for FY 2022. Throughout the Projection Period, the Signatory Airline Landing Fee rate is projected to
increase up to $5.51 by FY 2030.
Total Landing Fees are projected to increase from approximately $43.1 million in FY 2022 to approximately $110.7
million in FY 2030. This represents a CAGR of approximately 17.0%.
4.7.2 Terminal Rents
Exhibit F presents the calculation of Terminal Rents for FY 2022 and the Projection Period. Per the rate-setting
methodology, the Department recovers Terminal Rents from the Signatory Airlines based on a commercial
compensatory methodology per the current AUA and a fixed cost recovery rate per the amended AUA that starts
in FY 2025. The conditioned terminal rental rate per square foot in 2022 was $150.66. Over the Projection Period,
the conditioned terminal rate is expected to increase to $328.71 in FY 2030. Exhibit F presents the projected
Terminal Rents over the Projection Period.
Total Terminal Rents are projected to increase from approximately $69.0 million in FY 2022 to approximately
$251.1 million in FY 2030. This represents a CAGR of approximately 24.0% as the Terminal Rents include future
debt service and increased operating expense impacts associated with the New SLC.
4.7.3 Revenue Share
Exhibit G presents the calculation of Revenue Share pursuant to the AUA, which is allocated to each Signatory
Airline on the basis of their enplaned passenger market share. As described above in Section 4.3.3 and as shown
on Exhibit G, Revenue Sharing amounts for FY 2022 were approximately $13.5 million. Revenue Sharing is
projected to be approximately $15.1 million in FY 2024, the final year of the existing agreement’s calculation
methodology. In FY 2025, the first year of the new agreement’s calculation, revenue sharing is projected to
increase to $19.9 million. For the period of FY 2026 through FY 2030, Revenue Sharing amounts are projected to
range between $20.7 million and $23.6 million.
4.7.4 Signatory Airline Cost per Enplaned Passenger
A key indicator for airline costs at an airport is the average Cost per Enplaned Passenger (CPE). Exhibit H
presents the projection of CPE for the Signatory Airlines at the Airport. As shown, the Signatory Airline CPE
includes the Signatory Landing Fees and Terminal Rents less the Revenue Sharing amounts divided by total
Signatory enplaned passengers. CPE for FY 2022 was $7.43. Over the projection period, Signatory Airline CPE is
expected to increase as the elements of the New SLC become operational and the associated costs are included
within the airline rate base. In FY 2025, CPE is projected to increase to $18.37 and peak in FY 2028 at $20.49.
Signatory Airline CPE throughout this period is projected to remain at levels competitive with other Large Hub
airports in the western U.S.
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4.8 Application of Airport Revenues
Exhibit I presents the application of Revenues for the Airport System throughout the projection period consistent
with the requirements of the Master Indenture. As presented, the City is expected to experience an annual net
surplus (amount deposited into the Surplus Fund) after the payment of Operating Expenses and debt service and
required deposits to the Operations and Maintenance Reserve Fund and the Renewal and Replacement Fund in
each year of the projection period. The deposit to the Surplus Fund for FY 2022 was approximately $67.1 million.
Over the Projection Period, the annual deposit to the Surplus Fund is expected to decrease through FY 2024,
down to $52.4 million. After the Second Amendment becomes effective in FY 2025, the deposit to the Surplus
Fund is expected to increase to $74.9 million and grow each year, with the largest projected deposit of
approximately $91.7 million occurring in FY 2030. Revenues deposited into the Surplus Fund are planned to be
used to fund the ongoing New SLC and Other Capital Projects throughout the projection period.
4.9 Net Revenues and Debt Service Coverage
Exhibit J presents Net Revenues and debt service coverage ratio projections throughout the projection period. As
presented, the Airport System Net Revenues are projected to increase from $139.9 million in FY 2022 to $308.7
million in FY 2030. This increase in Net Revenues is primarily driven by the increased revenue requirements
included in airline rates and charges because of the future debt service associated with the New SLC. Per the
Master Indenture, the City is able to include amounts available in the Rolling Coverage Account on the last
business day of the applicable FY for the purposes of calculating debt service coverage. Total amounts available
for debt service (e.g., Net Revenues plus amounts available in the Rolling Coverage Account) are projected to
increase from approximately $155.2 million in FY 2022 to approximately $362.7 million in FY 2030. As the City
issues additional Bonds to fund the New SLC, debt service coverage ratios are projected to range from 2.45x in
FY 2022 to 1.66x in FY 2028.
As required pursuant to the Rate Covenant, Revenues must be sufficient in each FY to pay the following amounts:
(1) Operation and Maintenance Expenses of the Airport System due and payable during each FY; (2) the Annual
Debt Service on any Outstanding Bonds required to be funded by the City in each FY as required by the Master
Indenture or any Supplemental Indenture with respect to the Outstanding Bonds; (3) the required deposits to the
Common Debt Service Reserve Fund or any Series Debt Service Reserve Fund which may be established by a
Supplemental Indenture; (4) the reimbursement owed to any Credit Provider or Liquidity Provider as required by a
Supplemental Indenture; (5) the interest on and principal of any indebtedness of the Department required to be
funded during each FY, other than for Outstanding Bonds, but including Subordinate Obligations; and (6) funding
of any debt service reserve funds created with respect to any indebtedness of the Department, other than
Outstanding Bonds, but including Subordinate Obligations. As presented on Exhibit J, the City is projected to
satisfy the Rate Covenant requirement in each year.
In summary, Table 4-7 presents projections of debt service coverage ratios and airline CPE under the baseline
projection.
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Table 4-7 Debt Service Coverage and Passenger Airline CPE Projections
Fiscal Year Debt Service Coverage Ratio Airline CPE
2022 (actual) 2.45 $7.43
2023 2.14 $7.65
2024 1.86 $11.83
2025 1.85 $18.37
2026 1.71 $19.32
2027 1.68 $19.85
2028 1.66 $20.49
2029 1.67 $20.23
2030 1.68 $19.88
Source: Landrum & Brown, Inc.
4.10 Sensitivity Scenario Financial Analysis [TO BE PROVIDED]
As presented in Chapter 3, L&B prepared a enplaned passengers projection sensitivity scenario in addition to the
baseline projection. This scenario was prepared because of the ongoing uncertainty related to the level of impact
and duration of the COVID-19 pandemic on air traffic recovery. The assumptions for this scenario are described in
more detail in Section 3.4.5 of this Report. For the purposes of the financial analysis, key assumptions are as
follows:
Current Airline Agreements business terms and conditions remain in effect through the projection period.
Funding and timing of the New SLC and the Other Capital Projects remain as assumed in the baseline
financial analysis.
Operating Expenses increase as projected in the baseline financial analysis.
Non-airline revenues are assumed to remain at a consistent ratio of revenues per enplanement as the
baseline financial analysis, however, projected non-airline revenues are reduced based on the assumed
slower recovery of enplaned passengers.
PFC revenues are lower as compared to the baseline financial analysis based on lower enplaned
passengers projected.
Table 4-8 presents projected debt service coverage and airline CPE for the slower recovery scenario. As shown,
under each scenario, the Department is projected to continue to satisfy its Rate Covenant set forth in the Master
Indenture throughout the projection period. However, it should be noted that, given the uncertainty regarding the
COVID-19 pandemic, it is possible that airline traffic recovery could be delayed beyond what is assumed under
the slower recovery scenario. Such a scenario may require additional steps to be taken by the Department to
reduce Operating Expenses or undertake other financial or operational measures beyond what is contemplated in
this Report in order to continue to meet its Rate Covenant obligations and mitigate airline CPE.
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Table 4-8 Sensitivity Analysis Results: Debt Service Coverage and Airline CPE
Fiscal Year
Enplaned
Passengers
% of Baseline
Enplaned Passengers
Debt Service
Coverage Ratio Airline CPE
2022 (actual) 12,802 100.0% 2.45 $7.41
2023 % $
2024 % $
2025 % $
2026 % $
2027 % $
2028 % $
2029 $
2030 $
Source: Landrum & Brown.
As previously indicated, many of the factors affecting air travel demand are not necessarily quantifiable. As a
result, all projections are subject to uncertainty. While the global COVID-19 pandemic is currently ongoing, other
economic disturbances could occur over the Projection Period. Therefore, these projected financial results, as
with any projection, should be viewed as a general indication of future results as opposed to a precise prediction.
Actual future results are likely to vary from this projection, and such variances could be material.
Exhibit A
THE NEW SLC AND OTHER CAPITAL PROJECTS - PLAN OF FINANCE SALT LAKE CITY DEPARTMENT OF AIRPORTS
(Dollars in Thousands for Fiscal Years Ending June 30)
Funding Sources (a)
Total PFC Revenues CFC Revenues Existing Future
Project costs AIP / TSA (pay-as-you-go)(pay-as-you-go)Airport Funds Bonds (b)Bonds (c)
Terminal Redevelopment Program (TRP)$2,830,055 $62,747 $332,838 $199,036 $275,214 $1,831,532 $128,688
North Concourse Program (NCP)2,304,919 117,386 0 0 295,952 867,663 1,023,918
Other Capital Projects 519,437 193,180 0 0 326,257 0 0
Total TRP, North Concourse Program, and Other Capital Projects $5,654,411 $373,313 $332,838 $199,036 $897,423 $2,699,196 $1,152,605
Note: Amounts may not add due to rounding.
Sources: Salt Lake City Department of Airports (project costs, AIP/TSA, PFC Revenues, and CFC Revenues); Landrum & Brown, Inc. (Airport Funds and Future Bonds); PFM Financial Advisors LLC (Series
Series 2018 Bonds, and Series 2021 Bonds)
Compiled by: Landrum & Brown, Inc.
(a)Includes capital projects that have been paid for with Airport funds, PFC revenues and CFC revenues prior to January 31, 2023.
(b)Includes interest earnings from the Series 2017 Debt Service Fund and 2018 Debt Service Fund that is accrued prior to the first year of debt service.
(c)Includes planned Series 2023 Bonds and Future Bonds.
Exhibit B
DEBT SERVICE SALT LAKE CITY DEPARTMENT OF AIRPORTS
(Dollars in Thousands for Fiscal Years Ending June 30)
Actual
2022 2023 2024 2025 2026 2027 2028 2029 2030
Debt service (a)
Series 2017 Bonds $70,288 $48,926 $56,946 $61,425 $63,590 $71,034 $73,657 $73,659 $73,662
Series 2018 Bonds 33,224 57,224 49,578 59,563 59,558 59,558 59,560 59,556 59,559
Series 2021 Bonds 6,369 7,030 28,559 52,880 57,411 57,411 57,411 57,413 57,410
Debt service on Future Bonds (a)
Future Bonds (b)$0 $0 $26,862 $41,713 $58,610 $70,054 $84,511 $86,243 $86,243
Line of Credit 2,100 2,100 788 0 0 0 0 0 0
Total debt service $111,980 $115,279 $162,732 $215,579 $239,169 $258,057 $275,139 $276,871 $276,874
Less: PFCs applied to debt service ($48,676)($45,290)($49,749)($61,232)($54,597)($56,607)($58,075)($59,555)($61,046)
Total net debt service $63,304 $69,989 $112,982 $154,347 $184,572 $201,450 $217,063 $217,316 $215,828
Allocation of debt service to Cost Centers
Airfield $5,830 $6,857 $9,679 $18,889 $20,956 $22,611 $24,108 $24,260 $24,260
Terminal 51,385 56,820 94,393 130,077 157,646 172,397 186,087 186,145 184,657
Landside 6,088 6,312 8,911 5,381 5,970 6,441 6,868 6,911 6,911
Total net debt service $63,304 $69,989 $112,982 $154,347 $184,572 $201,450 $217,063 $217,316 $215,828
Note: Amounts may not add because of rounding.
Source: Airport records (actual and budget); PFM Financial Advisors LLC (Series 2017 Bonds, Series 2018 Bonds, and Series 2021 Bonds); Landrum & Brown (Future Bonds)
Compiled by: Landrum & Brown, Inc.
(a) Debt service is net of capitalized interest.
(b) Includes planned Series 2023 Bonds and Future Bonds.
Projected
Exhibit C
OPERATING EXPENSES AND CAPITAL OUTLAYS SALT LAKE CITY DEPARTMENT OF AIRPORTS
(Dollars in Thousands for Fiscal Years Ending June 30)
Actual Projected
2022 2023 2024 2025 2026 2027 2028 2029 2030
Operating Expenses and Capital Outlays
Salaries and benefits $55,047 $60,520 $71,074 $73,933 $76,890 $79,966 $83,164 $86,491 $89,951
Materials and supplies 13,673 15,968 18,940 19,697 20,485 21,304 22,157 23,043 23,965
Services 54,444 59,428 74,969 70,159 72,965 75,884 78,919 82,076 85,359
Other Operating Expenses 3,806 7,141 7,129 7,414 7,710 8,019 8,339 8,673 9,020
Intergovernmental charges 20,312 21,966 23,502 24,442 25,420 26,436 27,494 28,594 29,737
Capital Outlays 2,542 2,249 2,768 2,879 2,994 3,113 3,238 3,367 3,502
Subtotal Operating Expenses and Capital Outlays $149,824 $167,272 $198,381 $198,523 $206,464 $214,722 $223,311 $232,244 $241,534
Less:
CARES Act grants ($12,610)$0 $0 $0 $0 $0 $0 $0 $0
CRRSAA grants ($20,585)0 0 0 0 0 0 0 0
ARPA grants (6,800)(36,935)(36,935)0 0 0 0 0 0
Incremental TRP, NCP, and Other Capital Projects impact $0 $0 $0 $8,178 $9,011 $9,845 $10,215 $10,624 $11,049
Total Operating Expenses and Capital Outlays $109,828 $130,337 $161,446 $206,701 $215,475 $224,567 $233,526 $242,867 $252,582
Allocation of Operating Expenses and Capital Outlays to Cost Centers
Airfield $35,325 $42,551 $54,950 $66,270 $68,972 $71,778 $74,647 $77,633 $80,738
Terminal 52,717 55,352 69,726 91,577 95,619 99,799 103,774 107,925 112,242
Landside 14,177 18,332 21,457 28,681 29,904 31,172 32,415 33,712 35,060
Aux. Airports 2,356 4,945 5,376 7,084 7,367 7,662 7,968 8,287 8,619
Other 3,300 5,009 6,030 7,516 7,817 8,130 8,455 8,793 9,145
General Aviation 704 1,671 1,476 2,472 2,571 2,674 2,781 2,892 3,008
Support 1,249 2,477 2,431 3,100 3,224 3,353 3,487 3,626 3,771
Total Operating Expenses and Capital Outlays $109,828 $130,337 $161,446 $206,701 $215,475 $224,567 $233,526 $242,867 $252,582
Note: Amounts may not add because of rounding.
Source: Airport records (actual and budget); Landrum & Brown, Inc. (projected)
Compiled by: Landrum & Brown, Inc.
Exhibit D
NONAIRLINE REVENUES AND AIRFIELD AND TERMINAL OFFSETS SALT LAKE CITY DEPARTMENT OF AIRPORTS
(Dollars in Thousands for Fiscal Years Ending June 30)
Actual Projected
2022 2023 2024 2025 2026 2027 2028 2029 2030
Airfield offsets
Fuel farm $1,804 $1,852 $2,730 $2,730 $2,730 $2,730 $2,730 $2,730 $2,730
Cargo ramp use fee 241 294 347 447 488 531 577 626 678
Flight kitchen 2,209 2,664 2,930 3,083 3,244 3,412 3,552 3,696 3,844
State aviation fuel tax 2,891 3,099 3,161 3,283 3,409 3,539 3,636 3,735 3,832
Fuel oil royalties 769 765 781 807 835 863 888 914 939
Glycol recycling sales 505 451 500 518 535 553 569 586 602
Other Airfield Revenues (a)684 670 678 700 723 746 765 785 804
Subtotal Airfield offsets $9,102 $9,794 $11,127 $11,568 $11,963 $12,374 $12,717 $13,071 $13,429
Terminal offsets
Jet bridges $1,631 $1,732 $2,031 $2,504 $2,604 $2,709 $2,817 $2,930 $3,047
CRDC Revenue 2,092 2,151 2,326 2,396 2,467 2,541 2,618 2,618 2,618
IAB use fees 2,665 2,577 3,089 3,809 3,961 4,119 4,284 4,456 4,634
Shared tenant telephone fees 59 59 59 60 62 64 66 68 70
Leased site areas 1,711 2,027 2,129 2,129 2,129 2,129 2,129 2,129 2,129
EDS utilities and janitorial 166 38 38 39 40 42 43 44 45
Other Terminal Revenues (b)494 447 467 479 491 504 517 531 544
Subtotal Terminal offsets $8,818 $9,031 $10,138 $11,416 $11,755 $12,108 $12,474 $12,774 $13,087
Other Nonairline Revenues
Car rental - commissions (c)$27,578 $28,136 $29,366 $30,623 $31,919 $33,252 $34,626 $36,041 $37,498
Car rental - fixed rents (c)6,948 8,130 8,252 8,376 8,501 8,629 8,758 8,890 9,023
Auto parking 48,814 58,294 60,842 63,447 66,130 68,894 72,241 75,172 78,190
Ground transportation 7,215 8,221 8,577 8,940 9,315 9,700 10,097 10,506 10,926
General aviation hangars 1,065 1,032 1,084 1,116 1,149 1,184 1,219 1,256 1,294
Hardstand Passenger Boarding revenue 4,907 4,809 0 0 0 0 0 0 0
FBO hangars 21 37 39 40 41 43 44 45 47
Cargo buildings 1,505 1,605 1,670 1,720 1,772 1,825 1,879 1,936 1,994
Other buildings 3,735 3,950 3,986 4,106 4,229 4,356 4,486 4,621 4,759
Office space 1,778 2,025 2,032 2,093 2,156 2,220 2,287 2,356 2,426
Food service (c)11,916 14,157 15,062 15,937 16,769 17,734 18,558 19,309 20,082
Vending/Public telephone 158 62 178 188 197 208 216 225 234
News & gifts (c)7,764 9,117 9,134 9,665 10,170 10,755 11,255 11,715 12,188
Leased site areas 2,778 3,391 3,387 3,489 3,593 3,701 3,812 3,927 4,044
Advertising media fees (c)827 683 683 706 730 754 775 797 819
Other revenues (d)3,709 (6,643)3,128 3,192 3,242 3,293 3,345 3,398 3,452
Subtotal Other Nonairline Revenues $130,717 $137,008 $147,420 $153,637 $159,914 $166,548 $173,601 $180,193 $186,976
Total Nonairline Revenues and Airfield and Terminal offsets $148,637 $155,833 $168,685 $176,621 $183,632 $191,031 $198,791 $206,038 $213,492
Note: Amounts may not add because of rounding.
Source: Airport records (actual and budget); Landrum & Brown, Inc. (projected)
Compiled by: Landrum & Brown, Inc.
(a) Includes leased areas on airfield, K-9 grants, Utah Air National Guard, and RON (overnight) fees.
(b) Includes UTA revenues, LEO charges reimbursed by TSA, and K-9 grants.
(c) Included as Select Concessions for the Revenue Sharing test.
(d) Includes CRRSAA Act Grants used for concessionaire MAG relief.
Exhibit E
LANDING FEES SALT LAKE CITY DEPARTMENT OF AIRPORTS
(Dollars in Thousands for Fiscal Years Ending June 30)
Actual Projected
2022 2023 2024 2025 2026 2027 2028 2029 2030
Airfield Revenue Requirement
Operating Expenses and Capital Outlays $35,325 $42,551 $54,950 $66,270 $68,972 $71,778 $74,647 $77,633 $80,738
Net debt service 5,830 6,857 9,679 18,889 20,956 22,611 24,108 24,260 24,260
Rolling Coverage Amount 78 131 639 615 449 251 232 4 (22)
Amortization 9,973 10,157 11,287 15,725 16,187 19,084 19,623 19,445 18,648
Reserve Requirements (a)1,104 1,151 2,066 1,887 450 468 478 498 518
Less: Airfield offsets (9,102)(9,794)(11,127)(11,568)(11,963)(12,374)(12,717)(13,071)(13,429)
Less: Adjustments-to-Actual (73)(5,649)0 0 0 0 0 0 0
Total Airfield Revenue Requirement $43,136 $45,403 $67,495 $91,818 $95,051 $101,817 $106,370 $108,768 $110,712
Landed Weight (million-pound units)15,989 17,160 16,570 17,210 17,870 18,550 19,060 19,580 20,090
Landing Fee (per 1,000-pound unit)$2.70 $2.65 $4.07 $5.34 $5.32 $5.49 $5.58 $5.56 $5.51
Signatory Airline Landing Fee revenue $39,097 $41,667 $61,490 $83,543 $86,391 $92,456 $96,432 $98,457 $100,067
Non-signatory Airline Landing Fee revenue 4,039 3,736 6,005 8,275 8,660 9,361 9,938 10,312 10,644
Total Landing Fee revenue $43,136 $45,403 $67,495 $91,818 $95,051 $101,817 $106,370 $108,768 $110,712
Note: Amounts may not add because of rounding.
Source: Airport records (actual and budget); Landrum & Brown, Inc. (projected)
Compiled by: Landrum & Brown, Inc.
(a) Includes deposits to the Operation and Maintenance Reserve and the Renewal and Replacement subaccounts.
Exhibit F
TERMINAL RENTS SALT LAKE CITY DEPARTMENT OF AIRPORTS
(Dollars in Thousands for Fiscal Years Ending June 30)
Actual Projected
2022 2023 2024 2025 2026 2027 2028 2029 2030
Net Terminal Revenue Requirement
Operating Expenses and Capital Outlays $52,717 $55,352 $69,726 $91,577 $95,619 $99,799 $103,774 $107,925 $112,242
Net debt service 51,385 56,820 94,393 130,077 157,646 172,397 186,087 186,145 184,657
Rolling Coverage Amount 1,340 1,945 9,521 9,160 6,693 3,738 3,457 56 (330)
Reserve Requirements (a)1,648 1,453 2,396 3,642 674 697 662 692 719
Amortization 12,953 10,343 12,356 17,570 18,082 18,725 19,662 22,294 22,015
Less: Terminal offsets (8,818)(9,031)(10,138)(11,416)(11,755)(12,108)(12,474)(12,774)(13,087)
Less: Adjustments-to-Actual (1,428)(76)(119)0 0 0 0 0 0
Total Terminal Revenue Requirement $109,798 $116,807 $178,133 $240,610 $266,958 $283,248 $301,169 $304,337 $306,216
Total Net Terminal Revenue Requirement (b)$197,300 $218,905 $232,264 $246,959 $249,557 $251,097
Total rentable space (s.f.)897,869 895,831 1,009,921
Airline rented space (s.f.) (c)836,745 887,722 923,025 948,232 948,232 948,232
Average Terminal rental rate $122.29 $130.39 $176.38 $235.79 $246.59 $251.63 $260.44 $263.18 $264.81
Airline rented space (c)
Conditioned space (s.f.)351,814 349,776 432,619 498,912 531,870 560,763 579,560 579,560 579,560
Unconditioned space (s.f.)212,617 212,617 222,704 337,833 355,852 362,262 368,672 368,672 368,672
Total Airline rented space (s.f.)564,431 562,393 655,323 836,745 887,722 923,025 948,232 948,232 948,232
Airline Net Terminal Revenue Requirement $69,023 $73,330 $115,588 $197,300 $218,905 $232,264 $246,959 $249,557 $251,097
Weighted Airline rented space
Conditioned space (s.f.)351,814 349,776 432,619 498,912 531,870 560,763 579,560 579,560 579,560
Unconditioned space (s.f.)106,309 106,309 111,352 168,917 177,926 181,131 184,336 184,336 184,336
Total weighted Airline rented space (s.f.)458,123 456,085 543,971 667,829 709,796 741,894 763,896 763,896 763,896
Airline rented space
Conditioned space (s.f.)351,814 349,776 432,619 498,912 531,870 560,763 579,560 579,560 579,560
Unconditioned space (s.f.)212,617 212,617 222,704 337,833 355,852 362,262 368,672 368,672 368,672
Total Airline rented space (s.f.)564,431 562,393 655,323 836,745 887,722 923,025 948,232 948,232 948,232
Airline Terminal rental rate - conditioned space $150.66 $160.78 $212.49 $295.43 $308.41 $313.07 $323.29 $326.69 $328.71
Airline Terminal rental rate - unconditioned space $75.33 $80.39 $106.24 $147.72 $154.20 $156.53 $161.64 $163.34 $164.35
Airline Terminal Rents - conditioned space $53,006 $56,238 $91,927 $147,396 $164,032 $175,557 $187,365 $189,336 $190,505
Airline Terminal Rents - unconditioned space 16,017 17,092 23,661 49,904 54,873 56,706 59,594 60,221 60,592
Total Airline Terminal Rents (d) $69,023 $73,330 $115,588 $197,300 $218,905 $232,264 $246,959 $249,557 $251,097
Note: Amounts may not add because of rounding.
Source: Airport records (actual and budget); HOK (projected space); Landrum & Brown, Inc. (projected)
Compiled by: Landrum & Brown, Inc.
(a) Includes deposits to the Operation and Maintenance Reserve and the Renewal and Replacement subaccounts.
(b) Beginning in FY 2025, reflects an 82% airline cost recovery percentage in the Terminal.
(c) Airline space assumptions are based on HOK space drawings.
(d) Assumes that all Terminal Rents are reflective of Signatory Airlines.
Exhibit G
REVENUE SHARING CALCULATION SALT LAKE CITY DEPARTMENT OF AIRPORTS
(Dollars in Thousands for Fiscal Years Ending June 30)
Actual Projected
2022 2023 2024 2025 2026 2027 2028 2029 2030
Per 8.07.1 (b) Revenue sharing amount rebated to Signatory Airlines for a particular Fiscal Year shall not exceed the LEAST of:
1. Percent of Net Remaining Revenues in such Fiscal Year
Net Remaining Revenues $57,350 $47,053 $52,357 $74,874 $76,534 $80,809 $83,185 $89,134 $91,670
Percent required of Net Remaining Revenues (a)30%30%30%40%40%40%40%40%40%
Amount of Net Remaining Revenues [A]$17,205 $14,116 $15,707 $29,949 $30,614 $32,324 $33,274 $35,653 $36,668
2. Total Annual Adjusted Gross Revenues for Selected Concessions [B]$55,191 $49,699 $62,675 $65,495 $68,286 $71,332 $74,189 $76,976 $79,843
3. Calculated Revenue Sharing Amount
Enplanement Detail for Credit in Future Agreement
Signatory Enplaned Passengers 12,741 13,195 13,696 14,208 14,735 15,277 15,674 16,073 16,475
Growth in Enplaned Passengers from 2015 base Enplaned Passengers 28.3%32.9%37.9%
Growth in Enplaned Passengers from 2025 base Enplaned Passengers 0.0%3.7%7.5%10.3%13.1%16.0%
Enplaned Passengers over 10,000,000 2,741 3,195 3,696
Enplaned Passengers over 14,000,000 208 735 1,277 1,674 2,073 2,475
Rates:
For Enplaned Passengers of 10,000,000 or less:$1.00 $1.00 $1.00 $1.40 $1.40 $1.40 $1.40 $1.40 $1.40
Revenue sharing rate for Enplaned Passengers over 10,000,000 (a)1.28 1.33 1.38
Revenue sharing rate for Enplaned Passengers over 14,000,000 (b)1.40 1.45 1.51 1.54 1.58 1.62
Calculated Revenue Sharing Amount
First 10,000,000 Enplaned Passengers 10,000 10,000 10,000
Enplaned Passengers over 10,000,000 (a)3,516 4,245 5,098
First 14,000,000 Enplaned Passengers 19,600 19,600 19,600 19,600 19,600 19,600
Enplaned Passengers over 14,000,000 (b)291 1,067 1,923 2,585 3,283 4,019
Total calculated Revenue Sharing Amount [C]$13,516 $14,245 $15,098 $19,891 $20,667 $21,523 $22,185 $22,883 $23,619
Total Revenue Sharing Amount to be used [Minimum of A, B, or C]$13,516 $14,116 $15,098 $19,891 $20,667 $21,523 $22,185 $22,883 $23,619
Note: Amounts may not add because of rounding.
Source: Airport records (actual and budget); Landrum & Brown, Inc. (projected)
Compiled by: Landrum & Brown, Inc.
(a) Percentage of Net Remaining Revenues increases from 30% to 40% under the future airline agreement in FY 2025.
(b) Increased Revenue Sharing is only applied to those Enplaned Passengers over 10,000,000.
(c) Increased Revenue Sharing is only applied to those Enplaned Passengers over 14,000,000.
Exhibit H
SIGNATORY AIRLINE COST PER ENPLANED PASSENGER SALT LAKE CITY DEPARTMENT OF AIRPORTS
(Dollars in Thousands for Fiscal Years Ending June 30)
Actual Projected
2022 2023 2024 2025 2026 2027 2028 2029 2030
Signatory Airline Terminal Rents $69,023 $73,330 $115,588 $197,300 $218,905 $232,264 $246,959 $249,557 $251,097
Signatory Airline Landing Fee revenue 39,097 41,667 61,490 83,543 86,391 92,456 96,432 98,457 100,067
LESS: Revenue Sharing (13,516)(14,116)(15,098)(19,891)(20,667)(21,523)(22,185)(22,883)(23,619)
Net passenger Signatory Airline Revenue Requirement $94,603 $100,881 $161,981 $260,952 $284,630 $303,197 $321,206 $325,130 $327,546
Signatory Airline Enplaned Passengers (000s)12,741 13,195 13,696 14,208 14,735 15,277 15,674 16,073 16,475
Passenger Signatory Airline Cost per Enplaned Passenger $7.43 $7.65 $11.83 $18.37 $19.32 $19.85 $20.49 $20.23 $19.88
Note: Amounts may not add because of rounding.
Source: Airport records (actual and budget); Landrum & Brown, Inc. (projected)
Compiled by: Landrum & Brown, Inc.
Exhibit I
APPLICATION OF REVENUES SALT LAKE CITY DEPARTMENT OF AIRPORTS
(Dollars in Thousands for Fiscal Years Ending June 30)
Actual Projected
2022 2023 2024 2025 2026 2027 2028 2029 2030
Revenues
Terminal Rents $69,023 $73,330 $115,588 $197,300 $218,905 $232,264 $246,959 $249,557 $251,097
Landing Fee revenue 43,136 45,403 67,495 91,818 95,051 101,817 106,370 108,768 110,712
Nonairline revenue 148,637 155,833 168,685 176,621 183,632 191,031 198,791 206,038 213,492
Revenue Sharing Amount (13,516)(14,116)(15,098)(19,891)(20,667)(21,523)(22,185)(22,883)(23,619)
Interest income 2,463 2,000 6,835 7,958 8,677 8,973 9,235 9,458 9,645
Total Revenues $249,742 $262,450 $343,505 $453,806 $485,599 $512,562 $539,171 $550,937 $561,327
Application of Revenues (a)
1. Operation and Maintenance Subaccount $109,828 $130,337 $161,446 $206,701 $215,475 $224,567 $233,526 $242,867 $252,582
2. Debt Service Funds (b)63,304 69,989 112,982 154,347 184,572 201,450 217,063 217,316 215,828
3. Debt Service Reserve Funds 0 0 0 0 0 0 0 0 0
4. Subordinate Obligation Debt Service 2,100 0 788 0 0 0 0 0 0
5. Subordinate Obligation Debt Service Reserve Funds 0 0 0 0 0 0 0 0 0
6. O&M Reserve Requirement Subaccount 5,948 3,433 5,185 7,542 1,462 1,515 1,493 1,557 1,619
7. Renewal and Replacement Subaccount 0 0 0 0 0 0 0 0 0
8. Rolling Coverage Account 1,500 2,196 10,748 10,341 7,556 4,220 3,903 63 (372)
9. Surplus Fund 67,062 56,495 52,357 74,874 76,534 80,809 83,185 89,134 91,670
Total Application of Revenues $249,742 $262,450 $343,505 $453,806 $485,599 $512,562 $539,171 $550,937 $561,327
Note: Amounts may not add because of rounding.
Source: Airport records (actual and budget); Landrum & Brown, Inc. (projected)
Compiled by: Landrum & Brown, Inc.
(a) Reflects only incremental amounts required for each year.
(b) Net of PFC revenues applied to debt service and capitalized interest.
Exhibit J
NET REVENUES AND DEBT SERVICE COVERAGE SALT LAKE CITY DEPARTMENT OF AIRPORTS
(Dollars in Thousands for Fiscal Years Ending June 30)
Actual Projected
2022 2023 2024 2025 2026 2027 2028 2029 2030
Revenues $249,742 $262,450 $343,505 $453,806 $485,599 $512,562 $539,171 $550,937 $561,327
Operating Expenses and Capital Outlays 109,828 130,337 161,446 206,701 215,475 224,567 233,526 242,867 252,582
Net Revenues $139,914 $132,113 $182,059 $247,105 $270,124 $287,995 $305,644 $308,070 $308,745
Plus: Rolling Coverage Account 15,301 17,497 28,246 38,587 46,143 50,363 54,266 54,329 53,957
Net Revenues & Rolling Coverage Account $155,215 $149,610 $210,305 $285,692 $316,267 $338,357 $359,910 $362,399 $362,702
Debt service (a)$63,304 $69,989 $112,982 $154,347 $184,572 $201,450 $217,063 $217,316 $215,828
Debt service coverage 2.45 2.14 1.86 1.85 1.71 1.68 1.66 1.67 1.68
Note: Amounts may not add because of rounding.
Source: Airport records (actual and budget); Landrum & Brown, Inc. (projected)
Compiled by: Landrum & Brown, Inc.
(a) Net of PFC revenues applied to debt service and capitalized interest.
C-1
APPENDIX C
FORM OF MASTER INDENTURE
D-1
APPENDIX D
FORM OF AIRLINE USE AGREEMENT
KKR Draft 4/21/2023
E-1
APPENDIX E
BOOK-ENTRY ONLY SYSTEM
Book-Entry Only System
The information in this Appendix concerning DTC and DTC’s book -entry only system has been obtained
from sources the City and the Underwriters believe to be reliable, but neither the City nor the Underwriters take any
responsibility for the accuracy or completeness thereof.
DTC will act as securities depository for the Series 2023 Bonds. The Series 2023 Bonds will be issued as
fully registered securities registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as
may be requested by an authorized representative of DTC. One fully -registered Bond certificate will be issued for
each maturity of the Series 2023 Bonds of each Series or, if applicable, each Subseries of each in the aggregate
principal amount of such maturity, and will be deposited with DTC.
DTC, the world’s largest securities depository, is a limited-purpose trust company organized under the New
York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code,
and a “clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934.
DTC holds and provides asset servicing for over 3.5 million issues of U.S. and non -U.S. equity issues, corporate and
municipal debt issues, and money market instruments from over 100 countries that DTC participants (“Direct
Participants”) deposit with DTC. DTC also facilitates the post -trade settlement among Direct Participants of sales
and other securities transactions in deposited securities, through electronic computerized book-entry transfers and
pledges between Direct Participants’ accounts. This eliminates the need for physical movement of securities
certificates. Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust &
Clearing Corporation (“DTCC”). DTCC is the holding company for DTC, National Securities Clearing Corporation
and Fixed Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users
of its regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non -U.S.
securities brokers and dealers, ban ks, trust companies, and clearing corporations that clear through or maintain a
custodial relationship with a Direct Participant, either directly or indirectly (“Indirect Participants”). DTC has a
Standard & Poor’s rating of “AA+.” The DTC Rules applicab le to its Participants are on file with the Securities and
Exchange Commission. More information about DTC can be found at www.dtcc.com.
Purchases of Series 2023 Bonds under the DTC system must be made by or through Direct Participants,
which will receive a credit for the Series 2023 Bonds on DTC’s records. The ownership interest of each actual
purchaser of each Series 2021 Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect
Participants’ records. Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial
Owners are, however, expected to receive written confirmations providing details of the transaction, as well as periodic
statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into
the transaction. Transfers of ownership interests in Series 2023 Bonds are to be accomplished by entries made on the
books of Direct and Indirect Participants acting on behalf of Beneficial Owners. Benefic ial Owners will not receive
certificates representing their ownership interests in the Series 2023 Bonds, except in the event that use of the book-
entry system for the Series 2023 Bonds is discontinued.
To facilitate subsequent transfers, all Series 2023 Bonds deposited by Direct Participants with DTC are
registered in the name of DTC’s partnership nominee, Cede & Co, or such other name as may be requested by an
authorized representative of DTC. The deposit of Series 2023 Bonds with DTC and their registration in the name of
Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no knowledge
of the actual Beneficial Owners of the Series 2023 Bonds; DTC’s records reflect only the identity of the Direct
Participants to whose accounts such Series 2023 Bonds are credited, which may or may not be the Beneficial Owners.
The Direct and Indirect Participants will remain responsible for keeping account of their holdings on behalf of their
customers.
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Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by
arrangements among them, subject to any statutory or regulator y requirements as may be in effect from time to time.
Redemption notices shall be sent to DTC. If less than all of the Bonds of a Series within a maturity are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant in such maturity
to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the Series
2023 Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI Procedures. Under its usual
procedures, DTC mails an Omnibus Proxy to the City as soon as possible after the record date. The Omnibus Proxy
assigns Cede & Co.’s consenting or voting rights to those Direct Participants to whose accounts the Series 2023 Bonds
are credited on the record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments (including redemption proceeds) on the Series 2023 Bonds will be made to
Cede & Co., or such other nominee as may be requested by an authorized representativ e of DTC. DTC’s practice is
to credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information from the
Trustee or the City, on payable date in accordance with their respective holdings shown on DTC’s records. Paymen ts
by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case
with securities held for the accounts of customers in bearer form or registered in “street name,” and will be the
responsibility of such Participant and not of DTC, the Trustee or the City, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of principal and interest (including redemption proceeds)
to Cede & Co. (or such other nominee as may be requested by an authorized representative of DTC) is the
responsibility of the City or the Trustee, disbursement of such payments to Direct Participants will be the responsibility
of DTC, and disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect
Participants.
DTC may discontinue providing its services as securities depository with respect to the Series 2023 Bonds
at any time by giving reasonable notice to the City or the Trustee. Under such circumstan ces, in the event that a
successor securities depository is not obtained, certificates for the affected Series 2023 Bonds are required to be printed
and delivered.
The City may decide to discontinue use of the system of book -entry transfers through DTC (or a successor
securities depository). In that event, certificates for the affected Series 2023 Bonds will be printed and delivered.
THE TRUSTEE, ANY PAYING AGENT AND THE CITY WILL NOT HAVE ANY RESPONSIBILITY
OR OBLIGATION TO ANY PARTICIPANT, ANY PERSON CLAIMING A BENEFICIAL OWNERSHIP
INTEREST IN ANY SERIES 2023 BONDS UNDER OR THROUGH DTC OR ANY PARTICIPANT, OR ANY
OTHER PERSON THAT IS NOT SHOWN ON THE REGISTRATION BOOKS OF THE TRUSTEE AS BEING A
BONDOWNER, WITH RESPECT TO THE ACCURACY OF ANY RECORDS MAINTAINED BY DTC OR ANY
PARTICIPANT, THE PAYMENT BY DTC OR ANY PARTICIPANT OF ANY AMOUNT IN RESPECT OF
PRINCIPAL OF OR PREMIUM, IF ANY, OR INTEREST ON ANY SERIES 2021 BOND, ANY NOTICE THAT
IS REQUIRED TO BE GIVEN TO BONDOWNERS UNDER THE INDENTURE (EXCEPT IN CONNECTION
WITH CERTAIN NOTICES OF DEFAULT AND REDEMPTION), THE SELECTION BY DTC OR ANY
PARTICIPANT OF ANY PERSON TO RECEIVE PAYMENT IN THE EVENT OF A PARTIAL REDEMPTION
OF THE SERIES 2023 BONDS, OR ANY CONSENT GIVEN OR OTHER ACTION TAKEN BY DTC OR ITS
NOMINEE AS THE REGISTERED OWNER OF THE SERIES 2023 BONDS.
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APPENDIX F
FORM OF CONTINUING DISCLOSURE AGREEMENT
CONTINUING DISCLOSURE AGREEMENT
For the Purpose of Providing
Continuing Disclosure Information
Under Section (b)(5) of Rule 15c2-12
This Continuing Disclosure Agreement (this “Agreement”) is executed and delivered by Salt Lake City, Utah
(the “City”) in connection with the issuance of its $____________ Airport Revenue Bonds, Series 2023A (Non-AMT)
(the “Series 2023A Bonds”), and its $_____________ Airport Revenue Bonds, Series 2023B (AMT) (the “Series
2023B Bonds” and, collectively with the Series 2023A Bonds, the “Bonds”).
In consideration of the issuance of the Bonds by the City and the purchase of such Bonds by the beneficial
owners thereof, the City covenants and agrees as follows:
SECTION 1. PURPOSE OF THIS AGREEMENT. This Agreement is being executed and delivered by
the City for the benefit of the Bondholders and the Beneficial Owners (hereinafter defined) and in order to assist the
Participating Underwriters (hereinafter defined) in complying with subsection (b)(5) of the Rule (hereinafter define d).
SECTION 2. DEFINITONS. In addition to the definitions set forth in the Master Indenture (hereinafter
defined), which apply to any capitalized term used in this Agreement unless otherwise defined herein, the following
capitalized terms shall have the following meanings.
“Annual Report” shall mean any financial statements of the Department provided by the City pursuant to,
and as described in, Sections 3 and 4 of this Agreement.
“Beneficial Owner” shall mean any person which has or shares the power, directly or indirectly, to make
investment decisions concerning ownership of any Bonds (including any person holding Bonds through nominees,
depositories or other intermediaries).
“Department” shall mean the City’s Department of Airports.
“EMMA” shall mean the MSRB’s Electronic Municipal Market Access System, or such other system,
Internet Web site, or repository hereafter prescribed by the MSRB for the submission of electronic filings pursuant to
the Rule.
“GAAP” shall mean generally accepted accounting principles, as such principles are prescribed, in part, by
the Financial Accounting Standards Board and modified by the Governmental Accounting Standards Board and in
effect from time to time.
“Listed Events” shall mean any of the events listed in Section 5(a) of this Agreement.
“MSRB” shall mean the Municipal Securities Rulemaking Board.
“Master Indenture” means the Master Indenture as such term is defined in the Official Statement.
“1934 Act” shall mean the Securities Exchange Act of 1934, as amended.
“Obligated Person” shall mean the City (acting through the Department) and each airline or other entity using
the Airport under a lease or use agreement extending for more than one year from the date in question and including
bond debt service as part of the calculation of rates and charges, under which lease or use agreement such airline or
other entity has paid amounts equal to at least twenty percent (20%) of the Revenues of the Department for each of
the prior two (2) fiscal years of the Department.
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F-2
“Official Statement” shall mean the final Official Statement for the Bonds dated July __, 2023.
“Participating Underwriters” shall mean any of the original underwriters of the Bonds required to comply
with the Rule in connection with the primary offering of the Bonds.
“Rule” shall mean Rule 15c2-12 promulgated by the SEC pursuant to the 1934 Act, as the same may be
amended from time to time, together with all interpretive guidance or other official interpretations or explanations
thereof that are promulgated by the SEC.
“SEC” shall mean the Securities and Exchange Commission.
“SEC Reports” means reports and other information required to be filed pursuant to Sections 13(a), 14 or
15(d) of the 1934 Act.
“Securities Counsel” shall mean legal counsel expert in federal securities law, and may include, but is not
limited to Bond Counsel or Disclosure Counsel with respect to the Bonds.
“State” shall mean the State of Utah.
SECTION 3. PROVISIONS OF ANNUAL REPORTS.
(a) Each year, the City shall provide by January 2, commencing with January 2, 2024 for the Annual Report
for the Department’s fiscal year ended June 30, 2023, to the MSRB through EMMA an Annual Report for the
preceding fiscal year which is consistent with the requirements of Section 4 of this Ag reement. In each case, the
Annual Report may be submitted as a single document or as separate documents comprising a package, and may
include by specific reference other information as provided in Section 4 of this Agreement; provided, however, that if
the audited financial statements of the Department are not available by the deadline for filing the Annual Report, they
shall be provided when and if available, and unaudited financial statements in a format similar to the audited financial
statements then most recently prepared for the Department shall be included in the Annual Report.
(b) If the City is unable to provide to the MSRB, through EMMA, in an electronic format as prescribed by
the MSRB, an Annual Report by the date required in subsection (a), the City shall send a notice, in a timely manner,
to the MSRB, through EMMA, in substantially the form attached as Exhibit A.
(c) If the City’s fiscal year changes, the City shall send written notice of such change to the MSRB through
EMMA, in an electronic format as prescribed by the MSRB, in substantially the form attached as Exhibit B.
(d) Whenever any Annual Report or portion thereof is filed as described above, it shall be attached to a cover
sheet in substantially the form attached as Exhibit C, or such other form as may be prescribed by the SEC from time
to time.
SECTION 4. CONTENT OF ANNUAL REPORTS. The Annual Report shall contain or include by
reference the following:
(a) The audited financial statements of the Department for its fiscal year immediately preceding the due date
of the Annual Report, of substantially the same nature as that included in the Official Statement as Appendix A;
(b) Operating information for the fiscal year immediately preceding the due date of the Annual Report
otherwise presented in the Official Statement as follows:
(1) in the table under the heading “SALT LAKE CITY INTERNATIONAL AIRPORT O&D
AND CONNECTING ENPLANED PASSENGERS”;
(2) in the table under the heading “AIRLINES OPERATING AT SALT LAKE CITY
INTERNATIONAL AIRPORT”;
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(3) in the table under the heading “SALT LAKE CITY INTERNATIONAL AIRPORT AIRLINE
MARKET SHARE OF ENPLANED PASSENGERS”;
(4) in the table under the heading “SALT LAKE CI TY INTERNATIONAL AIRPORT
HISTORICAL AIRCRAFT OPERATIONS”;
(5) in the table under the heading “SALT LAKE CITY INTERNATIONAL AIRPORT
HISTORICAL LANDED WEIGHTS”;
(6) in the table under the heading “SALT LAKE CITY INTERNATIONAL AIRPORT
HISTORICAL AIR CARGO AND MAIL”;
(7) in the table under the heading “SALT LAKE CITY DEPARTMENT OF AIRPORTS TOTAL
ANNUAL REVENUES AND EXPENSES”;
(8) in the table under the heading “SALT LAKE CITY DEPARTMENT OF AIRPORTS
SUMMARY OF OPERATING REVENUES”;
(9) in the table under the heading “SALT LAKE CITY DEPARTMENT OF AIRPORTS
SOURCES OF AIRLINE REVENUES”; and
(10) in the table under the heading “SALT LAKE CITY DEPARTMENT OF AIRPORTS
SUMMARY OF OPERATING EXPENSES.”
If any information described in this paragraph (a) is published or provided by a third party and is no longer
publicly available, the City shall include a statement to that effect as part of the Annual Report for the year in which
such lack of availability arises; and
(b) An annual debt service coverage calculation table for the prior Fiscal Year in accordance with
Section 5.04(b) of the Master Indenture, substantially in the following format:
Annual Debt Service Coverage (FY_____)
Revenues $
Less Operating and Maintenance Expenses of the Airport
System
$
Net Revenues $
Plus Transfers $
Total Available for Debt Service: $
Annual Debt Service on Outstanding Bonds* $
Annual Debt Service Coverage ______x
*In accordance with Section 5.04 of the Master Indenture, Annual Debt Service on Outstanding Bonds for
this purpose shall not include principal and/or interest paid with Other Moneys Available for Debt Service or Passenger
Facility Charges.
The Department’s financial statements shall be audited and prepared in accordance with GAAP; provided,
however, that the City may from time to time, in accordance with GAAP and subject to applicable federal or State
legal requirements, modify the basis upon which its financial statements are prepared. Notice of any such modification
shall be provided to the MSRB, through EMMA, in an electronic format as prescribed by the MSRB.
Any or all of the items listed above may be included by specific reference to other documents that previously
have been provided to the MSRB, through EMMA. The City shall clearly identify each such other document so
included by reference.
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F-4
SECTION 5. REPORTING OF LISTED EVENTS.
(a) The City covenants to provide or cause to be provided to the MSRB through EMMA, in an electronic
format as prescribed by the MSRB, in a timely manner not in excess of ten (10) business days after the occurrence of
the event, notice of the occurrence of any of the following events listed in Section (b)(5)(i)(C) of the Rule with respect
to the Bonds:
(1) principal and interest payment delinquencies;
(2) non-payment related defaults, if material;
(3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficult ies;
(5) substitution of credit or liquidity providers, or their failure to perform;
(6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701 - TEB) or other material
notices or determinations with respect to the tax status of the Bonds, or other material events
affecting the tax status of the Bonds;
(7) modifications to rights of holders of the Bonds, if material;
(8) bond calls, if material, and tender offers;
(9) defeasances;
(10) release, substitution, or sale of property securing repayment of the Bonds, if material;
(11) rating changes;
(12) bankruptcy, insolvency, receivership or similar event of the City, which is considered to occur when
any of the following occur: the appointment of a receiver, fiscal agent or similar officer for the City
or the Department in a proceeding under the U.S. Bankruptcy Code or in any other proceeding under
state or federal law in which a court or governmental authority has assumed jurisdiction over
substantially all of the assets or business of the Department or the City, or if such jurisdiction has
been assumed by leaving the existing governing body and officials or officers in possession but
subject to the supervision and orders of a court or governmental authority, or the entry of an order
confirming a plan of reorganization, arrangement or liquidation by a court or governmental authority
having supervision or jurisdiction over substantially all of the assets or business of the Department
or the City;
(13) the consummation of a merger, consolidation, or acquisition involving the Department or the City
or the sale of all or substantially all of the assets of the Department or the City, other than in the
ordinary course of business, the entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other than pursuant to its terms,
if material;
(14) appointment of a successor or additional trustee or the change of name of a trustee, if material;
(15) incurrence of a financial obligation of the Department, if material, or agreement to covenants, events
of default, remedies, priority rights, or other similar terms of a financial obli gation of the
Department, any of which affect Bondholders, if material; or
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F-5
(16) default, event of acceleration, termination event, modification of terms, or other similar events under
the terms of a financial obligation of the Department, any of which reflect financial difficulties.
(b) The City covenants that its determination of materiality will be made in conformance with federal
securities laws.
(c) Upon the occurrence of a Listed Event, the City shall promptly cause a notice of such occurrence to be
filed with the MSRB, through EMMA, in an electronic format as prescribed by the M SRB, together with a cover sheet
in substantially the form attached as Exhibit C. In connection with providing a notice of the occurrence of a Listed
Event described in subsection (a)(9), the City shall include in the notice explicit disclosure as to whet her the Bonds
have been escrowed to maturity or escrowed to call, as well as appropriate disclosure of the timing of maturity or call.
(d) The City acknowledges that the “rating changes” referred to above in Section (5)(a)(11) of this
Agreement may include, without limitation, any change in any rating on the Bonds, including changes in the ratings
of bond insurers or banks that may be providing credit enhancement on a portion of the Bonds.
(e) The City acknowledges that it is not required to provide a notice of a Listed Event with respect to credit
enhancement when the credit enhancement is added after the primary offering of the Bonds, the City does not apply
for or participate in obtaining such credit enhancement, and such credit enhancement is not descr ibed in the Official
Statement.
SECTION 6. TERMINATION OF REPORTING OBLIGATION.
(a) The City’s obligations under this Agreement shall terminate upon the legal defeasance of the Bonds under
the Master Indenture or the prior redemption or payment in full of all of the Bonds. If the City’s obligation to pay the
principal of and interest on the Bonds is assumed in full by some other entity, such entity shall be responsible for
compliance with this Agreement in the same manner as if it were the City, an d the City shall have no further
responsibility hereunder.
(b) This Agreement, or any provision hereof, shall be null and void in the event that the City (i) receives an
opinion of Securities Counsel, addressed to the City, to the effect that those portions of the Rule, which require such
provisions of this Agreement, do not or no longer apply to the Bonds, whether because such portions of the Rule are
invalid, have been repealed, amended or modified, or are otherwise deemed to be inapplicable to the Bonds, as shall
be specified in such opinion, and (ii) delivers notice to such effect to the MSRB, through EMMA, in an electronic
format as prescribed by the MSRB.
SECTION 7. AMENDMENT; WAIVER.
(a) Notwithstanding any other provision of this Agreement, this Agreement may be amended, and any
provision of this Agreement may be waived, provided that the following conditions are satisfied:
(1) if the amendment or waiver relates to the provisions of Section 3(a), (b), (c), 4 or 5(a), it may only
be made in connection with a change in circumstances that arises from a change i n legal
requirements, a change in law or a change in the identity, nature or status of the City or the
Department or type of business conducted by the City or the Department;
(2) this Agreement, as so amended or taking into account such waiver, would, in the opinion of
Securities Counsel, have complied with the requirements of the Rule at the time of the original
issuance of the Bonds, after taking into account any amendments or interpretations of the Rule, as
well as any change in circumstances; and
(3) the amendment or waiver either (A) is approved by the Bondholders in the same manner as provided
in the Master Indenture for amendments to the Master Indenture with the consent of the
Bondholders, or (B) does not, in the opinion of Securities Counsel, ma terially impair the interests
of the Bondholders.
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F-6
(b) In the event of any amendment to, or waiver of a provision of, this Agreement, the City shall describe
such amendment or waiver in the next Annual Report and shall include an explanation of the reason for such
amendment or waiver. In particular, if the amendment results in a change to the annual financial information required
to be included in the Annual Report pursuant to Section 4 of this Agreement, the first Annual Report that contains the
amended operating data or financial information shall explain, in narrative form, the reasons for the amendment and
the impact of such change in the type of operating data or financial information being provided. Further, if the annual
financial information required to be provided in the Annual Report can no longer be generated because the operations
to which it related have been materially changed or discontinued, a statement to that effect shall be included in the
first Annual Report that does not include such information.
(c) If the amendment results in a change to the accounting principles to be followed in preparing financial
statements as set forth in Section 4 of this Agreement, the Annual Report for the year in which the change is made
shall include a comparison between the financial statements or information prepared on the basis of the new accounting
principles and those prepared on the basis of the former accounting principles. The comparison shall include a
qualitative discussion of such differences and the impact of the changes on the presentation of the financial
information. To the extent reasonably feasible, the comparison shall also be quantitative. A notice of the change in
accounting principles shall be sent by the City to the MSRB, through EMMA , in an electronic format as prescribed
by the MSRB.
SECTION 8. ADDITIONAL INFORMATION. Nothing in this Agreement shall be deemed to prevent
the City from disseminating any other information, using the means of dissemination set forth in this Agreement or
any other means of communication, or including any other information in any Annual Report or notice of occurrence
of a Listed Event, in addition to that which is required by this Agreement. If the City chooses to include any
information in any Annual Report or notice of occurrence of a Listed Event in addition to that which is specifically
required by this Agreement, the City shall have no obligation under this Agreement to update such information or
include it in any future Annual Report or notice of occurrence of a Listed Event.
SECTION 9. FAILURE TO COMPLY. In the event of a failure of the City to comply with any provision
of this Agreement, any Bondholder or Beneficial Owner may bring an action to obtain specific performance of the
obligations of the City under this Agreement, but no person or entity shall be entitled to recover monetary damages
hereunder under any circumstances, and any failure to comply with the obligations under this Agreement shall not
constitute a default with respect to the Bonds or under the Master Indenture.
SECTION 10. BENEFICICIARIES. This Agreement shall inure solely to the benefit of the City, the
Participating Underwriters, the Bondholders and the Beneficial Owners, and shall create no rights in any other person
or entity.
SECTION 11. TRANSMISSION OF INFORMATION AND NOTICES; DISSEMINATION AGENT.
Unless otherwise required by law or this Agreement, and, in the sole determination of the City, subject to technical
and economic feasibility, the City shall employ such methods of information and notice transmission as shall be
requested or recommended by the herein-designated recipients of such information and notices. Any filing with the
MSRB under this Agreement may be made by transmitting such filing to a dis semination agent.
SECTION 12. OTHER OBLIGATED PERSONS. Currently, Delta Air Lines, Inc. (“Delta”) is the only
Obligated Person other than the City, and Delta is required by the 1934 Act to file annual financial information in the
form of its SEC Reports with the SEC as described in the Official Statement. The City assumes no responsibility for
the accuracy or completeness of the SEC Reports or other annual financial information disseminated by Delta or any
future Obligated Person. The City shall report as part of its Annual Report any change in Obligated Persons and that
an Obligated Person’s SEC Reports constitute its annual financial information under this Agreement, if such is the
case. Unless no longer required by the Rule, the City shall use dilig ent efforts to cause each Obligated Person other
than the City (to the extent that such party is not required to file SEC Reports) to disseminate annual financial
information substantially equivalent to that contained in SEC Reports to the MSRB, through EMMA, in an electronic
format as prescribed by the MSRB, not later than nine months after the last day of the Obligated Person’s fiscal year.
The City has no obligation to file or disseminate any SEC Reports relating to another Obligated Person.
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F-7
SALT LAKE CITY, UTAH
By:
Name:
Title:
Dated: _______________ __, 2023.
[Signature Page to Continuing Disclosure Agreement]
F-A-1
EXHIBIT A TO CONTINUING DISCLOSURE AGREEMENT
NOTICE TO THE MSRB
OF FAILURE TO FILE ANNUAL REPORT
Name of Obligated Person: Salt Lake City, Utah
Name of Bond Issue: Airport Revenue Bonds, Series 2023A (AMT)
Airport Revenue Bonds, Series 2023B (Non-AMT)
Date of Bonds: August __ , 2023
NOTICE IS HEREBY GIVEN that the City has not provided an Annual Report with respect to the above -
named Bonds as required by Section 3 of its Continuing Disclosure Agreement with respect to the Bonds. The City
anticipates that the Annual Report will be filed by ______________________.
SALT LAKE CITY, UTAH
By:
Name:
Its:
Dated: _____________________________
F-B-1
EXHIBIT B TO CONTINUING DISCLOSURE AGREEMENT
NOTICE TO THE MSRB
OF CHANGE IN AUTHORITY’S FISCAL YEAR
Name of Obligated Person: Salt Lake City, Utah
Name of Bond Issue: Airport Revenue Bonds, Series 2023A (AMT)
Airport Revenue Bonds, Series 2023B (Non-AMT)
Date of Bonds: August __, 2023
NOTICE IS HEREBY GIVEN that the fiscal year of the [City/Department] changed. Previously, the
[City/Department]’s fiscal year ended on _________________. It now ends on _________________.
SALT LAKE CITY, UTAH
By:
Name:
Its:
Dated: _____________________________
F-C-1
EXHIBIT C TO CONTINUING DISCLOSURE AGREEMENT
MUNICIPAL SECONDARY MARKET DISCLOSURE
INFORMATION COVER SHEET
This cover sheet should be sent with all submissions made to the Municipal Securities Rulemaking Board, pursuant
to Securities and Exchange Commission Rule 15c2-12 or any analogous state statute.
***
Issuer’s and/or Other Obligated Person’s name: Salt Lake City, Utah
CUSIP Numbers (attach additional sheet if necessary):
Nine-Digit CUSIP Number(s) to which the information relates:
Information relates to all securities issued by the City having the following six-digit number(s):
***
Number of pages of attached information: _______________________________________________
Description of Material Events Notice/Financial Information (Check One):
1. ______ Principal and interest payment delinquencies
2. ______ Material non-payment related defaults
3. ______ Unscheduled draws on debt service reserves reflecting financial difficulties
4. ______ Unscheduled draws on credit enhancements reflecting financial difficulties
5. ______ Substitution of credit or liquidity providers or their failure to perform
6. ______ Adverse tax opinions, the issuance by the Internal Revenue Service of proposed
or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or
other material notices or determinations with respect to the tax status of the bonds, or other
material events affecting the tax status of the bonds
7. ______ Material modifications to rights of securities holders
8. ______ Bond calls, if material, or tender offers
9. ______ Defeasances
10. ______ Material release, substitution, or sale of property securing repayment of the bonds
11. ______ Rating changes
12. ______ Bankruptcy, insolvency, receivership or similar event of the Department or the
City
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F-C-2
13. ______ The consummation of a merger, consolidation, or acquisition involving the
Department or the City or the sale of all or substantially all of the assets of the Department
or the City, the entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other than pursuant to
its terms, if material
14. ______ Appointment of a successor or additional trustee or the material change of name
of a trustee
15. ______ Incurrence of a financial obligation of the Department, if material, or agreement
to covenants, events of default, remedies, priority rights, or other similar terms of a
financial obligation of the Department, any of which affect Bondholders, if material
16. ______ Default, event of acceleration, termination event, modification of terms, or other
similar events under the terms of a financial obligation of the Department, any of which
reflect financial difficulties
17. ______ Failure to provide annual financial information as required
18. ______ Other material event notice (specify)
19. ______ Financial Information: Please check all appropriate boxes:
ACFR (a) __ includes __ does not include Annual Financial Information
(b) __ audited __ unaudited
Fiscal Period Covered: ______________
I hereby represent that I am authorized by the City or its agent to distribute this information publicly:
Signature:
Name: Title:
Employer:
Address:
City, State, Zip Code:
Voice Telephone Number: ( )
G-1
APPENDIX G
FORM OF OPINION OF BOND COUNSEL
G-3
4854-1788-4237
EXHIBIT D
[ATTACH FORM OF BOND PURCHASE AGREEMENT]
DRAFT
4857-0284-5277, v. 3 Bond Purchase Agreement
BOND PURCHASE AGREEMENT
SALT LAKE CITY, UTAH
$[PAR A] AIRPORT REVENUE BONDS, SERIES 2023A (AMT)
July ___, 2023
Salt Lake City
451 South State Street
Salt Lake City, Utah 84111
The undersigned BofA Securities, Inc. (the “Representative”), acting on behalf of
itself and as the representative of J.P. Morgan Securities LLC, Barclays Capital Inc.,
Goldman Sachs & Co. LLC, Samuel A. Ramirez & Co., Inc., Siebert Williams Shank &
Co., LLC, and Wells Fargo Bank, National Association (collectively, the
“Underwriters”), offers to enter into this Bond Purchase Agreement (this “Bond
Purchase Agreement”) with Salt Lake City, Utah, a municipal corporation and political
subdivision of the State of Utah (the “Issuer”) which upon acceptance by the Issuer will
be binding upon the Issuer and upon the Underwriters. On the basis of the representations
and covenants contained herein and subject to the terms and conditions herein set forth, the
Underwriters hereby offer to purchase from the Issuer $[PAR A] of the Salt Lake City,
Utah Airport Revenue Bonds, Series 2023A (AMT) (the “Series 2023 Bonds”), to be
issued under and pursuant to a Master Trust Indenture dated as of February 1, 2017 (the
“Master Indenture”), and a Fourth Supplemental Trust Indenture dated as of August 1,
2023 (the “Fourth Supplemental Indenture,” and together with the Master Indenture, the
“Indenture”), each by and between the Issuer and Wilmington Trust, National
Association, as trustee (the “Trustee”). The issuance and sale of the Series 2023 Bonds
has been authorized pursuant to Resolution No. [___] of 2023 adopted by the City Council
of the Issuer on [May 16, 2023] (the “Bond Resolution”). Capitalized terms used but not
defined herein have the meanings assigned to such terms in the hereinafter defined Official
Statement.
The Series 2023 Bonds are being issued to (i) provide funds to finance portions of
the Terminal Redevelopment Program and the North Concourse Program (as described in
the Official Statement referenced below) and related costs of the Salt Lake City
International Airport (the “Airport”), including capitalized interest and any necessary
reserves and (ii) pay costs of issuance of the Series 2023 Bonds.
4857-0284-5277, v. 3 2 Bond Purchase Agreement
Section 1.Representations, Warranties and Agreements of the Issuer. By
acceptance hereof, the Issuer hereby represents and warrants to the Underwriters, and
agrees with the Underwriters that:
(a)The Issuer is authorized pursuant to the Local Government Bonding Act,
Title 11, Chapter 14, Utah Code Annotated 1953, as amended (the “Act”), to issue the
Series 2023 Bonds for the purposes set forth in the Indenture. The Issuer has full power
and authority to consummate all transactions contemplated by this Bond Purchase
Agreement, the Indenture, the Series 2023 Bonds, the Airline Use Agreement (the “AUA”
defined in the Official Statement), and the Continuing Disclosure Agreement executed by
the Issuer with respect to the Series 2023 Bonds (the “Continuing Disclosure Agreement”
and, collectively with the Indenture, the Airline Use Agreement, and this Bond Purchase
Agreement, the “Bond Documents”), and any and all other agreements relating thereto.
By all necessary official action of the Issuer taken prior to or concurrently with the
acceptance hereof, the Issuer has duly authorized all necessary action to be taken by it for
(i) the execution and delivery of the Fourth Supplemental Indenture and the issuance and
sale of the Series 2023 Bonds, (ii) the approval, execution and delivery of, and the
performance by the Issuer of its obligations contained in the Bond Documents and the
Series 2023 Bonds, (iii) the approval, distribution and use of the Preliminary Official
Statement dated July [___], 2023 (the “Preliminary Official Statement”), and the
approval, execution, distribution and use of the Official Statement dated July ___, 2023
(the “Official Statement”), for use by the Underwriters in connection with the public
offering of the Series 2023 Bonds, and (iv) the consummation by the Issuer of all other
transactions described in the Official Statement, the Bond Documents and any and all such
other agreements and documents as may be required to be executed, delivered or received
by the Issuer in order to carry out, give effect to, and consummate the transactions
described herein and in the Official Statement.
(b)This Bond Purchase Agreement has been duly authorized, executed and
delivered, and constitutes a legal, valid and binding obligation of the Issuer, enforceable
against the Issuer in accordance with its terms, subject to bankruptcy, insolvency,
reorganization, moratorium, and other similar laws and principles of equity relating to or
affecting the enforcement of creditors’ rights.
(c)The Master Indenture constitutes, and the Fourth Supplemental Indenture
and the Continuing Disclosure Agreement, when duly executed and delivered, will
constitute legal, valid and binding obligations of the Issuer, enforceable against the Issuer
in accordance with their respective terms, subject to bankruptcy, insolvency,
reorganization, moratorium, and other similar laws and principles of equity relating to or
affecting the enforcement of creditors’ rights.
(d)The Series 2023 Bonds, when issued, delivered and paid for, in accordance
with the Indenture and this Bond Purchase Agreement, will have been duly authorized,
executed, issued and delivered by the Issuer and will constitute the valid and binding
obligations of the Issuer, enforceable against the Issuer in accordance with their terms,
subject to bankruptcy, insolvency, reorganization, moratorium, and other similar laws and
principles of equity relating to or affecting the enforcement of creditors’ rights; upon the
4857-0284-5277, v. 3 3 Bond Purchase Agreement
issuance, authentication and delivery of the Series 2023 Bonds as aforesaid, the Indenture
will provide, for the benefit of the holders, from time to time, of the Series 2023 Bonds,
the legally valid and binding pledge of and lien it purports to create as set forth in the
Indenture.
(e)The Issuer is not in material breach of or material default under any
applicable constitutional provision, law or administrative regulation of the State or the
United States relating to the issuance of the Series 2023 Bonds or any applicable judgment
or decree or any material loan agreement, indenture, bond, note, resolution, agreement or
other instrument to which the Issuer is a party with respect to obligations incurred or issued
by or on behalf of the Issuer, or to which the Issuer or any of its property or assets is
otherwise subject (or to which any of the Issuer’s property or assets relating to obligations
issued on behalf of the Issuer is otherwise subject), and no event which would have a
material and adverse effect upon the financial condition of the Issuer has occurred and is
continuing which constitutes or with the passage of time or the giving of notice, or both,
would constitute a default or event of default by the Issuer under any of the foregoing.
(f)The execution and delivery of the Series 2023 Bonds and the Bond
Documents and the adoption of the Bond Resolution, and compliance with the provisions
on the Issuer’s part contained therein, will not conflict with or constitute a material breach
of or material default under any constitutional provision, administrative regulation,
judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other
instrument to which the Issuer is a party or to which the Issuer is, or to which any of its
property or assets are, otherwise subject; nor will any such execution, delivery, adoption
or compliance result in the creation or imposition of any lien, charge or other security
interest or encumbrance of any nature whatsoever upon any of the property or assets of the
Issuer to be pledged to secure the Series 2023 Bonds or under the terms of any such law,
regulation or instrument, except as provided by the Series 2023 Bonds and the Indenture.
(g)All authorizations, approvals, licenses, permits, consents and orders of any
governmental authority, legislative body, board, agency or commission having jurisdiction
of the matter which are required for the due authorization of, which would constitute a
condition precedent to, or the absence of which would materially adversely affect the
approval of the Bond Documents, the issuance of the Series 2023 Bonds or the due
performance by the Issuer of its obligations under the Bond Documents and the Series 2023
Bonds, have been duly obtained.
(h)The Series 2023 Bonds and the Indenture conform to the descriptions
thereof contained in the Preliminary Official Statement and the Official Statement under
the captions, “THE SERIES 2023 BONDS,” “SECURITY FOR THE SERIES 2023
BONDS,” and in APPENDIX C to the Preliminary Official Statement and the Official
Statement; the proceeds of the sale of the Series 2023 Bonds will be applied generally as
described in the Preliminary Official Statement and the Official Statement under the
captions, “ESTIMATED SOURCES AND USES OF FUNDS” and “THE NEW SLC.”
(i)Except to the extent disclosed in the Preliminary Official Statement and the
Official Statement, no action, suit, or proceeding, with merit, has been served on the Issuer
4857-0284-5277, v. 3 4 Bond Purchase Agreement
or is, to the best knowledge of the Issuer, threatened against the Issuer (i) affecting the
existence of the Issuer or the titles of its officers to their respective offices, (ii) affecting or
seeking to prohibit, restrain or enjoin the sale, issuance or delivery of the Series 2023
Bonds, (iii) in any way contesting or affecting the validity or enforceability of the Series
2023 Bonds or the Bond Documents or the design and construction of the New SLC or the
procurement of contracts with respect thereto, (iv) contesting the exclusion from gross
income of interest on the Series 2023 Bonds for federal income tax purposes, (v) contesting
in any way the completeness or accuracy of the Preliminary Official Statement or the
Official Statement or any supplement or amendment thereto, or (vi) contesting the powers
of the Issuer or any authority for the issuance of the Series 2023 Bonds, the adoption of the
Bond Resolution, or the execution and delivery of the Bond Documents, nor, to the best
knowledge of the Issuer, is there any basis therefor, wherein an unfavorable decision, ruling
or finding would materially adversely affect the validity or enforceability of the Series
2023 Bonds or the Bond Documents.
(j)The Preliminary Official Statement was in a form deemed final by the Issuer
for purposes of Rule 15c2-12 (the “Rule”) of the Securities and Exchange Commission
(the “SEC”), except for the omission of not more than the following: offering prices,
interest rates, selling compensation, aggregate principal amount, delivery dates, and terms
depending on such matters (collectively, the “Omitted Information”). The Official
Statement shall be in a form which the Issuer deems final and complete for purposes of
paragraph (b)(1) of the Rule. The Issuer shall provide or cause to be provided to the
Underwriters, no later than the seventh business day after the date of this Bond Purchase
Agreement, a final Official Statement in “designated electronic format” (as defined in
Municipal Securities Rulemaking Board Rule G-32) and in sufficient quantity to permit
the Underwriters to comply with the Rule and other applicable rules of the SEC and the
Municipal Securities Rulemaking Board (the “MSRB”). The Issuer hereby confirms that
it does not object to distribution of the Official Statement in electronic format and hereby
authorizes and directs the Underwriters to file the Official Statement with the MSRB’s
Electronic Municipal Market Access (EMMA) system.
(k)The Preliminary Official Statement, as of its date and as of the date of this
Bond Purchase Agreement, did not and does not contain any untrue statement of a material
fact or omit to state a material fact (except for the Omitted Information) required to be
stated therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, except no representation is made regarding
information concerning The Depository Trust Company, its book-entry only system,
CUSIP numbers, the Trustee, and the Underwriters.
(l)At the time of the Issuer’s acceptance hereof and (unless the Official
Statement is amended or supplemented pursuant to paragraph (m) of this Section) at all
times subsequent thereto during the period up to and including the Closing Date (defined
below), the Official Statement does not and will not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made,
not misleading, except no representation is made regarding information concerning The
4857-0284-5277, v. 3 5 Bond Purchase Agreement
Depository Trust Company, its book-entry only system, CUSIP numbers, the Trustee, and
the Underwriters.
(m)If at any time from the date hereof until the Closing Date, and for a period
of 25 days following the “end of the underwriting period” (defined below), any event
known to the Issuer relating to or affecting the Issuer or the Series 2023 Bonds or any
agreement related to the Series 2023 Bonds shall occur which might affect the accuracy or
completeness of any statement of a material fact contained in the Official Statement or any
document incorporated by reference therein, the Issuer shall promptly notify the
Representative in writing of the circumstances and details of such event. The Issuer will
cooperate with the Underwriters in the preparation of such amendments and supplements
to the Official Statement as may be advisable, in the reasonable judgment of the
Representative or the Issuer, to assure that the Official Statement as amended or
supplemented will at no time include any untrue statement of a material fact or omit to state
any material fact necessary in order to make the statements made in the Official Statement,
in light of the circumstances under which they are made, not misleading. The Issuer shall
not supplement or amend the Official Statement or cause the Official Statement to be
supplemented or amended without the prior written consent of the Representative, which
consent shall not be unreasonably withheld (provided, however, that the providing of any
such consent by the Representative shall not limit the Underwriters’ right to cancel their
obligations hereunder pursuant to Section 4(a)).
(n)If the Official Statement is supplemented or amended pursuant to paragraph
(m), at the time of each supplement or amendment thereto and (unless subsequently again
supplemented or amended pursuant to such paragraph) at all times subsequent thereto until
25 days from the “end of the underwriting period” (defined below), the Official Statement
as so supplemented or amended will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which made, not misleading.
For purposes of this Bond Purchase Agreement, the “end of the underwriting period” shall
mean the Closing Date, unless the Representative otherwise notifies the Issuer in writing
by the Closing Date that a later date is designated as the “end of the underwriting period.”
(o)The Issuer maintains disclosure controls and procedures to ensure that
material information relating to the Issuer generally, and in particular the Airport, is made
known to the financial officers of the Issuer that are primarily responsible for the review
and/or preparation of the Preliminary Official Statement and Official Statement and other
appropriate officers by others within the Issuer’s organization.
(p)The Issuer has the legal authority to apply and will apply, or cause to be
applied, the proceeds from the sale of the Series 2023 Bonds as provided in and subject to
all of the terms and provisions of the Indenture and will not take or omit to take any action
which action or omission will adversely affect the exclusion from gross income for federal
income tax purposes of the interest on the Series 2023 Bonds.
(q)The Issuer will furnish such information and execute such instruments and
take such action in cooperation with the Underwriters, at no expense to the Issuer, as the
4857-0284-5277, v. 3 6 Bond Purchase Agreement
Underwriters may reasonably request (A) to (y) qualify the Series 2023 Bonds for offer
and sale under the Blue Sky or other securities laws and regulations of such states and other
jurisdictions in the United States as the Representative may designate and (z) determine
the eligibility of the Series 2023 Bonds for investment under the laws of such states and
other jurisdictions and (B) to continue such qualifications in effect so long as required for
the distribution of the Series 2023 Bonds (provided, however, that the Issuer will not be
required to qualify as a foreign corporation or to file any general or special consents to
service of process under the laws of any jurisdiction) and will advise the Representative
immediately of receipt by the Issuer of any written notification with respect to the
suspension of the qualification of the Series 2023 Bonds for sale in any jurisdiction or the
initiation or threat of any proceeding for that purpose.
