Salt Lake County, Utah

Transcription

1 NEW ISSUE Ratings: Fitch AAA; Moody s Aaa; S&P AAA See MISCELLANEOUS Bond Ratings herein. Subject to compliance by Salt Lake County, Utah with certain covenants, in the opinion of Chapman and Cutler LLP, Bond Counsel, under present law, interest on (a) the 2009A Bonds (as defined herein) (i) is excludable from gross income of the owners thereof for federal income tax purposes, (ii) is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, and (iii) is not taken into account in computing adjusted current earnings, which is used as an adjustment in determining the federal alternative minimum tax for certain corporations and (b) the 2009B Bonds (as defined herein) is includible in gross income of the owners thereof for federal income tax purposes. The 2009A Bonds are not qualified tax exempt obligations within the meaning of Section 265 (b)(3) of the Internal Revenue Code of In the opinion of Bond Counsel, under the existing laws of the State of Utah, as presently enacted and construed, interest on the 2009A Bonds and the 2009B Bonds is exempt from taxes imposed by the Utah Individual Income Tax Act. The 2009A Bonds are not qualified tax exempt obligations within the meaning of Section 265(b)(3) of the Internal Revenue Code of See LEGAL MATTERS herein for a more complete discussion. Salt Lake County, Utah $11,375,000 General Obligation Bonds, Series 2009A $18,625,000 General Obligation Bonds, Series 2009B (Federally Taxable Direct Pay Build America Bonds) The $11,375,000 General Obligation Bonds, Series 2009A (the 2009A Bonds ) and $18,625,000 General Obligation Bonds, Series 2009B (Federally Taxable Direct Pay Build America Bonds) (the 2009B Bonds and, collectively with the 2009A Bonds, the 2009 Bonds ) are issued by Salt Lake County, Utah (the County ), as fully registered bonds and, when initially issued, will be in book entry only form, registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ( DTC ). DTC will act as securities depository for the 2009 Bonds. Principal of and interest on the 2009 Bonds (interest payable June 15 and December 15 of each year, commencing June 15, 2010) are payable by the Salt Lake County Treasurer, Salt Lake City, Utah, as Paying Agent, to the registered owners thereof, initially DTC. See THE 2009 BONDS Book Entry System herein. The 2009A Bonds are not subject to redemption prior to maturity. The 2009B Bonds are subject to optional and extraordinary optional redemption prior to maturity. See THE 2009 BONDS Redemption Provisions herein. The 2009 Bonds will be general obligations of the County payable from the proceeds of ad valorem taxes to be levied without limitation as to rate or amount on all of the taxable property in the County, fully sufficient to pay the 2009 Bonds as to both principal and interest. Dated: Date of Delivery 1 Due: December 15, as shown on inside front cover See the inside front cover for the maturity schedule of the 2009 Bonds. This cover page contains certain information for quick reference only. It is not a summary of this issue. Investors must read the entire OFFICIAL STATEMENT to obtain information essential to the making of an informed investment decision. This OFFICIAL STATEMENT is dated September 22, 2009 and the information contained herein speaks only as of that date. Robert W. Baird & Co. Wells Fargo Brokerage Services, LLC Wells Fargo Securities 1 The anticipated date of delivery is Thursday, October 8, 2009.

2 $11,375,000 General Obligation Bonds, Series 2009A Dated: Date of Delivery 1 Due: December 15, as shown below Due CUSIP Principal Interest Due CUSIP Principal Interest Dec Amount Rate Yield Dec Amount Rate Yield LE 3 $1,020, % 0.60% LK 9 $1,300, % 2.00% LF 0 1,200, LL 7 1,335, LG 8 1,225, LM 5 1,365, LH 6 1,250, LN 3 1,405, LJ 2 1,275, $18,625,000 General Obligation Bonds, Series 2009B (Federally Taxable Direct Pay Build America Bonds) Dated: Date of Delivery 1 Due: December 15, as shown below Due CUSIP Principal Interest Due CUSIP Principal Interest Dec Amount Rate Yield Dec Amount Rate Yield LP 8 $1,450, % 4.38% LV 5 $1,735, % 5.03% LQ 6 1,485, LW 3 1,790, LR 4 1,535, LX 1 1,850, LS 2 1,580, LY 9 1,915, LT 0 1,625, LZ 6 1,980, LU 7 1,680, The anticipated date of delivery is Thursday, October 8, 2009.

3 Table Of Contents Page INTRODUCTION... 1 Salt Lake County, Utah... 1 The 2009 Bonds... 1 Security... 1 Authority And Purpose... 2 Redemption Provisions... 2 Registration, Denominations, Manner Of Payment... 3 Tax Matters... 3 Professional Services... 3 Conditions Of Delivery, Anticipated Date, Manner, And Place Of Delivery... 4 Continuing Disclosure Undertaking... 4 Basic Documentation... 5 Contact Persons... 5 THE 2009 BONDS... 6 General... 6 Sources And Uses Of Funds... 6 Security And Sources Of Payment... 7 Redemption Provisions... 7 Registration And Transfer... 8 Book Entry System... 9 Debt Service On The 2009A Bonds Debt Service On The 2009B Bonds SALT LAKE COUNTY, UTAH General Form Of Government Employee Workforce And Retirement System; Post Employment Benefits...13 Risk Management Investment Of Funds...13 Population Employment, Income, Construction And Sales Taxes Within Salt Lake County Largest Employers Rate Of Unemployment Annual Average DEBT STRUCTURE OF SALT LAKE COUNTY, UTAH Outstanding General Obligation Bonded Indebtedness Outstanding Sales Tax Revenue Bonded Indebtedness Outstanding Assessment District Bonded Indebtedness Debt Service Schedule Of Outstanding General Obligation Bonds By Fiscal Year Debt Service Schedule Of Outstanding Sales Tax Revenue Bonds By Fiscal Year Debt Service Schedule of Outstanding Assessment District Bonds By Fiscal Year Other Financial Considerations; Historical Tax And Revenue Anticipation Note Borrowing Page Other Debt The Municipal Building Authority Of Salt Lake County, Utah Debt Service Schedule Of Outstanding Municipal Building Authority Of Salt Lake County, Utah Lease Revenue Bonds By Fiscal Year Overlapping And Underlying General Obligation Debt Debt Ratios General Obligation Legal Debt Limit And Additional Debt Incurring Capacity No Defaulted Obligations FINANCIAL INFORMATION REGARDING SALT LAKE COUNTY, UTAH Fund Structure; Accounting Basis Budgets And Budgetary Accounting Financial Controls Financial Management County s Discussion And Analysis Of Financial Condition And Results Of Operations Sources Of General Fund Revenues (Excludes Other Governmental Funds) Financial Summaries Tax Levy And Collection Public Hearing On Certain Tax Increases Property Tax Matters Historical Tax Rates Comparative Tax Rates Comparative Total Property Tax Rates Within The County Taxable, Fair Market And Market Value Of Property Historical Summaries Of Taxable Value Of Property Tax Collection Record Some Of The Largest Taxpayers LEGAL MATTERS Absence Of Litigation Federal Income Tax Matters Utah Income Taxation General MISCELLANEOUS Bond Ratings Financial Advisor Underwriters Independent Auditors Additional Information APPENDIX A BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION FOR FISCAL YEAR A 1 APPENDIX B PROPOSED FORM OF OPINION OF BOND COUNSEL... B 1 APPENDIX C PROPOSED FORM OF CONTINUING DISCLOSURE UNDERTAKING... C 1 APPENDIX D BOOK ENTRY SYSTEM... D 1 iii

