Ttwo proposed bonds within the 2024 election are requiring voter input (one initiated by Salt Lake County, and one initiated by the city of Cottonwood Heights). Both bond-related votes will have a direct impact on Cottonwood Heights residents’ property taxes. This story overviews the City of Cottonwood Heights, Utah – Special Bond Election. 

For the city’s General Obligation (GO) Community Redevelopment Bond, voters have the option on their 2024 ballot to vote either in favor (yes) for the issuance of the bonds or against (no) against the issuance of bonds. As mentioned in the companion article (within this City Journals edition) by Megan McKellar, if residents decide to vote in favor of the bond, property taxes will increase by a cost of $134.89 per year per property owner (around $11 per month). 

This specific proposed bond involves a particular area within the city that is integral for maintaining the “character” of Cottonwood Heights (the project description even includes the language of “identity-building” elements…that will convey the Cottonwood Heights way of life). The $30-million GO Bond would help to fund the Heights (town-center) project.  

This history of the Heights (town-center) project can be traced back to 2022 (as detailed in the companion article). For the purposes of this story, related to the GO bond specifically, let’s take it back just a few months to city council deliberations about the funding options for this project, which ultimately led to the decision to put the GO bond on the ballot.    

Throughout the summer months, city staff and councilmembers were in conversations weighing the pros and cons of various funding options for this town-center project. June and July public meetings were filled with budgeting terminology as city leaders considered the options of continuing a debt-service, requesting a GO bond, land-leasing the area, or establishing a TIF (Tax Increment Financing) area to where taxes could help offset costs from specific developer(s). 

At the time, Councilmember Suzanne Hyland (for District 2) liked the idea of outsourcing a land-lease to a property management company. However, she also liked the idea of letting the voters have a say in the funding source.

“I know residents in District 3 are excited but my district doesn’t seem to be,” said Hyland. 

Councilmember Matthew Holton echoed “this hasn’t been a topic of conversation for District 1. Let’s allow the voters to speak.” 

During one of the specialized city council meetings over the summer, Finance Director Scott Jurges confirmed GO Bonds are generally the most inexpensive way to finance a city project. 

As conversations turned more toward favoring placing the GO bond on the ballot as the primary funding source in early August, Councilmember Ellen Birrell voiced her concern over raising property taxes, especially while thinking about her constituents on fixed incomes. City Manager Jared Ferber reassured Birrell that Salt Lake County offers tax relief programs for residents who might find hardship in a voter-established tax increase.  

By August, the preferred option of the GO bond solidified as formal conversations during public meetings became more frequent. By Aug. 6, the city council was in loose agreement that the GO bond should go to vote. The conversation remaining was deciding between a $25-million bond or a $30-million bond. 

In preparation for these council conversations, Cottonwood Heights city staff members worked closely with Zions Bank accountants to create revenue projections, project cost estimates, and a breakdown of taxable/non-taxable costs. Zions Bank Representative Mark Andeson continued this work by attending the city council meetings and discussing some concerns with the councilmembers. 

“Interest rates reductions are projected for September and again, possibly, in November and December,” said Anderson. 

Anderson and Gerber further detailed the differences between the two potential bonds. The tax-exempt rates were (at publication) 4% on a 20-year basis and 4.5% on a 30-year basis. In addition, the relationship between bond rates and treasury rates were in the mid-60% with Municipal Market Data (“MMD”) within the 65% of comparable treasury rates (again, as of publication). 

“The bond would be used for open space areas, roadways, roadside areas throughout the project, as well as the land under all the buildings,” said Gerber. These tax-exempt areas are already within the primary control of the city. 

Estimates of the entire Heights (town-center) project show a cost over $25 million (representing over $100 million in potential investment in the city). To over-simplify the conversation here, the city council had the choice between opting for a $25 million bond and needing to find additional funding later in the process or opting for a $30 million bond with the potential of not needing the full amount. 

After weighing the options for the bond, the city council ultimately decided on the $30 million GO Bond option in late August, ensuring that bond issuance can be split into multiple bonds if/when necessary. 

Resolution 2024-55: Providing for a Special Bond Election on Nov. 5… a Proposition Regarding the Issuance of Not to Exceed $30 Million General Obligation Bonds for the Purpose of Acquiring and Improving Land…Providing Public Open Space and Amenities, Pedestrian Improvements, and Other Needed Infrastructure to Facilitate Economic Development, Community Events and Activities in and around Cottonwood Heights’ Proposed Town Center…and Related Matters was unanimously passed on Aug. 20 after being motioned by Councilmember Shawn Newell and seconded by Birrell.  

“It’s time for the residents’ voices to be heard,” commented Holton before voting in favor.  

There will be multiple Town Hall events held leading up to the vote. Mayor Mike Weichers will hold his Town Hall on Tuesday, Oct. 8 from 6 p.m. until 8 p.m. at City Hall. Birrell will hold a Town Hall on Thursday, Oct. 10 from 6:30 p.m. until 8 p.m. Town Halls will be held at Cottonwood Heights City Hall (2277 E. Bengal Blvd.). 

City Attorney Shane Topham did remind councilmembers they cannot promote their opinions or encouragement one way or another, under Utah Code Section 20A-11-1203 (the Election Code puts Political Activities of Public Entities (Part 12) under Campaign and Financial Reporting Requirements (Chapter 11).

“In private life, you can promote, but you can’t use your title,” emphasized Gerber. 

In other words, residents should not expect city councilmembers to share their opinions on whether they should or should not vote for the bond. 

Still want more information? 

Check out what Mayor Mike Weichers had to say about the Heights town center project and the related bond in the Cottonwood Heights City Newsletter: August 2024 Edition.  

Check out what City Manager Jared Gerber had to say about the Heights town center project and the related bond in the Cottonwood Heights City Newsletter: September 2024 Edition.  

(Cottonwood Heights City Newsletters can be found by visiting the city’s website (www.ch.utah.gov) and clicking through the “Community” tab and navigating to the “Connect” section.)

To learn more about Tax Relief through Salt Lake County visit their website at: www.saltlakecounty.gov/treasurer/tax-relief. 

To learn more about The Heights: a town center, visit the project website at: www.chtowncenter.comλ