(r)The financial statements of, and other financial information regarding, the
Issuer’s Department of Airports and the Airport in the Preliminary Official Statement and
in the Official Statement fairly present the financial position and results of the Department
of Airports as of the dates and for the periods therein set forth. The financial statements of
the Department of Airports have been prepared in accordance with generally accepted
accounting principles consistently applied, and except as noted in the Preliminary Official
Statement and in the Official Statement, the other historical financial information set forth
in the Preliminary Official Statement and in the Official Statement has been presented on
a basis consistent with that of the Department of Airport’s audited financial statements
included in the Preliminary Official Statement and in the Official Statement.
(s)Prior to the Closing, the Issuer will not take any action within or under its
control that will cause any adverse change of a material nature in such financial position,
results of operations or condition, financial or otherwise, of the Department of Airports or
the Airport System.
(t)Other than the Issuer’s (1) Airport Revenue Bonds, Series 2017A (AMT)
and Series 2017B (Non-AMT); (2) Airport Revenue Bonds, Series 2018A (AMT), and
Series 2018B (Non-AMT); and (3) Airport Revenue Bonds, Series 2021A (AMT), and
Series 2021B (Non-AMT) (collectively, the “Outstanding Parity Bonds”), as of the date of
the Closing, the Issuer will not have outstanding any indebtedness which indebtedness is
secured by a lien on the Net Revenues on a parity with the lien of the Series 2023 Bonds
on the Net Revenues. As of the date of the Closing, the Issuer will not have outstanding
any indebtedness which indebtedness is secured by a lien on the Net Revenues superior to
the lien of the Series 2023 Bonds and the Outstanding Parity Bonds on the Net Revenues.
(u)The Issuer will not, prior to the Closing, offer or issue any bonds, notes or
other obligations for borrowed money or incur any material liabilities direct or contingent
in each case with respect to the Airport System, except in the ordinary course of business
and without prior notice to the Representative.
(v)Any certificate, signed by any official of the Issuer authorized to do so in
connection with the transactions described in this Bond Purchase Agreement, shall be
deemed a representation and warranty by the Issuer to the Underwriters as to the statements
made therein.
4857-0284-5277, v. 3 7 Bond Purchase Agreement
(w)The Issuer will enter into the Continuing Disclosure Agreement for the
benefit of owners of the Series 2023 Bonds, in substantially the form set forth as
APPENDIX F to the Official Statement. Except as described in the Preliminary Official
Statement and the Official Statement, the Issuer has not failed during the previous five
years to comply with any previous undertakings in a written continuing disclosure contract
or agreement under Rule 15c2-12.
(x)The Issuer has complied, and will at the Closing be in compliance, in all
respects, with the Act and other laws applicable to the Series 2023 Bonds and the Bond
Documents.
(y)The Issuer shall not amend, terminate, or rescind, or agree to any
amendment, termination, or rescission, of the Bond Resolution or the Bond Documents
without the prior written consent of the Representative prior to the Closing Date.
(z)The Issuer is a municipality and a public body corporate and politic duly
organized and existing under the laws of the State of Utah (the “State”) with full legal
right, power and authority to carry out and consummate all transactions contemplated by
the Bond Documents. The Issuer has lawful authority to own and operate the Airport
System facilities described in the Preliminary Official Statement and the Official Statement
and to fix and collect rents, rates, fees and other charges in connection with such facilities.
The Issuer has complied with all applicable provisions of law and has taken all actions
required to be taken by it in connection with the transactions contemplated by the Bond
Documents, except as may be required under the blue sky laws of any jurisdiction.
Section 2.Purchase, Sale and Delivery of the Series 2023 Bonds. On the basis
of the representations, warranties and covenants contained herein, and subject to the terms
and conditions herein set forth, on the Closing Date, the Underwriters agree to purchase
from the Issuer and the Issuer agrees to sell to the Underwriters the Series 2023 Bonds at a
purchase price equal to $__________ (being the par amount thereof plus a [net] reoffering
premium of $__________ and less an Underwriters’ discount of $__________.
The Series 2023 Bonds shall be issued under and secured, shall mature and bear
interest and be subject to redemption, as set forth in the Indenture and the Official
Statement. The Series 2023 Bonds shall be dated their date of original issuance and
delivery and shall have the principal maturities and bear interest at the rates per annum
shown on Exhibit A hereto.
The Underwriters intend to make a bona fide initial public offering of all the Series
2023 Bonds at prices not in excess of the initial offering prices set forth in the Official
Statement. The Underwriters reserve the right to lower such initial offering prices as they
deem necessary in connection with the marketing of the Series 2023 Bonds. Subject to
Section 3 hereof, the Underwriters may offer and sell the Series 2023 Bonds to certain
dealers (including dealers depositing the Series 2023 Bonds into investment trusts) and
others at prices lower than the initial public offering price or prices set forth in the Official
Statement. The Underwriters also reserve the right to: (i) over-allot or effect transactions
which stabilize or maintain the market price of the Series 2023 Bonds at levels above those
4857-0284-5277, v. 3 8 Bond Purchase Agreement
that might otherwise prevail in the open market and (ii) discontinue such stabilizing, if
commenced, at any time without prior notice.
The Representative shall send, by electronic form or equally prompt means, a copy
of the Official Statement to the MSRB.
Payment for the Series 2023 Bonds shall be made by wire transfer in immediately
available federal funds payable to the order of the Issuer, at the time of the closing for the
Series 2023 Bonds in Salt Lake City, Utah, at approximately 9:00 a.m., on [August ___,
2023], or such other place, time or date as shall be mutually agreed upon by the Issuer and
the Representative. The date of such delivery and payment is herein called the “Closing
Date,” and the hour and date of such delivery and payment is herein called the “Closing.”
Delivery of the Series 2023 Bonds shall be made through the facilities of The
Depository Trust Company’s (“DTC”) book-entry-only system. The Series 2023 Bonds
will be delivered as fully-registered bonds, bearing CUSIP numbers, with a single bond for
each Series and maturity of the Series 2023 Bonds, and registered in the name of Cede &
Co., as nominee of DTC, which will act as securities depository for the Series 2023 Bonds.
Unless otherwise agreed by the Representative, the Series 2023 Bonds will be delivered
under DTC’s FAST delivery system.
Section 3.Establishment of Issue Price.
(a)The Representative, on behalf of the Underwriters, agrees to assist the Issuer
in establishing the issue price of the Series 2023 Bonds and shall execute and deliver to the
Issuer at Closing an “issue price” or similar certificate, together with the supporting pricing
wires or equivalent communications, substantially in the form attached hereto as Exhibit
B, with such modifications as may be appropriate or necessary, in the reasonable judgment
of the Representative, the Issuer and Bond Counsel (as defined herein), to accurately
reflect, as applicable, the sales price or prices or the initial offering price or prices to the
public of the Series 2023 Bonds.
(b)Except for the Hold-the-Price Maturities, if any, described in subsection (c)
below and Exhibit A attached hereto, the Issuer will treat the first price at which 10% of
each maturity of the Series 2023 Bonds (the “10% test”) is sold to the public as the issue
price of that maturity (if different interest rates apply within a maturity, each separate
CUSIP number within that maturity will be subject to the 10% test). Exhibit A attached
hereto sets forth the maturities of the Series 2023 Bonds for which the 10% test has been
satisfied as of the date of this Bond Purchase Agreement (the “10% Test Maturities”) and
the prices at which the Underwriters have sold such 10% Test Maturities to the public.
(c)With respect to the maturities of the Series 2023 Bonds, if any, that are not
10% Test Maturities, as described in Exhibit A attached hereto (the “Hold-the-Price
Maturities”), the Representative confirms that the Underwriters have offered such
maturities of the Series 2023 Bonds to the public on or before the date of this Bond
Purchase Agreement at the offering price or prices (the “initial offering price”), or at the
corresponding yield or yields, set forth in Exhibit A attached hereto. The Issuer and the
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Representative, on behalf of the Underwriters, agree that the restrictions set forth in the
next sentence shall apply to the Hold-the-Price Maturities, which will allow the Issuer to
treat the initial offering price to the public of each such maturity as of the sale date as the
issue price of that maturity (the “hold-the-offering-price rule”). So long as the hold-the-
offering-price rule remains applicable to any maturity of the Hold-the-Price Maturities, the
Representative will neither offer nor sell unsold bonds of such maturity of the Hold-the-
Price Maturities to any person at a price that is higher than the initial offering price to the
public during the period starting on the sale date and ending on the earlier of the following:
(i) the close of the fifth (5th) business day after the sale date; or
(ii) the date on which the Representative has sold at least 10% of that
maturity of the Hold-the-Price Maturities to the public at a price that is no higher
than the initial offering price to the public.
The Representative shall advise the Issuer promptly after the close of the fifth (5th)
business day after the sale date whether it has sold 10% of that maturity of the Hold-the-
Price Maturities to the public at a price that is no higher than the initial offering price to
the public.
(d)The Representative confirms that:
(i) any agreement among underwriters, any selling group agreement
and each third-party distribution agreement (to which the Representative is a party)
relating to the initial sale of the Series 2023 Bonds to the public, together with the
related pricing wires, contains or will contain language obligating each underwriter,
each dealer who is a member of the selling group and each broker-dealer that is a
party to such third-party distribution agreement, as applicable:
(A) (1) to report the prices at which it sells to the public the
unsold Series 2023 Bonds of each maturity allocated to it, whether or not
the Closing Date has occurred, until either all Series 2023 Bonds of that
maturity allocated to it have been sold or it is notified by the Representative
that the 10% test has been satisfied as to the Series 2023 Bonds of that
maturity, provided that, the reporting obligation after the Closing Date may
be at reasonable periodic intervals or otherwise upon request of the
Representative, and (2) to comply with the hold-the-offering-price rule, if
applicable, if and for so long as directed by the Representative and as set
forth in the related pricing wires;
(B) to promptly notify the Representative of any sales of Series
2023 Bonds that, to its knowledge, are made to a purchaser who is a related
party to an underwriter participating in the initial sale of the Series 2023
Bonds to the public (each such term being used as defined below); and
(C) to acknowledge that, unless otherwise advised by the
underwriter, dealer or broker-dealer, the Representative shall assume that
4857-0284-5277, v. 3 10 Bond Purchase Agreement
each order submitted by the underwriter, dealer or broker-dealer is a sale to
the public;
(ii) any agreement among underwriters or selling group agreement
relating to the initial sale of the Series 2023 Bonds to the public, together with the
related pricing wires, contains or will contain language obligating each underwriter
or dealer that is a party to a third-party distribution agreement to be employed in
connection with the initial sale of the Series 2023 Bonds to the public to require
each broker-dealer that is a party to such third-party distribution agreement to (A)
report the prices at which it sells to the public the unsold Series 2023 Bonds of each
maturity allocated to it, whether or not the Closing Date has occurred, until either
all Series 2023 Bonds of that maturity allocated to it have been sold or it is notified
by the Representative or such underwriter or dealer that the 10% test has been
satisfied as to the Series 2023 Bonds of that maturity, provided that, the reporting
obligation after the Closing Date may be at reasonable periodic intervals or
otherwise upon request of the Representative or such underwriter or dealer, and (B)
comply with the hold-the-offering-price rule, if applicable, if and for so long as
directed by the Representative or the underwriter or the dealer and as set forth in
the related pricing wires.
(e)The Issuer acknowledges that, in making the representations set forth in this
subsection, the Representative will rely on (i) the agreement of each underwriter to comply
with the requirements for establishing the issue price of the Series 2023 Bonds, including,
but not limited to, its agreement to comply with the hold-the-offering-price rule, if
applicable to the Series 2023 Bonds, as set forth in an agreement among underwriters and
the related pricing wires, (ii) in the event a selling group has been created in connection
with the initial sale of the Series 2023 Bonds to the public, the agreement of each dealer
who is a member of the selling group to comply with the requirements for establishing
issue price of the Series 2023 Bonds, including, but not limited to, its agreement to comply
with the hold-the-offering-price rule, if applicable to the Series 2023 Bonds, as set forth in
a selling group agreement and the related pricing wires, and (iii) in the event that an
underwriter or dealer who is a member of the selling group is a party to a third-party
distribution agreement that was employed in connection with the initial sale of the Series
2023 Bonds to the public, the agreement of each broker-dealer that is a party to such
agreement to comply with the requirements for establishing the issue price of the Series
2023 Bonds, including, but not limited to, its agreement to comply with the hold-the-
offering-price rule, if applicable to the Series 2023 Bonds, as set forth in the third-party
distribution agreement and the related pricing wires. The Issuer further acknowledges that
each underwriter shall be solely liable for its failure to comply with its agreement to adhere
to the requirements for establishing issue price of the Series 2023 Bonds, including, but
not limited to, its agreement to comply with the hold-the-offering-price rule, if applicable
to the Series 2023 Bonds, and that no underwriter shall be liable for the failure of any other
underwriter, or of any dealer who is a member of a selling group, or of any broker-dealer
that is a party to a third-party distribution agreement, to comply with its corresponding
agreement to comply with the requirements for establishing the issue price of the Series
2023 Bonds, including, but not limited to, its agreement to comply with the hold-the-
offering-price rule, if applicable to the Series 2023 Bonds.
4857-0284-5277, v. 3 11 Bond Purchase Agreement
(f)The Underwriters acknowledge that sales of any Series 2023 Bonds to any
person that is a related party to an underwriter participating in the initial sale of the Series
2023 Bonds to the public (each such term being used as defined below) shall not constitute
sales to the public for purposes of this section. Further, for purposes of this section:
(i) “public” means any person other than an underwriter or a related
party,
(ii) “underwriter” means (A) any person that agrees pursuant to a
written contract with the Issuer (or with the lead underwriter to form an
underwriting syndicate) to participate in the initial sale of the Series 2023 Bonds to
the public and (B) any person that agrees pursuant to a written contract directly or
indirectly with a person described in clause (A) to participate in the initial sale of
the Series 2023 Bonds to the public (including a member of a selling group or a
party to a third-party distribution agreement participating in the initial sale of the
Series 2023 Bonds to the public),
(iii) a purchaser of any of the Series 2023 Bonds is a “related party” to
an underwriter if the underwriter and the purchaser are subject, directly or
indirectly, to (A) more than 50% common ownership of the voting power or the
total value of their stock, if both entities are corporations (including direct
ownership by one corporation of another), (B) more than 50% common ownership
of their capital interests or profits interests, if both entities are partnerships
(including direct ownership by one partnership of another), or (C) more than 50%
common ownership of the value of the outstanding stock of the corporation or the
capital interests or profit interests of the partnership, as applicable, if one entity is
a corporation and the other entity is a partnership (including direct ownership of
the applicable stock or interests by one entity of the other), and
(iv) “sale date” means the date of execution of this Bond Purchase
Agreement by all parties.
Section 4.Conditions to the Underwriters’ Obligations. The Underwriters’
obligations hereunder shall be subject to the due performance by the Issuer of its
obligations and agreements to be performed hereunder at or prior to the Closing and to the
accuracy of and compliance with the Issuer’s representations and warranties contained
herein, as of the date hereof and as of the Closing, and are also subject to the following
conditions:
(a)The Series 2023 Bonds, the Bond Resolution and the Indenture shall have
been duly authorized, executed and delivered in the form approved by the Representative.
(b)At Closing the Underwriters shall receive:
(1)(A) the unqualified approving opinion of Kutak Rock LLP,
as bond counsel to the Issuer (“Bond Counsel”), dated the Closing Date,
substantially in the form of APPENDIX G to the Official Statement and (B)
4857-0284-5277, v. 3 12 Bond Purchase Agreement
the supplemental opinion of Bond Counsel dated as of the Closing Date,
substantially in the form of Exhibit C hereto;
(2)the opinion of the City Attorney, dated the Closing Date,
substantially in the form of Exhibit D hereto;
(3)the opinion of Kaplan Kirsch & Rockwell LLP, as disclosure
counsel to the Issuer, dated the Closing Date, substantially in the form of
Exhibit E hereto;
(4)the opinion of Gilmore & Bell, P.C., as Underwriters’
counsel, dated the Closing Date, substantially in the form of Exhibit F
hereto;
(5)the opinion of counsel to the Trustee, dated the Closing Date,
to the effect that: (A) the Trustee is a national banking association, validly
existing under the laws of the United States of America and is authorized to
exercise trust powers; (B) in accordance with the laws of the State of Utah,
the Trustee is authorized to exercise trust powers in the State of Utah; (C)
the Trustee has all requisite corporate power, authority and legal right to
execute and deliver the Indenture, as trustee and to perform its obligations
under the Indenture and has taken all necessary corporate action to authorize
the execution and delivery of the Indenture, including the authentication and
delivery of the Series 2023 Bonds in its capacity as trustee under the
Indenture; (D) the Trustee has duly authorized, executed and delivered the
Indenture, as trustee and duly authenticated the Series 2023 Bonds in its
capacity as trustee under the Indenture; (E) assuming the due authorization,
execution and delivery thereof by the City, the Master Indenture and the
Fourth Supplemental Indenture are valid and binding agreements of the
Trustee, enforceable in accordance with their terms against the Trustee; and
(F) to such counsel’s knowledge, no authorization, approval, consent or
order of any governmental agency or regulatory authority having
jurisdiction over the Trustee that has not been obtained by the Trustee is
required for the authorization, execution and delivery by the Trustee, as
trustee of the Indenture or the authentication of the Series 2023 Bonds by
the Trustee, as trustee.
(6)a certificate, satisfactory to the Representative, of the Mayor
of the Issuer and the Executive Director of the Department of Airports,
and/or any other duly authorized officers of the Issuer satisfactory to the
Representative, dated as of the Closing Date, to the effect that: (i) the Issuer
has duly performed all of its obligations to be performed at or prior to the
Closing and that each of the representations, warranties, and agreements of
the Issuer herein are true and correct as of the Closing with the same effect
as if made on the Closing; (ii) the Issuer has authorized, by all necessary
action, the execution, delivery, receipt and due performance of the Bond
Documents and any and all such other agreements and documents as may
4857-0284-5277, v. 3 13 Bond Purchase Agreement
be required to be executed and delivered by the Issuer to carry out, give
effect to and consummate the transactions contemplated hereby and by the
Official Statement; (iii) to the knowledge of the Issuer no action, suit or
proceeding with merit has been served on the Issuer or is threatened: (1)
contesting or affecting the validity or authority for the issuance or delivery
of the Series 2023 Bonds or seeking to restrain or enjoin the issuance or
delivery of the Series 2023 Bonds; (2) contesting or affecting the validity or
powers of the Issuer or its right to use the proceeds of the Series 2023 Bonds
as contemplated or the design and construction of the New SLC or the
procurement of contracts with respect thereto; (3) contesting or affecting
the operation of the Airport System or the validity or enforceability of the
Indenture, this Bond Purchase Agreement, the Continuing Disclosure
Agreement or the Airline Use Agreement; (4) contesting, affecting or
seeking to restrain or enjoin the collection of Net Revenues pledged under
the Indenture which, if determined adversely to the Issuer, would have a
material impact on the Issuer’s collection of the income or revenues pledged
under the Indenture, or the pledge thereof; (5) contesting the completeness
or accuracy of the Official Statement; or (6) contesting the power of the
officials of the Issuer or the Department of Airports or their authority with
respect to the Indenture, the Series 2023 Bonds, the Official Statement, the
Continuing Disclosure Agreement or this Bond Purchase Agreement; (iv)
the financial statements and other financial information of the Airport
System contained in the Preliminary Official Statement and the Official
Statement present fairly the financial position of the Airport System as of
the dates indicated and the results of its operations for the periods specified
therein, and such financial statements have been prepared in conformity
with generally accepted accounting principles for governmental entities
applied in all material respects on a consistent basis (except as described in
the Preliminary Official Statement and the Official Statement) with respect
to such period; (v) since June 30, 2022, there has not been any material
adverse change in the properties or financial condition of the Airport
System, except as set forth in the Preliminary Official Statement and the
Official Statement; (vi) the execution, delivery, receipt and due
performance of the Bond Documents and the other agreements
contemplated hereby and by the Official Statement under the circumstances
contemplated hereby and thereby and the Issuer’s compliance with the
provisions thereof will not conflict with or constitute on its part a material
breach of or a material default under any court decree or order or any
material agreement, indenture, lease or other instrument or, to the Issuer’s
knowledge, any existing law or administrative regulation, decree or order
to which the Issuer is subject or by which the Issuer is or may be bound;
and (vii) as of their dates, the Preliminary Official Statement and the final
Official Statement did not, and as of the Closing Date, the Official
Statement does not, contain any untrue statement of a material fact or omit
to state any material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not misleading
4857-0284-5277, v. 3 14 Bond Purchase Agreement
(other than with respect to information relating to the DTC and the book-
entry system, CUSIP numbers, the Trustee and the Underwriters, as to
which no representation is made);
(7)Evidence satisfactory to the Representative that the Series
2023 Bonds have received ratings of [“___” (outlook: _____)] by S&P
Global Ratings (“S&P”), [“___” (outlook: _____)] by Moody’s Investors
Service, Inc. (“Moody’s”), and [“___” (outlook: _____)] by Kroll Bond
Rating Agency, Inc. (“Kroll”).
(8)executed or certified copies of the Bond Resolution, the
Indenture and the Continuing Disclosure Agreement;
(9)a letter from Eide Bailly LLP, Certified Public Accountants,
consenting to the inclusion in the Official Statement of the audited financial
statements of the Department of Airports for the fiscal year ended June 30,
2022;
(10)an executed copy of the Official Statement;
(11)evidence that the federal tax information forms 8038 and
8038-G have been prepared for filing;
(12)a tax compliance certificate relating to certain items
regarding the federal income tax implications of interest on the Series 2023
Bonds in form satisfactory to Bond Counsel, including accompanying
certificate of the Representative and the Municipal Advisor;
(13)a Certificate, dated the Closing Date from the Trustee, to the
effect that (A) the Trustee is duly organized and existing as a national
banking association organized and existing under the laws of the United
States of America, having the full power and authority to enter into, accept
the trusts created under, and perform its duties under the Indenture and to
authenticate the Series 2023 Bonds; (B) the execution and delivery by the
Trustee of the Indenture, and compliance with the terms of the Indenture,
will not conflict with, or result in a violation or breach of, or constitute a
default under, any loan agreement, indenture, bond, note, resolution or any
other agreement or instrument to which the Trustee is a party or by which it
is bound, or, to the best knowledge of the Trustee, any law or any rule,
regulation, order or decree of any court or governmental agency or body
having jurisdiction over the Trustee or any of its activities or properties
(except that no representation, warranty or agreement is made by the
Trustee with respect to any federal or state securities or blue sky laws or
regulations); (C) there is no action, suit, proceeding or investigation at law
or in equity before or by any court, public board or body, pending or, to the
best knowledge of the Trustee, threatened against or affecting the existence
of the Trustee or in any way contesting or affecting the validity or
4857-0284-5277, v. 3 15 Bond Purchase Agreement
enforceability of the Series 2023 Bonds or the Indenture, or contesting the
powers of the Trustee or its authority to enter into and perform its
obligations under any of the foregoing, or wherein an unfavorable decision,
ruling or finding would adversely affect the Trustee or the transactions
contemplated in connection with the issuance and sale of the Series 2023
Bonds, or which, in any way, would adversely affect the validity of the
Series 2023 Bonds, the Indenture or any agreement or instrument to which
the Trustee is a party and which is used or contemplated for use in the
Indenture, or the consummation of the transactions contemplated in
connection with the issuance and sale of the Series 2023 Bonds; (D) the
Series 2023 Bonds have been duly authenticated by the Trustee, as trustee
of the Series 2023 Bonds; and (E) subject to the provisions of the Indenture,
the Trustee will apply the proceeds of the Series 2023 Bonds to the purposes
specified in the Fourth Supplemental Indenture.
(14)a certificate, dated the Closing Date from Landrum &
Brown, Incorporated, the Airport Consultant to the Department of Airports,
to the effect that (A) consenting to the inclusion and publication of the
Report of the Airport Consultant in the Preliminary Official Statement and
Official Statement used in connection with the sale of the Series 2023 Bonds
and (B) consenting to the references to the Airport Consultant in the
Preliminary Official Statement and the Official Statement and stating that
nothing has come to the attention of the Airport Consultant in relation to the
preparation of the Report of the Airport Consultant which would cause them
to believe the Report of the Airport Consultant was, as of its date, or any
statements in the Preliminary Official Statement specifically attributed to
the Airport Consultant were, as of the date of the Preliminary Official
Statement, inaccurate in any material respect;
(15)a copy of the Letter of Representations to DTC executed by
the Issuer; and
(16)such additional legal opinions, certificates, proceedings,
instruments and other documents, as the Representative, Bond Counsel, the
City Attorney, Disclosure Counsel, or Underwriters’ Counsel may
reasonably request to evidence compliance by the Issuer with legal
requirements, the truth and accuracy, as of the Closing Date, of all
representations herein contained, the exemption of amounts received
(whether characterized as interest or discount) by holders of the Series 2023
Bonds from federal and state income taxation, and the due performance or
satisfaction by the Issuer at or prior to such date of all agreements then to
be performed and all conditions then to be satisfied as contemplated under
this Bond Purchase Agreement.
Section 5.The Underwriters’ Right to Cancel. The Underwriters shall have the
right to cancel their obligations hereunder to purchase the Series 2023 Bonds (such
cancellation shall not constitute a default hereunder) by notification from the
4857-0284-5277, v. 3 16 Bond Purchase Agreement
Representative to the Issuer if, after the execution hereof and prior to the Closing, any of
the following events shall occur in the reasonable judgment of the Representative:
(a)an event shall occur which makes untrue or incorrect in any material respect,
as of the time of such event, any statement or information contained in the Official
Statement or which is not reflected in the Official Statement but should be reflected therein
in order to make the statements contained therein in the light of the circumstances under
which they were made not misleading in any material respect and, in either such event, (a)
the Issuer refuses to permit the Official Statement to be supplemented to supply such
statement or information in a manner satisfactory to the Representative or (b) the effect of
the Official Statement as so supplemented is, in the judgment of the Representative, to
materially adversely affect the market price or marketability of the Series 2023 Bonds or
the ability of the Underwriters to enforce contracts for the sale, at the contemplated offering
prices (or yields), of the Series 2023 Bonds; or
(b)legislation shall be introduced in, enacted by, reported out of committee, or
recommended for passage by the State, either House of the Congress, or recommended to
the Congress or otherwise endorsed for passage (by press release, other form of notice or
otherwise) by the President of the United States, the Treasury Department of the United
States, the Internal Revenue Service or the Chairman or ranking minority member of the
Committee on Finance of the United States Senate or the Committee on Ways and Means
of the United States House of Representatives, or legislation is proposed for consideration
by either such committee by any member thereof or presented as an option for
consideration by either such committee by the staff or such committee or by the staff of the
Joint Committee on Taxation of the Congress of the United States, or a bill to amend the
Code (which, if enacted, would be effective as of a date prior to the Closing) shall be filed
in either House, or a decision by a court of competent jurisdiction shall be rendered, or a
regulation or filing shall be issued or proposed by or on behalf of the Department of the
Treasury or the Internal Revenue Service of the United States, or other agency of the federal
government, or a release or official statement shall be issued by the President, the
Department of the Treasury or the Internal Revenue Service of the United States, in any
such case with respect to or affecting (directly or indirectly) the federal or state taxation of
interest received on obligations of the general character of the Series 2023 Bonds which,
in the reasonable judgment of the Representative, materially adversely affects the market
price or marketability of the Series 2023 Bonds or the ability of the Underwriters to enforce
contracts for the sale, at the contemplated offering prices (or yields), of the Series 2023
Bonds; or
(c)a stop order, ruling, regulation, proposed regulation or statement by or on
behalf of the Securities and Exchange Commission or any other governmental agency
having jurisdiction of the subject matter shall be issued or made to the effect that the
issuance, offering, sale or distribution of obligations of the general character of the Series
2023 Bonds (including any related underlying obligations) is in violation or would be in
violation of any provisions of the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), or the Trust Indenture Act of
1939, as amended; or
4857-0284-5277, v. 3 17 Bond Purchase Agreement
(d)legislation introduced in or enacted (or resolution passed) by the Congress
or an order, decree, or injunction issued by any court of competent jurisdiction, or an order,
ruling, regulation (final, temporary, or proposed), press release or other form of notice
issued or made by or on behalf of the Securities and Exchange Commission, or any other
governmental agency having jurisdiction of the subject matter, to the effect that obligations
of the general character of the Series 2023 Bonds, including any or all underlying
arrangements, are not exempt from registration under or other requirements of the
Securities Act of 1933, as amended (the “Securities Act”), or that the Indenture is not
exempt from qualification under or other requirements of the Trust Indenture Act of 1939,
as amended, or that the issuance, offering, or sale of obligations of the general character of
the Series 2023 Bonds, including any or all underlying arrangements, as contemplated
hereby or by the Official Statement is or would be in violation of the federal securities law
as amended and then in effect;
(e)there shall have occurred (1) any outbreak or escalation of hostilities,
declaration by the United States of a national or international emergency or war; or (2) any
other calamity or crisis in the financial markets of the United States or elsewhere or
escalation thereof; or (3) a downgrade of the sovereign debt rating of the United States by
any major credit rating agency or payment default on United States Treasury obligations;
which, in the reasonable judgment of the Representative, materially adversely affects the
market price or marketability of the Series 2023 Bonds or the ability of the Underwriters
to enforce contracts for the sale, at the contemplated offering prices (or yields), of the Series
2023 Bonds; or
(f)there shall have occurred a general suspension of trading, minimum or
maximum prices for trading shall have been fixed and be in force or maximum ranges or
prices for securities shall have been required on the New York Stock Exchange or other
national stock exchange whether by virtue of a determination by that Exchange or by order
of the Securities and Exchange Commission or any other governmental agency having
jurisdiction or any national securities exchange shall have: (i) imposed additional material
restrictions not in force as of the date hereof with respect to trading in securities generally,
or to trading in the Series 2023 Bonds or similar obligations; or (ii) materially increased
restrictions now in force with respect to the extension of credit by or the charge to the net
capital requirements of underwriters or broker-dealers which, in the reasonable judgment
of the Representative, materially adversely affects the market price or marketability of the
Series 2023 Bonds or the ability of the Underwriters to enforce contracts for the sale, at the
contemplated offering prices (or yields), of the Series 2023 Bonds; or
(g)a general banking moratorium shall have been declared by federal or New
York or State of Utah state authorities or a major financial crisis or a material disruption in
commercial banking or securities settlement or clearances services shall have occurred
which, in the reasonable judgment of the Representative, materially adversely affects the
market price or the marketability for the Series 2023 Bonds or the ability of the
Underwriters to enforce contracts for the sale, at the contemplated offering prices (or
yields), of the Series 2023 Bonds; or
4857-0284-5277, v. 3 18 Bond Purchase Agreement
(h)a downgrading or suspension of any rating (without regard to credit
enhancement), or an official statement as to a possible downgrading (such as being placed
on “credit watch” or “negative outlook”), by Moody’s, S&P, Fitch, or Kroll of any debt
securities issued by the Issuer, including the Series 2023 Bonds.
Section 6.Payment of Expenses. The Issuer shall pay or cause to be paid from
the proceeds of the Series 2023 Bonds or other funds available to the Issuer the expenses
incident to the performance of its obligations hereunder, including but not limited to (a)
the cost of printing and mailing or delivering the Preliminary Official Statement and the
Official Statement and all other documents (other than as set forth in the next succeeding
paragraph) prepared in connection with the transactions contemplated hereby; (b) the fees
and disbursements of the Trustee and the paying agent in connection with the issuance of
the Series 2023 Bonds; (c) the fees and disbursements of Bond Counsel, Disclosure
Counsel, the City Attorney, the Municipal Advisor, the Airport Consultant, and any other
experts or consultants retained by the Issuer in connection with the transactions
contemplated hereby; and (d) the costs related to obtaining ratings on the Series 2023
Bonds. The Issuer shall pay for any expenses (included in the expense component of the
Underwriters’ discount) incurred by the Underwriters on behalf of Issuer employees and
representatives in connection with this Bond Purchase Agreement or the Series 2023
Bonds, including, but not limited to, meals, transportation, and lodging of those employees
and representatives.
The Underwriters shall pay (a) the cost of preparation and printing of any blue sky
and legal investment memoranda to be used by them; (b) all advertising expenses in
connection with the public offering of the Series 2023 Bonds; (c) the fees and expenses of
any counsel employed by the Underwriters; (d) the fees of Digital Assurance Certification,
L.L.C. or any other compliance review entity for a continuing disclosure undertaking
compliance review; and (e) all other expenses incurred by them in connection with their
public offering and distribution of the Series 2023 Bonds. The Issuer acknowledges that
some or all of the expenses to be paid by the Underwriters may be included as part of the
expense component of the underwriting discount or may be reimbursed to the Underwriters
as out-of-pocket expenses.
Section 7.Conditions of the Issuer’s Obligations. The Issuer’s obligations
hereunder are subject to the Underwriters’ performance of their obligations hereunder.
Section 8.No Advisory or Fiduciary Role. The Issuer acknowledges and
agrees that (i) the purchase and sale of the Series 2023 Bonds pursuant to this Bond
Purchase Agreement is an arm’s-length commercial transaction between the Issuer and the
Underwriters, (ii) in connection therewith and with the discussions, undertakings and
procedures leading up to the consummation of such transaction, the Underwriters are and
have been acting solely as principals and are not acting as the agents or fiduciaries of the
Issuer, (iii) the Underwriters have not assumed a financial advisory or other advisory or
fiduciary responsibility, including acting as a municipal advisor (within the meaning of
Section 15B of the Exchange Act), in favor of the Issuer with respect to the offering
contemplated hereby or the discussions, undertakings and procedures leading thereto
(irrespective of whether the Underwriters have provided other services or are currently
4857-0284-5277, v. 3 19 Bond Purchase Agreement
providing other services to the Issuer on other matters) and the Underwriters have no
obligation to the Issuer with respect to the offering contemplated hereby except the
obligations expressly set forth in this Bond Purchase Agreement, and (iv) the Issuer has
consulted its own legal, financial and other advisors to the extent it has deemed appropriate.
Section 9.Representations, Warranties and Agreements to Survive Delivery.
All of the Issuer’s representations, warranties and agreements shall remain operative and
in full force and effect, regardless of any investigations made by the Underwriters and shall
survive delivery of the Series 2023 Bonds to the Underwriters.
Section 10.Use of Official Statement. The Issuer hereby ratifies and confirms
the Underwriters’ authority to use the Preliminary Official Statement and authorizes the
use of, and will make available, the Official Statement for use by the Underwriters in
connection with the sale of the Series 2023 Bonds.
Section 11.Representation Regarding Ethical Standards for Issuer Officers and
Employees and Former Issuer Officers and Employees. The Representative represents that
the Underwriters have not: (i) provided an illegal gift or payoff to an Issuer officer or
employee or former Issuer officer or employee, or his or her relative or business entity; (ii)
retained any person to solicit or secure this contract upon an agreement or understanding
for a commission, percentage, or brokerage or contingent fee, other than bona fide
employees or bona fide commercial selling agencies for the purpose of securing business;
(iii) knowingly breached any of the ethical standards set forth in the Issuer’s conflict of
interest ordinance, Chapter 2.44, Salt Lake City Code; or (iv) knowingly influenced, and
hereby promises that the Underwriters will not knowingly influence, an Issuer officer or
employee or former Issuer officer or employee to breach any of the ethical standards set
forth in the Issuer’s conflict of interest ordinance, Chapter 2.44, Salt Lake City Code.
Section 12.Notice. Any notice or other communication to be given to the Issuer
under this Bond Purchase Agreement may be given by mailing or delivering the same in
writing to Salt Lake City Corporation, 451 South State Street, Salt Lake City, Utah 84111
Attention: Mayor, with a copy to the same address Attention: City Attorney and to Salt
Lake City Department of Airports, 3920 West Terminal Drive, Salt Lake City, Utah 84122,
Attention: Executive Director; and any notice or other communication to be given to the
Representative under this Bond Purchase Agreement may be given by delivering the same
in writing to BofA Securities, Inc., One Bryant Park, 12th Floor, New York, New York
10036, Attention: __________.
Section 13.Entire Agreement; Amendments. This Bond Purchase Agreement
constitutes the entire agreement between the parties hereto with respect to the matters
covered hereby, and supersedes all prior agreements and understandings between the
parties. This Bond Purchase Agreement shall only be amended, supplemented or modified
in a writing signed by both of the parties hereto.
Section 14.No Third-Party Beneficiary; Non-Assignability. This Bond
Purchase Agreement is made solely for the benefit of the signatories hereto and no other
4857-0284-5277, v. 3 20 Bond Purchase Agreement
person shall acquire or have any right hereunder or by virtue hereof. This Bond Purchase
Agreement may not be assigned by the Issuer or the Underwriters.
Section 15.Execution of Counterparts. This Bond Purchase Agreement may be
executed in several counterparts, each of which shall be regarded as an original and all of
which shall constitute one and the same document.
Each party hereto acknowledges and agrees that it may execute this Bond Purchase
Agreement, and any variation or amendment hereto, using Electronic Signatures (as
defined below). Such Electronic Signatures are intended to authenticate this writing and
to have the same force and effect as handwritten signatures.
“Electronic Signature” means any electronic sound, symbol, or process attached
to or logically associated with a record and executed and adopted by a party with the intent
to sign such record, including facsimile or email electronic signatures, pursuant to the
applicable law, including the Federal Electronic Signatures in Global and National
Commerce Act, the Utah Uniform Electronic Transaction Act, or any other similar state
laws based on the Uniform Electronic Transactions Act, as amended from time to time.
Section 16.Governing Law. The right and obligations of the parties to this
Agreement shall be governed by, construed and enforced in accordance with the laws of
the State of Utah.
[Remainder of page intentionally left blank; signature page follows]
S-1
SIGNATURE PAGE TO BOND PURCHASE AGREEMENT
Very truly yours,
BOFA SECURITIES, INC., acting on behalf
of itself and as the representative of J.P.
MORGAN SECURITIES LLC,
BARCLAYS CAPITAL INC., GOLDMAN
SACHS & CO. LLC, SAMUEL A.
RAMIREZ & CO., INC., SIEBERT
WILLIAMS SHANK & CO., LLC, and
WELLS FARGO BANK, NATIONAL
ASSOCIATION, as Underwriters
By:
Managing Director
Accepted as of the date first above written:
Time of acceptance:
SALT LAKE CITY, UTAH, a municipal
corporation and political subdivision of the
State of Utah
By:
Mayor
SALT LAKE CITY DEPARTMENT OF
AIRPORTS
By:
Chief Financial Officer
APPROVED AS TO FORM:
By:
Senior City Attorney
ATTEST:
(SEAL)
By:
City Recorder
4857-0284-5277, v. 3 A-1
EXHIBIT A
MATURITY SCHEDULE AND REDEMPTION PROVISIONS
FOR THE SERIES 2023 BONDS
SALT LAKE CITY, UTAH
$[PAR A] AIRPORT REVENUE BONDS, SERIES 2023A (AMT)
Due
(July 1)
Principal
Amount
Interest
Rate Yield Price
_________________
[* Term Bonds, subject to mandatory sinking fund redemption.]
[** 10% Test Maturities]
[c Priced to par call on __________].
4857-0284-5277, v. 3 A-2
Redemption Provisions:
Optional Redemption: The Series 2023 Bonds maturing on or before July 1, 20___, are
not subject to optional redemption prior to maturity. The Series 2023A Bonds maturing
on or after July 1, 20___, are redeemable at the option of the Issuer on or after July 1,
20___, in whole or in part at any time, from any moneys that may be provided for such
purpose, at a redemption price equal to 100% of the principal amount of the Series 2023
Bonds to be redeemed plus accrued interest to the date fixed for redemption, without
premium.
[Mandatory Sinking Fund Redemption:
The Series 2023 Bonds maturing on July 1, 20___, are subject to mandatory sinking
fund redemption in part, by lot, at a redemption price equal to 100% of the principal amount
thereof, plus accrued interest thereon to the date fixed for redemption, without premium,
on July 1 of the following years and in the following principal amounts:
July 1
of the Year Principal Amount
*Final Maturity Date
]
4857-0284-5277, v. 3 B-1
EXHIBIT B
ISSUE PRICE CERTIFICATE
$[PAR A]
Salt Lake City, Utah
Airport Revenue Bonds
Series 2023A (AMT)
The undersigned on behalf of BofA Securities, Inc., (the “Representative”), on its
own behalf and on behalf of, J.P. Morgan Securities LLC, Barclays Capital Inc., Goldman
Sachs & Co. LLC, Samuel A. Ramirez & Co., Inc., Siebert Williams Shank & Co., LLC,
and Wells Fargo Bank, National Association (collectively, the “Underwriting Group”),
hereby certifies as set forth below with respect to the sale and issuance of the above-
captioned obligations (the “Series 2023 Bonds”).
1. Sale of the 10% Test Maturities. As of the date of this certificate, for each
Maturity of the Series 2023 Bonds listed as a “10% Test Maturity” in Schedule A attached
hereto, the first price at which at least 10% of such Maturity was sold to the Public is the
respective price listed in Schedule A attached hereto.
[2. Initial Offering Price of the Hold-the-Price Maturities.
(a) The Underwriting Group offered the “Hold-the-Price Maturities”
(as listed in Schedule A attached hereto) to the Public for purchase at the respective
initial offering prices listed in Schedule A attached hereto (the “Initial Offering
Prices”) on or before the Sale Date.
(b) With respect to the Hold-the-Price Maturities, as agreed to in writing
by the Representative in the Bond Purchase Agreement, dated [July ___, 2023],
between the Representative, on behalf of itself and the other members of the
Underwriting Group, and the Issuer, the Representative has not offered or sold
unsold Series 2023 Bonds of any of the Hold-the-Price Maturities to any person at
a price that is higher than or a yield lower than the respective Initial Offering Prices
for such Maturities of the Series 2023 Bonds during the Holding Period.]
3. Pricing Wire or Equivalent Communication. A copy of the pricing wire
or equivalent communication for the Series 2023 Bonds is attached to this certificate as
Schedule B.
4. Establishment of Common Reserve Fund. The establishment of the
Common Reserve Fund (as defined in the hereinafter defined Tax Compliance Certificate),
at the level of funding described in Section ___ of the Tax Compliance Certificate, in the
best judgment of the undersigned, was reasonably required to market the Series 2023
Bonds at the prices and yields listed in Schedule A attached hereto and is reasonable and
customary in marketing obligations of the same general type as the Series 2023 Bonds.
4857-0284-5277, v. 3 B-2
5. Defined Terms.
(a)10% Test Maturities means those Maturities of the Series 2023
Bonds listed in Schedule A hereto as the “10% Test Maturities.”
(b)[Hold-the-Price Maturities means those Maturities of the Series
2022 Bonds listed in Schedule A hereto as the “Hold-the-Price Maturities.”]
(c)[Holding Period means, with respect to a Hold-the-Price Maturity,
the period starting on the Sale Date and ending on the earlier of (i) the close of the
fifth business day after the Sale Date, or (ii) the date on which at least 10% of such
Hold-the-Price Maturity was sold to the Public at prices that are no higher than or
yields that are no lower than the Initial Offering Price for such Hold-the-Price
Maturity.]
(d)Issuer means Salt Lake City, Utah.
(e)Maturity means Series 2023 Bonds with the same credit and
payment terms. Series 2023 Bonds with different maturity dates, or Series 2023
Bonds with the same maturity date but different stated interest rates, are treated as
separate maturities.
(f)Public means any person (including an individual, trust, estate,
partnership, association, company, or corporation) other than an Underwriter or a
related party to an Underwriter.
(g)Related Party. A purchaser of any Series 2023 Bonds is a “Related
Party” to an Underwriter if the Underwriter and the purchaser are subject, directly
or indirectly, to (i) more than 50% common ownership of the voting power or the
total value of their stock, if both entities are corporations (including direct
ownership by one corporation of another), (ii) more than 50% common ownership
of their capital interests or profits interests, if both entities are partnerships
(including direct ownership by one partnership of another), or (iii) more than 50%
common ownership of the value of the outstanding stock of the corporation or the
capital interests or profit interests of the partnership, as applicable, if one entity is
a corporation and the other entity is a partnership (including direct ownership of
the applicable stock or interests by one entity of the other).
(h)[Sale Date means the first day on which there is a binding contract
in writing for the sale of a Maturity of the Series 2023 Bonds. The Sale Date of the
Series 2023 Bonds is July ___, 2023.]
(i)Tax Compliance Certificate means the Tax Compliance Certificate,
dated [August ___, 2023], executed and delivered by the Issuer in connection with
the issuance of the Series 2023 Bonds.
(j)Underwriter means (i) any person that agrees pursuant to a written
contract with the Issuer (or with the lead underwriter to form an underwriting
4857-0284-5277, v. 3 B-3
syndicate) to participate in the initial sale of the Series 2023 Bonds to the Public,
and (ii) any person that agrees pursuant to a written contract directly or indirectly
with a person described in clause (i) of this paragraph to participate in the initial
sale of the Series 2023 Bonds to the Public (including a member of a selling group
or a party to a third-party distribution agreement participating in the initial sale of
the Series 2023 Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only.
Nothing in this certificate represents the Representative’s interpretation of any laws,
including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as
amended, and the Treasury Regulations thereunder. The undersigned understands that the
foregoing information will be relied upon by the Issuer with respect to certain of the
representations set forth in the Tax Certificate and with respect to compliance with the
federal income tax rules affecting the Series 2023 Bonds, and by Kutak Rock LLP, as Bond
Counsel to the Issuer, in connection with rendering its opinion that the interest on the Series
2023 Bonds is excluded from gross income for federal income tax purposes, the preparation
of the Internal Revenue Service Form 8038 and Form 8038-G, and other federal income
tax advice that it may give to the Issuer from time to time relating to the Series 2023 Bonds.
The certifications contained herein are not necessarily based on personal knowledge, but
may instead be based on either inquiry deemed adequate by the undersigned or institutional
knowledge (or both) regarding the matters set forth herein.
BOFA SECURITIES, INC., as
Representative of the Underwriting Group
By
Authorized Representative
Dated: [August ___, 2023].
4857-0284-5277, v. 3 B-4
SCHEDULE A
SALE PRICES
SALT LAKE CITY, UTAH
$[PAR A] AIRPORT REVENUE BONDS, SERIES 2023A (AMT)
Due
(July 1)
Principal
Amount
Interest
Rate Yield Price
_________________
[* Term Bonds, subject to mandatory sinking fund redemption.]
[** 10% Test Maturities]
[c Priced to par call on __________.]
4857-0284-5277, v. 3 B-5
SCHEDULE B
PRICING WIRE OR EQUIVALENT COMMUNICATION
(To be attached)
4857-0284-5277, v. 3 C-1
EXHIBIT C
(FORM OF SUPPLEMENTAL OPINION OF BOND COUNSEL)
August ___, 2023
Salt Lake City
Salt Lake City, Utah
BofA Securities, Inc.
As Representative of the Underwriters
New York, New York
$[PAR A]
Salt Lake City, Utah
Airport Revenue Bonds
Series 2023A
(AMT)
Ladies and Gentlemen:
We have acted as Bond Counsel to Salt Lake City, Utah (the “City”) in connection
with the issuance by the City of its $[PAR A] Salt Lake City, Utah Airport Revenue Bonds,
Series 2023A (AMT) (the “Series 2023 Bonds”). We are delivering this opinion letter
pursuant to Section 3(b)(1)(B) of the Bond Purchase Agreement, dated July ___, 2023 (the
“Bond Purchase Agreement”), between BofA Securities, Inc., as representative of the
underwriters of the Series 2023 Bonds, and the City. Capitalized terms used herein and
not otherwise defined shall have the meanings as set forth in the Bond Purchase Agreement.
In connection with the issuance of the Series 2023 Bonds and the opinions set forth
below, we have examined the Master Trust Indenture, dated as of February 1, 2017 (the
“Master Indenture”), by and between the City and Wilmington Trust, National Association,
as trustee (the “Trustee”); the Fourth Supplemental Trust Indenture, dated as of August 1,
2023 (the “Fourth Supplemental Indenture,” and together with the Master Indenture, the
“Indenture”), by and between the City and the Trustee; the Bond Purchase Agreement; the
Continuing Disclosure Agreement, dated August ___, 2023 (the “Continuing Disclosure
Agreement”), by the City; the Tax Compliance Certificate, dated August ___, 2023, with
respect to the Series 2023 Bonds (the “Tax Compliance Certificate”), by the City;
Resolution No. [___] of 2023, adopted by the City Council of the City on [May 16, 2023]
(the “Bond Resolution”); the Official Statement, dated July ___, 2023, relating to the Series
2023 Bonds (the “Official Statement”); and such other documents, instruments and
materials as we deemed necessary to render this opinion.
The opinions and conclusions expressed herein are based on an analysis of existing
laws, regulations, rulings and court decisions and cover certain matters not directly
addressed by such authorities. Such opinions or conclusions may be affected by actions
taken or omitted or events occurring after the date hereof. We have not undertaken to
4857-0284-5277, v. 3 C-2
determine, or to inform any person, whether any such actions are taken or omitted or events
do occur or any other matters come to our attention after the date hereof.
We have assumed the genuineness of all documents and signatures presented to us
(whether as originals or as copies) and the due and legal execution and delivery thereof by,
and validity against, any parties other than the City. We have assumed, without
undertaking to verify, the accuracy of the factual matters represented, warranted or certified
in the documents referred to in the second paragraph hereof. We have further assumed
compliance with all covenants and agreements contained in such documents.
In addition, we call attention to the fact that the rights and obligations under the
Series 2023 Bonds, the Bond Resolution, the Master Indenture, the Fourth Supplemental
Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement and the
Tax Compliance Certificate and their enforceability may be subject to bankruptcy,
insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other
laws relating to or affecting creditors’ rights, to the application of equitable principles, and
to the exercise of judicial discretion in appropriate cases. We express no opinion with
respect to any indemnification, contribution, penalty, choice of law, choice of forum or
waiver provisions contained in the foregoing documents. Except as expressly set forth in
numbered paragraph 3 below, we have not undertaken any responsibility for the accuracy,
completeness or fairness of the Official Statement or any other offering material relating
to the Series 2023 Bonds and express no opinion relating thereto.
From such examination we are of the opinion that:
(1) The Bond Purchase Agreement and the Continuing Disclosure
Agreement have been duly authorized, executed and delivered by the City and,
assuming the due authorization, execution and delivery by the other parties thereto,
as applicable, constitute binding and enforceable obligations of the City.
(2) The Series 2023 Bonds are exempt from registration under Section
3(a)(2) of the Securities Act of 1933, as amended, and the Master Indenture and the
Fourth Supplemental Indenture are exempt from qualification under the Trust
Indenture Act of 1939, as amended.
(3) The information in the Official Statement under the headings “THE
SERIES 2023 BONDS—General Provisions,” “THE SERIES 2023 BONDS—
Redemption of the Series 2023 Bonds,” “SECURITY FOR THE SERIES 2023
BONDS,” and “TAX MATTERS,” and under “APPENDIX G—FORM OF
OPINION OF BOND COUNSEL,” excluding any material that may be treated as
included under such captions by cross-reference, insofar as such statements
expressly summarize certain provisions of the Master Indenture and the Fourth
Supplemental Indenture and our opinions concerning certain federal tax matters and
certain State of Utah tax matters relating to the Series 2023 Bonds, are accurate in
all material respects.
4857-0284-5277, v. 3 C-3
This opinion letter is furnished by us as Bond Counsel to the City. No attorney-
client relationship has existed or exists between our firm and BofA Securities, Inc. or any
of the underwriters of the Series 2023 Bonds in connection with the Series 2023 Bonds or
by virtue of this opinion letter. This opinion letter is issued to and for the sole benefit of
the addressees hereof and is issued for the sole purpose of the transaction specifically
referred to herein. No person other than the addressees hereof may rely upon this opinion
letter without our express prior written consent. This opinion letter may not be utilized by
the addressees hereof for any other purpose whatsoever and may not be quoted by such
addressees without our express prior written consent. Our engagement with respect to the
Series 2023 Bonds has concluded with their issuance. We assume no obligation to review
or supplement this opinion letter subsequent to its date, whether by reason of a change in
the current laws, by legislative or regulatory action, by judicial decision or for any other
reason.
Very truly yours,
4857-0284-5277, v. 3 D-1
EXHIBIT D
(FORM OF CITY ATTORNEY OPINION)
August ___, 2023
Salt Lake City
Salt Lake City, Utah
BofA Securities, Inc.,
as Representative of the Underwriters
New York, New York
Re: $[PAR A] Salt Lake City, Utah, Airport Revenue Bonds, Series 2023A
(AMT)
Ladies and Gentlemen:
I am the City Attorney of Salt Lake City, Utah (the “City”), a municipal corporation
and political subdivision of the State of Utah, and have acted as counsel to the City in
connection with the issuance, sale and delivery of the City’s Airport Revenue Bonds, Series
2023A (AMT) (the “Series 2023 Bonds”) in the aggregate principal amount of $[PAR A].
For purposes of this opinion, capitalized terms used herein and not defined have the
meanings assigned to them in the Bond Purchase Agreement relating to the Series 2023
Bonds dated July ___, 2023 (the “Bond Purchase Agreement”) between the Underwriters
identified therein and the City and in the Official Statement dated July ___, 2023, relating
to the Series 2023 Bonds.
I, or others in this office under my supervision, have examined (i) the documents
referred to in the Bond Purchase Agreement, (ii) the AUA (as defined in the Official
Statement), and (iii) such other documents and records of the City and any other papers as
I or they have deemed relevant and necessary as the basis for the opinions hereinafter set
forth. In this connection, I or they have examined fully executed counterparts of such
documents, original or copies or copies of records of the City, certificates or letters of
officers of the City and certificates of certain public officials. In such examination, I or
they have assumed the genuineness and authenticity of all documents submitted to me or
us as originals and the conformity to original documents of documents submitted to me or
us as certified or photostatic copies. I or they have relied upon such certificates of public
officials and such certificates of officers of the City with respect to the accuracy of factual
matters contained therein as I or they have deemed relevant and necessary as a basis for
the opinions hereinafter set forth and I or they know of no reason why I or they should not
rely thereon. All references herein to agreements, instruments, documents, laws, statutes,
regulations, orders, writs, decrees and injunctions are as of the date hereof.
4857-0284-5277, v. 3 D-2
Based upon the foregoing, I am of the opinion that:
1. The City has been duly and validly created as a municipality and public
body corporate and politic existing under the laws of the State of Utah, with full power and
authority (a) to enter into, execute and perform its obligations under the Indenture, the
AUA, the Continuing Disclosure Agreement and the Bond Purchase Agreement; and (b)
to adopt and perform its obligations under the Bond Resolution and to authorize and issue,
sell and deliver the Series 2023 Bonds under the Bond Resolution and the Indenture.
2. The officials of the City and the Airport Board named in the Official
Statement have been duly elected or appointed and, to the best of my knowledge, are, as of
the date hereof, qualified to serve in their respective positions.
3. The Bond Resolution was duly adopted at a meeting of the City Council of
the City, which was called and held pursuant to law and with all public notice required by
law and at which a quorum was present and acting throughout and has not been modified,
amended, supplemented, superseded or repealed from the date of its adoption.
4. The Indenture, the Series 2023 Bonds, the Bond Purchase Agreement, the
AUA and the Continuing Disclosure Agreement have been duly authorized, executed and
delivered by the City and assuming due authorization, execution and delivery by the other
parties, if any, thereto, all such instruments constitute valid and binding limited obligations
of the City enforceable in accordance with their respective terms, except that the
enforceability thereof may be limited by bankruptcy, insolvency, moratorium, or other laws
affecting creditors’ rights generally or usual equity principles in the event equitable
remedies are sought.
5. The Indenture creates a valid first lien and charge against the Net Revenues,
moneys, securities and funds pledged therein for the benefit of the payment of the Series
2023 Bonds.
6. Other than the Series 2017 Bonds, the Series 2018 Bonds, and the Series
2021 Bonds, there are no other bonds or other obligations which are secured by a lien on
the Net Revenues, moneys, securities and funds pledged pursuant to the Indenture superior
to or on a parity with the lien of the Series 2023 Bonds on such Net Revenues, moneys,
securities and funds.
7. To the best of my knowledge, the adoption or execution and delivery, as
applicable, of the Bond Resolution, the Indenture, the Series 2023 Bonds, the Continuing
Disclosure Agreement, the AUA and the Bond Purchase Agreement by the City and
compliance with the provisions thereof will not conflict with or constitute a material breach
or material default under any applicable law, administrative regulation, court order or
consent decree of the State of Utah or, to my knowledge after due inquiry, of the United
States of America or of any department, division, agency or instrumentality of either or
any ordinance, agreement, note, resolution, indenture or other instrument to which the City
is a party or by which it or its property is bound.
4857-0284-5277, v. 3 D-3
8. Pursuant to the Governmental Immunity Act of Utah, Title 63G, Chapter 7,
Utah Code Annotated 1953, as amended, the City does not enjoy any defense on the
grounds of immunity (sovereign or otherwise) with respect to its obligations under the
Indenture.
9. To the best of my knowledge, after due inquiry, there is no amendment or
proposed amendment certified for placement on a statewide ballot to the Constitution of
the State of Utah that would materially adversely affect the Series 2023 Bonds or any
holder thereof in its capacity as such or the ability of the City to perform its obligations
under the Indenture.
10. To the best of my knowledge, all approvals, consents and orders, if any, of
any governmental entity, authority, board, agency or commission having jurisdiction which
would constitute conditions precedent to the performance by the City of its obligations
under the Bond Resolution, the Indenture, the Series 2023 Bonds, the Continuing
Disclosure Agreement, the AUA or the Bond Purchase Agreement have been obtained.
11. To the best of my knowledge, the use of the Airport System materially
complies with all applicable federal, state and local laws or ordinances (including rules and
regulations) relating to zoning, building, the environment and safety.
12. To my knowledge after due inquiry, except as disclosed in the Official
Statement, no action, suit, or proceeding with merit, has been served on the City or is, to
my knowledge after due inquiry, threatened: (i) in any way affecting the existence of the
City or contesting or affecting the validity or authority for the issuance of the Series 2023
Bonds or seeking to restrain or enjoin the issuance or delivery of the Series 2023 Bonds;
(ii) contesting or affecting the operation or improvement of the Airport System or the
validity of the Bond Resolution, the Indenture, the Series 2023 Bonds, the Bond Purchase
Agreement, the Continuing Disclosure Agreement or the AUA; (iii) contesting or affecting
or seeking to restrain or enjoin the collection of revenues or other moneys pledged or to be
pledged to pay the principal of and interest on the Series 2023 Bonds or otherwise under
the Indenture or the pledge thereof; (iv) contesting in any way the completeness or accuracy
of the Preliminary Official Statement or the Official Statement; or (v) contesting the title
or the power of the officials of the City or the authority of the City with respect to the Bond
Resolution, the Indenture, the Series 2023 Bonds, the Preliminary Official Statement, the
Official Statement, the Continuing Disclosure Agreement, the AUA, or the Bond Purchase
Agreement.
13. While not passing upon, and not assuming responsibility for, the accuracy,
completeness or fairness of the statements contained in the Preliminary Official Statement
and the Official Statement, no facts have come to my attention which lead me to believe
that the Preliminary Official Statement or the Official Statement (apart from the financial,
statistical data and forecasts contained therein, and information concerning The Depository
Trust Company, its book-entry only system, the Trustee, and the Underwriters, as to which
no opinion or belief is expressed) contained at their respective dates or contain on the date
hereof any untrue statement of a material fact or omitted to state at its date or omits at the
4857-0284-5277, v. 3 D-4
date hereof to state any material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading.
This opinion is furnished solely for the benefit of its addressees and may not be
relied upon by any other person.
Very truly yours,
Katherine N. Lewis
City Attorney
4857-0284-5277, v. 3 E-1
EXHIBIT E
(FORM OF DISCLOSURE COUNSEL OPINION)
August ___, 2023
Salt Lake City
Salt Lake City, Utah
BofA Securities, Inc.
as Representative of the Underwriters
New York, New York
Re: $[PAR A] Salt Lake City, Utah Airport Revenue Bonds, Series 2023A
(AMT)
Ladies and Gentlemen:
We have served as Disclosure Counsel to Salt Lake City, Utah (the “City”) in
connection with the issuance of the above-referenced bonds (the “Bonds”), which are today
being delivered BofA Securities, Inc. (the “Representative”), acting on behalf of and as the
representative of itself and J.P. Morgan Securities LLC, Barclays Capital Inc., Goldman
Sachs & Co. LLC, Samuel A. Ramirez & Co., Inc., Siebert Williams Shank & Co., LLC,
and Wells Fargo Bank, National Association (together with the Representative, the
“Underwriters”). All capitalized undefined terms used herein shall have the meaning set
forth in Bond Purchase Agreement dated July ___, 2023, between the City and the
Representative.
We have participated in the preparation and review of the Continuing Disclosure
Agreement, the Preliminary Official Statement and the Official Statement relating to the
Bonds. We have reviewed such proceedings, records, certificates, documents and
questions of law as we have considered necessary to enable us to render this opinion.
To the extent that the opinions expressed herein relate to or are dependent upon the
determination that the proceedings and actions relating to the authorization, issuance and
sale of the Bonds are lawful and valid under the laws of the State of Utah, and that the
Bonds and the interest thereon is excluded from the gross income of the owners of the
Bonds for federal income tax purposes, we understand that you are relying upon the
opinions delivered to you on the date hereof of Kutak Rock LLP, Bond Counsel, and the
City Attorney, and, with your permission, we have assumed the accuracy of such opinions
and we have made no independent determination thereof.
We have assumed, but not independently verified, the genuineness of the signatures
on all documents and certificates that we have examined, the authenticity of documents
submitted as originals, the conformity to originals of documents submitted as copies and
the legal capacity of all individuals or entities executing documents or certificates relied
on by us.
4857-0284-5277, v. 3 E-2
Because the primary purpose of our professional engagement was not to establish
factual matters and because of the wholly or partially nonlegal character of many of the
determinations involved in the preparation of the Preliminary Official Statement and the
Official Statement, we are not passing upon, and assume no responsibility for, the accuracy,
completeness or fairness of the statements contained in the Preliminary Official Statement
and the Official Statement. However, we can advise, in our capacity as Disclosure Counsel
for the City and on the basis of the information and documents we have reviewed, in the
course of our performance of the services referred to above and without having undertaken
to verify independently the accuracy, completeness or fairness thereof or of the contents of
the Preliminary Official Statement and the Official Statement, nothing has come to our
attention which leads us to believe that Preliminary Official Statement (other than with
respect to the omission of certain information permitted to be excluded from the
Preliminary Official Statement pursuant to Rule 15c2-12 prescribed under the Securities
Exchange Act of 1934, as amended and excluding those portions noted in the following
paragraph) as of its date or the Official Statement (excluding those portions noted in the
following paragraph) as of its date or as of this date, contained or contains any untrue
statement of a material fact or omitted or omits to state any material fact necessary in order
to make the statements made therein, in light of the circumstances under which they were
made, not misleading.
Reference in this opinion to the Preliminary Official Statement and the Official
Statement does not include (a) information relating to The Depository Trust Company and
its book-entry system, (b) any financial, technical, demographic or statistical data included
in the Preliminary Official Statement and the Official Statement, (c) any information in the
Preliminary Official Statement and the Official Statement relating to the exclusion from
gross income for federal income tax purposes and other tax treatment of the interest on the
Bonds and (d) Appendices A, B, E and G, as to all of which we express no opinion.
By accepting this letter, the Underwriters acknowledge and agree that delivery of
this letter to the Underwriters does not create an attorney-client relationship with our firm.
This opinion is furnished to you solely for your benefit, and is rendered solely in connection
with the transaction to which this opinion relates. This opinion may only be relied upon
by you in connection with this transaction and may not be relied upon by anyone else
without our prior written consent. This opinion is rendered as of the date hereof and we
expressly disclaim any obligation to update any matter in this opinion or to advise you of
any matters which may be brought to our attention subsequent to the date hereof.
Respectfully submitted,
4857-0284-5277, v. 3 F-1
EXHIBIT F
(FORM OF UNDERWRITERS’ COUNSEL OPINION)
August ___, 2023
BofA Securities, Inc.,
J.P. Morgan Securities LLC,
Barclays Capital Inc., Goldman Sachs & Co. LLC,
Samuel A. Ramirez & Co., Inc.,
Siebert Williams Shank & Co., LLC, and
Wells Fargo Bank, National Association
(collectively, the “Underwriters”)
Re: $[PAR A] Salt Lake City, Utah Airport Revenue Bonds, Series 2023A
(AMT)
We have acted as counsel to you, the Underwriters, in connection with your
purchase from Salt Lake City, Utah (the “City”), pursuant to that Bond Purchase
Agreement dated July ___, 2023 (the “Purchase Agreement”) between you and the City,
of $[PAR A] Salt Lake City, Utah Airport Revenue Bonds, Series 2023A (AMT) (the
“Bonds”), issued under a Master Trust Indenture dated as of February 1, 2017, as
heretofore supplemented (collectively, the “Master Indenture”), and a Fourth Supplemental
Trust Indenture dated as of August 1, 2023 (the “Fourth Supplemental Indenture,” and
together with the Master Indenture, the “Indenture”), each by and between the City and
Wilmington Trust, National Association, as trustee. Capitalized terms used herein and not
otherwise defined shall have the meanings given to such terms in the hereinafter defined
Official Statement.
In that connection, we have examined originals, or copies certified or otherwise
identified to our satisfaction, of the Purchase Agreement, the Indenture, the Preliminary
Official Statement dated July [___], 2023 (the “Preliminary Official Statement”) and the
Official Statement dated July ___, 2023 (the “Official Statement”) relating to the Bonds,
the Continuing Disclosure Agreement of the City relating to the Bonds dated August ___,
2023 (the “Continuing Disclosure Agreement”), and the other documents, certificates and
opinions delivered pursuant to Section 3(b) of the Purchase Agreement.
In arriving at the conclusions hereinafter expressed, we are not expressing any
opinion or view on, but are assuming and relying on, the validity, accuracy and sufficiency
of the documents and opinions referred to above (including the accuracy of all factual
matters represented and legal conclusions contained therein) and the due authorization,
issuance, delivery, validity and enforceability of the Bonds, the exclusion of interest on the
Bonds from gross income for federal income tax purposes and the exemption of interest on
the Bonds from State of Utah individual income tax. We have assumed that all documents,
certificates and opinions that we have reviewed are genuine.
4857-0284-5277, v. 3 F-2
Based upon and subject to the foregoing, and in reliance thereon, we are of the
opinion that,
1. The Bonds are not subject to the registration requirements of the Securities
Act of 1933, as amended, and the Indenture is exempt from qualification under the Trust
Indenture Act of 1939, as amended.
2. The provisions of the Continuing Disclosure Agreement comply with the
requirements of Rule 15c2-12 under the Securities Exchange Act of 1934, as amended.
While we have not verified and are not passing upon, and do not assume
responsibility for, the accuracy, completeness or fairness of the statements contained in the
Preliminary Official Statement and the Official Statement, we have participated in
conferences with representatives of and counsel for the City, the Salt Lake City Department
of Airports, Bond Counsel, Disclosure Counsel, the Municipal Advisor, the Airport
Consultant and your representatives at which the contents of the Preliminary Official
Statement and the Official Statement were discussed and revised. Based on our
participation in the above-mentioned conferences, and in reliance thereon, and on the
documents and other items herein mentioned and without independent verification, we
advise you that, during the course of our representation of you in connection with the
issuance of the Bonds, no facts came to the attention of the attorneys in our firm rendering
legal services in connection with such representation which caused them to believe that the
Preliminary Official Statement as of its date or the Official Statement contained as of its
date or as of the date hereof contains any untrue statement of a material fact or omitted or
omits (other than with respect to the omission of certain information permitted to be
excluded from the Preliminary Official Statement pursuant to Rule 15c2-12 prescribed
under the Securities Exchange Act of 1934, as amended) to state a material fact required
to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading in any material respect (except
that no opinion or belief is expressed as to (i) the expressions of opinion, the assumptions,
the projections, the financial statements, or other financial, numerical, economic,
demographic or statistical data contained in the Official Statement; (ii) the information with
respect to DTC and DTC’s book-entry system, and (iii) the information contained in
Appendix A, Appendix B, Appendix C, Appendix D, Appendix E, or Appendix G to the
Preliminary Official Statement and the Official Statement).
We are furnishing this letter to you solely for your benefit. We disclaim any
obligation to update this letter. This letter is delivered to you as the Underwriters of the
Bonds, is solely for the benefit of the Underwriters and is not to be used, circulated, quoted
or otherwise referred to or relied upon for any other purpose or by any other person. This
letter is not intended to be relied upon by holders of the Bonds or any other persons other
than the Underwriters.
Respectfully submitted,
4854-1788-4237
EXHIBIT E
[ATTACH FORM OF CONTINUING DISCLOSURE AGREEMENT]
DRAFT
1
4856-9292-0926.1
CONTINUING DISCLOSURE AGREEMENT
For the Purpose of Providing
Continuing Disclosure Information
Under Section (b)(5) of Rule 15c2-12
This Continuing Disclosure Agreement (this “Agreement”) is executed and delivered by Salt Lake
City, Utah (the “City”) in connection with the issuance of its $____________ Airport Revenue Bonds,
Series 2023A (Non-AMT) (the “Series 2023A Bonds”), and its $_____________ Airport Revenue Bonds,
Series 2023B (AMT) (the “Series 2023B Bonds” and, collectively with the Series 2023A Bonds, the
“Bonds”).
In consideration of the issuance of the Bonds by the City and the purchase of such Bonds by the
beneficial owners thereof, the City covenants and agrees as follows:
SECTION 1. PURPOSE OF THIS AGREEMENT. This Agreement is being executed and
delivered by the City for the benefit of the Bondholders and the Beneficial Owners (hereinafter defined)
and in order to assist the Participating Underwriters (hereinafter defined) in complying with subsection
(b)(5) of the Rule (hereinafter defined).
SECTION 2. DEFINITIONS. In addition to the definitions set forth in the Master Indenture
(hereinafter defined), which apply to any capitalized term used in this Agreement unless otherwise defined
herein, the following capitalized terms shall have the following meanings.
“Annual Report” shall mean any financial statements of the Department provided by the City
pursuant to, and as described in, Sections 3 and 4 of this Agreement.
“Beneficial Owner” shall mean any person which has or shares the power, directly or indirectly, to
make investment decisions concerning ownership of any Bonds (including any person holding Bonds
through nominees, depositories or other intermediaries).
“Department” shall mean the City’s Department of Airports.
“EMMA” shall mean the MSRB’s Electronic Municipal Market Access System, or such other
system, Internet Web site, or repository hereafter prescribed by the MSRB for the submission of electronic
filings pursuant to the Rule.
“GAAP” shall mean generally accepted accounting principles, as such principles are prescribed, in
part, by the Financial Accounting Standards Board and modified by the Governmental Accounting
Standards Board and in effect from time to time.
“Listed Events” shall mean any of the events listed in Section 5(a) of this Agreement.
“MSRB” shall mean the Municipal Securities Rulemaking Board.
“Master Indenture” means the Master Indenture as such term is defined in the Official Statement.
“1934 Act” shall mean the Securities Exchange Act of 1934, as amended.
“Obligated Person” shall mean the City (acting through the Department) and each airline or other
entity using the Airport under a lease or use agreement extending for more than one year from the date in
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question and including bond debt service as part of the calculation of rates and charges, under which lease
or use agreement such airline or other entity has paid amounts equal to at least twenty percent (20%) of the
Revenues of the Department for each of the prior two (2) fiscal years of the Department.
“Official Statement” shall mean the final Official Statement for the Bonds dated July __, 2023.
“Participating Underwriters” shall mean any of the original underwriters of the Bonds required to
comply with the Rule in connection with the primary offering of the Bonds.
“Rule” shall mean Rule 15c2-12 promulgated by the SEC pursuant to the 1934 Act, as the same
may be amended from time to time, together with all interpretive guidance or other official interpretations
or explanations thereof that are promulgated by the SEC.
“SEC” shall mean the Securities and Exchange Commission.
“SEC Reports” means reports and other information required to be filed pursuant to Sections 13(a),
14 or 15(d) of the 1934 Act.
“Securities Counsel” shall mean legal counsel expert in federal securities law, and may include,
but is not limited to Bond Counsel or Disclosure Counsel with respect to the Bonds.
“State” shall mean the State of Utah.
SECTION 3. PROVISIONS OF ANNUAL REPORTS.
(a) Each year, the City shall provide by January 2, commencing with January 2, 2024 for the
Annual Report for the Department’s fiscal year ended June 30, 2023, to the MSRB through EMMA an
Annual Report for the preceding fiscal year which is consistent with the requirements of Section 4 of this
Agreement. In each case, the Annual Report may be submitted as a single document or as separate
documents comprising a package, and may include by specific reference other information as provided in
Section 4 of this Agreement; provided, however, that if the audited financial statements of the Department
are not available by the deadline for filing the Annual Report, they shall be provided when and if available,
and unaudited financial statements in a format similar to the audited financial statements then most recently
prepared for the Department shall be included in the Annual Report.
(b) If the City is unable to provide to the MSRB, through EMMA, in an electronic format as
prescribed by the MSRB, an Annual Report by the date required in subsection (a), the City shall send a
notice, in a timely manner, to the MSRB, through EMMA, in substantially the form attached as Exhibit A.
(c) If the City’s fiscal year changes, the City shall send written notice of such change to the MSRB
through EMMA, in an electronic format as prescribed by the MSRB, in substantially the form attached as
Exhibit B.
(d) Whenever any Annual Report or portion thereof is filed as described above, it shall be attached
to a cover sheet in substantially the form attached as Exhibit C, or such other form as may be prescribed by
the SEC from time to time.
SECTION 4. CONTENT OF ANNUAL REPORTS. The Annual Report shall contain or
include by reference the following:
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(a) The audited financial statements of the Department for its fiscal year immediately preceding
the due date of the Annual Report, of substantially the same nature as that included in the Official Statement
as Appendix A;
(b) Operating information for the fiscal year immediately preceding the due date of the Annual
Report otherwise presented in the Official Statement as follows:
(1) in the table under the heading “SALT LAKE CITY INTERNATIONAL AIRPORT O&D
AND CONNECTING ENPLANED PASSENGERS”;
(2) in the table under the heading “AIRLINES OPERATING AT SALT LAKE CITY
INTERNATIONAL AIRPORT”;
(3) in the table under the heading “SALT LAKE CITY INTERNATIONAL AIRPORT
AIRLINE MARKET SHARE OF ENPLANED PASSENGERS”;
(4) in the table under the heading “SALT LAKE CITY INTERNATIONAL AIRPORT
HISTORICAL AIRCRAFT OPERATIONS”;
(5) in the table under the heading “SALT LAKE CITY INTERNATIONAL AIRPORT
HISTORICAL LANDED WEIGHTS”;
(6) in the table under the heading “SALT LAKE CITY INTERNATIONAL AIRPORT
HISTORICAL AIR CARGO AND MAIL”;
(7) in the table under the heading “SALT LAKE CITY DEPARTMENT OF AIRPORTS
TOTAL ANNUAL REVENUES AND EXPENSES”;
(8) in the table under the heading “SALT LAKE CITY DEPARTMENT OF AIRPORTS
SUMMARY OF OPERATING REVENUES”;
(9) in the table under the heading “SALT LAKE CITY DEPARTMENT OF AIRPORTS
SOURCES OF AIRLINE REVENUES”; and
(10) in the table under the heading “SALT LAKE CITY DEPARTMENT OF AIRPORTS
SUMMARY OF OPERATING EXPENSES.”
