Transmittal - 8/31/2021ERIN MENDENHALL
Mayor
CITY COUNCIL TRANSMITTAL
MARY BETH THOMPSON
Chief Financial Officer
Date Received:
Rachel Otto, Chief of Staff Date sent to Council:
TO: Salt Lake City Council DATE: August 30, 2021
Amy Fowler, Chair
FROM: Mary Beth Thompson, Chief Financial Officer
SUBJECT: Amendatory Resolution Allowing for the Pledge of Funding Our Future Sales Tax (the
Supplemental Sales and Use Tax) as Additional Security for the City’s Sales Tax and Excise Tax
Revenue Bonds
STAFF CONTACT: Marina Scott, City Treasurer 801-535-6565
DOCUMENT TYPE: Resolution
RECOMMENDATION: That the City Council adopt an Amendatory Resolution on September 7,
2022 authorizing the execution and delivery of the Supplemental Trust Indenture for the
purposes of pledging Funding Our Future sales tax (the Supplemental Sales and Use Tax)
authorized by Utah Code section 59-12-402.1 and City Ordinance No 18 of 2018, as additional
security for the City’s Sales Tax and Excise Tax Revenue Bonds.
BUDGET IMPACT: None at this time.
BACKGROUND/DISCUSSION: Because of the additional pledge of revenues that would be available
for debt service, additional future debt could be issued within certain legal limits, necessitating
the need to budget for increasing annual debt service amounts. The proposed amendment would
increase and ensure the City’s adequate debt coverage.
PUBLIC PROCESS: N/A
EXHIBITS:
1. Agenda and Motion Language
2. Additional Pledge Resolution
DEPARTMENT OF FINANCE
451 SOUTH STATE STREET, ROOM 245
SALT LAKE CITY, UTAH 84114
TEL 801-535-6403
rachel otto (Aug 30, 2021 19:41 MDT)
08/31/2021
08/31/2021
Salt Lake City Council
AGENDA ITEM FOR SEPTEMBER 7, 2021
UNFINISHED BUSINESS:
Suggested Agenda Language relating to the City’s pledge of supplemental sales and use tax
revenues to the payment of the City’s sales and excise tax revenue bonds:
Resolution: Authorizing the pledge of supplemental sales and use tax revenues to the payment of
the City’s sales and excise tax revenue bonds
Consider adopting a resolution authorizing the pledge of supplemental sales and use tax revenues
to the payment of the City’s sales and excise tax revenue bonds and providing for related matters.
Staff Recommendation: Adopt the resolution.
Suggested Motion Language is as follows:
I move that the City Council adopt the resolution authorizing the pledge of supplemental sales and
use tax revenues to the payment of the City’s sales and excise tax revenue bonds and providing for
related matters.
Additional Pledge Agenda Language
Draft
08/30/21
RESOLUTION NO. OF 2021
A Resolution authorizing the pledge certain supplemental sales and
use tax revenues to the payment of the City’s sales and excise tax
revenue bonds; authorizing the taking of all other actions necessary to
evidence such pledge; and related matters.
*** *** ***
WHEREAS, Salt Lake City, Utah (the “City”), is a duly organized and existing city of the
first class, operating under the general laws of the State of Utah (the “State”);
WHEREAS, the City has previously issued and currently expects to issue additional sales
and excise tax revenue bonds (the “Sales Tax Bonds”) pursuant to (a) authority contained in the
the Local Government Bonding Act, Chapter 14 of Title 11 (the “Government Bonding Act”),
Utah Code Annotated 1953, as amended (the “Utah Code”) and the Utah Refunding Bond Act,
Chapter 27 of Title 11 (the “Refunding Bond Act”), Utah Code, and other applicable provisions of
law (collectively with the Government Bonding Act and the Refunding Bond Act, the “Act”) and
(b) the Master Trust Indenture, dated as of September 1, 2004, as amended and supplemented to
the date hereof (the “Master Indenture”);
WHEREAS, pursuant to the Master Indenture the payment of principal and interest on the
Sales Tax Bonds is currently secured by a pledge of (a) 100% of the Local Sales and Use Tax
revenues received by the City pursuant to Title 59, Chapter 12, Part 2, Utah Code (the “Local
Sales and Use Tax”); (b) 100% of the Municipal Energy Sales and Use Tax revenues received by
the City pursuant to Title 10, Chapter 1, Part 3, Utah Code, and Salt Lake City Code Chapter 3.06;
(c) 100% of the franchise fees for energy and utilities received by the City pursuant to Title 10,
Chapter 1, Part 3, Utah Code, and Salt Lake City Code Chapter 3.06; (d) 100% of the Municipal
Telecommunications License Tax revenues received by the City pursuant to Title 10, Chapter 1,
Part 4, Utah Code, and Salt Lake City Code Chapter 3.10; (e) 100% of the franchise fees associated
