Transmittal - 12/15/2021
MARY BETH THOMPSON
Chief Financial Officer
ERIN MENDENHALL
Mayor
DEPARTMENT OF FINANCE
451 SOUTH STATE STREET, ROOM 245
SALT LAKE CITY, UTAH 84114
TEL 801-535-6403
CITY COUNCIL TRANSMITTAL
________________________ Date Received: ___________________
Lisa Shaffer, Chief Administrative Officer Date sent to Council: ______________
_____________________________________________________________________________
TO: Salt Lake City Council DATE: December 14, 2021
Amy Fowler, Chair
FROM: Mary Beth Thompson, Chief Financial Officer___________________________________
SUBJECT: Amendatory Resolution Stating and Clarifying that City’s Municipal Transient Room Tax
under Utah Code Title 59, Chapter 12, Part 3A (the “Innkeepers Tax”) is Pledged as Source of
Repayment for SIB Loan Instead of Sales Tax
STAFF CONTACT: Marina Scott, City Treasurer 801-535-6565
DOCUMENT TYPE: Resolution
RECOMMENDATION: That the City Council adopt an Amendatory Resolution on January 11, 2022
deleting any pledge of sales tax revenue as a revenue source to repay the State Infrastructure
Bank (SIB) loan and instead to pledge the City’s Innkeepers Tax as a revenue source to repay the
SIB loan.
BUDGET IMPACT: None at this time.
BACKGROUND/DISCUSSION: In the loan agreement the City pledged the annual distribution of
$1,100,000 authorized by H.B. 244 (2021). Utah Code section 72-2-204 requires the City to, also,
pledge a revenue source controlled by the City. Resolution No. 31 of 2021 said that the City was
also pledging its sales tax revenue; however, the City has determined that it is better to pledge its
Innkeepers Tax as a revenue source to repay the SIB loan and UDOT has agreed to this in the Loan
Agreement.
PUBLIC PROCESS: N/A
EXHIBITS:
1. Agenda and Motion Language
2. Amending Resolution
Lisa Shaffer (Dec 15, 2021 15:29 MST)12/15/2021
12/15/2021
Suggested Agenda Language relating to the amendatory resolution for the SIB
Loan from UDOT, to be considered by the City Council at its meeting on January
11, 2022:
Resolution: Amending Resolution No. 31 of 2021 relating to a SIB Loan to the City
from UDOT
Consideration of a resolution amending Resolution No. 31 of 2021, relating to a
SIB loan to the City from UDOT, to state and clarify that the loan will be payable
from the City’s Innkeepers Tax rather than from sales tax revenue; and providing
for related matters.
Staff Recommendation: Adopt
Suggested Motion Language is as follows:
I move that the City Council adopt the resolution amending Resolution No. 31 of
2021 relating to a SIB loan to the City from UDOT.
1
RESOLUTION NO. ____ OF 2022
(Amending Resolution No. 31 of 2021 that Authorized a Utah State Infrastructure Bank Loan for
a Neighborhood Parking Structure Located between 400 West and 500 West and 600 South and
700 South)
WHEREAS, Utah Code section 72-2-202 created a revolving fund called the Utah State
Infrastructure Bank Fund (the “SIB Fund”) and authorized the Utah Department of Transportation
(UDOT) to use moneys in the SIB Fund to make infrastructure loans to cities for transportation
projects, including the construction or improvement of parking facilities; and
WHEREAS, Salt Lake City, Utah (the “City) applied for a $7,000,000 infrastructure loan
to finance a portion of the cost of a neighborhood parking structure, a 926-stall garage, located
between 400 West and 500 West and 600 South and 700 South in Salt Lake City, Utah (the
“Project”) and on November 19, 2021, the State Transportation Commission approved that
$7,000,000 loan (the “SIB Loan”) to the City for the Project; and
WHEREAS, in Resolution No. 31 of 2021 the City Council of Salt Lake City, Utah (the
“City Council”), authorized the City to accept the SIB Loan and approved of the City entering into
a loan agreement (the “Loan Agreement”) with UDOT with respect to the SIB Loan; and
WHEREAS, on December 6, 2021, the City and UDOT entered into the Loan Agreement;
and
WHEREAS, in the Loan Agreement the City pledged to the repayment of the SIB Loan
the funds allocated to it by H.B. 244 (2021), consisting of (1) a one-time distribution to the City
of $1,100,000 for fiscal year 2020-2021 and (2) an annual distribution to the City of $1,100,000
for the next 15 years, beginning on or after July 1, 2021; and
WHEREAS, Utah Code section 72-2-204 requires that the City also pledge to the
repayment of the SIB Loan a revenue course controlled by the City, and in Resolution No. 31 of
2021 a recital said that the City was also pledging its sales tax revenue; and
WHEREAS, the City has determined that it is better that the City pledge its Innkeepers Tax
as a revenue source to repay the SIB loan rather than its sales tax revenue, and UDOT agreed in
the Loan Agreement to the City pledging its Municipal Transient Room Tax under Utah Code Title
59, Chapter 12, Part 3A (the “Innkeepers Tax”) rather than its sales tax revenue as a revenue source
to repay the SIB loan; and
WHEREAS, the City Council desires to amend Resolution No. 31 of 2021 to state and
clarify that the City is pledging its Innkeepers Tax rather than its sales tax revenue as a revenue
source to repay the SIB loan;
NOW, THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, as
follows:
2
Section 1. Resolution No. 31 of 2021 is hereby amended to delete any pledge of sales tax
revenue as a revenue source to repay the SIB loan and instead to pledge the City’s Innkeepers Tax
as a revenue source to repay the SIB loan.
Section 2. This Resolution shall take effect immediately upon its adoption.
Passed by the City Council of Salt Lake City, Utah on__________, 2022.
SALT LAKE CITY COUNCIL
By _______________________________
Chairperson
ATTEST:
______________________________
City Recorder
Salt Lake City Attorney’s Office
Approved As To Form
___________________________
Boyd Ferguson
Signature:
Email:Garrett.Danielson@slcgov.com