4 This OFFICIAL STATEMENT does not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of, the $11,375,000 General Obligation Bonds, Series 2009A (the 2009A Bonds ) and $18,625,000 General Obligation Bonds, Series 2009B (Federally Taxable Direct Pay Build America Bonds) (the 2009B Bonds and with the 2009A Bonds, collectively the 2009 Bonds ), by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. No dealer, broker, salesman or other person has been authorized to give any information or to make any representations other than those contained herein, and if given or made, such other informational representations must not be relied upon as having been authorized by either Salt Lake County, Utah (the County ); Zions Bank Public Finance, Salt Lake City, Utah (as Financial Advisor); the Salt Lake County Treasurer (as Paying Agent); Robert W. Baird & Co., Incorporated, Milwaukee, Wisconsin; Wells Fargo Brokerage Services, LLC, Minneapolis, Minnesota; and Wells Fargo Securities, New York, New York (collectively, the Underwriters ); or any other entity. All other information contained herein has been obtained from the County, The Depository Trust Company, New York, New York, and from other sources which are believed to be reliable. The information and expressions of opinion herein are subject to change without notice and neither the delivery of this OFFICIAL STATEMENT nor the issuance, sale, delivery or exchange of the 2009 Bonds, shall under any circumstance create any implication that there has been no change in the affairs of the County, since the date hereof. The 2009 Bonds have not been registered under the Securities Act of 1933, as amended, or any state securities laws in reliance upon exemptions contained in such act and laws. Neither the Securities and Exchange Commission nor any state securities commission has passed upon the accuracy or adequacy of this OFFICIAL STATEMENT. Any representation to the contrary is unlawful. The yields at which the 2009 Bonds are offered to the public may vary from the initial reoffering yields on the inside cover page of this OFFICIAL STATEMENT. In addition, the Underwriters may allow concessions or discounts from the initial offering prices of the 2009 Bonds to dealers and others. In connection with the offering of the 2009 Bonds, the Underwriters may engage in transactions that stabilize, maintain, or otherwise affect the price of the 2009 Bonds. Such transactions may include overallotments in connection with the purchase of 2009 Bonds, the purchase of 2009 Bonds to stabilize their market price and the purchase of 2009 Bonds to cover the Underwriters short positions. Such transactions, if commenced, may be discontinued at any time. The CUSIP (the Committee on Uniform Securities Identification Procedures) identification numbers are provided on the inside cover page of this OFFICIAL STATEMENT and are being provided solely for the convenience of bondholders only, and the County does not make any representation with respect to such numbers or undertake any responsibility for their accuracy. The CUSIP numbers are subject to being changed after the issuance of the 2009 Bonds as a result of various subsequent actions including, but not limited to, a refunding in whole or in part of the 2009 Bonds. The information available at Web sites referenced in this OFFICIAL STATEMENT has not been reviewed for accuracy and completeness. Such information has not been provided in connection with the offering of the 2009 Bonds and is not a part of this OFFICIAL STATEMENT. This OFFICIAL STATEMENT has been designed to conform, where applicable, to the guidelines presented in Disclosure Guidelines for State and Local Government Securities, published by the Government Finance Officers Association in 1991, as revised. iv

5 OFFICIAL STATEMENT RELATED TO Salt Lake County, Utah $11,375,000 General Obligation Bonds, Series 2009A $18,625,000 General Obligation Bonds, Series 2009B (Federally Taxable Direct Pay Build America Bonds) INTRODUCTION This introduction is only a brief description of the 2009 Bonds, as hereinafter defined, the security and source of payment for the 2009 Bonds and certain information regarding Salt Lake County, Utah (the County ). The information contained herein is expressly qualified by reference to the entire OFFICIAL STATEMENT. Investors are urged to make a full review of the entire OFFICIAL STATEMENT. See the following appendices that are attached hereto and incorporated herein by reference: APPENDIX A BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY IN- FORMATION FOR FISCAL YEAR 2008; APPENDIX B PROPOSED FORM OF OPINION OF BOND COUNSEL; APPENDIX C PROPOSED FORM OF CONTINUING DISCLOSURE UN- DERTAKING; and APPENDIX D BOOK ENTRY SYSTEM. When used herein the terms Fiscal Year[s] or Fiscal Year[s] End[ed][ing] December 31, 20YY shall refer to the year beginning on January 1 and ending on December 31 of the year indicated. Capitalized terms used but not otherwise defined herein have the same meaning as given to them in the Resolutions, as hereinafter defined. Salt Lake County, Utah The County, incorporated in 1896, covers an area of approximately 737 square miles and is located in the north central portion of the State of Utah (the State ). The County is bordered on the west by the Great Salt Lake and the Oquirrh Mountains and on the east by the Wasatch Mountains. The County had approximately 1,022,651 residents according to the 2008 Bureau of the Census, ranking the County as the most populated county in the State (out of 29 counties). Based on 2008 population figures, the County has approximately 37% of the total population of the State. The 2009 Bonds This OFFICIAL STATEMENT, including the cover page, introduction and appendices, provides information in connection with the issuance and sale by the County of its $11,375,000 General Obligation Bonds, Series 2009A (the 2009A Bonds ) and $18,625,000 General Obligation Bonds, Series 2009B (Federally Taxable Direct Pay Build America Bonds (the 2009B Bonds and with the 2009A Bonds, collectively the 2009 Bonds or 2009 Bond ), initially issued in book entry form only. Security The 2009 Bonds will be general obligations of the County, payable from the proceeds of ad valorem taxes to be levied, without limitation as to rate or amount, on all of the taxable property in the County, 1

6 fully sufficient to pay the 2009 Bonds as to both principal and interest. See THE 2009 BONDS Security And Sources Of Payment and FINANCIAL INFORMATION REGARDING SALT LAKE COUNTY, UTAH Tax Levy And Collection below. Authority And Purpose The 2009 Bonds are being issued pursuant to: (i) the Local Government Bonding Act, Title 11, Chapter 14 (the Local Government Bonding Act ), Utah Code Annotated 1953, as amended (the Utah Code ); and the Registered Public Obligations Act, Title 15, Chapter 7, Utah Code (collectively, the Act ); (ii) the resolutions of the County adopted on December 23, 2008 (the Parameters Resolution ) and September 22, 2009 (the Bond Resolution, and collectively with the Parameters Resolution, the Resolutions ), which provide for the issuance of the 2009 Bonds; and (iii) other applicable provisions of law. A portion of the 2009 Bonds in the amount of $24,000,000, were authorized at a special bond election held for that purpose on November 7, The proposition submitted to the voters was as follows: Shall Salt Lake County, Utah, be authorized to issue general obligation bonds in an amount not to exceed $48,000,000 and to mature in no more than 21 years from the date or dates of issuance of such bonds for the purpose of financing the acquisition and preservation of open space, natural habitat, parks and community trails; and, to the extent necessary, for the refunding, at or prior to the maturity thereof, of bonds authorized hereby? At the election there were 154,649 votes cast in favor of the issuance of bonds and 62,550 votes cast against the issuance of bonds, for a total vote count of 217,199, with approximately 71% in favor of the issuance of bonds. The open space bonds are the second and final block of open space bonds to be issued from the November 7, 2006 voted authorization. A portion of the 2009 Bonds in the amount of $6,000,000, were authorized at a special bond election held for that purpose on November 4, The proposition submitted to the voters was as follows: Shall Salt Lake County, Utah, be authorized to issue general obligation bonds pursuant to applicable law in an amount not to exceed $19,600,000 and to mature in no more than 20 years from the date or dates of issuance of such bonds for the purpose of paying the costs of acquiring, improving and renovating facilities for Tracy Aviary located at approximately 589 East 1300 South, Salt Lake City, Utah, and, to the extent necessary, for the refunding, at or prior to the maturity thereof, of bonds authorized hereby; provided, however, that $6,100,000 of such bonds may only be issued if at least $1,500,000 of moneys, pledges, in kind donations or a combination thereof, satisfactory to the County Council, have been received for such facilities within 2 years of the bond election? At the election there were 236,173 votes cast in favor of the issuance of bonds and 112,618 votes cast against the issuance of bonds, for a total vote count of 348,791, with approximately 68% in favor of the issuance of bonds. The aviary bonds are the first block of aviary bonds to be issued from the November 4, 2008 voted authorization. After the sale and delivery of the aviary bonds, the County will have $13,600,000 of authorized, but unissued, bonds from the November 4, 2008 voted authorization. The 2009 Bonds are being issued for the purposes set forth in the propositions and to pay certain costs of issuance. See THE 2009 BONDS Sources And Uses Of Funds below. Redemption Provisions The 2009A Bonds are not subject to optional redemption prior to maturity. The 2009B Bonds are subject to optional and extraordinary optional redemption prior to maturity. See THE 2009 BONDS Redemption Provisions below. 2