If any information described in this paragraph (a) is published or provided by a third party
and is no longer publicly available, the City shall include a statement to that effect as part of the
Annual Report for the year in which such lack of availability arises; and
(a)An annual debt service coverage calculation table for the prior Fiscal Year in accordance
with Section 5.04(b) of the Master Indenture, substantially in the following format:
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Annual Debt Service Coverage (FY_____)
Revenues $
Less Operating and Maintenance Expenses of the Airport System $
Net Revenues $
Plus Transfers $
Total Available for Debt Service: $
Annual Debt Service on Outstanding Bonds* $
Annual Debt Service Coverage ______x
*In accordance with Section 5.04 of the Master Indenture, Annual Debt Service on Outstanding Bonds for
this purpose shall not include principal and/or interest paid with Other Moneys Available for Debt Service
or Passenger Facility Charges.
The Department’s financial statements shall be audited and prepared in accordance with GAAP;
provided, however, that the City may from time to time, in accordance with GAAP and subject to applicable
federal or State legal requirements, modify the basis upon which its financial statements are prepared.
Notice of any such modification shall be provided to the MSRB, through EMMA, in an electronic format
as prescribed by the MSRB.
Any or all of the items listed above may be included by specific reference to other documents that
previously have been provided to the MSRB, through EMMA. The City shall clearly identify each such
other document so included by reference.
SECTION 5. REPORTING OF LISTED EVENTS.
(a) The City covenants to provide or cause to be provided to the MSRB through EMMA, in an
electronic format as prescribed by the MSRB, in a timely manner not in excess of ten (10) business days
after the occurrence of the event, notice of the occurrence of any of the following events listed in Section
(b)(5)(i)(C) of the Rule with respect to the Bonds:
(1) principal and interest payment delinquencies;
(2) non-payment related defaults, if material;
(3) unscheduled draws on debt service reserves reflecting financial difficulties;
(4) unscheduled draws on credit enhancements reflecting financial difficulties;
(5) substitution of credit or liquidity providers, or their failure to perform;
(6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or
final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-
TEB) or other material notices or determinations with respect to the tax status of
the Bonds, or other material events affecting the tax status of the Bonds;
(7) modifications to rights of holders of the Bonds, if material;
(8) bond calls, if material, and tender offers;
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(9) defeasances;
(10) release, substitution, or sale of property securing repayment of the Bonds, if
material;
(11) rating changes;
(12) bankruptcy, insolvency, receivership or similar event of the City, which is
considered to occur when any of the following occur: the appointment of a
receiver, fiscal agent or similar officer for the City or the Department in a
proceeding under the U.S. Bankruptcy Code or in any other proceeding under state
or federal law in which a court or governmental authority has assumed jurisdiction
over substantially all of the assets or business of the Department or the City, or if
such jurisdiction has been assumed by leaving the existing governing body and
officials or officers in possession but subject to the supervision and orders of a
court or governmental authority, or the entry of an order confirming a plan of
reorganization, arrangement or liquidation by a court or governmental authority
having supervision or jurisdiction over substantially all of the assets or business of
the Department or the City;
(13) the consummation of a merger, consolidation, or acquisition involving the
Department or the City or the sale of all or substantially all of the assets of the
Department or the City, other than in the ordinary course of business, the entry into
a definitive agreement to undertake such an action or the termination of a definitive
agreement relating to any such actions, other than pursuant to its terms, if material;
(14) appointment of a successor or additional trustee or the change of name of a trustee,
if material;
(15) incurrence of a financial obligation of the Department, if material, or agreement to
covenants, events of default, remedies, priority rights, or other similar terms of a
financial obligation of the Department, any of which affect Bondholders, if
material; or
(16) default, event of acceleration, termination event, modification of terms, or other
similar events under the terms of a financial obligation of the Department, any of
which reflect financial difficulties.
(b) The City covenants that its determination of materiality will be made in conformance with
federal securities laws.
(c) Upon the occurrence of a Listed Event, the City shall promptly cause a notice of such
occurrence to be filed with the MSRB, through EMMA, in an electronic format as prescribed by the MSRB,
together with a cover sheet in substantially the form attached as Exhibit C. In connection with providing a
notice of the occurrence of a Listed Event described in subsection (a)(9), the City shall include in the notice
explicit disclosure as to whether the Bonds have been escrowed to maturity or escrowed to call, as well as
appropriate disclosure of the timing of maturity or call.
(d) The City acknowledges that the “rating changes” referred to above in Section (5)(a)(11) of this
Agreement may include, without limitation, any change in any rating on the Bonds, including changes in
the ratings of bond insurers or banks that may be providing credit enhancement on a portion of the Bonds.
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(e) The City acknowledges that it is not required to provide a notice of a Listed Event with respect
to credit enhancement when the credit enhancement is added after the primary offering of the Bonds, the
City does not apply for or participate in obtaining such credit enhancement, and such credit enhancement
is not described in the Official Statement.
SECTION 6. TERMINATION OF REPORTING OBLIGATION.
(a) The City’s obligations under this Agreement shall terminate upon the legal defeasance of the
Bonds under the Master Indenture or the prior redemption or payment in full of all of the Bonds. If the
City’s obligation to pay the principal of and interest on the Bonds is assumed in full by some other entity,
such entity shall be responsible for compliance with this Agreement in the same manner as if it were the
City, and the City shall have no further responsibility hereunder.
(b) This Agreement, or any provision hereof, shall be null and void in the event that the City (i)
receives an opinion of Securities Counsel, addressed to the City, to the effect that those portions of the Rule,
which require such provisions of this Agreement, do not or no longer apply to the Bonds, whether because
such portions of the Rule are invalid, have been repealed, amended or modified, or are otherwise deemed
to be inapplicable to the Bonds, as shall be specified in such opinion, and (ii) delivers notice to such effect
to the MSRB, through EMMA, in an electronic format as prescribed by the MSRB.
SECTION 7. AMENDMENT; WAIVER.
(a) Notwithstanding any other provision of this Agreement, this Agreement may be amended, and
any provision of this Agreement may be waived, provided that the following conditions are satisfied:
(1) if the amendment or waiver relates to the provisions of Section 3(a), (b), (c), 4 or
5(a), it may only be made in connection with a change in circumstances that arises
from a change in legal requirements, a change in law or a change in the identity,
nature or status of the City or the Department or type of business conducted by the
City or the Department;
(2) this Agreement, as so amended or taking into account such waiver, would, in the
opinion of Securities Counsel, have complied with the requirements of the Rule at
the time of the original issuance of the Bonds, after taking into account any
amendments or interpretations of the Rule, as well as any change in circumstances;
and
(3) the amendment or waiver either (A) is approved by the Bondholders in the same
manner as provided in the Master Indenture for amendments to the Master
Indenture with the consent of the Bondholders, or (B) does not, in the opinion of
Securities Counsel, materially impair the interests of the Bondholders.
(b) In the event of any amendment to, or waiver of a provision of, this Agreement, the City shall
describe such amendment or waiver in the next Annual Report and shall include an explanation of the
reason for such amendment or waiver. In particular, if the amendment results in a change to the annual
financial information required to be included in the Annual Report pursuant to Section 4 of this Agreement,
the first Annual Report that contains the amended operating data or financial information shall explain, in
narrative form, the reasons for the amendment and the impact of such change in the type of operating data
or financial information being provided. Further, if the annual financial information required to be provided
in the Annual Report can no longer be generated because the operations to which it related have been
materially changed or discontinued, a statement to that effect shall be included in the first Annual Report
that does not include such information.
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(c) If the amendment results in a change to the accounting principles to be followed in preparing
financial statements as set forth in Section 4 of this Agreement, the Annual Report for the year in which the
change is made shall include a comparison between the financial statements or information prepared on the
basis of the new accounting principles and those prepared on the basis of the former accounting principles.
The comparison shall include a qualitative discussion of such differences and the impact of the changes on
the presentation of the financial information. To the extent reasonably feasible, the comparison shall also
be quantitative. A notice of the change in accounting principles shall be sent by the City to the MSRB,
through EMMA, in an electronic format as prescribed by the MSRB.
SECTION 8. ADDITIONAL INFORMATION. Nothing in this Agreement shall be deemed to
prevent the City from disseminating any other information, using the means of dissemination set forth in
this Agreement or any other means of communication, or including any other information in any Annual
Report or notice of occurrence of a Listed Event, in addition to that which is required by this Agreement.
If the City chooses to include any information in any Annual Report or notice of occurrence of a Listed
Event in addition to that which is specifically required by this Agreement, the City shall have no obligation
under this Agreement to update such information or include it in any future Annual Report or notice of
occurrence of a Listed Event.
SECTION 9. FAILURE TO COMPLY. In the event of a failure of the City to comply with any
provision of this Agreement, any Bondholder or Beneficial Owner may bring an action to obtain specific
performance of the obligations of the City under this Agreement, but no person or entity shall be entitled
to recover monetary damages hereunder under any circumstances, and any failure to comply with the
obligations under this Agreement shall not constitute a default with respect to the Bonds or under the Master
Indenture.
SECTION 10. BENEFICIARIES. This Agreement shall inure solely to the benefit of the City,
the Participating Underwriters, the Bondholders and the Beneficial Owners, and shall create no rights in
any other person or entity.
SECTION 11. TRANSMISSION OF INFORMATION AND NOTICES; DISSEMINATION
AGENT. Unless otherwise required by law or this Agreement, and, in the sole determination of the City,
subject to technical and economic feasibility, the City shall employ such methods of information and notice
transmission as shall be requested or recommended by the herein-designated recipients of such information
and notices. Any filing with the MSRB under this Agreement may be made by transmitting such filing to
a dissemination agent.
SECTION 12. OTHER OBLIGATED PERSONS. Currently, Delta Air Lines, Inc. (“Delta”) is
the only Obligated Person other than the City, and Delta is required by the 1934 Act to file annual financial
information in the form of its SEC Reports with the SEC as described in the Official Statement. The City
assumes no responsibility for the accuracy or completeness of the SEC Reports or other annual financial
information disseminated by Delta or any future Obligated Person. The City shall report as part of its
Annual Report any change in Obligated Persons and that an Obligated Person’s SEC Reports constitute its
annual financial information under this Agreement, if such is the case. Unless no longer required by the
Rule, the City shall use diligent efforts to cause each Obligated Person other than the City (to the extent
that such party is not required to file SEC Reports) to disseminate annual financial information substantially
equivalent to that contained in SEC Reports to the MSRB, through EMMA, in an electronic format as
prescribed by the MSRB, not later than nine months after the last day of the Obligated Person’s fiscal year.
The City has no obligation to file or disseminate any SEC Reports relating to another Obligated Person.
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SALT LAKE CITY, UTAH
By:
Name:
Title:
Dated: _______________ __, 2023.
A-1
4856-9292-0926.1
EXHIBIT A TO CONTINUING DISCLOSURE AGREEMENT
NOTICE TO THE MSRB
OF FAILURE TO FILE ANNUAL REPORT
Name of Obligated Person:Salt Lake City, Utah
Name of Bond Issue:Airport Revenue Bonds, Series 2023A (AMT)
Airport Revenue Bonds, Series 2023B (Non-AMT)
Date of Bonds:August __ , 2023
NOTICE IS HEREBY GIVEN that the City has not provided an Annual Report with respect to the
above-named Bonds as required by Section 3 of its Continuing Disclosure Agreement with respect to the
Bonds. The City anticipates that the Annual Report will be filed by ______________________.
SALT LAKE CITY, UTAH
By:
Name:
Title:
Dated: __________________________
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4856-9292-0926.1
EXHIBIT B TO CONTINUING DISCLOSURE AGREEMENT
NOTICE TO THE MSRB
OF CHANGE IN CITY’S FISCAL YEAR
Name of Obligated Person:Salt Lake City, Utah
Name of Bond Issue:Airport Revenue Bonds, Series 2023A (AMT)
Airport Revenue Bonds, Series 2023B (Non-AMT)
Date of Bonds:August __ , 2023
NOTICE IS HEREBY GIVEN that the fiscal year of the [City/Department] changed. Previously,
the [City/Department]’s fiscal year ended on _________________. It now ends on _________________.
SALT LAKE CITY, UTAH
By:
Name:
Title:
Dated: __________________________
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4856-9292-0926.1
EXHIBIT C TO CONTINUING DISCLOSURE AGREEMENT
MUNICIPAL SECONDARY MARKET DISCLOSURE
INFORMATION COVER SHEET
This cover sheet should be sent with all submissions made to the Municipal Securities Rulemaking
Board, pursuant to Securities and Exchange Commission Rule 15c2-12 or any analogous state statute.
***
Issuer’s and/or Other Obligated Person’s name: Salt Lake City, Utah
CUSIP Numbers (attach additional sheet if necessary):
Nine-Digit CUSIP Number(s) to which the information relates:
Information relates to all securities issued by the City having the following six-digit number(s):
***
Number of pages of attached information: ________________________________________
Description of Material Events Notice/Financial Information (Check One):
1. ______ Principal and interest payment delinquencies
2. ______ Material non-payment related defaults
3. ______ Unscheduled draws on debt service reserves reflecting financial difficulties
4. ______ Unscheduled draws on credit enhancements reflecting financial difficulties
5. ______ Substitution of credit or liquidity providers or their failure to perform
6. ______ Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material
notices or determinations with respect to the tax status of the bonds, or other material events
affecting the tax status of the bonds
7. ______ Material modifications to rights of securities holders
8. ______ Bond calls, if material, or tender offers
9. ______ Defeasances
10. ______ Material release, substitution, or sale of property securing repayment of the bonds
11. ______ Rating changes
12. ______ Bankruptcy, insolvency, receivership or similar event of the Department or the City
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4856-9292-0926.1
13. ______ The consummation of a merger, consolidation, or acquisition involving the Department or
the City or the sale of all or substantially all of the assets of the Department or the City, the entry
into a definitive agreement to undertake such an action or the termination of a definitive agreement
relating to any such actions, other than pursuant to its terms, if material
14. ______ Appointment of a successor or additional trustee or the material change of name of a trustee
15. ______ Incurrence of a financial obligation of the Department, if material, or agreement to
covenants, events of default, remedies, priority rights, or other similar terms of a financial
obligation of the Department, any of which affect Bondholders, if material
16. ______ Default, event of acceleration, termination event, modification of terms, or other similar
events under the terms of a financial obligation of the Department, any of which reflect financial
difficulties
17. ______ Failure to provide annual financial information as required
18. ______ Other material event notice (specify)
19. ______ Financial Information: Please check all appropriate boxes:
ACFR (a) __ includes __ does not include Annual Financial Information
(b) __ audited __ unaudited
Fiscal Period Covered: ______________
I hereby represent that I am authorized by the City or its agent to distribute this information publicly:
Signature:
Name:Title:
Employer:
Address:
City, State, Zip Code:
Voice Telephone Number:()
4854-1788-4237
EXHIBIT F
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that Salt Lake City (the “City”) shall hold a public hearing
with respect to the City’s plans to issue, from time to time, the City’s Airport Revenue Bonds,
Series 2023 (with any other or additional series or title designation determined by the City, the
“Bonds”).
PURPOSE, TIME, PLACE AND LOCATION OF PUBLIC HEARING
The City shall hold a public hearing on June 6, 2023, at the hour of 7:00 p.m. via electronic
means and in person. The purpose of the hearing is to receive input from the public with respect
to (a) the issuance of the Bonds, from time to time, and (b) the potential economic impact that the
Bond Projects (as hereinafter defined) to be financed with the proceeds of the Bonds will have on
the private sector. All members of the public are invited to attend and participate.
All persons interested and present will be given an opportunity to be heard in this matter.
This meeting will be held via electronic means, while also providing for an in-person opportunity
to attend or participate in the hearing at the City and County Building, located at 451 South State
Street, Room 326, Salt Lake City, Utah. For more information please visit
www.slc.gov/council/virtual-meetings or call 801-535-7654.
Persons wishing to make comments in writing about the Bonds, the proposed plan of
financing related to the Bonds and the Bond Projects shall do so within fourteen (14) days
following the publication hereof through any of the following methods:
• Calling the 24-Hour comment line at (801) 535-7654
• Emailing council.comments@slcgov.com.
• Postal Mail: PO Box 145476 Salt Lake City UT 84111-5476
All comments received through any source are shared with the City Council and added to
the public record.
In addition to attending the meeting in person, the public may watch the meeting using the
following platforms:
Facebook Live: www.facebook.com/slcCouncil/
YouTube: www.youtube.com/slclivemeetings
Web Agenda: www.slc.gov/council/agendas/
SLCtv Channel 17 Live: www.slctv.com/livestream/SLCtv-Live/2
This Notice is the notice required by Utah Code Section 11-14-318 and Section 147(f) of
the Internal Revenue Code of 1986, as amended (the “IRC”).
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4854-1788-4237
ISSUANCE OF BONDS
Purpose for Issuing the Bonds
The public hearing with respect to the Bonds is being held in accordance with Utah Code
Section 11-14-318 and Section 147(f) of the IRC. Pursuant to the provisions of the Local
Government Bonding Act, Title 11, Chapter 14 Utah Code Annotated 1953, as amended (the
“Act”) on May 16, 2023 the City Council of the City (the “Council”), adopted a resolution in which
it authorized, among other things, a plan of financing involving the issuance of the Bonds.
The Bonds will be issued pursuant to a plan of finance to provide proceeds to (a) finance
the Bond Projects (as described in the following paragraph), (b) fund capitalized interest on all or
a portion of the Bonds, (c) fund any required deposits to a debt service reserve fund, and (d) pay
costs of issuance of the Bonds (including, but not limited to, the purchase of one or more municipal
bond insurance policies)
The “Bond Projects,” which are all necessary for the integrated operation of the Salt Lake
City International Airport in accordance with Section 142(a)(1) of the Code, to be financed with
the proceeds of the Bonds include the acquisition, construction, reconstruction, development,
expansion, improvement, equipping and/or modification, as appropriate, of various capital
improvement projects at the Salt Lake City International Airport, including: (a) runway, taxiway,
apron and other airfield improvements, (b) utilities, (c) replacement of substantially all of the Salt
Lake City International Airport’s terminal complex facilities, including, but not limited to, terminal
buildings and concourses, and (d) other related improvements at the Salt Lake City International
Airport.
The Bond Projects will be located at the Salt Lake City International Airport. The City
will be the owner of the Bond Projects to be financed and also will be the initial operator, except
to the extent the use thereof is permitted by leases and other agreements with air carriers and other
tenants utilizing the Bond Projects. The proposed Bonds will be paid solely from revenues and
other moneys derived by the City from or with respect to the Salt Lake City International Airport
and the other facilities of the Salt Lake City Airport System (as defined in the hereinafter defined
Senior Indenture).
Parameters of the Bonds
The City intends to issue the Bonds in one or more series, in the aggregate principal amount
of not more than $600,000,000, to mature in not more than 40 years from their date or dates of
delivery, to be sold at a price not less than 98% of the total principal amount thereof, and bearing
interest at a rate or rates not to exceed 6.00% per annum. The Bonds are to be issued and sold by
the City pursuant to a Master Trust Indenture (previously executed and delivered by the City) and
a Fourth Supplemental Trust Indenture (collectively, the “Senior Indenture”).
Net Revenues Proposed to be Pledged
The City proposes to pledge Net Revenues (as defined in the Senior Indenture) derived by
the City from the operations of the Salt Lake City Airport System (as defined in the Senior
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4854-1788-4237
Indenture), and certain funds and accounts established under the Senior Indenture to secure the
Bonds.
The Bonds will be limited obligations of the City, payable solely from and secured by a
pledge of Net Revenues derived by the City from the operations of the Salt Lake City Airport
System and certain funds and accounts. None of the properties of the Salt Lake City Airport
System will be subject to any mortgage or other lien for the benefit of the owners of the Bonds,
and neither the full faith and credit nor the taxing power of the City, the State of Utah (the “State”)
or any political subdivision or agency of the State will be pledged to the payment of the principal
of, premium, if any, or interest on the Bonds.
OUTSTANDING BONDS SECURED BY NET REVENUES
AND OUTSTANDING OBLIGATIONS SECURED BY SUBORDINATE REVENUES
In addition to the proposed Bonds, the following airport revenue bonds of the City are
secured by Net Revenues on parity with the Bonds and are currently outstanding: (a) Salt Lake
City, Utah Airport Revenue Bonds, Series 2017A (AMT) outstanding in the aggregate principal
amount of $808,925,000; (b) Salt Lake City, Utah Airport Revenue Bonds, Series 2017B (Non-
AMT) outstanding in the aggregate principal amount of $169,590,000; (c) Salt Lake City, Utah
Airport Revenue Bonds, Series 2018A (AMT) outstanding in the aggregate principal amount of
$753,855,000; (d) Salt Lake City, Utah Airport Revenue Bonds, Series 2018B (Non-AMT)
outstanding in the aggregate principal amount of $96,695,000; (e) Salt Lake City, Utah Airport
Revenue Bonds, Series 2021A (AMT) outstanding in the aggregate principal amount of
$775,520,000; and (f) Salt Lake City, Utah Airport Revenue Bonds, Series 2021B (Non-AMT)
outstanding in the aggregate principal amount of $127,475,000 (collectively with the Bonds, the
“Senior Bonds”).
In addition to the Senior Bonds, the City established a short-term borrowing program for
the benefit of the Department of Airports of the City, which is implemented through the issuance
and/or incurrence, from time to time, by the City of its Subordinate Airport Revenue Short-Term
Revolving Obligations (the “Subordinate Revolving Obligations”). The Subordinate Revolving
Obligations may be outstanding, at any one time, in an aggregate principal amount not exceeding
$150,000,000. The Subordinate Revolving Obligations are issued and/or incurred pursuant to a
Master Subordinate Trust Indenture, a First Supplemental Subordinate Trust Indenture and a
Revolving Credit Agreement entered into by the City and JPMorgan Chase Bank, National
Association. The Subordinate Revolving Obligations are paid solely from the Subordinate
Revenues (as defined in the Master Subordinate Trust Indenture) derived by the City from the
operations of the Salt Lake City Airport System, and certain funds and accounts established under
the Master Subordinate Trust Indenture and the First Supplemental Subordinate Trust Indenture.
Other than the Subordinate Revolving Obligations (and certain obligations of the City set forth in
the Revolving Credit Agreement) the City has no other bonds or obligations secured by the
Subordinate Revenues.
OTHER OUTSTANDING BONDS OF THE CITY
Additional information regarding the City’s outstanding bonds may be found in the City’s
financial report (the “Financial Report”) at: https://reporting.auditor.utah.gov/SearchReport. For
F-4
4854-1788-4237
additional information, including any information more recent than as of the date of the Financial
Report, please contact the office of the Salt Lake City Treasurer at (801) 535-7946.
Dated this [___] day of [____], 2023.
By
City Recorder
4854-1788-4237
EXHIBIT G
NOTICE OF BONDS TO BE ISSUED
NOTICE IS HEREBY GIVEN pursuant to the provisions of the Local Government
Bonding Act, Title 11, Chapter 14, Utah Code Annotated 1953, as amended, that on May 16, 2023
the City Council (the “Council”) of Salt Lake City, Utah (the “City”), adopted a resolution (the
“Resolution”) in which it authorized the plan of financing involving the issuance of the City’s
Airport Revenue Bonds, Series 2023 (with any other or additional series or title designation
determined by the City, the “Bonds”).
PURPOSE FOR ISSUING THE BONDS
The Bonds will be issued pursuant to a plan of finance to provide proceeds to (a) finance
the Projects (as described in the following paragraph), (b) fund capitalized interest on all or a
portion of the Bonds, (c) fund any required deposits to a debt service reserve fund, and (d) pay
costs of issuance of the Bonds (including, but not limited to, the purchase of one or more municipal
bond insurance policies)
The “Projects” to be financed with the proceeds of the Bonds include the acquisition,
construction, reconstruction, development, expansion, improvement, equipping and/or
modification, as appropriate, of various capital improvement projects at the Salt Lake City
International Airport, including: (a) runway, taxiway, apron and other airfield improvements,
(b) utilities, (c) replacement of substantially all of the Salt Lake City International Airport’s
terminal complex facilities, including, but not limited to, terminal buildings and concourses, and
(d) other related improvements at the Salt Lake City International Airport.
The Projects will be located at the Salt Lake City International Airport. The City will be
the owner of the Projects to be financed and also will be the initial operator, except to the extent
the use thereof is permitted by leases and other agreements with air carriers and other tenants
utilizing the Projects. The proposed Bonds will be paid solely from revenues and other moneys
derived by the City from or with respect to the Salt Lake City International Airport and the other
facilities of the Salt Lake City Airport System (as defined in the hereinafter defined Indenture).
PARAMETERS OF THE BONDS
The City intends to issue the Bonds in one or more series, in the aggregate principal amount
of not more than $600,000,000, to mature in not more than 40 years from their date or dates, to be
sold at a price not less than 98% of the total principal amount thereof, and bearing interest at a rate
or rates not to exceed 6.00% per annum. The Bonds are to be issued and sold by the City pursuant
to a Master Trust Indenture (previously executed and delivered by the City) and a Fourth
Supplemental Trust Indenture (collectively, the “Indenture”), which Fourth Supplemental Trust
Indenture was before the Council in substantially final form at the time of the adoption of the
Resolution.
G-2
4854-1788-4237
NET REVENUES PROPOSED TO BE PLEDGED
The City proposes to pledge Net Revenues (as defined in the Indenture) derived by the City
from the operations of the Salt Lake City Airport System (as defined in the Indenture), and certain
funds and accounts established under the Indenture, to the payment of the principal of and interest
on the Bonds.
The Bonds will be limited obligations of the City, payable solely from and secured by a
pledge of Net Revenues derived by the City from the operations of the Salt Lake City Airport
System and certain funds and accounts. None of the properties of the Salt Lake City Airport
System will be subject to any mortgage or other lien for the benefit of the owners of the Bonds,
and neither the full faith and credit nor the taxing power of the City, the State of Utah (the “State”)
or any political subdivision or agency of the State will be pledged to the payment of the principal
of, premium, if any, or interest on the Bonds.
OUTSTANDING BONDS SECURED BY NET REVENUES
AND OUTSTANDING OBLIGATIONS SECURED BY SUBORDINATE REVENUES
In addition to the proposed Bonds, the following airport revenue bonds of the City secured
by Net Revenues on parity with the Bonds are currently outstanding: (a) Salt Lake City, Utah
Airport Revenue Bonds, Series 2017A (AMT) outstanding in the aggregate principal amount of
$808,925,000; (b) Salt Lake City, Utah Airport Revenue Bonds, Series 2017B (Non-AMT)
outstanding in the aggregate principal amount of $169,590,000; (c) Salt Lake City, Utah Airport
Revenue Bonds, Series 2018A (AMT) outstanding in the aggregate principal amount of
$753,855,000; (d) Salt Lake City, Utah Airport Revenue Bonds, Series 2018B (Non-AMT)
outstanding in the aggregate principal amount of $96,695,000; (e) Salt Lake City, Utah Airport
Revenue Bonds, Series 2021A (AMT) outstanding in the aggregate principal amount of
$775,520,000; and (f) Salt Lake City, Utah Airport Revenue Bonds, Series 2021B (Non-AMT)
outstanding in the aggregate principal amount of $127,475,000 (collectively, the “Existing
Bonds”).
In addition to the Bonds and the Existing Bonds secured by Net Revenues, the City
established a short-term borrowing program for the benefit of the Department of Airports of the
City which has been implemented through the issuance and/or incurrence, from time to time, by
the City of its “Salt Lake City, Utah Subordinate Airport Revenue Short-Term Revolving
Obligations” (the Subordinate Revolving Obligations”). The Subordinate Revolving Obligations
may be outstanding at any one time in an aggregate principal amount not exceeding $150,000,000.
The Subordinate Revolving Obligations are secured by Subordinate Revenues (Net Revenues
remaining after (i) the payment of debt service on the Bonds, the Existing Bonds and any additional
bonds issued with a lien on Net Revenues, and (ii) the funding of any debt service reserve funds
for the Bonds, the Existing Bonds and any additional bonds issued with a lien on Net Revenues).
OTHER OUTSTANDING BONDS OF THE CITY
Additional information regarding the City’s outstanding bonds may be found in the City’s
financial report (the “Financial Report”) at: https://reporting.auditor.utah.gov/SearchReport. For
additional information, including any information more recent than as of the date of the Financial
Report, please contact the office of the Salt Lake City Treasurer at (801) 535-7946.
G-3
4854-1788-4237
TOTAL ESTIMATED COST
Based on the City’s current plan of finance and a current estimate of interest rates, the total
principal and interest cost of the Bonds, if held until maturity, is approximately $[___].
A copy of the Resolution and the Indenture are on file (print and electronic) in the office
of the Salt Lake City Recorder, located at 451 South State Street, Room 415, Salt Lake City, Utah,
where they may be examined by appointment during regular business hours of the City Recorder
from 8:00 a.m. to 5:00 p.m. for a period of at least thirty (30) days from and after the date of
publication of this notice. Additionally, a protected, pdf copy of the Resolution and the Indenture
may be requested by sending an email to the City Recorder at SLCRecorder@slcgov.com.
NOTICE IS FURTHER GIVEN that a period of thirty (30) days from and after the date of
the publication of this notice is provided by law during which any person in interest shall have the
right to contest the legality of the Resolution, the Indenture (but only as it relates to the Bonds), or
the Bonds, or any provision made for the security and payment of the Bonds, and that after such
time, no one shall have any cause of action to contest the regularity, formality, or legality thereof
for any cause whatsoever.
Dated this [___] of [___], 2023.
By
City Recorder
CITY COUNCIL OF SALT LAKE CITY
451 SOUTH STATE STREET, ROOM 304
P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476
SLCCOUNCIL.COM
TEL 801-535-7600 FAX 801-535-7651
COUNCIL BUDGET
STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
TO:City Council Members
FROM:Sam Owen, Policy Analyst
DATE: May 9, 2023
RE:FISCAL YEAR 2023-24 BUDGET,
Metropolitan Water District of Salt Lake & Sandy
ISSUE AT-A-GLANCE
The Metropolitan Water District of Salt Lake & Sandy (the district) was created in 1935 by the voters of Salt Lake
City in order to provide for additional water management and treatment options from sources within and
beyond the Salt Lake watershed areas. The district treats and conveys water from the Provo River system and the
Central Utah Project, drawing from sources such as the Strawberry Reservoir and Provo and Weber Rivers,
among many others.
The Council reviews the district budget and does not formally adopt it. The Council appoints five of the seven-
member Board of Trustees. The total FY23 expenditures and revenues figure is an estimated $98.6 million. The
district also plans bonding activity this year resulting in a projected $34.5 million. The revenue figure and capital
figure could shift pending outcome of the property tax discussion outlined below.
KEY ITEMS
The district highlights new required projects potentially coming online this budget year. This group of projects
totals $113 million and the district anticipates fiscal impact for the duration of implementation will be $9.3
million per year.
The district evaluated capital and operational costs and developed a budget proposal for the coming year that
would include a property tax rate hike.
Impact to an SLC homeowner with residential property with taxable value of $316,000 would pay an additional
$44 per year. Salt Lake and Sandy are the only two member cities whose residents would pay the tax increase,
and so the only cities to consider the proposal. (It should be noted that residents who are customers in Salt Lake
City’s water service area, but are not City residents, would not pay for the property tax increase. In Public
Utilities water rate structure, those water customers pay a “differential” that accounts for this factor, plus other
differences.) For more information on how the district is funded, please refer to the background section on page
2.
Item Schedule:
Briefing: May 9, 2023
Public Hearing: May 16 & June
6, 2023
Potential Action: June 13, 2023
(TBD)
Page | 2
However, in response to feedback, the district signaled the tax proposal request would likely be
deferred. The increase would be revisited and studied over the next year for possible inclusion in the next fiscal
year budget, 2024-25.
In this scenario, rate increases for sales to member cities would remain steady at 3% until fiscal 2029. A major
capital project would be delayed at least one fiscal year. This would align with budgeted water costs in the city’s
Public Utilities.
Other highlights of the proposed budget include:
As previously planned, a rate increase of 3% is proposed this year. The same percent increase is tentatively
planned for water sales to member cities every year through 2027. Salt Lake City customers see this increase
through the bill for water service from Public Utilities.
The pending increase is proposed for member cities’ property tax rates for the fiscal 2024 budget but is still
under discussion.
A 7% graduated cost of living adjustment (COLA) salary increase for employees is proposed. FTE count would
increase by two.
District supplies are included in the Public Utilities long-term water source forecast and plan for Salt Lake City
and the service area.
OTHER BACKGROUND
The district is funded primarily through the water sales to its member cities (Salt Lake and Sandy) and other
surplus customers. Other revenue sources include property taxes from member city residents, and capital
assessments paid by each member city toward costs related to master planned capital improvements.
The expenditures include operations and maintenance costs within their own system, debt service, capital
assessments, as well as water purchases, conveyance, and operations and maintenance for the Provo River
Water Users Association, the Central Utah Water Conservancy District (CUWCD) and Central Utah Project
(CUP), and the Jordan Valley Water Conservancy District. These relationships allow the District to collect, treat,
store and convey water resources throughout the Salt Lake Valley.
Increased revenues relative to last year’s from water sales to Salt Lake City. Costs for this water are paid by
customers via Salt Lake City Public Utilities. Any water sales revenues collected from sales of surplus water to
outside entities is placed in an Aquifer Storage and Recovery reserve to help offset member city capital costs.
POLICY QUESTIONS
1.Would the Council support deferring a property tax increase, and ask the District to come back midyear
to discuss the projected request for fiscal 2025?
2.The Central Utah Water Conservancy District (CUWCD) is an entity organized for conveyance,
treatment, storage, and capital needs related to water obtained through the Central Utah Project.
a. In the future, the Council may wish to explore working with Salt Lake area representatives on
the CUWCD Board to encourage budget and policy measures that would continue to address
infrastructure and service needs.
b. Discussion could also include planning for CUWCD policy decisions that create impacts to City
ratepayers.
Page | 3
Salt Lake City’s Annual Contributions
•$7,021,892 capital assessment, related to infrastructure upgrades and facility improvements, for
example the Metro Water Project completed in 2007, construction of Point of the Mountain Water
Treatment Plant, Point of the Mountain Aqueduct, and capacity upgrades to Little Cottonwood Water
Treatment Plant
•$17,121,570 paid for wholesale water purchased from the district for resale through the Water Utility to
customers throughout the SLC system
•$8,654,447 estimated in property taxes paid by Salt Lake City residents last year (the amount for fiscal
2024 being undetermined at this time)
ATTACHMENTS
1. Metropolitan Water District FY24 tentative budget
2. Property tax proposal and discussion, summary from District staff
Overview and Summary of
FY24 Budget
Salt Lake City Council
May 9, 2023
Outline
Overview of Metropolitan Water District of Salt Lake & Sandy
FY24 Budget
Uses and Sources of Funds
Summary
Metropolitan Water District of
Salt Lake & Sandy
Established in August 1935
Salt Lake City founding member
Board of Trustees
Board members appointed
by city councils
•Salt Lake City –5
members
•Sandy City –2 members
•4 year terms
Customers of Metro
Salt Lake City
Sandy City
Surplus Customers
Jordan Valley Water
Conservancy District
Irrigators
Others
METRO WATER SUPPLY Typical Annual
Supply
(acre-feet)
Provo River Project
Deer Creek Reservoir
61,900
Central Utah Project –Municipal & Industrial
Jordanelle Reservoir
20,000
Central Utah Project –Utah Lake System
Strawberry Reservoir, SLC Preferential Right
3,100
Little Cottonwood Creek
Salt Lake City and Sandy City Rights
20,000
Ontario Drain Tunnel
Sandy City Preferential Right
2,800
Bell Canyon
Sandy City Right
900
Total:108,700
Central Utah Project –Utah Lake System (available in
FY2031)
2,500
Metro Key Facilities
Little Cottonwood Water Treatment Plant
Design capacity: 150 million gallons per day (MGD)
Constructed: 1960
Point of the Mountain Water Treatment Plant
Design capacity: 70 MGD
Constructed: 2007
Metro Key Facilities
Salt Lake Aqueduct
42 miles long
69 inch inside diameter
Design capacity: 113 MGD
Point of the Mountain Aqueduct
12 miles of 60 inch diameter pipe
•Design capacity: 77 MGD
2.5 miles of 84 inch diameter pipe
•Design capacity: 151 MGD
Metro Key Facilities
Terminal Reservoir
Replacement project completed in 2018
Design capacity: 48 million gallons
Jordan Aqueduct System
Metro owns 2/7
Jordan Aqueduct and related facilities
Jordan Valley Water Treatment Plant
Fiscal Year 2024 Budget
Metropolitan Water District of Salt Lake & Sandy
Sources of Funds
FY24 Tentative Budget
Water
Sales
44%
Property Taxes
20%
Assessments
34%
Misc
2%
FY24 Tentative Budget With
Increase to Certified Tax Rate
Water
Sales
39%
Property Taxes
29%
Assessments
30%
Misc
2%
Water Sales
3% increase to member cities
Salt Lake City $17,121,570
Sandy City $6,658,388
3% increase to non-member entities
Water sales to non-member entities on a surplus basis to help
offset member city costs
Fixed water rate supports conjunctive water use
Utilization of surface water supplies while resting ground water
supplies
Provides predictability for Metro and member cities
Property Taxes
Review of certified rate increases
District’s last property tax increase occurred in 2008.
In 2008, the rate was set to 0.00035.
Rate has eroded as the value of properties has increased.
Salt Lake City current tax rate is 0.000212 ($8,654,447)
FY24 budget proposes an increase (or re-establishment) to 0.00035
Property Tax Evaluation
Why Property Taxes for Water
Revenue Alternative for FY 2025
P
r
o
p
e
r
t
y
T
a
x
•Increase property tax to 0.00035 in FY25.
W
a
t
e
r
R
a
t
e
s
•Maintain 3% water rate increases
C
a
p
i
t
a
l
P
r
o
j
e
c
t
•Delay Cottonwoods Connection Project until FY25
Uses of Funds
Operations & Maintenance
Capital Projects
Costs from Other Agencies
Provo River Water Users Association
Jordan Valley Water
Central Utah Water Conservancy District
Debt Service
Operations & Maintenance
Key O&M Components Budget
FY 2024
% Increase
from FY2023
$ Increase
from FY2023
Salary & Wages
•Addition of 2 FTEs
•7% COLA/Merit increase
$7,239,629 9.38%$620,776
PRWUA 4,244,885 3.68%150,832
Employee Benefits 3,096,854 7.67%220,494
Chemicals 2,684,779 12.94%307,629
Contract Services 2,025,666 3.45%67,533
Utilities 1,963,534 5.16%96,357
Administrative Fees 1,585,500 8.27%120,640
General Insurance 953,692 17.17%139,758
FY24 Capital and Costs from Other Agencies
Annual Cost
Increase from
Prior Year
Long-Term
Financial Impact
Cottonwoods Connection Project
Purpose: Required project to address aging
infrastructure and Salt Lake Aqueduct seismic and
other elements of resiliency
$2,276,800 $2,276,800 $34.4 Million
(Repayment of 30 yr.
bond)
Deer Creek Dam Intake Project
Purpose: Required project to address aging
infrastructure and Salt Lake Aqueduct seismic and
other elements of resiliency
$1,240,000 $1,240,000 $37 Million
(30 yr. repayment)
Jordan Aqueduct/ Jordan Valley Water
Treatment Plant Capital & O&M Costs
Purpose: Projects to address aging infrastructure that
delivers water to Northwest quadrant of Salt Lake
City.
$4,353,070 $735,541 $35.5 Million
(10 yrs.of capital
projects)
Central Utah Project OM&R Costs
Purpose: Expenses related to the District’s
investment in Central Utah Project water.
$1,501,500 $115,500 $6.9 Million
(forecasted target
increase)
Total $9,371,370 $4,367,751 $113.6 Million
Central Utah Water Conservancy District
Costs
Debt Service
Budget Process Timing Considerations
March 2023
•Work Session Discussion on Budget. Open public meeting
April 2023
•Board approval of the tentative budget
May 2023
•Meetings with member cities.
•Tentative budget public hearing.
June 2023
•Board meeting to approve FY24 budget.
•Certified tax rates must be approved by June 22
August 2023
•Certified tax
rate hearing
•Adoption of
final tax rate
and FY24
budget.
Thank you.
FY 2024BUDGET
MWDSLS
Executive Summary
Budget 001
Metropolitan Water District of Salt Lake & Sandy
3430 East Danish Road, Cottonwood Heights, UT 84093
Phone: 801-942-1391 Fax: 801-942-3674
www.mwdsls.org
April 1, 2023—This is an executive summary of the fiscal year (FY) 2024 adopted budget for the
Metropolitan Water District of Salt Lake & Sandy (the “District”).
The budget includes total budgeted revenue of $98.6 million. This is based on a 3% increase to
the member cities water sales fixed charge ($/month). A 3% increase for non-member city water
rates is also budgeted. Future water rate increases are anticipated to be 3% annually through FY
2027. Projected rate increases are consistent with previous forecasts. The budget includes a
certified tax rate increase to 0.00035.
Total budgeted expenditures are $98.6 million. This reflects an increase of $12.4 million in non-
capacity capital expenditures and an increase of $1.9 million in capital expenditures for the
Jordan Aqueduct System.
The Operations and Maintenance (O&M) budget totals $27.0 million (excluding interest,
depreciation, and amortization) and now includes non-routine O&M costs and all Provo River
Water Users Association (PRWUA) costs. This represents a 7.45% increase in expenses due to
increased chemical costs and employee costs, including the addition of two full-time equivalents
(FTEs) for workload and succession planning needs. Additionally, this increase can be attributed
to escalating assessments for Central Utah Project (CUP) Operation, Maintenance, and
Replacement (OM&R) costs and related reserves. Costs related to CUP OM&R and related
reserves are forecasted to continue to increase significantly over the next several years based on
decisions of Central Utah Water Conservancy District. The forecasted increases are as follows
(cost per acre foot):
• FY 2024: $65.00 (8% increase)
• FY 2025: $70.00 (8% increase)
• FY 2026: $75.00 (7% increase)
• Increases beyond FY 2026 will be evaluated in the years leading up to FY 2027, with a
stated need of the total cost to reach $300 per acre foot.
The total FY 2024 capital budget is $34.8 million. The total debt service budget is $19.3 million.
An increase in reserves of $17.5 million is related to bond proceeds. These proceeds are tied to
bonds that will be issued for the Salt Lake Aqueduct Replacement project; additional refunding
opportunities may be explored.
As previously noted, the adopted budget includes an increase of two FTEs and a 7%
COLA/merit salary increase. The benefits plan includes District employees continuing to pay for
5% of the health insurance premium.
The forecasted interim annual allotment for the Provo River Project water supply is 100%. This
number is projected to remain the same when the allotment is finalized.
Michael J. DeVries, General Manager/Budget Officer
Budget 002
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
Budget Summary
Last update: 3/28/2023
Budget Tentative
2020 2021 2022 2023 2024
Sources of Funds
Water Sales
Member Cities 21,762,030$ 21,762,030$ 22,414,891$ 23,087,338$ 23,779,958$
Others 645,239 1,396,310 1,290,843 1,308,436 1,333,278
Total Water Sales 22,407,269 23,158,340 23,705,734 24,395,774 25,113,236
Property Taxes 11,768,876 11,978,658 12,283,207 11,704,390 18,422,265
Assessments 12,252,013 12,054,088 11,386,542 12,908,943 19,506,120
Miscellaneous
Interest 1,086,109 369,308 362,257 411,387 866,291
Other 125,838 166,362 200,957 208,117 239,246
Total Miscellaneous 1,211,947 535,670 563,214 619,504 1,105,537
Bond Proceeds - - - - 34,450,000
Total Sources of Funds 47,640,105$ 47,726,756$ 47,938,697$ 49,628,611$ 98,597,158$
Uses of Funds
Operations and Maintenance
Operations and Maintenance (includes O&M to other
agencies; excludes PRWUA O&M, Non-Routine
O&M, depreciation/amortization)14,672,981$ 17,003,754$ 17,312,794$ 20,046,011$ 21,895,839$
Provo River Water Users Association O&M 3,227,465 3,393,479 3,680,007 4,094,023 4,244,885
Non-Routine O&M 965,000 835,443
Total Operations and Maintenance 17,900,446 20,397,233 20,992,801 25,105,034 26,976,167
Depreciation/Amortization 9,800,218 9,110,222 9,556,743 10,980,920 10,945,164
Capital Projects
Capacity Improvement Projects - 77,968 78,431 900,000 11,125,500
Non-Capacity Improvement Projects 1,578,435 1,879,605 2,075,490 2,589,000 15,006,400
Jordan Aqueduct System & 150th South Pipeline 851,905 608,622 1,013,312 2,885,643 4,830,551
Central Utah Project (CUP) Capital 2,971,200 2,971,200 2,971,200 2,971,200 2,971,200
CUP ULS Petition - 844,223 844,223 844,223 844,223
Total Capital Projects (includes capital to other
agencies)5,401,540 6,381,619 6,982,656 10,190,066 34,777,874
Debt Service
Principal 8,330,000 10,125,000 10,435,000 11,155,000 12,391,800
Interest 8,481,559 5,975,443 5,716,566 4,434,740 6,916,648
Total Debt Service 16,811,559 16,100,443 16,151,566 15,589,740 19,308,448
Transfer to Fund Balance
Restricted - - - - -
Unassigned - - - - -
Total Transfers to Fund Balance - - - - -
40,113,544 42,879,294 44,127,023 50,884,840 81,062,489
Net Funds To/(From) Reserves 7,526,561 4,847,462 3,811,674 (1,256,229) 17,534,669
Total Uses of Funds 47,640,105$ 47,726,756$ 47,938,697$ 49,628,611$ 98,597,158$
Actual
Budget 003
Budget
Budget 004
Last update:
03/28/23
Account Description
Actual
FY 2020
Actual
FY 2021
Actual
FY 2022
3-Year Average
(FY 2020-2022)
Budget
FY 2023
Actual
12/31/2022
% of Total
Spent YTD
FY 2023
% of Total
Spent YTD
3-year
average
Projected
Spend
FY 2023
Projected Spend
to Budget
over/(under) for
FY 2023
Budget
FY 2024
% Change
from
FY 2023
Budget
5110 Salary & Wage Exp.4,692,472 4,893,542 5,352,071 4,979,362 5,993,094 2,708,816 45.20% 45.32% 5,922,107 (70,987) 6,568,046 9.59%
5120 Overtime Premium 103,403 105,435 108,008 105,615 123,382 55,487 44.97% 48.50% 119,111 (4,271) 120,055 -2.70%
5131 Sick Leave (11,062) (10,008) 10,443 (3,543) - - N/A 0.00%- - - N/A
5160 Vehicle Allowance - - - - - - N/A 0.00%- - - N/A
5170 On Call Pay 17,535 25,550 25,280 22,788 25,550 13,290 52.02% 47.89% 26,628 1,078 29,685 16.18%
5190 Other 870 200 - 357 2,500 50 2.00% 84.11%447 (2,053) 2,500 0.00%
5210 Payroll Taxes 360,871 380,508 421,996 387,791 474,327 207,996 43.85% 45.56% 461,142 (13,185) 519,343 9.49%
Salaries and Wages 5,164,089 5,395,227 5,917,798 5,492,370 6,618,853 2,985,639 45.11%6,529,435 (89,418) 7,239,629 9.38%
5310 Retirement Plan 968,559 1,012,250 1,105,163 1,028,657 1,248,172 585,606 46.92% 48.96% 1,216,906 (31,266) 1,352,248 8.34%
5320 Medical Insurance Premiums 1,329,592 1,346,027 1,376,486 1,350,702 1,564,118 676,027 43.22% 46.64% 1,494,004 (70,114) 1,658,509 6.03%
5330 Tuition Aid Program 19,209 9,192 12,506 13,635 20,000 772 3.86% 30.74% 14,625 (5,375) 37,000 85.00%
5350 Insurance Premiums 39,949 38,903 39,805 39,552 44,070 21,219 48.15% 50.11% 43,108 (962) 49,097 11.41%
Employee Benefits 2,357,309 2,406,372 2,533,960 2,432,546 2,876,360 1,283,624 44.63%2,768,643 (107,717) 3,096,854 7.67%
5340 Meetings & Seminars 25,432 22,199 25,987 24,539 57,210 20,953 36.62% 61.80% 43,467 (13,743) 66,030 15.42%
Employee Training 25,432 22,199 25,987 24,539 57,210 20,953 36.62%43,467 (13,743) 66,030 15.42%
5410 Business Travel 41,669 5,471 26,387 24,509 74,550 23,670 31.75% 51.86% 48,482 (26,068) 76,430 2.52%
5430 Vehicle O & M 50,233 50,112 57,432 52,592 77,750 40,974 52.70% 53.71% 77,443 (307) 96,328 23.89%
Transportation 91,902 55,583 83,819 77,101 152,300 64,644 42.45%125,925 (26,375) 172,758 13.43%
5510 Legal 255,465 212,709 342,978 270,384 300,000 123,280 41.09% 42.46% 295,893 (4,107) 396,000 32.00%
5520 Accounting 37,068 37,078 47,128 40,425 40,500 45,922 113.39% 80.96% 53,631 13,131 53,000 30.86%
5530 Contract Services 1,519,916 2,674,763 1,664,202 1,952,960 1,958,133 827,377 42.25% 54.78% 1,718,475 (239,658) 2,025,666 3.45%
5540 Other 13,842 14,107 28,222 18,724 26,600 4,087 15.37% 16.68% 26,858 258 29,100 9.40%
Professional Services 1,826,291 2,938,657 2,082,530 2,282,493 2,325,233 1,000,666 43.04%2,094,857 (230,376) 2,503,766 7.68%
5610 Telephone 24,520 24,635 28,100 25,751 35,071 14,188 40.45% 49.80% 31,502 (3,569) 44,711 27.49%
5620 Electricity 674,215 1,261,983 1,113,183 1,016,460 1,486,850 485,946 32.68% 50.99% 1,214,652 (272,198) 1,437,405 -3.33%
5630 Natural Gas 177,515 239,189 418,675 278,460 314,100 198,470 63.19% 27.42% 426,434 112,334 450,750 43.51%
5640 Radio Communications 6,842 18,281 7,535 10,886 8,560 9,594 112.08% 29.07% 15,666 7,106 11,810 37.97%
5650 Water 19,884 20,430 13,384 17,900 22,596 7,818 34.60% 52.85% 18,473 (4,123) 18,858 -16.54%
Utilities 902,976 1,564,518 1,580,877 1,349,457 1,867,177 716,016 38.35%1,706,727 (160,450) 1,963,534 5.16%
5710 Buildings & Grounds 47,908 67,778 97,618 71,101 194,400 67,627 34.79% 86.36% 94,152 (100,248) 197,900 1.80%
5720 Machinery & Equipment 231,484 327,102 390,431 316,339 328,310 133,277 40.59% 50.48% 296,875 (31,435) 429,832 30.92%
Repairs and Maintenance 279,392 394,880 488,049 387,440 522,710 200,904 38.44% 391,027 (131,683) 627,732 20.09%
5810 General Supplies 31,510 20,654 30,043 27,402 30,100 9,973 33.13% 63.30% 21,486 (8,614) 38,000 26.25%
5820 Office Supplies 11,595 9,555 11,323 10,824 10,200 7,937 77.81% 60.35% 11,967 1,767 11,100 8.82%
5830 Materials 193,406 225,068 238,305 218,927 251,011 149,502 59.56% 36.58% 308,548 57,537 268,556 6.99%
5840 Chemicals 1,867,658 1,742,573 1,685,474 1,765,235 2,377,150 1,115,018 46.91% 58.36% 2,103,798 (273,352) 2,684,779 12.94%
5850 Computer & Instr. Supplies 114,964 119,480 125,409 119,951 141,245 55,759 39.48% 42.77% 136,588 (4,657) 140,000 -0.88%
Chemicals and Supplies 2,219,133 2,117,330 2,090,554 2,142,339 2,809,706 1,338,189 47.63%2,582,387 (227,319) 3,142,435 11.84%
5901 General Insurance 558,663 637,726 685,396 627,262 813,934 414,077 50.87% 50.02% 820,894 6,960 953,692 17.17%
5902 Administrative Fees 864,446 1,035,315 5,081,011 2,326,924 1,464,360 29,530 2.02% 0.77% 1,482,610 18,250 1,586,700 8.35%
5903 Water Stock Assessment 923 2,072 1,617 1,537 22,348 50 0.22% 15.04% 19,036 (3,312) 22,355 0.03%
5904 Rent Exp.15,946 - 5,934 7,293 9,950 885 8.89% 100.00%885 (9,065) 11,700 17.59%
5905 Miscellaneous 67,812 72,496 74,781 71,696 76,429 32,017 41.89% 44.33% 76,994 565 83,329 9.03%
5906 Postage & Freight Exp.3,035 3,607 3,197 3,280 4,300 1,483 34.50% 47.97%4,201 (99) 3,600 -16.28%
5907 Contributions & Events 218,558 262,995 241,493 241,016 287,400 242,674 84.44% 1.35% 525,940 238,540 292,800 1.88%
5909 Depreciation Exp.10,720,865 10,915,668 11,047,487 10,894,673 11,198,000 5,587,892 49.90% 50.40% 11,142,065 (55,935) 11,118,000 -0.71%
5910 Interest Exp.8,481,559 5,975,443 5,716,566 6,724,523 4,434,740 2,624,870 59.19% 50.51% 5,249,740 815,000 6,916,648 55.97%
5911 Laundry 9,276 10,668 14,993 11,646 17,539 8,142 46.42% 74.22% 13,056 (4,483) 16,489 -5.99%
5913 Safety 33,194 50,065 42,699 41,986 77,213 27,292 35.35% 47.92% 70,118 (7,095) 68,591 -11.17%
5914 Subscriptions & Publications 1,141 1,992 1,518 1,550 3,615 529 14.62% 27.04%3,099 (516) 3,545 -1.94%
5915 Outside Printing - 116 - 39 1,200 - 0.00% 100.00%- (1,200) - -100.00%
5916 Dues & Memberships 33,463 31,936 36,588 33,996 38,173 27,376 71.71% 76.30% 36,445 (1,728) 40,300 5.57%
5917 Amortization Exp.(920,647) (1,805,446) (1,490,744) (1,405,612) (217,080) (166,433) 76.67% 49.98% (1,490,744) (1,273,664) (172,836) -20.38%
5918 PRWUA - - - - 4,094,023 3,928,436 95.96% 0.00% 4,032,840 (61,183) 4,244,885 3.68%
Other Expenses 20,088,234 17,194,653 21,462,536 19,581,809 22,326,144 12,758,820 57.15%21,987,179 (338,965) 25,189,798 12.83%
Total Expenses 32,954,758 32,089,419 36,266,110 33,770,095 39,555,693 20,369,455 51.50%38,229,647 (1,326,046) 44,002,536 11.24%
Excluding personnel (P) costs 25,433,360 24,287,820 27,814,352 25,845,179 30,060,480 33,666,053 11.99%
Excluding interest (I) costs 24,473,199 26,113,976 30,549,544 27,045,572 35,120,953 37,085,888 5.59%
Excluding depreciation (D) and
amortization (A) 22,233,893 21,173,751 26,709,367 24,281,034 28,574,773 33,057,372 15.69%
Excluding I, D, and A 13,752,333 15,198,308 20,992,801 17,556,511 24,140,033 26,140,724 8.29%
Excluding P, I, D, and, A 6,230,935 7,396,709 12,541,043 9,631,595 14,644,820 15,804,241 7.92%
TOTAL DISTRICT ROUTINE OPERATIONS AND MAINTENANCE EXPENDITURES
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 005
Last Update:
03/28/23
Account Description
Actual
FY 2020
Actual
FY 2021
Actual
FY 2022
3-Year
Average
(FY 2020-2022)
Budget
FY 2023
Actual
12/31/2022
% of Total
Spent YTD
FY 2023
% of Total
Spent YTD
3-year
average
Projected
Spend
FY 2023
Projected
Spend to
Budget
over/(under)
for FY 2023
Budget
FY 2024
% Change
from
FY 2023
Budget
5110 Salary & Wage Exp.594,480 621,100 650,331 621,970 682,706 309,057 45.27% 44.94% 684,949 2,243 952,518 39.52%
5120 Overtime 108 301 337 249 - 244 N/A 30.73%244 244 673 N/A
5131 Sick Leave - - - - - - N/A 0.00%- - - N/A
5160 Vehicle Allowance - - - - - N/A 0.00%- - - N/A
5170 On Call Pay - - - - - - N/A 0.00%- - - N/A
5190 Other - - - - - - N/A 0.00%- - - N/A
5210 Payroll Taxes 42,759 45,187 47,312 45,086 49,475 21,410 43.27% 43.62% 49,303 (172) 69,228 39.93%
Salaries and Wages 637,347 666,588 697,980 667,305 732,181 330,711 45.17%734,496 2,315 1,022,419 39.64%
5310 Retirement Plan 119,986 126,573 133,124 126,561 140,893 68,201 48.41% 48.85% 140,270 (623) 192,601 36.70%
5320 Medical Insurance Premiums 127,545 118,374 118,329 121,416 120,355 56,259 46.74% 49.50% 117,039 (3,316) 156,319 29.88%
5330 Tuition Aid Program - - - - - - N/A 0.00%- - - N/A
5350 Insurance Premiums 5,683 5,024 4,143 4,950 5,188 2,163 41.69% 52.00%4,654 (534) 6,320 21.82%
Employee Benefits 253,214 249,971 255,596 252,927 266,436 126,623 47.52%261,963 (4,473) 355,240 33.33%
5340 Meetings & Seminars 8,205 4,302 8,563 7,023 7,525 7,559 100.45% 44.68% 11,722 4,197 10,400 38.21%
Employee Training 8,205 4,302 8,563 7,023 7,525 7,559 100.45%11,722 4,197 10,400 38.21%
5410 Business Travel 13,684 5,187 18,232 12,368 29,350 6,271 21.36% 33.06% 25,919 (3,431) 31,150 6.13%
5430 Vehicle O & M 615 49 149 271 410 150 36.55% 55.19%334 (76) 295 -28.11%
Transportation 14,299 5,236 18,381 12,639 29,760 6,421 21.58%26,253 (3,507) 31,445 5.66%
5510 Legal 255,465 212,709 342,978 270,384 300,000 123,280 41.09% 42.46% 295,893 (4,107) 396,000 32.00%
5520 Accounting 37,068 37,078 47,128 40,425 40,500 45,922 113.39% 80.96% 53,631 13,131 53,000 30.86%
