033 of 2021 - General Obligation Bonds, Series 2021 (Street Reconstruction)
33 of 2021 Delegating General Obligation Bond.docx
8710600/RDB/mo
SALT LAKE CITY, UTAH
Resolution No. 33 of 2021
Authorizing the Issuance and Sale of up to
$23,600,000
General Obligation Bonds, Series 2021
Adopted September 21, 2021
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TABLE OF CONTENTS
SECTION HEADING PAGE
ARTICLE I DEFINITIONS .................................................................................................2
Section 101. Definitions..............................................................................................2
Section 102. Rules of Construction ............................................................................5
Section 103. Authority for Bond Resolution ..............................................................5
ARTICLE II AUTHORIZATION, TERMS AND ISSUANCE OF BONDS .....................................5
Section 201. Authorization of Bonds, Principal Amount, Designation and Series ....5
Section 202. Purpose ...................................................................................................6
Section 203. Issue Date ...............................................................................................6
Section 204. Bond Details; Delegation of Authority ..................................................6
Section 205. Denominations and Numbers .................................................................7
Section 206. Paying Agent and Bond Registrar..........................................................7
Section 207. Redemption and Redemption Price; Notice of Redemption ..................8
Section 208. Issuance, Sale and Delivery of Bonds..................................................10
Section 209. Execution of Bonds ..............................................................................10
Section 210. Delivery of the Bonds; Application of Proceeds .................................11
Section 211. Disclosure Agreements ........................................................................11
Section 212. Further Authority .................................................................................11
Section 213. Establishment of Accounts ..................................................................12
ARTICLE III TRANSFER AND EXCHANGE OF BONDS; BOND REGISTRAR .........................12
Section 301. Transfer of Bonds ................................................................................12
Section 302. Exchange of Bonds ..............................................................................13
Section 303. Bond Registration Books .....................................................................13
Section 304. List of Bondowners ..............................................................................13
Section 305. Duties of Bond Registrar .....................................................................13
ARTICLE IV BOOK-ENTRY SYSTEM; LIMITED OBLIGATION OF ISSUER; LETTER OF
REPRESENTATIONS ......................................................................................14
Section 401. Book-Entry System; Limited Obligation of Issuer ..............................14
Section 402. Letter of Representations .....................................................................15
Section 403. Transfers Outside Book-Entry System ................................................15
Section 404. Payments to Cede .................................................................................15
ARTICLE V COVENANTS AND UNDERTAKINGS ..............................................................15
Section 501. Covenants of Issuer ..............................................................................15
Section 502. Levy of Taxes; Bond Account .............................................................15
Section 503. Arbitrage Covenant and Covenant to Maintain Tax-Exemption .........16
ARTICLE VI FORM OF BONDS .........................................................................................18
SECTION HEADING PAGE
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Section 601. Form of Bonds .....................................................................................18
ARTICLE VII MISCELLANEOUS ........................................................................................25
Section 701. Final Official Statement .......................................................................25
Section 702. Preliminary Official Statement Deemed Final .....................................25
Section 703. Notice of Bonds to be Issued ...............................................................25
Section 704. Ratification ...........................................................................................25
Section 705. Severability ..........................................................................................26
Section 706. Conflict ................................................................................................26
Section 707. Captions ...............................................................................................26
Section 708. Effective Date ......................................................................................26
EXHIBIT 1 — Form of Continuing Disclosure Undertaking
EXHIBIT 2 — Form of Official Statement, including Official Notice of Bond Sale
EXHIBIT 3 — Form of Certificate of Determination
EXHIBIT 4 — Notice of Bonds to be Issued
EXHIBIT 5 — Form of Dissemination Agency Agreement
Delegating Bond Resolution
RESOLUTION NO. 33 OF 2021
A Resolution authorizing the issuance of up to $23,600,000 general
obligation bonds of Salt Lake City, Utah; fixing the maximum
aggregate principal amount of the Bonds, the maximum number of
years over which the Bonds may mature, the maximum interest rate
that the Bonds may bear and the maximum discount from par at
which the Bonds may be sold; providing for the levy of taxes to pay
principal of and interest on the Bonds; authorizing the circulation of
an Official Statement; giving authority to certain officers to approve
the final terms and provisions of the Bonds within the parameters
set forth herein; and providing for related matters.
*** *** ***
WHEREAS, at the Bond Election, the issuance of $87,000,000 principal amount of general
obligation bonds was authorized for the purpose of, among other things, raising money for
improving various streets and roads throughout the Issuer and related infrastructure improvements;
WHEREAS, the Issuer has previously issued $35,285,000 of the bonds voted at the Bond
Election and the Issuer has determined to authorize the issuance and sale at this time of up to
$23,600,000 principal amount of the bonds voted at the Bond Election;
WHEREAS, (a) if the Bonds are sold pursuant to a competitive bid a notice inviting
electronic bids for the purchase of the Bonds will be advertised by electronic dissemination
through the PARITY® electronic bid submission system and (b) if the Bonds are sold pursuant to
a negotiated sale or a direct purchase, a formal or informal request for proposals will be distributed;
WHEREAS, in the opinion of the Issuer, it is in the best interests of the Issuer that (a) the
Designated Officers be authorized to (i) determine the method of sale for the Bonds, which may
be by competitive sale, negotiated underwriting or direct purchase; (ii) accept or reject the bids or
proposals received for the Bonds and determine the best bid or proposal received that conforms to
the parameters, deadlines and procedures set forth herein and in the applicable sale document
prepared in connection with the solicitation of bids or proposals for the Bonds; and (iii) approve
the final principal amount, maturity amounts, interest rates, dates of maturity and other terms and
provisions relating to the Bonds and to execute the Certificate of Determination containing such
terms and provisions and (b) if necessary, the Mayor be authorized to execute the Official
Statement with respect to the Bonds;
WHEREAS, based upon current municipal bond market conditions related to low interest
rates, the Issuer believes it will receive more bids for the purchase of the Bonds and the most
favorable cost of capital and is therefore in the best interests of the Issuer if the Issuer does not
restrict the amount of premium bidders may pay for the Bonds;
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WHEREAS, Section 11-14-316 of the Utah Code provides for the publication of a Notice of
Bonds to be Issued, and the Issuer desires to cause the publication of such a notice at this time with
respect to the Bonds; and
WHEREAS, the Issuer deems it necessary and advisable that it take such action as may be
required under applicable provisions of federal tax law to authorize and issue the Bonds to finance
the cost of the project to be financed with the proceeds of the Bonds;
NOW, THEREFORE, Be It Resolved by the City Council of Salt Lake City, Utah, as follows:
ARTICLE I
DEFINITIONS
Section 101. Definitions. As used in this Bond Resolution (including the preambles
hereto), unless the context shall otherwise require, the following terms shall have the following
meanings:
“Act” means, collectively, the Local Government Bonding Act, Chapter 14 of Title 11 of
the Utah Code and the Registered Public Obligations Act, Chapter 7 of Title 15 of the Utah Code.
“Bond Account” means the Bond Account established in Section 213 hereof.
“Bond Counsel” means Chapman and Cutler LLP or another attorney or a firm of attorneys
of nationally recognized standing in matters pertaining to the tax-exempt status of interest on
obligations issued by states and their political subdivisions, duly admitted to the practice of law
before the highest court of any state of the United States.
“Bond Election” means the special bond election duly and lawfully called and held in the
Issuer on November 6, 2018, at which the issuance and sale by the Issuer of $87,000,000 principal
amount of general obligation bonds was authorized for the purpose of, among other things, raising
money for paying all or a portion of the costs of improving various streets and roads throughout
the Issuer and related infrastructure improvements, the results of which election were declared by
the City Council, sitting as a Board of Canvassers, on November 20, 2018.
“Bond Registrar” means each Person appointed by the Issuer as bond registrar and agent
for the transfer, exchange and authentication of the Bonds. Pursuant to Section 206 hereof, the
initial Bond Registrar is U.S. Bank National Association of Salt Lake City, Utah.
“Bond Resolution” means this Resolution of the Issuer adopted on September 21, 2021,
authorizing the issuance and sale of the Bonds.
“Bondowner” or “owner” means the registered owner of any Bond as shown in the
registration books of the Issuer kept by the Bond Registrar for such purpose.
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“Bonds” means the Issuer’s General Obligation Bonds, Series 2021, authorized by the
Bond Resolution.
“Cede” means Cede & Co., the nominee of DTC, and any successor nominee of DTC with
respect to the Bonds pursuant to Section 401 hereof.
“Certificate of Determination” means the Certificate of Determination, a form of which is
attached hereto as Exhibit 3, of the Designated Officers delivered pursuant to Article II of this
Bond Resolution, setting forth certain terms and provisions of the Bonds.
“City Council” means the City Council of the City, as the governing body of the Issuer.
“City Recorder” means the City Recorder or any Deputy City Recorder of the Issuer.
“City Treasurer” means the City Treasurer of the Issuer or, in her absence or disability,
the Deputy City Treasurer or such other official as shall be duly authorized to act in her stead.
“Closing Date” means the date of the initial issuance of the Bonds.
“Code” means the Internal Revenue Code of 1986, as amended.
“Continuing Disclosure Undertaking” means the Continuing Disclosure Agreement of the
Issuer, in substantially the form attached hereto as Exhibit 1, dated the Closing Date, for the
purpose of providing continuing disclosure information under Rule 15c2-12 adopted by the
Securities and Exchange Commission under the Securities Exchange Act of 1934, as may be
amended from time to time.
“Depository Account” means the Depository Account established in Section 213 hereof.
“Designated Officers” means (a) the (i) Mayor of the Issuer; or (ii) in the event of the
absence or incapacity of the Mayor, the Mayor’s Chief of Staff; or (iii) in the event of the absence
or incapacity of both the Mayor and the Mayor’s Chief of Staff, the City Treasurer; or (iv) in the
event of the absence or incapacity of the Mayor, the Mayor’s Chief of Staff and the City Treasurer,
the Deputy Treasurer of the Issuer and (b) (i) the Chair of the City Council; or (ii) in the event of
the absence or incapacity of the Chair of the City Council, the Vice Chair of the City Council; or
(iii) in the event of the absence or incapacity of both the Chair and Vice Chair of the City Council,
any other member of the City Council.
“Dissemination Agency Agreement” means the Dissemination Agency Agreement, dated
the Closing Date, between the Issuer and the Dissemination Agent, in substantially the form
attached hereto as Exhibit 5.
“Dissemination Agent” means each Person appointed by the Issuer as dissemination agent
with respect to the Continuing Disclosure Undertaking and the Dissemination Agency Agreement.
The initial Dissemination Agent is U.S. Bank National Association.
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“DTC” means The Depository Trust Company, New York, New York, and its successors
and assigns.
“Exchange Bond” means any Exchange Bond as defined in Section 209 hereof.
“Fitch” means Fitch Ratings, Inc., its successors and their assigns, and, if such corporation
shall be dissolved or liquidated or shall no longer perform the functions of a securities rating
agency, “Fitch” shall be deemed to refer to any other nationally recognized securities rating agency
designated by the Issuer to the Paying Agent.
“Issuer” means Salt Lake City Utah.
“Letter of Representations” means the Blanket Issuer Letter of Representations from the
Issuer to DTC, dated October 16, 2019.
“Mayor” means the Mayor of the City, or in her absence or disability, such other official
as shall be duly authorized to act in her stead.
“Moody’s” means Moody’s Investors Service, Inc., its successors and their assigns, and,
if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a
securities rating agency, “Moody’s” shall be deemed to refer to any other nationally recognized
securities rating agency designated by the Issuer to the Paying Agent.
“Official Statement” means the Official Statement with respect to the Bonds, in
substantially the form of the Preliminary Official Statement attached hereto as Exhibit 2.
“Participants” means those broker dealers, banks and other financial institutions from time
to time for which DTC holds Bonds as securities depository.
“Paying Agent” means each Person appointed by the Issuer as paying agent with respect
to the Bonds. Pursuant to Section 206 hereof, the initial Paying Agent is U.S. Bank National
Association of Salt Lake City, Utah.
“Person” means natural persons, firms, partnerships, associations, corporations, trusts,
public bodies and other entities.
“Project Account” means the Project Account established in Section 213 hereof.
“Purchaser” means the initial purchaser or purchasers of the Bonds from the Issuer,
including, if applicable, the Best Bidder (defined below).
“Rating Agencies” means Moody’s, if the Bonds are then rated by Moody’s, Fitch, if the
Bonds are then rated by Fitch, and S&P, if the Bonds are then rated by S&P.
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“Record Date” means the day that is fifteen (15) days preceding each interest payment
date, or if such day is not a business day for the Bond Registrar, the next preceding day that is a
business day for the Bond Registrar.
“Regulations” means United States Treasury Regulations dealing with the tax-exempt
bond provisions of the Code.
“S&P” means S&P’s Global Ratings, its successors and their assigns, and, if such
corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities
rating agency, “S&P” shall be deemed to refer to any other nationally recognized securities rating
agency designated by the Issuer to the Paying Agent.
“Tax Certificate” means any agreement or certificate of the Issuer that the Issuer may
execute in order to establish and maintain the excludability of interest on the Bonds from gross
income of the owners thereof for federal income tax purposes.
“United States” means the government of the United States of America.
“Utah Code” means Utah Code Annotated 1953, as amended.
Section 102. Rules of Construction. Unless the context otherwise requires:
(a) references to Articles and Sections are to the Articles and Sections of this
Bond Resolution;
(b) the singular form of any word, including the terms defined in Section 101,
includes the plural, and vice versa, and a word of any gender includes all genders; and
(c) the terms “hereby,” “hereof,” “hereto,” “herein,” “hereunder” and any
similar terms as used in this Bond Resolution refer to this Bond Resolution.
Section 103. Authority for Bond Resolution. This Bond Resolution is adopted pursuant to
the provisions of the Act.
ARTICLE II
AUTHORIZATION, TERMS AND ISSUANCE OF BONDS
Section 201. Authorization of Bonds, Principal Amount, Designation and Series. In
accordance with and subject to the terms, conditions and limitations established by the Act and in
the Bond Resolution, a series of general obligation bonds of the Issuer is hereby authorized to be
issued in the aggregate principal amount of $23,600,000, which shall be designated “General
Obligation Bonds, Series 2021”. If the Designated Officers determine pursuant to
Sections 204(b)(i) and 209 hereof that the principal amount to be issued shall be less than
$23,600,000, then the principal of such series of bonds shall be limited to the amount so determined
by the Designated Officers.
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Section 202. Purpose. Up to $23,600,000 aggregate principal amount of the Bonds are
hereby authorized to be issued under authority of the Act for the purpose of raising money for
paying all or a portion of the costs to improve various streets and roads throughout Salt Lake City
and related infrastructure improvements, as authorized at the Bond Election, and paying certain
costs related to the issuance and sale of the Bonds.
Section 203. Issue Date. The Bonds shall be dated as of the Closing Date.
Section 204. Bond Details; Delegation of Authority. (a) The Bonds shall mature on
June 15 of the years 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) from the Closing Date, payable
semiannually on June 15 and December 15 of each year at the rates per annum as provided in the
Certificate of Determination.
(b) There is hereby delegated to the Designated Officers, subject to the limitations
contained in the Bond Resolution, the power to determine and effectuate the following with respect
to the Bonds and the Designated Officers are hereby authorized to make such determinations and
effectuations:
(i) the principal amount of the Bonds necessary to accomplish the purposes of
the Bonds set forth in Section 202 herein and the aggregate principal amount of the Bonds
to be executed and delivered pursuant to Section 209 herein; provided that the aggregate
principal amount of the Bonds shall not exceed Twenty-Three Million Six Hundred
Thousand dollars ($23,600,000);
(ii) the maturity date or dates and principal amount of each maturity of the
Bonds to be issued; provided, however, that the final maturity of all Bonds shall not be
more than twenty-one (21) years after the issuance of the Bonds;
(iii) the interest rate or rates of the Bonds, provided, however, that the interest
rate or rates to be borne by any Bond shall not exceed five percent (5.00%) per annum;
(iv) the sale of the Bonds to the Purchaser and the purchase price to be paid by
the Purchaser for the Bonds; provided, however, that the discount from par of the Bonds
shall not exceed two percent (2.00%) (expressed as a percentage of the principal amount);
(v) the Bonds, if any, to be retired from mandatory sinking fund redemption
payments and the dates and the amounts thereof;
(vi) the optional redemption date of the Bonds; provided, however, the first
optional redemption date shall not be later than ten and a half years from the Closing Date;
(vii) the use and deposit of the proceeds of the Bonds;
(viii) the method of sale for the Bonds, which sale may be by competitive sale,
negotiated underwriting or direct purchase;
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(ix) if different than those set forth in Section 205, the denominations for the
Bonds and the related provisions regarding a partial redemption; and
(x) any other provisions deemed advisable by the Designated Officers not
materially in conflict with the provisions of the Bond Resolution.
Immediately following (a) the date and time specified in an Official Notice of Bond Sale
(attached to the form of the Official Statement attached hereto as Exhibit 2) for the receipt of bids
for the purchase of the Bonds or (b) the pricing of the Bonds, the Designated Officers shall obtain
such information as they deem necessary to make such determinations as provided above and, in
the case the Bonds are sold pursuant to competitive bids, to determine the bid of the responsible
bidder that results in the lowest effective interest rate to the Issuer (the “Best Bidder”). Thereupon,
the Designated Officers shall make such determinations as provided above, shall (i) award the bid
to the Best Bidder or (ii) execute a bond purchase contract, a continuing covenant agreement, term
sheet or similar document selling the Bonds or agreeing to sell the Bonds to the Purchaser thereof,
as applicable, and shall execute the Certificate of Determination containing such terms and
provisions of the Bonds, which execution shall be conclusive evidence of the awarding of such bid
to the Best Bidder or selling such Bonds to the Purchaser thereof and the action or determination
of the Designated Officers as to the matters stated therein. The provisions of the Certificate of
Determination shall be deemed to be incorporated herein. In the case that the Bonds are sold
pursuant to competitive bid, if the Designated Officers determine that it is in the best interest of
the Issuer, the Designated Officers may (a) waive any irregularity or informality in any bid or in
the electronic bidding process; and (b) reject any and all bids for the Bonds.
(c) Each Bond shall bear interest from the interest payment date next preceding the date
of registration and authentication thereof unless (i) it is registered and authenticated as of an
interest payment date, in which event it shall bear interest from the date thereof, or (ii) it is
registered and authenticated prior to the first interest payment date, in which event it shall bear
interest from its date, or (iii) as shown by the records of the Bond Registrar, interest on the Bonds
shall be in default, in which event it shall bear interest from the date to which interest has been
paid in full. The Bond Registrar shall insert the date of registration and authentication of each
Bond in the place provided for such purpose in the form of Bond Registrar’s certificate of
authentication on each Bond. The Bonds shall bear interest on overdue principal at the respective
rates provided in the Certificate of Determination.
Section 205. Denominations and Numbers. Except as otherwise set forth in the Certificate
of Determination, the Bonds shall be issued as fully-registered bonds, without coupons, in the
denomination of $5,000 or any whole multiple thereof, not exceeding the amount of each maturity.
The Bonds shall be numbered with the letter prefix “R-” and from one (1) consecutively upwards
in order of issuance.
Section 206. Paying Agent and Bond Registrar. U.S. Bank National Association of Salt
Lake City, Utah, is hereby appointed the initial Paying Agent and Bond Registrar for the Bonds.
The Issuer may remove any Paying Agent and any Bond Registrar, and any successor thereto, and
appoint a successor or successors thereto. The Mayor and the City Recorder are hereby authorized
and directed to enter into an agreement or agreements with each Paying Agent (a “Paying Agent
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Agreement”), which may establish certain duties and obligations of the Paying Agent and the
Issuer, including, without limitation those duties and obligations set forth in Section 502 hereof.
Each Paying Agent and Bond Registrar shall signify its acceptance of the duties and obligations
imposed upon it by the Bond Resolution by executing and delivering to the Issuer a written
acceptance thereof, which written acceptance may be contained in a Paying Agent Agreement.
The principal of, and premium, if any, and interest on the Bonds shall be payable in any coin or
currency of the United States of America that, at the respective dates of payment thereof, is legal
tender for the payment of public and private debts. Principal of and premium, if any, on the Bonds
shall be payable when due to the owner of each Bond upon presentation and surrender thereof at
the principal corporate trust office of the Paying Agent. Payment of interest on each Bond shall
be made to the Person that, as of the Record Date, is the owner of the Bond and shall be made by
check or draft mailed to the Person that, as of the Record Date, is the owner of the Bond, at the
address of such owner as it appears on the registration books of the Issuer kept by the Bond
Registrar, or at such other address as is furnished to the Bond Registrar in writing by such owner
on or prior to the Record Date.
Section 207. Redemption and Redemption Price; Notice of Redemption. (a) The Bonds
shall be subject to redemption prior to maturity, at the election of the Issuer, on the date specified
in the Certificate of Determination (the “First Redemption Date”), and on any date thereafter, in
whole or in part, from such maturities or parts thereof as shall be selected by the Issuer, upon
notice given as provided below, at a redemption price equal to 100% of the principal amount of
the Bonds to be redeemed, plus accrued interest thereon to the date fixed for redemption. Bonds
maturing on or prior to the First Redemption Date are not subject to optional redemption.
(b) The Bonds may be subject to mandatory redemption by operation of sinking fund
installments as provided in the Certificate of Determination. If the Bonds are subject to mandatory
sinking fund redemption and less than all of the Bonds then outstanding are redeemed in a manner
other than pursuant to a mandatory sinking fund redemption, the principal amount so redeemed
shall be credited at 100% of the principal amount thereof by the Bond Registrar against the
obligation of the Issuer on such mandatory sinking fund redemption dates for the Bonds in such
order as directed by the Issuer.
(c) If less than all of the Bonds of any maturity are to be redeemed, the particular Bonds
or portion of Bonds of such maturity to be redeemed shall be selected at random by the Bond
Registrar in such manner as the Bond Registrar in its discretion may deem fair and appropriate.
Except as otherwise set forth in the Certificate of Determination, the portion of any registered
Bond of a denomination of more than $5,000 to be redeemed will be in the principal amount of
$5,000 or a whole multiple thereof, and in selecting portions of such Bonds for redemption, the
Bond Registrar will treat each such Bond as representing that number of Bonds of $5,000
denomination that is obtained by dividing the principal amount of such Bond by $5,000.
(d) Notice of redemption shall be given by the Bond Registrar by registered or certified
mail, not less than thirty (30) nor more than forty-five (45) days prior to the redemption date, to
the owner of each Bond that is subject to redemption, at the address of such owner as it appears in
the registration books of the Issuer kept by the Bond Registrar, or at such other address as is
furnished to the Bond Registrar in writing by such owner. Each notice of redemption shall state
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the principal amount, the redemption date, the place of redemption, the redemption price and, if
less than all of the Bonds are to be redeemed, the distinctive numbers of the Bonds or portions of
Bonds to be redeemed, and shall also state that the interest on the Bonds in such notice designated
for redemption shall cease to accrue from and after such redemption date and that on the
redemption date there will become due and payable on each of the Bonds to be redeemed the
principal thereof and interest accrued thereon to the redemption date. Each notice of optional
redemption may further state that such redemption shall be conditional upon the receipt by the
Paying Agent, on or prior to the date fixed for such redemption, of moneys sufficient to pay the
principal of and premium, if any, and interest on such Bonds to be redeemed and that if such
moneys shall not have been so received said notice shall be of no force and effect and the Issuer
shall not be required to redeem such Bonds. In the event that such notice of redemption contains
such a condition and such moneys are not so received, the redemption shall not be made and the
Bond Registrar shall within a reasonable time thereafter give notice, in the manner in which the
notice of redemption was given, that such moneys were not so received. Any notice mailed as
provided in this Section shall be conclusively presumed to have been duly given, whether or not
the owner receives such notice. Failure to give such notice or any defect therein with respect to
any Bond shall not affect the validity of the proceedings for redemption with respect to any other
Bond.
(e) In addition to the foregoing notice under subsection (c) above, further notice of such
redemption shall be given by the Bond Registrar as set out below, but no defect in such further
notice nor any failure to give all or any portion of such further notice shall in any manner affect
the validity of a call for redemption if notice thereof is given as prescribed above.
(i) Each further notice of redemption given hereunder shall contain the
information required above for an official notice of redemption plus (A) the CUSIP
numbers of all Bonds being redeemed; (B) the date of issue of the Bonds as originally
issued; (C) the rate of interest borne by each Bond being redeemed; (D) the maturity date
of each Bond being redeemed; and (E) any other descriptive information needed to identify
accurately the Bonds being redeemed.
(ii) Each further notice of redemption shall be sent at least thirty-five (35) days
before the redemption date to DTC in accordance with the operating procedures then in
effect for DTC, and to all other registered securities depositories then in the business of
holding substantial amounts of obligations of types comprising the Bonds designated to the
Bond Registrar by the Issuer, to the Rating Agencies and to any other nationally recognized
information services as designated by the Issuer to the Bond Registrar.
(f) If notice of redemption shall have been given as described above and the condition
described in Section 207(d) hereof, if any, shall have been met, the Bonds or portions thereof
specified in said notice shall become due and payable at the applicable redemption price on the
redemption date therein designated, and if, on the redemption date, moneys for the payment of the
redemption price of all the bonds to be redeemed, together with interest to the redemption date,
shall be available for such payment on said date, then from and after the redemption date interest
on such bonds shall cease to accrue and become payable.
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(g) Upon the payment of the redemption price of Bonds being redeemed, each check or
other transfer of funds issued for such purpose shall bear the CUSIP number or numbers
identifying, by issue and maturity, the Bonds being redeemed with the proceeds of such check or
other transfer.
(h) The Bond Registrar shall also give any notice of the “defeasance” or redemption of
the Bonds that may be required by the Continuing Disclosure Undertaking provided that the Issuer
shall provide to the Bond Registrar any documents or other information that the Bond Registrar
requests to provide such notice.
Section 208. Issuance, Sale and Delivery of Bonds. Under authority of the Act, the Bonds
shall be issued by the Issuer for the purposes set forth in Section 202 hereof. The Bonds shall be
delivered to the Purchaser and the proceeds of sale thereof applied as provided in Section 210
hereof.
