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By Myrna Trauntvein Prior to the public hearing on the sales tax bond held by the city council, Seth Atkinson, city administrator, presented a staff report to all in attendance. He said that a sales tax bond had been proposed to fund the improvements at the golf course for the 9-hole expansion that would make the course into a standard 18-hole course. “Sales tax bonds have been issued for several city projects including the splash pad and The Hive recreation facility,” said Atkinson. “These bonds are issued against the existing sales tax collections that are already being received by the city.” Sales tax bonds do not require a vote. Recently, some incorrect information was shared on social media about the city’s sales tax bond funding, he said. “In addition, there have been many questions about this project from residents so these items are addressed in the bullet points in the document being shared,” he said. “A sales tax bond will not raise taxes for our residents,” said Atkinson. “The city, like all local governments, are allowed to levy a 1 percent local option sales tax on the sale of goods in the community. Based on these collections, cities are allowed to issue sales tax revenue bonds.” Even though this bond would be a sales tax bond, it is anticipated that golf revenues would be the source to pay back the debt service with sales taxes acting as a backstop. The city will receive a better interest rate in the bond market through a sales tax bond than issuing a bond directly on golf revenues. The Canyon Hills golf course has experienced unprecedented success in the last eight years. A graph had been prepared to share at the meeting. “The graph shows golf revenues for the last 20 years.,” said Atkinson. “The amount shown for FY (Fiscal Year) 26 is a year-to-date amount from July 1, 2025 through February 13, 2026,” he said. Some residents have also inquired about how much the city is subsidizing the golf course each year. For the last several years, the golf course has collected enough revenue to be self-sufficient. The table prepared for the report shows the net figures for operating revenues over operating expenses from FY 2019 to FY 2026. “In the fiscal year 2020, we began to require the golf course to pay a utility bill along with all other city departments.,” said Atkinson. The city has contributed funds for capital improvements to the course each year. Some of these improvements have been installing the pond and associated landscaping, fence replacement, mowing equipment, and the maintenance building. This contribution has been approximately $200,000 each year. “Residents can click on any work session agenda to find a link to the city’s Financial Reports,” he said. “These show real time information on golf course revenues and expenses.” Many residents have also inquired about using the bond funds to construct an indoor pool. In the past, the council has had staff do extensive research on the costs of constructing and operating an indoor pool. The city also operates an outdoor pool for approximately three months of the year. “Based on our own experience of operating an outdoor pool and from the information received from other cities, pools are extremely expensive to construct and to operate,” said Atkinson. Despite revenues received for their pools in other communities, pools are subsidized between $350,000 to $500,000 per year, not counting funds for capital improvements or for debt service costs to fund construction. “The city’s pool is subsidized by $100,000 per year for the three months it is open,” said Atkinson. “Based on these costs, it is very infeasible for the city to invest in a pool at this time.” In addition, he said, the debt service for the sales tax bonds to be issued will be paid back with golf revenues. It would not make financial sense to use golf revenues to pay for an indoor pool. “Some have also been concerned over the $7.5 million bond pricing,” said Atkinson. “This is simply an upper limit based on the parameters resolution. The golf course project is estimated to cost $4.9 million based on the bids received for the project and the costs for impact fees, engineering costs, and other improvements to the clubhouse.” Atkinson said that this bond is also to provide revenues to purchase Orgill Ball Fields from the Church of Jesus Christ of Latter-day Saints. “This is a field that has been used for decades, under agreement with the church, for recreational purposes,” said Atkinson. “The property has unexpectedly been offered for purchase by the church and the sales tax bond would also be used for that purchase.” “We are negotiating with the church,” said Justin Seely, mayor. “We either buy it or someone else does and it will then turn into homes. We will keep it as baseball fields.” Atkinson said that the city has also applied for a grant from the Land and Water Conservation Fund for the golf course project. “If any funds are awarded to the city through this grant, the bond amount would be reduced,” he said. “In addition, some local donations may be made toward the project. The final bond pricing will be made after donations and grant amounts are determined.” The city has owned property for many years for the purpose of expanding the golf course to 18 holes, he said. “In the past, anemic revenues were a reason why that project could not be pursued,” said Atkinson. “Now that the golf course is performing at a very high level and has the appropriate staffing to continue this trend, the council has determined that this project is ready for implementation.”
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