5530 Contract Services 137,879 987,784 133,566 419,743 167,645 67,202 40.09% 48.18% 154,077 (13,568) 171,090 2.05%
5540 Other - - - - - - N/A 0.00%- - - N/A
Professional Services 430,412 1,237,571 523,672 730,552 508,145 236,404 46.52%503,601 (4,544) 620,090 22.03%
5610 Telephone 2,220 2,220 2,700 2,380 2,820 1,350 47.87% 50.00%2,460 (360) 3,360 19.15%
5620 Electricity - - - - - - N/A 0.00%- - - N/A
5630 Natural Gas - - - - - - N/A 0.00%- - - N/A
5640 Radio Communications - - - - - - N/A 0.00%- - - N/A
5650 Water - - - - - - N/A 0.00%- - - N/A
Utilities 2,220 2,220 2,700 2,380 2,820 1,350 47.87%2,460 (360) 3,360 19.15%
5710 Buildings & Grounds - - - - - - N/A 0.00%- - - N/A
5720 Machinery & Equipment - - - - - 935 N/A 0.00%935 935 - N/A
Repairs and Maintenance - - - - - 935 N/A 935 935 - N/A
5810 General Supplies 5,548 1,073 2,776 3,132 3,000 566 18.85% 93.59%758 (2,242) 2,500 -16.67%
5820 Office Supplies 11,595 9,484 11,323 10,801 10,200 7,795 76.43% 60.48% 11,826 1,626 11,100 8.82%
5830 Materials - - - - - - N/A 0.00%- - - N/A
5840 Chemicals - - - - - - N/A 0.00%- - - N/A
5850 Computer & Instr. Supplies - - - - - - N/A 0.00%- - - N/A
Chemicals and Supplies 17,143 10,557 14,099 13,933 13,200 8,361 63.34%12,584 (616) 13,600 3.03%
5901 General Insurance - - - - - - N/A 0.00%- - - N/A
5902 Administrative Fees - - - - - - N/A 0.00%- - - N/A
5903 Water Stock Assessment - - - - - - N/A 0.00%- - - N/A
5904 Rent Exp.- - - - - - N/A 0.00%- - - N/A
5905 Miscellaneous 20,865 29,248 27,574 25,896 29,725 10,570 35.56% 31.41% 32,958 3,233 36,625 23.21%
5906 Postage & Freight Exp.3,035 3,607 3,197 3,280 3,300 1,483 44.95% 47.97%3,201 (99) 3,600 9.09%
5907 Contributions and Events 118,558 162,995 126,493 136,016 172,400 127,674 74.06% 2.40% 295,940 123,540 177,800 3.13%
5909 Depreciation Exp.- - - - - - N/A 0.00%- - - N/A
5910 Interest Exp.- - - - - - N/A 0.00%- - - N/A
5911 Laundry 516 982 1,429 976 3,000 3,431 114.38% 45.46%5,068 2,068 1,000 -66.67%
5913 Safety 183 - 36 73 - - N/A 0.00%- - 125 N/A
5914 Subscriptions & Publications 679 645 862 729 1,555 529 33.99% 1.37%2,062 507 1,405 -9.65%
5915 Outside Printing - - - - - - N/A 0.00%- - - N/A
5916 Dues & Memberships 2,008 2,578 2,498 2,361 2,383 1,103 46.30% 43.51%2,450 67 2,748 15.32%
5917 Amortization Expense - - - - - - N/A 0.00%- - - N/A
5918 PRWUA - - - - - - N/A 0.00%- - - N/A
Other Expenses 145,844 200,055 162,089 169,331 212,363 144,790 68.18%341,679 129,316 223,303 5.15%
Total Expenses 1,508,684 2,376,500 1,683,080 1,856,090 1,772,430 863,154 48.70% 1,895,693 123,263 2,279,857 28.63%
Excluding personnel costs 773,813 902,198 16.59%
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
ADMINISTRATIVE (10)
2 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 006
Cost Center Name: Administrative (10)
Last Update:
03/28/23
Account Number Account Name Description Submitted by: Units Quantity Unit Price Extended Amount
5110 Salary and Wage Expense Salary and wages (7 FTEs)Pay Period 26 36,635$ 952,518$
5110 Total 952,518$
5120 Overtime Premium Overtime premium Pay Period 26 26$ 673$
5131 Total 673$
5210 Payroll Taxes Employer Portion of Payroll Taxes Pay Period 26 2,663$ 69,228$
5210 Total 69,228$
5310 Retirement Plan URS (Utah Retirement Systems) Contribution and Employer Match Pay Period 26 7,408$ 192,601$
5310 Total 192,601$
5320 Medical Insurance Premiums Insurance premiums (Medical, Dental, Vision, and HSA Contribution) Monthly 12 13,027$ 156,319$
5320 Total 156,319$
5350 Insurance Premiums Health Savings Admin Fee Annalee Munsey Monthly 12 150$ 1,799$
5350 Insurance Premiums AD&D, Basic Life, Long Term Disability, etc.Annalee Munsey Monthly 12 377$ 4,520$
5350 Total 6,320$
5340 Meetings & Seminars Administrative Training Annalee Munsey Each 1 3,100$ 3,100$
5340 Meetings & Seminars Meeting Refreshments Annalee Munsey Each 12 60$ 720$
5340 Meetings & Seminars Healthy Utah refreshments Sonya Shepherd Each 12 130$ 1,560$
5340 Meetings & Seminars Annual Water Summit sponsorship & 3 registrations Annalee Munsey Each 1 650$ 650$
5340 Meetings & Seminars Utah Water Users Workshop sponsorship & 1 registration Annalee Munsey Each 1 375$ 375$
5340 Meetings & Seminars Utah Water Law Conference Annalee Munsey Each 1 645$ 645$
5340 Meetings & Seminars Business Meetings Annalee Munsey Each 1 1,000$ 1,000$
5340 Meetings & Seminars District Lunches Annalee Munsey Each 1 2,200$ 2,200$
5340 Meetings & Seminars Operator Certification renewals Annalee Munsey Each 1 150$ 150$
5340 Total 10,400$
5410 Business Travel AWWA Intermountain Section Annalee Munsey Each 3 1,500$ 4,500$
5410 Business Travel AWWA Annual Conference Annalee Munsey Each 2 3,500$ 7,000$
5410 Business Travel Utah Association of Special Districts Annalee Munsey Each 2 500$ 1,000$
5410 Business Travel National Water Resources Association (NWRA) Annual Conference Annalee Munsey Each 1 2,250$ 2,250$
5410 Business Travel NWRA Federal Water Issues Conference Annalee Munsey Each 0 3,000$ -$
5410 Business Travel Colorado River Water Users Association Annalee Munsey Each 2 1,700$ 3,400$
5410 Business Travel Water Quality Technology Conference Annalee Munsey Each 1 2,500$ 2,500$
5410 Business Travel Utah Water Users Workshop Annalee Munsey Each 5 1,400$ 7,000$
5410 Business Travel Human Resources Conference Annalee Munsey Each 1 3,500$ 3,500$
5410 Business Travel GFOA Conference Annalee Munsey Each 0 3,000$ -$
5410 Total 31,150$
5430 Vehicle O&M Mileage reimbursement Annalee Munsey Miles 450 0.66$ 295$
5430 Total 295$
5510 Legal General Counsel Mike DeVries Monthly 12 33,000$ 396,000$
5510 Total 396,000$
5520 Accounting Annual audit-contract amount (Year 2 of 5)Annalee Munsey Lump sum 1 16,000$ 16,000$
5520 Accounting Payroll & timekeeping outsourcing Annalee Munsey Lump sum 1 23,000$ 23,000$
5520 Accounting Accountant consultation work (Year 4 of 5)Annalee Munsey Lump sum 1 14,000$ 14,000$
5520 Total 53,000$
5530 Contract Services Motor Vehicle Record requests Annalee MunseyEach 72 3.30$ 238$
5530 Contract Services Federal Random Consortium Pool Annual Fee (for CDL holders)Annalee Munsey Annual 1 180.00$ 180$
5530 Contract Services Drug Screening--random and pre-employment Annalee Munsey Each 12 50.00$ 600$
5530 Contract Services New Hire background checks Annalee Munsey Each 5 44.00$ 220$
5530 Contract Services Investment advisor fees (year 3 of 5)Mike DeVries Monthly 12 1,875$ 22,500$
5530 Contract Services Bond post-issue compliance (continuing disclosure)Mike DeVries Annual 1 1,000$ 1,000$
5530 Contract Services 2015A Bond trustee fee (ends April 2034)Annalee Munsey Each 1 2,100$ 2,100$
5530 Contract Services 2016A Bond trustee fee (ends May 2031)Annalee Munsey Each 1 3,000$ 3,000$
5530 Contract Services 2020A Bond trustee fee (ends July 2037)Annalee Munsey Each 1 3,000$ 3,000$
5530 Contract Services 2021A/B Bond trustee fee (ends July 2036)Annalee Munsey Each 1 5,000$ 5,000$
5530 Contract Services Arbitrage rebate analysis Annalee Munsey Lump sum 1 800$ 800$
5530 Contract Services Governmental relations/lobbying Mike DeVries Monthly 12 7,334$ 88,008$
5530 Contract Services Public relations/public involvement consulting services Annalee Munsey Lump sum 1 4,000$ 4,000$
5530 Contract Services Financial consulting services (year 5 of 5)Mike DeVries Lump sum 1 5,000$ 5,000$
5530 Contract Services Records management Annalee Munsey Lump sum 1 900$ 900$
5530 Contract Services Temp services (3 months for Admin)Annalee Munsey Lump sum 1 8,750$ 8,750$
5530 Contract Services Formal interal audit Annalee Munsey Lump sum 1 22,000$ 22,000$
5530 Contract Services Safety Data Sheets Online Service (year 1 of 3) Annalee Munsey Lump sum 1 3,794$ 3,794$
5530 Total 171,090$
5610 Telephone Mobile phone allowances (7)Mike DeVries Monthly 12 280$ 3,360$
5610 Total 3,360$
5810 General Supplies General Supplies Annalee Munsey Lump sum 1 2,500$ 2,500$
5810 Total 2,500$
5820 Office Supplies General Office Supplies Annalee Munsey Monthly 12 925$ 11,100$
5820 Total 11,100$
5905 Miscellaneous Service Awards Sonya Shepherd Each 15 800$ 12,000$
5905 Miscellaneous Job Postings Sonya Shepherd Each 5 249$ 1,245$
5905 Miscellaneous Job Fairs Sonya Shepherd Lump sum 1 500$ 500$
5905 Miscellaneous Wellness Program Sonya Shepherd Employee 73 260$ 18,980$
5905 Miscellaneous Employee Appreciation Sonya Shepherd Lump sum 1 1,000$ 1,000$
5905 Miscellaneous Non-employee gifts (sympathy, retirement, holiday)Annalee Munsey Lump sum 1 1,300$ 1,300$
5905 Miscellaneous Legal Notices Mike DeVries Each 2 800$ 1,600$
5905 Total 36,625$
5906 Postage & Freight Expense Postage metering Annalee Munsey Lump sum 1 3,600$ 3,600$
5906 Total 3,600$
5907 Contribution & Events Employee Summer Party Mike DeVries Lump sum 1 10,000$ 10,000$
5907 Contribution & Events Turkey/ham gift cards at Christmas Annalee Munsey Lump sum 80 30$ 2,400$
5907 Contribution & Events Employee Winter Party Mike DeVries Lump sum 1 10,000$ 10,000$
5907 Contribution & Events Governor's Water Conservation Team Annalee Munsey Lump sum 1 36,400$ 36,400$
5907 Contribution & Events Water Week Activities Annalee Munsey Lump sum 1 3,000$ 3,000$
5907 Contribution & Events Water Audits Annalee Munsey Lump sum 1 116,000$ 116,000$
5907 Total 177,800$
Fiscal Year 2024 General Expenditures Worksheet
3 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 007
Cost Center Name: Administrative (10)
Last Update:
03/28/23
Account Number Account Name Description Submitted by: Units Quantity Unit Price Extended Amount
Fiscal Year 2024 General Expenditures Worksheet
5911 Laundry Uniforms Annalee Munsey Lump sum 10 100$ 1,000$
5911 Total 1,000$
5913 Safety Safety shoes and safety glasses Annalee Munsey Lump sum 1 125$ 125$
5913 Total 125$
5914 Subscriptions & Publications Technet (Salary Review Service)Annalee Munsey Lump sum 1 350$ 350$
5914 Subscriptions & Publications Salary Surveys Annalee Munsey Each 3 285$ 855$
5914 Subscriptions & Publications Labor Law Posters Annalee Munsey Each 0 30$ -$
5914 Subscriptions & Publications Books Annalee Munsey Each 4 50$ 200$
5914 Total 1,405$
5916 Dues & Membership Human Resources Association (World at Work)Annalee Munsey Lump sum 2 265$ 530$
5916 Dues & Membership Employers Council Annalee Munsey Lump sum 1 1,600$ 1,600$
5916 Dues & Membership Society for Human Resource Management Annalee Munsey Lump sum 2 229$ 458$
5916 Dues & Membership Department of Profesional Licensing (PE)Annalee Munsey Lump sum 0 225$ -$
5916 Dues & Membership Government Finance Officers Association Annalee Munsey Lump sum 1 160$ 160$
5916 Total 2,748$
4 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 008
03/28/23
Account Description
Actual
FY 2020
Actual
FY 2021
Actual
FY 2022
3-Year
Average
(FY 2020-2022)
Budget
FY 2023
Actual
12/31/2022
% of Total
Spent YTD
FY 2022
% of Total
Spent YTD
3-year
average
Projected
Spend
FY 2023
Projected
Spend to
Budget
over/(under)
for FY 2023
Budget
FY 2024
% Change
from
FY 2023
Budget
5110 Salary & Wage Exp. - - - - - - N/A 0.00% - - - N/A
5120 Overtime Premium - - - - - - N/A 0.00% - - - N/A
5131 Sick Leave (11,062) (10,008) 10,443 (3,543) - - N/A 0.00%- - - N/A
5160 Vehicle Allowance - - - - - - N/A 0.00%- - - N/A
5170 On Call Pay - - - - - - N/A 0.00%- - - N/A
5190 Other 870 200 - 357 2,500 50 2.00% 84.11%447 (2,053) 2,500 0.00%
5210 Payroll Taxes - - - - - - N/A 0.00%- - - N/A
Salary and Wages (10,192) (9,808) 10,443 (3,186) 2,500 50 2.00%447 (2,053) 2,500 0.00%
5310 Retirement Plan - - - - - - N/A 0.00% - - - N/A
5320 Medical Insurance Premiums - - - - - - N/A 0.00% - - - N/A
5330 Tuition Aid Program 19,209 9,192 12,506 13,635 20,000 772 3.86% 30.74% 14,625 (5,375) 37,000 85.00%
5350 Insurance Premiums - - - - - - N/A 0.00% - - - N/A
Employee Benefits 19,209 9,192 12,506 13,635 20,000 772 3.86%14,625 (5,375) 37,000 85.00%
5340 Meetings & Seminars 1,828 322 1,463 1,205 2,680 343 12.79% 34.02% 2,111 (569) 2,080 -22.39%
Employee Training 1,828 322 1,463 1,205 2,680 343 12.80%2,111 (569) 2,080 -22.39%
5410 Business Travel - - - - - - N/A 0.00% - - - N/A
5430 Vehicle O & M 48,519 47,106 54,200 49,941 75,400 36,694 48.67% 52.83% 72,261 (3,139) 56,250 -25.40%
Transportation 48,519 47,106 54,200 49,941 75,400 36,694 48.67%72,261 (3,139) 56,250 -25.40%
5510 Legal - - - - - - N/A 0.00% - - - N/A
5520 Accounting - - - - - - N/A 0.00% - - - N/A
5530 Contract Services 629,754 806,328 583,933 673,338 773,045 570,567 73.81% 83.01%701,872 (71,173) 812,133 5.06%
5540 Other 499 234 1,940 891 5,000 2,024 40.48% 1.20% 6,964 1,964 6,000 20.00%
Professional Services 630,253 806,562 585,873 674,229 778,045 572,591 73.59%708,836 (69,209) 818,133 5.15%
5610 Telephone 8,087 8,299 8,052 8,146 9,451 4,024 42.58% 50.10% 8,740 (711) 9,451 0.00%
5620 Electricity 674,215 1,261,983 1,113,183 1,016,460 1,486,850 485,946 32.68% 50.99% 1,214,652 (272,198) 1,437,405 -3.33%
5630 Natural Gas 177,515 239,189 418,675 278,460 314,100 198,470 63.19% 27.42%426,434 112,334 450,750 43.51%
5640 Radio Communications - - - - - - N/A 0.00%- - - N/A
5650 Water 19,884 20,430 13,384 17,900 22,596 7,069 31.29% 52.85% 17,724 (4,872) 18,858 -16.54%
Utilities 879,701 1,529,901 1,553,294 1,320,966 1,832,997 695,509 37.94% 1,667,550 (165,447) 1,916,464 4.55%
5710 Buildings & Grounds - - - - - - N/A 0.00% - - - N/A
5720 Machinery & Equipment 810 - 1,580 797 860 - 0.00% 69.87% 259 (601) 935 8.72%
Repairs and Maintenance 810 - 1,580 797 860 - 0.00%259 (601) 935 8.72%
5810 General Supplies - - - - - - N/A 0.00% - - - N/A
5820 Office Supplies - - - - - - N/A 0.00% - - - N/A
5830 Materials - - - - - 840 N/A 0.00% 840 840 - N/A
5840 Chemicals - 17 - 6 - - N/A 0.00% - - - N/A
5850 Computer & Instr. Supplies - - - - - - N/A 0.00% - - - N/A
Chemicals and Supplies - 17 - 6 - 840 N/A 840 840 - N/A
5901 General Insurance 558,663 637,726 685,396 627,262 813,934 414,077 50.87% 50.02%820,894 6,960 953,692 17.17%
5902 Administrative Fees 864,446 1,035,315 5,081,011 2,326,924 1,464,360 29,530 2.02% 0.77% 1,482,610 18,250 1,586,700 8.35%
5903 Water Stock Assessment 923 2,072 1,617 1,537 22,348 50 0.22% 15.04% 19,036 (3,312) 22,355 0.03%
5904 Rent Exp.- - - - - - N/A 0.00%- - - N/A
5905 Miscellaneous 46,947 43,247 47,207 45,801 46,704 21,447 45.92% 51.63% 44,036 (2,668) 46,704 0.00%
5906 Postage & Freight Exp.- - - - - - N/A 0.00%- - - N/A
5907 Contributions & Events 100,000 100,000 115,000 105,000 115,000 115,000 100.00% 0.00% 230,000 115,000 115,000 0.00%
5909 Depreciation Expense 10,720,865 10,915,668 11,047,487 10,894,673 11,198,000 5,587,892 49.90% 50.40% 11,142,065 (55,935) 11,118,000 -0.71%
5910 Interest Expense 8,481,559 5,975,443 5,716,566 6,724,523 4,434,740 2,624,870 59.19% 50.51% 5,249,740 815,000 6,916,648 55.97%
5911 Laundry - - - - - - N/A 0.00%- - - N/A
5913 Safety 18,990 24,342 19,817 21,050 19,355 9,310 48.10% 53.26% 18,357 (998) 20,900 7.98%
5914 Subscriptions & Publications 258 945 251 484 660 - 0.00% 58.65%273 (387) 740 12.12%
5915 Outside Printing - - - - - - N/A 0.00%- - - N/A
5916 Dues & Memberships 30,150 27,935 32,849 30,311 32,705 25,918 79.25% 80.85% 32,182 (523) 35,092 7.30%
5917 Amortization Exp.(920,647) (1,805,446) (1,490,744) (1,405,612) (217,080) (166,433) 76.67% 49.98% (1,490,744) (1,273,664) (172,836) -20.38%
5918 PRWUA - - - - 4,094,023 3,928,436 95.96% 0.00% 4,032,840 (61,183) 4,244,885 3.68%
Other Expenses 19,902,154 16,957,247 21,256,457 19,371,953 22,024,749 12,590,097 57.16%21,581,289 (443,460) 24,887,880 13.00%
Total Expenses 21,472,282 19,340,539 23,475,816 21,429,546 24,737,231 13,896,896 56.18%24,048,218 (689,013) 27,721,242 12.06%
Excluding personnel costs 24,714,731 27,681,742 12.01%
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
GENERAL (20)
Last Update:
5 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 009
Cost Center Name: General (20)
Last Update:
03/28/23
Account Number Account Name Description Submitted by: Units Quantity Unit Price Extended Amount
5190 Other Employee suggestions (General & Safety)Mike DeVries Lump sum 1 2,500$ 2,500$
5190 Total 2,500$
5330 Tuition Aid Program Tuition Assistance Mike DeVries Lump sum 1 37,000$ 37,000$
5330 Total 37,000$
5340 Meetings & Seminars District training Annalee Munsey Monthly 12 110$ 1,320$
5340 Meetings & Seminars Safety committee inspections Annalee Munsey Quarterly 4 90$ 360$
5340 Meetings & Seminars Utah Safety Conference Annalee Munsey Each 2 200$ 400$
5340 Total 2,080$
5430 Vehicle O&M Fleet Vehicles (Gasoline)Wayne Winsor Gallons 125004.00$ 50,000$
5430 Vehicle O&M Fleet Vehicles (Diesel)Wayne Winsor Gallons 1500 2.50$ 3,750$
5430 Vehicle O&M Specialty Vehicles (Diesel)Wayne Winsor Gallons 1000 2.50$ 2,500$
5430 Total 56,250$
5530 Contract Services Jordan Aqueduct O&M by JVWCD Mike DeVries AF 12,826 23.15$ 296,922$
5530 Contract Services JVWTP operations by JVWCD Mike DeVries AF 1,400 42.57$ 59,598$
5530 Contract Services JVWTP maintenance by JVWCD Mike DeVries Lump sum 1 278,730$ 278,730$
5530 Contract Services Jordan Aqueduct Terminal Reservoir operations by JVWCD Mike DeVries AF 13,000 1.40$ 18,200$
5530 Contract Services Jordan Aqueduct Terminal Reservoir maintenance by JVWCD Mike DeVries Lump sum 1 45,966$ 45,966$
5530 Contract Services 150th South Pipeline operations by JVWCD Mike DeVries AF 10,800 1.48$ 15,984$
5530 Contract Services 150th South Pipeline maintenance by JVWCD Mike DeVries Lump sum 1 42,225$ 42,225$
5530 Contract Services Non-CUP water carriage charge in JA Mike DeVries AF 1,500 9.00$ 13,498$
5530 Contract Services Olmstead power interference charge Mike DeVries AF 280 23.50$ 6,580$
5530 Contract Services DACRWTP transfer pump cost Mike DeVries AF 300 15.00$ 4,500$
5530 Contract Services Water Softeners/De-ionized Water (service and repair)Wayne Winsor Monthly 12 1,200$ 14,400$
5530 Contract Services Garbage Removal Wayne Winsor Monthly 12 395$ 4,740$
5530 Contract Services Learning Management System online service Annalee Munsey Monthly 12 268$ 3,216$
5530 Contract Services Safety Training online service Annalee Munsey Monthly 1 4,824$ 4,824$
5530 Contract Services Harmful Algal Bloom sampling Mike DeVries Lump sum 1 2,750$ 2,750$
5530 Total 812,133$
5540 Other Employee Development Annalee Munsey Lump sum 1 1,000$ 1,000$
5540 Other Management/Leadership Training Annalee Munsey Lump sum 1 5,000$ 5,000$
5540 Total 6,000$
5610 Telephone T1 PRI for District phone lines Ryan Nicholes Monthly 12 400$ 5,592$
5610 Telephone Long Distance Services for T1 Ryan Nicholes Monthly 1223$ 276$
5610 Telephone Phone number DIDs Ryan Nicholes Monthly 12 85$ 1,015$
5610 Telephone LCWTP Ozone Building phone lines and long distance Ryan Nicholes Monthly 12 85$ 1,020$
5610 Telephone JNPS phone line Ryan Nicholes Monthly 12 43$ 516$
5610 Telephone POMWTP backup phone lines Ryan Nicholes Monthly 12 86$ 1,032$
5610 Total 9,451$
5620 Electricity Aqueducts Ryan Nicholes Monthly 12 $628.08 7,537$
5620 Electricity Finished water reservoirs Ryan Nicholes Monthly 12 $1,555.00 18,660$
5620 Electricity Salt Lake Aqueduct intake Ryan Nicholes Monthly 12 $1,315.75 15,789$
5620 Electricity Jordan Narrows Pump Station Ryan Nicholes Monthly 6 80,000$ 480,000$
5620 Electricity Point of the Mountain site Ryan Nicholes Monthly 12 35,952$ 431,423$
5620 Electricity Little Cottonwood site Ryan Nicholes Monthly 12 39,958$ 479,496$
5620 Electricity POMWTP Standby Generator (Diesel)Wayne Winsor Gallons 1000 2.00$ 2,000$
5620 Electricity LCWTP Standby Generator (Diesel)Wayne Winsor Gallons 1000 2.50$ 2,500$
5620 Total 1,437,405$
5630 Natural Gas Dominion - Point of the Mountain Site Wayne Winsor Monthly 12 2,500$ 30,000$
5630 Natural Gas Dominion - Little Cottonwood Site/Terminal Reservoir Wayne Winsor Monthly 12 4,500$ 54,000$
5630 Natural Gas BP Gas Wayne Winsor Monthly 12 30,000$ 360,000$
5630 Natural Gas LCWTP Boiler (Diesel)Wayne Winsor Gallons 3000 2.25$ 6,750$
5630 Total 450,750$
5650 Water Salt Lake City Wayne Winsor Monthly 12 100$ 1,200$
5650 Water Cottonwood Improvement District Wayne Winsor Quarterly 4 600$ 2,400$
5650 Water Mt. Olympus Improvement District (sanitary sewer @ Terminal Reservoir)Wayne Winsor Bi-monthly 6 45$ 270$
5650 Water Draper City (storm drain fee)Wayne Winsor Monthly 12 749$ 8,988$
5650 Water South Valley Sewer Wayne Winsor Monthly 12 500$ 6,000$
5650 Total 18,858$
5720 Machinery & Equipment Fit test annual recalibration Annalee Munsey Lump sum 1 935$ 935$
5720 Machinery & Equipment Equipment repairs Annalee Munsey Lump sum0-$ -$
5720 Total 935$
5901 General Insurance Liability package (incl.General, Auto, Public Officials/Management, Cyber, Umbrella) Annalee Munsey Lump sum 1 140,186$ 140,186$
5901 General Insurance Property Annalee Munsey Lump sum 1 713,332$ 713,332$
5901 General Insurance Workers compensation Annalee Munsey Lump Sum 1 37,924$ 37,924$
5901 General Insurance Pollution/environmental liability (year 1 of 3)Annalee Munsey Lump sum 1 48,000$ 48,000$
5901 General Insurance Employee dishonesty/Crime Annalee Munsey Lump sum 1 2,100$ 2,100$
5901 General Insurance Identity fraud (year 2 of 3)Annalee Munsey Lump sum 0 250$ -$
5901 General Insurance Public officials bond--Treasurer (year 1 of 3)Annalee Munsey Lump sum 1 12,150$ 12,150$
5901 Total 953,692$
5902 Administrative Fees Utah Lake Water Users Association Mike DeVries Monthly 12 7,100$ 85,200$
5902 Administrative Fees Central Utah Project Water Mike DeVries Acre feet 23100 65.00$ 1,501,500$
5902 Total 1,586,700$
5903 Water Stock Assessment Big Ditch Irrigation Company Mike DeVries Shares 192.6 107.50$ 20,705$
5903 Water Stock Assessment Big Cottonwood Lower Canal Company Mike DeVries Shares 20.64 27$ 566$
5903 Water Stock Assessment State Engineer Little Cottonwood Creek distribution assessment Mike DeVries Each 1 80$ 80$
5903 Water Stock Assessment State Engineer Provo River distribution assessment Mike DeVries Each 1 903$ 903$
5903 Water Stock Assessment Sandy Irrigation Company Mike DeVries Shares 2 8$ 16$
5903 Water Stock Assessment Utah Lake Distributing Company Mike DeVries Shares 1 50$ 50$
5903 Water Stock Assessment Bell Canyon Irrigation Company Mike DeVries Shares 1 35$ 35$
5903 Total 22,355$
Fiscal Year 2024 General Expenditures Worksheet
6 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 010
Cost Center Name: General (20)
Last Update:
03/28/23
Account Number Account Name Description Submitted by: Units Quantity Unit Price Extended Amount
Fiscal Year 2024 General Expenditures Worksheet
5905 Miscellaneous Water Quality Incentive Awards Annalee Munsey Lump sum 1 16,000$ 16,000$
5905 Miscellaneous Board Member Pay and retirement contribution Annalee Munsey Per Member 6 5,117$ 30,704$
5905 Total 46,704$
5907 Contribution & Events Provo River Watershed Council (year 1 of 5 at $100,000 per year)Mike DeVries Lump sum 1 100,000$ 100,000$
5907 Contribution & Events Central Wasatch Commission Annalee Munsey Lump sum 1 15,000$ 15,000$
5907 Total 115,000$
5909 Depreciation Expense Depreciation of Capital Assets Josh Croft Monthly 12 926,500$ 11,118,000$
5909 Total 11,118,000$
5910 Interest Expense 2015 bonds Annalee Munsey Lump sum 1 157,800$ 157,800$
5910 Interest Expense 2016A bonds Annalee Munsey Lump sum 1 1,958,950$ 1,958,950$
5910 Interest Expense 2020A bonds Annalee Munsey Lump sum 1 850,897$ 850,897$
5910 Interest Expense 2021A/B bonds Annalee Munsey Lump sum 1 2,199,001$ 2,199,001$
5910 Interest Expense 2023A bonds (tentative)Annalee Munsey Lump sum 1 1,750,000$ 1,750,000$
5910 Total 6,916,648$
5913 Safety Safety Incentive program Annalee Munsey Lump sum 1 12,000$ 12,000$
5913 Safety Medical Clearance for respirator Annalee Munsey Each 25 70$ 1,750$
5913 Safety First Aid supplies Annalee Munsey Monthly 12 120$ 1,440$
5913 Safety AED battery replacements Annalee Munsey Each 10 150$ 1,500$
5913 Safety Safety supplies (ear plugs, gas cans, eyewash, respirator cleaning wipes)Annalee Munsey Lump sum 1 440$ 440$
5913 Safety Absorbent materials Annalee Munsey Lump sum 0 1,200$ -$
5913 Safety National Safety Month Annalee Munsey Lump sum 1 1,800$ 1,800$
5913 Safety Books & training videos Annalee Munsey Lump sum 2 500$ 1,000$
5913 Safety Unified Fire Authority--hazmat permits Matt Tietje Lump sum 1 970$ 970$
5913 Total 20,900$
5914 Subscriptions & Publications AWWA Standards Annalee Munsey Lump sum 1 400$ 400$
5914 Subscriptions & Publications JJ Keller OSHA 1910 Regulations (Prepaid 3 years - year 3)Annalee Munsey Lump sum 0 499$ -$
5914 Subscriptions & Publications SL Tribune online subscription Annalee Munsey Lump sum 1 80$ 80$
5914 Subscriptions & Publications National Safety Council Safety Magazine Annalee Munsey Lump sum 1 260$ 260$
5914 Total 740$
5916 Dues & Membership Utah Water Users Association Annalee Munsey Lump sum 1 500$ 500$
5916 Dues & Membership Utah Association of Special Districts Annalee Munsey Lump sum 1 13,043$ 13,043$
5916 Dues & Membership Warehouse shopping accounts Annalee Munsey Lump sum 1 180$ 180$
5916 Dues & Membership Amazon business prime membership Annalee Munsey Lump sum 1 499$ 499$
5916 Dues & Membership Partnership for Safe Water Annalee Munsey Lump sum 1 1,850$ 1,850$
5916 Dues & Membership National Safety Council Annalee Munsey Lump sum 1 495$ 495$
5916 Dues & Membership Utah Safety Council Annalee Munsey Lump sum 1 250$ 250$
5916 Dues & Membership AWWA District Membership Annalee Munsey Lump sum 1 400$ 400$
5916 Dues & Membership Intermountain Section AWWA partnership program Annalee Munsey Lump sum 1 4,200$ 4,200$
5916 Dues & Membership Utah Water Conservation Forum Annalee Munsey Lump sum 1 300$ 300$
5916 Dues & Membership Water ISAC Annalee Munsey Lump sum 1 2,200$ 2,200$
5916 Dues & Membership Water Research Foundation Mike DeVries Lump sum 1 11,175$ 11,175$
5916 Total 35,092$
5917 Amortization Expense Amortization of costs and reoffering premiums associated with bonds Sonya Shepherd Monthly 12 (14,403)$ (172,836)$
5917 Total (172,836)$
5918 PRWUA Safety of Dams repayment (capital)Wayne Winsor shares 61900 1.99$ 123,181$
5918 PRWUA Provo River Aqueduct (2020B Bonds) Repayment (capital)Wayne Winsor Lump sum 1 1,247,000$ 1,247,000$
5918 PRWUA PRWUA O&M assessment Wayne Winsor shares 61900 21.88$ 1,354,372$
5918 PRWUA PRWUA capital assessment (capital)Wayne Winsor shares 61900 17.00$ 1,052,300$
5918 PRWUA Provo River Aqueduct O&M by PRWUA Wayne Winsor acre feet 22627.92 12.95$ 293,032$
5918 PRWUA Deer Creek Intake Station O&M by PRWUA Wayne Winsor Lump sum 1 175,000$ 175,000$
5918 Total 4,244,885$
7 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 011
02/24/23
Account Description
Actual
FY 2020
Actual
FY 2021
Actual
FY 2022
3-Year
Average
(FY 2020-2022)
Budget
FY 2023
Actual
12/31/2022
% of Total
Spent YTD
FY 2022
% of Total
Spent YTD
3-year
average
Projected
Spend
FY 2023
Projected
Spend to
Budget
over/(under)
for FY 2023
Budget
FY 2024
% Change
from
FY 2023
Budget
5110 Salary & Wage Exp.829,396 859,171 929,347 872,638 1,045,555 485,643 46.45% 45.57% 1,054,705 9,150 1,060,852 1.46%
5120 Overtime Premium 91,500 94,060 97,966 94,509 103,400 51,050 49.37% 49.47% 103,298 (102) 103,400 0.00%
5131 Sick Leave - - - - - - N/A 0.00%- - - N/A
5160 Vehicle Allowance - - - - - - N/A 0.00%- - - N/A
5170 On Call Pay 5,490 5,475 5,310 5,425 5,475 2,900 52.97% 47.28%5,786 311 - -100.00%
5190 Other - - - - - - N/A 0.00%- - - N/A
5210 Payroll Taxes 70,224 73,246 81,771 75,080 90,061 41,246 45.80% 46.20% 89,695 (366) 90,812 0.83%
Salaries and Wages 996,610 1,031,952 1,114,394 1,047,652 1,244,491 580,839 46.67%1,253,484 8,993 1,255,064 0.85%
5310 Retirement Plan 190,488 197,977 214,402 200,956 238,209 115,128 48.33% 49.48% 235,460 (2,749) 238,892 0.29%
5320 Medical Insurance Premiums 254,844 251,409 245,473 250,575 288,989 118,567 41.03% 47.61% 269,979 (19,010) 272,607 -5.67%
5330 Tuition Aid Program - - - - - - N/A 0.00%- - - N/A
5350 Insurance Premiums 7,121 6,990 7,338 7,150 8,143 3,885 47.72% 49.92%7,963 (180) 8,353 2.58%
Employee Benefits 452,453 456,376 467,213 458,681 535,341 237,580 44.38%513,402 (21,939) 519,852 -2.89%
5340 Meetings & Seminars 1,769 2,240 744 1,584 2,950 1,800 61.02% 83.51%2,286 (664) 3,475 17.80%
Employee Training 1,769 2,240 744 1,584 2,950 1,800 61.02%2,286 (664) 3,475 17.80%
5410 Business Travel 2,152 142 - 764 3,000 1,229 40.97% 86.05%1,648 (1,352) 2,900 -3.33%
5430 Vehicle O & M - 2,159 192 784 293 - 0.00% 98.38%5 (288) 328 11.77%
Transportation 2,152 2,301 192 1,548 3,293 1,229 37.32%1,653 (1,640) 3,228 -1.97%
5510 Legal - - - - - - N/A 0.00%- - - N/A
5520 Accounting - - - - - - N/A 0.00%- - - N/A
5530 Contract Services 65 - 65 43 - - N/A 0.00%- - - N/A
5540 Other - - - - - - N/A 0.00%- - - N/A
Professional Services 65 - 65 43 - - N/A - - - N/A
5610 Telephone 1,613 1,835 1,827 1,758 2,180 914 41.90% 47.79%2,052 (128) 3,100 42.20%
5620 Electricity - - - - - - N/A 0.00%- - - N/A
5630 Natural Gas - - - - - - N/A 0.00%- - - N/A
5640 Radio Communications - - - - - - N/A 0.00%- - - N/A
5650 Water - - - - - - N/A 0.00%- - - N/A
Utilities 1,613 1,835 1,827 1,758 2,180 914 41.93%2,052 (128) 3,100 42.20%
5710 Buildings & Grounds - - - - - - N/A 0.00%- - - N/A
5720 Machinery & Equipment 33 5,789 1,767 2,530 800 - 0.00% 10.35%717 (83) 6,000 650.00%
Repairs and Maintenance 33 5,789 1,767 2,530 800 - 0.00% 717 (83) 6,000 650.00%
5810 General Supplies 201 - 318 173 1,500 867 57.81% 82.25%1,133 (367) 1,500 0.00%
5820 Office Supplies - - - - - - N/A 0.00%- - - N/A
5830 Materials 1,248 1,305 2,050 1,534 2,511 - 0.00% 17.07%2,082 (429) 2,546 1.39%
5840 Chemicals 1,787,052 1,661,392 1,585,268 1,677,904 2,288,825 1,064,002 46.49% 59.01% 2,002,148 (286,677) 2,585,805 12.98%
5850 Computer & Instr. Supplies - - - - - - N/A 0.00%- - - N/A
Chemicals and Supplies 1,788,501 1,662,697 1,587,636 1,679,611 2,292,836 1,064,869 46.44%2,005,363 (287,473) 2,589,851 12.95%
5901 General Insurance - - - - - - N/A 0.00%- - - N/A
5902 Administrative Fees - - - - - - N/A 0.00%- - - N/A
5903 Water Stock Assessment - - - - - - N/A 0.00%- - - N/A
5904 Rent Exp.- - - - - - N/A 0.00%- - - N/A
5905 Miscellaneous - - - - - - N/A 0.00%- - - N/A
5906 Postage & Freight Exp.- - - - - - N/A 0.00%- - - N/A
5907 Contributions & Events - - - - - - N/A 0.00%- - - N/A
5909 Depreciation Expense - - - - - - N/A 0.00%- - - N/A
5910 Interest Expense - - - - - - N/A 0.00%- - - N/A
5911 Laundry 1,688 2,331 1,586 1,868 2,264 740 32.68% 67.80%1,469 (795) 2,264 0.00%
5913 Safety 2,153 1,808 2,483 2,148 3,504 1,257 35.88% 43.14%3,249 (255) 3,697 5.51%
5914 Subscriptions & Publications 205 112 110 142 300 - 0.00% 78.54%64 (236) 300 0.00%
5915 Outside Printing - - - - - - N/A 0.00%- - - N/A
5916 Dues & Memberships - - - - - - N/A 0.00%- - - N/A
5917 Amortization Exp.- - - - - - N/A 0.00%- - - N/A
5918 PRWUA - - - - - - N/A 0.00%- - - N/A
Other Expenses 4,046 4,251 4,179 4,158 6,068 1,997 32.91%4,782 (1,286) 6,261 3.18%
Total Expenses 3,247,242 3,167,441 3,178,017 3,197,565 4,087,959 1,889,228 46.21% 3,783,739 (304,220) 4,386,831 7.31%
Excluding personnel costs 2,308,127 2,611,915 13.16%
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
OPERATIONS (22)
Last Update:
8 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 012
Cost Center Name: Operations (22)
Last Update:
02/24/23
Account Number Account Name Description Units Quantity Unit Price Extended Amount
5110 Salary and Wage Expense Salary and wages (14 FTEs plus skill-based pay)Pay Period 26 40,802$ 1,060,852$
5110 Total 1,060,852$
5120 Overtime Premium Overtime premium Pay Period 26 3,977$ 103,400$
5120 Total 103,400$
5170 On Call Pay On Call Pay Day -$
5170 Total -$
5210 Payroll Taxes Employer Portion of Payroll Taxes Pay Period 26 3,493$ 90,812$
5210 Total 90,812$
5310 Retirement Plan URS (Utah Retirement Systems) Contribution and Employer Match Pay Period 26 9,188$ 238,892$
5310 Total 238,892$
5320 Medical Insurance Premiums Insurance premiums (Medical, Dental, Vision, and H.S.A. Contribution)Monthly 12 22,717$ 272,607$
5320 Total 272,607$
5350 Insurance Premiums AD&D, Basic Life, Long Term Disability, etc.Monthly 12 696$ 8,353$
5350 Total 8,353$
5340 Meetings & Seminars Operator Certification Renewals Each 8 150$ 1,200$
5340 Meetings & Seminars Operator Certification- new FTE Each 1 300$ 300$
5340 Meetings & Seminars Local Seminars Lump sum 1 1,600$ 1,600$
5340 Meetings & Seminars Meeting refreshments Lump sum 1 375$ 375$
5340 Total 3,475$
5410 Business Travel AWWA Intermountain Section Each 1 1,500$ 1,500$
5411 Business Travel Utah Water Users Workshop Each 1 1,400$ 1,400$
5410 Business Travel AWWA Webinars Lump sum 1 -$ -$
5410 Total 2,900$
5430 Vehicle O&M Mileage reimbursement Miles 500 0.66$ 328$
5430 Total 328$
5610 Telephone Cellular Phone Monthly 12 55$ 660$
5610 Telephone Mobile phone allowance (5)Monthly 12 186.67$ 2,240$
5610 Telephone Allowance for cell phone replacement/parts Lump sum 1 200$ 200$
5610 Total 3,100$
5720 Machinery & Equipment Equipment repairs Lump sum 1 800$ 800$
5720 Machinery & Equipment Bench Turbidimeter replacement (wet lab)Lump sum 1 5,200$ 5,200$
5720 Total 6,000$
5810 General Supplies Chair replacement Each 2 500$ 1,000$
5810 General Supplies Blinds and repairs for LCWTP control room Each 1 500$ 500$
5810 Total 1,500$
5830 Materials pH probes Each 2 150$ 300$
5830 Materials Variable volume pipettor Each 2 222$ 444$
5830 Materials DPD Chlorine Dispenser Each 2 101$ 202$
5830 Materials Miscellaneous laboratory supplies Lump sum 1 300$ 300$
5830 Materials Gloves Lump sum 1 600$ 600$
5830 Materials Kimwipes Lump sum 2 150$ 300$
5830 Materials Supplies for filter inspections Lump sum 1 400$ 400$
5830 Total 2,546$
5840 Chemicals Aluminum Chlorohydrate (POMWTP)Lbs. 284,935 0.462$ 131,640$
5840 Chemicals C 308P Cat-Floc (LCWTP) - totes Lbs. 176,935 0.790$ 139,779$
5840 Chemicals C 308P Cat-Floc (POMWTP) - bulk Lbs. 89,894 0.750$ 67,421$
5840 Chemicals A-6320 Anionic (POMWTP & LCWTP)) - totes Lbs. 7,551 2.040$ 15,404$
5840 Chemicals Chlorine (LCWTP)Lbs. 378,000 1.00000$ 378,000$
5840 Chemicals Ferric Sulfate (LCWTP)Dry lbs. 1,880,951 0.3770$ 709,119$
5840 Chemicals Caustic Soda 50% (LCWTP)Dry lbs. 1,275,010 0.5500$ 701,256$
5840 Chemicals Fluoride (LCWTP & POMWTP)Wet. Lbs. 493,530 0.3590$ 177,177$
5840 Chemicals Lime, Bulk (LCWTP)Dry lbs. 185,405 0.126$ 23,361$
5840 Chemicals LOX (LCWTP & POMWTP)1000FTS 33,274 6.600$ 219,608$
5840 Chemicals T-Chlor (LCWTP & POMWTP)Drum 3,100 1.60$ 4,960$
5840 Chemicals Salt (POMWTP)Tons 118 101.220$ 11,944$
5840 Chemicals Salt (TR FWR)Lbs. 33,057 0.120$ 3,967$
5840 Chemicals DPD powder in glass bottles Each 6 93.300$ 560$
5840 Chemicals DPD powder packets Each 6 86.00$ 516$
5840 Chemicals pH Buffers Lump sum 9 57$ 513$
5841 Chemicals Ascorbic Acid Tablets Each 2 290$ 580$
5840 Total 2,585,805$
5911 Laundry Uniforms Lump sum 1 2,264$ 2,264$
5911 Total 2,264$
5913 Safety Safety Shoes/ Boots Each 13 125$ 1,625$
5913 Safety Gloves (Neoprene, etc.)Lump sum 1 330$ 330$
5913 Safety Safety glasses (prescription)Each 2 220$ 440$
5913 Safety PVC boots Each 3 77$ 231$
5913 Safety Acid bib overalls Each 2 33$ 66$
5913 Safety Acid coveralls Each 2 52$ 104$
5913 Safety Acid jacket Each 2 35$ 70$
5913 Safety Safety Harnesses Each 1 170$ 170$
5913 Safety Safety Goggles/glasses Lump sum 13 38$ 494$
5913 Safety PVC Suits (Chemical handling)Each 1 83$ 83$
5913 Safety Respirator Cartridges Each 3 28$ 84$
5913 Total 3,697$
5914 Subscriptions & Publications Subscriptions and Publications Lump sum 1 300$ 300$
5914 Total 300$
Fiscal Year 2024 General Expenditures Worksheet
9 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 013
02/23/23
Account Description
Actual
FY 2020
Actual
FY 2021
Actual
FY 2022
3-Year
Average
(FY 2020-2022)
Budget
FY 2023
Actual
12/31/2022
% of Total
Spent YTD
FY 2023
% of Total
Spent YTD
3-year
average
Projected
Spend
FY 2023
Projected
Spend to
Budget
over/(under)
for FY 2023
Budget
FY 2024
% Change
from
FY 2023
Budget
5110 Salary & Wage Exp.1,102,968 1,130,086 1,188,558 1,140,538 1,472,664 666,881 45.28% 46.50% 1,454,773 (17,891) 1,597,811 8.50%
5120 Overtime Premium 4,107 3,904 4,371 4,127 10,000 991 9.91% 29.52%8,039 (1,961) 7,500 -25.00%
5131 Sick Leave - - - - - - N/A 0.00%- - - N/A
5160 Vehicle Allowance - - - - - - N/A 0.00%- - - N/A
5170 On Call Pay 5,490 5,475 5,370 5,445 5,475 2,900 52.97% 47.47%5,776 301 9,895 80.73%
5190 Other - - - - - - N/A 0.00%- - - N/A
5210 Payroll Taxes 84,503 87,037 93,306 88,282 116,811 51,390 43.99% 47.44% 112,783 (4,028) 126,773 8.53%
Salaries and Wages 1,197,068 1,226,502 1,291,605 1,238,392 1,604,950 722,162 45.00%1,581,371 (23,579) 1,741,979 8.54%
5310 Retirement Plan 218,414 218,510 230,264 222,396 294,793 134,695 45.69% 49.58% 283,339 (11,454) 316,899 7.50%
5320 Medical Insurance Premiums 372,737 407,208 418,975 399,640 515,548 218,136 42.31% 45.10% 501,156 (14,392) 546,417 5.99%
5330 Tuition Aid Program - - - - - - N/A 0.00%- - - N/A
5350 Insurance Premiums 10,708 10,435 10,233 10,459 13,424 5,636 41.98% 50.74% 12,248 (1,176) 14,863 10.72%
Employee Benefits 601,859 636,153 659,472 632,495 823,765 358,467 43.52%796,743 (27,022) 878,179 6.61%
5340 Meetings & Seminars 3,462 6,015 5,927 5,135 13,195 4,366 33.09% 59.26%9,742 (3,453) 11,420 -13.45%
Employee Training 3,462 6,015 5,927 5,135 13,195 4,366 33.09%9,742 (3,453) 11,420 -13.45%
5410 Business Travel - - - - - - N/A 0.00%- - - N/A
5430 Vehicle O & M 305 584 2,512 1,134 702 3,755 534.95% 56.56%4,060 3,358 38,341 5361.68%
Transportation 305 584 2,512 1,134 702 3,755 534.90%4,060 3,358 38,341 5361.68%
5510 Legal - - - - - - N/A 0.00%- - - N/A
5520 Accounting - - - - - - N/A 0.00%- - - N/A
5530 Contract Services 129,498 85,432 89,611 101,513 180,350 70,824 39.27% 38.39% 181,941 1,591 163,025 -9.61%
5540 Other - - - - - - N/A 0.00%- - - N/A
Professional Services 129,498 85,432 89,611 101,513 180,350 70,824 39.27%181,941 1,591 163,025 -9.61%
5610 Telephone 1,440 1,280 2,845 1,855 5,020 1,680 33.47% 49.59%4,210 (810) 11,520 129.48%
5620 Electricity - - - - - - N/A 0.00%- - - N/A
5630 Natural Gas - - - - - - N/A 0.00%- - - N/A
5640 Radio Communications - - - - - - N/A 0.00%- - - N/A
5650 Water - - - - - 749 N/A 0.00%749 749 - N/A
Utilities 1,440 1,280 2,845 1,855 5,020 2,429 48.39%4,959 (61) 11,520 129.48%
5710 Buildings & Grounds 47,908 67,778 97,618 71,101 194,400 67,627 34.79% 86.36% 94,152 (100,248) 197,900 1.80%
5720 Machinery & Equipment 77,132 115,381 166,370 119,628 105,940 71,431 67.43% 46.51% 128,102 22,162 155,500 46.78%
Repairs and Maintenance 125,040 183,159 263,988 190,729 300,340 139,058 46.30% 222,254 (78,086) 353,400 17.67%
5810 General Supplies 12,184 7,628 10,220 10,011 12,500 6,127 49.02% 47.48% 12,692 192 18,500 48.00%
5820 Office Supplies - - - - - - N/A 0.00%- - - N/A
5830 Materials 91,269 136,255 117,060 114,861 118,600 65,942 55.60% 39.48% 137,724 19,124 130,000 9.61%
5840 Chemicals and Supplies 3,415 4,028 6,258 4,567 6,100 1,950 31.98% 23.52%6,616 516 6,600 8.20%
5850 Computer & Instr. Supplies - - - - - - N/A 0.00%- - - N/A
Chemicals and Supplies 106,868 147,911 133,538 129,439 137,200 74,019 53.95%157,032 19,832 155,100 13.05%
5901 General Insurance - - - - - - N/A 0.00%- - - N/A
5902 Administrative Fees - - - - - - N/A 0.00%- - - N/A
5903 Water Stock Assessment - - - - - - N/A 0.00%- - - N/A
5904 Rent Exp.15,946 - - 5,315 3,950 885 22.41% 100.00%885 (3,065) 4,200 6.33%
5905 Miscellaneous - - - - - - N/A 0.00%- - - N/A
5906 Postage & Freight Exp.- - - - - - N/A 0.00%- - - N/A
5907 Contributions & Events - - - - - - N/A 0.00%- - - N/A
5909 Depreciation Expense - - - - - - N/A 0.00%- - - N/A
5910 Interest Expense - - - - - - N/A 0.00%- - - N/A
5911 Laundry 3,594 3,818 7,035 4,816 7,350 2,160 29.39% 80.70%3,579 (3,771) 8,000 8.84%
5913 Safety 6,916 21,707 13,718 14,114 44,849 10,229 22.81% 36.10% 38,887 (5,962) 32,474 -27.59%
5914 Subscriptions & Publications - - - - - - N/A 0.00%- - - N/A
5915 Outside Printing - - - - - - N/A 0.00%- - - N/A
5916 Dues & Memberships 300 52 176 1,165 - 0.00% 100.00%- (1,165) 1,165 0.00%
5917 Amortization Exp.- - - - - - N/A 0.00%- - - N/A
5918 PRWUA - - - - - - N/A 0.00%- - - N/A
Other Expenses 26,756 25,577 20,753 24,421 57,314 13,274 23.16%43,351 (13,963) 45,839 -20.02%
Total Expenses 2,192,296 2,312,613 2,470,251 2,325,113 3,122,836 1,388,354 44.46% 3,001,453 (121,383) 3,398,803 8.84%
Excluding personnel costs 694,121 778,645 12.18%
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
MAINTENANCE (23)
Last Update:
10 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 014
Cost Center Name: Maintenance (23)
Last Update:
02/23/23
Account Number Account Name Description Units Quantity Unit Price Extended Amount
5110 Salary and Wage Expense Salary and wages (23 FTEs, 1 Seasonal, and skill-based pay)Pay Period 26 61,454$ 1,597,811$
5110 Total 1,597,811$
5120 Overtime Premium Overtime premium Pay Period 26 288$ 7,500$
5120 Total 7,500$
5170 On Call Pay On Call Pay Daily 365 27$ 9,895$
5170 Total 9,895$
5210 Payroll Taxes Employer Portion of Payroll Taxes Pay Period 26 4,876$ 126,773$
5210 Total 126,773$
5310 Retirement Plan URS (Utah Retirement Systems) Contribution and Employer Match Pay Period 26 12,188$ 316,899$
5310 Total 316,899$
5320 Medical Insurance Premiums Insurance premiums (Medical, Dental, Vision, and H.S.A. Contribution)Monthly 12 45,535$ 546,417$
5320 Total 546,417$
5350 Insurance Premiums AD&D, Basic Life, Long Term Disability, etc.Monthly 12 1,239$ 14,863$
5350 Total 14,863$
5340 Meetings & Seminars Backflow Prevention Seminar & Training (Technician)Each 2 1,000$ 2,000$
5340 Meetings & Seminars Backflow Certification (Cross Control Program Administer)Each 1 1,000$ 1,000$
5340 Meetings & Seminars Utah APWA Fall Conference Each 2 185$ 370$
5340 Meetings & Seminars Local Seminars Each 5 200$ 1,000$
5340 Meetings & Seminars Boiler Operator Training Lump sum 1 1,200$ 1,200$
5340 Meetings & Seminars Department meetings Lump sum 12 250$ 3,000$
5340 Meetings & Seminars Operator Certification Exams Each 9 150$ 1,350$
5340 Meetings & Seminars Operator Certification Renewals Each 10 150$ 1,500$
5340 Total 11,420$
5430 Vehicle O & M Mileage reimbursement Miles 2200 0.66$ 1,441$
5430 Vehicle O & M Emissions and inspections Each 15 125$ 1,900$
5430 Vehicle O & M Fleet repair parts Lump sum 1 10,000$ 10,000$
5430 Vehicle O & M Fleet lube oil filter and tires Lump sum 1 25,000$ 25,000$
5430 Total 38,341$
5530 Contract Services HVAC Equipment Service Lump sum 1 26,000$ 26,000$
5530 Contract Services Generator Preventative Maintenance Service Lump sum 1 23,000$ 23,000$
5530 Contract Services Asphalt Repair LCWTP (Slurry coat/Crack sealant)Lump sum 1 20,000$ 20,000$
5530 Contract Services Elevator Service Contract & State Fees Monthly 12 500$ 6,000$
5530 Contract Services Crane Inspection & Service Lump sum 1 1,500$ 1,500$
5530 Contract Services Fire Extinguisher Service (Suppression, Sprinkler, etc.)Lump sum 1 2,500$ 2,500$
5530 Contract Services Boiler Inspection, Repair & Service - LCWTP & POMWTP Lump sum 1 17,750$ 17,750$
5530 Contract Services Misc Contract Services (Geese Relocation, Waste Oil, Pump Sewer, etc.)Lump sum 1 1,500$ 1,500$
5530 Contract Services Pump Repair Lump sum 1 7,500$ 7,500$
5530 Contract Services Hazardous Waste Disposal Lump sum 1 4,000$ 4,000$
5530 Contract Services Ozone Nitrogen Boost Compressor Service - LCWTP & POMWTP Each 2 4,500$ 9,000$
5530 Contract Services Fuel Tank Inspection Lump sum 1 2,000$ 2,000$
5530 Contract Services Underground Storage Tank Program - (UST Fund)Lump sum 1 2,500$ 2,500$
5530 Contract Services Garage door repairs Lump sum 1 4,000$ 4,000$
5530 Contract Services Machine Repair and Unexpected Service Costs Lump sum 1 15,000$ 15,000$
5530 Contract Services DOT physical exams Each 9 125$ 1,125$
5530 Contract Services Tree removal Lump sum 1 5,000$ 5,000$
5530 Contract Services HydroTest Rescue Cylinders Each 10 65$ 650$
5530 Contract Services Carpet cleaning Lump sum 1 2,500$ 2,500$
5530 Contract Services Car wash water heater replacement Lump sum 1 4,000$ 4,000$
5530 Contract Services Carpet replacement at POMWTP operations and conference areas Lump sum 1 5,500$ 5,500$
5530 Contract Services Golf Cart Repair Lump sum 1 2,000$ 2,000$
5530 Total 163,025$
5610 Telephone Mobile Phone Allowances (24)Monthly 12 960$ 11,520$
5610 Total 11,520$
5710 Buildings & Grounds Painting Supplies/paint for basin handrails Lump sum 1 5,400$ 5,400$
5710 Buildings & Grounds Salt (Water Softener, Ice Melt, etc.)Lump sum 1 3,000$ 3,000$
5710 Buildings & Grounds Repair Supplies (concrete repairs etc.)Lump sum 1 6,000$ 6,000$
5710 Buildings & Grounds Fertilizer/weed killer/gopher bait Lump sum 1 3,000$ 3,000$
5710 Buildings & Grounds Sprinkler supplies (controller, pop-up, rain birds, solenoids, misc.)Lump sum 1 2,500$ 2,500$
5710 Buildings & Grounds Tools (shovels, rakes, loppers, shears, hand pruners, saws, snow shovels etc.)Lump sum 1 2,000$ 2,000$
5710 Buildings & Grounds Equipment supplies (oil, chains, weed trimming line, wasp spray, misc.)Lump sum 1 1,000$ 1,000$
5710 Buildings & Grounds Asphalt Crack Sealing Compound Lump sum 1 1,000$ 1,000$
5710 Buildings & Grounds Gravel/Landscape Rock/Wood Chip/Fencing Materials Lump sum 1 20,000$ 20,000$
5710 Buildings & Grounds Cleaning of Drying Beds Lump sum 1 150,000$ 150,000$
5710 Buildings & Grounds Locks, Cores & Hasps Lump sum 1 2,000$ 2,000$
5710 Buildings & Grounds Weed barrier fabric for landscaping Lump sum 1 2,000$ 2,000$
5710 Total 197,900$
5720 Machinery & Equipment Power Tools (Cordless Drill, Drill etc.)Lump sum 1 3,000$ 3,000$
5720 Machinery & Equipment Hand Tools & Bags for Maintenance Tech. II's & III's Lump sum 1 2,000$ 2,000$
5720 Machinery & Equipment Ozone corrosion inhibitor monitoring Each 2 125$ 250$
5720 Machinery & Equipment Golf Cart Enclosure Each 2 400$ 800$
5720 Machinery & Equipment Pump, Drum Each 1 1,200$ 1,200$
5720 Machinery & Equipment Pump, Sample/replacement and spare Each 7 1,000$ 7,000$
5720 Machinery & Equipment Pumps, Submersible (Standard - Small)Each 1 1,900$ 1,900$
5720 Machinery & Equipment Pump, Chemical sump Each 1 1,250$ 1,250$
5720 Machinery & Equipment Pump Parts, Chemical Resistant Each 1 300$ 300$
5720 Machinery & Equipment Pump, Submersible (Large, two stage)Each 1 2,750$ 2,750$
5720 Machinery & Equipment Pipe & Valve - Projects Lump sum 1 15,000$ 15,000$
Fiscal Year 2024 General Expenditures Worksheet
11 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 015
Cost Center Name: Maintenance (23)
Last Update:
02/23/23
Account Number Account Name Description Units Quantity Unit Price Extended Amount
Fiscal Year 2024 General Expenditures Worksheet
5720 Machinery & Equipment Sodium Hypochlorite Parts Lump sum 1 11,000$ 11,000$
5720 Machinery & Equipment Shop vacuum/Upright vacuums Each 6 200$ 1,200$
5720 Machinery & Equipment Ladders Lump sum 1 1,100$ 1,100$
5720 Machinery & Equipment HVAC Equipment Lump sum 1 17,000$ 17,000$
5720 Machinery & Equipment Weed trimmer (Heavy duty)Each 2 500$ 1,000$
5720 Machinery & Equipment Sod cutter for landscaping master plan implementation Each 1 5,500$ 5,500$
5720 Machinery & Equipment Golf Carts (1 New)Each 1 12,000$ 12,000$
5720 Machinery & Equipment Two-stage snow blower Each 1 3,000$ 3,000$
5720 Machinery & Equipment Chain saw Each 1 500$ 500$
5720 Machinery & Equipment Sludge draw removal equipment parts (Chains, pins and flights)Lump sum 1 30,000$ 30,000$
5720 Machinery & Equipment Equipment tires (Backhoe, forklift, bobcat, etc.)Lump sum 1 3,000$ 3,000$
5720 Machinery & Equipment Split Seal - Ozone Feed Pumps Lump sum 1 5,750$ 5,750$
5720 Machinery & Equipment Steam system drop legs and line repair implementation/Dehumidifier repair Lump sum 1 25,000$ 25,000$
5720 Machinery & Equipment Ultrasonic irrigation flow meter replacements Lump sum 1 4,000$ 4,000$
5720 Total 155,500$
5810 General Supplies Janitorial - Paper Products Lump sum 1 7,500$ 7,500$
5810 General Supplies Janitorial - Cleaning Supplies Lump sum 1 4,500$ 4,500$
5810 General Supplies Furniture/Warehouse cabinets for remote sites Lump sum 1 3,000$ 3,000$
5810 General Supplies Folding tables and chairs for district events Lump sum 1 2,500$ 2,500$
5810 General Supplies Flags/Repairs Lump sum 1 1,000$ 1,000$
5810 Total 18,500$
5830 Materials Hose Supplies (Fire, Peristaltic Pump Hose, etc.)Lump sum 1 6,000$ 6,000$
5830 Materials Air System Parts Lump sum 1 2,000$ 2,000$
5830 Materials Chlorine Parts Lump sum 1 25,000$ 25,000$
5830 Materials Polymer Feeder Parts Lump sum 1 8,200$ 8,200$
5830 Materials Pump, Parts Lump sum 1 2,000$ 2,000$
5830 Materials Pipe, Tubing, Fittings & Valves Lump sum 1 1,500$ 1,500$
5830 Materials Ozone Parts Lump sum 1 10,000$ 10,000$
5830 Materials Fasteners Lump sum 1 1,500$ 1,500$
5830 Materials Oil Test Kits Lump sum 1 3,100$ 3,100$
5830 Materials Welding Supplies Lump sum 1 3,000$ 3,000$
5830 Materials Irrigation Meter Parts Lump sum 1 1,000$ 1,000$
5830 Materials Screen Rake Parts Lump sum 1 500$ 500$
5830 Materials V-belts, HVAC Lump sum 1 1,000$ 1,000$
5830 Materials Shop Stock Steel (aqueduct gate material)Lump sum 1 6,000$ 6,000$
5830 Materials Lubrication Supplies Lump sum 1 3,500$ 3,500$
5830 Materials HVAC Filters Lump sum 1 6,000$ 6,000$
5830 Materials Steam Traps & Parts Lump sum 1 15,000$ 15,000$
5830 Materials Light Bulbs Lump sum 1 8,000$ 8,000$
5830 Materials Traveling Screen Parts Lump sum 1 500$ 500$
5830 Materials Golf Cart Maintenance (Tires, Batteries, Repairs, etc.)Lump sum 1 7,500$ 7,500$
5830 Materials Miscellaneous batteries Lump sum 1 1,200$ 1,200$
5830 Materials Dumping Fees Lump sum 1 4,000$ 4,000$
5830 Materials Concrete repair supplies Lump sum 1 1,000$ 1,000$
5830 Materials General Expendables (nuts, bolts, saw blades, tape, etc.)Lump sum 1 10,500$ 10,500$
5830 Materials Backflow Preventer Repair Parts Lump sum 1 2,000$ 2,000$
5830 Total 130,000$
5840 Chemicals Boiler chemicals Lump sum 1 6,000$ 6,000$
5840 Chemicals Acid, cleaning Lump sum 1 600$ 600$
5840 Total 6,600$
5904 Rent Expense Track hoe Each 3 1,150$ 3,450$
5904 Rent Expense Stump grinder Each 3 250$ 750$
5904 Total 4,200$
5911 Laundry Uniforms/Coveralls Lump sum 1 5,000$ 5,000$
5911 Laundry Uniforms, New employees Lump sum 1 1,500$ 1,500$
5911 Laundry Cold weather gear (Coat)Lump sum 1 1,000$ 1,000$
5911 Laundry Cleaning Supplies Lump sum 1 500$ 500$
5911 Total 8,000$
5913 Safety Safety Shoes/Boots Each 24 125$ 3,000$
5913 Safety Safety Shoes/boots - Seasonal (Muck Boots)Each 3 150$ 450$
5913 Safety Rubber Boot Replacements Each 6 40$ 240$
5913 Safety Safety Glasses, Goggles (Prescriptive)Each 5 200$ 1,000$
5913 Safety PPE (Personal Protective Equipment) - Miscellaneous Lump sum 1 3,000$ 3,000$
5913 Safety Hard Hats Each 12 27$ 324$
5913 Safety Rain Gear Each 12 80$ 960$
5913 Safety Implementation of Safety Suggestions Lump sum 1 20,000$ 20,000$
5913 Safety Barricades, Signs & Traffic Cones Lump sum 1 3,500$ 3,500$
5913 Total 32,474$
5916 Dues & Membership Membership Renewals (Backflow Prevention - APWA)Each 3 55$ 165$
5916 Dues & Membership CDL Certification Each 5 200$ 1,000$
5916 Total 1,165$
12 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 016
02/07/23
Account Description
Actual
FY 2020
Actual
FY 2021
Actual
FY 2022
3-Year
Average
(FY 2020-2022)
Budget
FY 2023
Actual
12/31/2022
% of Total
Spent YTD
FY 2023
% of Total
Spent YTD
3-year
average
Projected
Spend
FY 2023
Projected
Spend to
Budget
over/(under)
for FY 2023
Budget
FY 2024
% Change
from
FY 2023
Budget
5110 Salary & Wage Exp.1,094,604 622,579 844,498 853,894 932,193 415,551 44.58% 45.36% 924,934 (7,259) 1,086,889 16.59%
5120 Overtime Premium 5,759 - - 1,920 - - N/A 48.76%- - - N/A
5131 Sick Leave - - - - - - N/A 0.00%- - - N/A
5160 Vehicle Allowance - - - - - - N/A 0.00%- - - N/A
5170 On Call Pay 6,555 8,975 9,125 8,218 9,125 4,600 50.41% 48.65%9,286 161 9,895 8.44%
5190 Other - - - - - - N/A 0.00%- - - N/A
5210 Payroll Taxes 83,452 48,322 65,314 65,696 73,009 29,594 40.53% 45.40% 69,458 (3,551) 85,114 16.58%
Salaries and Wages 1,190,370 679,876 918,937 929,728 1,014,327 449,745 44.34%1,003,678 (10,649) 1,181,898 16.52%
5310 Retirement Plan 220,012 127,863 167,818 171,898 190,629 84,825 44.50% 49.10% 181,846 (8,783) 221,118 15.99%
5320 Medical Insurance Premiums 296,292 153,179 186,622 212,031 193,781 89,667 46.27% 47.56% 191,280 (2,501) 219,511 13.28%
5330 Tuition Aid Program - - - - - - N/A 0.00%- - - N/A
5350 Insurance Premiums 8,236 3,999 5,363 5,866 4,658 2,834 60.84% 49.83%5,171 513 5,497 18.01%
Employee Benefits 524,540 285,041 359,803 389,795 389,068 177,326 45.58%378,297 (10,771) 446,126 14.67%
5340 Meetings & Seminars 5,755 5,121 2,309 4,395 10,890 2,471 22.69% 91.26%3,423 (7,467) 11,250 3.31%
Employee Training 5,755 5,121 2,309 4,395 10,890 2,471 22.69%3,423 (7,467) 11,250 3.31%
5410 Business Travel 21,837 - - 7,279 34,700 12,180 35.10% 90.48% 15,483 (19,217) 34,700 0.00%
5430 Vehicle O & M 731 126 378 412 731 375 51.28% 68.76%603 (128) 917 25.44%
Transportation 22,568 126 378 7,691 35,431 12,555 35.44%16,086 (19,345) 35,617 0.52%
5510 Legal - - - - - - N/A 0.00%- - - N/A
5520 Accounting - - - - - - N/A 0.00%- - - N/A
5530 Contract Services 284,313 285,288 324,871 298,158 384,860 56,744 14.74% 23.93% 349,497 (35,363) 448,733 16.60%
5540 Other 13,343 13,873 26,282 17,832 21,600 2,063 9.55% 17.45% 19,894 (1,706) 23,100 6.94%
Professional Services 297,656 299,161 351,153 315,990 406,460 58,807 14.47%369,391 (37,069) 471,833 16.08%
5610 Telephone 6,240 2,890 3,840 4,323 6,840 1,920 28.07% 50.04%5,337 (1,503) 8,640 26.32%
5620 Electricity - - - - - - N/A 0.00%- - - N/A
5630 Natural Gas - - - - - - N/A 0.00%- - - N/A
5640 Radio Communications 6,842 18,281 7,535 10,886 8,560 9,594 112.08% 29.07% 15,666 7,106 11,810 37.97%
5650 Water - - - - - - N/A 0.00%- - - N/A
Utilities 13,082 21,171 11,375 15,209 15,400 11,514 74.77%21,003 5,603 20,450 32.79%
5710 Buildings & Grounds - - - - - - N/A 0.00%- - - N/A
5720 Machinery & Equipment - - - - - - N/A 56.11%- - - N/A
Repairs and Maintenance - - - - - - N/A - - - N/A
5810 General Supplies 5,820 647 124 2,197 1,000 - 0.00% 88.72%113 (887) 1,000 0.00%
5820 Office Supplies - - - - - - N/A 0.00%- - - N/A
5830 Materials - - - - - 45 N/A 23.33%45 45 - N/A
5840 Chemicals 11,172 - - 3,724 - - N/A 91.98%- - - N/A
5850 Computer & Instr. Supplies 114,964 119,480 125,409 119,951 141,245 55,759 39.48% 42.77% 136,588 (4,657) 140,000 -0.88%
Chemicals and Supplies 131,956 120,127 125,533 125,872 142,245 55,804 39.23%136,746 (5,499) 141,000 -0.88%
5901 General Insurance - - - - - - N/A 0.00%- - - N/A
5902 Administrative Fees - - - - - - N/A 0.00%- - - N/A
5903 Water Stock Assessment - - - - - - N/A 0.00%- - - N/A
5904 Rent Exp.- - - - - - N/A 0.00%- - - N/A
5905 Miscellaneous - - - - - - N/A 0.00%- - - N/A
5906 Postage & Freight Exp.- - - - - - N/A 0.00%- - - N/A
5907 Contributions & Events - - - - - - N/A 0.00%- - - N/A
5909 Depreciation Expense - - - - - - N/A 0.00%- - - N/A
5910 Interest Expense - - - - - - N/A 0.00%- - - N/A
5911 Laundry 1,723 535 904 1,054 1,200 37 3.05% 86.13%203 (997) 1,350 12.50%
5913 Safety 3,514 277 625 1,472 1,500 484 32.28% 44.57%1,316 (184) 1,625 8.33%
5914 Subscriptions & Publications - - 40 13 400 - 0.00% 100.00%- (400) 400 0.00%
5915 Outside Printing - - - - - - N/A 0.00%- - - N/A
5916 Dues & Memberships 750 750 750 750 1,000 - 0.00% 0.00%1,000 - 1,000 0.00%
5917 Amortization Exp.- - - - - - N/A 0.00%- - - N/A
5918 PRWUA - - - - - - N/A 0.00%- - - N/A
Other Expenses 5,987 1,562 2,319 3,289 4,100 521 12.71%2,519 (1,581) 4,375 6.71%
Total Expenses 2,191,914 1,412,185 1,771,807 1,791,969 2,017,921 768,743 38.10% 1,931,143 (86,778) 2,312,549 14.60%
Excluding personnel costs 614,526 684,525 11.39%
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
INFORMATION TECHNOLOGY (24)
Last Update:
13 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 017
Cost Center Name: Information Technology (24)
Last Update:
02/07/23
Account Number Account Name Description Units Quantity Unit Price Extended Amount
5110 Salary and Wage Expense Salary and wages (8 FTEs)Pay Period 26 41,803$ 1,086,889$
5110 Total 1,086,889$
5170 On Call Pay On Call Pay Daily 365 27$ 9,895$
5170 Total 9,895$
5210 Payroll Taxes Employer Portion of Payroll Taxes Pay Period 26 3,274$ 85,114$
5210 Total 85,114$
5310 Retirement Plan URS (Utah Retirement Systems) Contribution and Employer Match Pay Period 26 8,505$ 221,118$
5310 Total 221,118$
5320 Medical Insurance Premiums Insurance premiums (Medical, Dental, Vision, and H.S.A. Contribution)Monthly 12 18,293$ 219,511$
5320 Total 219,511$
5350 Insurance Premiums AD&D, Basic Life, Long Term Disability, etc.Monthly 12 458$ 5,497$
5350 Total 5,497$
5340 Meetings & Seminars IT Analyst Each 1 500$ 500$
5340 Meetings & Seminars IT Systems Administrator Each 3 500$ 1,500$
5340 Meetings & Seminars IT Senior Systems Administrator Each 2 500$ 1,000$
5340 Meetings & Seminars IT Project Manager Each 1 500$ 500$
5340 Meetings & Seminars IT Manager Each 1 500$ 500$
5340 Meetings & Seminars Online Technology Training Each 2 2,800$ 5,600$
5340 Meetings & Seminars Online Technical Training Subscription Each 1 300$ 300$
5340 Meetings & Seminars Refreshments for IS meetings and training Monthly 12 50$ 600$
5340 Meetings & Seminars Operator Certification Renewals (Mark, Chad, Brian)Each 3 250$ 750$
5340 Total 11,250$
5410 Business Travel Senior Sys Admin CyberSecurity Training Each 2 6,350$ 12,700$
5410 Business Travel INL PCS Security Training Each 2 2,000$ 4,000$
5410 Business Travel Senior Sys Admin Training Each 3 6,000$ 18,000$
5410 Total 34,700$
5430 Vehicle O&M Mileage reimbursement Miles 1400 $0.66 917$
5430 Total 917$
5530 Contract Services Disk recovery software Each 1 900$ 900$
5530 Contract Services Email and Office productivity Client Software renewal Lump sum 1 $ -$ -
5530 Contract Services Office Suite Licensing Each 100 60$ 6,000$
5530 Contract Services E-mail security and anti-spam software renewal Lump sum 1 700$ 700$
5530 Contract Services Server, workstation, and e-mail antivirus and cyber firewall software renewals Lump sum 1 15,833$ 15,833$
5530 Contract Services Maintenance renewal and additional licenses for the District web filtering server Lump sum 1 2,100$ 2,100$
5530 Contract Services Virtual machine Server software renewals and additional licenses Lump sum 1 25,000$ 25,000$
5530 Contract Services Virtual machine client software renewals and additional licenses Lump sum 1 1,200$ 1,200$
5530 Contract Services
Virtual machine server administration and data backup software renewals and
additional licenses Lump sum 1 29,000$ 29,000$
5530 Contract Services Remote administration software renewal Each 10 150$ 1,500$
5530 Contract Services Web development software renewal Lump sum 1 1,500$ 1,500$
5530 Contract Services Cyber security analysis and intrusion detection software renewals Lump sum 1 11,500$ 11,500$
5530 Contract Services
PC/S human machine software interface (HMI) software licenses, renewals, and
maintenance Lump sum 1 60,000$ 60,000$
5530 Contract Services Enterprise Content Management (ECM)--software renewal Lump sum 1 5,000$ 5,000$
5530 Contract Services Financial Information System (FIS) and Fixed Asset Software (FAS) renewal Lump sum 1 6,200$ 6,200$
5530 Contract Services Laboratory Information Management System (LIMS) software renewal Lump sum 1 22,000$ 22,000$
5530 Contract Services Laboratory Information Management System (LIMS) LIMS Linking Software Lump sum 1 500$ 500$
5530 Contract Services Enterprise Asset Management (EAM) software renewal Lump sum 1 25,000$ 25,000$
5530 Contract Services New server operating system licenses & Software Asurance Lump sum 1 35,000$ 35,000$
5530 Contract Services
Desktop PC operating system, server client access, and office software license
renewals, upgrades, and purchases Lump sum 1 1,600$ 1,600$
5530 Contract Services Computer programming software library Lump sum 1 1,000$ 1,000$
5530 Contract Services Telephone system renewal Lump sum 1 11,500$ 11,500$
5530 Contract Services Project management software maintenance renewal Lump sum 1 1,000$ 1,000$
5530 Contract Services Collaboration software maintenance renewal Lump sum 1 7,000$ 7,000$
5530 Contract Services Collaboration Office suite software maintenance renewal Lump sum 1 1,200$ 1,200$
5530 Contract Services Network monitoring software maintenance renewal Lump sum 1 11,000$ 11,000$
5530 Contract Services Document management scanner hardware renewals Lump sum 1 1,100$ 1,100$
5530 Contract Services Document management system--support services Lump sum 1 4,000$ 4,000$
5530 Contract Services Security System software renewal Lump sum 1 8,000$ 8,000$
5530 Contract Services PC/S programming services Each 720 125$ 90,000$
5530 Contract Services Telephone system maintenance, ISP services, and Web hosting services Lump sum 1 19,100$ 19,100$
5530 Contract Services IT network hardware/software consulting, configuration, and security services Lump sum 1 10,000$ 10,000$
5530 Contract Services Server, desktop, and laptop PCs maintenance and service renewals Lump sum 1 28,300$ 28,300$
5530 Contract Services Electronics disposal/recycling services Lump sum 1 1,500$ 1,500$
5530 Contract Services Copier maintenance contracts Lump sum 1 3,500$ 3,500$