Section 209. Execution of Bonds. The Bonds shall be executed on behalf of the Issuer by
the Mayor and attested and countersigned by the City Recorder (the signatures of the Mayor and
City Recorder being either manual or by facsimile) and the official seal of the Issuer or a facsimile
thereof shall be impressed or printed thereon in an aggregate principal amount necessary to
accomplish the purpose of the Bonds specified in Section 202 herein; provided that the aggregate
principal amount of the Bonds shall not exceed $23,600,000. The use of such manual or facsimile
signatures of the Mayor and the City Recorder and such facsimile or impression of the official seal
of the Issuer on the Bonds are hereby authorized, approved and adopted by the Issuer as the
authorized and authentic execution, attestation, countersignature and sealing of the Bonds by said
officials on behalf of the Issuer. The Bonds shall then be delivered to the Bond Registrar for
manual authentication by it. Only such of the Bonds as shall bear thereon a certificate of
authentication, manually executed by the Bond Registrar, shall be valid or obligatory for any
purpose or entitled to the benefits of the Bond Resolution, and such certificate of the Bond
Registrar shall be conclusive evidence that the Bonds so authenticated have been duly
authenticated and delivered under, and are entitled to the benefits of, this Bond Resolution and that
the owner thereof is entitled to the benefits of this Bond Resolution. The certificate of
authentication of the Bond Registrar on any Bond shall be deemed to have been executed by it if
(i) such Bond is signed by an authorized officer of the Bond Registrar, but it shall not be necessary
that the same officer sign the certificate of authentication on all of the Bonds issued hereunder or
that all of the Bonds hereunder be authenticated by the same Bond Registrar, and (ii) the date of
registration and authentication of the Bond is inserted in the place provided therefor on the
certificate of authentication.
The Mayor and the City Recorder are authorized to execute, countersign, attest and seal
from time to time, in the manner described above, Bonds (the “Exchange Bonds”) to be issued
and delivered for the purpose of effecting transfers and exchanges of Bonds pursuant to Article III
hereof. At the time of the execution, countersigning, attestation and sealing of the Exchange Bonds
by the Issuer, the payee, principal amount, maturity and interest rate may be in blank. Upon any
transfer or exchange of Bonds pursuant to Article III hereof, the Bond Registrar shall cause to be
inserted in appropriate Exchange Bonds the appropriate payee, principal amount, maturity and
interest rate. The Bond Registrar is hereby authorized and directed to hold the Exchange Bonds
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and to complete, authenticate and deliver the Exchange Bonds for the purpose of effecting transfers
and exchanges of Bonds; provided that any Exchange Bonds authenticated and delivered by the
Bond Registrar shall bear the same series, maturity and interest rate as Bonds delivered to the Bond
Registrar for exchange or transfer and shall bear the name of such payee as the Bondowner
requesting an exchange or transfer shall designate; and provided further that upon the delivery of
any Exchange Bonds by the Bond Registrar a like principal amount of Bonds submitted for transfer
or exchange, and of like series and having like maturity dates and interest rates, shall be canceled.
The execution, countersignature, attestation and sealing by the Issuer and delivery to the Bond
Registrar of any Exchange Bond shall constitute full and due authorization of such Bond
containing such payee, principal amount, maturity and interest rate as the Bond Registrar shall
cause to be inserted, and the Bond Registrar shall thereby be authorized to authenticate and deliver
such Exchange Bond in accordance with the provisions hereof.
In case any officer whose signature or a facsimile of whose signature shall appear on any
Bond (including any Exchange Bond) shall cease to be such officer before the issuance or delivery
of such Bond, such signature or such facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if such officer had remained in office until such issuance or delivery,
respectively.
Section 210. Delivery of the Bonds; Application of Proceeds. The City Treasurer is hereby
authorized and instructed to make delivery of the Bonds to the Purchaser and to receive payment
therefor in accordance with the terms of sale and to set the proceeds of sale of the Bonds aside for
deposit into the Project Account to be used for the purpose for which the Bonds are issued as set
forth in Section 202 hereof.
Section 211. Disclosure Agreements. If necessary, the Mayor is hereby authorized,
empowered and directed to execute and deliver, and the City Recorder to seal, countersign and
attest, the Continuing Disclosure Agreement and the related Dissemination Agency Agreement
(collectively, the “Disclosure Agreements”) in substantially the same form as now before the
Issuer and attached hereto as Exhibits 1 and 5, or with such changes therein as the Mayor shall
approve, his or her execution thereof to constitute conclusive evidence of his or her approval of
such changes. When the Disclosure Agreements are executed and delivered on behalf of the Issuer
as herein provided, the Disclosure Agreements will be binding on the Issuer and the officers,
employees and agents of the Issuer, and the officers, employees and agents of the Issuer are hereby
authorized, empowered and directed to do all such acts and things and to execute all such
documents as may be necessary to carry out and comply with the provisions of the Disclosure
Agreements as executed. Notwithstanding any other provision of this Bond Resolution, the sole
remedies for failure to comply with the Continuing Disclosure Undertaking shall be the ability of
the beneficial owner of any Bond to seek mandamus or specific performance by court order, to
cause the Issuer to comply with its obligations under the Continuing Disclosure Undertaking.
Section 212. Further Authority. The Mayor, the City Treasurer and the City Recorder and
other officers of the Issuer 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 provide for the issuance, sale, registration and delivery of the Bonds and to fulfill the
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obligations of the Issuer hereunder and thereunder, including any documents or agreement selling
the Bonds or agreeing to sell the Bonds to the Purchaser.
Section 213. Establishment of Accounts. (a) The following accounts on the accounting
records of the Issuer are hereby created, which are to be held as follows:
(i) Bond Account, to be held by the Issuer;
(ii) Depository Account, to be held by the Paying Agent; and
(iii) Project Account, to be held by the Paying Agent.
(b) Pending application for the purposes contemplated hereby, moneys on deposit in the
Bond Account, Depository Account and Project Account shall be invested as permitted by law in
investments approved by the City Treasurer or other authorized officer of the Issuer.
(c) Amounts held in the Project Account shall be held by the Paying Agent and shall be
disbursed by the Paying Agent to the Issuer upon receipt of a written request of the City Treasurer
or any other authorized officer of the Issuer.
ARTICLE III
TRANSFER AND EXCHANGE OF BONDS; BOND REGISTRAR
Section 301. Transfer of Bonds. (a) Any Bond may, in accordance with its terms, be
transferred, upon the registration books kept by the Bond Registrar pursuant to Section 303 hereof,
by the Person in whose name it is registered, in person or by such owner’s duly authorized attorney,
upon surrender of such Bond for cancellation, accompanied by delivery of a duly executed written
instrument of transfer in a form approved by the Bond Registrar. No transfer shall be effective
until entered on the registration books kept by the Bond Registrar. The Issuer, the Bond Registrar
and the Paying Agent may treat and consider the Person in whose name each Bond is registered in
the registration books kept by the Bond Registrar as the holder and absolute owner thereof for the
purpose of receiving payment of, or on account of, the principal or redemption price thereof and
interest due thereon and for all other purposes whatsoever.
(b) Whenever any Bond or Bonds shall be surrendered for transfer, the Bond Registrar
shall authenticate and deliver a new fully-registered Bond or Bonds (which may be an Exchange
Bond or Bonds pursuant to Section 209 hereof) of the same series, designation, maturity and
interest rate and of authorized denominations duly executed by the Issuer, for a like aggregate
principal amount. The Bond Registrar shall require the payment by the Bondowner requesting
such transfer of any tax or other governmental charge required to be paid with respect to such
transfer. With respect to each Bond, no such transfer shall be required to be made after the Record
Date or after notice of redemption has be given by the Bond Registrar.
(c) The Bond Registrar shall not be required to register the transfer of or exchange any
Bond selected for redemption, in whole or in part, except the unredeemed portion of Bonds being
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redeemed in part. Upon surrender of any Bond redeemed in part only, the Issuer shall execute,
and the Bond Registrar shall authenticate and deliver to the Bondowner at the expense of the Issuer,
a new Bond or Bonds (which may be an Exchange Bond or Bonds pursuant to Section 209 hereof)
of the same series, designation, maturity and interest rate and of authorized denominations equal
in aggregate principal amount to the unredeemed portion of the Bond surrendered.
Section 302. Exchange of Bonds. Bonds may be exchanged at the principal corporate trust
office of the Bond Registrar for a like aggregate principal amount of fully-registered Bonds (which
may be an Exchange Bond or Bonds pursuant to Section 209 hereof) of the same series,
designation, maturity and interest rate of other authorized denominations. The Bond Registrar
shall require the payment by the Bondowner requesting such exchange of any tax or other
governmental charge required to be paid with respect to such exchange. With respect to each
Bond, no such exchange shall be required to be made after the Record Date or after notice of
redemption has be given by the Bond Registrar.
Section 303. Bond Registration Books. This Bond Resolution shall constitute a system of
registration within the meaning and for all purposes of the Registered Public Obligations Act,
Chapter 7 of Title 15 of the Utah Code. The Bond Registrar shall keep or cause to be kept, at its
principal corporate trust office, sufficient books for the registration and transfer of the Bonds,
which shall at all times be open to inspection by the Issuer; and, upon presentation for such
purpose, the Bond Registrar shall, under such reasonable regulations as it may prescribe, register,
or transfer or cause Bonds to be registered or transferred on those books as herein provided.
Section 304. List of Bondowners. The Bond Registrar shall maintain a list of the names
and addresses of the owners of all Bonds and upon any transfer shall add the name and address of
the new Bondowner and eliminate the name and address of the transferor Bondowner.
Section 305. Duties of Bond Registrar. If requested by the Bond Registrar, the Mayor and
the City Recorder are authorized to execute the Bond Registrar’s standard form of agreement
between the Issuer and the Bond Registrar with respect to the compensation, obligations and duties
of the Bond Registrar hereunder, which may include the following:
(a) to act as bond registrar, authenticating agent, paying agent and transfer
agent as provided herein;
(b) to maintain a list of Bondowners as set forth herein and to furnish such list
to the Issuer upon request, but otherwise to keep such list confidential;
(c) to give notice of redemption of Bonds as provided herein;
(d) to cancel and/or destroy Bonds that have been paid at maturity or upon
earlier redemption or submitted for exchange or transfer;
(e) to furnish the Issuer at least annually a certificate with respect to Bonds
cancelled and/or destroyed;
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(f) to furnish to the Issuer, at its request, at least annually an audit confirmation
of Bonds paid, Bonds outstanding and payments made with respect to interest on the
Bonds; and
(g) to comply with all applicable provisions of DTC’s operational
arrangements, as provided in Section 402 hereof.
ARTICLE IV
BOOK-ENTRY SYSTEM; LIMITED OBLIGATION OF ISSUER;
LETTER OF REPRESENTATIONS
Section 401. Book-Entry System; Limited Obligation of Issuer. (a) The Bonds shall be
initially issued in the form of a separate, single, certificated, fully-registered Bond for each of the
maturities set forth in the Certificate of Determination. If the Bonds are publicly offered the
provisions relating to DTC’s book-entry system shall apply and upon initial issuance, the
ownership of each such Bond shall be registered in the registration books kept by the Bond
Registrar in the name of Cede, as nominee of DTC. Except as provided in Section 403 hereof, all
of the outstanding Bonds shall be registered in the registration books kept by the Bond Registrar
in the name of Cede, as nominee of DTC.
(b) With respect to Bonds registered in the registration books kept by the Bond Registrar
in the name of Cede, as nominee of DTC, the Issuer, the Bond Registrar and the Paying Agent
shall have no responsibility or obligation to any Participant or to any Person on behalf of which
such a Participant holds an interest in the Bonds. Without limiting the immediately preceding
sentence, the Issuer, the Bond Registrar and the Paying Agent shall have no responsibility or
obligation with respect to (i) the accuracy of the records of DTC, Cede or any Participant with
respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other
Person, other than a Bondowner, as shown in the registration books kept by the Bond Registrar, of
any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to
any Participant or any other Person, other than a Bondowner, as shown in the registration books
kept by the Bond Registrar, of any amount with respect to the principal of or premium, if any, or
interest on the Bonds. The Issuer, the Bond Registrar and the Paying Agent may treat and consider
the Person in whose name each Bond is registered in the registration books kept by the Bond
Registrar as the holder and absolute owner of such Bond for the purpose of payment of principal,
premium and interest with respect to such Bond and other matters with respect to such Bond, for
the purpose of registering transfers with respect to such Bond, for the purpose of giving notices of
redemption and for all other purposes whatsoever. The Paying Agent shall pay all principal of and
premium, if any, and interest on the Bonds only to the respective Bondowners, as shown in the
registration books kept by the Bond Registrar, or their respective attorneys duly authorized in
writing, as provided in Section 206 hereof, and all such payments shall be valid and effective to
fully satisfy and discharge the Issuer’s obligations with respect to payment of principal of and
premium, if any, and interest on the Bonds to the extent of the sum or sums so paid. No Person
other than a Bondowner, as shown in the registration books kept by the Bond Registrar, shall
receive a certificated Bond evidencing the obligation of the Issuer to make payments of principal,
premium, if any, and interest pursuant to the Bond Resolution.
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(c) Upon delivery by DTC to the Issuer of written notice to the effect that DTC has
determined to substitute a new nominee in place of Cede, and subject to the provisions herein with
respect to Record Dates, the word “Cede” in this Bond Resolution shall refer to such new nominee
of DTC; and upon receipt of such a notice the Issuer shall promptly deliver a copy of the same to
the Bond Registrar and the Paying Agent.
Section 402. Letter of Representations. The Issuer’s prior execution and delivery of the
Letter of Representations shall not in any way limit the provisions of Section 401 hereof or in any
other way impose upon the Issuer any obligation whatsoever with respect to Persons having
interests in the Bonds other than the Bondowners, as shown on the registration books kept by the
Bond Registrar. In the written acceptance of each Paying Agent and Bond Registrar referred to in
Section 206 hereof, such Paying Agent and Bond Registrar, respectively, shall agree to take all
action necessary for all of DTC’s operational arrangements pertaining to the Paying Agent and
Bond Registrar, respectively, to at all times be complied with.
Section 403. Transfers Outside Book-Entry System. If the Bonds are sold pursuant to a
direct placement, at the option of the Issuer or upon receipt by the Issuer of written notice from
DTC that DTC is unable or unwilling to discharge its responsibilities, and no substitute depository
willing to undertake the functions of DTC hereunder can be found that is willing and able to
undertake such functions upon reasonable and customary terms, the Bonds shall no longer be
restricted to being registered in the registration books kept by the Bond Registrar in the name of
Cede, as nominee of DTC, but may be registered in whatever name or names Bondowners
transferring or exchanging Bonds shall designate, in accordance with the provisions of Article III
hereof.
Section 404. Payments to Cede. Notwithstanding any other provision of this Bond
Resolution to the contrary, so long as any Bond is registered in the name of Cede, as nominee of
DTC, all payments with respect to principal of and premium, if any, and interest on such Bond and
all notices with respect to such Bond shall be made and given, respectively, in the manner provided
in the Letter of Representations.
ARTICLE V
COVENANTS AND UNDERTAKINGS
Section 501. Covenants of Issuer. All covenants, statements, representations and
agreements contained in the Bonds and all recitals and representations in the Bond Resolution are
hereby considered and understood, and it is hereby confirmed that all such covenants, statements,
representations and agreements are the covenants, statements, representations and agreements of
the Issuer.
Section 502. Levy of Taxes; Bond Account. The Issuer covenants and agrees that to pay
the interest falling due on the Bonds as the same becomes due, and also to provide a sinking fund
for the payment of the principal of the Bonds at maturity, there shall be levied on all taxable
property in the Issuer in addition to all other taxes, a direct annual tax sufficient to pay the interest
on the Bonds and to pay and retire the same. These taxes when collected shall be applied solely
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for the purpose of the payment of the interest on and principal of the Bonds, respectively, and for
no other purpose whatsoever until the indebtedness so contracted under the Bond Resolution,
principal and interest, shall have been fully paid, satisfied and discharged, but nothing herein
contained shall be so construed as to prevent the Issuer from applying any other funds that may be
in the Issuer’s treasury and available for that purpose to the payment of such interest and principal
as the same respectively become due and mature. The levy or levies herein provided for may
thereupon be diminished to that extent. The sums herein provided for to meet the interest on the
Bonds and to discharge the principal thereof when due are hereby appropriated for that purpose,
and the required amount for each year shall be included by the Issuer in its annual budget and its
statement and estimate as certified to the County Council of Salt Lake County, Utah, in each year.
Principal or interest falling due at any time when there shall not be available from the proceeds of
the levies described in this Section money sufficient for the payment thereof shall, to the extent of
such deficiency, be paid from other funds of the Issuer available for such purpose, and such other
funds shall be reimbursed when the proceeds of such levies become available.
The taxes or other funds that are referenced in the foregoing paragraph and that are to be
used to pay the principal of or interest on the Bonds shall be deposited into the Bond Account. On
or prior to the business day next preceding each principal or interest payment date for the Bonds,
the Issuer shall transfer from the Bond Account to the Paying Agent for deposit into the Depository
Account an amount sufficient to pay principal of and interest on the Bonds on such payment date.
On each principal or interest payment date, the Paying Agent shall pay out of the Depository
Account the principal of or interest on the Bonds then coming due. Moneys remaining on deposit
in the Bond Account immediately after each such payment date, including any investment earnings
thereon earned during the period of such deposit, shall be immediately withdrawn from the Bond
Account by the Issuer and commingled with the general funds of the Issuer. Moneys remaining
on deposit in the Depository Account immediately after each such payment date, including any
investment earnings thereon earned during the period of such deposit, shall be immediately
withdrawn from the Depository Account by the Paying Agent and paid to the Issuer and
commingled with the general funds of the Issuer. The Bond Account and the Depository Account
have been established primarily to achieve a proper matching of revenues and debt service on the
Bonds. The Bond Account and the Depository Account shall be depleted at least once each year
by the Issuer, except for a reasonable carryover amount not to exceed the greater of one year’s
earnings on the Bond Account or one-twelfth of the annual debt service on the Bonds.
Section 503. Arbitrage Covenant and Covenant to Maintain Tax-Exemption. (a) The
Mayor, the City Treasurer, the City Recorder and other appropriate officials of the Issuer are
hereby authorized and directed to execute such Tax Certificates as shall be necessary to establish
that (i) the Bonds are not “arbitrage bonds” within the meaning of Section 148 of the Code and the
Regulations, (ii) the Bonds are not and will not become “private activity bonds” within the
meaning of Section 141 of the Code, (iii) all applicable requirements of Section 149 of the Code
are and will be met, (iv) the covenants of the Issuer contained in this Section will be complied with
and (v) interest on the Bonds is not and will not become includible in gross income of the owners
thereof for federal income tax purposes under the Code and applicable Regulations.
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(b) The Issuer covenants and certifies to and for the benefit of the owners from time to
time of the Bonds that:
(i) it will at all times comply with the provisions of any Tax Certificates;
(ii) it will at all times comply with the rebate requirements contained in
Section 148(f) of the Code and the Regulations, including, without limitation, the entering
into any necessary rebate calculation agreement to provide for the calculations of amounts
required to be rebated to the United States, the keeping of records necessary to enable such
calculations to be made, the creation of any rebate fund to provide for the payment of any
required rebate and the timely payment to the United States of all amounts, including any
applicable penalties and interest, required to be rebated, except to the extent that the Bonds
are not subject to such arbitrage rebate requirements;
(iii) no use will be made of the proceeds of the issue and sale of the Bonds, or
any funds or accounts of the Issuer that may be deemed to be proceeds of the Bonds,
pursuant to Section 148 of the Code and applicable Regulations, which use, if it had been
reasonably expected on the date of issuance of the Bonds, would have caused the Bonds to
be classified as “arbitrage bonds” within the meaning of Section 148 of the Code;
(iv) it will not use or permit the use of any of its facilities or properties in such
manner that such use would cause the Bonds to be “private activity bonds” described in
Section 141 of the Code;
(v) no bonds or other evidences of indebtedness of the Issuer (other than the
Bonds) have been or will be issued, sold or delivered within a period beginning fifteen (15)
days prior to the sale of the Bonds and ending fifteen (15) days following the delivery of
the Bonds, other than the Bonds;
(vi) it will not take any action that would cause interest on the Bonds to be or to
become ineligible for the exclusion from gross income of the owners of the Bonds as
provided in Section 103 of the Code, nor will it omit to take or cause to be taken in timely
manner any action, which omission would cause interest on the Bonds to be or to become
ineligible for the exclusion from gross income of the owners of the Bonds as provided in
Section 103 of the Code;
(vii) it recognizes that Section 149(a) of the Code requires the Bonds to be issued
and to remain in fully registered form in order that interest thereon is excludable from gross
income of the owners thereof for federal income tax purposes under laws in force at the
time the Bonds are initially delivered and the Issuer agrees that it will not take any action
to permit the Bonds to be issued in, or converted into, bearer or coupon form without an
opinion of Bond Counsel to the effect that such action will not adversely affect the
excludability of interest on the Bonds from the gross income of the owners thereof for
federal income tax purposes; and
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(viii) it acknowledges that, in the event of an examination by the Internal Revenue
Service of the exemption from federal income taxation for interest paid on the Bonds, under
present rules, the Issuer may be treated as a “taxpayer” in such examination and agrees that
it will respond in a commercially reasonable manner to any inquiries from the Internal
Revenue Service in connection with such an examination.
Pursuant to these covenants, the Issuer obligates itself to comply throughout the term of the issue
of the Bonds with the requirements of Section 103 of the Code and the Regulations proposed or
promulgated thereunder.
ARTICLE VI
FORM OF BONDS
Section 601. Form of Bonds. Each fully-registered Bond shall be, respectively, in
substantially the following form, with such insertions or variations as to any redemption or
amortization provisions and such other insertions or omissions, endorsements and variations as
may be required (including, but not limited to, such changes as may be necessary if the Bonds at
any time are no longer held in book-entry form as permitted by Section 403 hereof:
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[FORM OF BOND]
_______________________________________
[Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), to the Issuer or its agent for registration of transfer,
exchange, or payment, and any certificate 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
UNITED STATES OF AMERICA
STATE OF UTAH
SALT LAKE COUNTY
SALT LAKE CITY, UTAH
GENERAL OBLIGATION BOND
SERIES 2021
Number R-____ $___________
INTEREST RATE: MATURITY DATE: DATED DATE: CUSIP:
________% June 15, ____ __________, 2021 _________
REGISTERED OWNER: _________________________
PRINCIPAL AMOUNT: ------------------------------------- DOLLARS ------------------------------------------
KNOW ALL MEN BY THESE PRESENTS that Salt Lake City, Utah (the “Issuer”), a duly
organized and existing municipal corporation and a political subdivision of the State of Utah,
acknowledges itself indebted and for value received hereby promises to pay to the registered owner
identified above, or registered assigns, on the maturity date identified above, upon presentation
and surrender hereof, the principal amount identified above (the “Principal Amount”), and to pay
the registered owner hereof interest on the balance of the 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 to the first interest payment date, in which
event this Bond shall bear interest from the dated date identified above (the “Dated Date”), or
unless, as shown by the records of the hereinafter referred to Bond Registrar, interest on the
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hereinafter referred to 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 interest rate per annum (calculated on the
basis of a year of 360 days consisting of twelve 30-day months) identified above (the “Interest
Rate”), payable semiannually on June 15 and December 15 in each year, commencing
__________ 15, 202_, until payment in full of the Principal Amount, except as the provisions set
forth in the hereinafter defined Bond Resolution with respect to redemption prior to maturity may
become applicable hereto. This Bond shall bear interest on overdue principal at the Interest Rate.
Principal of and premium, if any, on this Bond shall be payable upon presentation and surrender
hereof at the principal corporate trust office of U.S. Bank National Association, of Salt Lake City,
Utah, as Paying Agent for the Bonds, or at the principal corporate trust office of any successor
who is at the time the Paying Agent of the Issuer, in any coin or currency of the United States of
America that at the time of payment is legal tender for the payment of public and private debts;
and 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 of record on the Record Date.
This Bond is one of the General Obligation Bonds, Series 2021 of the Issuer (the “Bonds”),
limited to the aggregate principal amount of $__________, dated as of the Dated Date, issued
under and by virtue of the Local Government Bonding Act, Chapter 14 of Title 11, Utah Code
Annotated 1953, as amended (the “Utah Code”) and the Registered Public Obligations Act,
Chapter 7 of Title 15 of the Utah Code (collectively, the “Act”), and under and pursuant to a
resolution of the Issuer adopted on September 21, 2021, including as a part of such resolution that
certain Certificate of Determination, dated __________, 2021 (the “Bond Resolution”), after
having been authorized at an election held on November 6, 2018, in Salt Lake City, Utah by a vote
of the qualified electors thereof, for the purpose of, among other things, paying all or a portion of
the costs to improve various streets and roads throughout the Issuer and related infrastructure
improvements.
U.S. Bank National Association of Salt Lake City, Utah, is the initial bond registrar and
paying agent of the Issuer with respect to the Bonds. This bond registrar and paying agent, together
with any successor bond registrar or paying agent, are referred to herein, respectively, as the “Bond
Registrar” and the “Paying Agent.”
The Issuer covenants and is by law required to levy annually a sufficient tax to pay interest
on this Bond as it falls due and also to constitute a sinking fund for the payment of the principal
hereof as the same falls due.
This Bond is transferable, as provided in the Bond Resolution, only upon the books of the
Issuer kept for that purpose at the principal corporate trust office of the Bond Registrar, by the
registered owner hereof in person or by such owner’s attorney duly authorized in writing. Such
transfer shall be made upon surrender of this Bond, together with a written instrument of transfer
satisfactory to the Bond Registrar, duly executed by the registered owner or such duly authorized
attorney and upon the payment of the charges prescribed in the Bond Resolution, and thereupon
the Issuer shall issue in the name of the transferee a new registered Bond or Bonds of authorized
denominations of the same aggregate principal amount, series, designation, maturity and interest
rate as the surrendered Bond, all as provided in the Bond Resolution. No transfer of this Bond
shall be effective until entered on the registration books kept by the Bond Registrar. The Issuer,
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the Bond Registrar and the Paying Agent may treat and consider the person in whose name this
Bond is registered on the registration books kept by the Bond Registrar as the holder and absolute
owner hereof for the purpose of receiving payment of, or on account of, the principal or redemption
price hereof and interest due hereon and for all other purposes whatsoever, and neither the Issuer,
the Bond Registrar nor the Paying Agent shall be affected by any notice to the contrary.
The Bonds are issuable solely in the form of registered Bonds in the denomination of
$5,000 or any whole multiple thereof.
The Bonds are subject to redemption prior to maturity as further described in the Bond
Resolution.
Except as otherwise provided herein and unless the context clearly indicates otherwise,
words and phrases used herein shall have the same meanings as such words and phrases in the
Bond Resolution.
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 Act and all other laws applicable thereto. It is hereby certified and recited that all conditions,
acts and things required by the Constitution or laws of the State of Utah and by the Act and the
Bond Resolution to exist, to have happened or to have been performed precedent to or in
connection with 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 Issuer, is within every debt and other
limit prescribed by the Constitution and laws referenced above, and that the full faith and credit of
the Issuer are hereby irrevocably pledged to the punctual payment of the principal of and interest
on this Bond according to its terms.
This Bond shall not be valid until the Certificate of Authentication hereon shall have been
manually signed by the Bond Registrar.
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IN WITNESS WHEREOF, SALT LAKE CITY, UTAH, has caused this Bond to be signed in its
name and on its behalf by its Mayor and countersigned and attested by its City Recorder and has
caused its official seal or a facsimile thereof to be impressed or imprinted hereon, all as of the
Dated Date.