with public utilities received by the City pursuant to Title 10, Chapter 1, Part 3, Utah Code, and
Salt Lake City Code Section 17.16.070; and (f) 100% of franchise fees associated with cable
television received by the City pursuant to Salt Lake City Code Chapter 5.20 (collectively, the
“Revenues”);
WHEREAS, pursuant to Section 59-12-402.1, the City is authorized to levy a tax at the rate
of .5% on most, if not all, of the same transactions that are subject to the Local Sales and Use Tax
(the “Supplemental Sales and Use Tax”);
WHEREAS, pursuant to Salt Lake City Ordinance No. 18 of 2018, the City has established,
approved and levied the Supplemental Sales and Use Tax; and
WHEREAS, the City desires now to amend the Revenues pledged to secure the payment of
its Sales Tax Bonds to include a pledge of 100% of the Supplemental Sales and Use Tax revenues
received by the City;
NOW, THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah, as follows:
Section 1. Pledge of Supplemental Sales and Use Tax. The City is hereby authorized
and directed to pledge 100% of the Supplemental Sales and Use Tax revenues received by the City
to the payment of all currently outstanding and all future Sales Tax Bonds issued by the City
pursuant to the Master Indenture.
Section 2. Approval and Execution of a Supplemental Indenture. In order to amend the
Revenues pledged in the Master Indenture to include the pledge of 100% of the Supplemental
Sales and Use Tax revenues received by the City, the Mayor is hereby authorized, empowered and
directed to execute and deliver a supplemental indenture to accomplish such additional pledge (the
“Supplemental Indenture”) on behalf of the City, and the City Recorder or any Deputy City
Recorder is hereby authorized, empowered and directed to affix to such Supplemental Indenture
the seal of the City and to attest such seal and countersign such Supplemental Indenture. The
Supplemental Indenture may be executed and delivered in connection with the issuance of a series
of Sales Tax Bonds or by itself, as determined by the Mayor to be in the best interest of the City.
Section 3. Other Actions. The officers and employees of the City shall take all action
necessary or reasonably required to carry out, give effect to, and consummate the transactions
contemplated hereby and shall take all action necessary in conformity with the Act and the Master
Indenture to carry out the pledge of the Supplemental Sales and Use Tax revenues, including,
without limitation, the execution and delivery of any documents required to be delivered in
connection with such pledge. If (a) the Mayor or (b) the City Recorder shall be unavailable or
unable to execute or attest and countersign, respectively, the Supplemental Indenture or the other
documents that they are hereby authorized to execute, attest and countersign, the same may be
executed, or attested and countersigned, respectively, (i) by the Chief of Staff or (ii) by any Deputy
City Recorder. Without limiting the generality of the foregoing, the officers and employees of the
City are authorized and directed to take such action as shall be necessary and appropriate to pledge
the Supplemental Sales and Use Tax revenues.
Section 4. Prior Acts Ratified, Approved and Confirmed. All acts of the officers and
employees of the City in connection with the pledge of the Supplemental Sales and Use Tax
revenues are hereby ratified, approved and confirmed.
Section 5. Resolution Irrepealable. Except as otherwise provided in the Master
Indenture, following the execution and delivery of the Supplemental Indenture this resolution shall
be and remain irrepealable until all the Sales Tax Bonds and the interest thereon shall have been
fully paid, cancelled, and discharged.
Section 6. Severability. If any section, paragraph, clause, or provision of this resolution
shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of
such section, paragraph, clause, or provision shall not affect any of the remaining provisions of
this resolution.
Section 7. Effective Date. This resolution shall be effective immediately upon its
approval and adoption.
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ADOPTED AND APPROVED by the City Council of Salt Lake City, Utah, this 7th day of
September 2021.
SALT LAKE CITY, UTAH
Chair
Salt Lake City Council
ATTEST:
City Recorder
[SEAL]
APPROVED:
By
Mayor
APPROVED AS TO FORM:
By Boyd Ferguson
Senior City Attorney
- 3 - Additional Pledge Resolution
Signature:
Email:Garrett.Danielson@slcgov.com