The Wasatch County Council has approved the guidelines for a $45 million bond that will be used to help finance a new county administration building.
Planning for the project began in 2022. Approving the parameters does not mean the bond was issued, but rather indicates the amount will not exceed $45 million.
Of that, half will go toward the new administration building. Construction is expected to break ground this spring, and the building will be completed in late 2027. While up to $25 million of the bond will be used to finance half of the construction costs, the remaining costs will be paid from cash reserves.
The remaining bond funds will be used to finance the ongoing courthouse expansion project. The first phase of the project was unveiled in December and is scheduled to be completed in August. Wasatch County originally bonded for the full cost of the courthouse expansion project, but the state of Utah is expected to reimburse half of the cost as part of a joint effort.
Wasatch County Manager Dustin Grabau said the new county administration building is designed to meet the needs of a growing community and will consolidate county services.
The current administration building was finished nearly 60 years ago. Grabau and the County Council agree the building is outdated at best. It was originally designed to be a courthouse and later accommodated other county functions.
Project manager Richard Breitenbeker, who is overseeing construction, said the current administration building “has some life left in it,” but now is the time to meet the county’s increasing needs.
Randy Larsen, an attorney with Gilmore & Bell, said property taxes will not increase from the $45 million bond because it’s a lease revenue bond, meaning payments come out of the existing budget, and a vote is not required. That’s opposed to a general obligation bond, where there is an option to increase property taxes if voters approve it.
With refinancing and consolidation, Wasatch County officials say they expect a savings of $1 million or more. Refinancing would not extend the term of the agreement.
“At any time, even though we’re targeting a closing of March, you could reduce that bond size. You could choose not to issue bonds and have no concern or obligation. We’re just trying to inform the public well ahead of time so that if they have concerns and they have an ability to weigh in, and you might want to change your mind,” Larsen said.
He urged the council not to look at approval as a “must.”
But Tracy Taylor of the Wasatch Taxpayers Association said she has concerns.
“It’s not really showing how it affects the taxpayer. And I understand it’s not going to come out of property taxes, but there are still taxpayer funds that are being used for this,” Taylor said. “I just would like to see a better chart for the general public to see.”
The total cost of the administration building is just over $47 million. Both sales and use tax (42.3%) and tourism tax (8.5%) are used to help fund the build. The remaining sum is made up of capital improvement projects savings (31.8%) and development fees (17.3%). Sales and use taxes are also used to help fund the proposed $45 million bond.
Wasatch County Councilor Luke Searle also said there should be more communication with the public about the bond.
“I think it’s pretty easy for the public to see this building was finished in 1969, right?” Searle said. “I think it’s just a matter of us showing that we were fiscally prudent.”
An open house regarding the proposed county administration building is scheduled for 5 p.m. on Feb. 17 at the Wasatch County Library. The County Council will hear community input at 6 p.m. on Feb. 18 before voting on whether to actually issue the bond.