SALT LAKE CITY, UTAH
By ____________________________________
Mayor
[SEAL]
ATTEST AND COUNTERSIGN:
By__________________________________
City Recorder
APPROVED AS TO FORM
By ____________________________________
Senior City Attorney
Sep 21, 2021
Boyd Ferguson
Erin Mendenhall (Sep 21, 2021 20:08 MDT)
Cindy Trishman (Sep 21, 2021 20:47 MDT)
Sep 21, 2021
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[FORM OF BOND REGISTRAR’S CERTIFICATE OF AUTHENTICATION]
This Bond is one of the Bonds described in the within-mentioned Bond Resolution and is
one of the General Obligation Bonds, Series 2021 of Salt Lake City, Utah.
U.S. Bank National Association,
as Bond Registrar
By ____________________________________
Authorized Officer
Date of registration and authentication: _____________, 2021.
Bond Registrar and Paying Agent:
U.S. Bank National Association
170 South Main Street, Suite 200
Salt Lake City, Utah 84101
- 24 - Delegating Bond Resolution
[FORM OF ASSIGNMENT]
The following abbreviations, when used in the inscription on the face of the within Bond,
shall be construed as though they were written out in full according to applicable laws or
regulations.
TEN COM — as tenants in common
TEN ENT — as tenants by the entirety
JT TEN — as joint tenants with right
of survivorship and not as
tenants in common
UNIF TRAN MIN ACT—
_______ Custodian _______
(Cust) (Minor)
under Uniform Transfers to Minors Act of
_________________________________
(State)
Additional abbreviations may also be used though not in the above list.
FOR VALUE RECEIVED the undersigned sells, assigns and transfers unto
Insert Social Security or Other
Identifying Number of Assignee
____________________
(Please Print or Typewrite Name and Address of Assignee)
the within Bond of SALT LAKE CITY, UTAH, and hereby irrevocably constitutes and appoints ___
______________________________________________________________________________
attorney to register the transfer of the Bond on the books kept for registration thereof, with full
power of substitution in the premises.
DATED: ______________________ SIGNATURE: ____________________________
SIGNATURE GUARANTEED:
_______________________________
NOTICE: Signature(s) must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Bond Registrar, which requirements include membership or participation in
STAMP or such other “signature guarantee program” as may be determined by the Bond Registrar
in addition to, or in substitution for, STAMP, all in accordance with the Securities and Exchange
Act of 1934, as amended.
NOTICE: The signature to this assignment must correspond with the name as it appears upon the
face of the within Bond in every particular, without alteration or enlargement or any change
whatever.
- 25 - Delegating Bond Resolution
ARTICLE VII
MISCELLANEOUS
Section 701. Final Official Statement. The Official Statement of the Issuer is hereby
authorized in substantially the form attached hereto as Exhibit 2, with such changes, omissions,
insertions and revisions as the Mayor shall deem advisable, including the completion thereof with
the information established at the time of the sale of the Bonds by the Designated Officers and set
forth in the Certificate of Determination. The Mayor shall sign and deliver such Official Statement
to the Purchaser for distribution to prospective purchasers of the Bonds and other interested
persons. The approval of the Mayor of any such changes, omissions, insertions and revisions shall
be conclusively established by the Mayor’s execution of the Official Statement.
Section 702. Preliminary Official Statement Deemed Final. The use and distribution of
the Official Statement in preliminary form (the “Preliminary Official Statement”), in substantially
the form presented at this meeting and in the form attached hereto as Exhibit 2, is hereby authorized
and approved, with such changes, omissions, insertions and revisions as the City Treasurer shall
deem advisable. The Mayor, the City Treasurer and the City Recorder 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, subject to completion thereof with the information
established at the time of the sale of the Bonds. The Mayor, the City Treasurer and the City
Recorder 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 provide
for the issuance, sale and delivery of the Bonds, and any actions taken thereby for purposes of
deeming the Official Statement to be final for purposes of Rule 15c2-12 of the Securities and
Exchange Commission are hereby authorized, ratified and confirmed.
Section 703. Notice of Bonds to be Issued. In accordance with the provisions of
Section 11-14-316 of the Utah Code, the City Recorder shall cause a “Notice of Bonds to be
Issued,” in substantially the form attached hereto as Exhibit 4, to be published one time in The Salt
Lake Tribune, a newspaper of general circulation in the Issuer, and shall cause a copy of this
Resolution to be kept on file in her office for public examination during the regular business hours
of the Issuer until at least thirty (30) days from and after the date of publication thereof.
For a period of thirty (30) days from and after publication of the Notice of Bonds to be
Issued, any person in interest shall have the right to contest the legality of this Bond Resolution or
the Bonds hereby authorized or any provision made for the security and payment of the Bonds.
After such time, no one shall have any cause of action to contest the regularity, formality or legality
of this Bond Resolution or the Bonds or any provision made for the security and payment of the
Bonds for any cause.
Section 704. Ratification. All proceedings, resolutions and actions of the Issuer and its
officers taken in connection with the sale and issuance of the Bonds are hereby ratified, confirmed
- 26 - Delegating Bond Resolution
and approved, including, without limitation, the publication of the notice of sale for the Bonds as
set out in the preambles hereto.
Section 705. Severability. It is hereby declared that all parts of this Bond Resolution are
severable, and if any section, paragraph, clause or provision of this Bond Resolution shall for any
reason be held to be invalid or unenforceable, the invalidity or unenforceability of any such section,
paragraph, clause or provision shall not affect the remaining sections, paragraphs, clauses or
provisions of this Bond Resolution.
Section 706. Conflict. All resolutions, orders and regulations or parts thereof heretofore
adopted or passed that are in conflict with any of the provisions of this Bond Resolution are, to the
extent of such conflict, hereby repealed.
Section 707. Captions. The table of contents and captions or headings herein are for
convenience of reference only and in no way define, limit or describe the scope or intent of any
provisions or sections of this Bond Resolution.
Section 708. Effective Date. This Bond Resolution shall take effect immediately.
(Signature page follows.)
- 27 - Delegating Bond Resolution
ADOPTED AND APPROVED September 21, 2021.
SALT LAKE CITY, UTAH
By ____________________________________
Vice Chair, City Council
[SEAL]
ATTEST AND COUNTERSIGN:
By__________________________________
City Recorder
APPROVED:
By ____________________________________
Mayor
APPROVED AS TO FORM:
By ____________________________________
Senior City Attorney
Sep 21, 2021
Boyd Ferguson
Rogers James (Sep 21, 2021 19:56 MDT)
Erin Mendenhall (Sep 21, 2021 20:08 MDT)
Cindy Trishman (Sep 21, 2021 20:47 MDT)
Sep 21, 2021
Exhibit 1 Delegating Bond Resolution
EXHIBIT 1
[ATTACH FORM OF CONTINUING DISCLOSURE UNDERTAKING]
Draft
7/29/21
Exhibit 1-2021 Continuing Disclosure Agreement.docx
8710600/RDB/mo
CONTINUING DISCLOSURE AGREEMENT
FOR THE PURPOSE OF PROVIDING
CONTINUING DISCLOSURE INFORMATION
UNDER PARAGRAPH (b)(5) OF RULE 15C2-12
DATED: [NOVEMBER 30], 2021
This Continuing Disclosure Agreement (the “Agreement”) is executed and delivered by
Salt Lake City, Utah (the “Issuer”) in connection with the issuance of $__________ General
Obligation Bonds, Series 2021 (the “Bonds”). The Bonds are being issued pursuant to a resolution
adopted by the City Council of the Issuer on September 21, 2021 (the “Resolution”).
In consideration of the issuance of the Bonds by the Issuer and the purchase of such Bonds
by the beneficial owners thereof, the Issuer covenants and agrees as follows:
Section 1. PURPOSE OF THIS AGREEMENT. This Agreement is executed and delivered by
the Issuer as of the date set forth below, for the benefit of the beneficial owners of the Bonds and
in order to assist the Participating Underwriter in complying with the requirements of the Rule (as
defined below). The Issuer represents that it will be the only obligated person with respect to the
Bonds at the time the Bonds are delivered to the Participating Underwriter and that no other person
is expected to become so committed at any time after issuance of the Bonds.
Section 2. DEFINITIONS. The terms set forth below shall have the following meanings
in this Agreement, unless the context clearly otherwise requires.
“Annual Financial Information” means the financial information and operating data
described in Exhibit I.
“Annual Financial Information Disclosure” means the dissemination of disclosure
concerning Annual Financial Information and the dissemination of the Audited Financial
Statements as set forth in Section 4.
“Audited Financial Statements” means the audited financial statements of the Issuer
prepared pursuant to the standards and as described in Exhibit I.
“Commission” means the Securities and Exchange Commission.
“Dissemination Agent” means any agent designated as such in writing by the Issuer and
which has filed with the Issuer a written acceptance of such designation, and such agent’s
successors and assigns.
“EMMA” means the MSRB through its Electronic Municipal Market Access system for
municipal securities disclosure or through any other electronic format or system prescribed by the
MSRB for purposes of the Rule.
- 2 - Continuing Disclosure Agreement
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Financial Obligation” means (a) a debt obligation, (b) a derivative instrument entered
into in connection with, or pledged as security or a source of payment for, an existing or planned
debt obligation, or (c) a guarantee of (a) or (b) in this definition; provided however, the term
Financial Obligation shall not include municipal securities as to which a final official statement
has been provided to the MSRB consistent with the Rule.
“MSRB” means the Municipal Securities Rulemaking Board.
“Participating Underwriter” means each broker, dealer or municipal securities dealer
acting as an underwriter in the primary offering of the Bonds.
“Reportable Event” means the occurrence of any of the Events with respect to the Bonds
set forth in Exhibit II.
“Reportable Events Disclosure” means dissemination of a notice of a Reportable Event as
set forth in Section 5.
“Rule” means Rule 15c2-12 adopted by the Commission under the Exchange Act, as the
same may be amended from time to time.
“State” means the State of Utah.
“Undertaking” means the obligations of the Issuer pursuant to Sections 4 and 5.
Section 3. CUSIP NUMBER/FINAL OFFICIAL STATEMENT. The CUSIP Numbers of the
Bonds are as follows:
JUNE 15
OF THE YEAR
CUSIP
NUMBER
JUNE 15
OF THE YEAR
CUSIP
NUMBER
The Final Official Statement relating to the Bonds is dated __________, 2021 (the “Final Official
Statement”). The Issuer will include the CUSIP Number in all disclosure described in Sections 4
and 5 of this Agreement.
- 3 - Continuing Disclosure Agreement
Section 4. ANNUAL FINANCIAL INFORMATION DISCLOSURE. Subject to Section 8 of this
Agreement, the Issuer hereby covenants that it will disseminate its Annual Financial Information
and its Audited Financial Statements (in the form and by the dates set forth in Exhibit I) to EMMA
in such manner and format and accompanied by identifying information as is prescribed by the
MSRB or the Commission at the time of delivery of such information and by such time so that
such entities receive the information by the dates specified. MSRB Rule G-32 requires all EMMA
filings to be in word-searchable PDF format. This requirement extends to all documents to be
filed with EMMA, including financial statements and other externally prepared reports.
If any part of the Annual Financial Information can no longer be generated because the
operations to which it is related have been materially changed or discontinued, the Issuer will
disseminate a statement to such effect as part of its Annual Financial Information for the year in
which such event first occurs.
If any amendment or waiver is made to this Agreement, the Annual Financial Information
for the year in which such amendment or waiver is made (or in any notice or supplement provided
to EMMA) shall contain a narrative description of the reasons for such amendment or waiver and
its impact on the type of information being provided.
Section 5. REPORTABLE EVENTS DISCLOSURE. Subject to Section 8 of this Agreement,
the Issuer hereby covenants that it will disseminate in a timely manner (not in excess of ten
business days after the occurrence of the Reportable Event) Reportable Events Disclosure to
EMMA in such manner and format and accompanied by identifying information as is prescribed
by the MSRB or the Commission at the time of delivery of such information. MSRB Rule G-32
requires all EMMA filings to be in word-searchable PDF format. This requirement extends to all
documents to be filed with EMMA, including financial statements and other externally prepared
reports. Notwithstanding the foregoing, notice of optional or unscheduled redemption of any
Bonds or defeasance of any Bonds need not be given under this Agreement any earlier than the
notice (if any) of such redemption or defeasance is given to the Bondholders pursuant to the
Resolution.
Section 6. CONSEQUENCES OF FAILURE OF THE ISSUER TO PROVIDE INFORMATION. The
Issuer shall give notice in a timely manner to EMMA of any failure to provide Annual Financial
Information Disclosure when the same is due hereunder.
In the event of a failure of the Issuer to comply with any provision of this Agreement, the
beneficial owner of any Bond may seek mandamus or specific performance by court order, to
cause the Issuer to comply with its obligations under this Agreement. The beneficial owners of
25% or more in principal amount of the Bonds outstanding may challenge the adequacy of the
information provided under this Agreement and seek specific performance by court order to cause
the Issuer to provide the information as required by this Agreement. A default under this
Agreement shall not be deemed a default under the Resolution, and the sole remedy under this
Agreement in the event of any failure of the Issuer to comply with this Agreement shall be an
action to compel performance.
- 4 - Continuing Disclosure Agreement
Section 7. AMENDMENTS; WAIVER. Notwithstanding any other provision of this
Agreement, the Issuer by resolution authorizing such amendment or waiver, may amend this
Agreement, and any provision of this Agreement may be waived, if:
(a) (i) the amendment or waiver is made in connection with a change in
circumstances that arises from a change in legal requirements, including without limitation,
pursuant to a “no-action” letter issued by the Commission, a change in law, or a change in
the identity, nature, or status of the Issuer, or type of business conducted; or
(ii) this Agreement, as amended, or the provision, as waived, would
have complied with the requirements of the Rule at the time of the primary offering,
after taking into account any amendments or interpretations of the Rule, as well as
any change in circumstances; and
(b) the amendment or waiver does not materially impair the interests of the
beneficial owners of the Bonds, as determined by parties unaffiliated with the Issuer (such
as Bond Counsel).
In the event that the Commission or the MSRB or other regulatory authority shall approve
or require Annual Financial Information Disclosure or Reportable Events Disclosure to be made
to a central post office, governmental agency or similar entity other than EMMA or in lieu of
EMMA, the Issuer shall, if required, make such dissemination to such central post office,
governmental agency or similar entity without the necessity of amending this Agreement.
Section 8. TERMINATION OF UNDERTAKING. The Undertaking of the Issuer shall be
terminated hereunder if the Issuer shall no longer have any legal liability for any obligation on or
relating to repayment of the Bonds under the Resolution. The Issuer shall give notice to EMMA
in a timely manner if this Section is applicable.
Section 9. DISSEMINATION AGENT. The Issuer may, from time to time, appoint or engage
a Dissemination Agent to assist it in carrying out its obligations under this Agreement, and may
discharge any such Dissemination Agent, with or without appointing a successor Dissemination
Agent.
Section 10. ADDITIONAL INFORMATION. Nothing in this Agreement shall be deemed to
prevent the Issuer 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 Financial Information Disclosure or notice of occurrence of a Reportable Event, in
addition to that which is required by this Agreement. If the Issuer chooses to include any
information from any document or notice of occurrence of a Reportable Event in addition to that
which is specifically required by this Agreement, the Issuer shall have no obligation under this
Agreement to update such information or include it in any future disclosure or notice of occurrence
of a Reportable Event. If the Issuer is changed, the Issuer shall disseminate such information to
EMMA.
- 5 - Continuing Disclosure Agreement
Section 11. BENEFICIARIES. This Agreement has been executed in order to assist the
Participating Underwriter in complying with the Rule; however, this Agreement shall inure solely
to the benefit of the Issuer, the Dissemination Agent, if any, and the beneficial owners of the
Bonds, and shall create no rights in any other person or entity.
Section 12. RECORDKEEPING. The Issuer shall maintain records of all Annual Financial
Information Disclosure and Reportable Events Disclosure, including the content of such
disclosure, the names of the entities with whom such disclosure was filed and the date of filing
such disclosure.
Section 13. ASSIGNMENT. The Issuer shall not transfer its obligations under the Resolution
unless the transferee agrees to assume all obligations of the Issuer under this Agreement or to
execute an Undertaking under the Rule.
Section 14. GOVERNING LAW. This Agreement shall be governed by the laws of the State.
(Signature page follows.)
- 6 - Continuing Disclosure Agreement
DATED as of the day and year first above written.
SALT LAKE CITY, UTAH
By ____________________________________
Mayor
Address: 451 South State Street
Salt Lake City, Utah 84111
ATTEST AND COUNTERSIGN:
By______________________________
City Recorder
APPROVED AS TO FORM:
By ____________________________________
Senior City Attorney
EXHIBIT I Continuing Disclosure Agreement
EXHIBIT I
ANNUAL FINANCIAL INFORMATION AND TIMING AND AUDITED FINANCIAL STATEMENTS
“Annual Financial Information” means financial information and operating data of the
type contained in the Official Statement under the following captions:
CAPTION PAGE
DEBT STRUCTURE OF SALT LAKE CITY, UTAH ...........................................................
— Outstanding Debt Issues .....................................................................................
— Overlapping General Obligation Debt ...............................................................
— General Obligation Legal Debt Limit and Additional Debt Incurring Capacity
FINANCIAL INFORMATION REGARDING SALT LAKE CITY, UTAH ..........................
— Sources of General Fund Revenues ...................................................................
— Five-Year Financial Summaries .........................................................................
— Taxable and Fair Market Value of Property ......................................................
— Tax Collection Record .......................................................................................
— Some of the Largest Taxpayers in the City ........................................................
All or a portion of the Annual Financial Information and the Audited Financial Statements
as set forth below may be included by reference to other documents which have been submitted to
EMMA or filed with the Commission. If the information included by reference is contained in a
Final Official Statement, the Final Official Statement must be available on EMMA; the Final
Official Statement need not be available from the Commission. The Issuer shall clearly identify
each such item of information included by reference.
Annual Financial Information exclusive of Audited Financial Statements will be submitted
to EMMA, not later than 185 days after the end of each fiscal year of the Issuer, beginning with
the fiscal year ended June 30, 2021. Audited Financial Statements as described below should be
filed at the same time as the Annual Financial Information. If Audited Financial Statements are
not available when the Annual Financial Information is filed, unaudited financial statements shall
be included.
Audited Financial Statements will be prepared pursuant to generally accepted accounting
principles applicable to governmental units in general and Utah cities, in particular. Audited
Financial Statements will be submitted to EMMA within 30 days after availability to Issuer.
If any change is made to the Annual Financial Information as permitted by Section 4 of the
Agreement, the Issuer will disseminate a notice of such change as required by Section 4.
EXHIBIT II Continuing Disclosure Agreement
EXHIBIT II
EVENTS WITH RESPECT TO THE BONDS
FOR WHICH REPORTABLE EVENTS DISCLOSURE IS REQUIRED
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 security, or other
material events affecting the tax status of the security
7. Modifications to the rights of security holders, if material
8. Bond calls, if material, and tender offers
9. Defeasances
10. Release, substitution or sale of property securing repayment of the securities, if material
11. Rating changes
12. Bankruptcy, insolvency, receivership or similar event of the Issuer∗
13. The consummation of a merger, consolidation, or acquisition involving the Issuer or the
sale of all or substantially all of the assets of the Issuer, 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 Issuer, if material, or agreement to covenants,
events of default, remedies, priority rights, or other similar terms of a Financial Obligation
of the Issuer, any of which affect security holders, 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 Issuer, any of which reflect financial
difficulties
NOTE: DO NOT DELETE ANY EVENT, EVEN IF IT IS INAPPLICABLE TO YOUR TRANSACTION.
∗ This event is considered to occur when any of the following occur: the appointment of a receiver, fiscal
agent or similar officer for the Issuer 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 Issuer, 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 Issuer.
Exhibit 2 Delegating Bond Resolution
EXHIBIT 2
[ATTACH FORM OF OFFICIAL STATEMENT]
Draft of 9/21/21 PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER __, 2021
____________________
* Preliminary; subject to change.
Exhibit 2-Official Statement.docx—8710600/RDB/mo This Preliminary Official Statement and the information contained herein are subject to completion, amendment or other change without any notice. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction NEW ISSUE — Issued in Book-Entry Form Only RATINGS: Moody’s “____”
Fitch “____”
See “BOND RATINGS” herein.
Subject to compliance by the City with certain covenants, in the opinion of Chapman and Cutler LLP, Bond
Counsel, under present law, interest on the Bonds is excludable from gross income of the owners thereof for federal
income tax purposes and is not included as an item of tax preference in computing the federal alternative minimum
tax for individuals. In the opinion of Bond Counsel, under the existing laws of the State of Utah, as presently enacted
and construed, interest on the Bonds is exempt from taxes imposed by the Utah Individual Income Tax Act. See “TAX
TREATMENT” herein for a more complete discussion.
$__________*
SALT LAKE CITY, UTAH
GENERAL OBLIGATION BONDS
SERIES 2021
DATED: Date of Original Issuance and Delivery DUE: June 15, as shown below
The $__________* General Obligation Bonds, Series 2021 (the “Bonds”), dated the date of original issuance
and delivery thereof, are issuable by Salt Lake City, Utah (the “City”) as fully-registered bonds and, when initially
issued, will be in book-entry form only, registered in the name of Cede & Co., as nominee for The Depository Trust
Company, New York, New York (“DTC”). DTC will act as securities depository for the Bonds.
Principal of and interest on the Bonds (interest payable June 15 and December 15 of each year, commencing
________ 15, 202_) are payable by U.S. Bank National Association, Salt Lake City, Utah, as Paying Agent, to the
registered owners thereof, initially DTC. See “THE BONDS — Book-Entry System” herein.
The Bonds are subject to optional redemption prior to maturity as described more fully under the heading
“THE BONDS — Redemption Provisions” herein.
The Bonds will be general obligations of the City payable from the proceeds of ad valorem taxes to be levied
without limitation as to rate or amount on all of the taxable property in the City, fully sufficient to pay the Bonds as
to both principal and interest.
Maturity Schedule
(see inside cover)
The Bonds will be awarded pursuant to competitive bidding to be held via the PARITY® electronic bid
submission system on ________, __________, 2021, as set forth in the Official Notice of Bond Sale (dated the
date of this Preliminary Official Statement).
Stifel, Nicolaus & Company, Incorporated, Salt Lake City, Utah, is acting as Municipal Advisor.
The Bonds are offered when, as and if issued and received by the successful bidder(s), subject to the approval
of legality by Chapman and Cutler LLP, Bond Counsel to the City, and certain other conditions. Certain legal matters
will be passed upon for the City by Katherine N. Lewis, City Attorney. Certain legal matters regarding this Official
Statement will be passed upon for the City by Chapman and Cutler LLP, Disclosure Counsel. It is expected that the
Bonds will be available for delivery, in book-entry form only, through the facilities of DTC on or about November 30,
2021.
This cover page contains certain information for quick reference only. It is not a summary of this issue.
Investors must read the entire Official Statement to obtain information essential to the making of an informed
investment decision.
This Official Statement is dated __________, 2021 and the information contained herein speaks only as of
that date.
MATURITY SCHEDULE *
$__________
SALT LAKE CITY, UTAH
GENERAL OBLIGATION BONDS
SERIES 2021
DUE
JUNE 15
PRINCIPAL
AMOUNT
INTEREST
RATE
YIELD
CUSIP
795574
$ % %
____________________
[* Yield to par call on June 15, 20__.]
* Preliminary; subject to change.
- i -
$__________*
SALT LAKE CITY, UTAH
GENERAL OBLIGATION BONDS
SERIES 2021
Salt Lake City
City and County Building
451 South State Street
Salt Lake City, Utah 84111
(801) 535-7946
CITY COUNCIL
Amy Fowler .............................................................................................................................. Council Chair
James Rogers ................................................................................................................... Council Vice Chair
Daniel Dugan ....................................................................................................................... Council Member
Dennis Faris ......................................................................................................................... Council Member
Darin Mano .......................................................................................................................... Council Member
Analia Valdemoros .............................................................................................................. Council Member
Chris Wharton ...................................................................................................................... Council Member
CITY ADMINISTRATION
Erin J. Mendenhall ................................................................................................................................ Mayor
Rachel Otto ............................................................................................................................... Chief of Staff
Katherine N. Lewis ................................................................................................................... City Attorney
Cindy Lou Trishman ................................................................................................................. City Recorder
Marina Scott ............................................................................................................................. City Treasurer
BOND COUNSEL INDEPENDENT AUDITORS
Chapman and Cutler LLP Eide Bailly LLP
215 South State, Suite 800 5 Triad Center, Suite 600
Salt Lake City, Utah 84111 Salt Lake City, Utah 84180
(801) 533-0066 (801) 532-2200
MUNICIPAL ADVISOR BOND REGISTRAR AND PAYING AGENT
Stifel, Nicolaus & Company, Incorporated U.S. Bank National Association
15 West South Temple, Suite 1090 170 South Main Street, Suite 200
Salt Lake City, Utah 84101 Salt Lake City, Utah 84101
(385) 799-7231 (801) 534-6083
* Preliminary; subject to change,
- ii -
This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there
be any sale of, the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer,
solicitation or sale. No dealer, broker, salesman or other person has been authorized to give any information or to
make any representations other than those contained herein, and if given or made, such other information or
representations must not be relied upon as having been authorized by either the City or the successful bidder(s). All
information contained herein has been obtained from the City, DTC and from other sources which are believed to be
reliable. The information and expressions of opinion herein are subject to change without notice and neither the
delivery of this Official Statement nor the issuance, sale, delivery or exchange of the Bonds, shall under any
circumstance 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 hereof.
The Bonds have not been registered under the Securities Act of 1933, as amended, or any state securities
laws in reliance upon exemptions contained in such act and laws. Any registration or qualification of the Bonds in
accordance with applicable provisions of the securities laws of the states in which the Bonds have been registered or
qualified and the exemption from registration or qualification in other states cannot be regarded as a recommendation
thereof. Neither the Securities and Exchange Commission nor any state securities commission has passed upon the
accuracy or adequacy of this Official Statement. Any representation to the contrary is unlawful.
The yields at which the Bonds are offered to the public may vary from the initial offering yields on the inside
cover page of this Official Statement. In addition, the successful bidder(s) may allow concessions or discounts from
the initial offering prices of the Bonds to dealers and others. In connection with the offering of the Bonds, the
successful bidder(s) may engage in transactions that stabilize, maintain, or otherwise affect the price of the Bonds.
Such transactions may include overallotments in connection with the purchase of Bonds, the purchase of Bonds to
stabilize their market price and the purchase of Bonds to cover the successful bidder(s)’s short positions. Such
transactions, if commenced, may be discontinued at any time.
Cautionary Statements Regarding Forward–Looking Statements. Certain statements included in this Official
Statement constitute “forward–looking statements” within the meaning of the federal securities laws. Such statements
are generally identifiable by the terminology used, such as “plan,” “project,” “forecast,” “expect,” “estimate,”
“budget” or other similar words. The achievement of certain results or other expectations contained in such forward-
looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results,
performance or achievements described to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Except as required by its Continuing
Disclosure Agreement for the Bonds, the City does not plan to issue any updates or revisions to those forward-looking
statements if or when its expectations change or events, conditions or circumstances on which such statements are
based occur.
