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HomeMy WebLinkAboutCouncil Provided Information - 2/17/2025COUNCIL STAFF REPORT CITY COUNCIL of SALT LAKE CITY TO:City Council Members FROM:Allison Rowland, Senior Policy Analyst DATE:February 3, 2026 RE: RESOLUTION: SECOND ISSUANCE OF GENERAL OBLIGATION BOND FOR PARKS, TRAILS AND OPEN SPACE IMPROVEMENTS ISSUE AT-A-GLANCE The Administration proposes to issue the second tranche of the $85 million Parks, Trails, and Open Space General Obligation (GO) Bond, approved by voters in 2022. The amount of this tranche would be up to $51 million, which the Department of Public Lands (DPL) has indicated would fund nearly all of the planned projects remaining. Approximately $9.2 million would be left for a third and final tranche, 11% of the total $85 million approved. DPL indicates that this third tranche may be requested in 2027. The Council indicated its support for issuing the second tranche in a straw poll on November 25, 2025, based on descriptions of projects and activities to be funded with bond proceeds. The funds would be available to spend immediately following the bond sale in April or May 2026. Residents and businesses would begin to pay an increased level of property tax for bond repayment only after this issuance is approved by the Council. The current plan calls for the Bonds to be sold on April 7, 2026. Goal of the briefing: Receive and discuss information in preparation for a vote on issuing the second tranche of the Parks, Trails, and Open Space GO Bond, of up to $51 million. ADDITIONAL & BACKGROUND INFORMATION A.Projects and budget amounts straw polled by the Council. During the Work Session on November 25, 2026, the Council straw polled their preferences for second tranche project funding, selecting Scenario 3 as it was described by the Administration. The projects included in that scenario, which total an estimated $49,336,400, are shown below. Glendale Park Phase 2 Construction $23,350,000 Item Schedule: Allen Park Phase 1 Construction $3,650,000 Fleet Block Public Open Space $5,400,000 Fairmont Park $5,850,000 Warm Springs & North Gateway Parks Construction $1,350,000 Sunnyside Park Construction $675,000 Jefferson Park Construction $675,000 Cottonwood Park Construction $675,000 Jordan River Corridor $2,400,000 Public Art Commissions at Glendale, Fleet Block and Warm Springs/North Gateway Parks $441,000 FTE salaries, benefits, and operational costs, plus a reclassification of one Associate Landscape Architect II position in DPL to a Senior Landscape Architect position $870,400 Program management $1,000,000 Contingency $3,000,000 TOTAL $49,336,400 B.Potential Third Tranche. The transmittal indicates that the second tranche of the GO Bond would be “up to $51 million.” If this is spent in the second tranche, there would be $9,235,000 remaining for a third tranche, not the $11,003,600 listed in the most recent transmittal. If this tranche is approved in 2027, DPL indicated that construction timelines would likely be pushed to 2028 or 2029, and there would be fewer amenities due to increased costs. This tranche would be used to fund: Peace Labyrinth Construction Jordan River Remaining Projects Construction All Remaining Contingency All Remaining Personnel Costs (Salaries, Benefits, Operations) C.Proposed Staffing Changes. In its November 25, 2025, transmittal, the Public Lands Department proposed two staffing changes for existing full-time employees (FTEs) working on this project As part of the second tranche of the GO bond. That description appears to be different than the corresponding description in the January 23, 2026, transmittal, which is reproduced in Attachment C1, below. 1.Reclassification to Senior Landscape Architect. The Department of Public Lands requests that the Council approve a reclassification from Associate Landscape Architect II (Grade 29) to Senior Landscape Architect (Grade 34) to reflect the qualifications and experience of the project manager hired in this role. According to DPL, “Further reclassification would align their qualifications, job description, and pay. We wish to retain these time-limited staff for as much of the remainder of the Parks GO Bond as possible.” The costs included in the proposed second tranche total assume these changes are approved by the Council. 2.Funding Increase for Three FTEs. Since July 1, 2023, the salaries, benefits, and operational costs for three full-time employees who work exclusively on Parks GO Bond projects have been reimbursed with bond funds at the beginning of the following fiscal year. However, the estimates for these personnel costs were developed in early 2023 and were initially very conservative. Some savings in the first tranche will continue to fund their personnel costs into FY27, and the second tranche will fund the remainder of that fiscal year and the entirety of FY28. The Department proposes that an estimated $296,000 balance from the first tranche go toward reducing the second tranche’s FY27 and FY28 salary, benefits, and operation costs for these employees. ATTACHMENT Attachment C1. “Salt Lake City Parks, Trails, and Open Space Bond 2nd Issuance Projects. Attachment C1. “Salt Lake City Parks, Trails, and Open Space Bond 2nd Issuance Projects. Reproduced from Transmittal of January 23, 2026. GENERAL OBLIGATION BOND, SERIES 2026—PARKS, TRAILS, AND OPEN SPACE OVERVIEW On November 8, 2022, voters within Salt Lake City authorized the City to issue and sell GO bonds in an amount not to exceed $85 million for the purpose of acquiring, improving, renovating, and upgrading various parks, trails, open space, and related facilities and recreational amenities. PROPOSED ISSUANCE Series Par Project Proceeds 2023 $24,765,000 $24,660,000 2026 $51,000,000* *preliminary, subject to change $49,336,400 Salt Lake City Parks, Trails, and Open Space Bond 2nd Issuance Projects ESTIMATED CONSTRUCTION YEAR ITEM SECOND TRANCHE AMOUNT % of ITEM’S TOTAL BOND FUNDING 2027-2028 Glendale Park Phase 2 $23,350,000 86.5% 2026-2028 Allen Park $3,650,000 81.1% 2027-2029 Public Open Space at Fleet Block $5,400,000 90% 2027-2029 Fairmont Park $5,850,000 90% Variable (2026-2031) Reimagine Neighborhood Parks, Trails, or Open Spaces (Fairmont, Jefferson, Sunnyside, Warm Springs/North Gateway, Cottonwood) $3,375,000 34% 2027-2029 Jordan River Corridor $2,400,000 26.7% N/A Contingencies/Program Management $4,000,000 25% Variable (2026-2029) Art Allowance (Glendale, Warm Springs/North Gateway, Fleet Block) $441,000 42.6% N/A Salaries, Benefits and Operational costs for 3 FTEs for FY27 and FY28 (2 Public Lands staff, 1 ACM/Public Services) $870,400 19% TOTAL REQUEST $49,336,400 58% of $85,000,000 total PROPOSED FINANCING SCHEDULE Tuesday, February 17 City Council Meeting –Resolution Adoption Week of March 9 Meet with Rating Agencies Week of March 23-30 Receive Ratings Post the Preliminary Official Statement Tuesday, April 7 Bond Sale Tuesday, April 28 Closing Series 2026 Highlights Asking for authorization to issue up to $51 million of general obligation revenue bonds. Assumed interest rate is 4.97%, based on current market conditions with a not to exceed rate of 6.5%. Final maturity not greater than 20 years. •QUESTIONS