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TO: |
Board of Trustees |
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THROUGH: |
Jay Fox, Executive Director |
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FROM: |
Viola Miller, Chief Financial Officer |
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PRESENTER(S): |
Viola Miller, Chief Financial Officer, |
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Brian Baker, Municipal Advisor, Zion’s Public Finance, Inc. |
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Randall Larsen, Bond Counsel, Gilmore & Bell |
TITLE:
title
R2025-06-04 - Resolution Authorizing all other Actions Necessary to the Consummation of the Issuance and Sale by the Authority of its Sales Tax Revenue and Refunding Bonds in the Aggregate Principal Amount of Not to Exceed $973,000,000; and related matters
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AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2025-06-04 to authorize all other necessary actions to the consummation of the sale of the Authority’s Sales Tax Revenue and Refunding Bonds, for funding capital projects, a potential tender offer, and refunding.
BACKGROUND:
The Public Transit District Act, Sections 17B-2a-801, et seq., and the Utah Refunding Bond Act, Sections 11-27-1, et seq. of the Utah Code Annotated 1953, as amended , gives the Utah Transit Authority (UTA) Board of Trustees the authority to issue bonds to finance and refinance any improvements, facilities or property which UTA is authorized to acquire for use in our public transit system.
The Board of Trustees adopted resolution R2025-05-02 on May 28, 2025, approving the issuance of Sales Tax Revenue and Refunding Bonds, Series 2025 in the aggregate principal amount of not to exceed $973,000,000. Additional parameters were also set with an interest rate not to exceed five and one-half percent (5.5%), a maximum maturity not greater than twenty (20) years and a price to be sold not less than ninety-eight percent (98%).
Additional actions are necessary to the consummation of the transactions contemplated for the issuance and tender offer, and related matters.
DISCUSSION:
UTA’s staff along with Municipal Advisor, Zions Public Finance, and Bond Counsel, Gilmore & Bell, are requesting the following for initiating the transaction contemplated in the Resolution:
• Authorize tender offer and invitation of the qualifying outstanding bonds
• Authorize the use and distribution of the form of Preliminary Official Statement
• Authorize the execution and delivery of the Dealer Manager Agreement
ALTERNATIVES:
This proposal is subject to available capital markets, potential investor appetite and UTA’s bond investors’ willingness to tender bonds.
Should the Authority not pursue these funding opportunities, the planned capital projects to replace and grow UTA’s fleet and infrastructure improvements will be delayed.
FISCAL IMPACT:
Per the resolution R2025-05-02, adopted on May 28, 2025, the Board approved the issuance of its Sales Tax Revenue and Refunding Bonds, Series 2025. The resolution approved a total issuance amount to include $128 million in new money and $845 million in tendered and refunded bonds, not to exceed $973 million.
For tendered bonds, an aggregate net present value savings of at least $5 million and a target 3-5% range.
For refunded bonds, an aggregate net present value savings amount of at least $1 million and a target 1-3% range.
ATTACHMENTS:
R2025-06-04 (with exhibits)