5530 Total 448,733$
5540 Other SCS maintenance and support services Each 120 150$ 18,000$
5540 Other SCS camera end of life replacements Each 1 4,500$ 4,500$
5540 Other SCS controller battery replacements Each 20 30$ 600$
5540 Total 23,100$
5610 Telephone Mobile phone allowances (9)Monthly 12 720$ 8,640$
5610 Total 8,640$
Fiscal Year 2024 General Expenditures Worksheet
14 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 018
Cost Center Name: Information Technology (24)
Last Update:
02/07/23
Account Number Account Name Description Units Quantity Unit Price Extended Amount
Fiscal Year 2024 General Expenditures Worksheet
5640 Radio Communications Repeater site lease fees and FCC frequency renewals--PC/S and voice radio systems Monthly 12 480$ 5,760$
5640 Radio Communications Utah Communication Agency Network (UCAN) services Quarterly 4 700$ 2,800$
5640 Radio Communications Radio parts Lump sum 1 500$ 500$
5640 Radio Communications Radio frequency license renewals Each 3 250$ 750$
5640 Radio Communications New radio licenses Each 4 500$ 2,000$
5640 Total 11,810$
5810 General Supplies Tools and equipment Lump sum 1 1,000$ 1,000$
5810 Total 1,000$
5850 Computer & Instr. Supplies Server racks/enclosures, network cables, and related equipment Lump sum 1 4,000$ 4,000$
5850 Computer & Instr. Supplies Desktop Server Each 1 3,500$ 3,500$
5850 Computer & Instr. Supplies Desktop Workstation--replacements Each 3 1,000$ 3,000$
5850 Computer & Instr. Supplies Thin client computer- replacements Each 4 700$ 2,800$
5850 Computer & Instr. Supplies Low power laptop computer--new and replacements Each 4 400$ 1,600$
5850 Computer & Instr. Supplies Performance laptop computer--replacement Each 3 1,500$ 4,500$
5850 Computer & Instr. Supplies Desktop computer monitors--end of life replacements Each 12 300$ 3,600$
5850 Computer & Instr. Supplies
Server computer replacement parts and upgrades (memory, power supplies, network
accessories, etc.--PC/S, Enterprise, and SCS)Lump sum 1 24,400$ 24,400$
5850 Computer & Instr. Supplies Server computer replacement hard drives (PC/S, Enterprise, and SCS)Lump sum 1 18,000$ 18,000$
5850 Computer & Instr. Supplies
Desktop, laptop, and tablet computer replacement parts and upgrades (hard drives,
memory, power supplies, accessories, etc.--PC/S, Enterprise, and SCS)Lump sum 1 7,500$ 7,500$
5850 Computer & Instr. Supplies PC/S, Enterprise, and SCS network hardware and parts (new and replacements) Lump sum 1 31,000$ 31,000$
5850 Computer & Instr. Supplies PC/S, Enterprise, and SCS network security equipment (new and replacements) Lump sum 1 8,200$ 8,200$
5850 Computer & Instr. Supplies UPS Replacement and Batteries Lump sum 1 2,500$ 2,500$
5850 Computer & Instr. Supplies PC/S and Enterprise network data backup system replacement equipment and parts Lump sum 1 3,900$ 3,900$
5850 Computer & Instr. Supplies Network analyzer/tester Lump sum 1 3,500$ 3,500$
5850 Computer & Instr. Supplies Printer equipment replacements, parts, supplies Lump sum 1 4,000$ 4,000$
5850 Computer & Instr. Supplies Remote site reservoir camera system improvements Lump sum 1 12,000$ 12,000$
5850 Computer & Instr. Supplies Phone system hardware--new and replacement parts Lump sum 1 2,000$ 2,000$
5850 Total 140,000$
5911 Laundry Uniforms Lump sum 1 1,350$ 1,350$
5911 Total 1,350$
5913 Safety Safety shoes Employee 9 125$ 1,125$
5913 Safety Personal protective equipment Lump sum 1 500$ 500$
5913 Total 1,625$
5914 Subscriptions & Publications Information Technology Lump sum 1 400$ 400$
5914 Total 400$
5916 Dues & Membership Association for Information Management Each 1 250$ 250$
5916 Dues & Membership Water and Wastewater CIO Forum Each 1 750$ 750$
5916 Total 1,000$
15 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 019
03/02/23
Account Description
Actual
FY 2020
Actual
FY 2021
Actual
FY 2022
3-Year
Average
(FY 2020-2022)
Budget
FY 2023
Actual
12/31/2022
% of Total
Spent YTD
FY 2023
% of Total
Spent YTD
3-year
average
Projected
Spend
FY 2023
Projected
Spend to
Budget
over/(under)
for FY 2023
Budget
FY 2024
% Change
from
FY 2023
Budget
5110 Salary & Wage Exp.662,757 680,550 720,659 687,989 762,728 323,022 42.35% 45.38% 739,641 (23,087) 673,405 -11.71%
5120 Overtime Premium 582 176 62 273 1,000 - 0.00% 17.98%820 (180) 1,000 0.00%
5131 Sick Leave - - - - - - N/A 0.00%- - - N/A
5160 Vehicle Allowance - - - - - - N/A 0.00%- - - N/A
5170 On Call Pay - - - - - - N/A 0.00%- - - N/A
5190 Other - - - - - N/A 0.00%- - - N/A
5210 Payroll Taxes 49,544 51,109 53,977 51,543 58,178 24,493 42.10% 45.35% 56,285 (1,893) 52,533 -9.70%
Salaries and Wages 712,883 731,835 774,698 739,805 821,906 347,515 42.28%796,746 (25,160) 726,938 -11.55%
5310 Retirement Plan 137,316 141,755 150,477 143,182 158,088 73,064 46.22% 49.07% 153,579 (4,509) 138,180 -12.59%
5320 Medical Insurance Premiums 197,339 190,122 180,953 189,471 187,098 78,402 41.90% 47.71% 176,242 (10,856) 170,135 -9.07%
5330 Tuition Aid Program - - - - - - N/A 0.00%- - - N/A
5350 Insurance Premiums 5,203 5,150 5,185 5,179 4,658 2,613 56.09% 49.94%4,944 286 4,520 -2.95%
Employee Benefits 339,858 337,027 336,615 337,832 349,844 154,079 44.04%334,765 (15,079) 312,835 -10.58%
5340 Meetings & Seminars 3,383 1,399 2,241 2,341 6,450 1,917 29.71% 66.39%4,084 (2,366) 6,890 6.82%
Employee Training 3,383 1,399 2,241 2,341 6,450 1,917 29.72%4,084 (2,366) 6,890 6.82%
5410 Business Travel - 142 3,518 1,220 1,500 - 0.00% 3.88%1,442 (58) 1,500 0.00%
5430 Vehicle O & M 62 87 - 50 100 - 0.00% 34.18%66 (34) 100 -0.44%
Transportation 62 229 3,518 1,270 1,600 - 0.00%1,508 (92) 1,600 0.00%
5510 Legal - - - - - - N/A 0.00%- - - N/A
5520 Accounting - - - - - - N/A 0.00%- - - N/A
5530 Contract Services 293,970 376,562 401,358 357,297 267,865 36,704 13.70% 45.09% 183,779 (84,086) 239,165 -10.71%
5540 Other - - - - - - N/A 0.00%- - - N/A
Professional Services 293,970 376,562 401,358 357,297 267,865 36,704 13.70%183,779 (84,086) 239,165 -10.71%
5610 Telephone 3,840 3,840 3,840 3,840 3,840 1,840 47.92% 50.00%3,760 (80) 3,360 -12.50%
5620 Electricity - - - - - - N/A 0.00%- - - N/A
5630 Natural Gas - - - - - - N/A 0.00%- - - N/A
5640 Radio Communications - - - - - - N/A 0.00%- - - N/A
5650 Water - - - - - - N/A 0.00%- - - N/A
Utilities 3,840 3,840 3,840 3,840 3,840 1,840 47.92%3,760 (80) 3,360 -12.50%
5710 Buildings & Grounds - - - - - - N/A 0.00%- - - N/A
5720 Machinery & Equipment - - 3,886 1,295 4,750 - 0.00% 20.07%3,797 (953) 10,000 110.53%
Repairs and Maintenance - - 3,886 1,295 4,750 - 0.00%3,797 (953) 10,000 110.53%
5810 General Supplies 3,027 4,400 8,184 5,204 5,100 275 5.38% 58.10%2,411 (2,689) 5,000 -1.96%
5820 Office Supplies - - - - - - N/A 0.00%- - - N/A
5830 Materials - - 2,335 778 - - N/A 0.00%- - - N/A
5840 Chemicals - - - - - - N/A 0.00%- - - N/A
5850 Computer & Instr. Supplies - - - - - - N/A 0.00%- - - N/A
Chemicals and Supplies 3,027 4,400 10,519 5,982 5,100 275 5.39%2,411 (2,689) 5,000 -1.96%
5901 General Insurance - - - - - - N/A 0.00%- - - N/A
5902 Administrative Fees - - - - - - N/A 0.00%- - - N/A
5903 Water Stock Assessment - - - - - - N/A 0.00%- - - N/A
5904 Rent Exp.- - 5,934 1,978 6,000 - 0.00% 100.00%- (6,000) 7,500 25.00%
5905 Miscellaneous - - - - - - N/A 0.00%- - - N/A
5906 Postage & Freight Exp.- - - - 1,000 - 0.00% 0.00%1,000 - - -100.00%
5907 Contributions & Events - - - - - - N/A 0.00%- - - N/A
5909 Depreciation Expense - - - - - - N/A 0.00%- - - N/A
5910 Interest Expense - - - - - - N/A 0.00%- - - N/A
5911 Laundry 902 882 1,449 1,077 1,025 325 31.70% 78.89%541 (484) 925 -9.76%
5913 Safety 695 473 1,500 889 1,680 595 35.41% 71.96%1,066 (614) 1,520 -9.52%
5914 Subscriptions & Publications - - 255 85 500 - 0.00% 0.00%500 - 500 0.00%
5915 Outside Printing - 116 - 39 1,200 - 0.00% 100.00%- (1,200) - -100.00%
5916 Dues & Memberships 255 621 491 456 725 354 48.83% 63.57%618 (107) 100 -86.21%
5917 Amortization Exp.- - - - - - N/A 0.00%- - - N/A
5918 PRWUA - - - - - - N/A 0.00%- - - N/A
Other Expenses 1,852 2,092 9,629 4,524 12,130 1,274 10.50%3,725 (8,405) 10,545 -13.07%
Total Expenses 1,358,875 1,457,384 1,546,304 1,454,186 1,473,485 543,604 36.89% 1,334,575 (138,910) 1,316,333 -10.67%
Excluding personnel costs 301,735 276,560 -8.34%
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
ENGINEERING (25)
Last Update:
16 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 020
Cost Center Name: Engineering (25)
Last Update:
03/02/23
Account Number Account Name Description Units Quantity Unit Price Extended Amount
5110 Salary and Wage Expense Salary and wages (7 FTEs)Pay Period 26 25,900.21$ 673,405$
5110 Total 673,405$
5120 Overtime Premium Overtime premium Pay Period 26 38$ 1,000$
5120 Total 1,000$
5210 Payroll Taxes Employer Portion of Payroll Taxes Pay Period 26 2,020$ 52,533$
5210 Total 52,533$
5310 Retirement Plan URS (Utah Retirement Systems) Contribution and Employer Match Pay Period 26 5,315$ 138,180$
5310 Total 138,180$
5320 Medical Insurance Premiums Insurance premiums (Medical, Dental, Vision, and H.S.A. Contribution)Monthly 12 14,178$ 170,135$
5320 Total 170,135$
5350 Insurance Premiums AD&D, Basic Life, Long Term Disability, etc.Monthly 12 377$ 4,520$
5350 Total 4,520$
5340 Meetings & Seminars Department Meetings Lump sum 1 600$ 600$
5340 Meetings & Seminars Local Seminars Lump Sum 1 500$ 500$
5340 Meetings & Seminars Public Utilities and Waterworks Management Institute Each 4 500$ 2,000$
5340 Meetings & Seminars Staking University Each 2 795$ 1,590$
5340 Meetings & Seminars Utah APWA Fall Conference Each 2 200$ 400$
5340 Meetings & Seminars Utah ABPA Conference Each 1 100$ 100$
5341 Meetings & Seminars Operator Certification Exam Each 2 150$ 300$
5340 Meetings & Seminars Operator Certification Renewal Each 4 150$ 600$
5340 Meetings & Seminars Backflow Certification Each 1 800$ 800$
5340 Total 6,890$
5410 Business Travel AWWA Intermountain Each 1 1,500$ 1,500$
5410 Total 1,500$
5430 Vehicle O&M Mileage reimbursement Miles 152 0.66$ 100
5430 Total 100$
5530 Contract Services Professional Services - Engineering Lump sum 1 75,000$ 75,000$
5530 Contract Services Professional Services - Survey (ROW, Annexation/De-annexation)Lump sum 1 147,000$ 147,000$
5530 Contract Services Blue Stakes Monthly 12 400$ 4,800$
5530 Contract Services Boss811 (Blue Stake ticket management)Annual 1 3,000$ 3,000$
5530 Contract Services ESRI GIS License Annual 1 7,500$ 7,500$
5530 Contract Services Utah Area Reference Network (TURN) Subscription Annual 3 600$ 1,800$
5530 Contract Services DOT Physical Exam Lump sum 1 65$ 65$
5530 Total 239,165$
5610 Telephone Mobile Phone Allowances (7)Monthly 12 280$ 3,360$
5610 Total 3,360$
5720 Machinery & Equipment GPS (R2 or equivalent)Each 1 10,000$ 10,000$
5720 Total 10,000$
5810 General Supplies Aqueduct Inspector Supplies Lump sum 1 4,000$ 4,000$
5810 General Supplies Gravel Lump sum 1 1,000$ 1,000$
5810 Total 5,000$
5904 Rent Expense Excavator Rental (road maintenance)Lump sum 1 7,500$ 7,500$
5904 Total 7,500$
5911 Laundry Uniforms & Supplies Lump sum 1 925$ 925$
5911 Total 925$
5913 Safety Safety Shoes/Boots Each 7 125$ 875$
5913 Safety Safety Glasses, Goggles (Prescription)Each 2 200$ 400$
5913 Safety Safety Glasses, Goggles (Standard)Each 7 35$ 245$
5913 Total 1,520$
5914 Subscriptions & Publications Subscriptions & Publications Lump sum 1 500$ 500$
5914 Total 500$
5916 Dues & Membership Professional Memberships Lump sum 1 100$ 100$
5916 Total 100$
Fiscal Year 2024 General Expenditures Worksheet
17 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 021
03/01/23
Account Description
Actual
FY 2020
Actual
FY 2021
Actual
FY 2022
3-Year
Average
(FY 2020-2022)
Budget
FY 2023
Actual
12/31/2022
% of Total
Spent YTD
FY 2023
% of Total
Spent YTD
3-year
average
Projected
Spend
FY 2023
Projected
Spend to
Budget
over/(under)
for FY 2023
Budget
FY 2024
% Change
from
FY 2023
Budget
5110 Salary & Wage Exp.- 542,315 559,923 367,413 597,242 275,938 46.20% 42.70% 551,876 (45,366) 730,567 22.32%
5120 Overtime Premium - 5,244 3,639 2,961 7,500 2,575 34.33% 54.39%5,150 (2,350) 6,000 -20.00%
5131 Sick Leave - - - - - - N/A 0.00%- - - N/A
5160 Vehicle Allowance - - - - - - N/A 0.00%- - - N/A
5170 On Call Pay - 5,625 5,475 3,700 5,475 2,890 52.79% 47.70%5,780 305 9,895 80.73%
5190 Other - - - - - - N/A 0.00%- - - N/A
5210 Payroll Taxes - 42,457 44,882 29,113 47,680 22,136 46.43% 42.81% 44,272 (3,408) 58,314 22.30%
Salaries and Wages - 595,641 613,919 403,187 657,897 303,539 46.14%607,078 (50,819) 804,776 22.33%
5310 Retirement Plan - 110,971 115,837 75,602 123,548 59,951 48.52% 46.16% 119,901 (3,647) 150,313 21.66%
5320 Medical Insurance Premiums - 140,688 136,244 92,311 163,839 71,738 43.79% 43.67% 143,476 (20,363) 193,548 18.13%
5330 Tuition Aid Program - - - - - - N/A 0.00%- - - N/A
5350 Insurance Premiums - 4,087 4,244 2,777 4,622 2,314 50.07% 47.09%4,628 6 5,786 25.17%
Employee Benefits - 255,746 256,325 170,690 292,009 134,003 45.89% 268,005 (24,004) 349,647 19.74%
5340 Meetings & Seminars - 1,244 1,655 966 11,800 1,480 12.54% 40.14%8,543 (3,257) 11,800 0.00%
Employee Training - 1,244 1,655 966 11,800 1,480 12.54% 8,543 (3,257) 11,800 0.00%
5410 Business Travel - - 4,638 1,546 - - N/A 0.00%- - - N/A
5430 Vehicle O & M - - - - - - N/A 0.00%- - - N/A
Transportation - - 4,638 1,546 - - N/A - - - N/A
5510 Legal - - - - - - N/A 0.00%- - - N/A
5520 Accounting - - - - - - N/A 0.00%- - - N/A
5530 Contract Services - 75,165 79,029 51,398 125,098 2,065 1.65% 29.57% 90,167 (34,931) 125,098 0.00%
5540 Other - - - - - - N/A 0.00%- - - N/A
Professional Services - 75,165 79,029 51,398 125,098 2,065 1.65%90,167 (34,931) 125,098 0.00%
5610 Telephone - 3,191 3,915 2,369 3,840 1,920 50.00% 49.41%3,863 23 4,320 12.50%
5620 Electricity - - - - - - N/A 0.00%- - - N/A
5630 Natural Gas - - - - - - N/A 0.00%- - - N/A
5640 Radio Communications - - - - - - N/A 0.00%- - - N/A
5650 Water - - - - - - N/A 0.00%- - - N/A
Utilities - 3,191 3,915 2,369 3,840 1,920 50.00% 3,863 23 4,320 12.50%
5710 Buildings & Grounds - - - - - - N/A 0.00%- - - N/A
5720 Machinery & Equipment 150,155 204,657 206,088 186,967 207,960 60,456 29.07% 53.66% 156,819 (51,141) 241,397 16.08%
Repairs and Maintenance 150,155 204,657 206,088 186,967 207,960 60,456 29.07% 156,819 (51,141) 241,397 16.08%
5810 General Supplies - 6,524 7,800 4,775 5,000 1,883 37.66% 64.18%3,674 (1,326) 7,500 50.00%
5820 Office Supplies - - - - - - N/A 0.00%- - - N/A
5830 Materials 67,455 54,322 71,662 64,480 89,900 61,001 67.85% 29.76% 124,145 34,245 90,010 0.12%
5840 Chemicals - 13,641 19,930 11,191 20,225 22,380 110.65% 38.64% 34,790 14,565 27,374 35.35%
5850 Computer & Instr. Supplies - - - - - - N/A 0.00%- - - N/A
Chemicals and Supplies 67,455 74,487 99,392 80,446 115,125 85,264 74.06%162,609 47,484 124,884 8.48%
5901 General Insurance - - - - - - N/A 0.00%- - - N/A
5902 Administrative Fees - - - - - - N/A 0.00%- - - N/A
5903 Water Stock Assessment - - - - - - N/A 0.00%- - - N/A
5904 Rent Exp.- - - - - - N/A 0.00%- - - N/A
5905 Miscellaneous - - - - - - N/A 0.00%- - - N/A
5906 Postage & Freight Exp.- - - - - - N/A 0.00%- - - N/A
5907 Contributions & Events - - - - - - N/A 0.00%- - - N/A
5909 Depreciation Expense - - - - - - N/A 0.00%- - - N/A
5910 Interest Expense - - - - - - N/A 0.00%- - - N/A
5911 Laundry - 931 1,305 745 1,400 1,173 83.80% 83.99%1,397 (3) 1,650 17.86%
5913 Safety - 822 3,984 1,602 4,575 4,905 107.21% 77.53%5,933 1,358 6,500 42.08%
5914 Subscriptions & Publications - - - - - - N/A 0.00%- - - N/A
5915 Outside Printing - - - - - - N/A 0.00%- - - N/A
5916 Dues & Memberships - - - - - - N/A 0.00%- - - N/A
5917 Amortization Exp.- - - - - - N/A 0.00%- - - N/A
5918 PRWUA - - - - - - N/A 0.00%- - - N/A
Other Expenses - 1,753 5,289 2,347 5,975 6,078 101.72%7,330 1,355 8,150 36.40%
Total Expenses 217,610 1,211,884 1,270,250 899,916 1,419,704 594,805 41.90%1,304,414 (115,290) 1,670,072 17.64%
Excluding personnel costs 469,798 515,649 9.76%
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
INSTRUMENTATION & ELECTRICAL (26)
Last Update:
18 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 022
Cost Center Name: Instrumentation & Electrical (26)
Last Update:
03/01/23
Account Number Account Name Description Units Quantity Unit Price Extended Amount
5110 Salary and Wage Expense Salary and wages (8 FTEs plus skill-based pay)Pay Period 26 28,099$ 730,567$
5110 Total 730,567$
5120 Overtime Premium Overtime premium Pay Period 26 231$ 6,000$
5120 Total 6,000$
5170 On Call Pay On Call Pay Daily 365 27$ 9,895$
5170 Total 9,895$
5210 Payroll Taxes Employer Portion of Payroll Taxes Pay Period 26 2,243$ 58,314$
5210 Total 58,314$
5310 Retirement Plan URS (Utah Retirement Systems) Contribution and Employer Match Pay Period 26 5,781$ 150,313$
5310 Total 150,313$
5320 Medical Insurance Premiums Insurance premiums (Medical, Dental, Vision, and H.S.A. Contribution)Monthly 12 16,129$ 193,548$
5320 Total 193,548$
5350 Insurance Premiums AD&D, Basic Life, Long Term Disability, etc.Monthly 12 482$ 5,786$
5350 Total 5,786$
5340 Meetings & Seminars Cathodic Protection Training Each 1 7,500$ 7,500$
5340 Meetings & Seminars Seminars and conferences Lump sum 2 2,000$ 4,000$
5340 Meetings & Seminars Operator Certification Renewals Each 2 150$ 300$
5340 Total 11,800$
5530 Contract Services Instrumentation maintenance, consulting, communications, and support services Lump sum 1 10,000$ 10,000$
5530 Contract Services
Point of the Mountain Water Treatment Plant (POMWTP) Finished Water Pump
Station (FWPS) variable frequency drives--emergency repairs and services Lump sum 1 10,000$ 10,000$
5530 Contract Services Fire alarm system maintenance and support services Lump sum 1 6,500$ 6,500$
5530 Contract Services
Ozone system instrumentation and electrical equipment repair, calibration, and suppor
services Lump sum 1 9,000$ 9,000$
5530 Contract Services Uninterruptible Power Supply (UPS) service contracts and maintenance Lump sum 1 17,000$ 17,000$
5530 Contract Services Cathodic protection annual survey (aqueducts and water treatment plants)Lump sum 1 18,000$ 18,000$
5530 Contract Services Cathodic protection HD survey (aqueducts and water treatment plants)Lump sum 1 18,000$ 18,000$
5530 Contract Services Ozone, UV programming and troubleshooting services Lump sum 1 15,000$ 15,000$
5530 Contract Services Allen Bradley product support Lump sum 1 11,598$ 11,598$
5530 Contract Services VFDs and RVSS, preventative maintenance, testing capacitors and cabling, cleaning Lump sum 1 10,000$ 10,000$
5530 Total 125,098$
5610 Telephone Mobile phone allowances (9)Monthly 12 360$ 4,320$
5610 Total 4,320$
5720 Machinery & Equipment Ultrasonic meter spare parts Lump sum 1 2,800$ 2,800$
5720 Machinery & Equipment Ultrasonic meter probes Each 2 1,300$ 2,600$
5720 Machinery & Equipment Instrumentation and PLC battery replacements Lump sum 1 2,000$ 2,000$
5720 Machinery & Equipment Moore Industries temperature probe Lump sum 1 5,000$ 5,000$
5720 Machinery & Equipment Turbidimeter replacement heads Each 5 6,000$ 30,000$
5720 Machinery & Equipment Turbidimeter parts and repairs Each 3 2,333$ 7,000$
5720 Machinery & Equipment Turbidimeter probe recalibrations/repairs Each 3 833$ 2,500$
5720 Machinery & Equipment pH meter parts and repairs Each 11 363$ 3,993$
5720 Machinery & Equipment Fluoride analyzer parts and repairs Each 6 666$ 3,996$
5720 Machinery & Equipment Chlorine analyzer parts and repairs Each 2 600$ 1,200$
5720 Machinery & Equipment Chlorine calibration kits Lump sum 1 4,200$ 4,200$
5720 Machinery & Equipment Chlorine detector parts Each 7 223$ 1,560$
5720 Machinery & Equipment Ozone analyzer replacement probes Lump sum 1 3,050$ 3,050$
5720 Machinery & Equipment Ozone generator dielectrics Lump sum 1 49,900$ 49,900$
5720 Machinery & Equipment Ozone system instrumentation and controls repairs and replacement parts Lump sum 1 12,000$ 12,000$
5720 Machinery & Equipment Ozone ambient air detector calibration kits Each 5 440$ 2,200$
5720 Machinery & Equipment Ozone ambient air sensors Each 6 125$ 750$
5720 Machinery & Equipment Ozone control boards Each 4 250$ 1,000$
5720 Machinery & Equipment Ozone calibration acuvacs Lump sum 1 750$ 750$
5720 Machinery & Equipment Calibration kits Each 2 1,600$ 3,200$
5720 Machinery & Equipment Hydrogen Sensors Each 3 500$ 1,500$
5720 Machinery & Equipment Remote site actuator repairs Lump sum 1 3,050$ 3,050$
5720 Machinery & Equipment Actuator contactor replacements Each 4 388$ 1,550$
5720 Machinery & Equipment Solid state contactor Each 2 600$ 1,200$
5720 Machinery & Equipment UPS and VFD air filters Each 60 8$ 450$
5720 Machinery & Equipment Anionic system controls Lump sum 1 1,000$ 1,000$
5720 Machinery & Equipment Confined space monitoring equipment cell sensors Each 8 250$ 2,000$
5720 Machinery & Equipment PC/S Filter table cabinet hardware Lump sum 1 1,250$ 1,250$
5720 Machinery & Equipment PLC repairs and replacement parts Lump sum 1 20,000$ 20,000$
5720 Machinery & Equipment PC/S RTU equipment repairs and replacement parts Lump sum 1 3,000$ 3,000$
5720 Machinery & Equipment PC/S RTU equipment cabinet heaters Each 3 666$ 1,998$
5720 Machinery & Equipment SLA Provo Canyon RTU overflow batteries Each 8 150$ 1,200$
5720 Machinery & Equipment
Misc. instrument replacement parts (instrument components, fittings, sample line/hos
materials, etc.)Lump sum 1 1,500$ 1,500$
5720 Machinery & Equipment UV lamps Each 25 320$ 8,000$
5720 Machinery & Equipment UV boards/ballasts Each 10 1,250$ 12,500$
5720 Machinery & Equipment UV quality transmitter sensors Lump sum 1 1,500$ 1,500$
5720 Machinery & Equipment Headloss differential pressure meters for LCWTP filters Each 4 3,750$ 15,000$
5720 Machinery & Equipment Instrumentation equipment replacement Lump sum 1 25,000$ 25,000$
5720 Total 241,397$
5810 General Supplies Tools and equipment Lump sum 1 7,500$ 7,500$
5810 Total 7,500$
Fiscal Year 2024 General Expenditures Worksheet
19 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 023
Cost Center Name: Instrumentation & Electrical (26)
Last Update:
03/01/23
Account Number Account Name Description Units Quantity Unit Price Extended Amount
Fiscal Year 2024 General Expenditures Worksheet
5830 Materials Electrical materials and supplies (conduit, parts, fuses, etc.)Lump sum 1 7,000$ 7,000$
5830 Materials Electrical motor replacements Lump sum 1 10,000$ 10,000$
5830 Materials Emergency lights and batteries (power outages, etc.)Each 10 200$ 2,000$
5830 Materials LCWTP LED replacement light fixtures Each 30 667$ 20,010$
5830 Materials Building heater replacements Each 2 3,000$ 6,000$
5830 Materials Fuses for electrical gear Lump sum 1 2,000$ 2,000$
5830 Materials UPS battery replacements for LCWTP and POMWTP systems Lump sum 1 40,000$ 40,000$
5830 Materials Small UPS replacements Each 4 750$ 3,000$
5830 Total 90,010$
5840 Chemicals Turbidimeter formicin Each 5 200$ 1,000$
5840 Chemicals Chlorine analyzer buffer & analyzer solutions Lump sum 220 100$ 22,000$
5840 Chemicals Chlorine calibration bottles for chlorine detectors Each 2 225$ 450$
5840 Chemicals pH # 4, 7, and 10 calibration buffers Each 3 333$ 999$
5840 Chemicals Chemwipes Each 1 325$ 325$
5840 Chemicals Terminal Reservoir--hardness monitor reagent Lump sum 1 2,000$ 2,000$
5840 Chemicals Confined space monitor calibration gas Lump sum 1 600$ 600$
5840 Total 27,374$
5911 Laundry Uniforms Lump sum 1 1,650$ 1,650$
5911 Total 1,650$
5913 Safety Nitrile gloves Lump sum 1 500$ 500$
5913 Safety Arcflash electrical safety clothing and protective equipment Lump sum 1 2,000$ 2,000$
5913 Safety Personal protective equipment (includes safety shoes)Lump sum 1 4,000$ 4,000$
5913 Total 6,500$
20 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 024
02/16/23
Account Description
Actual
FY 2020
Actual
FY 2021
Actual
FY 2022
3-Year
Average
(FY 2020-2022)
Budget
FY 2023
Actual
12/31/2022
% of Total
Spent YTD
FY 2023
% of Total
Spent YTD
3-year
average
Projected
Spend
FY 2023
Projected
Spend to
Budget
over/(under)
for FY 2023
Budget
FY 2024
% Change
from
FY 2023
Budget
5110 Salary & Wage Exp.408,267 437,741 458,755 434,921 500,006 232,723 46.54% 44.30% 511,229 11,223 466,004 -6.80%
5120 Overtime Premium 1,347 1,750 1,633 1,577 1,482 626 42.27% 37.04%1,560 78 1,482 0.00%
5131 Sick Leave - - - - - - N/A 0.00%- - - N/A
5160 Vehicle Allowance - - - - - - N/A 0.00%- - - N/A
5170 On Call Pay - - - - - - N/A 0.00%- - - N/A
5190 Other - - - - - - N/A 0.00%- - - N/A
5210 Payroll Taxes 30,387 33,151 35,435 32,991 39,113 17,727 45.32% 44.73% 39,346 233 36,569 -6.50%
Salaries and Wages 440,001 472,642 495,823 469,489 540,601 251,076 46.44%552,135 11,534 504,055 -6.76%
5310 Retirement Plan 82,343 88,601 93,241 88,062 102,012 49,741 48.76% 48.27% 102,511 499 94,245 -7.61%
5320 Medical Insurance Premiums 80,835 85,048 89,890 85,258 94,508 43,257 45.77% 45.43% 94,832 324 99,973 5.78%
5330 Tuition Aid Program - - - - - - N/A 0.00%- - - N/A
5350 Insurance Premiums 2,998 3,219 3,299 3,172 3,377 1,774 52.54% 48.90%3,500 123 3,759 11.30%
Employee Benefits 166,176 176,868 186,430 176,492 199,897 94,772 47.41%200,843 946 197,977 -0.96%
5340 Meetings & Seminars 1,030 1,555 3,086 1,890 1,720 1,018 59.18% 68.72%1,556 (164) 8,715 406.69%
Employee Training 1,030 1,555 3,086 1,890 1,720 1,018 59.19%1,556 (164) 8,715 406.69%
5410 Business Travel 3,996 - - 1,332 6,000 3,990 66.51% 100.00%3,990 (2,010) 6,180 3.00%
5430 Vehicle O & M - - - - 114 - 0.00% 0.00%114 - 98 -13.82%
Transportation 3,996 - - 1,332 6,114 3,990 65.26%4,104 (2,010) 6,278 2.68%
5510 Legal - - - - - - N/A 0.00%- - - N/A
5520 Accounting - - - - - - N/A 0.00%- - - N/A
5530 Contract Services 44,437 58,204 51,769 51,470 59,270 23,271 39.26% 42.85% 57,142 (2,128) 66,422 12.07%
5540 Other - - - - - - N/A 0.00%- - - N/A
Professional Services 44,437 58,204 51,769 51,470 59,270 23,271 39.26%57,142 (2,128) 66,422 12.07%
5610 Telephone 1,080 1,080 1,080 1,080 1,080 540 50.00% 50.00%1,080 - 960 -11.11%
5620 Electricity - - - - - - N/A 0.00%- - - N/A
5630 Natural Gas - - - - - - N/A 0.00%- - - N/A
5640 Radio Communications - - - - - - N/A 0.00%- - - N/A
5650 Water - - - - - - N/A 0.00%- - - N/A
Utilities 1,080 1,080 1,080 1,080 1,080 540 50.00%1,080 - 960 -11.11%
5710 Buildings & Grounds - - - - - - N/A 0.00%- - - N/A
5720 Machinery & Equipment 3,353 1,275 10,739 5,123 8,000 456 5.70% 27.63%6,246 (1,754) 16,000 100.00%
Repairs and Maintenance 3,353 1,275 10,739 5,123 8,000 456 5.70%6,246 (1,754) 16,000 100.00%
5810 General Supplies 4,730 382 621 1,911 2,000 256 12.79% 77.56%705 (1,295) 2,000 0.00%
5820 Office Supplies - 71 - 24 - 141 N/A 0.00%141 141 - N/A
5830 Materials 33,434 33,186 45,198 37,273 40,000 21,675 54.19% 44.91% 43,712 3,712 46,000 15.00%
5840 Chemicals 66,019 63,494 74,018 67,844 62,000 26,687 43.04% 45.87% 60,244 (1,756) 65,000 4.84%
5850 Computer & Instr. Supplies - - - - - - N/A 0.00%- - - N/A
Chemicals and Supplies 104,183 97,133 119,837 107,052 104,000 48,759 46.88%104,802 802 113,000 8.65%
5901 General Insurance - - - - - - N/A 0.00%- - - N/A
5902 Administrative Fees - - - - - - N/A 0.00%- - - N/A
5903 Water Stock Assessment - - - - - - N/A 0.00%- - - N/A
5904 Rent Exp.- - - - - - N/A 0.00%- - - N/A
5905 Miscellaneous - - - - - - N/A 0.00%- - - N/A
5906 Postage & Freight Exp.- - - - - - N/A 0.00%- - - N/A
5907 Contributions & Events - - - - - - N/A 0.00%- - - N/A
5909 Depreciation Expense - - - - - - N/A 0.00%- - - N/A
5910 Interest Expense - - - - - - N/A 0.00%- - - N/A
5911 Laundry 853 1,190 1,285 1,110 1,300 275 21.18% 59.76%799 (501) 1,300 0.00%
5913 Safety 742 635 536 638 1,750 513 29.31% 54.43%1,310 (440) 1,750 0.00%
5914 Subscriptions & Publications - 290 - 97 200 - 0.00% 0.00%200 - 200 0.00%
5915 Outside Printing - - - - - - N/A 0.00%- - - N/A
5916 Dues & Memberships - - - - 195 - 0.00% 0.00%195 - 195 0.00%
5917 Amortization Exp.- - - - - - N/A 0.00%- - - N/A
5918 PRWUA - - - - - - N/A 0.00%- - - N/A
Other Expenses 1,595 2,115 1,821 1,844 3,445 788 22.87%2,504 (941) 3,445 0.00%
Total Expenses 765,851 810,872 870,585 815,772 924,127 424,670 45.95%930,412 6,285 916,852 -0.79%
Excluding personnel costs 183,629 214,820 16.99%
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
LAB (50)
Last Update:
21 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 025
Cost Center Name: Lab (50)
Last Update:
02/16/23
Account Number Account Name Description Units Quantity Unit Price Extended Amount
5110 Salary and Wage Expense Salary and wages (6 FTEs)Pay Period 26 17,923$ 466,004$
5110 Total 466,004$
5120 Overtime Premium Overtime premium Pay Period 26 57$ 1,482$
5120 Total 1,482$
5210 Payroll Taxes Employer Portion of Payroll Taxes Pay Period 26 1,407$ 36,569$
5210 Total 36,569$
5310 Retirement Plan URS (Utah Retirement Systems) Contribution and Employer Match Pay Period 26 3,625$ 94,245$
5310 Total 94,245$
5320 Medical Insurance Premiums Insurance premiums (Medical, Dental, Vision, and H.S.A. Contribution)Monthly 12 8,331$ 99,973$
5320 Total 99,973$
5350 Insurance Premiums AD&D, Basic Life, Long Term Disability, etc.Monthly 12 313$ 3,759$
5350 Total 3,759$
5340 Meetings & Seminars On-line training Lump sum 1 420$ 420$
5340 Meetings & Seminars Leadership training Each 2 1,500$ 3,000$
5340 Meetings & Seminars Lims training Lump sum 1 3,845$ 3,845$
5340 Meetings & Seminars Team Building exercise Lump sum 1 300$ 300$
5340 Meetings & Seminars Operator Certification Renewals Each 3 150$ 450$
5340 Meetings & Seminars Laboratory Certification Training Seminar Each 2 100$ 200$
5340 Meetings & Seminars Refreshments for Lab meetings Lump sum 1 500$ 500$
5340 Total 8,715$
5410 Business Travel Water Quality Technology Conference Each 1 2,500$ 2,500$
5410 Business Travel AWWA Intermountain Section Annual Conference Each 1 1,500$ 1,500$
5410 Business Travel AWWA Intermountain Section Mid-Year Conference Each 1 180$ 180$
5410 Business Travel Laboratory instrument specific training Each 1 2,000$ 2,000$
5410 Total 6,180$
5430 Vehicle O&M Mileage Reimbursement Miles 150 0.66$ 98$
5430 Total 98$
5530 Contract Services Laboratory Information Management System programming Lump sum 1 8,000$ 8,000$
5530 Contract Services Gas Chromatograph Mas Spectrometer Service Contract (THMs only)Lump sum 1 4,913$ 4,913$
5530 Contract Services Gas Chromatograph Service Contract (HAAs only)Lump sum 1 4,282$ 4,282$
5530 Contract Services Total Organic Carbon Instrument Preventive Maintenance Lump sum 1 2,000$ 2,000$
5530 Contract Services Inductive Couple Plasma/Mass Spectrometer Lump sum 1 -$ -$
5530 Contract Services Ion Chromatograph Lump sum 1 4,000$ 4,000$
5530 Contract Services Hazardous waste chemical disposal Lump sum 1 2,000$ 2,000$
5530 Contract Services Data loggers calibrations Lump sum 1 911$ 911$
5530 Contract Services Turbidimeters calibrations Lump sum 1 1,088$ 1,088$
5530 Contract Services Weights calibrations Lump sum 1 1,476$ 1,476$
5530 Contract Services Thermometer calibration Lump sum 1 250$ 250$
5530 Contract Services Laboratory certification Lump sum 1 3,630$ 3,630$
5530 Contract Services Giarda & Crypto monitoring Lump sum 1 15,373$ 15,373$
5530 Contract Services Laboratory audits Lump sum 1 4,000$ 4,000$
5530 Contract Services Compliance testing Lump sum 1 1,000$ 1,000$
5530 Contract Services PFAs Lump sum 1 6,000$ 6,000$
5530 Contract Services Miscellaneous testing Lump sum 1 2,000$ 2,000$
5530 Contract Services Geosmin/MIB monitoring Lump sum 1 500$ 500$
5530 Contract Services Lab consulting services Lump sum 1 5,000$ 5,000$
5530 Total 66,422$
5610 Telephone Mobile Phone Allowances (2)Monthly 12 80$ 960$
5610 Total 960$
5720 Machinery & Equipment Lab equipment repair & replacement Lump sum 1 3,000$ 3,000$
5720 Machinery & Equipment Microscope Lump sum 1 6,000$ 6,000$
5720 Machinery & Equipment Turbidimeters Lump sum 1 2,000$ 2,000$
5720 Machinery & Equipment Pilot Plant equipment repair & replacement Lump sum 1 3,000$ 3,000$
5720 Machinery & Equipment Spare parts, equipment & instruments Lump sum 1 2,000$ 2,000$
5720 Total 16,000$
5810 General Supplies General supplies Lump sum 1 2,000$ 2,000$
5810 Total 2,000$
5830 Materials Laboratory materials Lump sum 1 46,000$ 46,000$
5830 Total 46,000$
5840 Chemicals Laboratory chemicals Lump sum 1 65,000$ 65,000$
5840 Total 65,000$
5911 Laundry Uniforms Lump sum 1 1,300$ 1,300$
5911 Total 1,300$
5913 Safety Lab safety equipment Lump sum 1 600$ 600$
5913 Safety Safety shoes Each 6 125$ 750$
5913 Safety Safety prescription glasses Each 2 200$ 400$
5913 Total 1,750$
5914 Subscriptions & Publications Laboratory reference materials Lump sum 1 200$ 200$
5914 Total 200$
5916 Dues & Membership American Chemical Society Lump sum 1 195$ 195$
5916 Total 195$
Fiscal Year 2024 General Expenditures Worksheet
22 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 026
Last Update:
03/01/23
Account Description
Actual
FY 2020
Actual
FY 2021
Actual
FY 2022
3-Year
Average
(FY 2020-2022)
Budget
FY 2023
Actual
12/31/2022
% of Total
Spent YTD
FY 2023
% of Total
Spent YTD
3-year
average
Projected
Spend
FY 2023
Projected
Spend to
Budget
over/(under)
for FY 2023
Budget
FY 2024
% Change
from
FY 2023
Budget
5110 Salary & Wage Exp.- - - - - - N/A 0.00%- - - N/A
5120 Overtime - - - - - - N/A 0.00%- - - N/A
5210 Payroll Taxes - - - - - - N/A 0.00%- - - N/A
Salaries and Wages - - - - - - N/A - - - N/A
5310 Retirement Plan - - - - - - N/A 0.00%- - - N/A
5320 Medical Insurance Premiums - - - - - - N/A 0.00%- - - N/A
5330 Tuition Aid Program - - - - - - N/A 0.00%- - - N/A
5350 Insurance Premiums - - - - - - N/A 0.00%- - - N/A
Employee Benefits - - - - - - N/A - - - N/A
5340 Meetings & Seminars - - - - - - N/A 0.00%- - - N/A
Employee Training - - - - - - N/A - - - N/A
5410 Business Travel - - - - - - N/A 0.00%- - - N/A
5430 Vehicle O & M - - - - 30,000 - 0.00% 0.00% 30,000 - - -100.00%
Transportation - - - - 30,000 - 0.00% 30,000 - - -100.00%
5510 Legal - - - - - - N/A 0.00%- - - N/A
5520 Accounting - - - - - - N/A 0.00%- - - N/A
5530 Contract Services - - - - 385,000 115,449 29.99% 0.00% 500,449 115,449 375,000 -2.60%
5540 Other - - - - - - N/A 0.00%- - - N/A
Professional Services - - - - 385,000 115,449 29.99%500,449 115,449 375,000 -2.60%
5610 Telephone - - - - - - N/A 0.00%- - - N/A
5620 Electricity - - - - - - N/A 0.00%- - - N/A
5630 Natural Gas - - - - - - N/A 0.00%- - - N/A
5640 Radio Communications - - - - - - N/A 0.00%- - - N/A
5650 Water - - - - - - N/A 0.00%- - - N/A
Utilities - - - - - - N/A - - - N/A
5710 Buildings & Grounds - - - - - - N/A 0.00%- - - N/A
5720 Machinery & Equipment - - - - 550,000 342,956 62.36% 0.00% 892,956 342,956 460,443 -16.28%
Repairs and Maintenance - - - - 550,000 342,956 62.36%892,956 342,956 460,443 -16.28%
5810 General Supplies - - - - - - N/A 0.00%- - - N/A
5820 Office Supplies - - - - - - N/A 0.00%- - - N/A
5830 Materials - - - - - - N/A 0.00%- - - N/A
5840 Chemicals - - - - - - N/A 0.00%- - - N/A
5850 Computer & Instr. Supplies - - - - - - N/A 0.00%- - - N/A
Chemicals and Supplies - - - - - - N/A - - - N/A
5901 General Insurance - - - - - - N/A 0.00%- - - N/A
5902 Administrative Fees - - - - - - N/A 0.00%- - - N/A
5903 Water Stock Assessment - - - - - - N/A 0.00%- - - N/A
5904 Rent Exp.- - - - - - N/A 0.00%- - - N/A
5905 Miscellaneous - - - - - - N/A 0.00%- - - N/A
5906 Postage & Freight Exp.- - - - - - N/A 0.00%- - - N/A
5907 Contributions and Events - - - - - - N/A 0.00%- - - N/A
5909 Depreciation Exp.- - - - - - N/A 0.00%- - - N/A
5910 Interest Exp.- - - - - - N/A 0.00%- - - N/A
5911 Laundry - - - - - - N/A 0.00%- - - N/A
5913 Safety - - - - - - N/A 0.00%- - - N/A
5914 Subscriptions & Publications - - - - - - N/A 0.00%- - - N/A
5915 Outside Printing - - - - - - N/A 0.00%- - - N/A
5916 Dues & Memberships - - - - - - N/A 0.00%- - - N/A
5917 Amortization Expense - - - - - - N/A 0.00%- - - N/A
5918 PRWUA - - - - - - N/A 0.00%- - - N/A
Other Expenses - - - - - - N/A - - - N/A
Total Expenses - - - - 965,000 458,405 47.50%1,423,405 458,405 835,443 -13.43%
Excluding personnel costs 965,000 835,443 -13.43%
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
TOTAL DISTRICT NON-ROUTINE O&M (60)
23 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 027
Cost Center Name: Total District Non-Routine O&M (60)
Last Update:
03/01/23
Account Number Account Name Description Submitted by: Units Quantity Unit Price
Extended Amount
5530 Contract Services Arc Flash Assessment (LCWTP)Wayne Winsor Lump sum 1 200,000$ 200,000$
5530 Contract Services LCWTP LCC Pump Station Assessment Wayne Winsor Lump sum 1 25,000$ 25,000$
5530 Contract Services IT Master Plan Wayne Winsor Lump sum 1 150,000$ 150,000$
5530 Total 375,000$
5720 Machinery & Equipment LCWTP Caustic Feed Pump Replacement Wayne Winsor Lump sum 1 45,000$ 45,000$
5720 Machinery & Equipment LCWTP Floc/Sed - Bearings Wayne Winsor Each 1 50,000$ 50,000$
5720 Machinery & Equipment LCWTP Actuator Replacements Wayne Winsor Each 8 13,688$ 109,500$
5720 Machinery & Equipment LCWTP Ozone Control Valve Replacement (Refurbishment)Wayne Winsor Lump sum 3 6,667$ 20,000$
5720 Machinery & Equipment Other Non-Capital Spare Parts (Expensed Assets)Wayne Winsor Each 1 160,943$ 160,943$
5720 Machinery & Equipment Miscellaneous Repairs and Replacements Wayne Winsor Lump sum 1 75,000$ 75,000$
5720 Total 460,443$
Fiscal Year 2024 General Expenditures Worksheet
24 of 49 2023.03.28 Budget workbook FY 2024--draft.proposed tax and water rate
Budget 028
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated: March 29, 2023
ROUTINE NON-CAPACITY IMPROVEMENT PROJECTS
Salt Lake Aqueduct Replacement - Cottonwoods Conduit* 12,885,900$
SLAR-CC Easement Procurement* 400,000$
LCC Replacement and Intake Modifications* 200,000$
POMWTP PC/S Hardware Replacement 250,000$
Fleet Replacement Program 200,000$
Little Dell Dam Improvements 400,000$
Repair and Replace 670,500$
Subtotal 15,006,400$
CAPACITY IMPROVEMENT PROJECTS
Managed Aquifer Recharge Design and Construction 4,550,000$
Salt Lake Aqueduct Replacement - Cottonwoods Conduit* 6,575,500$
Subtotal 11,125,500$
OTHER CAPITAL IMPROVEMENT PROJECTS
Jordan Aqueduct System and 150th South Pipeline 4,830,551$
Central Utah Project (CUP) Capital 3,815,423$
Subtotal 8,645,974$
TOTAL 34,777,874$
OUTSIDE FUNDING SOURCES
Loans, Grants, Assessments 19,461,400$
Subtotal 19,461,400$
NET TOTAL 15,316,474$
NON-ROUTINE OPERATION & MAINTENANCE PROJECTS
Repair and Replace 835,443$
Subtotal 835,443$
* Multi-year project; see individual project detail.
Budget 029
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated:3/15/2023 Account No.:1802C-10
Department:Engineering Location:Salt Lake Aqueduct
Contact Name:Kelly Stevens Request Type:Non-Capacity/Capacity Improvement Project
Title:Salt Lake Aqueduct Replacement - Cottonwoods Conduit
Description:
Justification:
Budget:
Quantity Unit Price Extended Amount
1 2,105,400$ 2,105,400$
1 17,356,000$ 17,356,000$
19,461,400$
Fiscal Year Summary (multi-year project):
Spent
(Prior to FY2023)
Current Budget
(FY2023)
Proposed Budget
(FY2024)
Remaining
(FY 2025)
Gross
Total Project
-$ 1,184,700$ 19,461,400$ 34,712,000$ 55,358,100$
Funding Sources:
Quantity Unit Price Extended Amount
1 34,450,000$ 34,450,000$
1 20,912,000$ 20,912,000$
55,362,000$
Project Annual Budget Summary:
Source
Current Budget
(FY2023)
Proposed Budget
FY2024
Est. Budget
FY2025 Total Project
MWDSLS $12,885,900 $21,561,000 $34,446,900
Salt Lake City $ 1,184,700 $6,575,500 $13,151,000 $20,911,200
Total Project:55,358,100$
New pipeline to connect LCWTP and BCWTP and for Phase 1 of SLA/FW replacement.
Description
MWDSLS
Salt Lake City
Total
The Salt Lake Aqueduct Replacement - Cottonwoods Connection will install a new pipeline to
connect the Big Cottonwood Water Treatment Plant (BCWTP) and Little Cottonwood Water
Treatment Plant (LCWTP). Phase 1 will convey raw water from Big Cottonwood Creek to the
LCWTP while the BCWTP is rebuilt. At an undetermined time after BCWTP is completed, the
pipeline will be converted to a finished water facility as the first part of a parallel Salt Lake
Aqueduct replacement to convey 145mgd north of the LCWTP and resolve hydraulic
limitations between the LCWTP and 10 Million Gallon Reservoir.
Design is in progress. Construction is anticipated to begin January 1, 2024.
Description
Design
Construction
Total
Budget 030
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated:3/9/2023 Account No.:1802B-10
Department:Engineering Location:Salt Lake Aqueduct
Contact Name:Wayne Winsor Request Type:Non-Capacity Improvement Project
Title:SLAR-CC Easement Procurement
Description:Procure easement for the Salt Lake Aqueduct Replacement.
Justification:
Budget:
Quantity Unit Price Extended Amount
1 400,000$ 400,000$
400,000$
Fiscal Year Summary (multi-year project):
Spent
(Prior to FY2023)
Current Budget
(FY2023)
Proposed Budget
(FY2024)
Remaining
(FY 2025)Total Project
-$ -$ 400,000$ 100,000$ 500,000$
The Salt Lake Aqueduct Replacement - Cottonwoods Connection project will require
easement acquisition for the Salt Lake Aqueduct portion of the project where the pipeline
and its construction are not in a public road.
Description
Easement Acquisition
Total
Budget 031
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated:3/9/2023 Account No.:1827-10
Department:Engineering Location:Little Cottonwood Conduit
Contact Name:Kelly Stevens Request Type:Non-Capacity Improvement Project
Title:LCC Replacement and Intake Modifications
Description:Replace the raw water Little Cottonwood Conduit and modify the lower intake structure.
Justification:
Budget:
Quantity Unit Price Extended Amount
1 200,000$ 200,000$
-$
200,000$
Fiscal Year Summary (multi-year project):
Proposed Budget
(FY2023)
Proposed Budget
(FY2024)
Proposed Budget
(FY2025)
Remaining Budget
(FY2026)
Total Project
$200,000 $2,800,000 3,000,000$
Total
In recent years impacts on the Murray penstock and hydroplant prevented the District
from obtaining and treating available Little Cottonwood Creek water. Inspections of the
Little Cottonwood Conduit in 2011, 2012, and 2015 suggest the pipeline is in poor
condition. Hydraulic and operational limitations at the Little Cottonwood Creek intake
have also prevented the District from capturing creek water.
This project seeks to improve supply reliability from Little Cottonwood Creek by
replacing the Little Cottonwood Conduit and resolving limitations at the intake structure.
The project is anticipated to occur in line with the Salt Lake Aqueduct Replacement,
insomuch as both projects will impact raw water supplies and connections upstream of the
grit basin.
The District obtained ownership of the raw water Little Cottonwood Conduit in 2014.
Description
Design
Budget 032
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated:2/1/2023 Account No.:1807-10
Department:I&E Location:District-wide
Contact Name:Scot Collier Request Type:Non-Capacity Improvement Project
Title:PC/S Hardware Replacement
Description:Replace and update Process Control / SCADA system hardware at POMWTP.
Justification:
Budget:
Quantity Unit Price Extended Amount
1 250,000$ 250,000$
250,000$
Fiscal Year Summary (multi-year project):
Spent
(Prior to FY2023)
Current Budget
(FY2023)
Proposed Budget
(FY2024)
Remaining
(FY 2025) Total Project
-$ 200,000$ 250,000$ -$ 450,000$
The process control / SCADA system (PC/S) at POMWTP was installed between 2006
and 2008 and is critical for plant operation. Many of the components at POMWTP are
beyond their design life and are no longer supported. Spare parts are no longer made.
The Power Monitoring Upgrade in FY2019 and 2020 upgraded the firmware and
programming on most of the PC/S equipment at POMWTP, gaining three additional
years of life for the equipment. It is now time to replace it. The first half of the
equipment will be replaced in early 2023; the second half of the equipment will be
replaced in FY2024.
Description
Construction
Total
Budget 033
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated:2/1/2023 Account No.:1848-10
Department:Maintenance Location:LCWTP Site
Contact Name:Michael Carter Request Type:Non-Capacity Improvement Project
Title:Fleet Replacement Program
Description:Replace two trucks and an SUV, and expand the fleet by an SUV.
Budget:
Quantity Unit Price Extended Amount
1 55,000$ 55,000$
1 55,000$ 55,000$
1 45,000$ 45,000$
1 45,000$ 45,000$
200,000$ Total
Vehicle #53, a 2012 Dodge Ram 1500 is expected to have over 150,000 miles at
replacement. Score: 15.37
Description
Vehicle 76 (1/2 ton - replaces 53)
Vehicle 77 (1/2 ton - replaces 54)
Vehicle 79 (SUV - new)
Justification:
Vehicle #54, a 2012 Dodge Ram 2500 is expected to have over 160,000 miles at
replacement and is seeing increased maintenance costs. Score: 16.68
Vehicle #56, a 2013 Dodge Durango is expected to have over 165,000 miles at
replacement and is seeing increased maintenance costs. Score: 15.81
As infrastructure and staff expand, the need for transportation increases. The Engineering
and IT departments share a vehicle. Scheduling for the vehicle has become difficult with
several competing interests and projects. Staff plans to reassign the existing vehicle to IT
and acquire a separate vehicle for Engineering.
Vehicle 78 (SUV - replaces 56)
Budget 034
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated:3/23/2023 Account No.:1840-10
Department:Engineering Location:Little Dell Dam
Contact Name:Wayne Winsor Request Type:Salt Lake City Public Utilities
Title:Little Dell Dam Improvements
Description:Improvements as identified by Salt Lake City Department of Public Utilities.
Justification:
Budget:
Quantity Unit Price Extended Amount
1 400,000$ 400,000$
400,000$
Based upon current request from Salt Lake City Public Utilities.
Description
Total
Replace control panel
Budget 035
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated:3/2/2023 Account No.:Multiple
Department:Engineering Location:Various
Contact Name:Wayne Winsor Request Type:Non-Capacity Improvement Project
Title:Repair and Replace
Description:Routine repair and replace non-capacity capital investments.
Justification:
Budget:
Account No. Extended Amount
1845-10 12,000$
1845-10 65,000$
1845-10 50,000$
1803-10 150,000$
CCTV Hardware Replacement 1845D-10 130,000$
1845-10 35,000$
1847-10 108,500$
1818-10 70,000$
1813-10 50,000$
670,500$
LCWTP Update Fuel Tank and Dispenser Monitoring Hardware
LCWTP Flash Mix Replacement
POMFWP RVSS Replacement
Description
The District's closed circuit television (CCTV) security system is 20 years old at LCWTP and 14
years old at POMWTP. The equipment has exceeded its expected life and is no longer supported
by the manufacturer. The remaining two years of this project will split camera replacement at
POMWTP.
The lab department requires replacement of an organics laboratory dishwasher, auto titrator, and
microscope.
The District operates servers on multiple networks. These servers have a life expectancy of
seven years. New servers host the most critical services for the first three to five years of the
lifecycle and then are moved to a less critical role for the remainder of the life cycle.
LCWTP Ozone Control Valve Replacement
Control valves on the LCWTP ozone system were inspected in 2021. The valves are wearing
from use, with five of the eleven valves identified for replacement. These valves will be
proactively replaced over the next four years, beginning with ozone destruct.
The District's fuel tank and dispenser monitoring hardware was installed in 2011. The equipment
is at the end of its life and the software is no longer supported. This project will replace both
with a more current, reliable, and supported system.
The LCWTP flash mixers introduce and mix chemical into water upstream of flocculation. The
flash mixers are failing, with one being replaced in FY23 in the miscellaneous repair and
replace. The second flash mixer will be replaced in FY24.
The Point of the Mountain Finished Water Pump Station has five pumps - two are operated with
variable frequency drives (VFD) and three with reduced-voltage soft starts (RVSS). The
equipment has reached the end of its design life and is experiencing increased maintenance and
operation issues. One RVSS was replaced in FY22 and the two VFDs are being replaced in
FY23. Staff plans to replace the remaining two RVSS, one each in FY24 and FY25.
Total
UPS Replacement
Lab Equipment Replacement
Annual Network Server Replacement
Other Miscellaneous Repairs and Replacements
Budget 036
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated:2/2/2023 Account No.:1865-10
Department:Engineering Location:District-wide
Contact Name:Ammon Allen Request Type:Capacity Improvement Project
Title:Managed Aquifer Recharge Design and Construction
Description:Construct aquifer recharge facilities at the LCWTP
Justification:
Budget:
Quantity Unit Price Extended Amount
1 250,000$ 250,000$
1 4,300,000$ 4,300,000$
4,550,000$
Fiscal Year Summary (multi-year project):
Spent
(Prior to FY2023)
Anticipated Spend
(FY2023)
Proposed Budget
(FY2024)
Remaining
(FY 2025) Total Project
83,940$ 4,300,000$ 4,550,000$ 25,000$ 8,958,940$
Outside Funding Sources:
Quantity Unit Price Extended Amount
1 3,000,000$ 3,000,000$
Project Annual Budget Summary (ASR Reserve - top, MWD Other - middle, ARPA - bottom):
Prior Budget
(FY2022)
Current Budget
(FY2023, est.)
Proposed Budget
(FY 2024)
Est. Budget
(FY 2025)Total Project
126,622$ 2,492,280$ 1,496,203$ 4,115,105$
-$ -$ 1,843,835$ 25,000$ 1,868,835$
35,286$ 1,807,720$ 1,156,994$ -$ 3,000,000$
Description
State Grant (ARPA)
The District's 2021 Managed Aquifer Recharge (MAR) Implementation Plan
includes a six-phase approach to storing up to 8,790 ac-ft of water annually in the
ground. The District successfully obtained funding from the American Rescue Plan
Act (ARPA) to construct portions of the first two project phases (pilot and Phase 1)
which will include surface infiltration basins and an aquifer storage and recovery
well.
Description
Design
Construction
Total
Budget 037
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated:2/7/2023 Account No.:1599-10
Department:Engineering Location:Other
Contact Name:Wayne Winsor Request Type:JA Management
Title:Jordan Aqueduct System and 150th South Pipeline
Description:Projects for FY 2024 are listed below.
Justification:
Budget:
Quantity Unit Price Extended Amount
1 385,714$ 385,714$
1 285,714$ 285,714$
1 171,429$ 171,429$
1 2,207,143$ 2,207,143$
1 714,286$ 714,286$
1 450,000$ 450,000$
1 289,530$ 289,530$
1 240,771$ 240,771$
1 22,714$ 22,714$
1 13,250$ 13,250$
1 50,000$ 50,000$
4,830,551$
Outside Funding Sources:
Quantity Unit Price Extended Amount
1 1,545,000$ 1,545,000$
1,545,000$
Net Budget Request: 3,285,551$
JVWCD project management expenses
Total
Description
BRIC Grant - JVWTP Floc/Sed 1-2 Seismic Upgrade
Total
MWDSLS is responsible to pay 2/7ths of JA system improvements which include Jordan Aqueduct
Reaches 1 - 4, Jordan Valley Water Treatment Plant (JVWTP), and the JA Terminal Reservoir.
MWDSLS is responsible for 50% of improvements associated with the 150th South Pipeline. The
MWDSLS portion is shown below.
Description
150th South normal maintenance and replacement
JVWTP Sed Basins 3-6 Mechanical Equipment
JA TR Basins 3, 4 Roof Deck Joint Sealant Replacement
JVWTP Sed Basins 1-2 Mechanical Equipment
JVWTP pH Control Chemical Feed Facility
JVWTP Utility Water and Backwash Tank Back-up
JVWTP Floc/Sed 1-2 Seismic Upgrade
JA normal maintenance and replacement
JVWTP normal maintenance and replacement
TR normal maintenance and replacement
Budget 038
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated:2/1/2023 Account No.:1853-10
Department:Administration Location:Other
Contact Name:Wayne Winsor Request Type:CUP
Title:Central Utah Project (CUP) Capital
Description:
Justification:
Budget:
Quantity (ac-ft) Unit Price Extended Amount
20000 148.560$ 2,971,200$
3100 272.330$ 844,223$
3,815,423$ Total
CUP allotment payment
Capital improvements.
This budget item reflects costs paid to Central Utah Water Conservancy District for the
construction of Jordanelle Dam and other related improvements for the Bonneville Unit
Municipal and Industrial system.
Description
Salt Lake City CUP ULS petition payment
Budget 039
Metropolitan Water District of Salt Lake & Sandy
FY2024 Capital Budget
Last Updated:2/9/2023 Account No.:Various
Department:Engineering Location:Various
Contact Name:Wayne Winsor Request Type:Operation & Maintenance
Title:Non-Routine Operation & Maintenance
Description:Non-routine repair and replace projects.
Justification:
Account No.
Extended
Amount
1
5530-60 200,000$
2 5530-60 25,000$
3
5530-60 150,000$
4
5720-60 45,000$
5
5720-60 50,000$
6
5720-60 109,500$
7
5720-60 20,000$
8
5720-60 160,943$
9 5720-60 75,000$
835,443$
LCWTP Arc Flash Coordination: The National Fire Protection Association (NFPA) Standard for Electrical Safety in
the Workplace mandates reviewing the arc flash study of a facility a maximum of every five years. Recent changes at
the LCWTP make this effort timely.
Description
LCWTP Ozone Control Valve Replacement: Control valves on the LCWTP ozone system were inspected in 2021.
Three of these valves will be reconditioned with one acting as a spare.
LCWTP Caustic Feed Pump Replacement: LCWTP chemical feed pumps were replaced in 2016 and 2018. The
caustic feed pumps were not addressed in that project and now need to be replaced.
LCWTP Floc/Sed - Bearings: Much of the equipment in the LCWTP flocculation and sediumentation basins is
original to construction (1960). Staff is proactively maintaining the equipment, replacing as necessary, and
purchasing additional spare parts to address future breaks more readily. This year the District hopes to purchase floc
shaft bearings and sedimentation chains and pins.
LCWTP Actuator Replacement Program: LCWTP actuators are beyond their expected life and are failing. This year
staff hopes to purchase five actuators for the flocculation inlet gates, plus the connection structure inlet and outlet
valves, and the filter-to-waste inlet valve (8 total).
Other Non-Capital Spare Parts: The District sometimes acquires capital-funded spare parts, reports, and drawings
that become obsolete or are transitioned to an O&M project before they are installed or built. Once identified, these
items must be expensed through the District's operating budget. This year the District will expense an anionic
polymer blend pump, flowmeter transducers and cables, POMA lids, and the scrubber building remediation design.
Miscellaneous Repairs and Replacements
Total
IT Master Plan: The Information Technology department has many project needs. A master plan will be developed to
prioritize and define these projects.
LCWTP LCC Pump Station Assessment:
Budget 040
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
Revenue Projections
Last Update: March 27, 2023
Fiscal Year 2023
Adopted Budget
Actuals as of
12/31/2022
Estimated
Actuals
6/30/2023
Fiscal Year 2024
Tentative Budget
Operating Revenues
Water Sales
Salt Lake City $16,622,883 $8,311,442 $16,622,883 $17,121,570
Sandy City $6,464,455 $3,232,227 $6,464,455 $6,658,388
Jordanelle Special Service District (JSSD)$207,575 $107,575 $207,575 $209,081
Raw water sales plus conveyance to non-member entities $707,280 $445,130 $610,271 $714,184
Treatment charges and conveyance fees for non-member entities $601,156 $214,029 $351,087 $619,094
Total Operating Revenues $24,603,349 $12,310,403 $24,256,271 $25,322,317
Other Revenues
Tax Revenues
Salt Lake City $8,353,294 $7,030,119 $8,068,821 $13,551,456
Sandy City $2,743,524 $2,310,526 $2,525,989 $4,185,466
Fees in Lieu of Taxes $407,231 $222,777 $425,507 $398,436
Prior Years' Tax Revenue $200,342 $42,177 $175,991 $286,907
Subtotal Tax Revenues $11,704,390 $9,605,599 $11,196,308 $18,422,265
Capital Assessments
Salt Lake City $7,021,892 $3,510,946 $7,021,892 $7,021,892
Salt Lake City (SLAR-CC)$6,575,500
Sandy City $4,210,322 $2,105,161 $4,210,322 $4,210,322
Sandy City Ontario Drain Tunnel Assessment $832,506 $416,253 $832,506 $854,183
Less: JSSD Revenue (see above)$207,575 $0 $207,575 $209,081
Net Sandy City Ontario Drain Tunnel Assessment $624,931 $416,253 $624,931 $645,102
Salt Lake City Central Utah Project Utah Lake System Assessment $844,223 $0 $844,223 $844,223
Subtotal Assessment Revenues $12,701,368 $6,032,360 $12,701,368 $19,297,039
Interest $411,387 $850,206 $1,867,307 $866,291
Miscellaneous Revenue (includes bond proceeds)$208,117 $81,032 $271,344 $34,689,246
Subtotal $619,505 $931,239 $2,138,651 $35,555,537
Total Other Revenues $25,025,263 $16,569,198 $26,036,327 $73,274,840
Total Revenue $49,628,612 $28,879,601 $50,292,598 $98,597,157
37 of 49 Budget 041
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
Reserve Funds
Last Update: March 28, 2023
Description Category type
Approved
FY 2023
Proposed
FY 2024
Required Operations and Maintenance Reserve Restricted $6,764,166 $6,744,042
Required Capital Projects Reserve Restricted $650,000 $650,000
Jordan Aqueduct Reserve Restricted $43,921 $44,626
JVWTP O&M Reserve Restricted $20,000 $20,000
150th South Pipeline Agreement Restricted $36,031 $36,609
Capital Projects Reserve Assigned $43,571,973 $15,468,508
Self-Insurance/Contingency Reserve Assigned $2,000,000 $2,000,000
Interest Rate Stabilization Reserve Assigned $3,284,866 $3,284,866
Aquifer Storage and Recovery (ASR) Reserve Assigned $2,332,507 $0
Unassigned Reserves Unassigned $6,997,747 $52,719,842
Totals $65,701,211 $80,968,492
Metropolitan Water District of Salt Lake & Sandy
Fiscal Year 2024
Debt Service Coverage on Outstanding Bonds
Last Update: March 28, 2023
Budgeted O&M Expenses $44,837,979
Less: Interest expense, depreciation, and amortization $17,861,812
Adjusted O&M Expense $26,976,167
Budgeted Revenues $98,597,157
Less: adjusted O&M Expense $26,976,167
Funds Available for Debt Service Payments $71,620,990
Debt Service Payments $19,308,448
Coverage (funds available/debt service payments) 3.71
Minimum coverage required 1.15
38 of 49 Budget 042
Metropolitan Water District of Salt Lake & Sandy
Fee Schedule Fiscal Year 2024
Last update: March 27, 2023
Description FY 2023 Approved FY 2024 Proposed
Water charges to Member Cities
Total treated water sales/conveyance revenue from member cities $23,087,338 $23,779,958
To Salt Lake City (72% of total water sales based on period of record; amount not to exceed 65,000 af) $16,622,883 $17,121,570
To Sandy City (28% of total water sales based on period of record; amount not to exceed 25,278 af) $6,464,455 $6,658,388
To be billed monthly
To Salt Lake City $1,385,240 $1,426,797
To Sandy City $538,705 $554,866
Water rates to non-member entities
Conveyance fee (per acre foot)$26 $27
Untreated water (based on availability as determined by GM; per acre foot) $127 $131
Treatment charge (per acre foot)$359 $370
Pumping surcharge if Salt Lake Aqueduct is at capacity (applicable as determined by GM; per acre foot) $74 $76
Pumping surcharge at DACRWTP (applicable as determined by GM; per acre foot)$15 $15
Licensing of Rights-of-Way
Temporary Use Agreement (MWDSLS fee title property only; per week)$50 $50
New license agreement residential (approved existing improvements)$0 $0
New license agreement residential (no existing improvements)$0*$0*
New license agreement (subdivisions, utilities, commercial developments, governmental entities) $1,500* $1,500
*
Renewal license agreement residential (approved existing improvements without changes) $0* $0
*
Renewal license agreement (subdivisions, utilities, commercial developments, governmental entities) $500* $500
*
Right of use fee (fee title lands only) as determined by the GM Varies Varies
Fees related to licensing of member city utilities are waived.
* Minimum fee, additional direct costs (professional review costs) may apply as determined by GM
GRAMA Request
Copy Reproduction Fee (per copy; standard size; non-color)$0.25 $0.25
Research Fee (hourly--time will be charged at the hourly rate of the lowest paid employee performing the request) Varies Varies
Other GRAMA fees as determined by the GM Varies Varies
Fees may be waived or changed only at the discretion of the Board of Trustees.
Fees identified as variable shall be reported to the Board of Trustees.
39 of 49 Budget 043
METROPOLITAN WATER DISTRICT OF SALT LAKE & SANDY
FY 2024 Provo River Water Users Association Budget Request
Last Updated:3/27/2023
Account No.:5918-20
Description:
Budget:
Units Quantity Unit Price Extended Amount
shares 61,900 1.99$ 123,181$
lump sum 1 1,247,000$ 1,247,000$
shares 61,900 21.88$ 1,354,372$
shares 61,900 17.00$ 1,052,300$
Provo River Aqueduct O&M by PRWUA acre feet 22,628 12.95$ 293,032$
Deer Creek Intake Station O&M by PRWUA lump sum 1 175,000.00$ 175,000$
4,244,885$
shares 61,900 40.87$ 2,529,853$
PRWUA total per share assessments--FY 2023 shares 61,900 38.52$ 2,384,388$
Percent increase 6.10%
PRWUA total overall costs--FY 2024 shares 61,900 68.58$ 4,244,885$
PRWUA total overall costs--FY 2023 shares 61,900 66.14$ 4,094,023$
Percent increase 3.68%
Total
PRWUA total per share assessments--FY 2024
PRWUA capital assessment (capital)
This budget item reflects all costs paid to Provo River Water Users Association.