7 Registration, Denominations, Manner Of Payment The 2009 Bonds are issuable only as fully registered bonds and, when initially issued, will be registered in the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York ( DTC ). DTC will act as securities depository of the 2009 Bonds. Purchases of 2009 Bonds will be made in book entry form only, in the principal amount of $5,000 or any whole multiple thereof, through brokers and dealers who are, or who act through, DTC s Direct Participants (as defined herein). Beneficial Owners (as defined herein) of the 2009 Bonds will not be entitled to receive physical delivery of bond certificates so long as DTC or a successor securities depository acts as the securities depository with respect to the 2009 Bonds. Direct Participants, Indirect Participants and Beneficial Owners are defined in APPENDIX D BOOK ENTRY SYSTEM below. Principal of and interest on the 2009 Bonds (interest payable June 15 and December 15 of each year, commencing June 15, 2010) are payable by the Salt Lake County Treasurer, Salt Lake City, Utah, as paying agent (the Paying Agent ) for the 2009 Bonds, to the registered owners of the 2009 Bonds. So long as Cede & Co. is the registered owner of the 2009 Bonds, DTC will, in turn, remit such principal and interest to its Direct Participants, for subsequent disbursements to the Beneficial Owners of the 2009 Bonds, as described in APPENDIX D BOOK ENTRY SYSTEM below. So long as DTC or its nominee is the registered owner of the 2009 Bonds, neither the County nor the Paying Agent will have any responsibility or obligation to any Direct or Indirect Participants of DTC, or the persons for whom they act as nominees, with respect to the payments to or the providing of notice for the Direct Participants, Indirect Participants or the Beneficial Owners of the 2009 Bonds. Under these same circumstances, references herein and in the Bond Resolution to the Bondowners or Registered Owners of the 2009 Bonds shall mean Cede & Co. and shall not mean the Beneficial Owners of the 2009 Bonds. Tax Matters Subject to compliance by the County with certain covenants, in the opinion of Chapman and Cutler LLP, Bond Counsel, under present law, interest on (a) the 2009A Bonds (i) is excludable from gross income of the owners thereof for federal income tax purposes, (ii) is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, and (iii) is not taken into account in computing adjusted current earnings, which is used as an adjustment used in determining the federal alternative minimum tax for certain corporations and (b) the 2009B Bonds is includible in gross income for federal income tax purposes. In the opinion of Bond Counsel, under the existing laws of the State of Utah, as presently enacted and construed, interest on the 2009 Bonds is exempt from taxes imposed by the Utah Individual Income Tax Act. The 2009A Bonds are not qualified tax exempt obligations within the meaning of Section 265 (b)(3) of the Internal Revenue Code of See LEGAL MATTERS below for a more complete discussion. Professional Services In connection with the issuance of the 2009 Bonds, the following (other than the independent auditor) have served the County in the capacity indicated. The independent auditor conducted the audit for the County s Fiscal Year

8 Professional Services continued Independent Auditor Bond Counsel and Disclosure Counsel Squire & Company PC Chapman and Cutler LLP Certified Public Accountants 201 S Main St Ste S 800 E Salt Lake City UT Orem UT f f scott@chapman.com daveb@squire.com Bond Registrar and Paying Agent Underwriters Counsel Salt Lake County Treasurer Kutak Rock LLP Salt Lake County 1801 California St 2001 S State St N 1200 Denver Co Salt Lake City UT f f thomas.peltz@kutakrock.com lrichardson@slco.org Financial Advisor Zions Bank Public Finance Zions Bank Building One S Main St 18 th Fl Salt Lake City UT f eric.pehrson@zionsbank.com Conditions Of Delivery, Anticipated Date, Manner, And Place Of Delivery The 2009 Bonds are offered, subject to prior sale, when, as and if issued and received by Robert W. Baird & Co., Incorporated, Milwaukee, Wisconsin; Wells Fargo Brokerage Services, LLC, Minneapolis, Minnesota; and Wells Fargo Securities, New York, New York (collectively, the Underwriters ), subject to the approval of legality of the 2009 Bonds by Chapman and Cutler, LLP, Bond Counsel, and certain other conditions. Certain legal matters will be passed on for the County by the Deputy District Attorney, Dahnelle Burton Lee. Certain legal matters regarding this OFFICIAL STATEMENT will be passed on for the County by Chapman and Cutler, LLP. Certain legal matters will be passed on for the Underwriters by Kutak Rock LLP. It is expected that the 2009 Bonds, in book entry form only, will be available for delivery in Salt Lake City, Utah for deposit with DTC, on or about Thursday, October 8, Continuing Disclosure Undertaking The County will enter into a Continuing Disclosure Undertaking (the Disclosure Undertaking ) for the benefit of the Beneficial Owners of the 2009 Bonds to send certain information annually and to provide notice of certain events to certain information repositories pursuant to the requirements of paragraph (b)(5) of Rule 15c2 12 (the Rule ) adopted by the Securities and Exchange Commission under the Securities Exchange Act of The information to be provided on an annual basis, the events which will be noticed on an occurrence basis and other terms of the Disclosure Undertaking, including termination, amendment and remedies, are set forth in the form of Disclosure Undertaking attached as APPENDIX C. The County has represented that it is in compliance with each and every undertaking previously entered into by it pursuant to the Rule. A failure by the County to comply with the Disclosure Undertaking will not constitute a default under the Resolutions and the Beneficial Owners of the 2009 Bonds are limited to the remedies described in the Disclosure Undertaking. A failure by the County to comply with the 4

9 annual disclosure requirements of the Disclosure Undertaking must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the 2009 Bonds in the secondary market. Consequently, such a failure may adversely affect the marketability and liquidity of the 2009 Bonds and their market price. See APPENDIX C PROPOSED FORM OF CONTINUING DISCLOSURE UNDERTAKING, hereto, for a copy of the proposed form of the Disclosure Undertaking. Basic Documentation This OFFICIAL STATEMENT speaks only as of its date and the information contained herein is subject to change. Brief descriptions of the County, the 2009 Bonds, and the Resolutions are included in this OFFICIAL STATEMENT. Such descriptions do not purport to be comprehensive or definitive. All references herein to the Resolutions are qualified in their entirety by reference to such document and references herein to the 2009 Bonds are qualified in their entirety by reference to the form thereof included in the Bond Resolution. The basic documentation which includes the Resolutions, the closing documents and other documentation, authorizing the issuance of the 2009 Bonds and establishing the rights and responsibilities of the County and other parties to the transaction, may be obtained from the contact persons as indicated below. Contact Persons As of the date of this OFFICIAL STATEMENT, the chief contact person for the County concerning the 2009 Bonds is: Lance Brown, Director, Management and Budget lbrown@slco.org Salt Lake County 2001 S State St N 3300 Salt Lake City UT f slco.org As of the date of this OFFICIAL STATEMENT, additional requests for information may be directed to Zions Bank Public Finance, Salt Lake City, Utah (the Financial Advisor ) to the County: Jon Bronson, Managing Director, jon.bronson@zionsbank.com Alan Westenskow, Vice President, alan.westenskow@zionsbank.com Eric John Pehrson, Vice President, eric.pehrson@zionsbank.com Zions Bank Public Finance Zions Bank Building One S Main St 18 th Fl Salt Lake City UT f

