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