Description
Safety of Dams repayment (capital)
PRWUA O&M assessment
Provo River Aqueduct (2020B Bonds) Repayment (capital)
Budget 044
Metropolitan Water District of Salt Lake & Sandy
Projected Cash Flow
Last Update: April 3, 2023
14 25 26 51 52 55 57 71 80 86 87 88 89 90 102 103
Fiscal Year Ending
June 30
Total Operating
Expenses
Total Debt
Payments
Debt Coverage
Ratio
Total Capital
Expenditures
Total Expenses (i.e.,
Revenue Requirements)
(Sum 14,25,51)
Total MWDSLS
Taxes
Proposed Water
Rate Increase
Total Water
Sales/Conveyance
Revenue Total Assessments
Total Miscellaneous
Revenues
Operations and
Maintenance
Reserve Account
Interest Income Total Revenues
Net Cash Flow
(87 minus 52)
Total Available
Reserves
Total Assigned
Reserves
Remaining
Unassigned
Reserves
Escalation factor
(inflation, growth,
interest)
1.60%
2023 22,798,633$ 15,589,740$ 1.85 12,496,467$ 50,884,839$ 11,704,391$ 3.0%24,603,349$ 12,701,368$ 208,117$ 411,387$ 49,628,612$ (1,256,227)$ 63,433,824$ 13,664,786$ 43,319,428$
2024 26,976,167$ 19,308,448$ 3.71 34,777,874$ 81,062,489$ 18,422,265$ 3.0%25,322,317$ 19,297,039$ 34,689,246$ 866,291$ 98,597,157$ 17,534,669$ 80,968,492$ 20,753,374$ 52,719,842$
2025 27,776,401$ 21,397,296$ 2.00 51,186,907$ 100,360,604$ 18,422,265$ 3.0%24,701,965$ 25,988,449$ 120,242$ 1,298,852$ 70,531,773$ (29,828,830)$ 51,139,662$ 14,464,929$ 28,978,095$
2026 28,768,253$ 21,424,082$ 1.35 16,212,680$ 66,405,015$ 18,422,265$ 3.0%25,427,315$ 12,874,632$ 121,268$ 820,355$ 57,665,835$ (8,739,180)$ 42,400,482$ 12,499,769$ 21,954,788$
2027 29,630,779$ 21,619,946$ 1.42 14,786,976$ 66,037,701$ 18,422,265$ 3.0%26,299,457$ 14,818,837$ 122,325$ 680,165$ 60,343,049$ (5,694,652)$ 36,705,830$ 11,449,966$ 17,092,962$
2028 30,584,836$ 21,449,244$ 1.43 16,051,021$ 68,085,101$ 18,422,265$ 4.0%27,388,169$ 14,809,114$ 126,318$ 588,815$ 61,334,680$ (6,750,420)$ 29,955,410$ 11,527,185$ 10,025,441$
2029 31,496,593$ 21,437,160$ 1.44 17,358,072$ 70,291,825$ 18,422,265$ 4.0%28,519,793$ 14,795,592$ 127,439$ 480,528$ 62,345,617$ (7,946,208)$ 22,009,202$ 11,555,624$ 1,821,467$
2030 31,879,007$ 19,218,860$ 1.66 8,693,682$ 59,791,549$ 18,422,265$ 5.0%29,999,574$ 14,902,755$ 128,594$ 353,060$ 63,806,247$ 4,014,698$ 26,023,900$ 13,421,398$ 3,873,376$
2031 32,975,846$ 19,275,357$ 1.78 10,390,102$ 62,641,305$ 18,422,265$ 5.0%31,528,510$ 16,755,322$ 88,944$ 417,461$ 67,212,502$ 4,571,197$ 30,595,097$ 15,405,692$ 6,184,636$
2032 34,031,730$ 16,289,935$ 2.07 11,541,189$ 61,862,854$ 18,422,265$ 5.0%33,132,644$ 15,592,007$ 88,944$ 490,790$ 67,726,649$ 5,863,795$ 36,458,892$ 17,244,720$ 9,943,976$
2033 35,280,103$ 16,379,025$ 1.91 15,190,342$ 66,849,470$ 18,422,265$ 6.0%35,141,049$ 12,285,731$ 57,000$ 584,854$ 66,490,898$ (358,572)$ 36,100,320$ 17,791,757$ 8,724,793$
2034 36,745,552$ 16,369,809$ 2.13 19,253,492$ 72,368,853$ 18,422,265$ 6.0%37,268,061$ 15,227,976$ 57,000$ 579,102$ 71,554,403$ (814,450)$ 35,285,870$ 18,216,991$ 7,117,242$
2035 37,930,527$ 10,476,021$ 3.22 23,150,777$ 71,557,325$ 18,422,265$ 6.0%39,520,740$ 13,052,603$ 57,000$ 566,037$ 71,618,644$ 61,320$ 35,347,189$ 18,656,684$ 6,441,098$
2036 39,156,035$ 10,450,827$ 2.83 23,561,569$ 73,168,432$ 18,422,265$ 7.0%42,285,304$ 7,384,452$ 57,000$ 567,020$ 68,716,041$ (4,452,391)$ 30,894,798$ 19,111,326$ 1,226,136$
2037 40,423,490$ 6,918,042$ 3.56 17,486,328$ 64,827,861$ 18,422,265$ 7.0%45,197,683$ 874,470$ 57,000$ 495,598$ 65,047,015$ 219,154$ 31,113,953$ 19,581,425$ 656,749$
2038 41,734,841$ 2,276,800$ 10.83 17,925,530$ 61,937,171$ 18,422,265$ 3.0%46,538,760$ 864,349$ 57,000$ 499,113$ 66,381,487$ 4,444,316$ 35,558,268$ 16,782,642$ 18,654,118$
2039 43,091,809$ 2,276,800$ 11.74 20,379,663$ 65,748,273$ 18,422,265$ 3.0%47,919,909$ 2,854,085$ 57,000$ 570,406$ 69,823,665$ 4,075,392$ 39,633,660$ 17,285,252$ 22,225,272$
2040 44,495,632$ 2,276,800$ 16.34 31,349,238$ 78,121,670$ 18,422,265$ 3.0%49,232,827$ 13,343,678$ 57,000$ 635,782$ 81,691,551$ 3,569,881$ 43,203,541$ 17,804,951$ 25,273,799$
2041 45,948,602$ 2,276,800$ 13.73 25,834,778$ 74,060,180$ 18,422,265$ 3.0%50,697,752$ 7,333,125$ 57,000$ 693,048$ 77,203,189$ 3,143,009$ 46,346,550$ 18,342,319$ 27,877,759$
2042 47,452,527$ 2,276,800$ 13.75 26,336,827$ 76,066,154$ 18,422,265$ 3.0%52,206,455$ 7,322,425$ 57,000$ 743,466$ 78,751,611$ 2,685,457$ 49,032,006$ 18,897,958$ 30,005,869$
2043 49,009,250$ 2,276,800$ 10.90 20,355,945$ 71,641,995$ 18,422,265$ 3.0%53,760,248$ 811,575$ 57,000$ 786,545$ 73,837,632$ 2,195,637$ 51,227,643$ 19,472,488$ 31,625,240$
2044 50,620,644$ 2,276,800$ 10.91 20,892,713$ 73,790,157$ 18,422,265$ 3.0%55,360,482$ 800,572$ 57,000$ 821,766$ 75,462,084$ 1,671,928$ 52,899,571$ 20,066,553$ 32,701,340$
2045 52,288,869$ 2,276,800$ 11.79 22,853,491$ 77,419,160$ 18,422,265$ 3.0%57,008,546$ 2,789,416$ 57,000$ 848,586$ 79,125,813$ 1,706,653$ 54,606,224$ 20,680,816$ 33,791,939$
2046 54,016,634$ 2,276,800$ 16.39 33,333,140$ 89,626,574$ 18,422,265$ 3.0%58,705,873$ 13,278,104$ 57,000$ 875,963$ 91,339,205$ 1,712,631$ 56,318,855$ 21,315,963$ 34,867,602$
2047 55,805,915$ 2,276,800$ 13.56 26,906,301$ 84,989,016$ 18,422,265$ 3.0%60,453,940$ 6,840,633$ 57,000$ 903,436$ 86,677,274$ 1,688,258$ 58,007,113$ 21,972,706$ 35,897,267$
2048 57,658,980$ 2,276,800$ 10.87 20,851,637$ 80,787,418$ 18,422,265$ 3.0%62,254,266$ 755,001$ 57,000$ 930,518$ 82,419,050$ 1,631,632$ 59,638,745$ 22,651,778$ 36,847,948$
2049 59,578,645$ 2,276,800$ 12.04 23,591,836$ 85,447,281$ 18,422,265$ 3.0%64,108,415$ 3,443,207$ 57,000$ 956,692$ 86,987,579$ 1,540,298$ 61,179,043$ 23,353,939$ 37,684,177$
2050 61,567,509$ 2,276,800$ 15.87 33,047,845$ 96,892,154$ 18,422,265$ 3.0%66,017,999$ 12,231,248$ 57,000$ 981,401$ 97,709,912$ 817,759$ 61,996,802$ 24,079,973$ 37,773,962$
2051 63,628,466$ 2,276,800$ 10.78 22,226,158$ 88,131,425$ 18,422,265$ 3.0%67,984,680$ 719,121$ 57,000$ 994,519$ 88,177,584$ 46,160$ 62,042,961$ 24,830,692$ 37,067,431$
2052 65,763,941$ 2,276,800$ 10.73 22,927,534$ 90,968,275$ 18,422,265$ 3.0%70,010,168$ 706,824$ 57,000$ 995,259$ 90,191,516$ (776,759)$ 61,266,202$ 25,606,935$ 35,512,426$
2053 67,977,165$ 2,276,800$ 10.66 23,652,757$ 93,906,723$ 18,422,265$ 3.0%72,096,222$ 694,356$ 57,000$ 982,799$ 92,252,642$ (1,654,082)$ 59,612,121$ 26,409,571$ 33,053,674$
2054 70,271,416$ -$ N/A 24,402,638$ 94,674,054$ 18,422,265$ 3.0%74,244,660$ 681,712$ 57,000$ 956,265$ 94,361,902$ (312,153)$ 59,299,968$ 27,239,496$ 31,909,528$
2055 72,650,015$ -$ N/A 25,178,014$ 97,828,030$ 18,422,265$ 3.0%76,457,348$ 668,892$ 57,000$ 951,258$ 96,556,762$ (1,271,267)$ 58,028,701$ 28,097,639$ 29,778,018$
2056 75,116,584$ -$ N/A 25,979,754$ 101,096,337$ 18,422,265$ 3.0%78,736,212$ 655,892$ 57,000$ 930,865$ 98,802,233$ (2,294,104)$ 55,734,597$ 28,984,959$ 26,594,460$
2057 77,674,280$ -$ N/A 26,808,752$ 104,483,032$ 18,422,265$ 4.0%81,861,180$ 642,710$ 57,000$ 894,064$ 101,877,219$ (2,605,814)$ 53,128,783$ 29,902,448$ 23,068,989$
2058 80,327,078$ -$ N/A 27,665,936$ 107,993,015$ 18,422,265$ 4.0%85,110,804$ 629,344$ 57,000$ 852,263$ 105,071,676$ (2,921,339)$ 50,207,444$ 30,851,131$ 19,196,763$
2059 83,079,004$ -$ N/A 28,552,265$ 111,631,269$ 18,422,265$ 3.0%87,648,638$ 615,791$ 57,000$ 805,400$ 107,549,094$ (4,082,175)$ 46,125,268$ 31,832,069$ 14,131,411$
2060 85,933,877$ -$ N/A 29,468,729$ 115,402,606$ 18,422,265$ 3.0%90,262,391$ 602,047$ 57,000$ 739,916$ 110,083,619$ (5,318,987)$ 40,806,282$ 32,846,360$ 7,795,859$
2061 88,896,593$ -$ N/A 34,407,352$ 123,303,945$ 18,422,265$ 6.0%95,632,345$ 4,579,112$ 57,000$ 654,592$ 119,345,314$ (3,958,632)$ 36,847,650$ 33,895,136$ 2,786,141$
2062 91,971,336$ -$ N/A 40,708,527$ 132,679,863$ 18,422,265$ 7.0%102,270,087$ 9,886,313$ 57,000$ 591,090$ 131,226,754$ (1,453,109)$ 35,394,541$ 34,979,570$ 246,249$
2063 95,162,859$ -$ N/A 87,319,347$ 182,482,206$ 18,422,265$ 7.0%109,371,678$ 55,469,648$ 57,000$ 567,780$ 183,888,370$ 1,406,164$ 36,800,705$ 36,100,876$ 528,722$
2064 98,475,972$ -$ N/A 88,366,952$ 186,842,924$ 18,422,265$ 4.0%113,719,562$ 55,455,119$ 57,000$ 590,337$ 188,244,282$ 1,401,358$ 38,202,063$ 37,260,306$ 768,226$
2065 101,916,312$ -$ N/A 86,050,176$ 187,966,487$ 18,422,265$ 4.0%118,240,985$ 52,040,386$ 57,000$ 612,817$ 189,373,452$ 1,406,965$ 39,609,029$ 38,459,156$ 973,878$
2066 105,489,066$ -$ N/A 35,660,233$ 141,149,300$ 18,422,265$ 4.0%122,942,881$ 515,452$ 57,000$ 635,386$ 142,572,984$ 1,423,684$ 41,032,713$ 39,698,767$ 1,155,449$
2067 109,199,998$ -$ N/A 36,818,368$ 146,018,367$ 18,422,265$ 3.0%126,613,856$ 500,304$ 57,000$ 658,224$ 146,251,649$ 233,282$ 41,265,995$ 40,980,525$ 104,431$
2068 113,055,192$ -$ N/A 38,015,879$ 151,071,071$ 18,422,265$ 1.0%127,884,383$ 484,944$ 57,000$ 661,967$ 147,510,558$ (3,560,513)$ 37,705,482$ 33,696,839$ 3,825,021$
2069 117,060,798$ -$ N/A 39,254,106$ 156,314,904$ 18,422,265$ 2.0%130,435,396$ 469,369$ 57,000$ 604,851$ 149,988,880$ (6,326,024)$ 31,379,459$ 26,165,507$ 5,027,704$
2070 121,223,293$ -$ N/A 40,534,432$ 161,757,726$ 18,422,265$ 2.0%133,037,335$ 453,576$ 57,000$ 503,372$ 152,473,548$ (9,284,178)$ 22,095,280$ 18,378,111$ 3,528,256$
2071 125,549,738$ -$ N/A 40,260,842$ 165,810,580$ 18,422,265$ 3.0%137,010,153$ (1,159,886)$ 57,000$ 354,440$ 154,683,972$ (11,126,608)$ 10,968,673$ 10,325,942$ 451,107$
2072 130,047,263$ -$ N/A 41,629,711$ 171,676,974$ 18,422,265$ 7.0%146,535,911$ (1,176,125)$ 57,000$ 175,953$ 164,015,004$ (7,661,970)$ 3,306,703$ 2,000,000$ 1,112,326$
EXPENSES REVENUES RESERVES
Budget 045
2023.04.03 Budget workbook FY 2024--draft.proposed tax and water rate
Metropolitan Water District of Salt Lake & Sandy
Projected Cash Flow
Last Update: April 3, 2023
1a 1b 2 3 4 5 6 7 8 9 10 11 12 13 14
Fiscal Year Ending
June 30
District Regular
Operating Expenses
District Non-
Routine O&M
CUP M&I System
OM&R Cost ($/AF)
CUP M&I System
OM&R Reserve
Cost ($/AF)
CUP M&I System
Water O&M Cost
Total CUP M&I
System Water Costs
(including capital
expenses)
CUP M&I System
Water Volume (AF)
CUP M&I System
Water Unit Cost
($/AF)
CUP ULS OM&R
Cost ($/AF)
CUP ULS OM&R
Reserve Cost ($/AF)
CUP ULS Water
O&M Cost
Total CUP ULS
Water Costs
(including capital
expenses)
CUP ULS Water
Petition Repayment
Volume (AF)
CUP ULS Water
Unit Cost ($/AF)
Total Operating
Expenses
Escalation factor
(inflation, growth,
interest)
3.00%2.00%5.53%6.00%5.53%6.00%
2023 20,447,633$ 965,000$ 13.45$ 46.55$ 1,200,000$ 4,171,200$ 20,000 208.56$ 13.45$ 46.55$ 186,000$ 1,030,223$ 3,100 332.33$ 22,798,633$
2024 24,639,224$ 835,443$ 13.99$ 51.01$ 1,300,000$ 4,271,200$ 20,000 213.56$ 13.99$ 51.01$ 201,500$ 1,045,723$ 3,100 337.33$ 26,976,167$
2025 25,378,401$ 781,000$ 14.55$ 55.45$ 1,400,000$ 4,371,200$ 20,000 218.56$ 14.55$ 55.45$ 217,000$ 1,061,223$ 3,100 342.33$ 27,776,401$
2026 26,139,753$ 896,000$ 15.13$ 59.87$ 1,500,000$ 4,471,200$ 20,000 223.56$ 15.13$ 59.87$ 232,500$ 1,076,723$ 3,100 347.33$ 28,768,253$
2027 26,923,946$ 872,000$ 15.97$ 63.46$ 1,588,600$ 4,559,800$ 20,000 227.99$ 15.97$ 63.46$ 246,233$ 1,090,456$ 3,100 351.76$ 29,630,779$
2028 27,731,664$ 910,000$ 16.85$ 67.27$ 1,682,400$ 4,653,600$ 20,000 232.68$ 16.85$ 67.27$ 260,772$ 1,104,995$ 3,100 356.45$ 30,584,836$
2029 28,563,614$ 875,000$ 17.78$ 71.31$ 1,781,800$ 4,753,000$ 20,000 237.65$ 17.78$ 71.31$ 276,179$ 1,120,402$ 3,100 361.42$ 31,496,593$
2030 29,420,522$ 279,000$ 18.76$ 75.59$ 1,887,000$ 4,858,200$ 20,000 242.91$ 18.76$ 75.59$ 292,485$ 1,136,708$ 3,100 366.68$ 31,879,007$
2031 30,303,138$ 114,500$ 19.80$ 80.13$ 1,998,600$ 4,969,800$ 20,000 248.49$ 19.80$ 80.13$ 559,608$ 2,157,056$ 5,600 385.19$ 32,975,846$
2032 31,212,232$ 110,250$ 20.89$ 84.94$ 2,116,600$ 5,087,800$ 20,000 254.39$ 20.89$ 84.94$ 592,648$ 2,190,096$ 5,600 391.09$ 34,031,730$
2033 32,148,599$ 262,000$ 22.05$ 90.04$ 2,241,800$ 5,213,000$ 20,000 260.65$ 22.05$ 90.04$ 627,704$ 2,225,152$ 5,600 397.35$ 35,280,103$
2034 33,113,057$ 593,519$ 23.27$ 95.44$ 2,374,200$ 5,345,400$ 20,000 267.27$ 23.27$ 95.44$ 664,776$ 2,262,224$ 5,600 403.97$ 36,745,552$
2035 34,106,449$ 605,390$ 24.56$ 101.17$ 2,514,600$ 5,485,800$ 20,000 274.29$ 24.56$ 101.17$ 704,088$ 2,301,536$ 5,600 410.99$ 37,930,527$
2036 35,129,642$ 617,497$ 25.92$ 107.24$ 2,663,200$ 5,634,400$ 20,000 281.72$ 25.92$ 107.24$ 745,696$ 2,343,144$ 5,600 418.42$ 39,156,035$
2037 36,183,531$ 629,847$ 27.35$ 113.67$ 2,820,400$ 5,791,600$ 20,000 289.58$ 27.35$ 113.67$ 789,712$ 2,387,160$ 5,600 426.28$ 40,423,490$
2038 37,269,037$ 642,444$ 28.86$ 120.49$ 2,987,000$ 5,958,200$ 20,000 297.91$ 28.86$ 120.49$ 836,360$ 2,433,808$ 5,600 434.61$ 41,734,841$
2039 38,387,108$ 655,293$ 30.46$ 127.72$ 3,163,600$ 6,134,800$ 20,000 306.74$ 30.46$ 127.72$ 885,808$ 2,483,256$ 5,600 443.44$ 43,091,809$
2040 39,538,721$ 668,399$ 32.14$ 135.38$ 3,350,400$ 6,321,600$ 20,000 316.08$ 32.14$ 135.38$ 938,112$ 2,535,560$ 5,600 452.78$ 44,495,632$
2041 40,724,883$ 681,767$ 33.92$ 143.50$ 3,548,400$ 6,519,600$ 20,000 325.98$ 33.92$ 143.50$ 993,552$ 2,591,000$ 5,600 462.68$ 45,948,602$
2042 41,946,629$ 695,402$ 35.80$ 152.11$ 3,758,200$ 6,729,400$ 20,000 336.47$ 35.80$ 152.11$ 1,052,296$ 2,649,744$ 5,600 473.17$ 47,452,527$
2043 43,205,028$ 709,310$ 37.78$ 161.24$ 3,980,400$ 6,951,600$ 20,000 347.58$ 37.78$ 161.24$ 1,114,512$ 2,711,960$ 5,600 484.28$ 49,009,250$
2044 44,501,179$ 723,497$ 39.87$ 170.91$ 4,215,600$ 7,186,800$ 20,000 359.34$ 39.87$ 170.91$ 1,180,368$ 2,777,816$ 5,600 496.04$ 50,620,644$
2045 45,836,214$ 737,967$ 42.07$ 181.16$ 4,464,600$ 6,841,560$ 20,000 342.08$ 42.07$ 181.16$ 1,250,088$ 2,847,536$ 5,600 508.49$ 52,288,869$
2046 47,211,300$ 752,726$ 44.40$ 192.03$ 4,728,600$ 6,511,320$ 20,000 325.57$ 44.40$ 192.03$ 1,324,008$ 2,921,456$ 5,600 521.69$ 54,016,634$
2047 48,627,639$ 767,780$ 46.86$ 203.55$ 5,008,200$ 6,196,680$ 20,000 309.83$ 46.86$ 203.55$ 1,402,296$ 2,999,744$ 5,600 535.67$ 55,805,915$
2048 50,086,468$ 783,136$ 49.45$ 215.76$ 5,304,200$ 5,898,440$ 20,000 294.92$ 49.45$ 215.76$ 1,485,176$ 3,082,624$ 5,600 550.47$ 57,658,980$
2049 51,589,062$ 798,799$ 52.18$ 228.71$ 5,617,800$ 5,617,800$ 20,000 280.89$ 52.18$ 228.71$ 1,572,984$ 3,170,432$ 5,600 566.15$ 59,578,645$
2050 53,136,734$ 814,775$ 55.07$ 242.43$ 5,950,000$ 5,950,000$ 20,000 297.50$ 55.07$ 242.43$ 1,666,000$ 3,263,448$ 5,600 582.76$ 61,567,509$
2051 54,730,836$ 831,070$ 58.12$ 256.98$ 6,302,000$ 6,302,000$ 20,000 315.10$ 58.12$ 256.98$ 1,764,560$ 3,362,008$ 5,600 600.36$ 63,628,466$
2052 56,372,761$ 847,692$ 61.33$ 272.40$ 6,674,600$ 6,674,600$ 20,000 333.73$ 61.33$ 272.40$ 1,868,888$ 3,466,336$ 5,600 618.99$ 65,763,941$
2053 58,063,944$ 864,645$ 64.72$ 288.74$ 7,069,200$ 7,069,200$ 20,000 353.46$ 64.72$ 288.74$ 1,979,376$ 3,576,824$ 5,600 638.72$ 67,977,165$
2054 59,805,862$ 881,938$ 68.30$ 306.06$ 7,487,200$ 7,487,200$ 20,000 374.36$ 68.30$ 306.06$ 2,096,416$ 3,693,864$ 5,600 659.62$ 70,271,416$
2055 61,600,038$ 899,577$ 72.08$ 324.42$ 7,930,000$ 7,930,000$ 20,000 396.50$ 72.08$ 324.42$ 2,220,400$ 3,817,848$ 5,600 681.76$ 72,650,015$
2056 63,448,039$ 917,569$ 76.07$ 343.89$ 8,399,200$ 8,399,200$ 20,000 419.96$ 76.07$ 343.89$ 2,351,776$ 3,949,224$ 5,600 705.22$ 75,116,584$
2057 65,351,480$ 935,920$ 80.28$ 364.52$ 8,896,000$ 8,896,000$ 20,000 444.80$ 80.28$ 364.52$ 2,490,880$ 4,088,328$ 5,600 730.06$ 77,674,280$
2058 67,312,024$ 954,638$ 84.72$ 386.39$ 9,422,200$ 9,422,200$ 20,000 471.11$ 84.72$ 386.39$ 2,638,216$ 4,235,664$ 5,600 756.37$ 80,327,078$
2059 69,331,385$ 973,731$ 89.41$ 409.57$ 9,979,600$ 9,979,600$ 20,000 498.98$ 89.41$ 409.57$ 2,794,288$ 4,391,736$ 5,600 784.24$ 83,079,004$
2060 71,411,327$ 993,206$ 94.35$ 434.14$ 10,569,800$ 10,569,800$ 20,000 528.49$ 94.35$ 434.14$ 2,959,544$ 4,556,992$ 5,600 813.75$ 85,933,877$
2061 73,553,667$ 1,013,070$ 99.57$ 460.19$ 11,195,200$ 11,195,200$ 20,000 559.76$ 99.57$ 460.19$ 3,134,656$ 4,732,104$ 5,600 845.02$ 88,896,593$
2062 75,760,277$ 1,033,331$ 105.08$ 487.80$ 11,857,600$ 11,857,600$ 20,000 592.88$ 105.08$ 487.80$ 3,320,128$ 4,917,576$ 5,600 878.14$ 91,971,336$
2063 78,033,085$ 1,053,998$ 110.89$ 517.07$ 12,559,200$ 12,559,200$ 20,000 627.96$ 110.89$ 517.07$ 3,516,576$ 5,114,024$ 5,600 913.22$ 95,162,859$
2064 80,374,078$ 1,075,078$ 117.02$ 548.09$ 13,302,200$ 13,302,200$ 20,000 665.11$ 117.02$ 548.09$ 3,724,616$ 5,322,064$ 5,600 950.37$ 98,475,972$
2065 82,785,300$ 1,096,580$ 123.49$ 580.98$ 14,089,400$ 14,089,400$ 20,000 704.47$ 123.49$ 580.98$ 3,945,032$ 5,542,480$ 5,600 989.73$ 101,916,312$
2066 85,268,859$ 1,118,511$ 130.32$ 615.84$ 14,923,200$ 14,923,200$ 20,000 746.16$ 130.32$ 615.84$ 4,178,496$ 5,775,944$ 5,600 1,031.42$ 105,489,066$
2067 87,826,925$ 1,140,881$ 137.53$ 652.79$ 15,806,400$ 15,806,400$ 20,000 790.32$ 137.53$ 652.79$ 4,425,792$ 6,023,240$ 5,600 1,075.58$ 109,199,998$
2068 90,461,733$ 1,163,699$ 145.14$ 691.96$ 16,742,000$ 16,742,000$ 20,000 837.10$ 145.14$ 691.96$ 4,687,760$ 6,285,208$ 5,600 1,122.36$ 113,055,192$
2069 93,175,585$ 1,186,973$ 153.17$ 733.48$ 17,733,000$ 17,733,000$ 20,000 886.65$ 153.17$ 733.48$ 4,965,240$ 6,562,688$ 5,600 1,171.91$ 117,060,798$
2070 95,970,853$ 1,210,712$ 161.64$ 777.49$ 18,782,600$ 18,782,600$ 20,000 939.13$ 161.64$ 777.49$ 5,259,128$ 6,856,576$ 5,600 1,224.39$ 121,223,293$
2071 98,849,979$ 1,234,927$ 170.58$ 824.14$ 19,894,400$ 19,894,400$ 20,000 994.72$ 170.58$ 824.14$ 5,570,432$ 5,570,432$ 5,600 994.72$ 125,549,738$
2072 101,815,478$ 1,259,625$ 180.01$ 873.59$ 21,072,000$ 21,072,000$ 20,000 1,053.60$ 180.01$ 873.59$ 5,900,160$ 5,900,160$ 5,600 1,053.60$ 130,047,263$
Operations & Maintenance
CUP Municipal & Industrial (M&I) System CUP Utah Lake System (ULS)
Expenses
Budget 046
2023.04.03 Budget workbook FY 2024--draft.proposed tax and water rate
Fiscal Year Ending
June 30
Escalation factor
(inflation, growth,
interest)
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
2065
2066
2067
2068
2069
2070
2071
2072
Metropolitan Water District of Salt Lake & Sandy
Projected Cash Flow
Last Update: April 3, 2023
15 16 17 18 19 20 21 22 23 24 25 26
Ontario Drain
Tunnel Volume
(AF)
Ontario Drain
Tunnel Cost ($/AF)
Ontario Drain
Tunnel Water Cost
(bond payment) 2021A/B 2012B 2015A 2016A 2020A
Future Loan
(Anticipated FY24)
Future Bond
(Anticipated FY24)
Total Debt
Payments
Debt Coverage
Ratio
2,766
2,766 300.98$ 832,506$ 2,199,001$ 787,325$ 449,000$ 1,958,950$ 10,195,464$ -$ -$ 15,589,740$ 1.85
2,766 308.82$ 854,183$ 2,199,001$ 452,800$ 5,883,950$ 8,495,897$ -$ 2,276,800$ 19,308,448$ 3.71
2,766 319.10$ 882,620$ 4,424,001$ 451,000$ 9,787,700$ 4,457,795$ -$ 2,276,800$ 21,397,296$ 2.00
2,766 329.12$ 910,352$ 4,435,756$ 448,800$ 9,786,450$ 4,476,276$ -$ 2,276,800$ 21,424,082$ 1.35
2,766 350.63$ 969,854$ 4,442,079$ 451,200$ 9,965,200$ 4,484,668$ -$ 2,276,800$ 21,619,946$ 1.42
2,766 364.95$ 1,009,443$ 4,446,917$ 448,000$ 10,000,675$ 4,276,852$ -$ 2,276,800$ 21,449,244$ 1.43
2,766 378.37$ 1,046,569$ 4,451,653$ 449,400$ 10,012,925$ 4,246,382$ -$ 2,276,800$ 21,437,160$ 1.44
2,766 390.72$ 1,080,744$ 8,930,353$ 450,200$ 5,721,313$ 1,840,195$ -$ 2,276,800$ 19,218,860$ 1.66
2,766 400.76$ 1,108,490$ 8,921,450$ 450,400$ 5,802,550$ 1,824,157$ -$ 2,276,800$ 19,275,357$ 1.78
2,766 8,921,250$ 450,000$ 4,641,885$ -$ 2,276,800$ 16,289,935$ 2.07
2,766 9,010,500$ 449,000$ 4,642,725$ -$ 2,276,800$ 16,379,025$ 1.91
2,766 8,991,750$ 452,400$ 4,648,859$ -$ 2,276,800$ 16,369,809$ 2.13
2,766 3,554,250$ -$ 4,644,971$ -$ 2,276,800$ 10,476,021$ 3.22
2,766 3,528,000$ 4,646,027$ -$ 2,276,800$ 10,450,827$ 2.83
2,766 4,641,242$ -$ 2,276,800$ 6,918,042$ 3.56
2,766 -$ 2,276,800$ 2,276,800$ 10.83
2,766 -$ 2,276,800$ 2,276,800$ 11.74
2,766 -$ 2,276,800$ 2,276,800$ 16.34
2,766 -$ 2,276,800$ 2,276,800$ 13.73
2,766 -$ 2,276,800$ 2,276,800$ 13.75
2,766 -$ 2,276,800$ 2,276,800$ 10.90
2,766 -$ 2,276,800$ 2,276,800$ 10.91
2,766 -$ 2,276,800$ 2,276,800$ 11.79
2,766 -$ 2,276,800$ 2,276,800$ 16.39
2,766 -$ 2,276,800$ 2,276,800$ 13.56
2,766 -$ 2,276,800$ 2,276,800$ 10.87
2,766 -$ 2,276,800$ 2,276,800$ 12.04
2,766 -$ 2,276,800$ 2,276,800$ 15.87
2,766 -$ 2,276,800$ 2,276,800$ 10.78
2,766 -$ 2,276,800$ 2,276,800$ 10.73
2,766 -$ 2,276,800$ 2,276,800$ 10.66
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
2,766 N/A
Ontario Drain Tunnel
Debt Service
Expenses
Budget 047
2023.04.03 Budget workbook FY 2024--draft.proposed tax and water rate
Fiscal Year Ending
June 30
Escalation factor
(inflation, growth,
interest)
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
2065
2066
2067
2068
2069
2070
2071
2072
Metropolitan Water District of Salt Lake & Sandy
Projected Cash Flow
Last Update: April 3, 2023
27 28 29 30 31 32 33 34 35 36 37
Deer Creek Safety
of Dams Repayment
Provo River
Aqueduct (2020B
Bonds) Repayment
PRWUA
Assessment (O&M)
PRWUA
Assessment
(Capital)
Provo River
Aqueduct O&M by
PRWUA
Deer Creek Intake
Station O&M by
PRWUA
Total PRWUA
Costs
Total MWDSLS
PRWUA Shares
PRWUA Water
Supply Allocation
(Percent)
PRWUA Water
Supply Volume
Available to
MWDSLS (AF)
PRWUA Water
Supply Unit Cost
($/AF)
3.56%3.09%2.58%
123,181$ 1,245,435$ 2,261,207$ 293,032$ 171,168$ 4,094,023$ 61,900 100%61,900 66.14$
123,181$ 1,247,000$ 1,354,372$ 1,052,300$ 293,032$ 175,000$ 4,244,885$ 61,900 100%61,900 68.58$
1,247,000$ 1,386,560$ 1,299,900$ 302,086$ 179,515$ 4,415,061$ 61,900 100%61,900 71.33$
1,247,000$ 1,419,367$ 1,423,700$ 311,420$ 184,146$ 4,585,633$ 61,900 100%61,900 74.08$
1,247,000$ 1,452,793$ 1,182,290$ 321,043$ 188,897$ 4,392,023$ 61,900 100%61,900 70.95$
1,247,000$ 1,486,838$ 1,194,670$ 330,963$ 193,771$ 4,453,242$ 61,900 100%61,900 71.94$
1,247,000$ 1,521,502$ 1,207,050$ 341,190$ 198,770$ 4,515,512$ 61,900 100%61,900 72.95$
1,247,000$ 1,556,785$ 1,219,430$ 351,733$ 203,898$ 4,578,846$ 61,900 100%61,900 73.97$
1,247,000$ 1,592,687$ 1,231,810$ 362,602$ 209,159$ 4,643,258$ 61,900 100%61,900 75.01$
1,247,000$ 1,629,208$ 1,244,190$ 373,806$ 214,555$ 4,708,759$ 61,900 100%61,900 76.07$
1,247,000$ 1,666,348$ 1,256,570$ 385,357$ 220,091$ 4,775,366$ 61,900 100%61,900 77.15$
1,247,000$ 1,704,107$ 1,268,950$ 397,265$ 225,769$ 4,843,091$ 61,900 100%61,900 78.24$
1,247,000$ 1,742,485$ 1,281,330$ 409,540$ 231,594$ 4,911,949$ 61,900 100%61,900 79.35$
1,255,445$ 422,195$ 237,569$ 1,915,209$ 61,900 100%61,900 30.94$
1,300,138$ 435,241$ 243,698$ 1,979,077$ 61,900 100%61,900 31.97$
1,346,423$ 448,690$ 249,985$ 2,045,098$ 61,900 100%61,900 33.04$
1,394,356$ 462,555$ 256,435$ 2,113,346$ 61,900 100%61,900 34.14$
1,443,995$ 476,848$ 263,051$ 2,183,894$ 61,900 100%61,900 35.28$
1,495,401$ 491,583$ 269,838$ 2,256,822$ 61,900 100%61,900 36.46$
1,548,637$ 506,773$ 276,800$ 2,332,210$ 61,900 100%61,900 37.68$
1,603,768$ 522,432$ 283,941$ 2,410,141$ 61,900 100%61,900 38.94$
1,660,862$ 538,575$ 291,267$ 2,490,704$ 61,900 100%61,900 40.24$
1,719,989$ 555,217$ 298,782$ 2,573,988$ 61,900 100%61,900 41.58$
1,781,221$ 572,373$ 306,491$ 2,660,085$ 61,900 100%61,900 42.97$
1,844,632$ 590,059$ 314,398$ 2,749,089$ 61,900 100%61,900 44.41$
1,910,301$ 608,292$ 322,509$ 2,841,102$ 61,900 100%61,900 45.90$
1,978,308$ 627,088$ 330,830$ 2,936,226$ 61,900 100%61,900 47.43$
2,048,736$ 646,465$ 339,365$ 3,034,566$ 61,900 100%61,900 49.02$
2,121,671$ 666,441$ 348,121$ 3,136,233$ 61,900 100%61,900 50.67$
2,197,202$ 687,034$ 357,103$ 3,241,339$ 61,900 100%61,900 52.36$
2,275,422$ 708,263$ 366,316$ 3,350,001$ 61,900 100%61,900 54.12$
2,356,427$ 730,148$ 375,767$ 3,462,342$ 61,900 100%61,900 55.93$
2,440,316$ 752,710$ 385,462$ 3,578,488$ 61,900 100%61,900 57.81$
2,527,191$ 775,969$ 395,407$ 3,698,567$ 61,900 100%61,900 59.75$
2,617,159$ 799,946$ 405,609$ 3,822,714$ 61,900 100%61,900 61.76$
2,710,330$ 824,664$ 416,074$ 3,951,068$ 61,900 100%61,900 63.83$
2,806,818$ 850,146$ 426,809$ 4,083,773$ 61,900 100%61,900 65.97$
2,906,741$ 876,416$ 437,821$ 4,220,978$ 61,900 100%61,900 68.19$
3,010,221$ 903,497$ 449,117$ 4,362,835$ 61,900 100%61,900 70.48$
3,117,385$ 931,415$ 460,704$ 4,509,504$ 61,900 100%61,900 72.85$
3,228,364$ 960,196$ 472,590$ 4,661,150$ 61,900 100%61,900 75.30$
3,343,294$ 989,866$ 484,783$ 4,817,943$ 61,900 100%61,900 77.83$
3,462,315$ 1,020,453$ 497,290$ 4,980,058$ 61,900 100%61,900 80.45$
3,585,573$ 1,051,985$ 510,120$ 5,147,678$ 61,900 100%61,900 83.16$
3,713,219$ 1,084,491$ 523,281$ 5,320,991$ 61,900 100%61,900 85.96$
3,845,410$ 1,118,002$ 536,782$ 5,500,194$ 61,900 100%61,900 88.86$
3,982,307$ 1,152,548$ 550,631$ 5,685,486$ 61,900 100%61,900 91.85$
4,124,077$ 1,188,162$ 564,837$ 5,877,076$ 61,900 100%61,900 94.94$
4,270,894$ 1,224,876$ 579,410$ 6,075,180$ 61,900 100%61,900 98.15$
4,422,938$ 1,262,725$ 594,359$ 6,280,022$ 61,900 100%61,900 101.45$
Provo River Project (PRWUA)
Expenses
Budget 048
2023.04.03 Budget workbook FY 2024--draft.proposed tax and water rate
Fiscal Year Ending
June 30
Escalation factor
(inflation, growth,
interest)
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
2065
2066
2067
2068
2069
2070
2071
2072
Metropolitan Water District of Salt Lake & Sandy
Projected Cash Flow
Last Update: April 3, 2023
38 39 40 41 42 43 44 45 46 47 48 49 50 51 52
CUP M&I System
Water Petition
Repayment Volume
(AF)
CUP M&I System
Petition Repayment
Unit Cost ($/AF)
CUP M&I System
Petition Repayment
Total Cost
Salt Lake City CUP
ULS Water Petition
Repayment Volume
(AF)
Salt Lake City CUP
ULS Petition
Repayment Unit
Cost ($/AF)
Salt Lake City CUP
ULS Petition
Repayment Total
Cost
Sandy City CUP
ULS Water Petition
Repayment Volume
(AF)
Sandy City CUP
ULS Petition
Repayment Unit
Cost ($/AF)
Sandy City CUP
ULS Petition
Repayment Total
Cost
CUP ULS Petition
Repayment Total
Cost
Non-Capacity
Capital Expenditures
Capital
Expenditures for
Jordan Aqueduct
System
New Capacity
Capital Expenditures
Total Capital
Expenditures
Total Expenses (i.e.,
Revenue
Requirements)
(Sum 14,25,51)
3.40%3.40%
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 844,223$ 2,589,000$ 2,885,643$ 900,000$ 12,496,467$ 50,884,839$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 844,223$ 15,006,400$ 4,830,551$ 11,125,500$ 34,777,874$ 81,062,489$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 844,223$ 24,198,100$ 9,997,384$ 13,176,000$ 51,186,907$ 100,360,604$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 844,223$ 5,444,500$ 6,952,757$ -$ 16,212,680$ 66,405,015$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 844,223$ 3,807,120$ 5,164,433$ 2,000,000$ 14,786,976$ 66,037,701$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 844,223$ 3,670,700$ 6,564,898$ 2,000,000$ 16,051,021$ 68,085,101$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 844,223$ 4,592,000$ 6,950,649$ 2,000,000$ 17,358,072$ 70,291,825$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 844,223$ 1,900,000$ 853,259$ 2,125,000$ 8,693,682$ 59,791,549$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 1,670,000$ 901,454$ 3,250,000$ 10,390,102$ 62,641,305$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 2,770,000$ 952,541$ 3,250,000$ 11,541,189$ 61,862,854$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 9,615,000$ 1,006,694$ -$ 15,190,342$ 66,849,470$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 7,267,382$ 4,417,462$ 3,000,000$ 19,253,492$ 72,368,853$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 7,514,473$ 4,567,656$ 6,500,000$ 23,150,777$ 71,557,325$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 7,769,965$ 4,722,956$ 6,500,000$ 23,561,569$ 73,168,432$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 8,034,144$ 4,883,537$ -$ 17,486,328$ 64,827,861$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 8,307,305$ 5,049,577$ -$ 17,925,530$ 61,937,171$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 8,589,753$ 5,221,262$ 2,000,000$ 20,379,663$ 65,748,273$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 8,881,805$ 5,398,785$ 12,500,000$ 31,349,238$ 78,121,670$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 9,183,786$ 5,582,344$ 6,500,000$ 25,834,778$ 74,060,180$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 9,496,035$ 5,772,144$ 6,500,000$ 26,336,827$ 76,066,154$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 9,818,900$ 5,968,397$ -$ 20,355,945$ 71,641,995$
20,000 148.56$ 2,971,200$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 10,152,743$ 6,171,322$ -$ 20,892,713$ 73,790,157$
16,000 148.56$ 2,376,960$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 10,497,936$ 6,381,147$ 2,000,000$ 22,853,491$ 77,419,160$
12,000 148.56$ 1,782,720$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 10,854,866$ 6,598,106$ 12,500,000$ 33,333,140$ 89,626,574$
8,000 148.56$ 1,188,480$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 11,223,931$ 6,822,442$ 6,074,000$ 26,906,301$ 84,989,016$
4,000 148.56$ 594,240$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 11,605,545$ 7,054,405$ -$ 20,851,637$ 80,787,418$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 12,000,133$ 7,294,254$ 2,700,000$ 23,591,836$ 85,447,281$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 12,408,138$ 7,542,259$ 11,500,000$ 33,047,845$ 96,892,154$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 12,830,015$ 7,798,696$ -$ 22,226,158$ 88,131,425$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 13,266,235$ 8,063,851$ -$ 22,927,534$ 90,968,275$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 13,717,287$ 8,338,022$ -$ 23,652,757$ 93,906,723$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 14,183,675$ 8,621,515$ -$ 24,402,638$ 94,674,054$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 14,665,920$ 8,914,647$ -$ 25,178,014$ 97,828,030$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 15,164,561$ 9,217,745$ -$ 25,979,754$ 101,096,337$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 15,680,156$ 9,531,148$ -$ 26,808,752$ 104,483,032$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 16,213,281$ 9,855,207$ -$ 27,665,936$ 107,993,015$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 16,764,533$ 10,190,284$ -$ 28,552,265$ 111,631,269$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 17,334,527$ 10,536,754$ -$ 29,468,729$ 115,402,606$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 17,923,901$ 10,895,003$ 3,991,000$ 34,407,352$ 123,303,945$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 18,533,314$ 11,265,433$ 9,312,332$ 40,708,527$ 132,679,863$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 19,163,446$ 11,648,458$ 54,909,995$ 87,319,347$ 182,482,206$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 19,815,003$ 12,044,506$ 54,909,995$ 88,366,952$ 186,842,924$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 20,488,714$ 12,454,019$ 51,509,995$ 86,050,176$ 187,966,487$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 21,185,330$ 12,877,456$ -$ 35,660,233$ 141,149,300$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 21,905,631$ 13,315,289$ -$ 36,818,368$ 146,018,367$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 22,650,422$ 13,768,009$ -$ 38,015,879$ 151,071,071$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 23,420,537$ 14,236,121$ -$ 39,254,106$ 156,314,904$
- -$ -$ 3100 272.33$ 844,223$ 2,500 301.29$ 753,225$ 1,597,448$ 24,216,835$ 14,720,149$ -$ 40,534,432$ 161,757,726$
- -$ -$ 25,040,207$ 15,220,634$ -$ 40,260,842$ 165,810,580$
- -$ -$ 25,891,575$ 15,738,136$ -$ 41,629,711$ 171,676,974$
Central Utah Project (CUP)
Expenses
Capital Expenditures
Budget 049
2023.04.03 Budget workbook FY 2024--draft.proposed tax and water rate
Fiscal Year Ending
June 30
Escalation factor
(inflation, growth,
interest)
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
2065
2066
2067
2068
2069
2070
2071
2072
Metropolitan Water District of Salt Lake & Sandy
Projected Cash Flow
Last Update: April 3, 2023
53 54 55 56 57 58 59 60 61 62
Salt Lake City Taxes Sandy City Taxes
Total MWDSLS
Taxes
Total Water Sales to
Member Cities (fixed
rate)
Proposed Water Rate
Increase
Water Sales to Salt
Lake City (fixed rate)
Estimated Water Sales
to Salt Lake City (AF)
Water Sales to Sandy
City (fixed rate)
Estimated Water Sales
to Sandy City (AF)
Total Water Sales
Volume to Member
Cities (AF)
72%28%
8,778,293$ 2,926,098$ 11,704,391$ 23,087,338$ 3.0%16,622,883$ 51,759 6,464,455$ 24043 75802
13,816,698$ 4,605,566$ 18,422,265$ 23,779,958$ 3.0%17,121,570$ 52,107 6,658,388$ 23943 76051
13,816,698$ 4,605,566$ 18,422,265$ 24,493,357$ 3.0%17,635,217$ 52,456 6,858,140$ 23843 76299
13,816,698$ 4,605,566$ 18,422,265$ 25,228,158$ 3.0%18,164,274$ 52,804 7,063,884$ 23744 76548
13,816,698$ 4,605,566$ 18,422,265$ 25,985,003$ 3.0%18,709,202$ 53,153 7,275,801$ 23644 76797
13,816,698$ 4,605,566$ 18,422,265$ 27,024,403$ 4.0%19,457,570$ 53,501 7,566,833$ 23544 77045
13,816,698$ 4,605,566$ 18,422,265$ 28,105,379$ 4.0%20,235,873$ 53,850 7,869,506$ 23444 77294
13,816,698$ 4,605,566$ 18,422,265$ 29,510,648$ 5.0%21,247,667$ 54,198 8,262,981$ 23344 77542
13,816,698$ 4,605,566$ 18,422,265$ 30,986,180$ 5.0%22,310,050$ 54,547 8,676,130$ 23244 77791
13,816,698$ 4,605,566$ 18,422,265$ 32,535,489$ 5.0%23,425,552$ 54,895 9,109,937$ 23145 78040
13,816,698$ 4,605,566$ 18,422,265$ 34,487,618$ 6.0%24,831,085$ 55,243 9,656,533$ 23045 78288
13,816,698$ 4,605,566$ 18,422,265$ 36,556,875$ 6.0%26,320,950$ 55,592 10,235,925$ 22945 78537
13,816,698$ 4,605,566$ 18,422,265$ 38,750,288$ 6.0%27,900,207$ 55,940 10,850,081$ 22845 78786
13,816,698$ 4,605,566$ 18,422,265$ 41,462,808$ 7.0%29,853,222$ 56,289 11,609,586$ 22745 79034
13,816,698$ 4,605,566$ 18,422,265$ 44,365,205$ 7.0%31,942,948$ 56,637 12,422,257$ 22646 79283
13,816,698$ 4,605,566$ 18,422,265$ 45,696,161$ 3.0%32,901,236$ 56,986 12,794,925$ 22546 79531
13,816,698$ 4,605,566$ 18,422,265$ 47,067,046$ 3.0%33,888,273$ 57,334 13,178,773$ 22446 79780
13,816,698$ 4,605,566$ 18,422,265$ 48,479,057$ 3.0%34,904,921$ 57,683 13,574,136$ 22346 80029
13,816,698$ 4,605,566$ 18,422,265$ 49,933,429$ 3.0%35,952,069$ 58,031 13,981,360$ 22246 80277
13,816,698$ 4,605,566$ 18,422,265$ 51,431,432$ 3.0%37,030,631$ 58,380 14,400,801$ 22147 80526
13,816,698$ 4,605,566$ 18,422,265$ 52,974,375$ 3.0%38,141,550$ 58,728 14,832,825$ 22047 80775
13,816,698$ 4,605,566$ 18,422,265$ 54,563,606$ 3.0%39,285,796$ 59,076 15,277,810$ 21947 81023
13,816,698$ 4,605,566$ 18,422,265$ 56,200,514$ 3.0%40,464,370$ 59,425 15,736,144$ 21847 81272
13,816,698$ 4,605,566$ 18,422,265$ 57,886,529$ 3.0%41,678,301$ 59,773 16,208,228$ 21747 81521
13,816,698$ 4,605,566$ 18,422,265$ 59,623,125$ 3.0%42,928,650$ 60,122 16,694,475$ 21647 81769
13,816,698$ 4,605,566$ 18,422,265$ 61,411,819$ 3.0%44,216,510$ 60,470 17,195,309$ 21548 82018
13,816,698$ 4,605,566$ 18,422,265$ 63,254,174$ 3.0%45,543,005$ 60,819 17,711,169$ 21448 82266
13,816,698$ 4,605,566$ 18,422,265$ 65,151,799$ 3.0%46,909,295$ 61,167 18,242,504$ 21348 82515
13,816,698$ 4,605,566$ 18,422,265$ 67,106,353$ 3.0%48,316,574$ 61,516 18,789,779$ 21248 82764
13,816,698$ 4,605,566$ 18,422,265$ 69,119,544$ 3.0%49,766,072$ 61,864 19,353,472$ 21148 83012
13,816,698$ 4,605,566$ 18,422,265$ 71,193,130$ 3.0%51,259,054$ 62,212 19,934,076$ 21049 83261
13,816,698$ 4,605,566$ 18,422,265$ 73,328,924$ 3.0%52,796,825$ 62,561 20,532,099$ 20949 83510
13,816,698$ 4,605,566$ 18,422,265$ 75,528,792$ 3.0%54,380,730$ 62,909 21,148,062$ 20849 83758
13,816,698$ 4,605,566$ 18,422,265$ 77,794,656$ 3.0%56,012,152$ 63,258 21,782,504$ 20749 84007
13,816,698$ 4,605,566$ 18,422,265$ 80,906,442$ 4.0%58,252,638$ 63,606 22,653,804$ 20649 84255
13,816,698$ 4,605,566$ 18,422,265$ 84,142,700$ 4.0%60,582,744$ 63,955 23,559,956$ 20549 84504
13,816,698$ 4,605,566$ 18,422,265$ 86,666,981$ 3.0%62,400,226$ 64,303 24,266,755$ 20450 84753
13,816,698$ 4,605,566$ 18,422,265$ 89,266,990$ 3.0%64,272,233$ 64,652 24,994,757$ 20350 85001
13,816,698$ 4,605,566$ 18,422,265$ 94,623,009$ 6.0%68,128,566$ 65,000 26,494,443$ 20250 85250
13,816,698$ 4,605,566$ 18,422,265$ 101,246,620$ 7.0%72,897,566$ 65,000 28,349,054$ 20250 85250
13,816,698$ 4,605,566$ 18,422,265$ 108,333,883$ 7.0%78,000,396$ 65,000 30,333,487$ 20250 85250
13,816,698$ 4,605,566$ 18,422,265$ 112,667,238$ 4.0%81,120,411$ 65,000 31,546,827$ 20250 85250
13,816,698$ 4,605,566$ 18,422,265$ 117,173,928$ 4.0%84,365,228$ 65,000 32,808,700$ 20250 85250
13,816,698$ 4,605,566$ 18,422,265$ 121,860,885$ 4.0%87,739,837$ 65,000 34,121,048$ 20250 85250
13,816,698$ 4,605,566$ 18,422,265$ 125,516,712$ 3.0%90,372,033$ 65,000 35,144,679$ 20250 85250
13,816,698$ 4,605,566$ 18,422,265$ 126,771,879$ 1.0%91,275,753$ 65,000 35,496,126$ 20250 85250
13,816,698$ 4,605,566$ 18,422,265$ 129,307,317$ 2.0%93,101,268$ 65,000 36,206,049$ 20250 85250
13,816,698$ 4,605,566$ 18,422,265$ 131,893,463$ 2.0%94,963,293$ 65,000 36,930,170$ 20250 85250
13,816,698$ 4,605,566$ 18,422,265$ 135,850,267$ 3.0%97,812,192$ 65,000 38,038,075$ 20250 85250
13,816,698$ 4,605,566$ 18,422,265$ 145,359,786$ 7.0%104,659,046$ 65,000 40,700,740$ 20250 85250
Taxes
Revenues
Water Sales to Member Cities
Water Sales
Budget 050
2023.04.03 Budget workbook FY 2024--draft.proposed tax and water rate
Fiscal Year Ending
June 30
Escalation factor
(inflation, growth,
interest)
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
2065
2066
2067
2068
2069
2070
2071
2072
Metropolitan Water District of Salt Lake & Sandy
Projected Cash Flow
Last Update: April 3, 2023
63 64 65 66 67 68 69 70 71 72
Treated Water
Rate Conveyance Fee
Non-member
Entity Water
Volume (AF)
Water Conveyance
for Others (AF)
Non-member
Entity Total Water
Sales and
Conveyance
Revenue
Jordanelle Special
Services District
Use of ODT Water
(AF)
Jordanelle Special
Services District
Water Rate ($/AF)
Revenue from
ODT Water
Total Water
Sales/Conveyance
Revenue
Revenue increase
(%)
3%3%3.00%
359.00$ 26.00$ 1,012 8,136$ 1,308,436$ 500 215.15$ 207,575$ 24,603,349$ 4.51%
370.00$ 27.00$ 974 8,608$ 1,333,278$ 500 218.16$ 209,081$ 25,322,317$ 2.92%
381.00$ 28.00$ 87,000$ 500 221.22$ 121,608$ 24,701,965$ -2.45%
392.00$ 29.00$ 87,000$ 500 224.31$ 112,157$ 25,427,315$ 2.94%
404.00$ 30.00$ 87,000$ 1,000 227.45$ 227,454$ 26,299,457$ 3.43%
420.00$ 31.00$ 87,000$ 1,200 230.64$ 276,766$ 27,388,169$ 4.14%
437.00$ 32.00$ 87,000$ 1,400 233.87$ 327,414$ 28,519,793$ 4.13%
459.00$ 34.00$ 109,500$ 1,600 237.14$ 379,426$ 29,999,574$ 5.19%
482.00$ 36.00$ 109,500$ 1,800 240.46$ 432,830$ 31,528,510$ 5.10%
506.00$ 38.00$ 109,500$ 2,000 243.83$ 487,655$ 33,132,644$ 5.09%
536.00$ 40.00$ 109,500$ 2,200 247.24$ 543,931$ 35,141,049$ 6.06%
568.00$ 42.00$ 109,500$ 2,400 250.70$ 601,686$ 37,268,061$ 6.05%
602.00$ 45.00$ 109,500$ 2,600 254.21$ 660,952$ 39,520,740$ 6.04%
644.00$ 48.00$ 109,500$ 2,766 257.77$ 712,996$ 42,285,304$ 7.00%
689.00$ 51.00$ 109,500$ 2,766 261.38$ 722,978$ 45,197,683$ 6.89%
710.00$ 53.00$ 109,500$ 2,766 265.04$ 733,099$ 46,538,760$ 2.97%
731.00$ 55.00$ 109,500$ 2,766 268.75$ 743,363$ 47,919,909$ 2.97%
753.00$ 57.00$ -$ 2,766 272.51$ 753,770$ 49,232,827$ 2.74%
776.00$ 59.00$ -$ 2,766 276.33$ 764,323$ 50,697,752$ 2.98%
799.00$ 61.00$ -$ 2,766 280.20$ 775,023$ 52,206,455$ 2.98%
823.00$ 63.00$ -$ 2,766 284.12$ 785,873$ 53,760,248$ 2.98%
848.00$ 65.00$ -$ 2,766 288.10$ 796,876$ 55,360,482$ 2.98%
873.00$ 67.00$ -$ 2,766 292.13$ 808,032$ 57,008,546$ 2.98%
899.00$ 69.00$ -$ 2,766 296.22$ 819,344$ 58,705,873$ 2.98%
926.00$ 71.00$ -$ 2,766 300.37$ 830,815$ 60,453,940$ 2.98%
954.00$ 73.00$ -$ 2,766 304.57$ 842,447$ 62,254,266$ 2.98%
983.00$ 75.00$ -$ 2,766 308.84$ 854,241$ 64,108,415$ 2.98%
1,012.00$ 77.00$ -$ 2,766 313.16$ 866,200$ 66,017,999$ 2.98%
1,042.00$ 79.00$ -$ 2,766 317.54$ 878,327$ 67,984,680$ 2.98%
1,073.00$ 81.00$ -$ 2,766 321.99$ 890,624$ 70,010,168$ 2.98%
1,105.00$ 83.00$ -$ 2,766 326.50$ 903,092$ 72,096,222$ 2.98%
1,138.00$ 85.00$ -$ 2,766 331.07$ 915,736$ 74,244,660$ 2.98%
1,172.00$ 88.00$ -$ 2,766 335.70$ 928,556$ 76,457,348$ 2.98%
1,207.00$ 91.00$ -$ 2,766 340.40$ 941,556$ 78,736,212$ 2.98%
1,255.00$ 95.00$ -$ 2,766 345.17$ 954,738$ 81,861,180$ 3.97%
1,305.00$ 99.00$ -$ 2,766 350.00$ 968,104$ 85,110,804$ 3.97%
1,344.00$ 102.00$ -$ 2,766 354.90$ 981,657$ 87,648,638$ 2.98%
1,384.00$ 105.00$ -$ 2,766 359.87$ 995,401$ 90,262,391$ 2.98%
1,467.00$ 111.00$ -$ 2,766 364.91$ 1,009,336$ 95,632,345$ 5.95%
1,570.00$ 119.00$ -$ 2,766 370.02$ 1,023,467$ 102,270,087$ 6.94%
1,680.00$ 127.00$ -$ 2,766 375.20$ 1,037,795$ 109,371,678$ 6.94%
1,747.00$ 132.00$ -$ 2,766 380.45$ 1,052,324$ 113,719,562$ 3.98%
1,817.00$ 137.00$ -$ 2,766 385.78$ 1,067,057$ 118,240,985$ 3.98%
1,890.00$ 142.00$ -$ 2,766 391.18$ 1,081,996$ 122,942,881$ 3.98%
1,947.00$ 146.00$ -$ 2,766 396.65$ 1,097,144$ 126,613,856$ 2.99%
1,966.00$ 147.00$ -$ 2,766 402.21$ 1,112,504$ 127,884,383$ 1.00%
2,005.00$ 150.00$ -$ 2,766 407.84$ 1,128,079$ 130,435,396$ 1.99%
2,045.00$ 153.00$ -$ 2,766 413.55$ 1,143,872$ 133,037,335$ 1.99%
2,106.00$ 158.00$ -$ 2,766 419.34$ 1,159,886$ 137,010,153$ 2.99%
2,253.00$ 169.00$ -$ 2,766 425.21$ 1,176,125$ 146,535,911$ 6.95%
Revenues
Water Sales
JSSD/ODT Water AgreementSales to Others
Budget 051
2023.04.03 Budget workbook FY 2024--draft.proposed tax and water rate
Fiscal Year Ending
June 30
Escalation factor
(inflation, growth,
interest)
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
2065
2066
2067
2068
2069
2070
2071
2072
Metropolitan Water District of Salt Lake & Sandy
Projected Cash Flow
Last Update: April 3, 2023
73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89
Salt Lake City
Metro Water
Project Capital
Assessment
Sandy City Metro
Water Project
Capital
Assessment
Sandy City
Ontario Drain
Tunnel Water
Assessment (net of
JSSD payments)
New Capacity
Assessments
Salt Lake City
Utah Lake System
Water (New
Supply)
Assessment
Sandy City Utah
Lake System
Water (New
Supply)
Assessment
Salt Lake City
SLAR/CC
Assessment Total Assessments
Little Dell
Revenues
POMWTP
Storage Revenues
Terminal
Reservoir Cell
Tower Revenues
LCWTP Cell
Tower Revenues
Other
Miscellaneous
Revenues
(includes bond
proceeds)
Total
Miscellaneous
Revenues
Operations and
Maintenance
Reserve Account
Interest Income
Total
Revenues
Net Cash Flow
(88 minus 52)
0%0%3.00%0%1.60%
7,021,892$ 4,210,322$ 624,931$ -$ 844,223$ -$ 12,701,368$ -$ 21,000$ 32,239$ 29,040$ 125,838$ 208,117$ 411,387$ 49,628,612$ (1,256,227)$
7,021,892$ 4,210,322$ 645,102$ -$ 844,223$ -$ 6,575,500$ 19,297,039$ -$ 21,000$ 33,206$ 29,040$ 34,606,000$ 34,689,246$ 866,291$ 98,597,157$ 17,534,669$
7,021,892$ 4,210,322$ 761,012$ -$ 844,223$ -$ 13,151,000$ 25,988,449$ 30,000$ 21,000$ 34,202$ 29,040$ 6,000$ 120,242$ 1,298,852$ 70,531,773$ (29,828,830)$
7,021,892$ 4,210,322$ 798,195$ -$ 844,223$ -$ 12,874,632$ 30,000$ 21,000$ 35,228$ 29,040$ 6,000$ 121,268$ 820,355$ 57,665,835$ (8,739,180)$
7,021,892$ 4,210,322$ 742,400$ 2,000,000$ 844,223$ -$ 14,818,837$ 30,000$ 21,000$ 36,285$ 29,040$ 6,000$ 122,325$ 680,165$ 60,343,049$ (5,694,652)$
7,021,892$ 4,210,322$ 732,677$ 2,000,000$ 844,223$ -$ 14,809,114$ 30,000$ 21,000$ 37,374$ 31,944$ 6,000$ 126,318$ 588,815$ 61,334,680$ (6,750,420)$
7,021,892$ 4,210,322$ 719,155$ 2,000,000$ 844,223$ -$ 14,795,592$ 30,000$ 21,000$ 38,495$ 31,944$ 6,000$ 127,439$ 480,528$ 62,345,617$ (7,946,208)$
7,021,892$ 4,210,322$ 701,318$ 2,125,000$ 844,223$ -$ 14,902,755$ 30,000$ 21,000$ 39,650$ 31,944$ 6,000$ 128,594$ 353,060$ 63,806,247$ 4,014,698$
7,021,892$ 4,210,322$ 675,660$ 3,250,000$ 844,223$ 753,225$ 16,755,322$ 30,000$ 21,000$ 31,944$ 6,000$ 88,944$ 417,461$ 67,212,502$ 4,571,197$
7,021,892$ 4,210,322$ (487,655)$ 3,250,000$ 844,223$ 753,225$ 15,592,007$ 30,000$ 21,000$ 31,944$ 6,000$ 88,944$ 490,790$ 67,726,649$ 5,863,795$
7,021,892$ 4,210,322$ (543,931)$ -$ 844,223$ 753,225$ 12,285,731$ 30,000$ 21,000$ 6,000$ 57,000$ 584,854$ 66,490,898$ (358,572)$
7,021,892$ 4,210,322$ (601,686)$ 3,000,000$ 844,223$ 753,225$ 15,227,976$ 30,000$ 21,000$ 6,000$ 57,000$ 579,102$ 71,554,403$ (814,450)$
3,510,946$ 2,105,161$ (660,952)$ 6,500,000$ 844,223$ 753,225$ 13,052,603$ 30,000$ 21,000$ 6,000$ 57,000$ 566,037$ 71,618,644$ 61,320$
(712,996)$ 6,500,000$ 844,223$ 753,225$ 7,384,452$ 30,000$ 21,000$ 6,000$ 57,000$ 567,020$ 68,716,041$ (4,452,391)$
(722,978)$ -$ 844,223$ 753,225$ 874,470$ 30,000$ 21,000$ 6,000$ 57,000$ 495,598$ 65,047,015$ 219,154$
(733,099)$ -$ 844,223$ 753,225$ 864,349$ 30,000$ 21,000$ 6,000$ 57,000$ 499,113$ 66,381,487$ 4,444,316$
(743,363)$ 2,000,000$ 844,223$ 753,225$ 2,854,085$ 30,000$ 21,000$ 6,000$ 57,000$ 570,406$ 69,823,665$ 4,075,392$
(753,770)$ 12,500,000$ 844,223$ 753,225$ 13,343,678$ 30,000$ 21,000$ 6,000$ 57,000$ 635,782$ 81,691,551$ 3,569,881$
(764,323)$ 6,500,000$ 844,223$ 753,225$ 7,333,125$ 30,000$ 21,000$ 6,000$ 57,000$ 693,048$ 77,203,189$ 3,143,009$
(775,023)$ 6,500,000$ 844,223$ 753,225$ 7,322,425$ 30,000$ 21,000$ 6,000$ 57,000$ 743,466$ 78,751,611$ 2,685,457$
(785,873)$ -$ 844,223$ 753,225$ 811,575$ 30,000$ 21,000$ 6,000$ 57,000$ 786,545$ 73,837,632$ 2,195,637$
(796,876)$ -$ 844,223$ 753,225$ 800,572$ 30,000$ 21,000$ 6,000$ 57,000$ 821,766$ 75,462,084$ 1,671,928$
(808,032)$ 2,000,000$ 844,223$ 753,225$ 2,789,416$ 30,000$ 21,000$ 6,000$ 57,000$ 848,586$ 79,125,813$ 1,706,653$
(819,344)$ 12,500,000$ 844,223$ 753,225$ 13,278,104$ 30,000$ 21,000$ 6,000$ 57,000$ 875,963$ 91,339,205$ 1,712,631$
(830,815)$ 6,074,000$ 844,223$ 753,225$ 6,840,633$ 30,000$ 21,000$ 6,000$ 57,000$ 903,436$ 86,677,274$ 1,688,258$
(842,447)$ -$ 844,223$ 753,225$ 755,001$ 30,000$ 21,000$ 6,000$ 57,000$ 930,518$ 82,419,050$ 1,631,632$
(854,241)$ 2,700,000$ 844,223$ 753,225$ 3,443,207$ 30,000$ 21,000$ 6,000$ 57,000$ 956,692$ 86,987,579$ 1,540,298$
(866,200)$ 11,500,000$ 844,223$ 753,225$ 12,231,248$ 30,000$ 21,000$ 6,000$ 57,000$ 981,401$ 97,709,912$ 817,759$
(878,327)$ -$ 844,223$ 753,225$ 719,121$ 30,000$ 21,000$ 6,000$ 57,000$ 994,519$ 88,177,584$ 46,160$
(890,624)$ -$ 844,223$ 753,225$ 706,824$ 30,000$ 21,000$ 6,000$ 57,000$ 995,259$ 90,191,516$ (776,759)$
(903,092)$ -$ 844,223$ 753,225$ 694,356$ 30,000$ 21,000$ 6,000$ 57,000$ 982,799$ 92,252,642$ (1,654,082)$
(915,736)$ -$ 844,223$ 753,225$ 681,712$ 30,000$ 21,000$ 6,000$ 57,000$ 956,265$ 94,361,902$ (312,153)$
(928,556)$ -$ 844,223$ 753,225$ 668,892$ 30,000$ 21,000$ 6,000$ 57,000$ 951,258$ 96,556,762$ (1,271,267)$
(941,556)$ -$ 844,223$ 753,225$ 655,892$ 30,000$ 21,000$ 6,000$ 57,000$ 930,865$ 98,802,233$ (2,294,104)$
(954,738)$ -$ 844,223$ 753,225$ 642,710$ 30,000$ 21,000$ 6,000$ 57,000$ 894,064$ 101,877,219$ (2,605,814)$
(968,104)$ -$ 844,223$ 753,225$ 629,344$ 30,000$ 21,000$ 6,000$ 57,000$ 852,263$ 105,071,676$ (2,921,339)$
(981,657)$ -$ 844,223$ 753,225$ 615,791$ 30,000$ 21,000$ 6,000$ 57,000$ 805,400$ 107,549,094$ (4,082,175)$
(995,401)$ -$ 844,223$ 753,225$ 602,047$ 30,000$ 21,000$ 6,000$ 57,000$ 739,916$ 110,083,619$ (5,318,987)$
(1,009,336)$ 3,991,000$ 844,223$ 753,225$ 4,579,112$ 30,000$ 21,000$ 6,000$ 57,000$ 654,592$ 119,345,314$ (3,958,632)$
(1,023,467)$ 9,312,332$ 844,223$ 753,225$ 9,886,313$ 30,000$ 21,000$ 6,000$ 57,000$ 591,090$ 131,226,754$ (1,453,109)$
(1,037,795)$ 54,909,995$ 844,223$ 753,225$ 55,469,648$ 30,000$ 21,000$ 6,000$ 57,000$ 567,780$ 183,888,370$ 1,406,164$
(1,052,324)$ 54,909,995$ 844,223$ 753,225$ 55,455,119$ 30,000$ 21,000$ 6,000$ 57,000$ 590,337$ 188,244,282$ 1,401,358$
(1,067,057)$ 51,509,995$ 844,223$ 753,225$ 52,040,386$ 30,000$ 21,000$ 6,000$ 57,000$ 612,817$ 189,373,452$ 1,406,965$
(1,081,996)$ -$ 844,223$ 753,225$ 515,452$ 30,000$ 21,000$ 6,000$ 57,000$ 635,386$ 142,572,984$ 1,423,684$
(1,097,144)$ -$ 844,223$ 753,225$ 500,304$ 30,000$ 21,000$ 6,000$ 57,000$ 658,224$ 146,251,649$ 233,282$
(1,112,504)$ -$ 844,223$ 753,225$ 484,944$ 30,000$ 21,000$ 6,000$ 57,000$ 661,967$ 147,510,558$ (3,560,513)$
(1,128,079)$ -$ 844,223$ 753,225$ 469,369$ 30,000$ 21,000$ 6,000$ 57,000$ 604,851$ 149,988,880$ (6,326,024)$
(1,143,872)$ -$ 844,223$ 753,225$ 453,576$ 30,000$ 21,000$ 6,000$ 57,000$ 503,372$ 152,473,548$ (9,284,178)$
(1,159,886)$ -$ -$ (1,159,886)$ 30,000$ 21,000$ 6,000$ 57,000$ 354,440$ 154,683,972$ (11,126,608)$
(1,176,125)$ -$ -$ (1,176,125)$ 30,000$ 21,000$ 6,000$ 57,000$ 175,953$ 164,015,004$ (7,661,970)$
Assessments
Revenues
Miscellaneous RevenuesCapacity/Supply Assessments
Budget 052
2023.04.03 Budget workbook FY 2024--draft.proposed tax and water rate
Fiscal Year Ending
June 30
Escalation factor
(inflation, growth,
interest)
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
2061
2062
2063
2064
2065
2066
2067
2068
2069
2070
2071
2072
Metropolitan Water District of Salt Lake & Sandy
Projected Cash Flow
Last Update: April 3, 2023
90 91 92 93 94 95 96 97 98 99 100 101 102 103
Total Available
Reserves
Required
Operations and
Maintenance
Reserve Account
Balance
Required Renewal
and Replacement
Reserve Fund
Jordan Aqueduct
Reserve Account
JVWTP
Operations and
Maintenance
Reserve
150th South Pipeline
Agreement
Total Restricted
Reserves
Total Reserves
Available to be
Assigned
Capital Projects
Reserve
Self Insurance/
Contingency
Reserve
Interest Rate
Stabilization Reserve
Aquifer Storage and
Recovery (ASR)
Reserve
Total Assigned
Reserves
Remaining
Unassigned
Reserves
1.60%1.60%
63,433,824$ 5,699,658$ 650,000$ 43,921$ 20,000$ 36,031$ 6,449,610$ 56,984,214$ 6,047,413$ 2,000,000$ 3,284,866$ 2,332,507$ 13,664,786$ 43,319,428$
80,968,492$ 6,744,042$ 650,000$ 44,626$ 20,000$ 36,609$ 7,495,276$ 73,473,216$ 15,468,508$ 2,000,000$ 3,284,866$ -$ 20,753,374$ 52,719,842$
51,139,662$ 6,944,100$ 650,000$ 45,341$ 20,000$ 37,196$ 7,696,638$ 43,443,024$ 9,180,063$ 2,000,000$ 3,284,866$ -$ 14,464,929$ 28,978,095$
42,400,482$ 7,192,063$ 650,000$ 46,069$ 20,000$ 37,793$ 7,945,925$ 34,454,557$ 7,214,903$ 2,000,000$ 3,284,866$ -$ 12,499,769$ 21,954,788$
36,705,830$ 7,407,695$ 650,000$ 46,808$ 20,000$ 38,399$ 8,162,902$ 28,542,928$ 6,165,100$ 2,000,000$ 3,284,866$ -$ 11,449,966$ 17,092,962$
29,955,410$ 7,646,209$ 650,000$ 47,559$ 20,000$ 39,015$ 8,402,783$ 21,552,627$ 6,242,319$ 2,000,000$ 3,284,866$ -$ 11,527,185$ 10,025,441$
22,009,202$ 7,874,148$ 650,000$ 48,322$ 20,000$ 39,641$ 8,632,111$ 13,377,091$ 6,270,758$ 2,000,000$ 3,284,866$ -$ 11,555,624$ 1,821,467$
26,023,900$ 7,969,752$ 650,000$ 49,097$ 20,000$ 40,277$ 8,729,125$ 17,294,775$ 8,136,532$ 2,000,000$ 3,284,866$ -$ 13,421,398$ 3,873,376$
30,595,097$ 8,243,962$ 650,000$ 49,884$ 20,000$ 40,923$ 9,004,769$ 21,590,328$ 10,120,826$ 2,000,000$ 3,284,866$ -$ 15,405,692$ 6,184,636$
36,458,892$ 8,507,933$ 650,000$ 50,684$ 20,000$ 41,579$ 9,270,196$ 27,188,695$ 11,959,854$ 2,000,000$ 3,284,866$ -$ 17,244,720$ 9,943,976$
36,100,320$ 8,820,026$ 650,000$ 51,498$ 20,000$ 42,246$ 9,583,770$ 26,516,550$ 12,506,891$ 2,000,000$ 3,284,866$ -$ 17,791,757$ 8,724,793$
35,285,870$ 9,186,388$ 650,000$ 52,324$ 20,000$ 42,924$ 9,951,636$ 25,334,234$ 12,932,125$ 2,000,000$ 3,284,866$ -$ 18,216,991$ 7,117,242$
35,347,189$ 9,482,632$ 650,000$ 53,163$ 20,000$ 43,613$ 10,249,407$ 25,097,782$ 13,371,818$ 2,000,000$ 3,284,866$ -$ 18,656,684$ 6,441,098$
30,894,798$ 9,789,009$ 650,000$ 54,016$ 20,000$ 44,312$ 10,557,337$ 20,337,461$ 13,826,460$ 2,000,000$ 3,284,866$ -$ 19,111,326$ 1,226,136$
31,113,953$ 10,105,873$ 650,000$ 54,882$ 20,000$ 45,023$ 10,875,778$ 20,238,174$ 14,296,559$ 2,000,000$ 3,284,866$ -$ 19,581,425$ 656,749$
35,558,268$ -$ -$ 55,763$ 20,000$ 45,745$ 121,508$ 35,436,760$ 14,782,642$ 2,000,000$ -$ -$ 16,782,642$ 18,654,118$
39,633,660$ -$ -$ 56,657$ 20,000$ 46,479$ 123,136$ 39,510,524$ 15,285,252$ 2,000,000$ -$ -$ 17,285,252$ 22,225,272$
43,203,541$ -$ -$ 57,566$ 20,000$ 47,225$ 124,791$ 43,078,750$ 15,804,951$ 2,000,000$ -$ -$ 17,804,951$ 25,273,799$
46,346,550$ -$ -$ 58,490$ 20,000$ 47,982$ 126,472$ 46,220,078$ 16,342,319$ 2,000,000$ -$ -$ 18,342,319$ 27,877,759$
49,032,006$ -$ -$ 59,428$ 20,000$ 48,752$ 128,180$ 48,903,826$ 16,897,958$ 2,000,000$ -$ -$ 18,897,958$ 30,005,869$
51,227,643$ -$ -$ 60,381$ 20,000$ 49,534$ 129,915$ 51,097,728$ 17,472,488$ 2,000,000$ -$ -$ 19,472,488$ 31,625,240$
52,899,571$ -$ -$ 61,350$ 20,000$ 50,329$ 131,678$ 52,767,893$ 18,066,553$ 2,000,000$ -$ -$ 20,066,553$ 32,701,340$
54,606,224$ -$ -$ 62,334$ 20,000$ 51,136$ 133,470$ 54,472,754$ 18,680,816$ 2,000,000$ -$ -$ 20,680,816$ 33,791,939$
56,318,855$ -$ -$ 63,334$ 20,000$ 51,956$ 135,290$ 56,183,565$ 19,315,963$ 2,000,000$ -$ -$ 21,315,963$ 34,867,602$
58,007,113$ -$ -$ 64,350$ 20,000$ 52,790$ 137,140$ 57,869,973$ 19,972,706$ 2,000,000$ -$ -$ 21,972,706$ 35,897,267$
59,638,745$ -$ -$ 65,382$ 20,000$ 53,637$ 139,019$ 59,499,726$ 20,651,778$ 2,000,000$ -$ -$ 22,651,778$ 36,847,948$
61,179,043$ -$ -$ 66,431$ 20,000$ 54,497$ 140,928$ 61,038,115$ 21,353,939$ 2,000,000$ -$ -$ 23,353,939$ 37,684,177$
61,996,802$ -$ -$ 67,496$ 20,000$ 55,371$ 142,868$ 61,853,934$ 22,079,973$ 2,000,000$ -$ -$ 24,079,973$ 37,773,962$
62,042,961$ -$ -$ 68,579$ 20,000$ 56,260$ 144,839$ 61,898,123$ 22,830,692$ 2,000,000$ -$ -$ 24,830,692$ 37,067,431$
61,266,202$ -$ -$ 69,679$ 20,000$ 57,162$ 146,841$ 61,119,361$ 23,606,935$ 2,000,000$ -$ -$ 25,606,935$ 35,512,426$
59,612,121$ -$ -$ 70,797$ 20,000$ 58,079$ 148,876$ 59,463,244$ 24,409,571$ 2,000,000$ -$ -$ 26,409,571$ 33,053,674$
59,299,968$ -$ -$ 71,933$ 20,000$ 59,011$ 150,943$ 59,149,024$ 25,239,496$ 2,000,000$ -$ -$ 27,239,496$ 31,909,528$
58,028,701$ -$ -$ 73,087$ 20,000$ 59,957$ 153,044$ 57,875,657$ 26,097,639$ 2,000,000$ -$ -$ 28,097,639$ 29,778,018$
55,734,597$ -$ -$ 74,259$ 20,000$ 60,919$ 155,178$ 55,579,418$ 26,984,959$ 2,000,000$ -$ -$ 28,984,959$ 26,594,460$
53,128,783$ -$ -$ 75,450$ 20,000$ 61,896$ 157,347$ 52,971,436$ 27,902,448$ 2,000,000$ -$ -$ 29,902,448$ 23,068,989$
50,207,444$ -$ -$ 76,661$ 20,000$ 62,889$ 159,550$ 50,047,894$ 28,851,131$ 2,000,000$ -$ -$ 30,851,131$ 19,196,763$
46,125,268$ -$ -$ 77,890$ 20,000$ 63,898$ 161,788$ 45,963,480$ 29,832,069$ 2,000,000$ -$ -$ 31,832,069$ 14,131,411$
40,806,282$ -$ -$ 79,140$ 20,000$ 64,923$ 164,063$ 40,642,219$ 30,846,360$ 2,000,000$ -$ -$ 32,846,360$ 7,795,859$
36,847,650$ -$ -$ 80,409$ 20,000$ 65,965$ 166,374$ 36,681,276$ 31,895,136$ 2,000,000$ -$ -$ 33,895,136$ 2,786,141$
35,394,541$ -$ -$ 81,699$ 20,000$ 67,023$ 168,722$ 35,225,819$ 32,979,570$ 2,000,000$ -$ -$ 34,979,570$ 246,249$
36,800,705$ -$ -$ 83,010$ 20,000$ 68,098$ 171,108$ 36,629,598$ 34,100,876$ 2,000,000$ -$ -$ 36,100,876$ 528,722$
38,202,063$ -$ -$ 84,341$ 20,000$ 69,190$ 173,532$ 38,028,532$ 35,260,306$ 2,000,000$ -$ -$ 37,260,306$ 768,226$
39,609,029$ -$ -$ 85,694$ 20,000$ 70,300$ 175,995$ 39,433,034$ 36,459,156$ 2,000,000$ -$ -$ 38,459,156$ 973,878$
41,032,713$ -$ -$ 87,069$ 20,000$ 71,428$ 178,497$ 40,854,216$ 37,698,767$ 2,000,000$ -$ -$ 39,698,767$ 1,155,449$
41,265,995$ -$ -$ 88,466$ 20,000$ 72,574$ 181,039$ 41,084,956$ 38,980,525$ 2,000,000$ -$ -$ 40,980,525$ 104,431$
37,705,482$ -$ -$ 89,885$ 20,000$ 73,738$ 183,623$ 37,521,860$ 31,696,839$ 2,000,000$ -$ -$ 33,696,839$ 3,825,021$
31,379,459$ -$ -$ 91,327$ 20,000$ 74,921$ 186,247$ 31,193,211$ 24,165,507$ 2,000,000$ -$ -$ 26,165,507$ 5,027,704$
22,095,280$ -$ -$ 92,792$ 20,000$ 76,123$ 188,914$ 21,906,366$ 16,378,111$ 2,000,000$ -$ -$ 18,378,111$ 3,528,256$
10,968,673$ -$ -$ 94,280$ 20,000$ 77,344$ 191,624$ 10,777,049$ 8,325,942$ 2,000,000$ -$ -$ 10,325,942$ 451,107$
3,306,703$ -$ -$ 95,793$ 20,000$ 78,584$ 194,377$ 3,112,326$ -$ 2,000,000$ -$ -$ 2,000,000$ 1,112,326$
Reserve Balances
Restricted Assigned
Budget 053
Cash Flow Analysis Assumptions
Budget 054
METROPOLITAN WATER DISTRICT OF SALT LAKE & SANDY
CASH FLOW ANALYSIS ASSUMPTIONS
March 28, 2023
Fiscal year based on July 1 through June 30 of each year. Fiscal Year (FY) 2024 runs from July
1, 2023 thru June 30, 2024.
1a District Regular Operating Expenses: For FY 2023, the amount shown is the budgeted
expenditures expected for June 30, 2023 based on the adopted budget for the period ending
June 30, 2023. The amount shown is the budgeted expenditures expected for FY204. This
column does not include Central Utah Project (CUP) costs shown in columns 4 and 10,
depreciation, amortization, or interest expense. There is an assumed 3.0% annual increase for
future years. This assumed increase is based on a 12-year average of District-controlled
expenses.
1b. District Non-Routine Operating Expenses: The amount shown is the budgeted
expenditures expected for FY204. The column includes non-routine projects and those
projects that do not qualify as capital budget expenses forecasted for next 10 years. There is a
cost escalation of 2.0%, based on previous 10-year average, for future years.
2. CUP M&I System OM&R Cost ($/acre foot): The CUP Operation, Maintenance, and
Replacement (OM&R) cost is escalated at the average of 5.53%, based on a 20-year average.
3. CUP M&I System OM&R Reserve Cost ($/acre foot): The CUP Operation, Maintenance,
and Replacement (OM&R) reserve cost is escalated at the average of 11.52%. Financial
plans being implemented by Central Utah Water Conservancy District (CUWCD) indicate an
increase in the total CUP M&I System Water O&M Cost (column 2 plus column 3). The
purpose of the escalating costs is to fund an asset management program to pay for aging (50
years or so old) infrastructure. The escalation is proposed as follows:
a. FY 2024: $65.00 (8% increase)
b. FY 2025: $70.00 (8% increase)
c. FY 2026: $75.00 (7% increase)
d. Increases beyond FY 2026 will be evaluated in the years leading up to FY 2027
with a stated need of the total cost to reach $300 per acre foot.
e. The escalated percentage in column 3 is based on a five-year average for FY22-
FY26.
4. CUP M&I System Water O&M Cost: O&M cost of CUP M&I system water.
5. Total CUP M&I System Water Costs (including capital expenses): Total cost of CUP
M&I system water (column 4 plus column 40).
6. CUP M&I System Water Volume: 20,000 acre feet per year. The 20,000 acre feet is
subject to the Operations, Maintenance, and Replacement (OM&R) Cost (column 2) and
OM&R Reserve Cost (column 3) on a per acre foot basis in perpetuity. In FY 2049, the 40-
year petition repayment period will have ended. The subsequent years will be only OM&R
costs applied to the total volume of 20,000 acre feet.
7. CUP M&I System Water Unit Cost: Column 5 divided by column 6 ($/acre foot).
Budget 055
8. CUP ULS OM&R Cost: The CUP Utah Lake System (ULS) Operation, Maintenance, and
Replacement (OM&R) cost (see column 2).
9. CUP ULS OM&R Reserve Cost: The CUP ULS Operation, Maintenance, and
Replacement (OM&R) reserve cost (see column 3).
10. CUP ULS Water O&M Cost: O&M cost of CUP ULS water ((sum of columns 8 and 9)
multiplied by column 12).
11. Total CUP ULS Water Costs (including capital expenses): Total cost of CUP ULS water
(sum of column 10 and column 47).
12. CUP ULS Water Petition Repayment Volume: 5600 acre feet total (3100 acre feet per
year beginning in FY 2021; 5600 acre feet per year beginning in FY 2031). In FY 2070, the
repayment period will end. The subsequent years will be only OM&R and reserve costs
applied to the total volume of 5600 acre feet.
13. CUP ULS Water Unit Cost: Column 11 divided by column 12 ($/acre foot).
14. Total Operating Expenses: Sum of all operating expenses (column 1a plus column 1b).
15. Ontario Drain Tunnel Volume: Estimated volume based on due diligence work for Sandy
City on water purchase was 3000 acre feet annually. The ten-year average is 2766 acre feet.
16. Ontario Drain Tunnel Cost: Estimated cost per acre foot based on Sandy City’s special
water supply assessment to pay for the water right (column 17 divided by column 15).
17. Ontario Drain Tunnel Water Cost: Total of Sandy City’s special assessment to pay for the
water right. This cost was funded with the 2005 bonds (which have since been refunded) so
the cost for this column is not included in the calculation of total expenses.
18. 2021A/B: Fixed rate debt; all-in interest rate of 3.609%. Original principal amount of
$55,580,000.
19. 2012B: Fixed rate debt; all-in interest rate of 1.776%. Original principal amount of
$12,105,000.
20. 2015A: Fixed rate debt; all-in interest rate of 2.71%. Original principal amount of
$5,975,000.
21. 2016A: Fixed rate debt; all-in interest rate of 2.25%. Original principal amount of
$59,200,000.
22. 2020A: Fixed rate debt; all-in interest rate of 1.73%. Original principal amount of
$67,415,000.
23. Future Loan (Anticipated FY24). May secure a WIFIA or other loans for Salt Lake
Aqueduct Replacement – Cottonwood Conduit (SLAR-CC) project.
Budget 056
24. Future Bond (Anticipated FY24). Anticipate a $34.5M bond for Salt Lake Aqueduct
Replacement – Cottonwood Conduit (SLAR-CC) project.
25. Total Debt Payments: Sum of debt service columns (columns 18-24).
26. Debt Coverage Ratio: This is the calculated debt coverage ratio. The minimum required by
contract is 1.15 with a policy goal of 1.25.
27. Deer Creek Safety of Dams Repayment: Actual MWDSLS share of payment to United
States Bureau of Reclamation for Deer Creek Safety of Dams repayment. This repayment is
made to the Bureau of Reclamation at 0.00% interest. The repayment will be completed in
FY24.
28. Provo River Aqueduct (2020B Bonds) Repayment: Actual MWDSLS share of payment
for the enclosure costs of the Provo River Aqueduct.
29. PRWUA Assessment (O&M): FY 2024 is forecasted at $21.88 per share for 61,900 shares.
There is an assumed 2.38% increase to PRWUA O&M assessment for future years.
30. PRWUA Assessment (Capital): MWDSLS is assessed by PRWUA for capital projects. The
FY 2024 capital assessment is forecasted at $17.00 per acre foot for 61,900 acre feet. There
is a cost escalation of 3.56%, based on the previous 11-year average, for future years.
31. Provo River Aqueduct O&M by PRWUA: MWDSLS is assessed by PRWUA for services
to operate and maintain the Provo River Aqueduct. Operations costs are assessed based on
the volume of water used each year. Maintenance costs are assessed based on the pro-rata
share of capacity (187 cfs out of 626 cfs). Based on a previous 3-year average, a 3.09%
increase is assumed for future years.
32. Deer Creek Intake Station O&M by PRWUA: MWDSLS reimburses PRWUA for
services to operate the Salt Lake Aqueduct Intake at Deer Creek Dam. MWDSLS pays
roughly one-third of the costs to operate this station. PRWUA (operation of Deer Creek
Dam) and the Bureau of Reclamation (operation of the power plant) share in the remaining
two-thirds of the costs. Based on a previous 5-year average, a 2.58% increase is assumed for
future years.
33. Total PRWUA Costs: The sum of columns 27 through 32.
34. Total MWDSLS PRWUA Shares: 61,900 shares.
35. PRWUA Water Supply Allocation (Percent): The assumed percentage of PRWUA water
available to MWDSLS. Since Jordanelle Reservoir was constructed, the allocation has
ranged from 43.5% to 100%.