The CUSIP (the Committee on Uniform Securities Identification Procedures) identification numbers are
provided on the cover page of this Official Statement and are being provided solely for the convenience of bondholders
only, and the Board does not make any representation with respect to such numbers or undertake any responsibility
for their accuracy. The CUSIP numbers are subject to being changed after the issuance of the Bonds as a result of
various subsequent actions including, but not limited to, a refunding in whole or in part of the Bonds.
The information available at the internet sites referenced in this Official Statement has not been reviewed for
accuracy or completeness. Such information is not incorporated by reference into this Official Statement and may not
be relied upon by investors in determining whether to purchase the Bonds and is not a part of this Official Statement.
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TABLE OF CONTENTS
PAGE
INTRODUCTION .................................................................................................................................1
The Bonds ...............................................................................................................................1
The City ..................................................................................................................................1
Security and Source of Payment .............................................................................................1
Authority and Purpose ............................................................................................................1
Redemption Provisions ...........................................................................................................2
Registration, Denominations and Manner of Payment ...........................................................2
Tax Status................................................................................................................................3
Conditions of Delivery, Anticipated Date, Manner and Place of Delivery ............................3
Basic Documentation ..............................................................................................................3
Contact Persons .......................................................................................................................3
Public Sale/Electronic Bid ......................................................................................................4
THE BONDS .......................................................................................................................................4
General ....................................................................................................................................4
Sources and Uses of Funds .....................................................................................................5
Security and Sources of Payment ...........................................................................................5
Redemption Provisions ...........................................................................................................5
Registration and Transfer ........................................................................................................6
Book-Entry System .................................................................................................................7
Debt Service Requirements...................................................................................................10
SALT LAKE CITY, UTAH .................................................................................................................10
City Officials .........................................................................................................................10
City Administration ..............................................................................................................11
Employee Workforce and Retirement System; Postemployment Benefits ..........................12
Population .............................................................................................................................13
Property Value of Pre-Authorized Construction in the City .................................................13
Sales and Building in Salt Lake County ...............................................................................13
Income and Wages in Salt Lake County ...............................................................................14
Business and Industry ...........................................................................................................14
Labor Market Data of Salt Lake County...............................................................................16
Rate of Unemployment — Annual Average .........................................................................16
DEBT STRUCTURE OF SALT LAKE CITY, UTAH ...............................................................................17
Outstanding Debt Issues .......................................................................................................17
Debt Service Schedule of Outstanding General Obligation Bonds ......................................18
Future Debt Plans ..................................................................................................................18
Overlapping General Obligation Debt ..................................................................................20
Debt Ratios............................................................................................................................20
General Obligation Legal Debt Limit and Additional Debt Incurring Capacity ..................21
No Defaulted Obligations .....................................................................................................21
FINANCIAL INFORMATION REGARDING SALT LAKE CITY, UTAH ....................................................21
PAGE
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Fund Structure; Accounting Basis ........................................................................................21
Financial Controls .................................................................................................................22
Budget and Appropriation Process .......................................................................................22
Insurance Coverage ...............................................................................................................23
Investment Policy..................................................................................................................24
Property Tax Matters ............................................................................................................26
Tax Levy and Collection .......................................................................................................27
Public Hearing on Certain Tax Increases ..............................................................................29
Sources of General Fund Revenues ......................................................................................29
Five-Year Financial Summaries ...........................................................................................30
Historical City Tax Rates ......................................................................................................35
Comparative Property Tax Rates Within Salt Lake County .................................................35
Taxable and Fair Market Value of Property .........................................................................36
Historical Summaries of Taxable Values of Property ..........................................................37
Tax Collection Record ..........................................................................................................38
Some of the Largest Taxpayers in the City ...........................................................................38
Recent Developments ...........................................................................................................38
INVESTMENT CONSIDERATIONS ......................................................................................................40
Potential Impact of the Coronavirus .....................................................................................40
Climate Change .....................................................................................................................40
Cybersecurity ........................................................................................................................40
TAX TREATMENT ............................................................................................................................41
Utah Income Taxation...........................................................................................................43
LITIGATION .....................................................................................................................................44
CONTINUING DISCLOSURE ..............................................................................................................44
APPROVAL OF LEGAL PROCEEDINGS ...............................................................................................45
BOND RATINGS ...............................................................................................................................45
MUNICIPAL ADVISOR ......................................................................................................................45
INDEPENDENT AUDITORS ................................................................................................................46
MISCELLANEOUS ............................................................................................................................46
APPENDIX A — SALT LAKE CITY CORPORATION FINANCIAL STATEMENTS FOR THE
FISCAL YEAR ENDED JUNE 30, 2020 ............................................................ A-1
APPENDIX B — FORM OF CONTINUING DISCLOSURE AGREEMENT .........................................B-1
APPENDIX C — PROPOSED FORM OF OPINION OF BOND COUNSEL .........................................C-1
$__________*
SALT LAKE CITY, UTAH
GENERAL OBLIGATION BONDS
SERIES 2021
INTRODUCTION
This introduction is only a brief description of the Bonds, as hereinafter defined, the
security and source of payment for the Bonds and certain information regarding Salt Lake City,
Utah (the “City”). The information contained herein is expressly qualified by reference to the
entire Official Statement. Investors should make a full review of the entire Official Statement.
See the following appendices that are attached hereto: “APPENDIX A — SALT LAKE CITY
CORPORATION FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020;”
“APPENDIX B — FORM OF CONTINUING DISCLOSURE AGREEMENT” and “APPENDIX C —
PROPOSED FORM OF OPINION OF BOND COUNSEL.”
THE BONDS
This Official Statement, including the cover page, introduction and appendices, provides
information in connection with the issuance and sale by the City of its $__________* General
Obligation Bonds, Series 2021 (the “Bonds”), each dated the date of original issuance and delivery
thereof, initially issued in book-entry form only.
THE CITY
The City is a municipal corporation and political subdivision of the State of Utah (the
“State”) and is the capital of the State. The City is the most populous city in the State with an
estimated 2020 population of approximately 200,830 residents. The City has a council-mayor
form of government. For more information with respect to the City see “SALT LAKE CITY, UTAH.”
SECURITY AND SOURCE OF PAYMENT
The Bonds will be general obligations of the City, payable from the proceeds of ad valorem
taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the City,
fully sufficient to pay the Bonds as to both principal and interest. See “THE BONDS — Security
and Sources of Payment” and “FINANCIAL INFORMATION REGARDING SALT LAKE CITY, UTAH —
Tax Levy and Collection.”
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to (a) the Local Government Bonding Act, Chapter 14
of Title 11 (the “Local Government Bonding Act”) of the Utah Code Annotated 1953, as amended
* Preliminary; subject to change,
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(the “Utah Code”), the Registered Public Obligations Act, Chapter 7 of Title 15 of the Utah Code,
and the applicable provisions of Title 10 of the Utah Code (collectively, the “Act”), (b) Resolution
No. __-2021 of the City adopted on [September 21], 2021 (the “Resolution”), which provides for
the issuance of the Bonds, and (c) other applicable provisions of law.
The Bonds were authorized by an affirmative vote of 67.51% of the voters at a special bond
election held for that purpose on November 6, 2018. The proposition submitted to the voters was
as follows:
City Proposition Number 1
Shall Salt Lake City, Utah, be authorized to issue General Obligation Bonds in a
principal amount not to exceed $87,000,000 and to mature in no more than 21 years
from the date or dates of issuance; such bonds will be issued to pay all or a portion
of the costs to improve various streets and roads throughout the City and related
infrastructure improvements?
The Bonds are the third block of bonds to be issued from the November 6, 2018 voted
authorization. After the sale and delivery of the Bonds, the City will have approximately
$__________* of authorized, but unissued, bonds from the November 6, 2018 voted authorization.
The Bonds are also being issued for the purpose of paying certain costs of issuance. See
“THE BONDS — Sources and Uses of Funds.”
REDEMPTION PROVISIONS
The Bonds are subject to optional redemption prior to maturity as described more fully
under the heading “THE BONDS — Redemption Provisions” herein.
REGISTRATION, DENOMINATIONS AND MANNER OF PAYMENT
The Bonds are issuable only as fully-registered bonds and, when initially issued, will be
registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York,
New York (“DTC”), which will act as securities depository of the Bonds. Purchases of Bonds
will be made in book-entry form only, in the principal amount of $5,000 or any whole multiple
thereof, through brokers and dealers who are, or who act through, DTC participants. Beneficial
owners of the Bonds will not be entitled to receive physical delivery of bond certificates so long
as DTC or a successor securities depository acts as the securities depository with respect to the
Bonds.
Principal of and interest on the Bonds (interest payable June 15 and December 15 of each
year, commencing __________ 15, 20__) are payable by U.S. Bank National Association, Salt
Lake City, Utah, as Paying Agent (the “Paying Agent”), to the registered owners of the Bonds.
So long as DTC is the registered owner, it will, in turn, remit such principal and interest to its
* Preliminary; subject to change.
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participants, for subsequent disbursements to the beneficial owners of the Bonds, as described in
“THE BONDS — Book-Entry System.”
TAX STATUS
Subject to compliance by the City with certain covenants, in the opinion of Chapman and
Cutler LLP, Bond Counsel, under present law, interest on the Bonds is excludable from gross
income of the owners thereof for federal income tax purposes, is not included as an item of tax
preference in computing the federal alternative minimum tax for individuals.
In the opinion of Bond Counsel, under the existing laws of the State, as presently enacted
and construed, interest on the Bonds is exempt from taxes imposed by the Utah Individual Income
Tax Act. See “TAX TREATMENT” for a more complete discussion.
CONDITIONS OF DELIVERY, ANTICIPATED DATE, MANNER AND PLACE OF DELIVERY
The Bonds are offered when, as and if issued and received by the successful bidder(s),
subject to the approval of legality of the Bonds by Chapman and Cutler LLP, Bond Counsel, and
certain other conditions. Certain legal matters will be passed upon for the City by the City
Attorney. Certain legal matters regarding this Official Statement will be passed upon for the City
by Chapman and Cutler LLP, Disclosure Counsel. It is expected that the Bonds, in book-entry
form only, will be available for delivery through the facilities of DTC on or about Tuesday,
November 30, 2021.
BASIC DOCUMENTATION
The “basic documentation,” which includes the Resolution, the closing documents and
other documentation authorizing the issuance of the Bonds and establishing the rights and
responsibilities of the City and other parties to the transaction, may be obtained from the “contact
persons” listed below.
CONTACT PERSONS
As of the date of this Official Statement, the chief contact person for the City concerning
the Bonds is:
Marina Scott, City Treasurer
451 South State Street, Room 228
P.O. Box 145462
Salt Lake City, Utah 84114-5462
(801) 535-6565
marina.scott@slcgov.com
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Additional requests for information may be directed to the City’s Municipal Advisor as
follows:
John Crandall, Executive Director
Elizabeth Read, Director
Stifel, Nicolaus & Company, Incorporated
15 West South Temple, Suite 1090
Salt Lake City, Utah 84101
(385) 799-7231
crandallj@stifel.com
reade@stifel.com
PUBLIC SALE/ELECTRONIC BID
The Bonds were awarded pursuant to competitive bidding held via the PARITY®
electronic bid submission system on Wednesday, November 3, 2021, as set forth in the Official
Notice of Bond Sale (dated October 27, 2021) to _______________ of __________, __________
(the “Purchaser”), at a “true interest rate” of ________%.
THE BONDS
GENERAL
The Bonds will be dated the date of original issuance and delivery thereof and will mature
on June 15 of the years and in the amounts as set forth on the inside cover page of this Official
Statement.
The Bonds will bear interest from their date at the rates set forth on the cover page of this
Official Statement. Interest on the Bonds is payable semiannually on each June 15 and
December 15, commencing __________ 15, 202_. Interest on the Bonds will be computed on the
basis of a 360-day year of twelve 30-day months. U.S. Bank National Association, Salt Lake City,
Utah, is the Bond Registrar for the Bonds under the Resolution (the “Bond Registrar”).
The Bonds will be issued as fully-registered bonds, initially in book-entry form only, in the
denomination of $5,000 or any whole multiple thereof, not exceeding the amount of each maturity.
The Bonds are being issued within the constitutional debt limit imposed on the City. See
“DEBT STRUCTURE OF SALT LAKE CITY, UTAH — General Obligation Legal Debt Limit and
Additional Debt Incurring Capacity.”
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SOURCES AND USES OF FUNDS
The sources and uses of funds in connection with the issuance of the Bonds are estimated
to be as follows:
SOURCES:
Par amount of Bonds $
Original issue premium
TOTAL $
USES:
Purchaser’s Discount $
Project Construction Account
Costs of issuance(1)
TOTAL $
_________________________
(1) Includes Municipal Advisor fees, legal fees, rating agency fees, registrar and paying agent fees, printing and other
miscellaneous costs of issuance.
SECURITY AND SOURCES OF PAYMENT
The Bonds will be general obligations of the City, payable from the proceeds of ad valorem
taxes to be levied without limitation as to rate or amount on all of the taxable property in the City,
fully sufficient to pay the Bonds as to both principal and interest. See “FINANCIAL INFORMATION
REGARDING SALT LAKE CITY, UTAH — Property Tax Matters.”
REDEMPTION PROVISIONS
Optional Redemption. The Bonds maturing on or after June 15, 20__, are subject to
redemption prior to maturity, at the election of the City, on __________ 15, 20__ (the “First
Redemption Date”), and on any date thereafter, in whole or in part, from such maturities or parts
thereof as will be selected by the City, upon notice given as provided in the Resolution and
described below, at a redemption price equal to 100% of the principal amount of the Bonds to be
redeemed plus accrued interest thereon to the date fixed for redemption. Bonds maturing on or
prior to the First Redemption Date are not subject to optional redemption.
Selection for Redemption. If less than all of the Bonds of any maturity are to be redeemed,
the particular Bonds or portion of Bonds of such maturity to be redeemed will be selected at
random by the Bond Registrar in such manner as the Bond Registrar in its discretion may deem
fair and appropriate. The portion of any registered Bond of a denomination of more than $5,000
to be redeemed will be in the principal amount of $5,000 or a whole multiple thereof, and in
selecting portions of such Bonds for redemption, the Bond Registrar will treat each such Bond as
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representing that number of Bonds of $5,000 denomination that is obtained by dividing the
principal amount of such Bond by $5,000.
Notice of Redemption. Notice of redemption will be given by the Bond Registrar by
registered or certified mail, not less than 30 nor more than 45 days prior to the redemption date, to
the owner thereof, as of the Record Date, as defined in “THE BONDS — Registration and Transfer,”
of each Bond that is subject to redemption, at the address of such owner as it appears in the
registration books of the City kept by the Bond Registrar, or at such other address as is furnished
to the Bond Registrar in writing by such owner on or prior to the Record Date. Each notice of
redemption will state the Record Date, the principal amount, the redemption date, the place of
redemption, the redemption price and, if less than all of the Bonds are to be redeemed, the
distinctive numbers of the Bonds or portions of Bonds to be redeemed, and will also state that the
interest on the Bonds in such notice designated for redemption will cease to accrue from and after
such redemption date and that on the redemption date there will become due and payable on each
of the Bonds to be redeemed the principal thereof and interest accrued thereon to the redemption
date. Each notice of optional redemption may further state that such redemption will be
conditioned upon the receipt by the Paying Agent, on or prior to the date fixed for such redemption,
of moneys sufficient to pay the principal of and premium, if any, and interest on such Bonds to be
redeemed and that if such moneys have not been so received said notice will be of no force and
effect and the City will not be required to redeem such Bonds. In the event that such notice of
redemption contains such a condition and such moneys are not so received, the redemption will
not be made and the Bond Registrar will within a reasonable time thereafter give notice, in the
manner in which the notice of redemption was given, that such moneys were not so received. Any
notice mailed as described above will be conclusively presumed to have been duly given, whether
or not the Bondowner receives such notice. Failure to give such notice or any defect therein with
respect to any Bond will not affect the validity of the proceedings for redemption with respect to
any other Bond.
In addition to the foregoing notice, further notice of such redemption will be given by the
Bond Registrar to certain registered national securities depositories and national information
services as provided in the Bond Resolution, but no defect in such further notice or any failure to
give all or any portion of such further notice will in any manner affect the validity of a call for
redemption if notice thereof is given as prescribed above and in the Bond Resolution.
For so long as a book-entry system is in effect with respect to the Bonds, the Bond Registrar
will mail notices of redemption to DTC or its successor. Any failure of DTC to convey such notice
to any DTC participants or any failure of the DTC participants or indirect participants to convey
such notice to any beneficial owner will not affect the sufficiency of the notice or the validity of the
redemption of the Bonds. See “THE BONDS — Book-Entry System.”
REGISTRATION AND TRANSFER
In the event the book-entry system is discontinued, any Bond may, in accordance with its
terms, be transferred, upon the registration books kept by the Bond Registrar, by the person in
whose name it is registered, in person or by such owner’s duly authorized attorney, upon surrender
of such Bond for cancellation, accompanied by delivery of a duly executed written instrument of
- 7 -
transfer in a form approved by the Bond Registrar. No transfer will be effective until entered on
the registration books kept by the Bond Registrar. Whenever any Bond is surrendered for transfer,
the Bond Registrar will authenticate and deliver a new fully-registered Bond or Bonds of the same
series, designation, maturity and interest rate and of authorized denominations duly executed by
the City, for a like aggregate principal amount.
Bonds may be exchanged at the principal corporate trust office of the Bond Registrar for a
like aggregate principal amount of fully-registered Bonds of the same series, designation, maturity
and interest rate of other authorized denominations.
For every such exchange or transfer of the Bonds, the Bond Registrar must make a charge
sufficient to reimburse it for any tax or other governmental charge required to be paid with respect
to such exchange or transfer of the Bonds.
The Bond Registrar will not be required to transfer or exchange any Bond (a) after the
Record Date, as defined below, with respect to any interest payment date to and including such
interest payment date, or (b) after the Record Date with respect to any redemption of such Bond.
“Record Date” means the day that is 15 days preceding each interest payment date, or if such day
is not a business day for the Bond Registrar, the next preceding day that is a business day for the
Bond Registrar.
The City, the Bond Registrar and the Paying Agent may treat and consider the person in
whose name each Bond is registered in the registration books kept by the Bond Registrar as the
holder and absolute owner thereof for the purpose of receiving payment of, or on account of, the
principal or redemption price thereof and interest due thereon and for all other purposes
whatsoever.
BOOK-ENTRY SYSTEM
The Depository Trust Company (“DTC”), New York, NY, will act as securities depository
for the Bonds. The 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 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with
DTC.
DTC, the world’s largest 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’s
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
- 8 -
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, banks, 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
applicable 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 the Bonds under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Bonds on DTC’s records. The ownership interest
of each actual purchaser of each 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 the Bonds are to be accomplished by entries made on the books of Direct
and Indirect Participants acting on behalf of Beneficial Owners. Beneficial Owners will not
receive certificates representing their ownership interests in the Bonds, except in the event that use
of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all 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 the 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 Bonds;
DTC’s records reflect only the identity of the Direct Participants to whose accounts such 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.
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
regulatory requirements as may be in effect from time to time. Beneficial Owners of the Bonds
may wish to take certain steps to augment transmission to them of notices of significant events
with respect to the Bonds, such as redemptions, tenders, defaults, and proposed amendments to the
Bond documents. For example, Beneficial Owners of the Bonds may wish to ascertain that the
nominee holding the Bonds for their benefit has agreed to obtain and transmit notices to Beneficial
Owners. In the alternative, Beneficial Owners may wish to provide their names and addresses to
the Bond Registrar and request that copies of notices be provided directly to them.
- 9 -
Redemption notices shall be sent to DTC. If less than all of the Bonds within an issue are
being redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct
Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with
respect to the 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 Bonds are credited on the record date
(identified in a listing attached to the omnibus proxy).
As long as the book-entry system is in effect, redemption proceeds, distributions, and
dividend payments on the Bonds will be made to Cede & Co., or such other nominee as may be
requested by an authorized representative of DTC. DTC’s practice is to credit Direct Participants’
accounts upon DTC’s receipt of funds and corresponding detailed information from the City or the
Paying Agent, on payable date in accordance with their respective holdings shown on DTC’s
records. Payments 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 Paying Agent, or the City, subject to any statutory or regulatory requirements as may be
in effect from time to time. Payment of redemption proceeds, distributions, and dividend payments
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 Paying Agent, disbursement of such payments to
Direct Participants will be the responsibility of DTC, and disbursement of such payments to
Beneficial Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any
time by giving reasonable notice to the City or the Paying Agent. Under such circumstances, in
the event that a successor securities depository is not obtained, Bond certificates 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, Bond certificates will be printed and delivered
to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been
obtained from sources that the City believes to be reliable, but the City takes no responsibility for
the accuracy thereof.
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DEBT SERVICE REQUIREMENTS
The following table shows the debt service requirements for the Bonds for each fiscal year:
FISCAL
YEAR ENDING FISCAL YEAR
JUNE 30 PRINCIPAL* INTEREST TOTAL
$ $ $
TOTAL**: $ $ $
____________________
* Preliminary; subject to change.
** Amounts may not add due to rounding.
SALT LAKE CITY, UTAH
CITY OFFICIALS
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
executive 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, adopts the City budget and provides administrative oversight by conducting
management and operational audits of City departments.
- 11 -
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 1* January 2024
Council Chair #7 Amy Fowler 3 January 2022
Council Vice Chair #1 James Rogers 7 January 2022
Council Member #6 Daniel Dugan 1 January 2024
Council Member #2 Dennis Faris** 0 January 2022
Council Member #5 Darin Mano 1 January 2022
Council Member #4 Analia Valdemoros 2 January 2024
Council Member #3 Chris Wharton 3 January 2022
____________________
* Mayor Mendenhall previously served 6 years as a council member before being elected mayor.
* Council Member Faris was appointed on May 13, 2021 to fill the seat of Andrew Johnston who resigned effective
April 21, 2021.
CITY ADMINISTRATION
The offices of Chief of Staff, City Attorney, City Recorder and City Treasurer are
appointive offices.
Rachel Otto, Chief of Staff, before becoming Mayor Mendenhall’s chief of staff in
November 2019, Rachel Otto worked as Government Relations Director for the Utah League of
Cities and Towns. In that capacity, she developed policy and advocated for local government at
the Utah State Legislature. Rachel, trained as an attorney, also served as a deputy city attorney for
West Jordan, assistant city attorney for South Jordan, and worked in private practice for several
years after graduating from the University of Utah’s College of Law in 2008.
Katherine N. Lewis, City Attorney, was appointed as the Salt Lake City Attorney in January
2020. Ms. Lewis received her law degree from the University of Utah S.J. Quinney College of
Law in 2007 and received her undergraduate degree from Colorado State University in 2001. Ms.
Lewis was a Senior City Attorney in the Salt Lake City Attorney’s Office from 2013-2020 prior
to being appointed the City Attorney. She worked in private practice at Parsons Behle & Latimer
prior to joining the Salt Lake City Attorney’s Office.
Cindy Lou Trishman, City Recorder, was appointed on June 3, 2020. Prior to this position,
Ms. Trishman was employed by the Salt Lake City Council. Her duties included team
management, inauguration and transition of newly elected officials, elected official vacancy
coordination, enhancing government transparency efforts and building process improvements.
Ms. Trishman holds a Bachelor of Science degree in Business and English.
Marina Scott, City Treasurer, was appointed to her position on June 4, 2013. From
December 2006 until her appointment, Ms. Scott was Deputy Treasurer for the City; and from
September 2005 until December 2006 she served as an Accountant III for the Public Services
- 12 -
Department. Ms. Scott holds a Bachelor of Science degree in Accounting, and a Master of
Professional Accountancy from Weber State University. She also holds a Master of Arts in Library
and Information Science from Vilnius State University.
EMPLOYEE WORKFORCE AND RETIREMENT SYSTEM; POSTEMPLOYMENT BENEFITS
Employee Workforce and Retirement System. The City currently employs approximately
2,959 full-time employees and approximately 522 hourly and part-time employees for a total
employment of approximately 3,481 employees. The City participates in three cost-sharing
multiple-employer public employee retirement systems and one multiple-employer agent system
which are defined benefit retirement plans covering public employees of the State and employees
of participating local governmental entities (the “Systems”). The Systems are administered under
the direction of the Utah State Retirement Board whose members are appointed by the Governor
of the State. See “APPENDIX B – SALT LAKE CITY CORPORATION FINANCIAL STATEMENTS FOR THE
FISCAL YEAR ENDED JUNE 30, 2020 – Notes to Financial Statements – Note 6 – Long-Term
Obligations,” “– Note 12 – Pension Plans” and “– Note 13 – Defined Contribution Savings Plans.”
Retirement Liability. The City participates with the Utah Retirement System (“URS”).
URS is funded and administered by the State. Each year, as approved by the State Legislature,
URS sets rates, enacts rules, and implements policies related to the pensions and benefits the City
retirees receive. Starting in Fiscal Year 2015, GASB Statement Number 68 requires URS to pass
on pension and retirement liability to public entities it serves, including the City. Working with
the City’s independent auditors and State specialists, this liability has been recorded on the City’s
financial statements for the Fiscal Year ending June 30, 2020 in the amount of $118,987,870.
No Other Post-Employment Benefits. The City does not offer other post-employment
benefits.
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POPULATION
YEAR
THE
CITY
% INCREASE
FROM PRIOR
PERIOD
SALT
LAKE
COUNTY
% INCREASE
FROM PRIOR
PERIOD
THE
STATE
% INCREASE
FROM PRIOR
PERIOD
2020 Estimate 200,831 0.13% 1,164,589 1.01% 3,273,000 1.64%
2019 Estimate 200,567 (0.01) 1,152,960 0.95 3,220,171 1.87
2018 Estimate 200,591 0.02 1,142,081 0.57 3,161,105 1.91
2017 Estimate 200,544 3.51 1,135,649 1.27 3,101,833 1.66
2016 Estimate 193,744 0.56 1,121,354 1.27 3,051,217 1.85
2015 Estimate 192,672 0.94 1,107,314 1.43 2,995,919 1.80
2014 Estimate 190,884 (0.15) 1,091,742 1.01 2,942,902 1.38
2010 Census 186,440 2.58 1,029,655 14.61 2,763,885 23.77
2000 Census 181,743 13.63 898,387 23.75 2,233,169 29.62
1990 Census 159,936 (1.90) 725,956 17.27 1,722,850 17.92
1980 Census 163,034 (7.31) 619,066 34.99 1,461,037 37.93
1970 Census 175,885 (7.16) 458,607 19.73 1,059,273 18.94
_________________________
(Source: Utah Department of Workforce Services and the U.S. Census Bureau, as revised and subject to periodic
revision)
PROPERTY VALUE OF PRE-AUTHORIZED CONSTRUCTION IN THE CITY
NEW
ADDITIONS,
ALTERATIONS AND REPAIRS
TOTAL
CONSTRUCTION
Year
Number
Dwelling
Units
Residential
Value
($000)
Non-
residential
Value
($000)
Residential
Value
($000)
Non-
residential
Value
($000)
Value
($000)
% Change
from
Prior
Period
2021* 455 $ 98,802.8 $150,169.9 $ 10,312.4 $375,512.3 $ 634,797.4 NA
2020 2,282 309,034.0 418,296.0 105,562.2 620,532.8 1,453,425.0 2.6%
2019 3,894 589,888.3 458,798.9 40,935.1 326,724.3 1,416,316.6 72.1
2018 877 126,957.6 430,249.0 37,989.1 227,906.6 823,102.3 (2.4)
2017 648 99,054.0 428,214.7 35,050.8 280,826.7 843,146.2 (43.1)
2016 3,049 377,547.5 331,676.4 38,680.1 734,678.9 1,482,582.9 155.3
____________________
* Through March 1, 2021.