10 THE 2009 BONDS General The 2009 Bonds will be dated the date of their original issuance and delivery 1 (the Dated Date ) and will mature on December 15 of the years and in the amounts as set forth on the inside cover page of this OFFICIAL STATEMENT. The 2009 Bonds will bear interest from their Dated Date at the rates set forth on the cover page of this OFFICIAL STATEMENT. Interest on the 2009 Bonds is payable semiannually on each June 15 and December 15, commencing June 15, Interest on the 2009 Bonds will be computed on the basis of a 360 day year comprised of 12, 30 day months. The Salt Lake County Treasurer is the Bond Registrar (the initial Bond Registrar ) and Paying Agent for the 2009 Bonds under the Bond Resolution. The 2009 Bonds will be issued as fully registered bonds, initially in book entry form, in the denomination of $5,000 or any whole multiple thereof, not exceeding the amount of each maturity. The 2009 Bonds are being issued within the constitutional debt limit imposed on counties in the State. See DEBT STRUCTURE OF SALT LAKE COUNTY, UTAH General Obligation Legal Debt Limit And Additional Debt Incurring Capacity below. Sources And Uses Of Funds The sources and uses of funds in connection with the issuance of the 2009A Bonds are estimated to be as follows: Sources: Uses: Par amount of 2009A Bonds... $11,375, Original issue premium 2009A Bonds , Total... $11,628, Deposit to Projects Account... $11,509, Costs of Issuance (1)... 75, Underwriters discount on the 2009A Bonds... 43, Total... $11,628, (1) Includes legal fees, Financial Advisor fees, rating agency fees, printing fees, rounding amounts and other miscellaneous costs of issuance. (The remainder of this page has been intentionally left blank.) 1 The anticipated date of delivery is Thursday, October 8,

11 The sources and uses of funds in connection with the issuance of the 2009B Bonds are estimated to be as follows: Sources: Uses: Par amount of 2009B Bonds... $18,625, Original issue premium 2009B Bonds... 24, Total... $18,649, Deposit to Projects Account... $18,449, Costs of Issuance (1) , Underwriters discount on the 2009B Bonds... 70, Original issue discount on the 2009B Bonds... 5, Total... $18,649, (1) Includes legal fees, Financial Advisor fees, rating agency fees, printing fees, rounding amounts and other miscellaneous costs of issuance. Security And Sources Of Payment The 2009 Bonds are general obligations of the County, payable from the proceeds of ad valorem taxes to be levied without limitation as to rate or amount on all of the taxable property in the County, fully sufficient to pay the 2009 Bonds as to both principal and interest. See FINANCIAL INFORMATION REGARDING SALT LAKE COUNTY, UTAH Property Tax Matters below. Redemption Provisions The 2009A Bonds The 2009A Bonds are not subject to optional or extraordinary optional redemption prior to maturity. The 2009B Bonds Optional Redemption. The 2009B Bonds maturing on or after December 15, 2019, are subject to redemption prior to maturity, at the election of the County on June 15, 2019 (the First Redemption Date ) and on any date thereafter, in whole or in part, from such maturities or parts thereof as shall be selected by the County, upon notice given as provided in the Bond Resolution and described below, at a redemption price equal to 100% of the principal amount of the 2009B Bonds to be redeemed plus accrued interest thereon to the date fixed for redemption. 2009B Bonds maturing on or prior to the First Redemption Date are not subject to optional redemption. Extraordinary Optional Redemption. The 2009B Bonds are subject to extraordinary optional redemption prior to their maturity at the option of the County, in whole or in part, upon the occurrence of an Extraordinary Event, at a redemption price equal to 100% of the principal amount of the 2009B Bonds to be redeemed, plus accrued interest thereon to the redemption date. An Extraordinary Event will have occurred if a material adverse change has occurred to Section 54AA or 6431 of the Code (as such Sections were added by Section 1531 of the Recovery Act, per- 7

12 taining to Build America Bonds ) pursuant to which the County s 35% subsidy payment from the United States Treasury is reduced or eliminated. Selection for Redemption. If less than all 2009 Bonds of any maturity are to be redeemed, the particular 2009 Bonds or portion of 2009 Bonds of such maturity to be redeemed will be selected at random by the Bond Registrar in such manner as the Bond Registrar in its discretion may deem fair and appropriate. The portion of any registered 2009 Bond of a denomination of more than $5,000 to be redeemed will be in the principal amount of $5,000 or a whole multiple thereof, and in selecting portions of such 2009 Bonds for redemption, the Bond Registrar will treat each such 2009 Bond as representing that number of 2009 Bonds of $5,000 denomination which is obtained by dividing the principal amount of such 2009 Bond by $5,000. Notice of Redemption. Notice of redemption will be given by the Bond Registrar by registered or certified mail, not less than 30 nor more than 45 days prior to the redemption date, to the owner, as of the Record Date, as defined under THE 2009 BONDS Registration And Transfer below, of each 2009 Bond that is subject to redemption, at the address of such owner as it appears on the registration books of the County kept by the Bond Registrar, or at such other address as is furnished to the Bond Registrar in writing by such owner on or prior to the Record Date. Each notice of redemption will state the Record Date, the principal amount, the redemption date, the place of redemption, the redemption price and, if less than all of the 2009 Bonds are to be redeemed, the distinctive numbers of the 2009 Bonds or portions of 2009 Bonds to be redeemed, and will also state that the interest on the 2009 Bonds in such notice designated for redemption will cease to accrue from and after such redemption date and that on the redemption date there will become due and payable on each of the 2009 Bonds to be redeemed the principal thereof and interest accrued thereon to the redemption date. Each notice of optional redemption may further state that such redemption will be conditioned upon the receipt by the Paying Agent, on or prior to the date fixed for redemption, of moneys sufficient to pay the principal of and premium, if any, and interest on such 2009 Bonds to be redeemed and that if such moneys have not been so received the notice will be of no force or effect and the County will not be required to redeem such 2009 Bonds. In the event that such notice of redemption contains such a condition and such moneys are not so received, the redemption will not be made and the Bond Registrar will within a reasonable time thereafter give notice, in the manner in which the notice of redemption was given, that such moneys were not so received. Any such notice mailed will be conclusively presumed to have been duly given, whether or not the Bondowner receives such notice. Failure to give such notice or any defect therein with respect to any 2009 Bond will not affect the validity of the proceedings for redemption with respect to any other 2009 Bond. In addition to the foregoing notice, further notice of such redemption will be given by the Bond Registrar to certain registered securities depositories and national information services as provided in the Bond Resolution, but no defect in such further notice nor any failure to give all or any portion of such notice will in any manner affect the validity of a call for redemption if notice thereof is given as prescribed above and in the Bond Resolution. For so long as a book entry system is in effect with respect to the 2009 Bonds, the Bond Registrar will mail notices of redemption to DTC or its successor. Any failure of DTC to convey such notice to any Direct Participants or any failure of the Direct Participants or Indirect Participants to convey such notice to any Beneficial Owner will not affect the sufficiency of the notice or the validity of the redemption of 2009 Bonds. See THE 2009 BONDS Book Entry System below. Registration And Transfer In the event the book entry system is discontinued, any 2009 Bond may, in accordance with its terms, be transferred, upon the registration books kept by the Bond Registrar, by the person in whose name it is 8