36. PRWUA Water Supply Volume Available to MWDSLS (AF): 61,900 acre feet at full
allocation.
37. PRWUA Water Supply Unit Cost ($/AF): Column 33 divided by column 36 ($/acre foot).
Budget 057
38. CUP M&I System Water Petition Repayment Volume (AF): 20,000 acre feet. In FY
2045, the first allotment of the 40-year repayment periods begins to be paid off and the
repayment amounts for allotment notices will step down by 4000 acre feet each year
thereafter. After FY 2048, the costs are OM&R costs only.
39. CUP M&I System Petition Repayment Unit Cost ($/AF): The annual petition repayment
cost of CUP M&I system water is $148.56 per acre foot.
40. CUP M&I System Petition Repayment Total Cost: The annual petition repayment cost of
CUP M&I system water (column 38 multiplied by column 39).
41. Salt Lake City CUP Utah Lake System (ULS) Water Petition Repayment Volume (AF):
MWDSLS’s petition is for 5600 acre feet. This is a reduction of 3000 acre feet from the
original petition amount of 8600 acre feet. The reduction is a result of the agreements related
to the Provo River Aqueduct. Salt Lake City deliveries and repayment obligations for 3100
acre feet per year began in FY 2021. The repayment will continue until FY 2070. The
following years will be OM&R and reserve costs only.
42. Salt Lake City CUP ULS Petition Repayment Unit Cost ($/AF): Based on a 50-year
amortization, the annual petition repayment of $272.33 per acre foot began in FY 2021.
43. Salt Lake City CUP ULS Petition Repayment Total Cost: The annual petition repayment
cost of Salt Lake City CUP ULS water (column 41 multiplied by column 42).
44. Sandy City CUP ULS Water Petition Repayment Volume (AF): Sandy City deliveries
and repayment obligations are for 2500 acre feet per year and will begin in FY 2031. The
repayment will continue until FY 2070. The following years will be OM&R and reserve
costs only.
45. Sandy City CUP ULS Petition Repayment Unit Cost ($/AF): Based on 40-year
amortization, the estimated annual petition repayment of $301.29 per acre foot begins in FY
2031.
46. Sandy City CUP ULS Petition Repayment Total Cost: The annual petition repayment
cost of Sandy City CUP ULS water (column 44 multiplied by column 45).
47. CUP ULS Petition Repayment Total Cost: The annual petition repayment cost of CUP
ULS water (sum of columns 43 and 46).
48. Non-Capacity Capital Expenditures: Capital expenditures estimated for 10-years based on
current asset management projections. For years starting with FY 2035, costs are based on
the average of the prior years. Thereafter, the amount is escalated at a 3.4% increase each
year.
49. Capital Expenditures for Jordan Aqueduct System: Numbers are based on 10-year
projections received from Jordan Valley Water Conservancy District. For years starting with
Budget 058
FY 2035, costs are based on the average of the prior years. Thereafter, the amount is
escalated at a 3.4% increase each year.
50. New Capacity Capital Expenditures: The expenses shown in FY2024 relate to the Aquifer
Storage and Recovery (ASR) pilot testing and phase 1. These costs will be funded by an
American Rescue Plan Act (ARPA) grant and MWDSLS reserves. Future years reflect
expenses related to additional ASR phases, the 150th South Pump Station, the potential
repayment to Central Utah Water Conservancy District for activity related to the Metro
Water Project, and other projects associated with the updated Master Plan. The timing of
these projects is uncertain but the current estimated timing is shown. Any expenses will be
offset by revenues from assessments to the member cities (see column 76).
51. Total Capital Expenditures: Sum of capital expenditures columns (sum of columns 40, 47,
49, and 50).
52. Total Expenses (i.e., Revenue Requirements): Sum of columns 14, 25, and 51.
53. Salt Lake City Taxes: Revenue projections include increasing the certified tax rate to
0.00035. These numbers include prior year tax collections and fees in lieu of taxes. The tax
year 2022 certified rate for Salt Lake City is 0.000212. The maximum certified rate that the
District is allowed to establish is 0.0005.
54. Sandy City Taxes: Revenue projections include increasing the certified tax rate to 0.00035.
These numbers include prior year tax collections and fees in lieu of taxes. The tax year 2022
certified rate for Sandy City is 0.000221. The maximum certified rate that the District is
allowed to establish is 0.0005.
55. Total MWDSLS Taxes: Sum of tax columns (sum of columns 53 and 54).
56. Total Water Sales to Member Cities (fixed rate): A fixed charge for water use is levied to
the member cities on a monthly basis.
57. Proposed Water Rate Increase: Percent increase applied to prior fiscal year fixed charge
and other rates (treatment charge, conveyance charge, etc.).
58. Water Sales to Salt Lake City (fixed rate): Salt Lake City water sales and conveyance
fees. This is based on the pro-rata split of column 56 based on historic water deliveries to
Salt Lake City and Sandy City. Salt Lake City’s pro-rata share is currently 72%.
59. Estimated Water Sales to Salt Lake City (AF): Projected Salt Lake City water deliveries.
60. Water Sales to Sandy City (fixed rate): Sandy City water sales and conveyance fees. This
is based on the pro-rata split of column 56 based on historic water deliveries to Salt Lake
City and Sandy City. Sandy City’s pro-rata share is currently 28%.
61. Estimated Water Sales to Sandy City (AF): Projected Sandy City water deliveries.
62. Total Water Sales Volume to Member Cities: Total volume of water deliveries to member
cities (sum of columns 59 and 61).
Budget 059
63. Treated Water Rate: Water rates are as shown in the table. The rates escalate as shown in
column 57 or at 3% whichever is greater.
64. Conveyance Fee: Rate ($/AF) to convey water in District pipeline facilities. Rates for FY
2024 escalate at 3%.
65. Non-member Entity Water Volume (AF): The average of the prior three fiscal years is
1012 acre feet of treatment and conveyance charges to Jordan Valley Water Conservancy
District. This revenue is obtained on the basis of surplus capacity being available. Sales are
shown for the next fiscal year based on currently available system capacities. Due to the
uncertainty of future utilization of system capacity, sales in future years are not anticipated
and will be evaluated on a year-to-year basis. Revenues received for treating and conveying
water for others is utilized to offset related operational and maintenance costs. Untreated
water sales to other entities are made on the basis of surplus supplies and capacity being
available. The rate for untreated water for FY 2024 escalates at 3%. The raw water rate
charge is different from member entities. Due to the uncertainty of future water supplies and
available capacity, sales in future years are not anticipated and will be evaluated on a year-to-
year basis. Any revenues from sales of this nature are placed in a reserve to fund future
projects related to aquifer, storage, and recovery (ASR).
66. Water Conveyance for Others (AF): Non-District raw water that is conveyed through
District pipelines but not treated by the District (e.g., DACRWTP (CUWCD), Highland
Conservation District (for Alpine Country Club), and Southeast Regional Water Treatment
Plant (JVWCD)). The average of the prior three fiscal years is 8136 acre feet. These sales are
made on the basis of surplus capacity being available. Sales are shown for the next fiscal year
based on currently available system capacities. Due to the uncertainty of future utilization of
system capacity, sales in future years are not anticipated and will be evaluated on a year-to-
year basis.
67. Non-member Entity Total Water Sales and Conveyance Revenue: Total non-member
entity revenue amount for water sales and conveyance charges.
68. Jordanelle Special Services (JSSD) District Use of ODT (Ontario Drain Tunnel) Water
(AF): Estimated volume of water to be used by JSSD as per agreement. The ten-year
average yield of ODT is 2766 AF.
69. Jordanelle Special Services District Water Rate ($/AF): Revenue is anticipated from
JSSD as shown on the spreadsheet and is based on agreements (as amended) with JSSD. Any
revenues received by the District will be passed on to Sandy City in the form of a credit to
their ODT assessment. The JSSD water rate is escalated annually based on the current CPI
(not to exceed 3%).
70. Revenue from ODT Water: Anticipated revenue from JSSD.
71. Total Water Sales/Conveyance Revenue: Sum of water sales revenues.
72. Revenue increase (%): The calculated increase of total revenues. The calculation is based
on dollar amounts only and does not reflect the actual volume of water forecasted for use.
Budget 060
73. Salt Lake City Metro Water Project Capital Assessment: Assessment to pay for Salt
Lake City’s portion of the Metro Water Project. Based on Salt Lake City’s share of capacity
in the Point of the Mountain Water Treatment Plant, Point of the Mountain Aqueduct, and
improvements to Little Cottonwood Water Treatment Plant. Based on numbers presented to
member cities and MWDSLS board in February 2001.
74. Sandy City Metro Water Project Capital Assessment: Assessment to pay for Sandy
City’s portion of the Metro Water Project. Based on Sandy City’s share of capacity in the
Point of the Mountain Water Treatment Plant, Point of the Mountain Aqueduct, and
improvements to Little Cottonwood Water Treatment Plant. Based on numbers presented to
member cities and MWDSLS board in February 2001.
75. Sandy City Ontario Drain Tunnel Water Assessment (net of JSSD payments):
Assessment to Sandy City to pay for Ontario Drain Tunnel water right purchase. The
assessment is reduced by the annual revenue received from the ODT water sales to JSSD.
The net amount is shown in this column. The assessment ends in 2031. The assessment turns
to a negative amount as the JSSD revenues exceed the Ontario Drain Tunnel assessment.
This means Sandy City will be credited on its water billings in the amounts shown as
negative numbers in this column.
76. New Capacity Assessments: Assessments for new capacity projects.
77. Salt Lake City Utah Lake System Water (New Supply) Assessment: Assessments to Salt
Lake City to pay for Utah Lake System water beginning in FY 2021. See column 43.
78. Sandy City Utah Lake System Water (New Supply) Assessment: Assumed assessments
to Sandy City to pay for expected Utah Lake System water beginning in FY 2031. See
column 46.
79. Salt Lake City SLAR/CC Assessment: Salt Lake City’s financial responsibility for the
SLAR/CC project.
80. Total Assessments: Sum of assessments columns 73-79.
81. Little Dell Revenues: Revenues received from Salt Lake County for operation and
maintenance expenses performed by Salt Lake City Public Utilities at Little Dell Dam.
Pursuant to a 1986 agreement, Salt Lake County is responsible for 30% of the O&M costs of
Little Dell.
82. POMWTP (Point of the Mountain Water Treatment Plant) Storage Revenues:
Revenues received from Jordan Valley Water Conservancy District for reimbursement of
operation and maintenance of the POMWTP finished water storage reservoir. This is based
on the Facilities Cooperation Agreement dated October 4, 2007.
83. Terminal Reservoir Cell Tower Revenues: Revenue from lease of property for a cell
tower located at Terminal Reservoir. This is based on an agreement with Crown Castle
(originally T-Mobile) first established in May 2007. The agreement has been extended with
an expiration date of March 2030.
Budget 061
84. LCWTP (Little Cottonwood Water Treatment Plant) Cell Tower Revenues: Revenue
from lease of property for a cell tower located at LCWTP. This is based on an agreement
with American Tower (originally Verizon Wireless) first established on January 31, 2013.
The agreement expires in 2033. According to the agreement, the annual rate increases every
five years.
85. Other Miscellaneous Revenues (includes bond proceeds): Licensing program fees (if
any), vehicle sales (if any), grants (if any), bond proceeds, other miscellaneous revenues.
86. Total Miscellaneous Revenues: Sum of miscellaneous revenues.
87. Operations and Maintenance Reserve Account Interest Income: Calculated at 1.60% per
annum. The 12-month average for the Public Treasurers Investment Pool is 1.60%.
88. Total Revenues: Sum of revenue columns 55, 71, 80, 86, & 87.
89. Net Cash Flow: Total revenues, column 88, minus total expenses, column 52.
90. Total Available Reserves: FY 2024 amount is determined by current balances in the bank
and the bond fund accounts as of December 31, 2022, projected revenues expected to be
received by year end, less outstanding checks, retention (if any), projected expenses to occur
by year end, and remaining capital expenditures. Other years are a summation of the prior
year plus column 88 for the current year.
91. Required Operations and Maintenance Reserve Account Balance: The Master Bond
Resolution requires (see section 5.05(f)) an O&M reserve fund balance of 25% of the O&M
costs of the current annual budget (25% of column 14). This reserve is not shown in years
after the bonds are paid.
92. Required Renewal and Replacement Reserve Fund: The Master Bond Resolution
requires (see definition in section 1.01) a capital projects reserve of $650,000. This reserve is
not shown in years after the bonds are paid.
93. Jordan Aqueduct Reserve Account: Established via agreement (interest bearing).
94. JVWTP Operations and Maintenance Reserve: Established via agreement (not interest
bearing).
95. 150th South Pipeline Agreement: Established via agreement (interest bearing).
96. Total Restricted Reserves: Sum of columns 91-95.
97. Total Reserves Available to be Assigned: Total available reserves less total restricted
reserves.
98. Capital Projects Reserve: Goal of 15-25% (formula uses 20%) of the sum of the next five
years in capital expenditures. Only non-capacity capital improvements and Jordan Aqueduct
System capital improvements are included in this column. CUP water supply acquisition
costs, Provo River Project costs, and capacity capital improvement costs are not included in
this calculation.
Budget 062
99. Self Insurance/Contingency Reserve: Goal of $2,000,000 as established by District policy.
100. Interest Rate Stabilization Reserve: Established by policy and in order to mitigate
interest rate risk, this reserve has been accumulated via lower than forecasted variable rate
debt. This reserve will remain static due to the refunding of bonds that closed on March 1,
2012. This reserve is not shown in years after the bonds are paid.
101. Aquifer Storage and Recovery (ASR) Reserve: Established by policy in order to set
aside funds for implementation of an ASR project. Any revenues from sales of surplus water
combined with costs savings resulting from operations of the Jordan Narrows turbine will be
directed to this reserve fund. Funds were drawn down to pay for ASR pilot testing and phase
1.
102. Total Assigned Reserves: Sum of columns 98-101.
103. Remaining Unassigned Reserves: Remaining reserves.
Budget 063
Budget Schedule
Budget 064
Fiscal Year 2024 Budget Schedule
Last Updated: March 28, 2023
• February 6 – Engineering Committee Meeting (10:00 AM; preliminary discussion
related to capital budget).
• February 9 – Department budget presentations at staff meeting.
• February 16 – Deadline for draft budget numbers to be submitted by managers to GM
• February 23 – Budget discussion with managers at staff meeting.
• March 7 – Management Advisory Committee Meeting (8:30 AM; preliminary
discussion related to staffing and compensation schedule).
• March 27 – Work session – budget discussion
• April 3 – Finance Committee Meeting - (P&P 3-629(1) “On or before the first
regularly scheduled meeting of the Board in May, the GM shall consult with the
Finance Committee and prepare a tentative operating and capital budget for the
ensuing fiscal year.”
• April 17 – Board Meeting – consider adoption of the tentative budget.
• April 25 – Engineering Committee Meeting (10:00 AM; discussion related to capital
budget).
• May 1 – Deadline to mail notice of the public hearing to those within the district who
are being charged a fee, if the fee is proposed to be increased (see Utah Code Ann.
17B-1-643(2)(d)(i)).
• TBD– Presentation to the Salt Lake City Council (time TBD; Salt Lake City Hall).
• TBD– Approval of the certified tax rate increase by Salt Lake City Council (time
TBD; Salt Lake City Hall).
• TBD- Presentation to the Sandy City Council (time TBD; Sandy City Hall).
• TBD- Approval of the certified tax rate increase to the Sandy City Council (time
TBD; Sandy City Hall).
• May 15 – Board Meeting – Tentative budget public hearing (6:00 P.M.).
• May 23 – Management Advisory and Finance Committee Meetings.
• June 12 – Board Meeting –adoption of the budget (subject to certified tax rate public
hearing if proposed tax rate increase is approved by city councils).
• June 12 – Utah Code 59-2-912 “The governing body of each taxing entity shall before
June 22 of each year adopt a proposed tax rate.” Deadline for adopting the budget
(Utah Code 59-2-924 8a and 8b) “On or before June 30, a taxing entity shall annually
adopt a tentative budget. If a taxing entity intends to exceed the certified tax rate, the
taxing entity shall notify the county auditor of: (i) the taxing entity's intent to exceed
the certified tax rate; and (ii) the amount by which the taxing entity proposes to exceed
the certified tax rate.”
• July 24 – First publication of notice of the public hearing
• July 31 – Deadline for publishing second notice of public hearing
• August 7 – Certified rate tax hearing. Adopt final tax rate and FY23 budget.
• September 6 – Deadline for submitting copy of the final budget to the State Auditor
(required within 30 days of budget adoption- P&P 3-629(7))
Budget 065
Staffing and Compensation Schedule
Budget 066
Last update: 03/23/2023
Staffing and Compensation Schedule I. Background
How the District’s budget differs from the Member Cities
• The District checks the various sources to ensure the District is in line with the
market, e.g., Consumer Price Index, World at Work, Tech Net, and other related
sources.
• When setting the increases, a comparison is made with the two member cities and
other local water districts.
• SLC being self-insured can add medical benefits the District cannot competitively
match due to the difference in the number of employees; therefore, the District
focuses on other fair benefits.
• Typically, the District believes in giving merit increases and tying COLA to merit.
However, due to the current economic state and rate of inflation, the District is
recommending a COLA and a merit increase for FY 2024. A 1% merit increase
represents about $67,000 (based on FY2024 budget for salaries and wages, less
payroll taxes).
• Ultimately, we are governed as separate entities and each Board or City Council must
do what they think is in the best interest of their employees. II. Staffing Levels
The chart below reflects the current and projected staffing levels.
Department Cost
Center FY2023 FY2024
Administrative 10 7 8
Operations 22 14 13
Maintenance 23 24 24
Information Technology 24 8 9
Engineering 25 8 7
Instrumentation & Electrical 26 8 9
Lab 50 6 6
Totals 75 76
The projected staffing levels in FY24 include a net increase of one full-time equivalent (FTE). The
increased staffing levels will address succession planning and workload needs at the District.
The Operations department requires 12 FTEs; however, Operations continues to budget for an
extra Water System Operator to address one anticipated retirement in FY24. In addition, one FTE
is being added to the Information Technology department as a permanent increase to manage
workload and provide development opportunities. This FTE would be added midway through the
fiscal year. One FTE is being added to the Instrumentation & Electrical Department as a permanent
increase to manage workload. The increase in the Administrative department and the decrease in
the Engineering department is due to the reclassification of an employee (Assistant General
Manager/Chief Engineer).
Attachment A represents the proposed staffing levels.
Budget 067
Attachment A
IT Analyst
Assistant General Manager
Laboratory
Manager
Lab Technician I
(2 FTE)
Asst. Maintenance
Manager
IT Manager
Assistant General Manager/
Chief Engineer
Engineer II
Full Time Positions 73
Temporary/Seasonal 3
Total FTE 76
IT Infrastructure
Manager
I&E Supervisor
Control Systems
Tech (3 FTE)
Board of Trustees
General Manager
(Treasurer)
Metropolitan Water District of Salt Lake & Sandy
Organizational Chart Fiscal Year 2024
Operations
Manager
Legal Counsel
Facilities
Supervisor
Laboratory
Supervisor
Grounds Worker
(Temp/Seasonal)
Asst. Operations
Manager
Office Coordinator
Engineering
Manager
HR Program
Manager/Clerk
Journeyman
Electrician
Water System
Operator
(8 FTE)
(1 Temporary = 1
FTE)
Chemist
(2 FTE)
Accountant
Intern (Temporary)
Facilities Tech
(6 FTE)
Warehouse
Administrator
(2 FTE)
Maintenance Tech
II (3 FTE)
Maintenance Lead
(2 FTE)
Maintenance Tech
III (5 FTE)
Engineer I
Aqueduct Inspector
(3 FTE)
I&E Systems
Integration Specialist SCADA
Administrator
Environmental Services
Specialist
Systems
Administrator
(3 FTE)
SCADA Analyst
Senior Systems
Administrator
Maintenance Manager
Senior Engineer
Fleet Administrator
Lab Technician II
(0 FTE) Warehouse
Administrator
Control Systems
Tech Lead
Water System
Operator Lead
(2 FTE)
Senior Water
System Operator
(0 FTE)
Facilities Tech
Lead
IT Supervisor
Master Electrician
(0 FTE)
Budget 068
Last update: 03/23/2023
Staffing and Compensation Schedule III. Benefits
The District is interested in providing benefits that will help the District attract and retain skilled
and experienced employees. The District is interested in maintaining reasonable stability and
predictability for its employees and their families. The District is also interested in providing
benefits reasonably comparable to those offered by other local entities similar to the District. The
District provides employees with the following benefits package:
· Medical and Dental Insurance
· Vision Insurance
· Health Savings Accounts
· Flex Spending Accounts
· Employee Wellness Program
· Life Insurance, Accidental Death and Dismemberment, Long Term Disability, and
Long Term Care
· EAP (Employee Assistance Program)
· Retirement Program (Utah Retirement Systems or URS)
· 401(k), 457, and Roth and Traditional IRA Retirement Savings Plans and Matching
Program (via URS)
· Paid Sick, Vacation, and Personal Leave
· 13 Paid Holidays
· Educational Assistance
The District is a member of the Utah Retirement Systems. The URS sets the District’s contribution
rate. The Tier I contribution rate for FY24 is 17.97%, no change from the prior year. The Tier II
contribution rate is 16.19%, no change from the prior year. Sixty percent of the employees are Tier
I employees. The Tier II group is gradually increasing with new hires at the District.
The District encourages employee wellness through a Participatory Wellness Program (PWP). The
PWP provides an incentive for participation and is available without regard to an employee's health
status. Employees who participate would receive $500 in their HSA in 2024. The PWP incentive
requires an employee to complete at least four of the nine available options before November 17,
2023. These options include the following: (1) flu shot, (2) preventative exam with personal
physician, (3) biometric screening, (4) COVID vaccination/booster, (5) wellness challenge
participation, (6) attending a lunch and learn, (7) Dexa Body scan, (8) age/gender/risk-appropriate
screening with a personal physician, and (9) participation in wellness challenge through fitness
app provided by the District.
Budget 069
Last update: 03/23/2023
Staffing and Compensation Schedule IV. Job Grades & Salary Ranges
The District has a traditional pay structure with job grades and salary ranges for all District
positions. The District will implement a 3.0% salary structure adjustment based on the information
compiled from the 2022 Planning Packet Survey: 2023 Pay Increase Projections by Employers
Council and the World at Work 49th Annual Salary Budget Survey. The salary adjustment will be
for the non-management and IT pay structures. The salary adjustment shifts the salary range’s
midpoint and helps to maintain the District’s position to provide competitive compensation. The
salary structure adjustment does not increase the budget, nor does it offer an automatic 3% raise
for any employee.
Annually an evaluation of market wage data is conducted to determine if the salary ranges for
District positions are competitive with the market and internal equity. This analysis resulted in
four positions being reassigned to a different pay grade. The following positions were reassigned
to a higher pay grade: seasonal Grounds Worker, Lab Technician II, and Maintenance Lead. The
reassignment of these positions does not increase the budget.
The District is proposing six new position titles: Facilities Technician Lead, Office Coordinator,
Senior Water System Operator, Water System Operator Lead, Master Electrician, Engineering
Manager. These new positions do not represent an increase in FTEs but a change in position
descriptions.
The District is introducing a Management/Executive pay structure for supervisors, assistant
managers, managers, assistant general managers, and the general manager. The separate pay
structure allows the District to be more reflective of the market data.
V.Skill-Based Pay
The District continues to support a skill-based pay program to allow workforce flexibility and
cross-training. This program has been successful by encouraging employees to learn additional
skills in order to increase their productivity and efficiency. Skill-based pay is given based upon
increased knowledge, skill, and ability. Employees who participate in the skill-based pay program
receive their hourly wage and an additional skill-based pay for those successfully obtained skills.
As part of the FY24 budget, the District includes $13,520.00 in salary and wages to support the
program. The program will be expanded to include compensation for employees performing
instrumentation calibration. Implementing this skill will be beneficial to the District because it will
allow the opportunity to expand the program to the Lab department, which has previously not had
the opportunity to participate in skill-based pay.
Budget 070
Last Updated: 3/21/2023
VI. Wage and Salary Statistics
Salary Review Comparison
Entity FY22 FY23 FY24 Merit COLA Comment
Metropolitan Water District of Salt Lake & Sandy 3.00%8.50%7.00%4.50%2.50% Proposing
Salt Lake City Public Utilities 2.00%4.50%4.50%0%*4.50% Proposing
Sandy City 4.00%9.00%11.70%3.00%8.70% Proposing
Provo River Water Users Association 2.50%8.60%4.00%4.00%0.00% Approved
Jordan Valley Water Conservancy District 3.50%7.00%6.50%6.50%0.00% Preliminary
Weber Basin Water Conservancy District 4.00%5.00%8.00%3.00%5.00% Proposing
Central Utah Water Conservancy District 3.00%8.50%6-7%6-7%0.00% Preliminary
Average 3.14%7.30%6.95%
*SLC has provisions for applicable merit increases for eligible employees.
Reference Information
Consumer Price Index
Source (Jan. 1 - Dec. 31, 2022)
U.S. City Average (U.S. Bureau of Labor Statistics)6.5%
West Region (AK, AZ, CA, CO, HI, ID, MT, NV, NM,
OR, UT, WA, WY)6.2%
Employment Cost Index for wages and salaries
U. S. Bureau of Labor Statistics (Jan. 1 - Dec. 31, 2022)
State and local government 4.7%
Mountain-Plains 5.4%
2023 Projected Salary Budget Increases
World at Work 49th Annual Salary Budget Survey 4.1%
Employers Council 2022 Planning Packet Survey 4.3%
2023 Salary Structure Adjustments
World at Work 49th Annual Salary Budget Survey 2.7%
Employers Council 2022 Planning Packet Survey 3.9%
The projected Salary Budget Increases are a combination
of General, COLA, Merit, and similar increases.
Staffing and Compensation Schedule
The Consumer Price Index measures change in prices
paid by urban consumer for a representative basket of
goods and services.
The FY24 budgeted increase details:
The Employment Cost Index is a measure in the change in
the cost of labor.
Historically,the District utilizes a merit pay system or pay-for-performance system to determine wage and salary
increases. The District compares wage and salary increases with the member cities and other water districts. The
District also evaluates the Consumer Price Index and Employment Cost Index from the U.S. Bureau of Labor Statistics.
Wage and salary information are evaluated from the 49th Annual Salary Budget Survey 2022-2023 by World at Work
and Employers Council 2022 Planning Packet Survey.
Based on these data points, the District is proposing a Cost-of-Living Adjustment (COLA) and merit increase for FY
2024. All employees would receive a 2.5% COLA on July 1 and up to a 4.5% merit increase in January 2024 for a total
increase of 7%. The following table details the comparisons with member cities and other water districts:
Budget 071
Last update: 03/23/2023
Staffing and Compensation Schedule VII. Conclusion
Based on the proposed additional positions, COLA/merit increases of 7% to wages, retirement
increases, payroll tax increases, and projected increases to medical, dental and other benefits, the
total District budget increases by $820,135. The various components are broken down as follows:
$574,952 Salary & Wages
($3,327) Overtime Premium
$94,391 Medical Insurance Premiums (Health, Dental, Vision, Health Savings Account)
$5,027 Other Insurance (Life, AD&D, LTD, Long Term Care)
$45,016 Payroll Taxes
$104,076 Utah Retirement
Based on the above, the net increase in personnel costs to the District is estimated to be 2.2% of
the overall O&M Budget (excluding interest costs).
Budget 072
Resolution for Budget Approval
Budget 073
Budget Acronyms
Budget 074
Budget Acronyms
Last update: March 29, 2023
ABPA: American Backflow Prevention Association
AD&D: Accidental Death and Dismemberment
AED: Automated electronic defibrillator
AF: Acre Feet
ASR: Aquifer Storage and Recovery
APWA: American Public Works Association
ARPA: American Rescue Plan Act
AWWA: American Water Works Association
BCWTP: Big Cottonwood Water Treatment Plant
BRIC: Building Resilient Infrastructure and Communities
CAD: Computer aided drafting
CCTV: Closed circuit television
CDL: Commercial Driver’s License
CFS: Cubic feet per second
COLA: Cost of Living Adjustment
CIO: Chief Information Officer
CUP: Central Utah Project
CUWCD: Central Utah Water Conservancy District
DACRWTP: Don A. Christiansen Regional Water
Treatment Plant
DIDS: Direct Inbound Dialing
DPD: N-diethyl-p-phenylenediamine
DOT: Department of Transportation
EAM: Enterprise Asset Management
ECM: Enterprise Content Management
FCC: Federal Communications Commission
FAA: Federal Aviation Administration
FAS: Fixed Asset Software
FIS: Financial Information System
Floc: Flocculation
FTE: Full-time Equivalent
FY: Fiscal Year
GC: Gas chromatograph
GFOA: Government Finance Officers Association
GIS: Geographic Information System
GM: General Manager
GPS: Global Positioning System
GRAMA: Government Records and Access Management
HAA: Halo acidic acids
HSA: Health Savings Account
HMI: Human Machine Interface
HVAC: Heating, ventilation, and air conditioning
I&E: Instrumentation & Electrical
INL: Idaho National Laboratory
ISAC: Information Sharing and Analysis Center
ISP: Internet Service Provider
IT: Information Technology
JA: Jordan Aqueduct
JNPS: Jordan Narrows Pump Station
JSSD: Jordanelle Special Service District
JVWCD: Jordan Valley Water Conservancy District
JVWTP: Jordan Valley Water Treatment Plant
LCC: Little Cottonwood Conduit
LCWTP: Little Cottonwood Water Treatment Plant
LED: Light-emitting diode
LIMS: Laboratory information management system
LOX: Liquid oxygen
LTC: Long term care
LTD: Long term disability
M&I: Municipal and industrial
MAR: Managed Aquifer Recharge
MIB: methylisoborneol
MG: Million gallons
MWDSLS: Metropolitan Water District of Salt Lake
& Sandy
NFPA: National Fire Protection Association
ODT: Ontario Drain Tunnel
O&M: Operations and Maintenance
OM&R: Operation, Maintenance & Replacement
OSHA: Occupational Safety & Health Administration
PC: Personal Computer
PC/S: Process Control/SCADA
PFA: Polyfluoroalkyl substances
pH: Potential of hydrogen
PLC: Programmable Logic Controller
POMA: Point of the Mountain Aqueduct
POMFWP: Point of the Mountain Finished Water Pump
POMWTP: Point of the Mountain Water Treatment Plant
PPE: Personal Protection Equipment
PRA: Provo River Aqueduct
PRI: Primary Rate Interface
PRWUA: Provo River Water Users Association
PVC: Poly vinyl chloride
PWP: Participatory wellness program
ROW: Right-of-way
RTU: Remote Terminal Unit
RVSS: Reduced voltage soft starter
SAN: Storage Area Network
SCADA: Supervisory Control and Data Acquisition
SCS: Security Control System
Sed: Sedimentation
SLCPU: Salt Lake City Public Utilities
SLA: Salt Lake Aqueduct
SLA/FW: Salt Lake Aqueduct finished water
SLAR-CC: Salt Lake Aqueduct Replacement – Cottonwood
Conduit
SUV: Sport utility vehicle
TBD: To be determined
THM: Trihalomethanes
TOC: Total organic carbon
Budget 075
T-Chlor: Sodium Hypochlorite
T1 PRI: Phone system internet connection
TR: Jordan Aqueduct terminal reservoir
UCAN: Utah Communication Agency Network
ULS: Utah Lake System
UPS: Uninterruptible Power Supply
URS: Utah Retirement System
UV: Ultraviolet
UVWTP: Utah Valley Water Treatment Plant
UWUA: Utah Water Users Association
VoIP: Voice-over Internet Protocol
VFD: Variable Frequency Drive
WIFIA: Water Infrastructure Finance and Innovation Act
WQTC: Water Quality Technology Conference
Budget 076
Salt Lake County Auditors/State Tax Commission Forms
Budget 077
2
3
2
7
9
COUNCIL STAFF REPORT
CITY COUNCIL of SALT LAKE CITY
tinyurl.com/SLCFY23
TO:City Council Members
FROM: Ben Luedtke, Sylvia Richards
Budget and Policy Analysts
DATE: May 2, 2023
RE: Budget Amendment Number Six FY2023
Budget Amendment Number Six includes twenty-nine proposed amendments, $50,160,062 of expenditures of
which $11.7 million is from General Fund Balance, requesting changes to seven funds. If all the items are adopted
as proposed, then Fund Balance would be 23.7% which is $45,722,779 above the 13% minimum target.
The Administration is requesting a straw poll for items A-2 Advantage Services’ mobile clean team and A-11
additional funding for environmental assessments and remediation which is mostly to facilitate the tiny home
village at the former Redwood Road landfill site.
This is expected to be the last General Fund budget amendment of the current fiscal year.
CITY COUNCIL OF SALT LAKE CITY
451 SOUTH STATE STREET, ROOM 304
P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476
COUNCIL.SLCGOV.COM
TEL 801-535-7600 FAX 801-535-7651
Project Timeline:
Set Date: April 18, 2023
1st Briefing: May 2, 2023
Public Hearing: May 2, 2023
2nd Briefing: If needed, TBD, 2023
Potential Action: May 19 or June 6, 2023
Council Request: Tracking New Ongoing General Fund Costs Approved in Midyear Budget Amendments
Council staff has provided the following list of new ongoing costs to the General Fund. Many of these are new FTE’s approved during this fiscal
year’s budget amendments, noting that each new FTE increases the City’s annual budget if positions are added to the staffing document.
Budget
Amendment Item
Estimated Cost
Increase to Next
Annual Budget
New City FTEs Notes
#1
Homeless Shelter Cities
Mitigation Grant Award
$2.2 Million
13 new FTEs which
includes:
12 police officers and
one business and
community liaison
Admin expects to apply for grant funding annually
to cover these costs. General Fund would not need
to cover costs if the State grant is awarded to the
City to fully cover the costs.
#3
Utah League of Cities
and Town Membership
Cost Increase
$38,000
N/A Total annual membership cost is $221,563
Two Contract
Development
Specialists in Finance
$207,800
Two new FTEs
Senior Project Manager
in Public Services $168,000
One new FTE The $85 Million Parks Bond could pay for this FTE
in future fiscal years. The General Fund fronted the
cost in FY2023. The position sunsets with the bond
funding.
Two Planners in Public
Lands $241,440
Two new FTEs The $85 Million Parks Bond could pay for these
FTEs in future fiscal years. The General Fund
fronted the cost in FY2023. The positions sunset
with the bond funding.
Volunteers of America
(VOA) Salt Lake City
Specific Outreach Team $274,000
N/A Separate from VOA’s countywide outreach team.
Four existing VOA workers:
Two case managers and two coordinators
#4
Police Substation on
North Temple and
Downtown Central
Precinct Leases and
Utilities
$130,000
N/A
One-time Retention
Bonuses and Ongoing
Hiring Bonuses for
Police Officers
$1,201,976 N/A
#5
Know Your Neighbor
Grant
$61,000 One new Part-time
Employee
Budget
Amendment Item
Estimated Cost
Increase to Next
Annual Budget
New City FTEs Notes
TOTALS $4,522,216 19
3 of the new FTEs sunset with the GO Bond funding,
and some are covered with potential future state
grant awards
Disclaimer: For the chart above, staff didn’t include a couple of Youth & Family and Police Department multi-year grants since they would not
create cost increases for the next annual budget.
Page | 3
BACKGROUND/DISCUSSION:
Revenue for FY 2022-23 Budget Adjustments
The following chart shows a current projection of General Fund Revenue for fiscal year 2023.
According to the Administration, the current projections for fiscal year 2023 projections continue to be
positive. Sales tax is currently projected to exceed budget by $5.7 million while the sales tax associated with
Funding Our Future is projected to exceed budget by $6.8 million.
Building permits have slowed and are currently showing a decrease, those losses are slightly offset by small
gains in airport parking tax and innkeepers tax, but still show a lost compared to the budget of $1.7 million.
Due to the rise interest rates, interest income shows a large positive variance to budget of $5.4 million.
Charges and services and miscellaneous revenue are both trending above budget. In total current revenue
projections are above amended budget by $17.1 million.
Fund Balance
The Administration’s chart below shows the current General Fund Balance figures.
Fund balance has been updated to include proposed changes for BA#6.
FY2022 Projection FY2023 Budget
FOF GF Only TOTAL FOF GF Only TOTAL
Beginning Fund Balance 12,114,190 104,171,780 116,285,970 18,395,660 141,728,022 160,123,682
(2,100,608)(20,736,262)Budgeted Change in Fund Balance (2,879,483)(15,335,334)(18,214,817)(22,836,870)
Prior Year Encumbrances (1,879,654)(10,259,789)(12,139,443)(3,162,300)(17,260,909)(20,423,209)
Estimated Beginning Fund Balance 7,355,053 78,576,657 85,931,710 13,132,752 103,730,851 116,863,603
Beginning Fund Balance Percent 14.28%22.33%21.30%29.60%27.04%27.30%
Year End CAFR Adjustments
Revenue Changes ------
Expense Changes (Prepaids, Receivable, Etc.)-(7,535,897)(7,535,897)(8,556,220)(8,556,220)
Fund Balance w/ CAFR Changes 7,355,053 71,040,760 78,395,813 13,132,752 95,174,631 108,307,383
Final Fund Balance Percent 14.28%20.19%19.43%29.60%24.81%25.30%
Budget Amendment Use of Fund Balance
BA#1 Revenue Adjustment ------
BA#1 Expense Adjustment -5,138,235 5,138,235 -(475,000)(475,000)
BA#2 Revenue Adjustment -490,847 490,847 ---
BA#2 Expense Adjustment -(986,298)(986,298)---
BA#3 Revenue Adjustment ----6,000,000 6,000,000
BA#3 Expense Adjustment (1,000,000)(1,000,000)(2,000,000)-(6,538,000)(6,538,000)
BA#4 Revenue Adjustment -1,508,044 1,508,044 -194,600 194,600
BA#4 Expense Adjustment -(4,242,779)(4,242,779)-(7,584,328)(7,584,328)
BA#5 Revenue Adjustment -400,000 400,000 ---
BA#5 Expense Adjustment -(400,000)(400,000)-(5,940,349)(5,940,349)
BA#6 Revenue Adjustment ----19,120,198 19,120,198
BA#6 Expense Adjustment -(1,553,938)(1,553,938)-(11,719,731)(11,719,731)
BA#7 Revenue Adjustment -(794,641)(794,641)---
BA#7 Expense Adjustment (1,200,000)(10,843,298)(12,043,298)---
Change in Revenue 11,139,999 23,083,587 34,223,586 ---
Change in Expense 2,100,608 12,134,899 14,235,507 --
Fund Balance Budgeted Increase --------
Adjusted Fund Balance 18,395,660 93,975,418 112,371,078 13,132,752 88,232,021 101,364,773
Adjusted Fund Balance Percent 35.72%26.70%27.86%29.60%23.00%23.68%
Proposed/Adopted Revenue 51,499,136 351,910,770 403,409,906 44,364,490 383,650,846 428,015,336
Based on those projections adjusted fund balance is projected to be at 23.68%.
The Administration is requesting a budget amendment totaling $28,058,542.11 of revenue and
expense of $50,160,062. The amendment proposes changes in seven funds, with no increases in
FTEs. The amendment also includes the use of $11.7 million from the General Fund fund
balance. The proposal includes twenty-nine initiatives for Council review.
A summary spreadsheet outlining proposed budget changes is attached. The Administration
requests this document be modified based on the decisions of the Council.
The budget opening is separated in eight different categories:
A. New Budget Items
B. Grants for Existing Staff Resources
C. Grants for New Staff Resources
D. Housekeeping Items
E. Grants Requiring No New Staff Resources
F. Donations
G. Council Consent Agenda Grant Awards
I. Council Added Items
PUBLIC PROCESS: Public Hearing
Impact Fees Update
The Administration’s transmittal does not provide an updated summary of impact fee tracking. The information is
current as of 3/24/23. As a result, the City is on-track with impact fee budgeting to have no refunds during all of
FY2024 and FY2025. Note that item A-12 in this budget amendment is requesting $27,000 to update the fire, parks, and
police sections of the City’s impact fee plan. The transportation section was updated in October 2020.
Type Unallocated Cash
“Available to Spend”Next Refund Trigger Date Amount of Expiring
Impact Fees
Fire $1,725,882 More than a year away -
Parks $15,534,954 More than a year away -
Police $1,061,156 More than a year away -
Transportation $5,248,024 More than a year away -
Note: Encumbrances are an administrative function when impact fees are held under a contract
Section A: New Items
(Note: to expedite the processing of this staff report, staff has included the Administration’s descriptions from the
transmittal for some of these items)
A-1: Additional Funding for the Cultural Core ($291,000 from Salt Lake City’s Cultural Core Surplus
Fund)
The Administration is proposing to use all the Cultural Core Surplus Fund spread over six years in addition to the
$250,000 the City currently contributes annually. The current balance of the Surplus Fund is $291,000. An additional
$50,000 annually would be provided for five years. If approved, then the total annual contribution from the City would
be $300,000 for five years. In the sixth year $41,000 would be provided. In the seventh year the City’s total annual
contribution would revert to $250,000.
Salt Lake County also contributes $250,000 annually to the Cultural Core. The County Council has approved an
additional $50,000 annual contribution for six years from their Cultural Core Surplus Fund. The current balance of the
County’s Surplus Fund is $309,000. In the seventh year no additional funding would be provided; the County’s total
annual contribution would revert to $250,000.
Appropriations not spent in prior years lapsed to the Cultural Core Surplus Funds. The City and County each have
separate Cultural Core Surplus Funds. The additional annual funding from the City and County are being requested to
address cost increases for continuing to provide existing levels of service. The $500,000 combined annual contribution
from the City and County has not increased since the Cultural Core program began six years ago. If this item is
approved, then as shown in the table below the total combined annual funding for the Cultural Core would be
$600,000 for five years, then $591,000 in the sixth year, and revert to $500,000 in the seventh year. The Cultural Core
Action Plan Implementation Contract would be amended to reflect these additional funds.
Policy Question:
➢Retain Some Funding for Unexpected Costs – The Council may wish to ask the Administration whether the
Cultural Core Surplus Fund should retain a positive balance to address unexpected expenses like a rainy day fund.
A-2: Additional One-time Funding for Advantage Services’ Mobile Clean Team ($300,000 from
Rescope of CAN Personnel Vacancy Savings)
Note that items A-2, A-3, D-1, and E-3 are all related to increasing funding for the contract between Advantage
Services and the City through the end of FY2023. The write-up below addresses all three items.
The Administration is requesting a total one-time increase of $533,418 to continue existing mobile clean team
functions provided by Advantage Services through a contract with the City. Without additional funding, the services
would be paused until funding becomes available next fiscal year. The funding request is split into three parts in this
budget amendment as shown below. The three funding requests are all from one-time funds. The FY2024 annual
budget would need new ongoing funding as an increase to the program’s base budget to continue providing existing
levels of service.
- $300,000 from rescoping projected personnel vacancy savings in CAN (item A-2)
o Note that vacancy savings are one-time funds because the positions may be filled next fiscal year
- $160,000 from rescoping part of the State Mitigation Grant (item E-3)
o Note that this proposed $160,000 rescoping comes from three subawards for staffing listed below. All of
the unspent funds must be returned to the State if not used by the end of the fiscal year. The $160,000 was
unused earlier in the fiscal year due to vacancies.
▪$60,000 from Housing Stability Division
▪$50,000 from Salt Lake City Police Department
▪$50,000 from Volunteers of America
- $73,418 from rescoping unspent funds from Operation Rio Grande (item A-3)
o Note that the Council approved a rescope of these Operation Rio Grande funds in December as part of
Budget Amendment #4. The Road Home used $104,429 for the St. Vincent de Paul overflow program. This
left the $73,418 unable to be used as the program ended with warmer temperatures.
The base budget for Advantage Services is $802,000 in the Community & Neighborhoods Department (CAN) which all
comes from the General Fund. The base budget has remained unchanged for the past two fiscal years. Over the same
time, the mobile clean team has expanded from a focus in the Rio Grande neighborhood to new areas in the City.
Services include cleanup of abandoned camp materials, voluntary trash removal from active encampments, and
biowaste removal. The mobile clean team works with the City’s Rapid Intervention Team. Services are provided on
public property except for biowaste removal which is available on private property. In limited circumstances trash
removal is also provided on private property.
A one-time award of $760,110 in FY2021 was used to pay for service level expansion over the past two fiscal years.
Those funds have been expended. The mobile clean team continued to provide an expanded level of service after the
existing base budget and one-time funding were spent. This resulted in costs being incurred which exceeded the
available budget.
The Council has approved $278,943 of CDBG Public Services funding to Advantage Services from FY2018 to FY2023
for the supportive employment program. They did not apply for CDBG funding in FY2024.
The Administration has requested a straw poll on these items.
Policy Questions:
➢Preventing Expenses Being Incurred Beyond Budget in the Future – The Council may wish to ask the
Administration what has or could change to prevent a similar situation from happening when costs are incurred
that exceed the approved budget.
➢Metrics – Would the Council like additional information about metrics for the mobile clean team? The
Administration reports 1,195 requests have been completed by the mobile clean team this fiscal year and average
case closure times were four days in March.
A-3: Repurpose Operation Rio Grande Funds for New Homeless Services ($73,418 from Recaptured
Operations Rio Grande Funds)
Note that items A-2, A-3, D-1, and E-3 are all related to increasing funding for the contract between Advantage
Services and the City through the end of FY2023. See the A-2 write-up for more.
This request is to reappropriate $73,418 of unspent Operation Rio Grande funds. The funds were unused during the
original operation. Then the Council approved a $177,874 rescope request for St. Vincent de Paul winter overflow
program. $104,429 was used. This second rescope of the remaining $73,418 is for mobile clean team services.
A-4: Liberty Park Seven Canyons Fountain Rescope Change ($823,548 from CIP)
In FY2020, the Council approved $857,968 in CIP to redevelop the Seven Canyons Fountain located in Liberty Park.
The fountain was built in 1993 and closed in 2017 in response to health and safety code issues identified by the Salt
Lake County Health Department. The CIP project was meant to address the code issues and reopen the fountain. The
Administration is requesting to rescope the remaining funding to modify the fountain into a permanent dry artwork.
The City Arts Council would be involved in the conceptual design selection. The dry artwork is expected to include
specialty concrete and finishes for the seven symbolic creeks flowing into the Jordan River, landscaping and lighting
improvements, new signage, and handrails. The Public Lands Department consulted with some of the original artists
about the conversion to a dry artwork.
After an initial feasibility study, the Public Lands Department determined that re-opening the fountain as an
interactive water feature would require significantly greater capital costs and projected water use. Two alternate
options were explored: adapting the fountain into a dry artwork or decommissioning it.
Public feedback including a community survey in 2021 showed support for creating a dry artwork instead of the
decommissioning option. The responses indicated that conserving water, preserving art, and staying within the existing
budget were key factors to consider between the two presented options.
A second feasibility study was conducted by the Public Lands Department and Engineering to evaluate options to add
some water back to the fountain at lower volumes. The options had a total cost estimate of $2.1 million to $4 million
plus ongoing water and maintenance costs.
A-5: Open Space Property Acquisition (City Parks) AND A-6: Open Space Property Acquisition (Trails)
Public Lands is requesting a budget amendment in the amount of $450,000 utilizing Parks Impact Fees to acquire an
available parcel of property. This funding request includes all fees associated with acquisition. Any remaining funding
from the acquisition would be utilized for immediate remediation needs and addressing potential safety concerns.
A-6: Open Space Property Acquisition (Trails) ($300,000 from Impact Fees)
Public Lands is requesting a budget amendment for $300,000 utilizing Parks Impact Fees to provide a 24% matching
contribution to $1,250,000 committed from the State of Utah Department of Outdoor Recreation and in partnership with
Utah Open Lands. The combined funding would be used to acquire several acres of open space property located in Salt Lake
City to facilitate construction of a trailhead. This funding request includes all fees associated with acquisition as well concept
design for the proposed trailhead. Utah Open Land will also be conducting a fundraising campaign to cover a portion of the
acquisition. Any remaining funding would be utilized for immediate trailhead design and construction needs and addressing
potential safety concerns.
A-7: Recapture One-time Emergency Solutions Grant CARES Act Funds ($209,552 Rescope from
$200,000 of City Administration and $9,552 from VOA’s Homeless Outreach Program)
The Administration is requesting to recapture unused funds previously allocated for costs to the City for administering
the program and $9,552 from VOA’s Homeless Outreach Program. The deadline to spend the funds was extended by
one year to September 30, 2023. The funds are proposed to be allocated to Utah Community Action’s Homeless
Prevention Program. It provides emergency rental assistance, funding for case managers, and support to individuals
and households. The Council originally awarded the program $1,212,940. Utah Community Action indicates a need for
emergency rental assistance still exists for some City residents and they expect to be able to fully spend the funds by the
deadline.
Other community service providers that received some of the Emergency Solutions Grant CARES Act funding are on
track to use their remaining awards (e.g., The Road Home rapid rehousing), would not be able to use the funds by the
deadline (e.g., Utah Community Action rapid rehousing, or the eligible pandemic-related program has ended (e.g.,
winter overflow shelter). One organization, Soap to Hope, providing street outreach has fully spent their award and has
not indicated whether additional funding could be used by the deadline. Recapturing funding and awarding it to
another organization that received funding does not require the City to go through the substantial amendment process
to change the annual action plan.
As part of the CARES Act, Salt Lake City was awarded $7,138,203 in U.S. Housing and Urban Development or HUD
Department grants for projects and programs directly related to responding to the COVID-19 pandemic. The CARES
Act HUD grants are subject to separate regulations than the regular annual awards. On February 16, 2021, the Council
approved the funding awards.
Policy Question:
➢Soap to Hope Street Outreach Possibly Use Additional Funding – The Council may wish to ask the Administration
to check whether Soap to Hope’s street outreach program could use some of the recaptured funding by the
spending deadline. The program was originally awarded $214,654 which has all been spent.
A-8: Steiner Aquatics Center Roof Replacement ($1.38 million from General Fund Balance)
The Steiner Aquatics Center roof was installed in 2000. A recent inspection determined that the roof needs to be
replaced. This request is for half of the total project cost because the City and Salt Lake County have an agreement to
split the cost of capital repairs and replacements of the building’s systems. The project is expected to begin this
summer and be completed by the fall.
The Public Services Department maintains a Facilities Condition Index for city buildings that accounts for
maintenance, repairs, and replacement. In addition to the roof, the index identified approximately $3 million of assets
beyond useful life at the Steiner Aquatics Center. Some of the assets include the locker rooms, pool resurfacing, and the
parking lot.
Policy Question:
➢Planning for Capital Replacement Needs at Steiner Aquatics Center – The Council may wish to ask the
Administration what planning is being done for the $3 million of capital replacement needs at the Steiner Aquatics
Center and how those projects would be prioritized.
A-9: Natural Gas Cost Increase ($635,000 from General Fund Balance of which $135,000 to the Fleet
Fund)
The City experienced significant cost increases for natural gas over the winter. The base budget for wholesale natural
gas serving the City’s larger facilities is $565,635. The increase would bring the total funding for FY2023 to $1,200,635
or a 112% increase. This request is for one-time funding to address the current fiscal year natural gas price spikes.
Ongoing funding would be needed in the FY2024 annual budget assuming natural gas prices remain high. The largest
price spike was a six-fold increase in the cost of natural gas for January from an average of $7 per decatherm (a
measure of heat energy) to $49. Prices have since decreased but remain higher than historical averages.
The City uses Dominion Energy to supply natural gas to most facilities. The City uses a wholesale natural gas contract
through the State for the largest facilities which historically has saved taxpayers funding by accessing lower prices.
Over the recent winter the wholesale vendor passed along price spikes to customers resulting in large cost increases.
The Public Services Department is evaluating options to lock in prices to avoid similar unexpectedly large cost
increases at short notice.
The City has made several capital improvements in recent years to reduce the use of natural gas such as replacing the
steam boilers in the Central Plant which serves the Main Library, City Hall, and The Leonardo, HVAC upgrades at the
Public Lands Building, and replacing the Steiner Aquatics Center pool boilers.
A-10: Ranked Choice Voting Awareness Materials ($35,000 from General Fund Balance)
It has been confirmed there will be no state funding available for awareness of Ranked Choice Voting this election. Any
awareness materials must be funded by the City. For fiscal year 22-23, the Recorder’s office is requesting $35,000 to
cover awareness materials and an additional $40,000 in the FY 23-24 proposal provided the expenses will be incurred.
between July and October. Awareness for this fiscal year shall include brochures, large QR posters, stickers, vinyl
banners for tabling, candy for tabling, translation services, scripts for PSA, graphic design subscription for the creation
of awareness materials, radio ads, billboards, and more. The Council selected ranked choice voting without a primary
for the municipal election this year. The General Election will be held on Tuesday, November 7. This year elections are
being held for City Council districts two, four, six, and the mayoral race.
A-11: Environmental Assessment Additional Funding ($50,000 from General Fund Balance)
The Sustainability Department is requesting $50,000 to continue environmental assessments at the former Redwood
Road landfill site where a tiny home village is planned. The funds would be used to cover consulting work to finalize a
Remedial Action Plan which must be approved by the State Department of Environmental Quality or DEQ.
Remediation work could then begin during construction through oversight, sampling, design, and reporting. Some of
the funds may also be used for environmental issues at the Fleet Block.
The FY2023 annual budget included a new line item in Non-departmental of $100,000 for consultant services to assess
environmental issues on City property. The Administration reports $95,600 was spent for work related to the DEQ’s
voluntary cleanup program at the future site of The Other Side Village, and $1,434 was spent on developing community
garden environmental standards and procedures. The remaining available balance is $2,966. The ground lease
agreement between the City and The Other Side Academy requires reimbursement for the environmental assessments,
planning, and remediation work. The City is fronting these costs and may be reimbursed later.
The Administration has requested a straw poll on this item.
A-12: Impact Fee Plan Consultant Contract Amendment ($27,000 Total; $9,000 Each from Fire, Parks,
and Police Impact Fees)
The Finance Department is requesting $9,000 from Parks & Public Land Impact Fees, $9,000 from Fire Impact Fees,
and $9,000 from Police Impact Fees to fund an amendment to the Impact Fee Facilities Plan (IFFP) consultant
contract. The department will work with the consultants to complete updates to the IFFPs and Impact Fee Analysis.
The Administration anticipated transmitting recommended updates to the Council for the fire and police sections of
the City’s Impact Fees Plan in FY2024. An update to the parks section is expected to be transmitted later depending on
work developing a five-year strategic plan. In October 2020, the Council approved an update to the transportation
section.
A-13: Flood Mitigation ($1 Million Total; $736,275 from General Fund Balance and Recapturing
$263,725 of Unused NBA Allstar Game Activation Funding)
Salt Lake City Administration and Emergency Management requests funds to be used for sandbagging, diversion walls,
and Joint Hazard Analysis Teams will also be used in the event there is wide scale flooding. The $263,725 is funding
remaining from the NBA Allstar Game activation funding that is being proposed to be redirected toward flood
mitigation purposes. After the transmittal was received the Administration requested this item be increased from
$500,000 to $1 million based on costs incurred related to Emigration Creek flooding.
A-14: Additional ARPA Revenue Replacement ($18,603,080 from ARPA)
The Administration is requesting the Council approve using additional ARPA funding for revenue replacement. This
would almost maximize the allowable revenue replacement in the General Fund based on U.S. Treasury guidance. This
approach also helps reduce the administrative workload to monitor, document, and report compliance to the federal
government. Some items previously identified as being funded from ARPA would instead receive General Fund dollars
and some of the revenue replacement would be available to use in FY2024. These items include:
- $10 million would lapse to General Fund Balance at the end of FY2023 to be used in FY2024
- $4 million would be transferred to the RDA for the Westside Communities Initiative
- $2 million would be transferred to Public Utilities’ Storm Water Fund for local matching funds to a state grant for
the new water reclamation facility
- $2 million would be used for the local nonprofit assistance grants to be administered through the Housing Stability
Division
- $500,000 would be transferred to CIP for annex building renovations which is leased by Odyssey House for a
substance abuse treatment program serving single fathers
- $103,080 would be used for Rapid Intervention Team equipment
If this item is approved, then nearly all the City’s fiscal recovery funding from ARPA would be budgeted. The deadline
to obligate funds is the end of calendar year 2024 under current U.S. Treasury guidance.
A-15: ARPA Funding to Perpetual Housing Fund Utah Investment proposal
Staff Note: see separate staff report for additional information on this proposal which is also scheduled to have a
separate briefing. Mayor Mendenhall is requesting that the City Council approve a $10 million budget amendment to
be distributed to a non-profit development organization named the Perpetual Housing Fund of Utah, LLC (PHF) for
affordable housing development and wealth building opportunities for PHF project residents. Additionally, the
Administration is seeking feedback on the pre-funding conditions the Administration is proposing to PHF for this
allocation. For additional information on this proposal see Attachment #1.
Section B: Grants for Existing Staff Resources Section (None)
Section C: Grants for New Staff Resources Section (None)
Section D: Housekeeping
D-1: State Mitigation Grant to Advantage Services for Mobile Clean Team ($160,000 from Three Prior
Awards)
Note that items A-2, A-3, D-1, and E-3 are all related to increasing funding for the contract between Advantage
Services and the City through the end of FY2023. See the A-2 write-up for more.
This request is to rescope $160,000 for the mobile clean team provided by Advantage Services. The funding is from
three subawards for staffing: $60,000 from Housing Stability Division, $50,000 from Salt Lake City Police
Department, and $50,000 from Volunteers of America. All the unspent funds must be returned to the State if not used
by the end of the fiscal year. The $160,000 was unused earlier in the fiscal year due to vacancies. Note the budget
amendment would keep $110,000 within the existing cost center but for a new use and $50,000 would be moved from
a Police Department cost center to CAN’s existing professional services cost center which is item E-3 below.
D-2: Fire Department — Other Reimbursements ($17,118 from General Fund)
The Fire Department has provided several services in which it expects to receive a reimbursement including: training
backfill costs incurred on behalf of Utah Search and Rescue (USAR), and Fire Investigation overtime incurred on
behalf of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Utah Search and Rescue (USAR) Training/Backfill $8,820.33
Camp Williams Exercises, K9 Training, Tech Search Specialist
Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) $8,297.39
Sugarhouse Fire Investigation/Overtime
Total Reimbursement $17,117.72
D-3: Transfer Parks Impact Fees to Surplus Land Fund – Land Purchase near RAC ($395,442 from
Parks Impact Fees)
Public Lands is requesting a budget amendment to reimburse the Surplus Land Fund using Parks Impact Fees for a
previous year property acquisition. In 2019, the Council approved $500,000 of Surplus Land Funds to be used to fund
the purchase of two parcels near the Regional Athletic Complex or RAC (Rose Park Lane) references BA3 FY19 A-1. The
actual cost of the acquisition came in at $395,441.70. Public Lands is requesting a budget amendment to transfer
$395,442 from Parks Impact Fees to a new impact fee cost center to reimburse the actual cost of the land and to
recapture the original $500,000 appropriation back to the Surplus Land account.
Note that item D-7 would also increase the Surplus Land Fund balance. At the time of publishing this staff report, the
current balance of the Surplus Land Fund was being confirmed.
D-4: Fire Impact Fee – Fee payment for Excess Capacity ($2.2 million of Fire Impact Fees of which $1.7
million to the CIP Fund and $500,000 to the General Fund)
The Administration is requesting a budget of $2.2 million from fire impact fees as reimbursement to the General Fund
for past investments in facilities eligible for but not funding from fire impact fees. The City’s Impact Fee Plan calls
these an “existing facilities buy-in” which has an estimated total value of $4,746,899. The General Fund has not
received funding for the prior investments. The $1.7 million going to the CIP Fund is anticipated to be used for paying
annual debt service on bonds that built Fire Stations #3 and #14. The $500,000 in the General Fund would be used in
the following item D-5. Note that the available to spend balance of fire impact fees as of March 24 is $1,725,882. An
additional $474,118 is anticipated revenue through the end of FY2023. If this item is approved, then all the available to
spend fire impact fees would be used. The potential existing facilities buy-in option would have $2,546,899 available
for future potential reimbursement to the General Fund.
D-5: Fire Training Center ($499,533 from General Fund to CIP Fund)
The Fire Training Center (FTC) is comprised of two CIP projects, the Logistics Center/Large Equipment Garage and
the Renovation of the old Fire Station #14. Both projects were referred to as the Fire Training Center. $499,533.39 was
appropriated for the renovation of the old Fire Station #14 (100% Impact Fee Eligible) and placed in Cost Center 84-
17015 with the title Fire Training Center. These funds were inadvertently expended on the construction of the Fire
Training Center Logistics Center (Ineligible for Impact Fees) instead. The Capital Asset Planning team is requesting to
move $499,533.39 from non-departmental to a new CIP cost center to reimburse Fire Impact Fees for the FTC
Logistics Center. Note that this funding from the General Fund is related to the prior item D-4.
D-6: Fisher Mansion Carriage House Impact Fee Reimbursement ($100,000 from Parks Impact Fees
to CIP Cost Overrun Account)
An Administrative Budget Adjustment was approved in March 2023 for $100,000 of cost overrun for the Fisher
Mansion Carriage House Improvement Project. The Fisher Mansion Carriage House Improvement Project is 100%
impact fee eligible and the Capital Asset Planning team is requesting $100,000 from Parks Impact Fees to reimburse
the cost overrun cost center. If this item is approved, then the CIP Cost Overrun Account would have an available
balance of $923,081.
D-7: Recapture of Police Precinct Funds to Surplus ($129,688 from CIP Fund to Surplus Land Fund)
After four years of inactivity due to the inability to procure a suitable piece of land at the right price, the Finance
Department is requesting the recapture of these funds to the Surplus Land cost center. Note that item D-7 would also
increase the Surplus Land Fund balance. At the time of publishing this staff report, the current balance of the Surplus
Land Fund was being confirmed.
D-8: Police Impact Fee – Unclaimed Refunds ($237,606 from Impact Fees to Police Impact Fees)
The Capital Asset Planning Team is requesting to move $237,606.45 in unclaimed impact fee refunds back to the Police
Impact Fees. This request is being made to comply with Section 603 - Refunds, of Utah Code 11-36a - Impact Fees Act.
As outlined in the code, the City shall expend any unclaimed refund on capital facilities identified in the current capital
facilities plan for the type of public facility for which the impact fee was collected. The unclaimed refunds would no
longer be subject to the six-year spending clock all impact fees are typically required to satisfy, and they would still be
limited to the eligible uses identified in the City’s Impact Fees Plan.
D-9: Rapid Intervention Team Trailer RV/XP ($25,000 from General Fund to Fleet Fund)
As part of the adoption of FY23 Budget Amendment 5 - Initiative A-1 - Rapid Intervention Team Trailer, funds were
budgeted to Facilities in the General Fund. However, the transfer from General Fund to Fleet Fund was not included in
the budget adoption. This amendment is to correct that. By purchasing the trailer through the Fleet Fund, it will
become part of their inventory allowing Fleet better track maintenance needs. Request is $25,000 from General Fund
to Fleet Fund for the purchase of the trailer for the Rapid Intervention Team.
D-10: Difference Between $4.3 Million Grant Adopted in Budget Amendment No. 5 and the Actual
$4.22 Million) ($78,560 from Misc. Grants)
In Budget Amendment #5, $4,300,000 in Miscellaneous Grants funding was adopted to be used toward bonuses for
Police POST training, recruitment and retention. Although the $4,300,000 million amount was adopted, the actual
available amount is $4,221,440. In order to be accurate in ARPA reporting it is necessary to reduce the budgeted
expenditure amount by $78,560.
Section E: Grants Requiring No New Staff Resources
E-1: School-Age Quality 22 Grant (FY22-25) ($780,000 from Misc. Grants (Funding and Award Title
Correction)
The Administration indicates this grant was approved on the June 14, 2022, Consent Agenda #1 for one year of funding at
$390,000 with an incorrect title, timeframe, and award amount. This item will correct the title as well as the
timeframe of the grant from one year to three years of funding for YouthCity afterschool Programming at Fairmont Park,
Liberty Park, Central City, Ottinger Hall, Sorenson Unity Center and Sorenson Multi-Cultural Center. An additional $780,00
will be added to the budget for an additional two years of funding. A match is not required; however, the Division of Youth
and Family Services will be providing a voluntary cash match from staff time. The public hearing was held May 17, 2022.
E-2: School-Age Quality Summer Expansion FY22-23 ($373,338 from Misc. Grants) (Correction)
The Council approved this item on June 14, 2022, under Consent Agenda #1 for one year of funding, $62,223 per YouthCity
site, for the summer of 2022. The funding should have reflected funding for the summer of 2023 as well. This item will add
additional funding, meaning that each YouthCity site will receive $124,446 for a total grant award of $746,767. The public
hearing was held May 17, 2022.
E-3: State Homeless Shelter Cities Mitigation Grant FY2023 Revision ($160,000 Rescope for
Advantages Services from A Prior Award)
Note that items A-2, A-3, D-1, and E-3 are all related to increasing funding for the contract between Advantage
Services and the City through the end of FY2023. See the A-2 write-up for more.
This request is to rescope $50,000 for the mobile clean team provided by Advantage Services. The funding is from
rescoping $50,000 previously awarded to the Salt Lake City Police Department. All the unspent funds must be
returned to the State if not used by the end of the fiscal year. $50,000 would be moved from a Police Department cost
center to CAN’s existing professional services cost center.
Section F: Donations
(None)
Section G: Donations
G-1: U.S. Department of Homeland Security, FEMA – Assistance to Firefighters Grant Program
($115,472 from Misc. Grants)
Section I: Council Added Items
(none)
ATTACHMENTS
(none)
ACRONYMS
ARPA – American Rescue Plan Act
BA – Budget Amendment
CIP – Capital Improvement Program Fund|
CV – Corona Virus
ESG – Emergency Solutions Grant
FY – Fiscal Year
FOF – Funding Our Future
GASB – Governmental Accounting Standards Board GF – General Fund
HUD – Housing and Urban Development
IMS – Information Management Services
RAC – Regional Athletic Complex
RDA – Redevelopment Agency
VOA – Volunteers of America
DEPARTMENT OF FINANCE
POLICY AND BUDGET DIVISION
451 SOUTH STATE STREET, ROOM 238
PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394
ERIN MENDENHALL
Mayor
MARY BETH THOMPSON
Chief Financial Officer
CITY COUNCIL TRANSMITTAL
___________________________________ Date Received: _______________
Lisa Shaffer, Chief Administrative Officer Date sent to Council: __________
______________________________________________________________________________
TO: Salt Lake City Council DATE: April 7, 2023
Darin Mano, Chair
FROM: Mary Beth Thompson, Chief Financial Officer
SUBJECT: Budget Amendment #6
SPONSOR: NA
STAFF CONTACT: John Vuyk, Budget Director (801) 535-6394 or
Mary Beth Thompson (801) 535-6403
DOCUMENT TYPE: Budget Amendment Ordinance
RECOMMENDATION: The Administration recommends that, subsequent to a public hearing,
the City Council adopt the following amendments to the FY2022-23 adopted budget.
BUDGET IMPACT:
REVENUE EXPENSE
GENERAL FUND $ 19,120,198.00 $ 11,719,731.39
CIP FUND 5,459,533.39 3,859,533.39
CIP: IMPACT FEE FUND 0.00 2,577,466.61
FLEET FUND 160,000.00 160.000.00
MISCELLANEOUS GRANTS FUND 1,268,810.72 15,268,810.72
STORM WATER FUND 2,000,000.00 2,000,000.00
OTHER SPECIAL REVENUE FUND 50,000.00 50,000.00
TOTAL $ 28,058,542.11 $ 50,160,062.11
Lisa Shaffer (Apr 7, 2023 13:47 MDT)04/07/2023
04/07/2023
BACKGROUND/DISCUSSION:
Revenue for FY 2022-23 Budget Adjustments
The following chart shows a current projection of General Fund Revenue for fiscal year 2023.
The current projections for fiscal year 2023 projections continue to be positive. Sales tax is
currently projected to exceed budget by $5.7 million while the sales tax associated with Funding
Our Future is projected to exceed budget by $6.8 million.
Building permits have slowed and are currently showing a decrease, those losses are slightly
offset by small gains in airport parking tax and innkeepers tax, but still show a loss compared to
the budget of $1.7 million. Due to the rise in interest rates, interest income shows a large positive
variance to budget of $5.4 million. Charges and services and miscellaneous revenue are both
trending above budget. In total, current revenue projections are above amended budget by $17.1
million.
Revenue
FY22-FY23 Annual
Budget
FY22-23 Amended
Budget Revised Forecast
Amended Variance
Favorable
(Unfavorable)
Revenue FY22-FY23 Annual BudgetFY22-FY23 Amended BudgetRevised Forecast Amended Variance
Property Taxes 125,012,927 125,012,927 125,012,927 -
Sale and Use Taxes 105,050,018 105,050,018 110,811,754 5,761,736
Franchise Taxes 11,657,128 11,657,128 12,020,987 363,859
Payment in Lieu of Taxes 1,638,222 1,638,222 1,638,222 -
Total Taxes 243,358,295 243,358,295 249,483,890 6,125,595
Revenue FY22-FY23 Annual BudgetFY22-FY23 Amended BudgetRevised Forecast Amended Variance
Licenses and Permits 40,736,114 40,736,114 39,033,583 (1,702,531)
Intergovernmental Revenue 4,644,622 4,644,622 4,892,377 247,755
Interest Income 2,071,154 2,071,154 7,500,000 5,428,846
Fines 3,765,174 3,765,174 3,459,141 (306,033)
Parking Meter Collections 2,635,475 2,635,475 2,635,475 -
Charges, Fees, and Rentals 4,432,794 4,432,794 4,879,854 447,060
Miscellaneous Revenue 3,438,710 3,438,710 3,959,921 521,211
Interfund Reimbursement 24,431,717 24,431,717 24,234,739 (196,978)
Transfers 28,821,993 34,910,408 34,848,950 (61,458)
Total W/O Special Tax 358,336,048 364,424,463 374,927,930 10,503,467
ObjectCodeDescription FY22-23 Annual Budget FY22-23 Amended BudgetRevised Forecast Amended Variance
Additional Sales Tax (1/2%)44,364,490 44,364,490 51,035,000 6,670,510
Total General Fund 402,700,538 408,788,953 425,962,930 17,173,977
Alejandro Sanchez (Apr 7, 2023 13:40 MDT)
Fund balance has been updated to include proposed changes for BA#6.
Based on those projections adjusted fund balance is projected to be at 23.00%.
FOF GF Only TOTAL FOF GF Only TOTAL
Beginning Fund Balance 12,114,190 104,171,780 116,285,970 18,395,660 141,728,022 160,123,682
Budgeted Change in Fund Balance (2,879,483) (15,335,334) (18,214,817) (2,100,608) (20,736,262) (22,836,870)
Prior Year Encumbrances (1,879,654) (10,259,789) (12,139,443) (3,162,300) (17,260,909) (20,423,209)
Estimated Beginning Fund Balance 7,355,053 78,576,657 85,931,710 13,132,752 103,730,851 116,863,603
Beginning Fund Balance Percent 14.28%22.33%21.30%29.60%27.04%27.30%
Year End CAFR Adjustments
Revenue Changes - - - - - -
Expense Changes (Prepaids, Receivable, Etc.) - (7,535,897) (7,535,897) (8,556,220) (8,556,220)
Fund Balance w/ CAFR Changes 7,355,053 71,040,760 78,395,813 13,132,752 95,174,631 108,307,383
Final Fund Balance Percent 14.28%20.19%19.43%29.60%24.81%25.30%
Budget Amendment Use of Fund Balance
BA#1 Revenue Adjustment - - - - - -
BA#1 Expense Adjustment - 5,138,235 5,138,235 - (475,000) (475,000)
BA#2 Revenue Adjustment - 490,847 490,847 - - -
BA#2 Expense Adjustment - (986,298) (986,298) - - -
BA#3 Revenue Adjustment - - - - 6,000,000 6,000,000
BA#3 Expense Adjustment (1,000,000) (1,000,000) (2,000,000) - (6,538,000) (6,538,000)
BA#4 Revenue Adjustment - 1,508,044 1,508,044 - 194,600 194,600
BA#4 Expense Adjustment - (4,242,779) (4,242,779) - (7,584,328) (7,584,328)
BA#5 Revenue Adjustment - 400,000 400,000 - - -
BA#5 Expense Adjustment - (400,000) (400,000) - (5,940,349) (5,940,349)
BA#6 Revenue Adjustment - - - - 19,120,198 19,120,198
BA#6 Expense Adjustment - (1,553,938) (1,553,938) - (11,719,731) (11,719,731)
BA#7 Revenue Adjustment - (794,641) (794,641) - - -
BA#7 Expense Adjustment (1,200,000) (10,843,298) (12,043,298) - - -
Change in Revenue 11,139,999 23,083,587 34,223,586 - - -
Change in Expense 2,100,608 12,134,899 14,235,507 - -
Fund Balance Budgeted Increase - - - - - -
- - Adjusted Fund Balance 18,395,660 93,975,418 112,371,078 13,132,752 88,232,021 101,364,773
Adjusted Fund Balance Percent 35.72%26.70%27.86%29.60%23.00%23.68%
Proposed/Adopted Revenue 51,499,136 351,910,770 403,409,906 44,364,490 383,650,846 428,015,336
FY2023 BudgetFY2022 Projection
The Administration is requesting a budget amendment totaling $28,058,542.11 of revenue and
expense of $50,160,062.11. The amendment proposes changes in seven funds, with no increases
in FTEs. The amendment also includes the use of $7,400,466.61 from the General Fund fund
balance. The proposal includes twenty-nine initiatives for Council review.
A summary spreadsheet outlining proposed budget changes is attached. The Administration
requests this document be modified based on the decisions of the Council.
The budget opening is separated in eight different categories:
A. New Budget Items
B. Grants for Existing Staff Resources
C. Grants for New Staff Resources
D. Housekeeping Items
E. Grants Requiring No New Staff Resources
F. Donations
G. Council Consent Agenda Grant Awards
I. Council Added Items
PUBLIC PROCESS: Public Hearing
SALT LAKE CITY ORDINANCE
No. ______ of 2023
(Sixth amendment to the Final Budget of Salt Lake City, including
the employment staffing document, for Fiscal Year 2022-2023)
An Ordinance Amending Salt Lake City Ordinance No. 32 of 2022 which adopted the
Final Budget of Salt Lake City, Utah, for the Fiscal Year Beginning July 1, 2022, and Ending
June 30, 2023.
In June of 2022, the Salt Lake City Council adopted the final budget of Salt Lake City,
Utah, including the employment staffing document, effective for the fiscal year beginning July 1,
2022, and ending June 30, 2023, in accordance with the requirements of Section 10-6-118 of the
Utah Code.
The City’s Budget Director, acting as the City’s Budget Officer, prepared and filed with
the City Recorder proposed amendments to said duly adopted budget, including the amendments
to the employment staffing document necessary to effectuate any staffing changes specifically
stated herein, copies of which are attached hereto, for consideration by the City Council and
inspection by the public.