(Source: Kem C. Gardner Policy Institute, University of Utah—Ivory-Boyer Construction Database.)
SALES AND BUILDING IN SALT LAKE COUNTY
SALES AND BUILDING 2020 2019 2018 2017 2016
Gross Taxable Sales $31,377,750 $30,093,152 $28,846,015 $27,084,521 $25,415,491
Permit Authorized Construction $4,043,270.6 $3,838,632.5 $3,015,289.6 $2,899,665.5 $3,266,939.5
New Dwelling Units 10,553 9,798 8,150 6,602 8,328
New Residential Value 1,929,212.7 1,804,752.7 1,470,556.5 $1,288,967.8 $1,406,216.3
____________________
(Source: Utah Department of Workforce Services and Kem C. Gardner Policy Institute, University of Utah—Ivory-Boyer
Construction Database.)
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INCOME AND WAGES IN SALT LAKE COUNTY
INCOME AND WAGES 2019 2018 2017 2016 2015
Total Personal Income ($000) $64,341,937 $60,971,412 $56,946,401 $53,946,312 $51,331,831
Per Capita Income $55,446 $53,079 $50,097 $48,162 $45,569
Median Household Income Estimates $79,941 $73,619 $71,396 $68,404 $65,549
Average Monthly Nonfarm Wage $4,724 $4,513 $4,337 $4,211 $4,120
____________________
(Source: Utah Department of Workforce Services.)
BUSINESS AND INDUSTRY {TO BE UPDATED.}
TAXABLE SALES AND LOCAL OPTION SALES TAX ALLOCATION — THE CITY
YEAR ENDED
JUNE 30
GROSS TAXABLE
SALES
% CHANGE OVER
PRIOR YEAR
NET LOCAL SALES TAX
ALLOCATIONS
% CHANGE OVER
PRIOR YEAR
2020 $8,866,974,472 (3.4)% $ ___%
2019 9,178,096,008 3.6
2018 8,862,086,472 7.7 61,012,067 8.5
2017 8,229,084,282 8.0 56,215,516 5.7
2016 7,615,725,610 3.8 53,175,550 3.1
____________________
(Source: Utah State Tax Commission.)
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SEVERAL OF THE LARGEST EMPLOYERS IN SALT LAKE COUNTY
The following is a list of some of the largest employers in Salt Lake County.
FIRM NAME
INDUSTRY
APPROXIMATE NUMBER
OF EMPLOYEES
University of Utah Higher Education, Health Care 20,000+
State of Utah State Government 20,000+
Intermountain Health Care, Inc. Health Care 15,000-19,999
United States Government Federal Government 10,000-14,999
LDS Church Religious Agencies Religious Organizations 7,000-9,999
Zions Bancorporation Financial Services 7,000-9,999
Wal-Mart Warehouse Clubs/Supercenters 7,000-9,999
Granite School District Public Education 7,000-9,999
Jordan School District Public Education 5,000-6,999
Salt Lake County Local Government 5,000-6,999
Canyons School District Public Education 4,000-4,999
Delta Air Lines, Inc. Transportation 4,000-4,999
Amazon Fulfillment Services Delivery Service 3,000-3,999
ARUP Laboratories Medical Research 3,000-3,999
United Parcel Service Delivery Service 3,000-3,999
Smiths Grocery Stores 3,000-3,999
Discover Financial Services 3,000-3,999
Department of Veterans Affairs Health Care 3,000-3,999
Salt Lake City School District Public Education 3,000-3,999
Wells Fargo Financial Services 3,000-3,999
Salt Lake Community College Higher Education 3,000-3,999
L3 Technologies Manufacturing 3,000-3,999
U.S. Postal Service Postal Service 2,000-2,999
Goldman Sachs Financial Services 2,000-2,999
McDonalds Restaurants 2,000-2,999
Utah Transit Authority Public Transportation 2,000-2,999
Kennecott Utah Copper Mining 2,000-2,999
Salt Lake City Local Government 2,000-2,999
Merit Medical Systems Manufacturing 2,000-2,999
Skywest Airlines Transportation 2,000-2,999
C.R. England Delivery Service 2,000-2,999
Jetblue Airways Transportation 2,000-2,999
_____________________
(Source: Utah Department of Workforce Services. As of July 2021)
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LABOR MARKET DATA OF SALT LAKE COUNTY
2020 2019 2018 2017 2016
Civilian Labor Force 642,357 634,741 619,396 614,498 601,470
Employed 609,766 618,767 601,161 595,348 582,448
Unemployed 32,591 15,974 18,235 19,150 19,122
Total Private Sector (average) NA NA 612,635 595,855 581,825
Mining 2,704 2,645 2,853 2,408 2,428
Construction 45,883 42,773 40,034 38,052 35,760
Manufacturing 56,540 57,836 56,653 55,951 54,487
Trade, transportation and utilities 145,125 145,881 143,262 138,920 136,787
Information 20,247 20,567 20,031 20,204 18,979
Financial activities 61,313 59,900 58,727 56,982 55,414
Professional and business services 128,950 129,758 125,720 122,209 120,654
Education, health and social services 83,301 84,687 82,534 81,174 78,557
Leisure and hospitality 51,823 62,712 60,804 58,811 57,521
Other services 20,477 22,401 21,859 21,295 21,041
Government 103,455 104,456 105,383 102,654 100,223
____________________
(Source: Utah Department of Workforce Services.)
RATE OF UNEMPLOYMENT — ANNUAL AVERAGE
YEAR SALT LAKE COUNTY THE STATE UNITED STATES
2021* 2.5% 2.7% 5.8%
2020 5.1 4.7 8.1
2019 2.5 2.6 3.8
2018 2.9 3.0 3.9
2017 3.1 3.3 4.4
2016 3.2 3.4 4.9
____________________
* Preliminary; subject to change. As of May 2021 (seasonally adjusted).
(Source: Utah Department of Workforce Services; U.S. Department of Labor.)
- 17 -
DEBT STRUCTURE OF SALT LAKE CITY, UTAH
For purposes of the information set forth under this section under the headings entitled “Outstanding Debt
Issues,” “Debt Service Schedule of Outstanding General Obligation Bonds,” “Overlapping General Obligation
Debt,” “Debt Ratios,” and “General Obligation Legal Debt Limit and Additional Debt Incurring Capacity,” the
Bonds are considered issued and outstanding.
OUTSTANDING DEBT ISSUES (EXPECTED AS OF CLOSING DATE OF THE BONDS) (1)
AMOUNT OF
ORIGINAL ISSUE
FINAL
MATURITY DATE
PRINCIPAL
OUTSTANDING
General Obligation Bonds:
Series 2010B (Public Safety Facilities) $100,000,000 6/15/2031 $ 54,650,000
Series 2013 (Refunded a portion of Series 2004A) 6,395,000 6/15/2024 2,115,000
Series 2015A Refunding (Taxable Sports Complex) 14,615,000 6/15/2028 7,825,000
Series 2015B Refunding (Open Space) 4,095,000 6/15/2023 630,000
Series 2017B Refunding (Refunded portion of Series 2010A) 12,920,000 6/15/2030 11,875,000
Series 2019 Improvement and Refunding (Refunded a portion of
Series 2017A)
22,840,000
6/15/2039
16,130,000
Series 2020 (Streets) 17,745,000 6/15/2040 13,130,000
Series 2021 (Streets) __________ * _________ *
Total $ *
Water and Sewer Revenue Bonds:
Series 2009 (Taxable) $ 6,300,000 2/1/2031 $ 3,150,000
Series 2010 Revenue Bonds 12,000,000 2/1/2031 6,545,000
Series 2011 Revenue Bonds 8,000,000 2/1/2027 3,300,000
Series 2012 Improvement and Refunding Bonds 28,565,000 2/1/2027 8,865,000
Series 2017 Improvement and Refunding Bonds 72,185,000 2/1/2037 66,145,000
Series 2020 Improvement Bonds 157,390,000 2/1/2050 157,390,000
Series 2020B Improvement Bonds (WIFIA loan) (2) 348,635,000 8/1/2058 348,635,000
Total $594,030,000
Sales and Excise Tax Revenue Bonds:
Series 2012A(3) 15,855,000 4/1/2022 $
Series 2013B(3) 7,315,000 10/1/2023 690,000
Series 2014B 10,935,000 10/1/2034 7,955,000
Series 2016A 21,715,000 10/1/2028 15,920,000
Series 2019A 2,620,000 4/1/2027 2,095,000
Series 2019B (Federally Taxable) 58,540,000 4/1/2038 57,740,000
Series 2021A (Federally Taxable) 25,905,000* 10/1/2034 25,905,000 *
Total $110,305,000 *
Motor Fuel Excise Tax Revenue Bonds:
Series 2014 $8,800,000 4/1/2024 $ 2,820,000
Airport Revenue Bonds:
Series 2017A $826,210,000 7/1/2047 $ 825,105,000
Series 2017B 173,790,000 7/1/2047 173,755,000
Series 2018A 753,855,000 7/1/2048 753,855,000
Series 2018B 96,695,000 7/1/2048 96,695,000
Series 2021A 776,925,000 7/1/2051 776,925,000
Series 2021B 127,645,000 7/1/2051 127,645,000
Total $2,753,980,000
Local Building Authority Lease Revenue Bonds(4):
Series 2013A $7,180,000 10/15/2023 $ 650,000
Series 2014A 7,095,000 4/15/2035 605,000
Series 2016A 6,755,000 4/15/2037 5,755,000
Series 2017A 8,115,000 4/15/2038 7,555,000
Total $14,565,000 ______________________________ * Preliminary; subject to change. (1) The Redevelopment Agency of Salt Lake City, a separate entity, has issued bonds, but such bonds are not obligations of the City and are therefore not included in this table. See “APPENDIX B—SALT LAKE CITY CORPORATION FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2020—Notes to the Financial Statements—Note 6–Long-Term Obligations.” (2) Closed September 15, 2020. The Series 2020B Bonds are a drawdown loan in the maximum principal amount of $348,635,000. Draws will be made over the next 5 years, but no draws have currently been made. The initial interest payment is on February 1, 2029 and the initial principal payment is on August 1, 2029.
(3) These bonds have been refunded with the proceeds of the Federally Taxable Sales and Excise Tax Revenue Refunding Bonds, Series 2021A.
(4) The Local Building Authority of Salt Lake City is a separate entity. Lease Revenue Bonds are not obligations of the City, but are paid from annually appropriated rental payments
made by the City.
- 18 -
DEBT SERVICE SCHEDULE OF OUTSTANDING GENERAL OBLIGATION BONDS
(As of __________, 2021)
Fiscal Outstanding General Obligation Bonds
Totals
Year Bonds Total
Ending Total Total Debt
June 30 Principal* Interest Principal Interest Principal Interest Service
2021 $ $ $ 8,650,000 $ 3,564,523 $ $ $
2022 9,230,000 3,767,789
2023 9,560,000 3,443,662
2024 9,580,000 3,105,145
2025 9,115,000 2,795,242
2026 9,445,000 2,466,935
2027 9,790,000 2,123,560
2028 10,135,000 1,765,025
2029 9,260,000 1,391,325
2030 8,935,000 1,044,452
2031 7,600,000 723,744
2032 1,430,000 480,700
2033 1,485,000 430,800
2034 1,530,000 378,950
2035 1,585,000 325,500
2036 1,640,000 270,100
2037 1,695,000 212,700
2038 1,755,000 153,350
2039 1,825,000 91,850
2040 930,000 27,900
Total** $ $ $106,525,000 $24,998,729 $ $ $
____________________
* Preliminary; subject to change.
** Amounts may not add due to rounding.
FUTURE DEBT PLANS
The special bond election held on November 6, 2018 gave voter authorization to the City
to issue up to $87 million in general obligation bonds to fund all or a portion of the costs of
improving various streets and roads throughout the City and related infrastructure improvements.
The City currently has approximately $46,700,000 of authorized, but unissued, bonds from the
November 6, 2018 voted authorization, which the City anticipates issuing within the next 5-6
years.
The City is also considering issuing Sales and Excise Tax Revenue bonds to pay for various
capital improvement projects. The par amount is estimated at $58 million.
- 19 -
The City will issue approximately $506 million in additional general airport revenue bonds
in the future to complete the $4.5 billion airport reconstruction program. The reconstruction
program is currently expected to be completed by 2024.
The City applied for a $7,000,000 infrastructure loan to finance a portion of the cost of a
neighborhood parking structure through a revolving fund called the Utah State Infrastructure Bank
Fund. The loan will bear interest of 1.96%, and the term is 15 years. To secure the repayment of
the loan, the City will pledge the funds allocated by the State of Utah, by HB 244 (First Class
County Highway Road Funds.)
Public utilities revenue bonds of approximately $503 million are expected to be issued over
the next seven years to fund the Department of Public Utilities capital improvement program. A
major focus of the Department’s budget is the rehabilitation and replacement of aging
infrastructure. The largest planned projects are the new water reclamation facility to meet
regulatory requirements, improvements to three water treatment plants, phased construction of a
new water conveyance line to expand service and provide redundancy, and water, sewer and storm
water utility infrastructure work necessitated by street improvements projects pursuant to the
City’s passage of the general obligation bond for that purpose. The Department will also be
utilizing proceeds from a $348,635,000 Water Infrastructure Finance and Innovation Act (WIFIA)
loan secured to finance the construction of the water reclamation facility. The loan will be drawn
through 2024.
The City analyzes the potential value of refunding bond issues, particularly during periods
of lower than normal interest rates or on an as needed basis and may issue refunding bonds at such
times.
- 20 -
OVERLAPPING GENERAL OBLIGATION DEBT {TO BE UPDATED.}
TAXING ENTITY (1)
2020* TAXABLE
VALUE (2)
CITY’S
PORTION OF
TAXABLE VALUE (2)
CITY’S
PERCENTAGE
ENTITY’S
GENERAL
OBLIGATION DEBT (3)
CITY’S
PORTION OF
G.O. DEBT
CUWCD(4) ...................... $ $ % $ $
Salt Lake City School
District ..........................
Salt Lake County ............ *
Total Overlapping General Obligation Debt ........................................................................................................... $ *
Total Direct General Obligation Bonded Indebtedness ........................................................................................... $ *
Total Direct and Overlapping General Obligation Debt .......................................................................................... $ *
_________________________
* Preliminary; subject to change.
(1) The State’s general obligation debt is not included in overlapping debt because the State currently levies no property tax for payment of its
general obligation bonds.
(2) Taxable Value used in this table excludes the taxable value used to determine uniform fees on tangible personal property. See “FINANCIAL
INFORMATION REGARDING SALT LAKE CITY, UTAH — Property Tax Matters — Uniform Fees” and “FINANCIAL INFORMATION REGARDING
SALT LAKE CITY, UTAH — Taxable and Fair Market Value of Property.”
(3) Entity’s General Obligation Debt used in this table is as of June 30, 2020 in the case of CUWCD and Salt Lake City School District, and
December 31, 2020 in the case of Salt Lake County.
(4) Central Utah Water Conservancy District (“CUWCD”) encompasses all or a portion of eight State counties, including, among others, Salt
Lake County. CUWCD’s outstanding general obligation bonds are limited ad valorem tax bonds. By law, CUWCD may levy a tax rate of
up to 0.000400 to pay for operation and maintenance expenses and any outstanding general obligation indebtedness.
(Source: Property Tax Division, Utah State Tax Commission (as to Taxable Value) and entity financial information (as to outstanding general
obligation debt).)
DEBT RATIOS* {TO BE UPDATED.}
The following table sets forth the ratios of general obligation debt of the City and the taxing
entities listed in the table above entitled “Overlapping General Obligation Debt” that is expected
to be paid from taxes levied specifically for such debt (and not from other revenues) on the taxable
value of property within Salt Lake City, the estimated fair market value of such property and the
population of Salt Lake City. The State’s general obligation debt is not included in the debt ratios
because the State currently levies no property tax for payment of general obligation debt.
COMPARED
TO 2020
TAXABLE
VALUE (1)
COMPARED
TO 2020
ESTIMATED FAIR
MARKET VALUE (2)
COMPARED TO 2020
POPULATION
ESTIMATE
PER CAPITA (3)
Direct General Obligation Debt* ....... % % $
Direct and Overlapping General
Obligation Debt* ...........................
%
%
$
_________________________
* Preliminary, subject to change.
(1) Based on 2020 Taxable Value of $__________, which value excludes the taxable value used to determine uniform fees on tangible personal
property.
(2) Based 2020 Fair Market Value of $__________, which value excludes motor vehicle values.
(3) Based on a 2020 population estimate of 200,831 persons and calculated using estimated 2020 Taxable Value of $__________.
- 21 -
See “FINANCIAL INFORMATION REGARDING SALT LAKE CITY, UTAH — Property Tax
Matters — Uniform Fees” and “FINANCIAL INFORMATION REGARDING SALT LAKE CITY, UTAH —
Taxable and Fair Market Value of Property.”
GENERAL OBLIGATION LEGAL DEBT LIMIT AND ADDITIONAL DEBT INCURRING CAPACITY* {TO
BE UPDATED.}
The general obligation indebtedness of the City is limited by State law to 8% of taxable
property in the City (4% for general purposes and an additional 4% for sewer, water and electric
purposes†) as computed from the last equalized assessment rolls for State or County purposes prior
to incurring the debt. The legal debt limit and additional debt incurring capacity of the City are
based on the estimated fair market value for 2020 and are calculated as follows:
2020 Fair Market Value (1) .................................................................................................... $
LEGAL
DEBT
MARGIN
GENERAL
PURPOSES
4%
WATER, SEWER,
AND LIGHTING
4%
TOTAL
8%
General Obligation Debt Limit $ $ $
Less: Outstanding General Obligation
Bonds
Legal Debt Margin $ $ $ ____________________
* Preliminary; subject to change.
† The full 8% may be used for water, sewer and electric purposes but if it is so used, then no general obligation bonds may be issued in excess
of 8% for any purpose.
(1) For debt incurring capacity only, in computing the fair market value of taxable property in the City, the fair market value of all tax equivalent
property (which value includes the taxable value used to determine uniform fees on tangible personal property) has been included as a part of
the fair market value of the taxable property in the City.
NO DEFAULTED OBLIGATIONS
The City has never failed to pay principal of and interest on its financial obligations when
due.
FINANCIAL INFORMATION REGARDING SALT LAKE CITY, UTAH
FUND STRUCTURE; ACCOUNTING BASIS
The accounts of the City are organized on the basis of funds, each of which is considered
to be a separate accounting entity. The operations of each fund are accounted for by providing a
separate set of self-balancing accounts that comprise its assets, liabilities, fund balance or net
assets, revenues, and expenditures or expenses. The various funds are grouped by type in the basic
financial statements.
Revenues and expenditures are recognized using the modified accrual basis of accounting
in all governmental funds. Revenues are recognized in the accounting period in which they
become both measurable and available. “Measurable” means that amounts can be reasonably
determined within the current period. “Available” means that amounts are collectible within the
- 22 -
current period or soon enough thereafter to be used to pay liabilities of the current period. The
City uses 60 days as a cutoff for meeting the available criterion. Property taxes are considered
“measurable” when levied and available when collected and held by Salt Lake County. Any
amounts not available are recorded as deferred revenue. Franchise taxes are considered
“measurable” when collected and held by the utility company, and are recognized as revenue at
that time. Other revenues that are determined to be susceptible to accrual include grants-in-aid
earned and other intergovernmental revenues, charges for services, interest, assessments, interfund
service charges, and proceeds of the sale of property. Property taxes and assessments are recorded
as receivables when assessed; however, they are reported as deferred revenue until the “available”
criterion has been met. Sales and use taxes collected by the State and remitted to the City within
the “available” time period are recognized as revenue. Revenues collected in advance are deferred
and recognized in the period to which they apply.
In proprietary funds, revenues and expenses are recognized using the accrual basis of
accounting. Revenues are recognized in the accounting period in which they are earned and
become measurable and expenses are recognized in the period incurred.
FINANCIAL CONTROLS
The City utilizes a computerized financial accounting system which includes a system of
budgetary controls. State law requires budgets to be controlled by individual departments, but the
City also maintains computerized control by major categories within departments. These
computerized controls are such that a requisition cannot be entered into the purchasing system
unless the appropriated funds are available. The system checks for sufficient funds again, prior to
the purchase order being issued, and again before the payment check is issued. Voucher payments
are also controlled by the computer for sufficient appropriations.
BUDGET AND APPROPRIATION PROCESS
The budget and appropriation process of the City is governed by the Uniform Fiscal
Procedures Act for Utah Cities, Title 10, Chapter 6, of the Utah Code (the “Fiscal Procedures
Act”). Pursuant to the Fiscal Procedures Act, the budget officer of the City is required to prepare
budgets for the General Fund, Special Revenue Funds, Debt Service Funds and Capital
Improvement Fund. These budgets are to provide a complete financial plan for the budget (ensuing
fiscal) year. Each budget is required to specify, in tabular form, estimates of anticipated revenues
and appropriations for expenditures. Under the Fiscal Procedures Act, the total of anticipated
revenues must equal the total of appropriated expenditures.
On or before the first regular meeting of the City Council in May of each year, the budget
officer is required to submit to the City Council tentative budgets for all funds for the Fiscal Year
commencing July 1. Various actual and estimated budget data are required to be set forth in the
tentative budgets. The budget officer may revise the budget request submitted by the heads of City
departments, but must file these submissions with the City Council together with the tentative
budget. The budget officer is required to estimate in the tentative budget the revenue from
nonproperty tax sources available for each fund and the revenue from general property taxes
required by each fund. The tentative budget is then provisionally adopted by the City Council,
- 23 -
with any amendments or revisions that the City Council deems advisable prior to the public
hearings on the tentative budget. After public notice and hearing, the tentative budget is adopted
by the City Council, subject to further amendment or revisions by the City Council prior to
adoption of the final budget.
Prior to June 30th of each year, the final budgets for all funds are adopted by the City
Council. The Fiscal Procedures Act prohibits the City Council from making any appropriation in
the final budget of any fund in excess of the estimated expendable revenue of such fund. The
adopted final budget is subject to amendment by the City Council during the Fiscal Year.
However, in order to increase the budget total of any fund, public notice and hearing must be
provided. Intra- and inter-department transfers of appropriation balances are permitted upon
compliance with the Fiscal Procedures Act.
The amount set forth in the final budget as the total amount of estimated revenue from
property taxes constitutes the basis for determining the property tax levy to be set by the City
Council for the succeeding tax year.
INSURANCE COVERAGE
The City is largely self-insured for general liability exposures, except for liability incurred
on premises owned, rented, or occupied by the Department of Airports (the “Airport”). The City
carries commercial excess liability insurance with $1,000,000 self-insured retention per
occurrence. Limits of coverage are as follows: $2,000,000 per occurrence general liability;
$4,000,000 general aggregate; $2,000,000 combined single limit commercial auto liability;
$2,000,000 public officials and employment practices liability; and $2,000,000 law enforcement
liability. The City also carries cyber liability insurance. The Airport carries commercial general
liability insurance with a $500,000,000 policy limit and no deductible. The Governmental
Immunity Fund (an internal service fund) has been established to pay liability claims other than
those covered by the Airport policy, along with certain litigation expenses.
The City carries an all risk property insurance policy (the “Policy”) with a $500,000,000
aggregate limit and a $100,000 deductible, except for earthquake, which carries a 1% deductible
per location; and flood, which carries a $250,000 or $500,000 deductible, depending on location.
Sub-limits include: (1) earthquake limit of $125,000,000 aggregate; (2) flood limit of
$100,000,000 aggregate; and (3) dams and appurtenant structures limit of $30,000,000 aggregate
except for Mountain Dell, which carries a $60,000,000 aggregate limit. (4) Business interruption
and extra expense are covered at $10,000,000. (5) Terrorism loss is covered at $5,000,000. The
City is self-insured for property loss above the limits and below the deductibles. The operating
departments of the General Fund or proprietary funds assume financial responsibility for risk
retained by the City for property damage.
The Airport is covered by a separate all risk property insurance policy with a
$1,000,000,000 limit, subject to sub-limits and a $100,000 deductible. Locations covered include
Salt Lake City International Airport, South Valley Regional Airport, and Tooele Valley Airport.
Boiler and machinery carry a deductible of $100,000. Flood carries a sub-limit of $150,000,000
and Earth movement carries sub-limit of $100,000,000 with a 2% deductible per unit, subject to a
- 24 -
$100,000 minimum and $5,000,000 maximum in any one occurrence (defined as a 168-hour
period). Windstorm or hail carries a $1,000,000,000 limit, subject to a minimum $100,000
deductible per occurrence. Time element including business interruption, extra expense, rental
value, and rental income is covered at $200,000,000 with a $100,000 deductible. Sub-limits apply
for debris removal ($25,000,000), valuable papers and records ($25,000,000), errors and omissions
($10,000,000), and named storm ($1,000,000,000).
The Treasurer, Deputy Treasurer, and Chief Financial Officer are each covered under
$10,000,000 public official bonds. The City also has a government crime policy covering (1)
employee theft with a $1,000,000 limit and $20,000 deductible; (2) forgery or alteration with a
$25,000 limit and $1,000 deductible; (3) theft of money and securities with a $50,000 limit and
$2,500 deductible; (4) robbery or safe burglary with a $50,000 limit and $2,500 deductible; (5)
money orders and counterfeit money with a $50,000 limit and $2,500 deductible; and (6) computer
fraud and funds transfer fraud, each carrying $1,000,000 limits and $20,000 deductibles.
The City purchases excess workers’ compensation insurance with a $30,000,000 limit and
$1,000,000 self-insured retention per occurrence for Fire and Police employees and $750,000 self-
insured retention per occurrence for all other employee classifications. 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 administrative expenses. During
the past three fiscal years, there have been no settlements that exceeded the self-insured retentions.
See “APPENDIX A – SALT LAKE CITY CORPORATION FINANCIAL STATEMENTS FOR THE
FISCAL YEAR ENDED JUNE 30, 2020 – Notes to Financial Statements – Note 11 – Risk
Management.”
INVESTMENT POLICY
City Policy. It is the policy of the City to invest public funds 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 (the “Money Management Act”), and the City’s own
written investment policy. The following investment objectives, in order of priority, are met when
investing public funds: safety of principal, need for liquidity, and maximum yield on investments
consistent with the first two objectives.