13 registered, in person or by such owner s duly authorized attorney, upon surrender of such 2009 Bond for cancellation, accompanied by delivery of a duly executed written instrument of transfer in a form approved by the Bond Registrar. No transfer will be effective until entered on the registration books kept by the Bond Registrar. Whenever any 2009 Bond is surrendered for transfer, the Bond Registrar will authenticate and deliver a new fully registered 2009 Bond or 2009 Bonds of the same series, designation, maturity and interest rate and of authorized denominations duly executed by the County, for a like aggregate principal amount. The 2009 Bonds may be exchanged at the principal corporate office of the Bond Registrar for a like aggregate principal amount of fully registered 2009 Bonds of the same series, designation, maturity and interest rate of other authorized denominations. For every such exchange or transfer of the 2009 Bonds, the Bond Registrar must make a charge sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or transfer of the 2009 Bonds. The Bond Registrar will not be required to transfer or exchange any 2009 Bond (a) after the Record Date with respect to any interest payment date to and including such interest payment date, or (b) after the Record Date with respect to any redemption of such 2009B Bond. The term Record Date means (i) with respect to each interest payment date, the day that is 15 days preceding such interest payment date, or if such day is not a business day for the Bond Registrar, the next preceding day that is a business day for the Bond Registrar, and (ii) with respect to any redemption of any 2009B Bond such Record Date as is specified by the Bond Registrar in the notice of redemption, provided that such Record Date will be not less than 15 calendar days before the mailing of such notice of redemption. The County, the Bond Registrar and the Paying Agent may treat and consider the person in whose name each 2009 Bond is registered in the registration books kept by the Bond Registrar as the holder and absolute owner thereof for the purpose of receiving payment of, or on account of, the principal or redemption price thereof (on the 2009B Bonds) and interest due thereon and for all other purposes whatsoever. Book Entry System DTC will act as securities depository for the 2009 Bonds. The 2009 Bonds will be issued as fully registered securities registered in the name of Cede & Co. (DTC s partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully registered 2009 Bond certificate will be issued for each maturity of the 2009 Bonds, each in the aggregate principal amount of such maturity, and will be deposited with DTC. See APPENDIX D BOOK ENTRY SYSTEM for a more detailed discussion of the book entry system and DTC. In the event the book entry system is discontinued, interest on the 2009 Bonds will be payable by check or draft of the Paying Agent, mailed to the registered owners thereof at the addresses shown on the registration books of the County kept for that purpose by the Bond Registrar. The principal of all 2009 Bonds will be payable at the principal office of the Paying Agent. (The remainder of this page has been intentionally left blank.) 9

14 Debt Service On The 2009A Bonds The 2009A Bonds Payment Date Principal Interest Period Total Fiscal Total June 15, $ 0.00 $ 181, $ 181, December 15, ,020, , ,152, $1,334, June 15, , , December 15, ,200, , ,322, ,444, June 15, , , December 15, ,225, , ,335, ,445, June 15, , , December 15, ,250, , ,348, ,446, June 15, , , December 15, ,275, , ,360, ,446, June 15, , , December 15, ,300, , ,372, ,445, June 15, , , December 15, ,335, , ,391, ,448, June 15, , , December 15, ,365, , ,404, ,444, June 15, , , December 15, ,405, , ,426, ,447, Totals... $11,375, $1,526, $12,901, Debt Service On The 2009B Bonds The 2009B Bonds Payment Date Principal Interest Period Total Fiscal Total June 15, $ 0.00 $ 638, $ 638, December 15, , , $1,103, June 15, , , December 15, , , , June 15, , , December 15, , , , June 15, , , December 15, , , , June 15, , , December 15, , , , June 15, , , December 15, , , , June 15, , , December 15, , , , June 15, , , December 15, , , , June 15, , , December 15, , , , June 15, , , December 15, ,450, , ,915, ,380, June 15, , , December 15, ,485, , ,918, ,351, June 15, , , December 15, ,535, , ,934, ,333, June 15, , , December 15, ,580, , ,943, ,307, June 15, , , December 15, ,625, , ,951, ,277,

15 Debt Service On The 2009B Bonds continued The 2009B Bonds Payment Date Principal Interest Period Total Fiscal Total June 15, $ 0.00 $ 287, $ 287, December 15, ,680, , ,967, $2,254, June 15, , , December 15, ,735, , ,980, ,226, June 15, , , December 15, ,790, , ,991, ,193, June 15, , , December 15, ,850, , ,005, ,160, June 15, , , December 15, ,915, , ,021, ,127, June 15, , , December 15, ,980, , ,034, ,088, Totals... $18,625, $14,617, $33,242, General SALT LAKE COUNTY, UTAH Permanent settlement of the County began on July 24, 1847 when a party of 147 pioneers entered the Salt Lake Valley after a 1,500 mile trek westward. Within a few years, the Salt Lake Valley had become a major center for trade and commerce, with wagon trains carrying settlers and miners westward. Salt Lake City became the capital city of the territory and the county seat on January 6, The County is a metropolitan area with a population of over one million people. The County is the most populous county in the State and comprises an area of approximately 737 square miles. The County is bordered on the west by the Great Salt Lake and the Oquirrh Mountains, and on the east by the Wasatch Mountains. The principal cities in the County are Salt Lake City, West Valley City, Sandy City, West Jordan City and Murray City. Other communities include Alta Town, Bluffdale City, Cottonwood Heights City, Draper City, Herriman City, Holladay City, Midvale City, Riverton City, South Jordan City, South Salt Lake City and Taylorsville City. Form Of Government A County Mayor (the County Mayor ) and a nine member County Council (the County Council ) currently govern the County. This provides for a separation of executive and legislative powers. The County Mayor is elected at large and serves full time, performing traditional day to day executive/management duties. The powers of the County Mayor generally include, but are not limited to, managing County divisions and departments, enforcing programs, policies, regulations and ordinances of the County; negotiating County contracts; proposing a County budget; acting as an intergovernmental relations liaison; and considering and implementing long range planning, programs and improvements. The County Mayor also has general veto power including power of the line item veto. The County Council serves as the legislative branch of government. In general, the powers of the County Council include, but are not limited to, the consideration and adoption of ordinances, rules, regulations, resolutions, and policies; adoption of a budget, including the setting of tax rates and fees as may 11

16 be necessary to fund the budget; conducting hearings of public concern and quasi judicial hearings on matters of planning, zoning, license revocation, and other similar matters as provided by statute, charter or ordinance; and generally performing every other legislative act as may be required by statute. In addition, the County Council serves as the County Board of Equalization, the Municipal Building Authority Board, the Redevelopment Agency Board, and the Special Sanitation District Board. In addition to the County Mayor and County Council, other Countywide elected officials include the Assessor, Auditor, Clerk, District Attorney, Recorder, Sheriff, Surveyor and Treasurer. Current members of the County Council, officers and certain administrators of the County and their respective terms or appointment in office are as follows: Years Office/District Person of Service Expiration of Term Chair / District 1... Joe Hatch 8 January 2011 Vice Chair / At Large... Jenny Wilson 5 January 2011 Council Member / District 2... Michael H. Jensen 8 January 2013 Council Member / District 3... David A. Wilde 8 January 2011 Council Member / District 4... Jani Iwamoto 1 January 2013 Council Member / District 5... Jeff Allen 3 January 2011 Council Member / District 6... Max Burdick 1 January 2013 Council Member / At Large (1)... Jim Bradley 8 January 2013 Council Member / At Large (2)... Randy Horiuchi 8 January 2015 Mayor... Peter M. Corroon 5 January 2013 Assessor... Lee Gardner 15 January 2011 Auditor... Jeff Hatch 3 January 2011 Clerk... Sherrie Swensen 19 January 2011 District Attorney... Lohra Miller 3 January 2011 Recorder... Gary Ott 9 January 2011 Sheriff... Jim Winder 3 January 2011 Surveyor... Reid Demman 3 January 2011 Treasurer... Larry W. Richardson 15 January 2011 Chief Administrative Officer... Doug Willmore 5 Appointed Chief Financial Officer... Darrin Casper 4 Appointed Deputy District Attorney... Dahnelle Burton Lee 3 Appointed Director, Management and Budget Lance Brown 9 (1) Mr. Bradley previously served four years as a County Commissioner under the prior form of government. (2) Mr. Horiuchi previously served eight years as a County Commissioner under the prior form of government. Services Provided by the County The County provides services to incorporated and unincorporated areas within the County. Some of the most important of these services are as follows. County wide services. Tax assessment, tax collection, tax distribution, tax equalization, auditing, budgeting, accounting, investment, surveying, recording, marriage licenses, passports, library services (excluding Salt Lake and Murray cities), jail services, criminal justice support, prosecution, civil services, aging services, health, mental health, parks and recreation, criminal justice and youth services, convention center, fine arts, planetarium, convention & visitors bureau, job training and development, administration and support services to county operations, flood control and solid waste management. 12