All conditions precedent to amend said budget, including the employment staffing
document as provided above, have been accomplished.
Be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. Purpose. The purpose of this Ordinance is to amend the final budget of
Salt Lake City, including the employment staffing document, as approved, ratified and finalized
by Salt Lake City Ordinance No. 32 of 2022.
SECTION 2. Adoption of Amendments. The budget amendments, including any
amendments to the employment staffing document necessary to effectuate the staffing changes
2
specifically stated herein, attached hereto and made a part of this Ordinance shall be, and the
same hereby are adopted and incorporated into the budget of Salt Lake City, Utah, including any
amendments to the employment staffing document described above, for the fiscal year beginning
July 1, 2022 and ending June 30, 2023, in accordance with the requirements of Section 10-6-128
of the Utah Code.
SECTION 3. Filing of copies of the Budget Amendments. The said Budget Officer is
authorized and directed to certify and file a copy of said budget amendments, including any
amendments to the employment staffing document, in the office of said Budget Officer and in
the office of the City Recorder which amendments shall be available for public inspection.
SECTION 4. Effective Date. This Ordinance shall take effect upon adoption.
Passed by the City Council of Salt Lake City, Utah, this _____ day of __________, 2023.
________________________
CHAIRPERSON
ATTEST:
______________________________
CITY RECORDER
Transmitted to the Mayor on __________________
Mayor’s Action: ____ Approved ____ Vetoed
_________________________
MAYOR
ATTEST:
_______________________________
CITY RECORDER
(SEAL)
Bill No. _________ of 2023.
Published: ___________________.
Salt Lake City Attorney’s Office
Approved As To Form
___ _______
Jaysen Oldroyd
Initiative Number/Name Fund Revenue Amount
Expenditure
Amount Revenue Amount
Expenditure
Amount
Ongoing or One-
time FTEs
1 Cultural Core Contract Amendments GF - (291,000.00)One-time -
1 Cultural Core Contract Amendments GF - 291,000.00 One-time -
2 Homelessness Advantage Services GF - (300,000.00)Ongoing -
2 Homelessness Advantage Services GF - 300,000.00 One-time -
3
Repurpose Operation Rio Grande Funds for
New Homeless Services (Advantage
Services)
GF - - One-time -
4 Liberty Park Seven Canyons Fountain
Scope Change CIP - (695,580.00)One-time -
4 Liberty Park Seven Canyons Fountain
Scope Change CIP (127,968.00)One-time -
4 Liberty Park Seven Canyons Fountain
Scope Change CIP 823,548.00 One-time -
5 Open Space Property Acquisition (City
Parks)Impact Fees - 450,000.00 One-time -
6 Open Space Property Acquisition (Trails)Impact Fees - 300,000.00 One-time -
7 Recaptured HUD ESG-CV Funds Misc Grants - (200,000.00)One-time -
7 Recaptured HUD ESG-CV Funds Misc Grants - (9,552.00)One-time -
7 Recaptured HUD ESG-CV Funds Misc Grants - 209,552.00 One-time -
8 Steiner Roof - County Contractual
Obligation and City Portion GF - 1,380,000.00 One-time -
8 Steiner Roof - County Contractual
Obligation and City Portion CIP 1,380,000.00 1,380,000.00 One-time -
8 Steiner Roof - County Contractual
Obligation and City Portion CIP 1,380,000.00 1,380,000.00 One-time -
9 Natural Gas Cost Increase GF - 500,000.00 One-time -
9 Natural Gas Cost Increase GF - 135,000.00 One-time -
9 Natural Gas Cost Increase Fleet 135,000.00 135,000.00 One-time -
10 Ranked Choice Voting Awareness Materials GF - 35,000.00 Ongoing -
11 Environmental Assessment Fund GF - 50,000.00 One-time -
11 Environmental Assessment Fund Other Special Rev 50,000.00 50,000.00 One-time -
12 IFFP Consultant Contract Amendment Impact Fees - 27,000.00 One-time -
13 Flood Mitigation GF - 236,275.00 One-time -
13 Flood Mitigation (Recaptured All Star
Game Funding)GF - 263,725.00 One-time
14 Additional ARPA Revenue Replacement Misc Grants - 18,603,080.00 One-time -
14 Additional ARPA Revenue Replacement GF 18,603,080.00 8,603,080.00 One-time -
14 Additional ARPA Revenue Replacement Storm Water 2,000,000.00 2,000,000.00 One-time -
14 Additional ARPA Revenue Replacement CIP 500,000.00 500,000.00 One-time -
15 ARPA Funding to Perpetual Housing Fund Misc Grants - 10,000,000.00 One-time -
FY 2023 Budget Amendment #6
Council ApprovedAdministration Proposed
Section A: New Items
Section C: Grants for New Staff Resources
Section B: Grants for Existing Staff Resources
1
FY 2023 Budget Amendment #6
1 Withdrawn Prior to Transmittal
2 Fire - Other Reimbursements GF 17,118.00 17,118.00 One-time -
3 Transfer Parks Impact Fees to Surplus Land
- Land Purchase Near RAC Impact Fees - (395,442.00)One-time -
3 Transfer Parks Impact Fees to Surplus Land
- Land Purchase Near RAC Impact Fees - 395,442.00 One-time -
3 Transfer Parks Impact Fees to Surplus Land
- Land Purchase Near RAC CIP (500,000.00) - One-time -
3 Transfer Parks Impact Fees to Surplus Land
- Land Purchase Near RAC CIP 500,000.00 - One-time -
4 Fire Impact Fee - Payment for Excess
Capacity GF 500,000.00 - One-time -
4 Fire Impact Fee - Payment for Excess
Capacity Impact Fees (2,200,000.00) - One-time -
4 Fire Impact Fee - Payment for Excess
Capacity Impact Fees 2,200,000.00 2,200,000.00 One-time -
4 Fire Impact Fee - Payment for Excess
Capacity CIP 1,700,000.00 - One-time -
5 Fire Training Center GF - 499,533.39 One-time -
5 Fire Training Center CIP 499,533.39 499,533.39 One-time -
5 Fire Training Center Impact Fees (499,533.39) (499,533.39)One-time -
5 Fire Training Center Impact Fees 499,533.39 - One-time -
6 Fisher Mansion - Impact Fee
Reimbursement of Cost Overrun Impact Fees (100,000.00) - One-time -
6 Fisher Mansion - Impact Fee
Reimbursement of Cost Overrun Impact Fees 100,000.00 100,000.00 One-time -
6 Fisher Mansion - Impact Fee
Reimbursement of Cost Overrun CIP - 100,000.00 One-time -
7 Recapture of Police Precinct Funds to
Surplus Land CIP (1,299,688.00) - One-time -
7 Recapture of Police Precinct Funds to
Surplus Land CIP 1,299,688.00 - One-time -
8 Police Impact Fee - Unclaimed Refunds Impact Fees (237,606.45) - One-time -
8 Police Impact Fee - Unclaimed Refunds Impact Fees 237,606.45 - One-time -
9 Rapid Intervention Team Trailer RV/XP -
GF to Fleet GF - (25,000.00)One-time -
9 Rapid Intervention Team Trailer RV/XP -
GF to Fleet GF - 25,000.00 One-time -
9 Rapid Intervention Team Trailer RV/XP -
GF to Fleet Fleet 25,000.00 25,000.00 One-time -
10 Diff between $4.3 grant adopted in BA 5 Misc Grants (78,560.00)One-time -
Section E: Grants Requiring No New Staff Resources
1 School-age Quality 22 Grant (FY 22-25)Misc Grants 780,000.00 780,000.00 One-time -
2 School-Age Quality Summer Expansion 22-
23 Misc Grants 373,338.00 373,338.00 One-time -
3 Homeless Shelter Cities Mitigation Grant
FY23 -Budget Revision Misc Grants (50,000.00) (50,000.00) One-time -
3 Homeless Shelter Cities Mitigation Grant
FY23 -Budget Revision Misc Grants 50,000.00 50,000.00 One-time -
-
Section D: Housekeeping
Section F: Donations
2
FY 2023 Budget Amendment #6
Consent Agenda #7
1
U S Department of Homeland Security,
FEMA - Assistance to Firefighters Grant
Program
Misc Grants 115,472.72 115,472.72 One-time -
Total of Budget Amendment Items 28,058,542.11 50,160,062.11 - - -
Initiative Number/Name Fund Revenue Amount
Expenditure
Amount Revenue Amount
Expenditure
Amount
Ongoing or One-
time FTEs
Total by Fund Class, Budget Amendment #6:
General Fund GF 19,120,198.00 11,719,731.39 - - -
CIP Fund CIP 5,459,533.39 3,859,533.39 - - -
CIP: Impact Fee Funds Impact Fees - 2,577,466.61 - - -
Fleet Fund Fleet 160,000.00 160,000.00 - - -
Miscellaneous Grant Fund Misc Grants 1,268,810.72 29,793,330.72 - - -
Storm Water Fund Storm Water 2,000,000.00 2,000,000.00 - - -
Other Special Revenue Other Special Rev 50,000.00 50,000.00 - - -
-
Total of Budget Amendment Items 28,058,542.11 50,160,062.11 - - -
Administration Proposed Council Approved
Section I: Council Added Items
Section G: Council Consent Agenda -- Grant Awards
3
FY 2023 Budget Amendment #6
Current Year Budget Summary, provided for information only
FY 2022-23 Budget, Including Budget Amendments
FY 2022-23
Adopted Budget BA #1 Total BA #2 Total BA #3 Total BA #4 Total BA #5 Total Total Revenue
General Fund (FC 10)425,537,408 100,000 6,000,000 194,600 - 431,832,008
Curb and Gutter (FC 20)3,000 3,000
DEA Task Force Fund (FC 41)1,762,560 1,762,560
Misc Special Service Districts (FC 46)1,700,000 1,700,000
Street Lighting Enterprise (FC 48)4,302,222 4,302,222
Water Fund (FC 51)108,196,368 36,680,000 260,687 145,137,055
Sewer Fund (FC 52)196,630,907 196,630,907
Storm Water Fund (FC 53)13,476,733 13,476,733
Airport Fund (FC 54,55,56)302,268,600 - 302,268,600
Refuse Fund (FC 57)21,458,105 21,458,105
Golf Fund (FC 59)11,560,676 25,700 11,586,376
E-911 Fund (FC 60)3,925,000 3,925,000
Fleet Fund (FC 61)28,826,992 120,000 1,119,900 30,066,892
IMS Fund (FC 65)30,523,167 2,627,420 3,099,185 36,249,772
County Quarter Cent Sales Tax for
Transportation (FC 69)9,600,000 9,600,000
CDBG Operating Fund (FC 71)4,670,517 4,670,517
Miscellaneous Grants (FC 72)34,158,918 2,749,584 2,517,995 8,103,151 2,131,170 49,660,818
Other Special Revenue (FC 73)300,000 300,000
Donation Fund (FC 77)2,920,250 20,000 44,668 1,000,000 3,984,918
Housing Loans & Trust (FC 78)16,217,000 16,217,000
Debt Service Fund (FC 81)32,037,989 (2,951,727) 334,958 29,421,220
CIP Fund (FC 83, 84 & 86)35,460,387 6,603,019 5,267,217 91,967,958 15,149,607 154,448,188
Governmental Immunity (FC 85)3,964,523 2,000,000 500,000 6,464,523
Risk Fund (FC 87)54,679,000 54,679,000
Total of Budget Amendment Items 1,344,180,322 11,592,603 - 51,009,880 101,347,689 21,714,920 1,529,845,414
4
FY 2023 Budget Amendment #6
Current Year Budget Summary, provided for information only
FY 2022-23 Budget, Including Budget Amendments
FY 2022-23
Adopted Budget
through BA#5
BA #6 Total BA #7 Total BA #8 Total BA #9 Total BA #10 Total Total Revenue
General Fund (FC 10)431,832,008 19,120,198 450,952,206
Curb and Gutter (FC 20)3,000 3,000
DEA Task Force Fund (FC 41)1,762,560 1,762,560
Misc Special Service Districts (FC 46)1,700,000 1,700,000
Street Lighting Enterprise (FC 48)4,302,222 4,302,222
Water Fund (FC 51)145,137,055 145,137,055
Sewer Fund (FC 52)196,630,907 196,630,907
Storm Water Fund (FC 53)13,476,733 2,000,000 15,476,733
Airport Fund (FC 54,55,56)302,268,600 302,268,600
Refuse Fund (FC 57)21,458,105 21,458,105
Golf Fund (FC 59)11,586,376 11,586,376
E-911 Fund (FC 60)3,925,000 3,925,000
Fleet Fund (FC 61)30,066,892 160,000 30,226,892
IMS Fund (FC 65)36,249,772 36,249,772
County Quarter Cent Sales Tax for
Transportation (FC 69)9,600,000 9,600,000
CDBG Operating Fund (FC 71)4,670,517 4,670,517
Miscellaneous Grants (FC 72)49,660,818 1,268,811 50,929,629
Other Special Revenue (FC 73)300,000 50,000 350,000
Donation Fund (FC 77)3,984,918 3,984,918
Housing Loans & Trust (FC 78)16,217,000 16,217,000
Debt Service Fund (FC 81)29,421,220 29,421,220
CIP Fund (FC 83, 84 & 86)154,448,188 5,459,533 159,907,721
Governmental Immunity (FC 85)6,464,523 6,464,523
Risk Fund (FC 87)54,679,000 54,679,000
Total of Budget Amendment Items 1,529,845,414 28,058,542 - - - - 1,557,903,956
5
FY 2023 Budget Amendment #6
Current Year Budget Summary, provided for information only
FY 2022-23 Budget, Including Budget Amendments
Total Expense BA #1 Total BA #2 Total BA #3 Total BA #4 Total BA #5 Total Total Expense
General Fund (FC 10)425,537,408 847,540 6,538,000 7,584,328 5,940,349 446,447,625
Curb and Gutter (FC 20)3,000 3,000
DEA Task Force Fund (FC 41)1,762,560 1,762,560
Misc Special Service Districts (FC 46)1,700,000 1,700,000
Street Lighting Enterprise (FC 48)5,757,825 5,757,825
Water Fund (FC 51)132,752,815 36,680,000 260,687 169,693,502
Sewer Fund (FC 52)255,914,580 255,914,580
Storm Water Fund (FC 53)18,699,722 18,699,722
Airport Fund (FC 54,55,56)384,681,671 688,818,000 1,073,499,671
Refuse Fund (FC 57)24,952,672 3,035,700 27,988,372
Golf Fund (FC 59)14,726,016 46,800 14,772,816
E-911 Fund (FC 60)3,800,385 3,800,385
Fleet Fund (FC 61)30,426,032 4,011,360 10,678,500 45,115,892
IMS Fund (FC 65)30,523,167 2,782,449 3,099,185 36,404,801
County Quarter Cent Sales Tax for
Transportation (FC 69)9,458,748 9,458,748
CDBG Operating Fund (FC 71)4,958,433 4,958,433
Miscellaneous Grants (FC 72)26,614,153 2,749,584 2,517,995 8,481,711 2,131,170 42,494,613
Other Special Revenue (FC 73)300,000 300,000
Donation Fund (FC 77)287,250 20,000 44,668 1,000,000 1,351,918
Housing Loans & Trust (FC 78)25,779,253 100,000 25,879,253
Debt Service Fund (FC 81)33,658,558 (2,951,727) 334,958 31,041,789
CIP Fund (FC 83, 84 & 86)35,460,387 11,713,917 12,267,217 96,317,958 15,149,607 170,909,086
Governmental Immunity (FC 85)3,169,767 2,000,000 500,000 5,669,767
Risk Fund (FC 87)54,679,000 54,679,000
- Total of Budget Amendment Items 1,525,603,402 21,442,401 688,818,000 61,583,580 123,200,706 27,655,269 2,448,303,358
6
FY 2023 Budget Amendment #6
Current Year Budget Summary, provided for information only
FY 2022-23 Budget, Including Budget Amendments
Total Expense
through BA#5 BA #6 Total BA #7 Total BA #8 Total BA #9 Total BA #10 Total Total Expense
General Fund (FC 10)446,447,625 11,719,731 458,167,356
Curb and Gutter (FC 20)3,000 3,000
DEA Task Force Fund (FC 41)1,762,560 1,762,560
Misc Special Service Districts (FC 46)1,700,000 1,700,000
Street Lighting Enterprise (FC 48)5,757,825 5,757,825
Water Fund (FC 51)169,693,502 169,693,502
Sewer Fund (FC 52)255,914,580 255,914,580
Storm Water Fund (FC 53)18,699,722 2,000,000 20,699,722
Airport Fund (FC 54,55,56)1,073,499,671 1,073,499,671
Refuse Fund (FC 57)27,988,372 27,988,372
Golf Fund (FC 59)14,772,816 14,772,816
E-911 Fund (FC 60)3,800,385 3,800,385
Fleet Fund (FC 61)45,115,892 160,000 45,275,892
IMS Fund (FC 65)36,404,801 36,404,801
County Quarter Cent Sales Tax for
Transportation (FC 69)9,458,748 9,458,748
CDBG Operating Fund (FC 71)4,958,433 4,958,433
Miscellaneous Grants (FC 72)42,494,613 29,793,331 72,287,944
Other Special Revenue (FC 73)300,000 50,000 350,000
Donation Fund (FC 77)1,351,918 1,351,918
Housing Loans & Trust (FC 78)25,879,253 25,879,253
Debt Service Fund (FC 81)31,041,789 31,041,789
CIP Fund (FC 83, 84 & 86)170,909,086 6,437,000 177,346,086
Governmental Immunity (FC 85)5,669,767 5,669,767
Risk Fund (FC 87)54,679,000 54,679,000
-
Total of Budget Amendment Items 2,448,303,358 50,160,062 - - - - 2,498,463,420
Budget Manager
Analyst, City Council
Contingent Appropriation
7
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
1
Section A: New Items
A-1: Cultural Core Contract Amendments GF ($291,000.00)
GF $291,000.00
Department: Economic Development Prepared By: Felicia Baca
For questions please include Felicia Baca, Lorena Riffo-Jensen, Mary Beth Thompson
The Salt Lake City Arts Council (City) and Salt Lake County Arts & Culture (County) are each seek ing $50,000 in
additional appropriations annually from respective Councils beginning in the contract year in FY24 (July 2023) for
additional funding for the Cultural Core Action Plan Implementation contract. Funding would be moved from a Cultural
Core surplus fund and would be used to maintain existing service levels due to inflation in the six years since the Action
Plan Implementation contract was first awarded with no increases since that time. $250K from each entity is
contributed annually to total $50K appropriation annually with the contract holder until the fund balance is expended.
This funding increase has been approved by the Salt Lake County Councils 2023 Adopted Budget. See attachments.
A-2: Homelessness Advantage Services GF ($300,000.00)
GF $300,000.00
Department: CAN Prepared By: Tony Milner
For questions please include Tony Milner, Brent Beck, Blake Thomas
Over three fiscal years, the services provided to the City by Advantage Services expanded from a sole focus on the Rio
Grande neighborhood to support cleaning needs across the entire city. This expans ion of services escalated in FY21,
with a one-time award of $760,000 to implement a mobile clean team. That team still functions today, providing on -
demand clean up of abandoned camp material, voluntary trash removal services from active encampments, and
biowaste removal. Services were increased once more with the implementation of the Rapid Intervention framework,
with Advantage Services' mobile clean team offering cleaning support for Encampment Impact Mitigations (EIM) and
Rapid Intervention site rehabilitations.
With the implementation of the mobile clean team, the City has been able to respond to SLC Mobile concerns regarding
homelessness that have nearly doubled or tripled each year. Responses are significantly more efficient than in years
past, shaving 151 days off the average time it takes to close a case. With the implementation of the Rapid Intervention
framework, the City has reduced the average number of days to case closure from 50 days, in July 2022, to four days in
March 2023.
Advantage Services base budget has remained the same, despite this increase in services provided. The services were
expanded with one-time funding over a three-year period. To maintain the level of service provided in the last two fiscal
years, this year’s budget will fall short. An additional $300,000 is needed for the remainder of the fiscal year, in
addition to a rescope of the State Mitigation Grant $160,000 and Operation Rio Grande $73,418. The request is to use
$300,000 of CAN department vacancy savings.
A-3: Repurpose Operation Rio Grande Funds for
New Homeless Services (Advantage Services)
GF $0.00
Department: CAN Prepared By: Tony Milner
For questions please include Tony Milner, Brent Beck, Blake Thomas
This budget amendment is to include a provider previously not listed in the scope of work and budget through a
contract amendment with the County. See attached County contract and unsigned contract am endment.
Current Contract: $177,847: The Road Home, FY23 Winter Overflow Operations.
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
2
Contract Amendment: $104,429: The Road Home, FY23 Winter Overflow Operations, and $73,418: Advantage Services,
Overflow Cleaning Costs (a total of $$177,847).
The Road Home communicated to the city that they would not be able to fully expend their awarded. Advantage
Services would be able to expend the funds, if awarded.
A-4: Liberty Park Seven Canyons Fountain Scope
Change
CIP ($695,580.00)
CIP ($127,968.00)
CIP $823,548.00
Department: Public Lands Prepared By: Kristin Riker, Gregg Evans
For question please include Kristin Riker, Gregg Evans
Public Lands is requesting a budget amendment to change the scope of work (but not request additional funding) for
the Seven Canyons Fountain project at Liberty Park. The remaining funds available in the existing CIP General Funds
are $823,548. These are CIP funds designated for use within Liberty Park, and were meant to be used to restore and
reopen the Seven Canyons fountain with the existing water feature.
Public Lands intends to permanently adapt the fountain into a dry art piece. The funding was originally allocated to
make improvements to the fountain required by the Salt Lake County Health Department in order to re-open the
fountain as an interactive water feature. After an initial feasibility study, the City determined that re -opening the
fountain as a water feature was infeasible due to significant capital costs and projected water use. Therefore, two
alternate options were explored: adapting the art into a dry feature, or decommissioning the work altogether and
replacing it with something else.
A community survey completed in 2021 found that 71% of the 1,643 respondents support the permanent conversion of
the fountain into a dry feature, when given the choice between a dry feature and decommissioning the piece entirely.
The responses indicated that conserving water, preserving art, and staying within the existing budget were key factors to
consider in determining the future of the Seven Canyons Fountain. The Public Lands Department and the Engineering
Division also conducted a feasibility study a ssessing various options for adding water back to the fountain at a lower
rate in order to meet the City's and the community's goals of conserving water and taxpayer dollars. It was determined
that none of the options that included water were feasible and that (based on community priorities and information
from the feasibility study) converting the fountain into a dry feature is the only viable option.
Conversion of this community treasure into a dry feature will increase engagement on the site, pay tribut e to the
original artists' intentions, and create an opportunity to educate community members and youth as to the unique
ecology, hydrology, and geology of the Salt Lake Valley's eastern seven canyons.
Remaining project tasks may include, but are not limited to:
- Conceptual design with artistic input, in cooperation with the Salt Lake City Arts Council
- Design of detailed and construction documents
- Permitting and soft costs, including contingency
- Construction
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
3
A-5: Open Space Property Acquisition (City Parks) Impact Fees $450,000.00
Department: Public Lands Prepared By: Kristin Riker, Gregg Evans
For question please include Kristin Riker, Gregg Evans
Public Lands is requesting a budget amendment in the amount of $450,000 utilizing Parks Impact Fees to acquire an
available parcel of property. This funding request includes all fees associated with acquisition. Any remaining funding
from the acquisition would be utilized for immediate remediation needs and addressing potential safety concerns.
This property was identified by administration and organizational partners as a key property during the development of
an existing property. City acquisition, conversion, and activation of this property for public use is anticipated to largely
resolve these issues and enhance the utility, openness, and beauty of the area.
Securing this property and beginning remediation on this property would offer an immediate improvement to water and
soil quality in this area.
Future use of the site would be dependent on planning and community engagement, which would be accomplished and
funded in a future phase. Uses may include amenities, programming, and educat ion opportunities that support and
serve nearby community institutions, schools, and neighborhoods. By improving neighborhood aesthetics, the project
can facilitate surrounding improvements and neighborhood investments that improve quality of life.
A-6: Open Space Property Acquisition (Trails) Impact Fees $300,000.00
Department: Public Lands Prepared By: Tyler Murdock, Gregg Evans
For question please include Kristin Riker, Gregg Evans, Tyler Murdock
Public Lands is requesting a budget amendment for $300,000 utilizing Parks Impact Fees to provide a 24% matching
contribution to $1,250,000 committed from the State of Utah Department of Outdoor R ecreation and in partnership
with Utah Open Lands. The combined funding would be used to acquire several acres of open space property located in
Salt Lake City. Following acquisition of the property, SLC Public Lands will seek to develop concept designs f or
construction of a trailhead. This funding request includes all fees associated with acquisition as well concept design for
the proposed trailhead. Utah Open Land will also be conducting a fundraising campaign to cover a portion of the
acquisition. Any remaining funding would be utilized for immediate trailhead design and construction needs and
addressing potential safety concerns.
Future use of a Trailhead at this location, would be dependent on planning and community engagement to identify
existing concerns and develop a plan that would mitigate and improve trail access for all users. Future uses for a portion
of this property would include trailhead amenities including, parking, fencing, possibly restroom and other trailhead
amenities.
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
4
A-7: Recaptured HUD ESG-CV Funds Misc Grants ($200,000.00)
Misc Grants ($9,552.00)
Misc Grants $209,552.00
Department: CAN Prepared By: Tony Milner
For questions please include Tony Milner, Brent Beck, Blake Thomas
This budget amendment is seeking to reallocate unspent HUD ESG-CV funds to a provider and activity, previously
approved by Council, for eligible ESG-CV services (see attached Council Motion Sheet and Exhibit A).
This budget amendment would shift funds: FROM:
ESG-CV City Admin (Exhibit A, page 7, item 8) $200,000, and ESG-CV Volunteers of America's Homeless Outreach
Program (Exhibit A, page 6, item 4) $9,552.37,
TO: ESG-CV Utah Community Action's Homeless Prevention program (Exhibit A, page 5, item 1), $209,552.37.
Volunteers of America communicated to the City that they are unable to spend the remainder of their award.
Conversely, Utah Community Action requested a need for additional funds. This request has been reviewed by staff and
the attached Adjustment Justification outlines the agency's need and capacity to receive and utilize additional funding.
Housing Stability has forecasted the set-aside Admin funds will not be spent down before the HUD deadline, and these
are available to be reallocated.
Shifting this amount of funding would not require a Substantial Amendment, as outlined in the City's HUD 2020-2024
Consolidated Plan and Citizen Participation Plan. Additionally, these ESG-CV funds cannot be reallocated to traditional
ESG funding or activities, and Utah Community Action has demonstrated their ability to spend ESG-CV funds while
adhering to HUD ESG-CV governing regulations.
A-8: Steiner Roof - County Contractual Obligation
and City Portion
GF $1,380,000.00
CIP $1,380,000.00
CIP $1,380,000.00
Department: Public Services Prepared By: Dawn Valente
For questions please include Dawn Valente, JP Goates, George Chamoro
The Steiner Aquatics Center was installed in 2000 and is failing to the point that replacement is now necessary based on
a study completed by The Garland Co. and Logan DeWitt.
PROJECT TOTAL $2,760,000
County portion 50% $1,380,000
City portion 50% $1,380,000
The current agreement with Salt Lake County Parks and Recreation states that both parties will share the cost of capital
repairs and replacements of the building systems at 50% for each party. This request will also allow for acceptance of
the County's portion of this cost.
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
5
A-9: Natural Gas Cost Increase GF $500,000.00
GF $135,000.00
Fleet $135,000.00
Department: Public Services Prepared By: Dawn Valente
For questions please include Dawn Valente, JP Goates, George Chamoro
The wholesale natural gas costs for City Facilities are on state contract with BP. In January we received the invoice for
December services and saw an increase of double our average costs. Then in February we received our invoice for
January services which saw a dramatic increase from an average of $7 per decatherm at the beginning of the fiscal year
to $49. These increases are due to several factors in supply and the wholesale gas rates, which ty pically have saved the
City a great deal of money. The extremely large increases appear to have subsided, however rates have not fallen back
down to the lower historical rates that were seen previously, and are still double our average costs. This reques t is for
one-time funding for the current fiscal year for this unforeseen rate increase in supply chain. The funding for next fiscal
year has been included in our FY24 budget insights.
A-10: Ranked Choice Voting Awareness Materials GF $35,000.00
Department: Attorney’s Office Prepared By: Olivia Hoge
For questions please include Cindy Lou Trishman, Olivia Hoge
It has been confirmed there will be no state funding available for awareness of Ranked Choice Voting this election. Any
awareness materials must be funded by the City. For fiscal year 22-23, the Recorder’s office is requesting $35,000 to
cover awareness materials and an additional $40,000 in the FY 23-24 proposal provided the expenses will the incurred
between July and October.
Awareness for this fiscal year shall include brochures, large QR posters, stickers, vinyl banners for tabling, candy for
tabling, translation services, scripts for PSA, graphic design subscription for the creation of awareness materials, radio
ads, billboards, and more.
A-11: Environmental Assessment Fund GF $50,000.00
Other Special
Rev
$50,000.00
Department: Sustainability Prepared By: Angie Brohamer
For questions please include Debbie Lyons, Angie Brohamer
$100,000 was allocated in FY23 to pay for environmental assessments and remediation planning in order to facilitate
smooth property transactions and address immediate and unexpected environmental contamination concerns. To date,
most of the funding has been used to facilitate development of the old Redwood Road dump site, working under the
State DEQ Voluntary Cleanup Program.
$50,000 is requested to ensure environmental assessment and planning of this site can continue without delay, in
addition to having funds available to address other needs related to unexpected environmental issues and other city
sites, such as the Fleet block and city right-of-way dedications. This funding amount is expected to meet the funding
needs through FY23. With this budget change, a straw poll is requested from the Council.
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
6
A-12: IFFP Consultant Contract Amendment Impact Fees $27,000.00
Department: Finance Prepared By: Mike Atkinson, Jordan Smith
For question please include Mary Beth Thompson, Mike Atkinson, Jordan Smith
The Finance Department is requesting $9,000 from Parks & Public Land Impact Fees, $9,000 from Fire Impact Fees,
and $9,000 from Police Impact Fees to fund an amendment to the Impact Fee Facilities Plan (IFFP) consultant
contract. The department will work with the consultants to complete updates to the IFFPs and Impact Fee Analysis.
A-13: Flood Mitigation GF $236,275.00
GF $263,725.00
Department: Fire Prepared By: Clint Rasmussen
For questions please include Mary Beth Thompson, Clint Rasmussen, Chief Boden
Salt Lake City Administration and Emergency Management requests funds to be used for sandbagging, diversion walls,
Joint Hazard Analysis Teams, and will also be used in the event there is wide scale flooding and a response is needed.
The $263,725 is funding remaining from the NBA Allstar Game activation funding that is being proposed to be
redirected toward flood mitigation purposes.
A-14: Additional ARPA Revenue Replacement Misc Grants $18,603,080.00
GF $8,603,080.00
Storm Water $2,000,000.00
CIP $500,000.00
Department: Finance Prepared By: John Vuyk
For questions please include Mary Beth Thompson, Danny Walz, John Vuyk
The Administration is proposing to accept an additional $18,603,080 million in ARPA funding for revenue replacement
for fiscal year 2023. These funds will then be transferred to the RDA for the purchase of property ($4,000,000), drop to
Fund Balance to be used in Fiscal Year 2024 ($10,000,000), be used for Rapid Intervention equipment($103,080), the
community grants distributed through CAN($2,000,000), move funding to CIP for Odyssey h ouse($500,000), and
transfer $2,000,000 to Public Utilities to be used as a match with state funding.
A-15: ARPA Funding to Perpetual Misc Grants $10,000,000.00
Department: Finance Prepared By: Rachel Otto
For questions please include Mary Beth Thompson, Rachel Otto
Mayor Mendenhall is requesting that the City Council approve a $10 million budget amendment to be
distributed to a non-profit development organization named the Perpetual Housing Fund of Utah, LLC
(PHF) for affordable housing development and wealth building opportunities for PHF project residents.
Additionally, the Administration is seeking feedback on the pre-funding conditions the Administration is
proposing to PHF for this allocation. For additional information on this proposal see Attachment
#1
Section B: Grants for Existing Staff Resources
Section C: Grants for New Staff Resources
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
7
Section D: Housekeeping
D-1: State Mitigation Grant to Advantage Services Misc Grants ($160,000.00)
Misc Grants $160,000.00
Department: CAN Prepared By: Tony Milner
For questions please include Tony Milner, Brent Beck, Blake Thomas
Housing Stability has identified $160,000.00 that is projected to go unspent in this fiscal year’s Homeless Shelter Cities
Mitigation award from the State. Rather than return the funds, Housing Stability has asked the State to amend this
award to include Advantage Services as a subcontractor, in order to fill any remaining gaps in funding for needed
cleaning services throughout the City.
The State is working on a budget change request to SLC’s Homeless Shelter Cities Mitigation award for $160,000.00 to
be directed to Advantage Services. SLCPD has identified $50,000, VOA has identified $50,000, and Housing Stability
has identified $60,000 from each of their awards that would otherwise be r eturned to the State.
D-2: Fire - Other Reimbursements GF $17,118.00
Department: Fire Prepared By: Clint Rasmussen
For questions please include Clint Rasmussen, Chief Karl Lieb
The Fire Department has provided several services in which it expects to receive a reimbursement including: training
backfill costs incurred on behalf of Utah Search and Rescue (USAR), and Fire Investigation overtime incurred on behalf
of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Utah Search and Rescue (USAR) Training/Backfill $8,820.33
Camp Williams Exercises, K9 Training, Tech Search Specialist
Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) $8,297.39
Sugarhouse Fire Investigation/Overtime
Total Reimbursement $17,117.72
D-3: Transfer Parks Impact Fees to Surplus Land -
Land Purchase Near RAC
Impact Fees ($395,442.00)
Impact Fees $395,442.00
Department: Public Lands Prepared By: Kristin Riker, Gregg Evans
For questions please include Kristin Riker, Gregg Evans, Mike Atkinson
Public Lands is requesting a budget amendment to reimburse the Surplus Land Fund using Parks Impact Fees for a
previous year property acquisition. In 2019, the Council approved $500,000 of Surplus Land Funds to be used to fund
the purchase of two parcels near the Regional Athletic Complex (Rose Park Lane) references BA3 FY19 A -1. The actual
cost of the acquisition came in at $395,441.70. Public Lands is requesting a budget amendment to transfer $395,442
from Parks Impact Fees to a new impact fee cost center to reimburse the actual cost of the land and to recapture the
original $500,000 appropriation back to the Surplus Land account.
D-4: Fire Impact Fee - Payment for Excess Capacity Impact Fees $2,200,000.00
Department: Finance Prepared By: Mike Atkinson, Jordan Smith
For question please include Mike Atkinson, Jordan Smith, Mary Beth Thompson
The FY2017 IFFP includes $4,746,899 for existing facilities buy -in (Excess Capacity). The General Fund has not
received any funds for excess capacity. Fire Impact Fees has a current unallocated balance of approximately
$2,200,000. Finance is requesting to distribute $500,000 to the General Fund and $1,700,000 to CIP from Fire Impact
Fees for excess capacity.
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
8
D-5: Fire Training Center GF $499,533.39
CIP $499,533.39
Impact Fees ($499,533.39)
Department: Finance Prepared By: Mike Atkinson, Jordan Smith
For question please include Mike Atkinson, Jordan Smith, Mary Beth Thompson
The Fire Training Center (FTC) is comprised of two CIP projects, the Logistics Center/Large Equipment Garage and the
Renovation of the old Fire Station #14. Both of these projects were referred to as the Fire Training Center. $499,533.39
was appropriated for the renovation of the old Fire Station #14 (100% Impact Fee Eligible) and placed in Cost Center
84-17015 with the title Fire Training Center. These funds were inadvertently expended on the construction of the Fire
Training Center Logistics Center (Ineligible for Impact Fees) instead. The Capital Asset Planning team is requesting to
move $499,533.39 from non-departmental to a new CIP cost center to reimburse Fire Impact Fees for the FTC Logistics
Center.
D-6: Fisher Mansion - Impact Fee Reimbursement of
Cost Overrun
Impact Fees $100,000.00
CIP $100,000.00
Department: Finance Prepared By: Mike Atkinson, Jordan Smith
For question please include Mike Atkinson, Jordan Smith, Mary Beth Thompson
An Administrative Budget Adjustment was approved in March 2023 for $100,000 of cost overrun for the Fisher
Mansion Carriage House Improvement Project. The Fisher Mansion Carriage House Impro vement Project is 100%
impact fee eligible and the Capital Asset Planning team is requesting $100,000 from Parks Impact Fees to reimburse
the cost overrun cost center.
D-7: Recapture of Police Precinct Funds to Surplus
Land
CIP ($1,299,688.00)
CIP $1,299,688.00
Department: Finance Prepared By: Mike Atkinson, Jordan Smith
For question please include Mike Atkinson, Jordan Smith, Mary Beth Thompson
After four years of inactivity due to the inability to procure a suitable piece of land at the right price, the Finance
Department is requesting the recapture of these funds to the Surplus Land cost center.
D-8: Police Impact Fee - Unclaimed Refunds Impact Fees ($237,606.45)
Impact Fees $237,606.45
Department: Finance Prepared By: Mike Atkinson, Jordan Smith
For question please include Mike Atkinson, Jordan Smith, Mary Beth Thompson
The Capital Asset Planning Team is requesting to move $237,606.45 in unclaimed impact fee refunds back to the Police
Impact Fees. This request is being made to comply with Section 603 - Refunds, of Utah Code 11-36a - Impact Fees Act.
As outlined in the code, the City shall expend any unclaimed refund on capi tal facilities identified in the current capital
facilities plan for the type of public facility for which the impact fee was collected.
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
9
D-9: Rapid Intervention Team Trailer RV/XP – GF to
Fleet
GF ($25,000.00)
GF $25,000.00
Fleet $25,000.00
Department: Public Services Prepared By: Dawn Valente
For questions please include Dawn Valente, Jorge Chamorro
As part of the adoption of FY23 Budget Amendment 5 - Initiative A1 - Rapid Intervention Team Trailer, funds were
budgeted to Facilities in the General Fund. However, the transfer from General Fund to Fleet Fund was not included in
the budget adoption. This amendment is to correct that. By purchasing the trailer through the Fleet fund it will become
part of their inventory allowing Fleet better track maintenance needs.
Request is $25,000 from General Fund to Fleet Fund for the purchase of the trailer for t he Rapid Intervention Team.
D-10: Difference Between $4.3 Million Grant
Adopted in BA #5 and the Actual $4.22 Million
Amount
Misc Grants ($78,560.00)
Department: Finance Prepared By: Mary Beth Thompson
For question please include Mary Beth Thompson
In Budget Amendment #5, $4,300,000 in Miscellaneous Grants funding was adopted to be used toward bonuses for
Police POST training, recruitment and retention. Although the $4,300,000 million amount was adopted, the actual
available amount is $4,221,440. In order to be accurate in ARPA reporting it is necessary to reduce the budgeted
expenditure amount by $78,560.
Section E: Grants Requiring No New Staff Resources
E-1: School-age Quality 22 Grant (FY 22-25) Misc Grants $780,000.00
Department: Finance Prepared By: Ann Garcia
For questions please contact Ann Garcia, Mary Beth Thompson
***FUNDING and AWARD TITLE CORRECTION***
City Council approved this item on Consent Agenda #1, June 14, 2022 for one year of funding at $390,000. It was
approved with an incorrect award title. It was listed as School Age Program Summer Expansion Grant 2022 -2023.
This correction will correct the title of the award and add the additional awarded 2 years for a 3 -year award grant
period. The award was actually $390,000 a year for 3 years of funding totaling $1,170,000. This Agenda item is to
budget for the addition of $780,000 for additional 2 years of funding that was not included in the first Consent Agenda
No new FTEs.
The Division of Youth and Family Services received $390,000 each year for three years to provide YouthCity afterschool
programming at Fairmont Park, Liberty Park, Central City, Ottinger Hall, Sorenson Unity Center, and Sorenson Multi -
Cultural Center. No match is required by the funding agency. The Division is providing a voluntary cash match of the
Division's General Fund 2022-2025 budget for salaries and fringe benefits for 100% full time equivalent (FTE) of seven
site staff and one Associate Director for program delivery, 50% FTE of the Division Director for administrative
oversight, and 50% FTE of one Office Facilitator for general support.
A public hearing will be held for the grant application on May 17, 2022.
BA # 6
Housekeeping Item
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
10
Funding Grant Award
Approved by Council
6/14/22
Year 1
Year 2 Year 3
$1,170,000.00 $390,000.00 $390,000.00 $390,000.00
$780,000.00
E- School-Age Quality Summer Expansion 22-23 Misc Grants $373,338
Department: Finance Prepared By: Ann Garcia
For questions please contact Ann Garcia, Mary Beth Thompson
*** FUNDING CORRECTION ***
City Council approved this item on Consent Agenda #1, June 14, 2022 for one year of funding for each of the six sites at
$62,223/each site for 1 summer period only. The sites are: Fairmont Park, Liberty Park, Central City, Ottinger Hall,
Sorenson Multi-Cultural Center, and Unity Center. The award was actually for a total of $746,767
Each site was approved a budget of $62,223 totaling $373,338 for summer 2022. We failed to include the funding for
the summer of 2023.
This budget agenda item is to add the addtitional summer year amount. We originally budgeted for $62,223 for each of
the 6 sites. This is to correct the budget and increase the budget for each of the 6 sites by $62,223 for each of the 6 sites .
(see chart below) After this correction, each of the 6 sites will have a budget of $124,446, totaling the grant awa rd of
$746,767.
A public hearing for this application was on 05/17/2022.
BA # 6
Housekeeping Item
Cost Center
Funding Grant Award
(divided by 6 sites)
Approved by
Council 6/14/22
Year 1 - Summer
2022
Year 2 - Summer
2023
$746,767.00 $373,338.00 $373,338.00
Divided by 6 sites: Divided by 6 sites:
72-12215 Fairmont Park $62,223.00 $62,223.00
72-12216 Liberty Park $62,223.00 $62,223.00
72-12217 Central City $62,223.00 $62,223.00
72-12218 Ottinger Hall $62,223.00 $62,223.00
72-12219 Sorenson Unity Center $62,223.00 $62,223.00
72-12220
Sorenson Multi-Cultural
Center $62,223.00 $62,223.00
$373,338.00
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
11
E-3: Homeless Shelter Cities Mitigation Grant FY23 -
Budget Revision
Misc Grants ($50,000.00)
Misc Grants $50,000.00
Department: CAN Prepared By: Tony Milner, Ann Garcia
For questions please include Tony Milner, Ann Garcia, Brent Beck
Housing Stability has identified $160,000.00 that is projected to go unspent in this fiscal year’s Homeless Shelter Cities
Mitigation award from the State. Rather than return the funds, Housing Stability has asked the State to amend this
award to include Advantage Services as a subcontractor, in order to fill any remaining gaps in funding for needed
cleaning services throughout the City.
The State is working on a budget change request to SLC’s Homeless Shelter Cities Mitigation award for $160,000.00 to
be redirected to Advantage Services under the CAN cost center within the Professional Services category. SLCPD has
identified $50,000 which will be moved from Police to CAN to be used toward the Advantage Services contract. VOA
has identified $50,000, and Housing Stability has identified $60,000 from each of their awards that would otherwise
be returned to the State. These amounts will be repurposed toward the Advantage Services contract but will not need to
be moved to a different cost center, staying with the CAN cost center.
The Budget revision will reflect the following adjustments to each of the cost centers:
CC# 72-12304: CAN/Housing Stability: (+ $50,000)
(repurpose $60,000 from Salaries to Prof. Svcs.)
(repurpose $50,000 from VOA SubAward to Prof. Svcs.)
(Advantaged Services will be added under the Professional Services
category with a $160,000 budget) This would include the $60,000 from
Salaries; $50,000 from the VOA SubAward and $50,000 from SLC PD CC.
CC#72-22302: SLC Police Dept.: (-$50,000 - redirect to CAN CC#72-12304 under the Professional Services
category for Advantaged Services.)
Section F: Donations
Section G: Consent Agenda
Consent Agenda #7
G-1: US Department of Homeland Security, FEMA -
Assistance to Firefighters Grant Program
Misc. Grants
$115,472.7200
Department: Fire Department
Prepared By: Brittany Blair/Ann Garcia
The Fire Department applied for and received a US Department of Homeland Security, FEMA grant in the amount of
$115,472.72. This grant will be used to purchase equipment and personal protective equipment which is used by
firefighters to protect the health and safety of the public and firefighting personnel against fire and fire -related hazards.
Equipment includes: 116 ea. (NFPA 1977) Compliant - Wildland Goggles, Helmets, Pants, Web
Gear/Backpacks/Canteens, and Shelters.
The grant requires a match of $11,547.28 which is budgeted for within the Fire Departments general fund budget.
A Public Hearing was held on 4-5-22 for the grant application on this award.
Section I: Council Added Items
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
12
Attachments
Attachment #1
ARPA Funding to Perpetual Housing Fund
When the City first received notice of the significant Rescue Plan Funds that it would receive, the
Administration set out to identify the principles by which it would propose this money be allocated. In addition
to taking care of the City’s most urgent needs (revenue replacement, public safety, and emergency shelter), the
Administration’s goal is to allocate a large portion of Rescue Plan Funds in a way that leverages private
investment and creates lasting, generational changes for families in Salt Lake City.
This proposal provides funding for an affordable housing development with a unique tenant wealth building
program. The City’s funds are anticipated to be used as transformational seed funds for development costs,
including the cost for PHF to acquire existing structures to construct affordable units. With the help of other
partners and the leveraging of City funds, PHF’s ultimate organizational goal is to provide approximately 1500
safe, stable, and affordable homes in Salt Lake City that benefit individuals and families by helping them build
income. Over the next 20 years, PHF anticipates that this investment will translate into $50 million in the
hands of lower- and middle-income City residents.
About the Perpetual Housing Fund of Utah
PHF is a Utah non-profit affordable housing developer whose mission is to reimagine existing housing
programs to share profits with PHF project residents. PHF exists to help remove financial barriers that keep a
rapidly expanding portion of population from building wealth where they live. Unlike other non-profit
affordable housing development entities that use profits to build more affordable units, PHF will share their
profits with residents in a variety of ways, as detailed in the next section.
PHF plans to develop projects in Salt Lake City that provide rent and income restricted affordable units. PHF
anticipates breaking ground on two affordable housing projects in Salt Lake City in 2024 that will serve those at
25-120% AMI. From there, they plan to develop over 2,000 affordable units over the next decade. PHF’s first
two projects will be located in Salt Lake City, with a priority to aquire additional land in the City for subsequent
projects.
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
13
Through this investment from the City, PHF will be able to develop wealth-building affordable housing units at
the 515 east 100 south location, and ensure that future PHF projects are not driven by maximizing return to
financial investors but rather remain committed to sharing wealth with PHF project residents.
How the profit-sharing model works
PHF projects are anticipated to be financed with traditional affordable housing resources, and may include
Low Income Housing Tax Credits (LIHTCs). Under PHF’s model, PHF will share with PHF project residents
the majority of profits generated from annual cash flow, long-term equity generation, and future refinance and
sale proceeds. The amount of cash flow and profit (which will translate into payouts to the tenants) will largely
depend on annual rent increases and the paydown of the project’s mortgage. Over the past several years, area
median incomes (AMIs) have been increasing much faster than is projected when development projects are
underwritten and financed. With LIHTC-funded projects, rental rates are tied to AMIs and, as such, rents have
been increasing faster than projected. Traditional developers and their investors have been receiving the
financial benefits of these rapidly escalating rents that increase annual cash flow of the project. Instead of
reaping these benefits for the developer and investors, PHF would share these financial benefits with PHF
project residents.
PHF will establish a nonprofit tenant entity that, while not having a fee ownership interest in the development,
will have a permament interest in the development and the contractural obligation to ensure PHF project
residents will receive profits from the project. The ownership and profits-interest structure will vary slightly,
depending on if the project utilizes LIHTCs and has a tax credit investor in the ownership structure during the
first years after a PHF project is placed into service. The ownership structure and profits-interest will generally
be as follows:
LIHTC PROJECTS: YEAR 1 – 15
OWNERSHIP % PROFIT %
LIHTC INVESTOR 99.99% 10%
PHF & FUND INVESTORS
0.01%
15%
RESIDENTS/TENANT
NPO 0.00% 75%
NON LIHTC PROJECTS &
LIHTC PROJECTS: YEAR 16 +
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
14
OWNERSHIP % PROFIT %
PHF & FUND INVESTORS
99.99%
25.00%
RESIDENTS/TENANT
NPO 0.00% 75.00%
The profits-interest not otherwise allocated to the PHF project residents will offset costs associated with
developing and managing the units. PHF project residents will not have ownership or shares in the real estate
itself. Rather, there will be an agreement between the tenant nonprofit entity and the PHF project residents to
distribute proceeds in the following ways.
• Annual rent rebate – A portion of the project’s annual cash flow (profit after collecting all rent and
other income, paying all operating expenses, paying debt service, and setting aside cash reserves for
future repairs) that would typically be received by the developer will be allocated to current PHF project
residents as a rent rebate via cash payment to be distributed on an annual basis.
• Profit payout – When there is an event that generates profit, or further cashflow (refinance, exit of
the limited partner, etc.), all the cumulative residents over time will receive a payment that represents a
proportionate share of the available profit. The proportion of the profit a household receives will
depend on the length of time they lived in a PHF unit. With projects that involve LIHTCs, the profit
generating event will often happen 15 years after the project is placed into service because that's when
the tax credits end and the LIHTC investor exits the ownership structure.
• Profit advance – PHF will set aside a portion of its initial developer fee for the project to fund a 0%,
zero payment revolving fund to help PHF project residents access a portion of their anticipated profits
early in the event of an emergency or major life event (medical, educational, entrepreneurial,
etc.). These funds are replenished from the PHF project resident’s share of profit whenever a profit
payout would naturally happen.
• Profit tradeup – PHF will be co-developing hundreds of units with the Rocky Mountain Homes Fund
(RMHF), an entity that provides a missing-middle home ownership option for households making 60-
120% AMI (and occasionally less). Subject to availability, PHF tenants will be able to transfer their
accruals from a PHF project for a 1:1 reduction in purchase price on a RMHF home.
INITIAL PROJECT
515 East 100 South
• Adaptive reuse of an existing office building and new construction of an additional building, to occur in
phases.
• This property will have multiple social-equity based future uses and is slated to be acquired in May
2023. The floors on which affordable units will be constructed will be condominiumized and separated
and then sold to PHF prior to ARPA City funds being utilized on the project.
o Phase 1: Adaptive reuse.
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
15
▪ Estimated to begin construction in Q4 2023 or Q1 2024 and be completed by the end of
2024.
▪ ~38 units with a mix of studios, 1 Bedrooms, 3-Bedrooms, and 4-Bedrooms on floors 9-
11 of the existing office tower.
▪ All 38 residential units will be affordable to incomes at 25%-50% of AMI.
▪ Curently slated to also include profit-sharing coworking/office model similar to PHF in
other floors.
o Phase 2: New building.
▪ Estimated to begin construction Q2 2024 and be completed in 2026.
▪ ~40 new units (depending on final construction estimates/cost constraints) with
a mix of 5% Studios, 25% 3-Bedroom, and 70% 2-Bedroom
▪ ~48 units will be PHF (25-50% AMI)
▪ Affordable daycare on bottom floor, available to building users of all incomes.
CONDITIONS FOR FUNDING
If the Council approves the proposed funding allocation, the Administration (acting through the RDA) and
PHF will execute a funding agreement with the following conditions to ensure that Rescue Plan Funds are
deployed in accordance with federal regulations and in a manner that brings the greatest public benefit for City
residents and prospective residents. The Administration requests the Council’s feedback on the following
conditions and any other conditions the Council would like to see in this agreement:
1. PHF will deploy 100% of the City’s Rescue Plan Funds on eligible projects in Salt Lake City and in
compliance with ARPA requirements before June 30, 2024. More specifically, the funds will be spent by
PHF on the purchase of the condominiumized affordable units and construction costs for the project at
515 east 100 south.
2. The Rescue Plan Funds will be distributed concurrently with PHF closing on the acquisition of the
affordable units.
3. At the same time that the Rescue Plan Funds are distributed, PHF will record a restrictive covenant
requiring PHF to maintain affordable housing at the 515 east 100 south project at 25-50% AMI,
construct and maintain a mix of unit sizes, and wealth building (as detailed above) for a period of not
less than 30 years. The restrictive covenant will also require PHF to provide a quarterly report to the
RDA.
4. The funding agreement will require PHF to commit to developing future projects in Salt Lake City and
ensure those projects contain units affordable to those at 65% AMI and below.
5. PHF will implement an equitable process for tenant selection and, as permitted by law, potentially
prioritize certain applicants if the City desires.
6. As permitted by ARPA, the RDA, as a transformational seed funder, will be treated like an equity
investor and receive between a 2% and 6% return on its capital contribution, paid annually every year.
7. RDA to approve all legal agreements as recommended by the City Attorney.
8. Prior to distributing the funds, PHF will have received all required City approvals for the project to
move forward.
9. Prior to distributing the funds, PHF will demonstrate sufficient construction financing for the project to
move forward.
Salt Lake City FY 2022-23 Budget Amendment #6
Initiative Number/Name Fund Amount
16
10. Prior to distributing the funds, PHF will demonstrate compliance with the RDA’s sustainability policy,
which requires the project demonstrate that the units be designed to achieve an energy star score of 90
or higher and participate in the City’s Elivate Buildings Program. The units must also be designed to
operate without on-site fossil fuel combustion.
11. Adequate security and remedies should PHF default on their obligations under the funding or
restrictive use agreement.
Impact Fees - Summary Confidential
Data pulled 03/24/2023
Unallocated Budget Amounts: by Major Area
Area Cost Center UnAllocated
Cash Notes:
Impact fee - Police 8484001 1,061,156$ A
Impact fee - Fire 8484002 1,725,882$ B
Impact fee - Parks 8484003 15,534,954$ C
Impact fee - Streets 8484005 5,248,024$ D
23,570,017$
Expiring Amounts: by Major Area, by Month
202207 (Jul2022)2023Q1 -$ -$ -$ -$ -$
202208 (Aug2022)2023Q1 -$ -$ -$ -$ -$
202209 (Sep2022)2023Q1 -$ -$ -$ -$ -$
202210 (Oct2022)2023Q2 -$ -$ -$ -$ -$
202211 (Nov2022)2023Q2 -$ -$ -$ -$ -$
202212 (Dec2022)2023Q2 -$ -$ -$ -$ -$
202301 (Jan2023)2023Q3 -$ -$ -$ -$ -$
202302 (Feb2023)2023Q3 -$ -$ -$ -$ -$ Current Month
202303 (Mar2023)2023Q3 -$ -$ -$ -$ -$
202304 (Apr2023)2023Q4 -$ -$ -$ -$ -$
202305 (May2023)2023Q4 -$ -$ -$ -$ -$
202306 (Jun2023)2023Q4 -$ -$ -$ -$ -$
202307 (Jul2023)2024Q1 -$ -$ -$ -$ -$
202308 (Aug2023)2024Q1 -$ -$ -$ -$ -$
202309 (Sep2023)2024Q1 -$ -$ -$ -$ -$
202310 (Oct2023)2024Q2 -$ -$ -$ -$ -$
202311 (Nov2023)2024Q2 -$ -$ -$ -$ -$
202312 (Dec2023)2024Q2 -$ -$ -$ -$ -$
202401 (Jan2024)2024Q3 -$ -$ -$ -$ -$
202402 (Feb2024)2024Q3 -$ -$ -$ -$ -$
202403 (Mar2024)2024Q3 -$ -$ -$ -$ -$
202404 (Apr2024)2024Q4 -$ -$ -$ -$ -$
202405 (May2024)2024Q4 -$ -$ -$ -$ -$
202406 (Jun2024)2024Q4 -$ -$ -$ -$ -$
202407 (Jul2024)2025Q1 -$ -$ -$ -$ -$
202408 (Aug2024)2025Q1 -$ -$ -$ -$ -$
202409 (Sep2024)2025Q1 -$ -$ -$ -$ -$
202410 (Oct2024)2025Q2 -$ -$ -$ -$ -$
202411 (Nov2024)2025Q2 -$ -$ -$ -$ -$
202412 (Dec2024)2025Q2 -$ -$ -$ -$ -$
202501 (Jan2025)2025Q3 -$ -$ -$ -$ -$
202502 (Feb2025)2025Q3 -$ -$ -$ -$ -$
202503 (Mar2025)2025Q3 -$ -$ -$ -$ -$
202504 (Apr2025)2025Q4 -$ -$ -$ -$ -$
202505 (May2025)2025Q4 -$ -$ -$ -$ -$
202506 (Jun2025)2025Q4 -$ -$ -$ -$ -$
Total, Currently Expiring through June 2024 0$ -$ -$ -$ 0$
Fiscal
Quarter
E = A + B + C + D
Police Fire Parks Streets
Total
FY
2
0
2
3
Calendar
Month
FY
2
0
2
4
FY
2
0
2
5
Impact Fees Confidential
Data pulled 03/24/2023 AAA BBB CCC DDD = AAA - BBB - CCC
Police Allocation
Budget Amended
Allocation
Encumbrances YTD Expenditures
Allocation
Remaining
Appropriation
Values
Description Cost Center
Sum of Police Allocation
Budget Amended
Sum of Police Allocation
Encumbrances Sum of Police Allocation YTD Expenditures
Sum of Police Allocation
Remaining Appropriation
Public Safety Building Replcmn 8405005 14,068$ 14,068$ -$ 0$
Eastside Precint 8419201 21,639$ -$ -$ 21,639$
Police Impact Fee Refunds 8421102 237,606$ -$ -$ 237,606.45$
Grand Total 273,314$ 14,068$ -$ 259,246$ A
Fire Allocation
Budget Amended
Allocation
Encumbrances YTD Expenditures
Allocation
Remaining
Appropriation
Values
Description Cost Center
Sum of Fire Allocation
Budget Amended
Sum of Fire Allocation
Encumbrances Sum of Fire Allocation YTD Expenditures
Sum of Fire Allocation
Remaining Appropriation
Fire'sConsultant'sContract 8419202 3,079$ 3,021$ -$ 58.00
Grand Total 3,079$ 3,021$ -$ 58.00
B
Parks Allocation
Budget Amended
Allocation
Encumbrances YTD Expenditures
Allocation
Remaining
Appropriation
Values
Description Cost Center
Sum of Parks Allocation
Budget Amended
Sum of Parks Allocation
Encumbrances Sum of Parks Allocation YTD Expenditures
Sum of Parks Allocation
Remaining Appropriation
Waterpark Redevelopment Plan 8421402 16,959$ 1,705$ 15,254$ -$
JR Boat Ram 8420144 3,337$ -$ 3,337$ -$
Fisher Carriage House 8420130 261,187$ -$ 261,187$ -$
Park'sConsultant'sContract 8419204 2,638$ 2,596$ -$ 42$
Cwide Dog Lease Imp 8418002 23,262$ 23,000$ -$ 262$
Rosewood Dog Park 8417013 1,056$ -$ -$ 1,056$
Jordan R 3 Creeks Confluence 8417018 1,570$ -$ -$ 1,570$
Jordan R Trail Land Acquisitn 8417017 2,946$ -$ -$ 2,946$
9line park 8416005 16,495$ 855$ 11,007$ 4,633$
ImperialParkShadeAcct'g 8419103 6,398$ -$ -$ 6,398$
Rich Prk Comm Garden 8420138 12,431$ 4,328$ -$ 8,103$
Redwood Meadows Park Dev 8417014 9,350$ -$ -$ 9,350$
FY Trailhead Prop Acquisition 8421403 275,000$ -$ 253,170$ 21,830$
Fisher House Exploration Ctr 8421401 455,030$ 232,995$ 199,029$ 23,006$
IF Prop Acquisition 3 Creeks 8420406 56,109$ -$ 1,302$ 54,808$
Marmalade Park Block Phase II 8417011 1,042,694$ 583,842$ 381,893$ 76,959$
Cnty #1 Match 3 Creek Confluen 8420424 254,159$ 133,125$ 8,351$ 112,683$
FY20 Bridge to Backman 8420430 156,565$ 12,273$ 26,565$ 117,728$
UTGov Ph2 Foothill Trails 8420420 122,281$ -$ 775$ 121,507$ C
9Line Orchard 8420136 156,827$ 7,983$ 6,232$ 142,612$
Three Creeks West Bank NewPark 8422403 150,736$ -$ -$ 150,736$
Historic Renovation AllenParK 8422410 420,000$ 216,397$ 43,979$ 159,624$
Rose Park Neighborhood Center 8423403 160,819$ -$ -$ 160,819$
RAC Playground with ShadeSails 8422415 179,323$ -$ 117$ 179,206$
Bridge to Backman 8418005 266,306$ 10,285$ 4,262$ 251,758$
900 S River Park Soccer Field 8423406 287,848$ -$ -$ 287,848$
Lighting NE Baseball Field 8423409 300,000$ -$ -$ 300,000$
SLC Foothills Land Acquisition 8422413 319,139$ -$ -$ 319,139$
Parley's Trail Design & Constr 8417012 327,678$ -$ -$ 327,678$
Jordan Prk Event Grounds 8420134 428,074$ 9,343$ 19,114$ 399,617$
Wasatch Hollow Improvements 8420142 446,825$ 21,823$ 11,177$ 413,824$
Jordan Park Pedestrian Pathway 8422414 510,000$ 15,813$ 28,549$ 465,638$
Gateway Triangle Property Park 8423408 499,563$ -$ -$ 499,563$
RAC Playground Phase II 8423405 521,564$ -$ -$ 521,564$
Green loop 200 E Design 8422408 608,490$ 68,606$ 7,508$ 532,375$
Mem. Tree Grove Design & Infra 8423407 867,962$ -$ 1,016$ 866,946$
SLCFoothillsTrailheadDevelpmnt 8422412 1,304,682$ 71,182$ 17,200$ 1,216,300$
GlendaleWtrprk MstrPln&Rehab 8422406 3,177,849$ 1,007,176$ 392,984$ 1,777,688$
Pioneer Park 8419150 3,149,123$ 60,589$ 64,710$ 3,023,825$
Glendale Regional Park Phase 1 8423450 4,350,000$ -$ -$ 4,350,000$
Grand Total 21,852,274$ 2,483,916$ 2,458,717$ 16,909,641$
Streets Allocation
Budget Amended
Allocation
Encumbrances YTD Expenditures
Allocation
Remaining
Appropriation
Values
Description Cost Center
Sum of Street Allocation
Budget Amended
Sum of Street Allocation
Encumbrances Sum of Street Allocation YTD Expenditures
Sum of Street Allocation
Remaining Appropriation
900 S Signal Improvements IF 8422615 70,000$ -$ 70,000$ -$
500/700 S Street Reconstructio 8412001 15,026$ 11,703$ 3,323$ -$
9 Line Central Ninth 8418011 63,955$ -$ 63,955$ -$
Local Link Construction IF 8422606 50,000$ -$ 50,000$ -$
Trans Safety Improvements 8419007 13,473$ 13,473$ -$ -$
Corridor Transformations IF 8422608 25,398$ 25,398$ -$ -$
Trans Master Plan 8419006 13,000$ 13,000$ -$ -$
Gladiola Street 8406001 16,109$ 12,925$ 940$ 2,244$
Urban Trails FY22 IF 8422619 6,500$ -$ -$ 6,500$
Transportatn Safety Imprvmt IF 8422620 44,400$ -$ 37,016$ 7,384$
Street'sConsultant'sContract 8419203 29,817$ 17,442$ -$ 12,374$
Complete Street Enhancements 8420120 35,392$ -$ 16,693$ 18,699$
500 to 700 S 8418016 22,744$ -$ -$ 22,744$ D
900 South 9Line RR Cross IF 8422604 28,000$ -$ -$ 28,000$
Transp Safety Improvements 8420110 58,780$ 17,300$ 8,324$ 33,156$
1700S Corridor Transfrmtn IF 8422622 35,300$ -$ -$ 35,300$
200S TransitCmpltStrtSuppl IF 8422602 37,422$ -$ -$ 37,422$
300 N Complete Street Recons I 8423606 40,000$ -$ -$ 40,000$
1300 S Bicycle Bypass (pedestr 8416004 42,833$ -$ -$ 42,833$
400 South Viaduct Trail IF 8422611 90,000$ -$ -$ 90,000$
Neighborhood Byways IF 8422614 104,500$ -$ -$ 104,500$
Transit Cap-Freq Trans Routes 8423608 110,000$ -$ -$ 110,000$
TransportationSafetyImprov IF 8421500 281,586$ 125,893$ 34,989$ 120,704$
Indiana Ave/900 S Rehab Design 8412002 124,593$ -$ -$ 124,593$
Bikeway Urban Trails 8418003 181,846$ -$ -$ 181,846$
200 S Recon Trans Corridor IF 8423602 252,000$ -$ -$ 252,000$
Street Improve Reconstruc 20 8420125 780,182$ 11,688$ 385,185$ 383,309$
IF Complete Street Enhancement 8421502 625,000$ -$ -$ 625,000$
Traffic Signal Upgrades 8419008 450$ -$ -$ 450$
Traffic Signal Upgrades 8421501 836,736$ 55,846$ 43,283$ 737,607$
700 South Phase 7 IF 8423305 1,120,000$ -$ -$ 1,120,000$
1300 East Reconstruction 8423625 3,111,335$ 995,636$ 144,072$ 1,971,627$
Grand Total 8,267,668$ 1,301,595$ 857,780$ 6,108,293$
Total 30,396,335$ 3,802,601$ 3,316,497$ 23,277,237$
E = A + B + C + D
TRUE TRUE TRUE TRUE
$1,725,882
UnAllocated
Budget
Amount
8484001
1,061,156$
8484002
23,570,017$
8484003
8484005
15,534,954$
5,248,024$
City Council Statement – May 9, 2023 Work Session
Read by City Council Chair, Darin Mano
As a body, we would like to address the recent news regarding Councilwoman Amy Fowler and the
allegations against her. We very much appreciate her statement during our Council meeting earlier
today.
We believe elected officials are accountable to the public they serve. Councilwoman Fowler is taking
immediate actions, including stepping down from her leadership role as Redevelopment Agency (RDA)
Vice Chair for the year and stepping back from some of her public duties for 30 days as a Councilwoman
to focus on this personal matter.
We believe it is important to recognize that, as humans, Council Members make mistakes and errors.
We also believe in extending compassion and grace to all individuals, including our Council colleagues, at
times like this.
We want to be clear that, as the City Council, we consider the safety and well-being of the public our
utmost priority. During this process, we remain committed to transparency and serving the residents of
Salt Lake City to the best of our ability.
District 7 constituents can still count on support and representation from Councilwoman Fowler and the
full Council during her absence. As always, residents may reach the Council Office at 801-535-7600 or
council.comments@slcgov.com.
We will continue to inform the public of any developments regarding this matter.
SALT LAKE CITY CORPORATION
SWORN STATEMENT SUPPORTING CLOSURE OF MEETING
I, Darin Mano, acted as the presiding member of the Salt Lake Council, which met on Tuesday May 9, 2023 in an
electronic meeting pursuant to Salt Lake City Proclamation.
Appropriate notice was given of the Council's meeting as required by §52-4-202.
A quorum of the Council was present at the meeting and voted by at least a two-thirds vote, as detailed in the minutes of
the open meeting, to close a portion of the meeting to discuss the following:
52-4-205(l)(a) discussion of the character, professional competence, or physical or mental health ofanindividual;
52 -4-205(1)(b) strategy sessions to discuss collective bargaining;
52-4-205(l)(c) strategy sessions to discuss pending or reasonably imminent litigation;
52-4-205(l)(d) strategy sessions to discuss the purchase, exchange, or lease of real property, including
any form of a water right or water shares, if public discussion of the transaction would: (i) disclose the
appraisal or estimated value of the property under consideration; or (ii) prevent the public body from
completing the transaction on the best possible terms;
52-4-205(l)(e) strategy sessions to discuss the sale of real property, including any form of a water right
or water shares if: (i) public discussion of the transaction would: (A) disclose the appraisal or estimated
value of the property under consideration; or (B) prevent the public body from completing the transaction
on the best possible terms; (ii) if the public body previously gave public notice that the property would be
offered for sale; and (iii) the terms of the sale are publicly disclosed before the public body approves the
sale;
52-4-205(1)(f) discussion regarding deployment of security personnel, devices, or systems; and
52-4-205(1)(g) investigative proceedings regarding allegations of criminal misconduct.
A Closed Meeting may also be held for Attorney-Client matters that are privileged pursuant to Utah Code
78B-1-137, and for other lawful purposes that satisfy the pertinent requirements of the Utah OpenandPublicMeetingsAct.
Other, described as follows: _____________________________________________________________
The content of the closed portion of the Council meeting was restricted to a discussion of the matter(s) for which the
meeting was closed.
With regard to the closed meeting, the following was publicly announced and recorded, and entered on the minutes of the
open meeting at which the closed meeting was approved:
a)the reason or reasons for holding the closed meeting;
b)the location where the closed meeting will be held; and
c)the vote of each member of the public body either for or against the motion to hold the closed meeting.
The recording and any minutes of the closed meeting will include:
a)the date, time, and place of the meeting;
b)the names of members Present and Absent; and
c)the names of all others present except where such disclosure would infringe on the confidentiality
necessary to fulfill the original purpose of closing the meeting.
Pursuant to §52-4-206(6), a sworn statement is required to close a meeting under §52-4-205(1)(a) or (f), but a record by
electronic recording or detailed minutes is not required; and Pursuant to §52-4-206(1), a record by electronic recording
and/or detailed written minutes is required for a meeting closed under §52-4-205(1)(b),(c),(d),(e),and (g):
A record was not made.
A record was made by: : Electronic recording Detailed written minutes
I hereby swear or affirm under penalty of perjury that the above information is true and correct to the best of my
knowledge.
Presiding Member Date of Signature
X
X
X
May 12, 2023
A - Work Session May 9th - Sworn Statement
Final Audit Report 2023-05-12
Created:2023-05-10
By:Thais Stewart (thais.stewart@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAALDbVIcyrqZzqnqYlBmVKxxXS30DB5LxQ
A - Work Session May 9th - Sworn Statement" History
Document created by Thais Stewart (thais.stewart@slcgov.com)
2023-05-10 - 2:43:04 AM GMT
Document emailed to Darin Mano (darin.mano@slcgov.com) for signature
2023-05-10 - 2:48:55 AM GMT
Email viewed by Darin Mano (darin.mano@slcgov.com)
2023-05-10 - 4:15:29 AM GMT
Email viewed by Darin Mano (darin.mano@slcgov.com)
2023-05-11 - 4:10:51 AM GMT
Email viewed by Darin Mano (darin.mano@slcgov.com)
2023-05-12 - 4:31:09 AM GMT
Document e-signed by Darin Mano (darin.mano@slcgov.com)
Signature Date: 2023-05-12 - 4:15:40 PM GMT - Time Source: server
Agreement completed.
2023-05-12 - 4:15:40 PM GMT
SALT LAKE CITY CORPORATION
SWORN STATEMENT SUPPORTING CLOSURE OF MEETING
I, Darin Mano, acted as the presiding member of the Salt Lake Council, which met on Tuesday May 9, 2023 in an
electronic meeting pursuant to Salt Lake City Proclamation.
Appropriate notice was given of the Council's meeting as required by §52-4-202.
A quorum of the Council was present at the meeting and voted by at least a two-thirds vote, as detailed in the minutes of
the open meeting, to close a portion of the meeting to discuss the following:
52-4-205(l)(a) discussion of the character, professional competence, or physical or mental health ofanindividual;
52 -4-205(1)(b) strategy sessions to discuss collective bargaining;
52-4-205(l)(c) strategy sessions to discuss pending or reasonably imminent litigation;
52-4-205(l)(d) strategy sessions to discuss the purchase, exchange, or lease of real property, including
any form of a water right or water shares, if public discussion of the transaction would: (i) disclose the
appraisal or estimated value of the property under consideration; or (ii) prevent the public body from
completing the transaction on the best possible terms;
52-4-205(l)(e) strategy sessions to discuss the sale of real property, including any form of a water right
or water shares if: (i) public discussion of the transaction would: (A) disclose the appraisal or estimated
value of the property under consideration; or (B) prevent the public body from completing the transaction
on the best possible terms; (ii) if the public body previously gave public notice that the property would be
offered for sale; and (iii) the terms of the sale are publicly disclosed before the public body approves the
sale;
52-4-205(1)(f) discussion regarding deployment of security personnel, devices, or systems; and
52-4-205(1)(g) investigative proceedings regarding allegations of criminal misconduct.
A Closed Meeting may also be held for Attorney-Client matters that are privileged pursuant to Utah Code
78B-1-137, and for other lawful purposes that satisfy the pertinent requirements of the Utah OpenandPublicMeetingsAct.
Other, described as follows: _____________________________________________________________
The content of the closed portion of the Council meeting was restricted to a discussion of the matter(s) for which the
meeting was closed.
With regard to the closed meeting, the following was publicly announced and recorded, and entered on the minutes of the
open meeting at which the closed meeting was approved:
a)the reason or reasons for holding the closed meeting;
b)the location where the closed meeting will be held; and
c)the vote of each member of the public body either for or against the motion to hold the closed meeting.
The recording and any minutes of the closed meeting will include:
a)the date, time, and place of the meeting;
b)the names of members Present and Absent; and
c)the names of all others present except where such disclosure would infringe on the confidentiality
necessary to fulfill the original purpose of closing the meeting.
Pursuant to §52-4-206(6), a sworn statement is required to close a meeting under §52-4-205(1)(a) or (f), but a record by
electronic recording or detailed minutes is not required; and Pursuant to §52-4-206(1), a record by electronic recording
and/or detailed written minutes is required for a meeting closed under §52-4-205(1)(b),(c),(d),(e),and (g):
A record was not made.
A record was made by: : Electronic recording Detailed written minutes
I hereby swear or affirm under penalty of perjury that the above information is true and correct to the best of my
knowledge.
Presiding Member Date of Signature
X
X
May 12, 2023
x
B - Work Session May 9th - Sworn Statement
Final Audit Report 2023-05-12
Created:2023-05-10
By:Thais Stewart (thais.stewart@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAIK58F6tBB4q1buMfNVYJS82T__Pv4cPd
B - Work Session May 9th - Sworn Statement" History
Document created by Thais Stewart (thais.stewart@slcgov.com)
2023-05-10 - 2:49:05 AM GMT
Document emailed to Darin Mano (darin.mano@slcgov.com) for signature
2023-05-10 - 2:50:11 AM GMT
Email viewed by Darin Mano (darin.mano@slcgov.com)
2023-05-10 - 4:15:29 AM GMT
Email viewed by Darin Mano (darin.mano@slcgov.com)
2023-05-11 - 4:10:51 AM GMT
Email viewed by Darin Mano (darin.mano@slcgov.com)
2023-05-12 - 4:31:09 AM GMT
Document e-signed by Darin Mano (darin.mano@slcgov.com)
Signature Date: 2023-05-12 - 4:15:24 PM GMT - Time Source: server
Agreement completed.
2023-05-12 - 4:15:24 PM GMT