The City may use investment advisers to conduct investment transactions on its behalf as
permitted by the 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 (the “Director”). Broker/dealers and agents who desire to become certified dealers
must be certified by the Director and meet the requirements of the Money Management Act. 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
- 25 -
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 maintain an account with a money center bank for the purpose of settling investment
transactions and safekeeping and collecting those investments.
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 Utah Public
Treasurer’s Investment Fund (“PTIF”) and other money market mutual funds, provided that the
overall standards of investments achieve the City’s policy objectives.
All funds pledged or otherwise dedicated to the payment of interest on and principal of
bonds or notes issued by the City are invested in accordance with the terms and borrowing
instruments applicable to such bonds or notes. City policy also provides that the remaining term
to maturity of an investment may not exceed the period of availability of the funds invested. The
investment of City funds cannot be of a speculative nature.
The City’s entire portfolio is currently in compliance with all of the provisions of the
Money Management Act.
The Utah Public Treasurers’ Investment Fund. The PTIF is a local government investment
fund, established in 1981, and managed by the State Treasurer. Generally, substantial portion of
the City’s funds are on deposit in the PTIF (currently approximately $1.5 billion). 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.
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.
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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 City believes to be reliable, but the City takes no responsibility for the accuracy
thereof.
See “APPENDIX A – SALT LAKE CITY CORPORATION FINANCIAL STATEMENTS FOR THE
FISCAL YEAR ENDED JUNE 30, 2020 – Notes to the Financial Statements – Note 2 – Cash, Cash
Equivalents and Investments” below.
PROPERTY TAX MATTERS
The Property Tax Act, Chapter 2, Title 59 of the Utah Code (the “Property Tax Act”),
provides that all taxable property is required to be assessed and taxed at a uniform and equal rate
on the basis of its “fair market value” as of January 1 of each year, unless otherwise provided by
law. “Fair market value” is defined in the Property Tax Act as “the amount at which property
would change hands between a willing buyer and a willing seller, neither being under any
compulsion to buy or sell and both having reasonable knowledge of the relevant facts.” Pursuant
to an exemption for residential property provided for under the Property Tax Act and Article XIII
of the State Constitution, the “fair market value” of residential property is reduced by 45%. The
residential exemption is limited to one acre of land per residential unit and to one primary residence
per household, except that an owner of multiple residential properties may exempt his or her
primary residence and each residential property that is the primary residence of a tenant.
The Property Tax Act provides that the Utah State Tax Commission (the “State Tax
Commission”) shall assess certain types of property (“centrally-assessed property”), including (a)
properties that operate as a unit across county lines that must be apportioned among more than one
county or state, (b) public utility (including railroad) properties, (c) airline operating properties,
(d) geothermal resources and (e) mines, mining claims and appurtenant machinery, facilities and
improvements. All other taxable property (“locally-assessed property”) is required to be assessed
by the county assessor of the county in which such locally-assessed property is located. Each
county assessor must update property values annually based upon a systematic review of current
market data by using a mass appraisal system and must also complete a detailed review of property
characteristics for each parcel of property at least once every five years. The Property Tax Act
requires that the State Tax Commission conduct an annual investigation in each county to
determine whether all property subject to taxation is on the assessment rolls and whether the
property is being assessed at its “fair market value.”
The State Tax Commission and the county assessors utilize various valuation methods, as
determined by statute, administrative regulation or accepted practice, to determine the “fair market
value” of taxable property.
Uniform Fees. An annual statewide uniform fee is levied on tangible personal property in
lieu of the ad valorem tax. The uniform fee is based on the value of motor vehicles, watercraft,
recreational vehicles, and all other tangible personal property required to be registered with the
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State. The current uniform fee is established at 1.5% of the fair market value of motor vehicles
that weigh 12,001 pounds or more; watercraft; motorcycles, recreational vehicles and all other
tangible personal property required to be registered with the State, excluding exempt property such
as aircraft, commercial vehicles and property subject to a fixed age-based fee. Motor vehicles
weighing 12,000 pounds or less are subject to an age-based fee that is due each time the vehicle is
registered. The age-based fee is for passenger type vehicles and ranges from $7.75 to $150,
depending on the age of the vehicle. Recreation vehicles, motorcycles, watercraft (except large
watercraft), snowmobiles, certain small motor vehicles and motor homes required to be registered
with the State are also subject to an aged-based fee that ranges from $4.00 to $700, depending on
the age of the vehicle. The revenues collected from the various uniform fees are distributed by the
county to the taxing entity in which the property is located in the same proportion in which revenue
collected from ad valorem real property tax is distributed.
Property Tax Valuation Agency Fund. The State Legislature requires each county to
annually impose a multicounty assessing and collecting levy to fund a Property Tax Valuation
Agency Fund (the “PTVAF”) and a Multicounty Appraisal Trust (the “Multicounty Trust”).
Disbursements to counties from the PTVAF are to be used to offset costs of assessing and
collecting property taxes; improve the accurate valuation and uniform assessment levels of
property and improve the efficiency of the property tax system and are based on various
administrative rules. Funds deposited into the Multicounty Trust are to be used to provide funding
for a statewide property tax system that is intended to promote, among other things, the accurate
valuation of property, the establishment and maintenance of uniform assessment levels within and
among counties, and the efficient administration of the property tax system, including the costs of
assessment, collection and distribution of property taxes. A county may levy an additional tax to
(a) promote the accurate valuation and uniform assessment levels of property, (b) promote the
efficient administration of the property tax system, including the costs of assessment, collection
and distribution of property taxes, (c) fund state mandated actions and (d) establish reappraisal
programs.
TAX LEVY AND COLLECTION
The State Tax Commission must assess all centrally-assessed property by May 1 of each
year. County assessors must assess all locally-assessed property before May 22 of each year. The
State Tax Commission apportions the value of centrally-assessed property to the various taxing
entities within each county and reports such values to county auditors before June 8. The
governing body of each taxing entity must adopt a proposed tax rate or, if the tax rate is not more
than the certified tax rate, a final tax rate, before June 22; provided if the governing body has not
received the taxing entity’s certified tax rate at least seven days prior to June 22, the governing
body of the taxing entity must, no later than 14 days after receiving the certified tax rate from the
county auditor, adopt a proposed tax rate or, if the tax rate is not more than the certified tax rate, a
final tax rate. County auditors must forward to the State Tax Commission a statement prepared
by the legislative body of each taxing entity showing the amount and purpose of each levy. Upon
determination by the State Tax Commission that the tax levies comply with applicable law and do
not exceed maximum permitted rates, the State Tax Commission notifies county auditors to
implement the levies. If the State Tax Commission determines that a tax levy established by a
taxing entity exceeds the maximum levy permitted by law, the State Tax Commission must lower
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the levy to the maximum levy permitted by law, notify the taxing entity that the rate has been
lowered and notify the county auditor (of the county in which the taxing entity is located) to
implement the rate established by the State Tax Commission.
On or before July 22 of each year, the county auditors must mail to all owners of real estate
shown on their assessment rolls notice of, among other things, the value of the property, itemized
tax information for all taxing entities and the date their respective county boards of equalization
will meet to hear complaints. Taxpayers owning property assessed by a county assessor may file
an application within statutorily defined time limits based on the nature of the contest with the
appropriate county board of equalization for the purpose of contesting the assessed valuation of
their property. The county board of equalization must render a decision on each appeal in the time
frame prescribed by the Property Tax Act. Under certain circumstances, the county board of
equalization must hold a hearing regarding the application, at which the taxpayer has the burden
of proving that the property sustained a decrease in fair market value. Decisions of the county
board of equalization may be appealed to the State Tax Commission, which must decide all appeals
relating to real property by March 1 of the following year. Owners of centrally-assessed property,
or any county with a showing of reasonable cause, may, on or before the later of August 1 or a day
within 90 days of the date the notice of assessment is mailed by the State Tax Commission, apply
to the State Tax Commission for a hearing to contest the assessment of centrally-assessed property.
The State Tax Commission must render a written decision within 120 days after the hearing is
completed and all post-hearing briefs are submitted. The county auditor makes a record of all
changes, corrections and orders, and delivers before November 1 the corrected assessment rolls to
the county treasurers. On or before November 1, each county treasurer furnishes each taxpayer a
notice containing, among other things, the kind and value of the property assessed to the taxpayer,
the street address of the property, where applicable, the amount of the tax levied on the property
and the year the property is subject to a detailed review.
Without an extension by a county legislative body, taxes are due November 30, or if a
Saturday, Sunday or holiday, the next business day. Each county treasurer is responsible for
collecting all taxes levied on real property within that county. There are no prior claims to such
taxes. As taxes are collected, each county treasurer must pay to the State and each taxing entity
within the county its proportionate share of the taxes, on or before the tenth day of each month.
Delinquent taxes are subject to a penalty of 2.5% of the amount of the taxes or $10, whichever is
greater. Unless the delinquent taxes and penalty are paid before January 31 of the following year,
the amount of delinquent taxes and penalty bears interest at the federal funds rate target established
by the Federal Open Markets Committee plus 6% from the January 1 following the delinquency
date until paid (provided that said interest may not be less than 7% or more than 10%) If delinquent
taxes have not been paid by March 15 following the lapse of four years from the delinquency date,
the affected county advertises and sells the property at a final tax sale held in May or June of the
fifth year after assessment.
The process described above changes if a county or other taxing entity proposes a tax rate
in excess of the certified tax rate (as described under “FINANCIAL INFORMATION REGARDING SALT
LAKE CITY, UTAH — Public Hearing on Certain Tax Increases” below). If such an increase is
proposed, the taxing entity must adopt a proposed tax rate before June 22. In addition, the county
auditor must include certain information in the notices to be mailed by July 22, as described above,
- 29 -
including information concerning the tax impact of the proposed increase on the property and the
time and place of the public hearing described in “FINANCIAL INFORMATION REGARDING SALT
LAKE CITY, UTAH — Public Hearing on Certain Tax Increases” below. In most cases, notice of
the public hearing must also be advertised by publication. After the public hearing is held, the
taxing entity may adopt a resolution levying a tax in excess of the certified tax rate. The final tax
notice is then mailed by November 1.
PUBLIC HEARING ON CERTAIN TAX INCREASES
Each taxing entity that proposes to levy a tax rate that exceeds the “certified tax rate” may
do so, by resolution, only after holding a properly noticed public hearing. Generally, the certified
tax rate is the rate necessary to generate the same property tax revenue that the taxing entity
budgeted for the prior year, with certain exclusions. For purposes of calculating the certified tax
rate, county auditors are to use the taxable value of property on the assessment rolls, exclusive of
eligible new growth. With certain exceptions, the certified tax rate for the minimum school levy,
debt service voted on by the public and certain state and county assessing and collecting levies are
the actual levies imposed for such purposes and no hearing is required for these levies.
Among other requirements, on or before July 22 of the year in which such an increase is
proposed, the county auditor must mail to all property owners a notice of the public hearing. In
most cases, the taxing entity must also advertise the notice of the public hearing by publication in
a newspaper. Such notices must state, among other things, the value of the property, the taxable
value of the property, the deadline to make application to appeal the valuation or equalization of
the property, and the tax impact of the proposed increase.
SOURCES OF GENERAL FUND REVENUES
Set forth below are brief descriptions of the various sources of revenues available to the
City’s general fund. The percentage of total general fund revenues represented by each source is
based on the City’s audited June 30, 2020 fiscal year period:
Sales, use and excise taxes – Approximately 34.97% of general fund revenues are from
sales, use and excise taxes.
General property taxes – Approximately 33.88% of general fund revenues are from general
property taxes.
Licenses and Permits – Approximately 9.81% of general fund revenues are from licenses
and permits.
Franchise taxes – Approximately 8.08% of general fund revenues are from franchise taxes.
Interfund service charges – Approximately 6.19% of general fund revenues are from
interfund service charges.
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Intergovernmental – Approximately 1.53% of general fund revenues are from other
governmental entities.
Miscellaneous – Approximately 1.37% of general fund revenues are from miscellaneous
revenues.
Charges for Services – Approximately 1.06% of general fund revenues are from charges
for services.
Interest – Approximately 0.90% of general fund revenues are from interest income.
Parking meter – Approximately 0.83% of general fund revenues are from parking meters.
Fines and forfeitures – Approximately 0.77% of general fund revenues are from fines and
forfeitures.
Parking tickets – Approximately 0.36% of general fund revenues are from parking tickets.
Rental and other income – Approximately 0.23% of general fund revenues are from rental
and other income.
FIVE-YEAR FINANCIAL SUMMARIES
The summaries contained herein were extracted from the City’s financial statements for
the fiscal years ended June 30, 2015 through June 30, 2020. The summaries are unaudited. See
also “APPENDIX A – SALT LAKE CITY CORPORATION FINANCIAL STATEMENTS FOR THE FISCAL
YEAR ENDED JUNE 30, 2020.”
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SALT LAKE CITY CORPORATION, UTAH
STATEMENT OF NET POSITION — GOVERNMENTAL ACTIVITIES
(FISCAL YEARS ENDED JUNE 30)
Unaudited
FISCAL YEAR ENDED JUNE 30
2020 2019 2018 2017 2016
ASSETS:
Current assets:
Cash and cash equivalents
Unrestricted(1) ........................................ $ 205,140,649 $ 173,296,451 $ 136,508,084 $ 130,570,538 $ 144,244,008
Restricted .............................................. 34,188,038 30,558,462 45,632,659 51,048,361 47,387,356
Receivables:
Property, franchise and excise taxes ...... 126,757,993 121,878,908 110,378,720 109,649,106 101,183,986
Assessments .......................................... 3,781,533(2) 3,923,402(3) 1,426,875(4) 4,519,453(5) 4,668,897(5)
Loans and other receivables .................. 7198,376 16,323,694 15,854,701 14,434,319 14,226,045
Due from other governments ................... 1,485,561 900,768 606,427 1,215,253 685,229
Due from other governments for cash
overdraft ..................................................
2,746,105
5,166,500
-
14,285,147
2,130,578
Other, principally accrued interest ........... - 360,735 604,183 664,244 869,563
Prepaid Expenses ..................................... 2,984,933 2,926,066 2,493,423 2,640,895 2,363,622
Inventories ............................................... 774,660 817,167 741,940 726,497 689,096
Internal balances ...................................... 9,822,080 7,429,743 7,354,925 7,332,026 5,460,948
Total current assets ..................... 394,879,928 363,581,896 321,601,937 337,086,080 323,909,328
Noncurrent assets:
Restricted cash and cash equivalents…… - 8,561 27,239 693,089 1,183,951
Property and equipment, at cost:
Land and water rights ............................ 213,141,701 206,641,702 204,616,025 205,840,121 206,831,004
Infrastructure ......................................... 334,200,249 328,205,613 318,900,140 296,789,287 294,542,403
Buildings ............................................... 421,593,611 418,267,960 391,967,029 383,489,329 382,232,503
Improvements other than buildings ....... 114,148,172 112,998,914 98,476,480 50,795,891 50,762,191
Machinery and equipment ..................... 144,054,928 134,125,031 121,884,657 114,839,558 109,411,267
Construction in progress ........................ 13,156,742 7,925,802 44,532,285 99,709,556 83,461,658
Accumulated depreciation ..................... (400,438,206) (374,321,872) (351,033,657) (331,203,791) (309,570,259)
Net property and equipment ................ 839,857,197 833,843,150 829,342,959 820,259,951 817,670,767
Loans and other long-term receivables .... - 6,503 - - -
Investment in joint venture ...................... 1,005,459 1,020,755 1,048,804 864,755 739,790
Net pension asset ..................................... 16,662,414 - 5,757,520 35,771 63,558
Total noncurrent assets ............... 857,525,070 834,878,969 836,176,522 821,853,566 819,658,066
Total assets ........................ $1,252,404,998 $1,198,460,865 $1,157,778,459 $1,158,939,605 $1,143,567,394
Deferred Outflows of Resources:
Deferred gain on the refunding of debt . 6,802,878 - - 2,614,501 2,171,010
Deferred outflows – Pension ................ . 28,187,987 63,670,921 61,495,100 56,504,765 45,409,809
Total deferred outflows .............. 34,990,865 63,670,921 61,495,100 59,119,266 7,580,819
Total assets and deferred
outflows of resources….
$1,287,395,865
$1,262,131,786
$1,219,273,559
$1,218,058,871
$1,191,148,213
_________________________
(1) The changes in unrestricted and restricted cash and cash equivalents are due, for the most part, to the timing of the release of bond proceeds from
restricted accounts until such proceeds are actually spent.
(2) Including $1,997,733 of delinquent assessments
(3) Including $1,997,733 of delinquent assessments
(3) Including $1,892,192 of delinquent assessments
(4) Including $384,417 of delinquent assessments
(Source: Information is taken from the City’s audited financial statements. This summary itself has not been audited.)
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SALT LAKE CITY CORPORATION, UTAH
STATEMENT OF NET POSITION — GOVERNMENTAL ACTIVITIES
(FISCAL YEARS ENDED JUNE 30)
(continued)
Unaudited
FISCAL YEAR ENDED JUNE 30
2020 2019 2018 2017 2016
LIABILITIES:
Current liabilities:
Accounts payable .................................. $ 11,004,215 $ 8,971,850 $ 9,464,358 $ 10,479,354 $ 11,932,267
Accrued liabilities ................................. 17,113,193 14,102,810 24,413,747 11,844,403 17,527,854
Due to other funds for cash overdraft .... 2,746,105 5,166,500 - 14,285,147 2,130,578
Current portion of long-term
compensated absences .........................
2,243,741
2,474,761
445,411
359,141
2,700,423
Current portion of estimated claims
payable ................................................
-
2,325,578
-
2,503,457
-
Current portion of long-term debt:
payable from unrestricted assets .......... 25,978,959 23,575,176 28,445,083 4,162,343 26,885,166
Other liabilities payable from restricted
assets ...................................................
3,446,127
4,311,679
1,773,111
3,399,134
4,792,821
Current deposits and advance rentals ..... 5,788,342 6,296,651 2,972,167 3,737,924 3,337,915
Total current liabilities ............... 68,320,682 67,225,005 67,513,877 50,770,903 69,307,024
Noncurrent liabilities:
Long-term compensation absences
liability ................................................
19,817,132
16,062,411
15,524,877
14,265,703
17,470,993
Estimated claims payable ...................... 7,581,192 6,866,805 8,755,597 8,708,566 8,367,313
Bonds payable ....................................... 243,201,008 256,924,802 274,161,402 308,816,271 302,213,045
Notes payable ........................................ 8,263,371 9,225,733 9,513,211 10,877,434 12,177,209
Net pension liability…………………… 101,798,719 158,219,805 100,432,991 121,947,164 112,772,564
Total noncurrent liabilities ......... 380,661,422 447,299,556 408,388,078 464,615,138 453,001,124
Total liabilities ................... 448,982,104 514,524,561 475,901,955 515,386,041 522, 308,148
Deferred Inflows of Resources:
Deferred property tax revenues…… 104,983,955 99,797,016 95,222,510 97,560,814 90,320,161
Deferred Inflows-revenue collected in
advance ..............................................
5,817,413
-
-
-
-
Unavailable grant revenue…………… - - 1,187,321 - -
Deferred Inflows-Pension……………. 37,820,944 6,820,594 49,737,469 17,312,004 12,976,538
Total deferred inflows…………. 148,622,312 106,617,610 146,147,300 114,872,818 103,296,699
NET POSITION:
Net investment in capital assets ............. 563,202,691 668,907,410 642,013,234 621,193,874 601,185,318
Restricted for:
Debt service ........................................ 24,435,870 19,161,674 17,400,982 1,828,871 1,975,291
Capital projects ................................... 58,860,342 39,468,770 39,969,704 44,152,125 59,089,891
Unrestricted ........................................... 43,292,546 (86,548,239) (102,159,615) (79,374,858) (96,707,134)
Total net position ........................ 689,791,449 640,989,615 597,224,232 587,800,012 565,543,366
Total liabilities and net position .. $1,287,395,865 $1,262,131,786 $1,219,273,559 $1,218,058,871 $1,191,148,213
_________________________
(Source: Information is taken from the City’s audited financial statements. This summary itself has not been audited.)
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SALT LAKE CITY CORPORATION, UTAH
BALANCE SHEET — GOVERNMENTAL FUNDS — GENERAL FUND
(FISCAL YEARS ENDED JUNE 30)
Unaudited
2020 2019 2018 2017 2016
ASSETS
Cash and cash equivalents:
Unrestricted $ 81,186,718 $ 66,930,200 $ 49,087,093 $ 41,534,741 $ 41,201,923
Restricted 1,479,040 1,214,680 119,303 794,556 388,056
Receivables
Property, franchise and excise 125,990,575 121,146,223 109,657,724 109,140,970 100,934,400
Accounts Receivable* 410,798 585,327 754,799 1,529,553 821,136
Taxes Receivable 6,508,528 9,637,005 7,282,610 7,687,027 8,041,677
Current portion of loans receivables 91,228 105,658 719,155 143,258 161,371
Other, principally accrued interest - 3,595 4,048 3,948 -
Prepaids 2,295,517 2,222,173 2,108,725 2,067,816 1,912,583
Noncurrent assets:
Restricted cash and cash equivalents - - - 457,090 1,048,318
Total Assets 217,962,404 201,844,461 169,733,457 163,358,959 154,509,464
LIABILITIES
Accounts payable 4,422,547 3,804,768 3,947,162 3,834,497 3,745,483
Accrued liabilities 12,859,977 11,173,580 10,428,440 8,892,089 14,743,977
Due to other funds for cash overdraft - - 2,033,955 - -
Current deposits and advance rentals 4,478,386 5,016,747 1,823,210 2,702,137 2,429,943
Current portion of long-term compensated
absences 1,975,363 2,243,741
179,411
58,476
2,326,249
Total liabilities 23,736,273 22,238,836 18,412,178 15,487,199 23,245,652
DEFERRED INFLOWS OF RESOURCES
Receivables not meeting available criterion 104,983,955 99,792,016 95,217,010 97,200,765 90,171,915
Total deferred inflows 104,983,955 99,792,016 95,217,010 97,200,765 90,171,915
FUND BALANCES
Nonspendable 9,302,914 12,550,173 10,865,289 11,427,654 10,936,767
Assigned 9,899,196 15,891,696 8,731,775 7,298,041 7,098,940
Unassigned 70,040,066 51,372,150 36,507,205 31,945,300 23,056,190
Total fund balances 89,242,176 79,814,009 56,104,269 50,670,995 41,091,897
Total Liabilities and Fund Balances $217,962,404 $201,844,861 $169,733,457 $163,358,959 $154,509,464
* Less allowance for 2017 and 2016 of $78,000 and $78,000, respectively.
(Source: The City’s Comprehensive Annual Financial Report for the indicated years. The summary above has not been audited.)
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SALT LAKE CITY CORPORATION, UTAH
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE — GENERAL FUND
(FISCAL YEARS ENDED JUNE 30)
Unaudited
Revenues And Expenditures 2020 2019 2018 2017 2016
Revenues:
General property tax $112,588,053 $104,938,706 $101,731,444 $100,322,860 $ 96,359,007
Sales, use and excise taxes 116,199,002 99,403,846 67,940,454 62,776,248 59,927,247
Franchise taxes 26,863,146 27,238,435 27,286,331 28,418,423 27,972,665
Licenses 13,106,709 16,448,180 15,592,788 15,194,896 14,414,308
Permits 19,490,500 20,417,302 15,015,980 19,792,317 14,274,844
Fines and forfeitures 2,567,145 3,316,215 3,457,569 3,524,067 3,632,916
Interest 2,996,417 4,604,973 2,263,772 805,997 1,000,100
Intergovernmental 5,086,254 6,006,496 5,791,774 6,855,998 5,453,584
Interfund service charges 20,574,064 16,363,849 11,413,982 11,450,521 11,051,279
Parking meter collections 2,771,331 3,509,898 3,404,582 3,463,592 3,324,616
Parking tickets 1,186,561 1,824,561 2,110,245 3,204,769 2,844,690
Rental and other income 760,012 4,618,165 916,512 1,035,637 887,017
Charges for services 3,523,747 955,516 4,755,198 4,323,241 4,063,532
Miscellaneous 4,554,707 5,308,035 6,025,249 5,398,235 5,295,397
Total Revenues 332,267,648 314,954,177 267,705,880 266,566,801 250,501,202
Expenditures:
City Council 3,759,472 3,573,889 3,137,125 3,201,795 2,721,621
Mayor 3,862,232 3,121,458 2,856,010 2,752,337 2,456,932
City Attorney 6,788,279 6,643,806 5,896,933 5,549,139 5,442,492
Finance 7,827,573 7,596,941 6,758,236 6,645,796 6,355,798
Fire 42,336,507 42,266,968 39,165,845 38,251,674 38,203,990
Combined Emergency Services 7,953,949 8,066,766 7,377,133 6,861,592 6,919,161
Police 82,368,338 74,956,306 66,609,711 64,158,367 60,822,121
Community and Neighborhoods 23,407,408 22,291,042 21,409,611 19,903,151 21,240,753
Economic Development 1,985,238 1,689,398 1,650,691 1,190,020 -
Justice Court 4,428,065 4,389,467 4,276,010 4,183,738 4,024,112
Human Resources 2,663,132 2,614,565 2,524,603 2,330,599 2,165,444
Public Services 44,472,172 45,525,224 42,344,796 41,871,303 39,890,516
Nondepartmental 35,162,898 29,585,365 27,602,288 26,450,242 27,761,151
Interest and other fiscal charges - 675,866 583,117 371,509 321,134
Total Expenditures 267,015,263 252,997,061 232,192,109 223,721,262 218,325,225
Revenues Over (Under) Expenditures 65,252,385 61,957,116 35,513,771 42,845,539 32,175,977
Other Financing Sources (Uses):
Proceeds from sale of property 6,484 43,697 9,756 47,703 353,121
Transfers in 6,800,493 7,564,419 8,345,810 7,307,161 5,393,054
Transfers out (62,631,195) (45,855,553) (38,436,009) (40,621,305) (39,803,384)
Total Other Financing Sources (Uses) (55,824,218) (38,247,437) (30,080,533) (33,266,441) (34,057,209)
Net Change in Fund Balances 9,428,167 23,709,740 5,433,238 9,579,098 (1,881,232)
Fund Balance Prior Year (July 1) 79,814,009 56,104,269 50,670,995 41,091,897 42,973,129
Fund Balance Year End (June 30) $89,242,176 $79,814,009 $56,104,269 $50,670,995 $41,091,897
(Source: The City’s Comprehensive Annual Financial Report for the indicated years. This summary has not been audited.)
