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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 Reeves, Associate Chief Financial Officer |
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Brian Baker, Zions Public Finance |
TITLE:
title
R2026-03-02 - Resolution Authorizing the Issuance and Sale by the Authority of its Sales Tax Revenue and Refunding Bonds in the Aggregate Principal Amount of Not to Exceed $123,000,000 in One or More Series
end
AGENDA ITEM TYPE:
Resolution
RECOMMENDATION:
Approve Resolution R2026-03-02 to authorize the issuance and sale of the Authority’s Sales Tax Revenue Refunding Bonds as presented.
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 UTA staff have identified an opportunity to optimize its existing debt profile by refinancing certain outstanding bonds, Series 2016, Subordinated Sales Tax Revenue Refunding Bonds, at a lower interest rate, thereby reducing overall borrowing costs. 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.
DISCUSSION:
UTA’s staff along with Municipal Advisor, Zions Public Finance, and Bond Underwriter, BofA Securities, Inc., have explored a financing strategy to refinance Series 2016, Subordinated Sales Tax Revenue Refunding Bonds. The proposed bonding opportunity was presented to the Board of Trustees on January 28, 2026, for discussion. Upon direction from the Board, the Authority submitted a potential refunding resolution to the State Finance Review Commission (SFRC) on February 2, 2026, which received approval. Following this approval, consultation with the Local Advisory Council was required by Section 17B-2a-808.1(2)(c), Utah Code. The required consultation on the bonding proposal took place on February 18, 2026. As a result, this resolution authorizing bonding parameters is being brought before UTA’s Board of Trustees for their consideration and approval on March 11, 2026.
ALTERNATIVES:
Should the Authority not pursue this refinancing opportunity, the current debt service schedule will remain in place.
FISCAL IMPACT:
The resolution R2026-03-02 outlines the following terms of the refunding: a total issuance amount not to exceed of $123 million, a maximum interest rate of 5.0%, a maximum maturity not to exceed seven (7) years, and a price sold not less than ninety-nine percent (99%).
ATTACHMENTS:
• R2026-03-02 including exhibits