|
TO: |
Local Advisory Council |
|
THROUGH: |
Jay Fox, Executive Director |
|
FROM: |
Viola Miller, Chief Financial Officer |
|
PRESENTER(S): |
Viola Miller, Chief Financial Officer |
|
|
Brian Reeves, Associate Chief Financial Officer |
|
|
Brian Baker, Senior Vice President, Zions Public Finance |
TITLE:
title
Consultation on Bond Issuance Strategy for Potential Refinancing Opportunity
end
AGENDA ITEM TYPE:
LAC - Consultation
RECOMMENDATION:
The Local Advisory Council is encouraged to provide feedback to the Authority’s Board of Trustees on the opportunity to issue bonds for the purpose of refinancing outstanding bonds.
BACKGROUND:
As of December 31, 2025, UTA has approximately $2 billion in outstanding senior and subordinate sales tax revenue bonds. These bonds play a crucial role in funding UTA’s transit services across a six-county region, supporting bus, light rail, commuter rail and other operations. Many of these services rely on sales tax revenue bonds to supplement capital funding.
The UTA staff have identified an opportunity to optimize its existing debt profile by refinancing certain outstanding bonds to reduce overall debt service costs.
The proposed financing strategy includes the potential to refinance Series 2016, Subordinated Sales Tax Revenue Refunding Bonds, at a lower interest rate, thereby reducing overall borrowing costs. This approach would allow the organization to capture meaningful savings over the life of the debt, improve cash flow, and strengthen financial flexibility. In addition to lowering funding costs, refinancing may also provide an opportunity to optimize debt structure and align repayment terms with long-term capital planning objectives.
As part of the bonding process, UTA obtained approval of the bond issuance from the State finance Review commission on February 2, 2026.
DISCUSSION:
UTA’s staff and Municipal Advisor, Zions Public Finance, will present information about the bond refinancing strategy.
ALTERNATIVES:
This proposal is subject to available capital markets and potential investor appetite.
Should the Authority not pursue this refinancing opportunity, the current debt service schedule will remain in place.
FISCAL IMPACT:
Refinancing the bonds, an aggregate net present value savings amount of at least $1 million and a target 3-5% range.
ATTACHMENTS:
None