City Council Announcements
December 4, 2003
A. Decisions, Feedback & Information needed by staff
1. UTOPIA briefing - Representatives from UTOPIA haven’t been successful is getting a required pledge percentage from the bond insurance firm. UTOPIA’s financial advisors are proposing that the simplest way to get the insurance firm to commit is to propose a fixed dollar amount of backing. That way, the financial team can approach the insurer and rating agencies knowing which cities have opted to backstop the bonds and how much of backstop is actually on the table. UTOPIA’s financial advisors are proposing a 45% backing of the total bond package. The thought was that anything over 50% would cause some cities to shy away and anything less than 40% would be inadequate to obtain a reasonable financing package. Under the 45% scenario, the total pledge would be $22,214,000 per year if all 18 cities participate. Salt Lake City’s construction costs are 21.25% of the proposed bond, which equates to an annual pledge of $4,719,460. Rocky Fluhart suggests that a Council briefing be scheduled to discuss this approach. Is the Council interested in adding UTOPIA to the December 9th work session agenda or would the Council prefer to wait until January when perhaps more information is available? Councilmember Christensen suggested this item could be referred to January, 2004 meeting after Tuesday, December 9th, 2002 follow-up briefing. Council Members asked Mr. Fluhart to bring back some clarification next Tuesday about when the money would be due.