17 Unincorporated area services (and other areas by contract). Animal services, justice courts, street lighting, highways, planning and zoning, traffic engineering, development services, business licenses and sanitation and misdemeanor prosecution. Effective January 1, 2010, police protection will be provided by a new public agency (the Unified Police Department or UPD ) created by the County and several municipalities in the County pursuant to the Utah Interlocal Cooperation Act. The UPD will provide police protection in the participating cities and the unincorporated area of the County. The County has also established a local district covering the unincorporated area of the County that will assume responsibility for funding police protection in the unincorporated area and representing that area in the UPD. Employee Workforce And Retirement System; Post Employment Benefits Employee Workforce and Retirement System. The County employs approximately 4,000 full time equivalent employees. The County is a member of the Utah State Retirement System which also provides and administers a deferred compensation plan for County employees. See APPENDIX A BASIC FI- NANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION FOR FISCAL YEAR 2008 Notes To The Financial Statements; Note 9. Pension Plans; and Note 10. Deferred Compensation Plans. Post Employment Benefits. The County offers to eligible employees post employment health care and life insurance benefits through a single employer defined benefit plan, to eligible employees who retire from the County and qualify to retire from the Utah State Retirement System. The benefits, benefit levels, employee contributions, and employer contributions are governed by County policy, and can be amended at any time. Approximately 1,133 retirees are utilizing these benefits. As of December 31, 2008 the County s unfunded accrued actuarial liability was $148.7 million. For a detailed discussion regarding the post employment benefit plans see APPENDIX A BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION FOR FISCAL YEAR 2008 Notes To The Financial Statements Note 11 Other Postretirement Benefits. Risk Management The County is fully self insured for general liability, except for general liability claims relating to the Salt Palace Convention Center and Southtowne Exposition Center (County owned convention centers) where the County is insured through commercial insurance. The County is self insured for worker s compensation below $750,000. See APPENDIX A BASIC FINANCIAL STATEMENTS AND RE- QUIRED SUPPLEMENTARY INFORMATION FOR FISCAL YEAR 2008 Notes To The Financial Statements Note 13. Risk Management. Investment Of Funds The State Money Management Act. The State Money Management Act, Title 51, Chapter 7 of the Utah Code (the Money Management Act ), governs and establishes criteria for the investment of all public funds held by public treasurers in the State. The Money Management Act provides a limited list of approved investments, including qualified in state and permitted out of state financial institutions, obligations of the State and political subdivisions of the State, U.S. Treasury and approved federal government agency and instrumentality securities, certain investment agreements and repurchase agreements and investments in corporate securities meeting certain ratings requirements. The Money Management Act establishes the State Money Management Council (the Money Management Council ) to exercise oversight of public deposits and investments. The Money Management Council is comprised of five members appointed by the Governor of the State for terms of four years, after consultation with the State Treasurer and with the advice and consent of the State Senate. The County is currently complying with all of the provisions of the Money Management Act for all County operating funds. 13

18 The Utah Public Treasurers Investment Fund. A significant portion of County funds may be invested in the Utah Public Treasurers Investment Fund ( PTIF ). The PTIF is a local government investment fund, established in 1981, and managed by the State Treasurer. All investments in the PTIF must comply with the Money Management Act and rules of the Money Management Council. The PTIF invests primarily in money market securities. Securities in the PTIF include certificates of deposit, commercial paper, short term corporate notes, obligations of the U.S. Treasury and securities of certain agencies of the federal government. By policy, the maximum weighted average adjusted life of the portfolio is not to exceed 90 days and the maximum final maturity of any security purchased by the PTIF is limited to five years. Safekeeping and audit controls for all investments owned by the PTIF must comply with the Money Management Act. All securities purchased are delivered versus payment to the custody of the State Treasurer or the State Treasurer s safekeeping bank, assuring a perfected interest in the securities. Securities owned by the PTIF are completely segregated from securities owned by the State. The State has no claim on assets owned by the PTIF except for any investment of State moneys in the PTIF. Deposits are not insured or otherwise guaranteed by the State. Investment activity of the State Treasurer in the management of the PTIF is reviewed monthly by the Money Management Council and is audited by the State Auditor. The PTIF is not rated. See APPENDIX A BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMEN- TARY INFORMATION FOR FISCAL YEAR 2008 Notes to the Financial Statements Note 2. Deposits and Investments. Investment of 2009 Bond Proceeds. The proceeds of the 2009 Bonds will be held by the County and invested so as to be readily available. The 2009 Bond proceeds may also be invested in the PTIF or other available investment funds authorized under the Money Management Act. Population % % Change From Change From County Prior Period State of Utah Prior Period 2008 Estimate (1)... 1,022, % 2,736, % 2000 Census , ,233, Census , ,722, Census , ,461, Census , ,059, Census , , Census , , Census , , (1) U.S. Bureau of the Census estimates for July 1, Percentage change for this time period is calculated from the 2000 Census. (Source: U.S. Department of Commerce, Bureau of the Census.) 14

19 Employment, Income, Construction, and Sales Taxes Salt Lake County Labor Force, Nonfarm Jobs and Wages % % % % % Calendar Year Change Change Change Change Change Civilian labor force (1) 564, , , , , , Employed persons 545, , , , , , Unemployed persons 18,546 14,285 15,514 21,299 25,479 28, (7.9) (27.2) (16.4) (11.4) Total nonfarm jobs (1) 614, , , , , , Mining 2,576 2,450 2,203 2,012 1,682 1, (1.2) Construction 41,074 42,492 39,697 34,128 30,943 30,192 (3.3) Manufacturing 54,546 55,776 53,385 51,138 50,235 48,898 (2.2) Trade, transportation, utilities 130, , , , , , Information 18,806 18,468 18,423 17,963 17,386 17, (1.1) Financial activity 50,052 49,816 47,299 44,719 43,418 44, (1.4) Professional and business services 99,250 96,685 93,999 87,412 81,587 79, Education and health services 59,824 57,845 54,973 53,610 51,418 49, Leisure and hospitality 49,423 47,911 46,135 44,683 44,008 43, Other services. 18,855 18,629 18,140 17,786 17,527 17, Government 87,585 85,988 85,232 84,426 83,109 82, Total payroll (in millions) (1) $ 6,060 $ 24,571 $ 22,347 $ 20,401 $ 18,988 $ 17,932 (75.3) Average monthly wage $ 3,341 $ 3,406 $ 3,212 $ 3,063 $ 2,956 $ 2,830 (1.9) Average employment 604, , , , , , Establishments 37,758 37,727 37,887 35,975 33,987 32, (0.4) Personal Income and Per Capita Personal Income % % % % % Calendar Year Change Change Change Change Change 2007 (f) 2006 (p) 2005 (r) 2004 (r) Total Personal Income (in millions): Salt Lake County $ 37,308.8 $ 34,619.5 $ 32,092.1 $ 29,022.5 $ 27,171.0 $ 26, State of Utah... 82, , , , , , Total Per Capita Personal Income: Salt Lake County 36, , , , , , State of Utah... 30, , , , , , Construction % % % % % Calendar Year Change Change Change Change Change 2009 (2) (3) Number new dwelling units 2, , , , , , (21.2) (27.2) (20.0) 19.3 New (in thousands): Residential Value $ 409,701.5 $ 588,477.5 $ 820,048.6 $ 1,087,470.3 $ 1,174,484.3 $ 918, (28.2) (24.6) (7.4) 27.8 Non residential value 404, , , , , , (16.6) (1.7) Additions, alterations, repairs (in thousands): Residential Value 54, , , , , , (24.2) Non residential value 121, , , , , ,634.0 (36.6) (26.2) 39.2 (17.2) 77.4 Total construction value (in thousands) $ 990,491.8 $ 1,656,131.1 $ 2,153,637.9 $ 2,075,491.7 $ 2,073,618.2 $ 1,673, (23.1) Sales Taxes % % % % % Calendar Year Change Change Change Change Change Gross Taxable Sales (in thousands): Salt Lake County na $ 21,634,262 $ 20,328,814 $ 18,010,926 $ 16,576,588 $ 15,445,006 na State of Utah.. na 51,389,926 44,795,780 39,241,252 35,310,875 32,560,042 na % % % % % Fiscal Year Change Change Change Change Change Local Sales and Use Tax Distribution: Salt Lake County (and all cities) $ 196,624,877 $ 190,455,489 $ 171,843,710 $ 154,584,282 $ 144,013,478 $ 138,525, (1) Information on: Civilian Labor Force for 2008 based on yearly average; Total Nonfarm Jobs th quarter. Total Payroll nd quarter. (2) Preliminary; subject to change. January July 2009 only. (3) Preliminary; subject to change. Represents percent change from July (f) forcast; (p) preliminary; (r) revised. (Source: Utah Department of Employment Security and Utah State Tax Commission.) 15