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HISTORICAL CITY TAX RATES
TAX RATE
PURPOSE 2020 2019 2018 2017 2016
General Purposes 0.002942 0.003205 0.003236 0.003482 0.003617
Interest & Sinking Fund 0.000583 0.000648 0.000692 0.000772 0.000910
Library 0.000680 0.000745 0.000766 0.000834 0.000705
Judgement Recovery 0.000018 0.000025 0.000049 0.000032 0.000030
Total Levy 0.004223 0.004623 0.004743 0.005120 0.005262
COMPARATIVE PROPERTY TAX RATES WITHIN SALT LAKE COUNTY
T AX R ATE
Tax Levying Entity 2020 2019 2018 2017 2016
Alta Town 0.001260 0.001292 0.001231 0.00163 0.001153
Bluffdale City 0.001695 0.001783 0.001442 0.001751 0.001218
Cottonwood Heights City 0.001898 0.002002 0.002088 0.001961 0.002064
Draper City 0.001227 0.001268 0.001352 0.001460 0.001560
Herriman City 0.000280 0.000287 0.000307 0.000326 0.000342
Holladay (City of) 0.001169 0.001235 0.001311 0.001380 0.001420
Midvale City 0.001043 0.001107 0.001166 0.001309 0.001398
Millcreek City 0.001841 0.001897 0.002012 0.000068 -
Murray City 0.002128 0.002249 0.002383 0.001759 0.001892
Riverton City 0.000000 0.000000 0.000000 0.000000 0.000000
Salt Lake City 0.003540 0.003878 0.003977 0.004286 0.005262
Sandy City 0.001279 0.001337 0.001144 0.001229 0.001321
South Jordan City 0.001738 0.001802 0.001880 0.001900 0.001951
South Salt Lake City 0.001597 0.001715 0.001878 0.002032 0.002303
Taylorsville (City of) 0.000904 0.000943 0.001003 0.001090 0.001165
West Jordan City 0.001899 0.001999 0.002132 0.001975 0.002139
West Valley City 0.003263 0.003508 0.003706 0.004151 0.004233
____________________
(Source: Property Tax Division, Utah State Tax Commission.)
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TAXABLE AND FAIR MARKET VALUE OF PROPERTY {TO BE UPDATED.}
SALT LAKE CITY, UTAH
Excluding Fee-In-Lieu/Age Based Valuation
YEAR
TAXABLE
VALUE (1)
% CHANGE OVER
PRIOR YEAR
FAIR MARKET
VALUE (2)
% CHANGE OVER
PRIOR YEAR
2020 $ % $ %
2019 31,537,760,702 11.06 41,493,433,320 11.37
2018 28,398,218,663 10.65 37,255,665,617 10.16
2017 25,664,463,461 7.24 33,819,886,283 7.75
2016 23,932,707,816 10.07 31,386,040,131 9.76
2015 21,743,420,020 5.70 28,594,182,234 6.02
Including Fee-In-Lieu/Age Based Valuation
YEAR
TAXABLE
VALUE (1)
% CHANGE OVER
PRIOR YEAR
FAIR MARKET
VALUE (2)
% CHANGE OVER
PRIOR YEAR
2020 $ % $ %
2019 31,827,671,801 10.91 41,783,344,419 11.26
2018 28,698,075,594 10.57 37,555,522,547 10.10
2017 25,953,591,266 7.17 34,109,014,088 7.70
2016 24,217,702,072 9.94 31,671,034,387 9.71
2015 22,028,209,957 5.54 28,869,216,966 5.85
_________________________
(1) Source: Property Tax Division, Utah State Tax Commission.
(2) Estimated fair market value has been calculated by dividing the taxable value of primary residential property by
.55, which eliminates the 45% exemption on primary residential property granted under the Property Tax Act.
See “FINANCIAL INFORMATION REGARDING SALT LAKE CITY, UTAH — Property Tax Matters.”
See “FINANCIAL INFORMATION REGARDING SALT LAKE CITY, UTAH — Historical
Summaries of Taxable Values of Property.”
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HISTORICAL SUMMARIES OF TAXABLE VALUES OF PROPERTY {TO BE UPDATED.}
SALT LAKE CITY, UTAH
HISTORICAL SUMMARIES OF TAXABLE VALUES OF PROPERTY
TAX CALENDAR YEARS 2016 THROUGH 2020
2020 2019 2018 2017 2016
TAXABLE
VALUE
% OF
T.V.
TAXABLE
VALUE
TAXABLE
VALUE
TAXABLE
VALUE
TAXABLE
VALUE
Set by State Tax Commission—
Centrally Assessed
Total centrally assessed.......... $ 2,175,533,785 $ 2,042,492,033 $ 1,618,052,878 $ 1,610,083,284
Set by County Assessor—Locally
Assessed
Real property:
Primary residential ..................... 12,165,153,807 9,106,379,868 7,142,953,245 7,204,572,132
Secondary residential ................. 205,015,920 191,802,790 180,928,160 176,730,700
Commercial and industrial ......... 13,909,955,600 10,168,116,640 7,607,614,630 7,341,913,730
Unimproved Non-FAA-Vacant .. 2,252,380 1,286,100 944,740 945,030
Agricultural ................................ 80,200 132,660 58,730 62,270
Total real property .................... 26,282,457,907 19,467,718,058 14,932,499,505 14,724,223,862
Personal property:
Primary mobile homes ............... 2,890,504 3,248,517 3,745,243 3,709,447
Secondary mobile homes............ 7,231,515 5,638,833 5,256,207 6,782,678
Other business personal property 3,068,613,703 2,411,004,064 1,671,214,675 1,716,215,584
SCME (1) ..................................... 1,033,288 2,606,311 303,776 0
Total personal property ............. 3,079,769,010 2,422,497,725 1,680,519,901 1,726,707,709
Fee in lieu/age based property (2) .... 289,911,099 284,994,255 279,927,817 871,616,151
Total locally assessed ............... 29,652,138,016 22,175,210,039 16,892,947,223 17,322,547,722
Total taxable value ................... 31,827,671,801 $24,217,702,072 $18,511,000,101 $18,932,631,006
Total taxable value (less
fee in lieu/age based property) ..
31,537,760,702
$23,932,707,816
$18,231,072,284
$18,061,014,855
_________________________
(1) Semiconductor Manufacturing Equipment.
(2) See “FINANCIAL INFORMATION REGARDING SALT LAKE CITY, UTAH — Property Tax Matters.”
(Source: Property Tax Division, Utah State Tax Commission.)
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TAX COLLECTION RECORD
FISCAL
YEAR
TOTAL TAX
LEVY FOR
COLLECTED WITHIN THE
FISCAL YEAR OF THE LEVY(1)
COLLECTION IN
SUBSEQUENT
TOTAL COLLECTIONS
TO DATE
ENDED
JUNE 30
FISCAL YEAR
($000)
AMOUNT
($000)
PERCENTAGE
OF LEVY
YEARS
($000)
AMOUNT
($000)
PERCENTAGE
OF LEVY
2020 $102,635 $95,411 93.0% $ - $95,411 93.0%
2019 95,641 97,370 101.8 1,800 99,170 103.7
2018 95,092 93,960 98.8 727 94,687 99.6
2017 96,337 95,410 99.0 507 95,917 99.6
2016 92,356 91,429 99.0 485 91,914 99.5
_________________________
(1) Payments are not considered delinquent until after November 30.
SOME OF THE LARGEST TAXPAYERS IN THE CITY
TAXPAYER TYPE OF BUSINESS
2019
TAXABLE
VALUE(1)
% OF THE CITY’S
2017 TAXABLE
VALUE
LDS Church (Property Reserve, City
Creek Reserve, Deseret Title)
Real Estate Holding
$ 979,000,587
3.72%
PacifiCorp Electric Utility 510,504,967 1.94
Delta Airlines Air Transportation 299,937,120 1.14
Wasatch Plaza Holdings LLC Real Estate Holding 224,413,000 0.85
MPLD Husky LLC Machining, Fabrication 210,994,600 0.80
KBSIII, LLC Real Estate Holding 193,465,700 0.74
Questar Gas Natural Gas 167,999,450 0.64
Sky West Airlines Air Transportation 161,657,988 0.62
Verizon Communications Inc. Communication 134,678,945 0.51
AT&T Inc. Communication 128,840,105 0.49
$3,011,492,462
_________________________
(1) Taxable Value used in this table excludes all tax equivalent property associated with motor vehicles, watercraft, recreational
vehicles, and all other tangible personal property required to be registered with the State. See “FINANCIAL INFORMATION
REGARDING SALT LAKE CITY, UTAH — Taxable and Fair Market Value of Property.”
(Source: Salt Lake City Corporation Comprehensive Annual Financial Report for the year ended June 30, 2020.)
RECENT DEVELOPMENTS
General. Fiscal year 2021 general fund expenses are expected to end very close to budget.
Due to COVID-19 and the September 2020 Windstorm there have been unusual and unexpected
changes in spending. The administration and council have provided additional emergency
funding, and it is expected that these departments will be very close to budget on June 30, 2021.
Overall revenue for fiscal year 2021 is projected to be $9.0 million over budget. Permit
and License revenue is expected to be higher than budgeted due to increases in construction related
permitting. Total sales tax revenues are approximately $8.0 million over budget. Fines &
Forfeitures, Parking Meter Revenue and Miscellaneous Revenue are all under budget due to the
COVID-19 pandemic.
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Fund balance for the end of fiscal year 2019 was $67.2 million or 20.85% of total revenues
for the year. The City Council and administration have an internal goal to keep the fund balance
above 14% of total revenue for each fiscal year. In fiscal year 2018 the total fund balance was
$43.5 million (16.0%) and a conservative fund balance estimate for fiscal year 2020 is $47.5
million (14.5%).
Fund balance for the end of fiscal year 2020 was $67.2 million or 20.85% of total revenues
for the year. The City Council and administration have an internal goal to keep the fund balance
above 14% of total revenue for each fiscal year. In fiscal year 2019 the total fund balance was
$43.5 million (16.0%) and a conservative fund balance estimate for fiscal year 2020 is $47.5
million (14.5%).
Fiscal year 2021 budget grew by approximately 10%, an increase of $28.4, million as
compared to the previous year. Major General fund expense increases were $5.7 million mostly
associated with salary and benefit cost increases, 66 new positions at a budgeted cost of $3.4
million, a transfer of 68 police officers from the Salt Lake City International Airport at a cost of
$7.7 million funded by the Airport, $4.7 million of transportation initiatives funded through a new
sales tax and an increase in the transfer to the fleet fund of just over $4.3 million.
COVID-19. As the regional employment center, tourism destination, and entertainment
hub for the State of Utah, Salt Lake City has experienced a significant loss of revenues in the wake
of the COVID-19 pandemic. General fund estimated losses through Dec 31, 2020 exceed $48
million. Salt Lake City has incurred an estimated $6.5 million in unbudgeted local expenses in
response to this crisis.
The City has received $12,001,476 million from the Coronavirus Aid, Relief, and
Economic Security (CARES) Act funding allocated to the State and/or County and will receive an
additional installments of CARES funding in Fall of 2021. The City has also received $7,987,257
in Rental Assistance and $42,705,786 (first 50% installment) from The American Rescue Plan.
September 2020 Windstorm. On Sept 8, 2020 Salt Lake City experienced hurricane force
winds which caused thousands of trees and limbs to fall, causing property damage, power outages
and road and business closures. Downed trees blocked critical emergency routes throughout the
city as well as many thoroughfares preventing first responder access and critical daily residential
refuse collection. The windstorm created a state of local emergency under Utah Code and City
Code. With the help of the National Guard, State, County, and local jurisdictions, and volunteer
organizations, Salt Lake City removed and disposed of over 9,000 tons of debris.
The current estimate of losses from the windstorm exceeds $8 million. This projection
could change as we continue to clean up and repair damaged buildings, sidewalks, and irrigation
systems.
It currently appears that some windstorm related damages will be covered by the city’s
property insurance less a $100,000 deductible. The City is seeking FEMA Public Assistance to
help with the uninsured and underinsured damages.
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INVESTMENT CONSIDERATIONS
POTENTIAL IMPACT OF THE CORONAVIRUS
The recent outbreak of COVID-19 and its spread has been designated a global pandemic
by the World Health Organization and an emergency by federal and state governments. Since the
start of the pandemic, Presidential administrations, Congress, and other federal agencies as well as
states and local governmental units, including the City and the State, have enacted legislation
and/or issued orders or directives (collectively, “Governmental Actions”) to alleviate the effects of
COVID-19. Financial markets, including the stock markets in the United States and globally, have
seen volatility and declines that have been attributed to COVID-19 concerns.
The Governmental Actions, and other future federal, state, and local measures may have
both adverse and positive effects on the City and the Revenues. In addition, unemployment in the
State, business closures and/or restrictions in the State and market fluctuation during the pandemic
may have an adverse effect on the City or the Revenues. The City continues to review the possible
impacts of these various actions and events.
The City cannot predict (a) the duration or extent of the COVID-19 pandemic or any other
outbreak emergency; (b) whether and to what extent the COVID-19 pandemic or other outbreak
or emergency may disrupt the local or global economy, manufacturing, or supply chain, or whether
any such disruption may adversely impact the City or the Revenues; or (c) the effect of the
COVID-19 pandemic on the City, or whether any such effect may adversely impact the City or the
Revenues. The COVID-19 pandemic and resulting business and market disruptions may have an
adverse impact on the City or the Revenues to an extent that may be material. See “FINANCIAL
INFORMATION REGARDING SALT LAKE CITY, UTAH–Recent Developments–COVID-19” for
additional information.
CLIMATE CHANGE
Climate change caused by human activities may have adverse effects on the City. As
greenhouse gas emissions continue to accumulate in the atmosphere as a result of economic
activity, climate change is expected to intensify, increasing the frequency, severity and timing of
extreme weather events such as coastal storm surges, drought, wildfires, floods and heat waves,
and raising sea levels. The future fiscal impact of climate change on the City is difficult to predict,
but it could be significant and it could have a material adverse effect on the City’s finances by
requiring greater expenditures to counteract the effects of climate change or by changing the
business and activities of City residents. The City considers the potential effects of climate change
in its planning.
CYBERSECURITY
The risk of cyberattacks against commercial enterprises, including those operated for a
governmental purpose, has become more prevalent in recent years. At least one of the rating
agencies factors the risk of such an attack into its ratings analysis, recognizing that a cyberattack
- 41 -
could affect liquidity, public policy and constituent confidence, and ultimately credit quality. A
cyberattack could cause the informational systems of the City to be compromised and could limit
operational capacity, for short or extended lengths of time and could bring about the release of
sensitive and private information. Additionally, other potential negative consequences include
data loss or compromise, diversion of resources to prevent future incidences and reputational
damage. To date, the City has not been the subject of a successful cyberattack. The City believes
it has made all reasonable efforts to ensure that any such attack is not successful and that the
information systems of the City are secure. However, there can be no assurance that a cyberattack
will not occur in a manner resulting in damage to the City’s information systems or other
challenges. The City has insurance coverage for cyber liability. See “FINANCIAL INFORMATION
REGARDING SALT LAKE CITY, UTAH–Insurance Coverage” herein.
TAX TREATMENT
Federal tax law contains a number of requirements and restrictions which apply to the
Bonds, including investment restrictions, periodic payments of arbitrage profits to the United
States, requirements regarding the proper use of bond proceeds and the facilities financed
therewith, and certain other matters. The City has covenanted to comply with all requirements
that must be satisfied in order for the interest on the Bonds to be excludable from gross income for
federal income tax purposes. Failure to comply with certain of such covenants could cause interest
on the Bonds to become includable in gross income for federal income tax purposes retroactively
to the date of issuance of the Bonds.
Subject to the City’s compliance with the above-referenced covenants, under present law,
in the opinion of Bond Counsel, interest on the Bonds is excludable from the gross income of the
owners thereof for federal income tax purposes and is not included as an item of tax preference in
computing the federal alternative minimum tax for individuals under the Internal Revenue Code
of 1986, as amended (the “Code”).
In rendering its opinion, Bond Counsel will rely upon certifications of the City with respect
to certain material facts within the City’s knowledge. Bond Counsel’s opinion represents its legal
judgment based upon its review of the law and the facts that it deems relevant to render such
opinion and is not a guarantee of a result.
Ownership of the Bonds may result in collateral federal income tax consequences to certain
taxpayers, including, without limitation, corporations subject to the branch profits tax, financial
institutions, certain insurance companies, certain S corporations, individual recipients of Social
Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or
continued) indebtedness to purchase or carry tax-exempt obligations. Prospective purchasers of
the Bonds should consult their tax advisors as to applicability of any such collateral consequences.
The issue price for original issue discount (as further discussed below) and market discount
purposes (the “OID Issue Price”) for each maturity of the Bonds is the price at which a substantial
amount of such maturity of the Bonds is first sold to the public (excluding bond houses and brokers
and similar persons or organizations acting in the capacity of underwriters, placement agents or
- 42 -
wholesalers). The OID Issue Price of a maturity of the Bonds may be different from the price set
forth, or the price corresponding to the yield set forth, on the inside cover page hereof.
If the OID Issue Price of a maturity of the Bonds is less than the principal amount payable
at maturity, the difference between the OID Issue Price of each maturity, if any, of the Bonds (the
“OID Bonds”) and the principal amount payable at maturity is original issue discount.
For an investor who purchases an OID Bond in the initial public offering at the Issue Price
for such maturity and who holds such OID Bond to its stated maturity, subject to the condition that
the City complies with the covenants discussed above, (a) the full amount of original issue discount
with respect to such OID Bond constitutes interest which is excludable from the gross income of
the owner thereof for federal income tax purposes; (b) such owner will not realize taxable capital
gain or market discount upon payment of such OID Bond at its stated maturity; (c) such original
issue discount is not included as an item of tax preference in computing the alternative minimum
tax for individuals under the Code and (d) the accretion of original issue discount in each year may
result in certain other collateral federal income tax consequences in each year even though a
corresponding cash payment may not be received until a later year. Owners of OID Bonds should
consult their own tax advisors with respect to the state and local tax consequences of original issue
discount on such OID Bonds.
Owners of the Bonds who dispose of Bonds prior to the stated maturity (whether by sale,
redemption or otherwise), purchase Bonds in the initial public offering, but at a price different
from the OID Issue Price or purchase Bonds subsequent to the initial public offering should consult
their own tax advisors.
If a Bond is purchased at any time for a price that is less than the Bond’s stated redemption
price at maturity or, in the case of an OID Bond, its OID Issue Price plus accreted original issue
discount (the “Revised Issue Price”), the purchaser will be treated as having purchased a Bond
with market discount subject to the market discount rules of the Code (unless a statutory de minimis
rule applies). Accrued market discount is treated as taxable ordinary income and is recognized
when a Bond is disposed of (to the extent such accrued discount does not exceed gain realized) or,
at the purchaser’s election, as it accrues. Such treatment would apply to any purchaser who
purchases an OID Bond for a price that is less than its Revised Issue Price. The applicability of
the market discount rules may adversely affect the liquidity or secondary market price of such
Bond. Purchasers should consult their own tax advisors regarding the potential implications of
market discount with respect to the Bonds.
An investor may purchase a Bond at a price in excess of its stated principal amount. Such
excess is characterized for federal income tax purposes as “bond premium” and must be amortized
by an investor on a constant yield basis over the remaining term of the Bond in a manner that takes
into account potential call dates and call prices. An investor cannot deduct amortized bond
premium relating to a tax-exempt bond. The amortized bond premium is treated as a reduction in
the tax-exempt interest received. As bond premium is amortized, it reduces the investor’s basis in
the Bond. Investors who purchase a Bond at a premium should consult their own tax advisors
regarding the amortization of bond premium and its effect on the Bond’s basis for purposes of
- 43 -
computing gain or loss in connection with the sale, exchange, redemption or early retirement of
the Bond.
There are or may be pending in the Congress of the United States legislative proposals,
including some that carry retroactive effective dates, that, if enacted, could alter or amend the
federal tax matters referred to above or adversely affect the market value of the 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. Prospective purchasers of the Bonds should
consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond
Counsel expresses no opinion regarding any pending or proposed federal tax legislation.
The Internal Revenue Service (the “Service”) has an ongoing program of auditing
tax-exempt obligations to determine whether, in the view of the Service, interest on such
tax-exempt obligations is includable in the gross income of the owners thereof for federal income
tax purposes. It cannot be predicted whether or not the Service will commence an audit of the
Bonds. If an audit is commenced, under current procedures the Service may treat the City as a
taxpayer and the Bondholders may have no right to participate in such procedure. The
commencement of an audit could adversely affect the market value and liquidity of the Bonds until
the audit is concluded, regardless of the ultimate outcome.
Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt
obligations, including the Bonds, are in certain cases required to be reported to the Service.
Additionally, backup withholding may apply to any such payments to any Bond owner who fails
to provide an accurate Form W-9 Request for Taxpayer Identification Number and Certification,
or a substantially identical form, or to any Bond owner who is notified by the Service of a failure
to report any interest or dividends required to be shown on federal income tax returns. The
reporting and backup withholding requirements do not affect the excludability of such interest
from gross income for federal tax purposes.
The Bonds are treated as issued in 2009 or 2010 for purposes of Section 265(b)(7) of the
Code relating to interest expense deductibility for financial institutions. The treatment of interest
expense for financial institutions owning the Bonds may be more favorable than the treatment
provided to owners of new money tax-exempt bonds issued after December 31, 2010 or before
January 1, 2009, but may be less favorable than treatment provided to owners of bank qualified
bonds. Financial institutions should consult their tax advisors concerning such treatment.
UTAH INCOME TAXATION
In the opinion of Bond Counsel, under the existing laws of the State of Utah, as presently
enacted and construed, interest on the Bonds is exempt from taxes imposed by the Utah Individual
Income Tax Act. Bond Counsel expresses no opinion with respect to any other taxes imposed by
the State or any political subdivision thereof. Ownership of the Bonds may result in other state
and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding
any such collateral consequences arising with respect to the Bonds. Prospective purchasers of the
Bonds should consult their tax advisors regarding the applicability of any such state and local
taxes.
- 44 -
LITIGATION
The City Attorney reports the following matters involving potential financial liability of
the City:
Lawsuits are periodically filed against the City and/or its employees, involving tort and
civil rights matters. The City has a statutory obligation to defend and indemnify its officers and
employees in relation to lawsuits arising from acts or failures to act of the officers or employees
while in the scope and course of employment.
The City maintains a governmental immunity fund for claims against the City. In the event
the fund is not sufficient to pay any outstanding judgment or judgments, the City has the ability
under State law to levy a limited ad valorem tax to pay such judgments. This tax levy is separate
and apart from the other taxing powers of the City.
The City also has contract claims, condemnation proceedings and environmental matters,
none of which is expected to materially adversely affect the City’s financial condition.
CONTINUING DISCLOSURE
The City will enter into a Continuing Disclosure Agreement (the “Agreement”), in
substantially the form attached hereto as APPENDIX B, for the benefit of the beneficial owners of
the 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 Securities and Exchange Commission (the
“Commission”) under the Securities Exchange Act of 1934.
The City has entered into a number of continuing disclosure undertakings pursuant to the
Rule with respect to the bonds it has issued and has contracted with a number of dissemination
agents to file annual information and notices of certain events on behalf of the City. In the previous
five years the City provided its annual financial information and audited financial statements to
the applicable dissemination agent 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 water and sewer bonds, during the previous five years
the City filed the audited financial statements of the City’s utilities 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
and sewer revenue bonds as required. At the time of the initial corrective filings the City
determined that such filings were immaterial with respect to certain maturities of the water and
sewer revenue bonds that had already matured, and corrective filing were not made for such
maturities. In connection with a prior purchase of certain of the City’s general obligation bonds,
the purchaser requested that corrective filings be made for such previously matured water and
sewer revenue bonds. The City complied with such request despite having determined that such
filings were not material.
- 45 -
The City has adopted continuing disclosure policies and procedures to help ensure
compliance with its continuing disclosure undertakings.
A failure by the City to comply with the Agreement will not constitute a default under the
Resolution and beneficial owners of the Bonds are limited to the remedies described in the
Agreement. A failure by the City to comply with the Agreement 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 Bonds in the secondary market. Consequently, such a
failure may adversely affect the transferability and liquidity of the Bonds and their market price.
See “FORM OF CONTINUING DISCLOSURE AGREEMENT” attached hereto as APPENDIX B for the
information to be provided, the events which will be noticed on an occurrence basis and the other
terms of the Agreement, including termination, amendment and remedies.
APPROVAL OF LEGAL PROCEEDINGS
The authorization and issuance of the Bonds are subject to the approval of Chapman and
Cutler LLP, Bond Counsel to the City. Certain legal matters will be passed upon for the City by
the City Attorney and by Chapman and Cutler LLP, as the City’s Disclosure Counsel. The
approving opinion of Bond Counsel will be delivered with the Bonds in substantially the form set
forth in APPENDIX C of this Official Statement and will be made available upon request from the
contact persons as indicated under “INTRODUCTION — Contact Persons.”
The various legal opinions to be delivered concurrently with the delivery of the Bonds
express the professional judgment of the attorneys rendering the opinions as to the legal issues
explicitly addressed therein. By rendering a legal opinion, the opinion giver does not become an
insurer or guarantor of that expression of professional judgment, of the transaction opined upon,
or of the future performance of parties to the transaction. Nor does the rendering of an opinion
guarantee the outcome of any legal dispute that may arise out of the transaction.
BOND RATINGS
As of the date of this Official Statement, the Bonds have been rated “____” and “____” by
Fitch Ratings, Inc. and by Moody’s Investors Service, Inc., respectively.
Any explanation of the significance of the ratings may only be obtained from the rating
service furnishing the same. There is no assurance that the ratings given will be maintained for
any period of time or that the ratings will not be revised downward or withdrawn entirely by the
rating agency if, in its judgment, circumstances so warrant. Any such downward revision or
withdrawal of such ratings may have an adverse effect on the market price of the Bonds.
MUNICIPAL ADVISOR
The City has entered into an agreement with Stifel, Nicolaus & Company, Incorporated
(the “Municipal Advisor”), whereunder the Municipal Advisor provides financial
recommendations and guidance to the City with respect to preparation for sale of the Bonds, timing
- 46 -
of the sale, tax-exempt bond market conditions, costs of issuance and other factors related to the
sale of the Bonds. The Municipal Advisor has participated in the preparation of and provided
information for certain portions of the Official Statement, but has not audited, authenticated or
otherwise verified the information set forth in the Official Statement, or any other related
information available to the City, with respect to accuracy and completeness of disclosure of such
information, and the Municipal Advisor makes no guaranty, warranty or other representation
respecting accuracy and completeness of the Official Statement or any other matter related to the
Official Statement.
INDEPENDENT AUDITORS
The basic financial statements of Salt Lake City Corporation as of and for the Year Ended
June 30, 2020 included in APPENDIX A to this Official Statement, have been audited by Eide Bailly
LLP, independent auditors, as stated in their report appearing herein.
MISCELLANEOUS
All quotations contained herein from and summaries and explanations of the State
Constitution, statutes, programs and laws of the State, court decisions and the Resolution, do not
purport to be complete, and reference is made to the State Constitution, statutes, programs, laws,
court decisions and the Resolution for full and complete statements of their respective provisions.
Any statements in this Official Statement involving matters of opinion, whether or not
expressly so stated, are intended as such and not as representation of fact.
