Utah’s capital city reached a milestone when it opened a new open space on the west side last week.
Backman Community Open Space was partially paid for by the $24.7 million generated from the first bond tranche of an $85 million general obligation bond that Salt Lake City residents approved in 2022, as part of a plan to add or improve park spaces across the city.
While more projects from the tranche are still underway, Salt Lake City leaders are now looking to add to the pile of money they will have available for more park projects. They’re leaning toward a proposal to seek a little over $49.3 million in bond funding, which could fund several park projects scattered across the city.
“We are saying ‘yes’ on projects that immediately could improve our residents’ quality of life and improve security by doing so in some of these areas,” said Salt Lake City Mayor Erin Mendenhall during a meeting on the topic on Tuesday.
However, not everyone on the Salt Lake City Council agrees with the plan, as it could raise property taxes by $27 to $28 per year for the average home in the city after the bond issuance process begins sometime next year.
What the second tranche might pay for
A little more than a third of the first tranche has already been spent, and more spending from the initial $24.7 million is coming soon as more construction projects begin, said Tom Millar, planning and design division director for Salt Lake City’s public lands department. Most of the funding is slated to replace old park equipment across the city, such as the playground at Liberty Park.
The second tranche could range from $26.2 million to $49.3 million based on three options that the department outlined, funding the construction of several park projects across the city. Exactly how many will be determined by how much city leaders are willing to request in the bond markets.
The higher amount would cover the second phase of the new Glendale Regional Park, adding to what’s on track to open by the end of this year, as well as remediate and construct a new open space at its Fleet Block. It would also fund the construction of improvement projects for several other parks in the city:
- Cottonwood Park
- Fairmont Park
- Jefferson Park
- Jordan River Corridor
- Sunnyside Park
- Warm Springs/North Gateway parks
Another $4 million would go toward “public art contingency” from the tranche. The number of projects would be scaled back as the amount of money allocated drops, Millar explained. The lowest option would only fund Glendale Regional Park’s second phase and public art, among project options.
“In all three of those scenarios, 95% to 97% of all of the funding — no matter which one we choose — is going to be for construction,” he said.
Failing to approve a second set of issuances, he said, could open the door for negative consequences. It could slow down work from the first tranche, create fewer but more expensive projects and erode “public confidence” in the overall bond. Failing to address updates to Sunnyside Park could also cost the city $4.2 million in a donation from the University of Utah, which was included in a deal for the Utes’ new baseball stadium.
The Salt Lake City Council voted 6-1 in an informal straw poll to support the highest amount with certain recommendations, such as reports on how the department is “shovel-ready” for the projects and how to use any leftover funds from the first tranche. These seek to be more efficient with funds and limit the need for more money in future tranches.
The next steps
The vote took place after some on the City Council feared that the lower tranche options could expose the city to the negative impacts from not issuing more bonds. Paying less now could create delays that drive up future project costs, said Councilwoman Sarah Young.
“I think that’s my concern,” she said.
Others agreed, adding that they know residents are antsy to see results from the bond they voted for. However, given the rising fees and taxes happening in the city and county, there was debate over adding property taxes to pay off the bonds.
Councilwoman Victoria Petro cited this concern as her lone vote against the $49.3 million option. All three options would raise property taxes, but the total would range from $14 to $28 per year for the average city home.
That differs from the first tranche in 2023 because tax increases tied to that issuance arrived as other bonds were being paid off, limiting the amount of difference people saw in taxes, Mendenhall said. Yet, the total would not be as high as the anticipated $54 per year that residents were informed about in 2022, Millar adds.
Tuesday’s informal vote isn’t the last word on the topic. The City Council is slated to take up the issue further as part of a budget amendment that will likely be introduced in early 2026.
A final resolution is expected by February, before the bonds are issued in April or May of 2026.