20 Largest Employers The County is the business and financial center for most of the major businesses and industries in the State. Major employers (over 1,000 employees) in the County area include: Approximate Range of Number Employer Business of Employees University of Utah (Salt Lake City)... Education services 13,000 19,000 Jordan School District (1)... Education services 6,100 13,300 Granite School District... Education services 6,050 13,200 State of Utah (various departments)... Public administration 5,800 11,950 LDS Church (various departments) (2)... Various businesses 5,800 11,900 Salt Lake County... Public administration 5,000 7,000 University of Utah Hospital (Salt Lake City)... Health care and social assistance 4,100 5,250 Intermountain Medical Center (Murray City)... Health care 4,000 5,000 Intermountain Health Care (various)... Health care and social assistance 3,200 5,450 Wal Mart (various)... Retail trade 2,800 5,650 United States Postal Service (Salt Lake City)... Transportation and warehousing 2,700 5,550 Salt Lake City School District (Salt Lake City)... Public administration 2,250 4,850 Smith s (various)... Retail trade 2,200 5,200 Zions Bank (West Valley City)... Finance and insurance 2,000 4,050 Delta Airlines (Salt Lake City)... Transportation and warehousing 2,000 3,000 Discover Products (West Valley City)... Finance and insurance 2,000 3,000 L3 Communications Corp. (Salt Lake City)... Manufacturing 2,000 3,000 Primary Children s Medical Center (Salt Lake City)... Health care and social assistance 2,000 3,000 Skywest Airlines (Salt Lake City)... Transportation and warehousing 2,000 3,000 Wells Fargo Bank N.A. (various)... Finance and insurance 1,900 3,850 United Parcel Service (West Valley City)... Transportation and warehousing 1,600 3,200 LH Miller Enterprises (various)... Various businesses 1,400 3,200 Qwest Corporation (Salt Lake City)... Management and enterprises 1,300 2,700 ARUP Laboratories (Salt Lake City)... Health care and social assistance 1,250 2,500 Albertson s (various)... Retail trade 1,200 2,550 Kennecott Utah Copper (various)... Mining 1,200 2,500 Harmons (various)... Retail trade 1,150 2,750 Utah Transit Authority (Salt Lake City)... Transportation and warehousing 1,000 2,200 Alliant (Magna)... Manufacturing 1,000 2,000 C.R. England Inc. (Salt Lake City)... Transportation and warehousing 1,000 2,000 Central Refrigerated Services (Salt Lake City)... Transportation and warehousing 1,000 2,000 Convergys (Salt Lake City)... Admin., support, waste manag. 1,000 2,000 Ebay (Draper City)... Admin., support, waste manag. 1,000 2,000 Fidelity Brokerage Services (Salt Lake City)... Finance and insurance 1,000 2,000 (1) In July 2009, the Canyons School District was created by a division from the Jordan School District. Information on the Canyons School District and the Jordan School District following the division is not available. (2) The Church of Jesus Christ of Latter day Saints. 16

21 Largest Employers continued Approximate Range of Number Employer Business of Employees Huish Detergents (Salt Lake City)... Manufacturing 1,000 2,000 Jet Blue Airways (Salt Lake City)... Admin., support, waste manag. 1,000 2,000 LDS Hospital (Salt Lake City)... Health care and social assistance 1,000 2,000 Northern Utah Health Care Corp. (Salt Lake City)... Health care and social assistance 1,000 2,000 Salt Lake Community College (Salt Lake City)... Public administration 1,000 2,000 Salt Lake Valley Mental Health Board (Salt Lake City) Health care and social assistance 1,000 2,000 Teleperformance USA (Salt Lake City)... Admin., support, waste manag. 1,000 2,000 Utah State Prison (Draper)... Public administration 1,000 2,000 Utah State Social Services (Salt Lake City)... Public administration 1,000 2,000 Verizon Wireless (West Valley City)... Admin., support, waste manag. 1,000 2,000 Veterans Administration Hospital (Salt Lake City)... Health care and social assistance 1,000 2,000 (Source: Utah Department of Workforce Services. Reference month for employment information is March 2009.) Rate Of Unemployment Annual Average Salt Lake State United Year County of Utah States 2009 (1) % 6.0% 9.4% (1) Preliminary, subject to change. July 2009 only, seasonally adjusted. (Source: Utah Department of Workforce Services) (Source: United Stated Department of Labor, Bureau of Labor Statistics.) (The remainder of this page has been intentionally left blank.) 17

22 DEBT STRUCTURE OF SALT LAKE COUNTY, UTAH Outstanding General Obligation Bonded Indebtedness Original Current Principal Final Principal Series (1) Purpose Amount Maturity Date Outstanding 2009B (a)... Open space/aviary $ 18,625,000 December 15, 2029 $ 18,625, A (a)... Open space/aviary 11,375,000 December 15, ,375, Open space 24,000,000 December 15, ,000, Recreation 65,000,000 June 15, ,950, B... Museum 15,000,000 December 15, ,770, (2)... Refunding 102,795,000 June 15, ,325, Refunding 73,810,000 December 15, ,720,000 Total principal amount of outstanding direct general obligation debt (3)... $268,765,000 General Obligation Debt Expected To Be Paid From Ad Valorem Property Tax Levy Total principal amount of outstanding direct general obligation debt... $268,765,000 Less principal amount of direct general obligation debt anticipated to be paid by other revenues (2)... (91,325,000) Total principal amount of outstanding direct general obligation debt (4)... $177,440,000 (a) For purposes of this OFFICIAL STATEMENT, the 2009 Bonds will be considered issued and outstanding. (1) Rated AAA by Fitch Ratings ( Fitch ); Aaa by Moody s Investors Service, Inc. ( Moody s); and AAA by Standard & Poor s Ratings Services, a division of The McGraw Hill Companies, Inc. ( S&P ), as of the date of this OFFICIAL STATEMENT. (2) Principal of and interest payments on these bonds are anticipated to be paid from various other revenue sources of the County. (3) Generally accepted accounting principles require that bond premium/discount and the amount relating to the defeasance in a refunding bond issue be amortized over the life of the bonds. For accounting purposes, the outstanding direct debt as shown above is increased by the premium associated with debt issued and reduced by deferred amounts on refundings that are reported in the long term debt notes of the County s financial statements. Thus, for accounting purposes, the net unamortized bond premium was $4,652,242 and the net deferred amount was $5,069,184 (as of December 31, 2008), and together with current outstanding direct general obligation debt of $268,765,000, results in total outstanding net direct debt of $268,348,058. (4) Expected to be paid from ad valorem property tax levy. (The remainder of this page has been intentionally left blank.) 18

23 Outstanding Sales Tax Revenue Bonded Indebtedness Original Current Principal Final Principal Series (1) Purpose Amount Maturity Date Outstanding Convention center $57,095,000 August 1, 2025 $51,225, Convention center 14,700,000 February 1, ,315, Planetarium 16,055,000 February 1, ,860,000 Total principal amount of outstanding debt (2)... $73,400,000 (1) Rated AAA by S&P, as of the date of this OFFICIAL STATEMENT. (2) For accounting purposes, the net unamortized premium was $3,709,448 (as of December 31, 2008) and together with current outstanding sales tax revenue debt of $73,400,000, results in total outstanding net debt of $77,109,448. Outstanding Assessment District Bonded Indebtedness Original Current Principal Final Principal Series Purpose Amount Maturity Date Outstanding 2006 (1) Millcreek Fire $6,845,000 March 15, 2016 $3,810,000 (1) Rated AAA (FSA Insured; underlying AA ) by S&P, as of the date of this OFFICIAL STATEMENT. (The remainder of this page has been intentionally left blank.) 19