The appendices attached hereto are an integral part of this Official Statement and should
be read in conjunction with the foregoing material.
This Preliminary Official Statement is in form deemed final for purposes of paragraph
(b)(1) of Rule 15c2-12 of the Securities and Exchange Commission.
This Official Statement and its distribution and use have been duly authorized by the City.
SALT LAKE CITY, UTAH
A-1
APPENDIX A
SALT LAKE CITY CORPORATION FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2020
B-1
APPENDIX B
FORM OF CONTINUING DISCLOSURE AGREEMENT
C-1
APPENDIX C
PROPOSED FORM OF OPINION OF BOND COUNSEL
Exhibit 3 Delegating Bond Resolution
EXHIBIT 3
[ATTACH FORM OF CERTIFICATE OF DETERMINATION]
Draft
7/29/21
Exhibit 3-2021 Certificate of Determination.docx
8710600/RDB/mo
CERTIFICATE OF DETERMINATION
PURSUANT TO
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF
GENERAL OBLIGATION BONDS, SERIES 2021
DATED: [NOVEMBER 3], 2021
1. Authority; Definitions. Pursuant to Resolution No. __ of 2021 Authorizing the
Issuance and Sale of up to $20,000,000 General Obligation Bonds, Series 2021, adopted by the
City Council of Salt Lake City, Utah (the “Issuer”), on September 21, 2021 (the “Resolution”),
the Issuer has authorized the issuance of its General Obligation Bonds, Series 2021 (the “Bonds”).
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.
2. Acceptance of Bid. The bid of _______________, __________, __________ (the
“Purchaser”), conforms to the parameters, deadlines and procedures set forth in the notice of sale
prepared in connection with the advertisement for sale of the Bonds and is the best bid received
for the purchase of the Bonds, resulting in the sale of the Bonds at the lowest obtainable interest
rate (a copy of the bid, together with a list of bids received for the Bonds, is attached hereto as
Exhibit A). The bid of the Purchaser for the purchase of the Bonds, which is set out in full in
Exhibit A hereto, is hereby accepted, it being hereby found, determined and declared that the Bonds
bear interest at the lowest obtainable interest rate. The Bonds shall be issued by the Issuer for the
purpose set forth in the Resolution. The sale of the Bonds to the Purchaser at the price of
$__________ (representing the par amount of the Bonds, plus $__________ original issue
premium and less $__________ Purchaser’s discount) is hereby confirmed. The Bonds shall be
delivered to the Purchaser and the proceeds of sale thereof applied as provided in the Resolution
and as set forth below.
3. Aggregate Principal Amount and Maturity of Bonds. The Bonds shall be issued for
the purpose specified in Section 202 of the Resolution in the aggregate principal amount of
$__________. The Bonds shall mature on the dates and in the principal amounts, and shall bear
interest payable semiannually on June 15 and December 15, commencing __________ 15, 202_
at the respective rates per annum, shown below:
- 2 - Certificate of Determination
JUNE 15
AMOUNT
MATURING
INTEREST
RATE
4. Use of Proceeds and Legally Available Funds of the Issuer. All of the proceeds of
the sale of the Bonds shall be deposited in the Project Account established pursuant to the
Resolution.
5. Authorized Denominations. The Bonds shall be issued in the Authorized
Denomination of $5,000 or any whole multiple thereof.
6. Redemption Provisions. The Bonds maturing on or after June 15, 203_, shall be
subject to redemption prior to maturity, at the election of the Issuer, on __________ 15, 203_ (the
“First Redemption Date”), and on any date thereafter, in whole or in part, from such maturities or
parts thereof as shall be selected by the Issuer, upon notice given as provided in the Resolution, at
a redemption price equal to 100% of the principal amount of the Bonds to be redeemed plus
accrued interest thereon to the date fixed for redemption. Bonds maturing on or prior to the First
Redemption Date shall not be subject to optional redemption.
7. Book-Entry Bonds. The Bonds shall be initially issued as Book-Entry Bonds.
(Signature page follows.)
- 3 - Certificate of Determination
IN WITNESS WHEREOF, I have hereunto set my hand as of the day and year first above
written.
By ____________________________________
Mayor
By ____________________________________
Chair,
Salt Lake City Council
APPROVED AS TO FORM:
By ____________________________________
Senior City Attorney
Exhibit A Certificate of Determination
EXHIBIT A
Copies of Winning Bid and List of Bids Received for the Bonds
Exhibit 4 - 1 Delegating Bond Resolution
EXHIBIT 4
NOTICE OF BONDS TO BE ISSUED
NOTICE IS HEREBY GIVEN pursuant to the provisions of Section 11-14-316, Utah Code
Annotated 1953, as amended, that on September 21, 2021, the City Council of Salt Lake City,
Utah (the “City”), adopted a resolution (the “Resolution”) in which it authorized and approved
the issuance of its general obligation bonds (the “Bonds”), in an aggregate principal amount of
not to exceed $23,600,000, to bear interest at a rate or rates of not to exceed 5.00% per annum, to
mature over a period not to exceed 21 years from their date or dates and to be sold at a discount
from par, expressed as a percentage of the principal amount, of not to exceed 2.00%.
Pursuant to the Resolution, the Bonds are to be issued for the purpose of raising money for
paying all or a portion of the costs to improve various streets and roads throughout the City and
related infrastructure improvements.
The Bonds will be secured by the full faith and credit of the City. The City currently has
$106,525,000 par amount of bonds currently outstanding that are secured by the full faith and
credit of the City. More detailed information relating to the City’s outstanding bonds can be found
in the City’s most recent Comprehensive Financial Reports that are available on the Office of the
Utah State Auditor’s website (www.auditor.utah.gov).
Assuming a final maturity for the Bonds of approximately 20 years from the date hereof
and that the Bonds are issued in an aggregate principal amount of $23,600,000 and are held until
maturity, based on the City’s currently expected financing structure and interest rates in effect
around the time of publication of this notice, the estimated total cost to the City of the proposed
Bonds is $27,795,590.
The Bonds are to be issued and sold by the City pursuant to the Resolution. A copy of the
Resolution may be examined by appointment at the office of the City Recorder, City and County
Building, 451 South State Street, Room 415, Salt Lake City, Utah. The Resolution may be
examined during regular business hours from 8:00 a.m. to 5:00 p.m. by appointment. To schedule
an appointment or request a protected, pdf copy of the Resolution please call (801) 535-7671.
Additionally, a protected, pdf copy of the Resolution may be requested by sending an email
slcrecorder@slcgov.com. The Resolution shall be so available for inspection for a period of at
least 30 days from and after the date of the publication of this notice.
NOTICE IS FURTHER GIVEN that pursuant to law for a period of 30 days from and after the
date of the publication of this notice, any person in interest shall have the right to contest the
legality of the above-described Resolution of the City Council or the Bonds authorized thereby or
any provisions made for the security and payment of the Bonds. After such time, no one shall have
any cause of action to contest the regularity, formality or legality of the Resolution, the Bonds or
the provisions for their security or payment for any cause.
Exhibit 4 - 2 Delegating Bond Resolution
DATED this 21st day of September, 2021.
SALT LAKE CITY, UTAH
By ____________________________________
City Recorder
[SEAL]
Cindy Trishman (Sep 21, 2021 20:47 MDT)
Sep 21, 2021
Draft
7/29/21
Exhibit 5-Dissemination Agency Agreement.docx
8710600/RDB/mo
DISSEMINATION AGENCY AGREEMENT
with respect to the
CONTINUING DISCLOSURE UNDERTAKING
OF SALT LAKE CITY, UTAH
(as an “Obligated Person”)
for the purpose of providing
continuing disclosure information
under Section (b)(5) of Rule 15c2-12
DATED: [NOVEMBER 30, 2021]
This Dissemination Agency Agreement (the “Agency Agreement”) is executed and
delivered by Salt Lake City, Utah (the “Issuer”), and U.S. Bank National Association (the
“Dissemination Agent”) in connection with the issuance of $__________ General Obligation
Bonds, Series 2021 (the “Bonds”). The Bonds are being issued pursuant to Resolution No. __ of
2021, Authorizing the Issuance and Sale of the the Bonds, including as a part of such resolution
that certain Certificate of Determination, dated __________, 2021 (collectively, the
“Resolution”).
Simultaneously with the execution and delivery of this Agency Agreement, the Issuer has
executed and delivered its Continuing Disclosure Agreement dated as of the date hereof (as it may
be amended from time to time, the “Undertaking”), a copy of which is attached hereto as Exhibit I.
The Issuer and the Dissemination Agent covenant and agree as follows:
SECTION 1. PURPOSE OF THIS AGREEMENT. This Agency Agreement is executed and
delivered by the Issuer and the Dissemination Agent as of the date hereof in order to assist the
Issuer in complying with the filing requirements contained in the Undertaking.
SECTION 2. DEFINITIONS. The terms set forth below shall have the following meanings
in this Agency Agreement, unless the context clearly otherwise requires.
“Annual Financial Information” means the financial information and operating data
described in Exhibit I to the Undertaking.
“Annual Financial Information Disclosure” means the dissemination of disclosure
concerning Annual Financial Information and the dissemination of the Audited Financial
Statements as set forth in Section 4.
“Audited Financial Statements” means the audited financial statements of the Issuer
prepared pursuant to the standards and as described in Exhibit I to the Undertaking.
“Authorized Issuer Official” means the Mayor, the Chief of Staff, the City Recorder, any
Deputy City Recorder, the City Treasurer or the Deputy Treasurer of the City.
- 2 - Dissemination Agency Agreement
“Commission” means the Securities and Exchange Commission.
“Dissemination Agent” means any person from time to time acting as the Dissemination
Agent under this Agency Agreement, initially U.S. Bank National Association.
“EMMA” means the MSRB through its Electronic Municipal Market Access system for
municipal securities disclosure or through any other electronic format or system prescribed by the
MSRB for purposes of the Rule.
“Event” means the occurrence of any of the events set forth in Exhibit II to the
Undertaking.
“MSRB” means the Municipal Securities Rulemaking Board.
“Reportable Event” means the occurrence of an Event with respect to the Bonds that
should be disclosed as provided in the Undertaking and Section 5 hereof.
“Reportable Events Disclosure” means dissemination of disclosure concerning a
Reportable Event as set forth in Section 5.
“Rule” means 15c2-12 adopted by the Commission under the Securities Exchange Act of
1934, as the same may be amended from time to time.
“State” means the State of Utah.
SECTION 3. CUSIP NUMBER/FINAL OFFICIAL STATEMENT. The CUSIP Numbers of the
Bonds are as follows:
YEAR OF MATURITY
(JUNE 15)
CUSIP
NUMBER
YEAR OF MATURITY
(JUNE 15)
CUSIP
NUMBER
The Final Official Statement relating to the Bonds is dated __________, 2021 (the “Final
Official Statement”), and a true and complete copy of the Final Official Statement is attached
hereto as Exhibit II.
- 3 - Dissemination Agency Agreement
SECTION 4. ANNUAL FINANCIAL INFORMATION DISCLOSURE. Subject to Section 12 of this
Agency Agreement, the Issuer hereby covenants that it will deliver its Annual Financial
Information and its Audited Financial Statements (in the form and by the dates set forth in Exhibit I
to the Undertaking), as further described in Section 4 of the Undertaking, signed by an Authorized
Issuer Official, to the Dissemination Agent for dissemination as set forth in Section 6.
SECTION 5. EVENTS NOTIFICATION; REPORTABLE EVENTS DISCLOSURE. Subject to
Section 12 of this Agency Agreement, the Issuer hereby covenants that it will provide a written
description to the Dissemination Agent of Reportable Events Disclosure in a timely manner, signed
by an Authorized Issuer Official. The Dissemination Agent shall have no duty or responsibility to
review the determination of the Issuer that such Event is a Reportable Event or the written
description of such Reportable Event.
The Dissemination Agent will disseminate Reportable Events Disclosure as set forth in
Section 7 herein.
SECTION 6. MANNER AND TIME BY WHICH ANNUAL FINANCIAL INFORMATION DISCLOSURE IS
TO BE DISSEMINATED BY THE DISSEMINATION AGENT; DUTY OF DISSEMINATION AGENT. Annual
Financial Information will be provided by the Issuer to the Dissemination Agent at least fifteen
(15) days prior to the date such information must be delivered to EMMA. Audited Financial
Statements will be provided by the Issuer as soon as practicable after the Audited Financial
Statements are available to the Issuer, to the Dissemination Agent. Thirty (30) days prior to the
date the Issuer is required to provide information to the Dissemination Agent, the Dissemination
Agent shall notify the Issuer that such information is due, and shall inform the Issuer in writing of
any changes known to the Dissemination Agent in the form or media requirements of EMMA,
which have occurred since the date of the last filing by the Issuer (or since the date hereof, as the
case may be). MSRB Rule G-32 currently requires all EMMA filings to be in word-searchable
PDF format. This requirement extends to all documents to be filed with EMMA, including
financial statements and other externally prepared reports.
The Dissemination Agent is hereby directed by the Issuer to cause the Annual Financial
Information and the Audited Financial Statements to be delivered to EMMA in such manner so
that such entity receives the information within two (2) business days after receipt of such
information by the Dissemination Agent.
The Dissemination Agent agrees to so disseminate such information in the form delivered
to it by the Issuer. The Dissemination Agent is acting hereunder solely in an agency capacity, as
more fully described in this Agency Agreement, and as such is merely a conduit for the Issuer, and
shall have no liability or responsibility for the form, accuracy or completeness of any information
furnished hereunder. Any information furnished by the Dissemination Agent hereunder may
contain a legend to such effect.
The Dissemination Agent shall promptly file a report with the Issuer stating the date the
Annual Financial Information Disclosure was filed and where such information was filed.
- 4 - Dissemination Agency Agreement
In the event that the Dissemination Agent has not received the Annual Financial
Information Disclosure by the dates on which such information is required to be filed with EMMA,
the Issuer hereby instructs the Dissemination Agent to promptly notify EMMA of such failure, and
the Dissemination Agent shall promptly deliver to the Issuer a copy of its notification to EMMA
of such failure.
SECTION 7. MANNER AND TIME BY WHICH REPORTABLE EVENTS DISCLOSURE IS TO BE MADE
PUBLIC BY THE DISSEMINATION AGENT. The Dissemination Agent is hereby directed by the Issuer
to cause the Reportable Events Disclosure to be delivered to EMMA in such manner so that such
entity receives the information no later than ten (10) business days after the occurrence of such
Reportable Event (as such date of occurrence is specified in the Reportable Events Disclosure) or,
if received after such ten (10) business days, not more than one (1) business days after receipt of
such information by the Dissemination Agent.
The Dissemination Agent agrees to so disseminate such information in the form delivered
to it by the Issuer. The Dissemination Agent is acting hereunder solely in an agency capacity, as
more fully described in Section 14 of this Agency Agreement, and as such is merely a conduit for
the Issuer, and shall have no liability or responsibility for the accuracy or completeness of any
information furnished hereunder. Any information furnished by the Dissemination Agent
hereunder may contain a legend to such effect.
The Dissemination Agent shall promptly file a report with the Issuer stating the date the
Reportable Events Disclosure was filed and where such information was filed.
SECTION 8. TRANSMITTAL MEDIA. Subject to Section 10 hereof, all such Annual Financial
Information Disclosure or any written description of a Reportable Event shall be furnished by the
Issuer to the Dissemination Agent in word-searchable PDF format or in such other form or format
as may be subsequently agreed upon by the Issuer and the Dissemination Agent in order to
accommodate filing requirements of EMMA. Such filing shall be made to the following address,
or to such other address (including any electronic mail address) as may be specified in writing to
the Issuer by the Dissemination Agent from time to time:
U.S. Bank National Association
Attn: Laurel Bailey
170 South Main Street, Suite 200
Salt Lake City, Utah 84101
One business day prior to the date the Dissemination Agent is required to notify the Issuer
that Annual Financial Information is due or upon receipt of a Reportable Events Disclosure, the
Dissemination Agent shall determine, in the manner it deems appropriate, the manner and medium
by which continuing disclosure information is to be transmitted and filed with EMMA.
SECTION 9. CONSEQUENCES OF FAILURE OF THE ISSUER TO PROVIDE INFORMATION. In the
event that the Issuer shall fail to provide Annual Financial Information Disclosure when the same
is due to EMMA pursuant to the Undertaking, the Issuer has instructed the Dissemination Agent
in Section 6 of this Agency Agreement to notify EMMA.
- 5 - Dissemination Agency Agreement
A default hereunder (a) shall not be deemed an Event of Default under the Resolution and
(b) shall not, in and of itself, constitute a violation of any of the Issuer’s obligations set forth in the
Undertaking.
SECTION 10. AMENDMENTS; WAIVER. Notwithstanding any other provision of this Agency
Agreement, the Issuer and the Dissemination Agent may amend this Agency Agreement, and any
provision of this Agency Agreement may be waived, if such amendment or waiver is supported by
a certified resolution or ordinance of the Issuer authorizing such amendment or waiver.
In the event that the Commission or the MSRB or other regulatory authority shall approve
or require Annual Financial Information Disclosure or Reportable Events Disclosure to be made
to a central post office, governmental agency or similar entity other than EMMA or in lieu of
EMMA, the Dissemination Agent shall, if required, make such dissemination to such central post
office, governmental agency or similar entity in the form required by such entity without the
necessity of amending this Agency Agreement.
SECTION 11. TERMINATION OF THIS AGENCY AGREEMENT. Either party to this Agency
Agreement may terminate this Agency Agreement by giving written notice to the other party at
least 30 days prior to such termination. The Dissemination Agent shall be fully discharged at the
time any such termination is effective. The Issuer is not required to appoint a successor
Dissemination Agent. The absence of a Dissemination Agent shall not relieve the Issuer of its
responsibilities pursuant to the Undertaking.
SECTION 12. ADDITIONAL INFORMATION. Nothing in this Agency Agreement shall be
deemed to prevent the Issuer from delivering any other information to the Dissemination Agent,
using the means of dissemination set forth in this Agency Agreement or any other means of
communication, or including any other information in any Annual Financial Information
Disclosure or notice of occurrence of a Reportable Event, in addition to that which is required by
this Agency Agreement. If the Issuer includes any information from any document or notice of
occurrence of a Reportable Event in addition to that which is specifically required by this Agency
Agreement, the Issuer shall have no obligation under this Agency Agreement to update such
information or include it in any future disclosure or notice of occurrence of a Reportable Event.
SECTION 13. INDEMNIFICATION. The Issuer hereby agrees to hold harmless and to
indemnify the Dissemination Agent, its employees, officers, directors, agents and attorneys from
and against any and all claims, damages, losses, liabilities, reasonable costs and expenses
whatsoever (including attorneys’ fees and expenses) which may be incurred by the Dissemination
Agent by reason of, or in connection with the performance of its duties, the exercise of any of its
powers or rights, or the disclosure of information in accordance with this Agency Agreement, it
being expressly understood that such indemnification does not extend to such claims, damages,
losses, liabilities, costs or expenses resulting directly from the negligence or willful misconduct of
the Dissemination Agent in the performance of its express duties under this Agency Agreement.
- 6 - Dissemination Agency Agreement
SECTION 14. RIGHTS, DUTIES AND LIMITATIONS WITH RESPECT TO THE DISSEMINATION AGENT.
(a) The Dissemination Agent undertakes to perform such duties and only such duties as
are specifically set forth in this Agency Agreement, and no implied covenants or obligations shall
be read into this Agency Agreement against the Dissemination Agent.
(b) In the absence of bad faith on its part, the Dissemination Agent may conclusively
rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Dissemination Agent and conforming to the requirements
of this Agency Agreement.
(c) In the case of any Annual Financial Information Disclosure or any Reportable Events
Disclosure, or any opinions which by any provision hereof are specifically required to be furnished
to the Dissemination Agent, the Dissemination Agent shall be under a duty to examine the same
to determine whether or not they conform to the requirements of this Agency Agreement, but shall
be under no duty to verify independently or investigate the accuracy or completeness of any
information contained therein or the correctness of any opinion furnished hereunder.
(d) No provision of this Agency Agreement shall require the Dissemination Agent to
expend or risk its own funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of any of its rights or powers.
(e) The Dissemination Agent may rely and shall be protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, or other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties, including without limitation any written
direction signed by an Authorized Issuer Official.
(f) Any information, including the Annual Financial Information Disclosure or a
description of a Reportable Event of the Issuer mentioned herein shall be sufficiently authenticated
for purposes of dissemination hereunder if it is accompanied by a written instrument signed by the
Authorized Issuer Official.
(g) The Dissemination Agent may consult with counsel of its choice and the written
advice of such counsel or any opinion of counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon, it being understood for purposes of this provision that such counsel may, with
the consent of the Issuer, be counsel to the Issuer.
(h) The Dissemination Agent shall not be bound to make any investigation into the facts
or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order or other paper or document.
SECTION 15. COMPENSATION. The Issuer hereby agrees to compensate the Dissemination
Agent for the services provided and the expenses incurred pursuant to this Agency Agreement, in
an amount to be agreed upon from time to time hereunder and to reimburse the Dissemination
- 7 - Dissemination Agency Agreement
Agent upon its request for all reasonable expenses, disbursements and advances incurred by the
Dissemination Agent hereunder (including any reasonable compensation and expenses of
counsel), except any such expense, disbursement or advance that may be attributable to its
negligence, willful misconduct, or bad faith.
SECTION 16. BENEFICIARIES. This Agency Agreement shall inure solely to the benefit of
the Issuer and the Dissemination Agent, and shall create no rights in any other person or entity.
SECTION 17. RECORDKEEPING. The Dissemination Agent shall maintain records of all
Annual Financial Information Disclosure and Reportable Events Disclosure including the content
of such disclosure, the names of the entities where such disclosure was filed and the date of filing
such disclosure, and any return receipts and copies of such information shall be available to the
Issuer upon reasonable request and upon the payment of reasonable copying and delivery charges.
Nothing herein shall require or permit delivery of any Annual Financial Information, Audited
Financial Statements or Reportable Events Disclosure to any Bondholder, broker, prospective
investor or any other third party by the Dissemination Agent.
SECTION 18. GOVERNING LAW. This Agency Agreement shall be governed by the laws of
the State of Utah.
SECTION 19. COUNTERPARTS. This Agency Agreement may be executed in multiple
counterparts, each of which shall be regarded for all purposes as an original; and such counterparts
shall constitute but one and the same instrument.
SECTION 20. REPRESENTATION REGARDING ETHICAL STANDARDS FOR ISSUER OFFICERS
AND EMPLOYEES AND FORMER ISSUER OFFICERS AND EMPLOYEES. The Dissemination Agent
represents that it has not: (a) 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; (b)
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; (c) 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 (d) knowingly influenced, and hereby promises that
it 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.
- 8 - Dissemination Agency Agreement
DATED as of the day and year first above written.
SALT LAKE CITY, UTAH
By: ____________________________________
Mayor
Address: 451 South State Street
Salt Lake City, Utah 84111
COUNTERSIGN AND ATTEST:
By_________________________________
City Recorder
[SEAL]
APPROVED AS TO FORM:
By: ____________________________________
Senior City Attorney
U.S. BANK NATIONAL ASSOCIATION
By: ____________________________________
Vice President
Address: Attn: Laurel Bailey
170 South Main Street, Suite 200
Salt Lake City, Utah 84101
EXHIBIT-I Dissemination Agency Agreement
EXHIBIT I
[ATTACH FORM OF UNDERTAKING]
EXHIBIT-II Dissemination Agency Agreement
EXHIBIT II
[ATTACH FINAL OFFICIAL STATEMENT]
33 of 2021 Delegating General Obligation Bond
Final Audit Report 2021-09-22
Created:2021-09-22
By:Cindy Trishman (cindy.trishman@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAArvXBXEFhMhWl9PCbLZ-rt8W3K-0xiuT5
"33 of 2021 Delegating General Obligation Bond" History
Document created by Cindy Trishman (cindy.trishman@slcgov.com)
2021-09-22 - 0:55:19 AM GMT- IP address: 204.124.13.151
Document emailed to Boyd Ferguson (boyd.ferguson@slcgov.com) for signature
2021-09-22 - 0:56:23 AM GMT
Email viewed by Boyd Ferguson (boyd.ferguson@slcgov.com)
2021-09-22 - 0:56:55 AM GMT- IP address: 204.124.13.222
Document e-signed by Boyd Ferguson (boyd.ferguson@slcgov.com)
Signature Date: 2021-09-22 - 0:57:07 AM GMT - Time Source: server- IP address: 204.124.13.222
Agreement completed.
2021-09-22 - 0:57:07 AM GMT
33 of 2021 Delegating General Obligation Bond
- signed
Final Audit Report 2021-09-22
Created:2021-09-22
By:Cindy Trishman (cindy.trishman@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAefEO4s4szamnRUUdHYRlX10YcrGKD8wr
"33 of 2021 Delegating General Obligation Bond - signed" Histor
y
Document created by Cindy Trishman (cindy.trishman@slcgov.com)
2021-09-22 - 1:21:50 AM GMT- IP address: 204.124.13.151
Document emailed to Boyd Ferguson (boyd.ferguson@slcgov.com) for signature
2021-09-22 - 1:23:50 AM GMT
Email viewed by Boyd Ferguson (boyd.ferguson@slcgov.com)
2021-09-22 - 1:24:21 AM GMT- IP address: 204.124.13.222
Document e-signed by Boyd Ferguson (boyd.ferguson@slcgov.com)
Signature Date: 2021-09-22 - 1:24:34 AM GMT - Time Source: server- IP address: 204.124.13.222
Agreement completed.
2021-09-22 - 1:24:34 AM GMT
33 of 2021 Delegating General Obligation Bond
Final Audit Report 2021-09-22
Created:2021-09-22
By:Cindy Trishman (cindy.trishman@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAI4TVvNDZmFLQa2AIQJdfLSvLdTfpzT09
"33 of 2021 Delegating General Obligation Bond" History
Document created by Cindy Trishman (cindy.trishman@slcgov.com)
2021-09-22 - 1:36:16 AM GMT- IP address: 204.124.13.151
Document emailed to Rogers James (james.rogers@slcgov.com) for signature
2021-09-22 - 1:54:34 AM GMT
Email viewed by Rogers James (james.rogers@slcgov.com)
2021-09-22 - 1:55:58 AM GMT- IP address: 162.218.220.101
Document e-signed by Rogers James (james.rogers@slcgov.com)
Signature Date: 2021-09-22 - 1:56:16 AM GMT - Time Source: server- IP address: 162.218.220.101
Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature
2021-09-22 - 1:56:18 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2021-09-22 - 2:07:54 AM GMT- IP address: 136.36.225.245
Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com)
Signature Date: 2021-09-22 - 2:08:08 AM GMT - Time Source: server- IP address: 136.36.225.245
Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature
2021-09-22 - 2:08:09 AM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com)
Signature Date: 2021-09-22 - 2:47:22 AM GMT - Time Source: server- IP address: 204.124.13.151
Agreement completed.
2021-09-22 - 2:47:22 AM GMT