24 Debt Service Schedule Of Outstanding General Obligation Bonds By Fiscal Year Fiscal Series 2009B Series 2009A Series 2008 Series 2007 Series 2004B Year Ending $18,625,000 $11,375,000 $24,000,000 $65,000,000 $15,000,000 December 31 Principal Interest (1) Principal Interest Principal Interest Principal Interest Principal Interest 2008 $ 0 $ 0 $ 0 $ 0 $ 1,000,000 $ 742,456 $ 4,325,000 $ 2,705,313 $ 840,000 $ 530, , ,488 4,725,000 2,524, , , ,103,098 1,020, , , ,050 5,150,000 2,326, , , ,013 1,200, , , ,800 5,625,000 2,111, , , ,013 1,225, , , ,300 6,100,000 1,876,813 1,000, , ,013 1,250, ,063 1,000, ,050 6,625,000 1,614,031 1,045, , ,013 1,275, ,063 1,025, ,050 7,175,000 1,329,750 1,085, , ,013 1,300, ,563 1,050, ,300 7,750,000 1,031,250 1,130, , ,013 1,335, ,063 1,100, ,175 8,400, ,250 1,185, , ,013 1,365,000 79,688 1,125, ,050 9,125, ,125 1,245, , ,013 1,405,000 42,150 1,175, ,675 1,305,000 65, ,450, ,013 1,200, , ,485, ,213 1,250, , ,535, ,645 1,300, , ,580, ,268 1,375, , ,625, ,218 1,425, , ,680, ,218 1,475, , ,735, ,058 1,525, , ,790, ,440 1,600, , ,850, ,360 1,675,000 71, ,915, , ,980, ,900 Totals $ 18,625,000 $ 14,617,838 $ 11,375,000 $ 1,526,987 $ 24,000,000 $ 10,750,494 $ 65,000,000 $ 16,413,969 $ 11,610,000 $ 3,476,000 Fiscal Series 2004 Series 2001 Totals Year Ending $102,795,000 $73,810,000 Total Total Total Debt December 31 Principal Interest Principal Interest Principal Interest (1) Service 2008 $ 95,000 $ 4,555,213 $ 6,295,000 $ 3,140,525 $ 12,555,000 $ 11,673,806 $ 24,228, ,610,000 4,439,013 6,755,000 2,794,300 17,850,000 11,101,413 28,951, ,100,000 4,096,263 7,200,000 2,456,550 24,295,000 11,568,098 35,863, ,555,000 3,629,888 7,620,000 2,141,550 25,915,000 10,262,175 36,177, ,060,000 3,139,513 8,130,000 1,741,500 27,490,000 9,046,150 36,536, ,570,000 2,623,763 8,650,000 1,335,000 29,140,000 7,767,369 36,907, ,120,000 2,081,513 9,165, ,750 30,845,000 6,454,788 37,299, ,580,000 1,664,013 9,750, ,500 26,560,000 5,180,888 31,740, ,840,000 1,407,713 17,860,000 3,948,963 21,808, ,075,000 1,169,413 18,935,000 3,142,788 22,077, ,345, ,150 10,230,000 2,511,238 12,741, ,630, ,213 9,280,000 2,069,306 11,349, ,480, ,738 8,215,000 1,685,031 9,900, ,970, ,719 7,805,000 1,335,445 9,140, ,955,000 1,103,349 4,058, ,050, ,299 4,023, ,155, ,299 3,993, ,260, ,295 3,954, ,390, ,628 3,932, ,525, ,548 3,906, ,915, ,310 2,127, ,980, ,900 2,088,900 Totals $ 96,030,000 $ 30,774,119 $ 63,565,000 $ 15,042,675 $ 290,205,000 $ 92,602,082 $ 382,807,082 (1) Does not reflect a 35% federal interest rate subsidy on the 2009B Bonds. 20

25 Debt Service Schedule Of Outstanding Sales Tax Revenue Bonds By Fiscal Year Fiscal Series 2005 Series 2004 Series 2001 Totals Year Ending $57,095,000 $14,700,000 $16,055,000 Total Total Total Debt December 31 Principal Interest Principal Interest Principal Interest Principal Interest Service 2008 $ 1,575,000 $ 2,656,000 $ 570,000 $ 568,400 $ 950,000 $ 557,675 $ 3,095,000 $ 3,782,075 $ 6,877, ,625,000 2,593, , , , ,638 3,205,000 3,661,638 6,866, ,675,000 2,536, , ,475 1,030, ,713 3,315,000 3,542,313 6,857, ,375,000 2,477, , ,775 1,075, ,981 4,080,000 3,417,256 7,497, ,475,000 2,358, , ,288 1,130, ,475 4,260,000 3,223,513 7,483, ,550,000 2,235, , ,013 1,190, ,575 4,415,000 3,015,588 7,430, ,650,000 2,107, , ,950 1,255, ,394 4,605,000 2,799,844 7,404, ,775,000 1,975, , ,275 1,320, ,800 4,825,000 2,571,075 7,396, ,925,000 1,836, , ,750 1,390, ,663 5,075,000 2,327,663 7,402, ,050,000 1,690, , ,763 1,470,000 38,588 5,315,000 2,071,351 7,386, ,225,000 1,537, , ,088 4,060,000 1,843,588 5,903, ,375,000 1,376, , ,613 4,250,000 1,643,863 5,893, ,550,000 1,207, , ,338 4,465,000 1,434,838 5,899, ,725,000 1,030, , ,875 4,680,000 1,212,875 5,892, ,900, ,750 1,005, ,875 4,905, ,625 5,882, ,100, ,750 1,060,000 82,250 5,160, ,000 5,891, ,325, ,750 1,115,000 27,875 5,440, ,625 5,911, ,550, ,500 4,550, ,500 4,777,500 Totals $ 54,425,000 $ 29,780,125 $ 13,475,000 $ 5,911,600 $ 11,800,000 $ 3,263,502 $ 79,700,000 $ 38,955,227 $ 118,655,227 21

26 Debt Service Schedule Of Outstanding Special Improvement District Bonds By Fiscal Year (1) Fiscal Year Ending December 31 Series 2006 $6,845,000 Total Debt Principal (2) Interest Service 2008 $ 485,000 $ 177,193 $ 662, , , , , , , , , , , , , ,000 82, , ,000 60, , ,000 36, , ,000 12, ,581 Totals $ 4,770,000 $ 895,744 $ 5,665,744 (1) Because these bonds are callable at any time, total principal and interest calculation payments for each Fiscal Year may not match actual principal and interest amounts being paid. (2) Remaining principal outstanding as of August

27 Other Financial Considerations; Historical Tax And Revenue Anticipation Note Borrowing Possible future issuance of debt. In December 2009 the Municipal Building Authority of Salt Lake County, Utah (the Authority ) will issue approximately $60 million of lease revenue bonds for buildings for senior citizen, public works, libraries and/or other miscellaneous projects. The County may issue, in late 2009 or early 2010, up to $33 million of general obligations bonds for improvements and renovations of facilities for Hogle Zoo. These bonds were authorized at a November 2008 bond election. Tax and Revenue Anticipation Notes. The County anticipates the issuance of approximately $45 million of tax and revenue anticipation notes, at a negotiated sale, on September 24, These notes will be due on December 30, The last tax and revenue anticipation note issued by the County was in Fiscal Year 2004 in the amount of $32.5 million. Other Debt. The County has entered into various agreements for financing its capital needs. See AP- PENDIX A BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFOR- MATION OF SALT LAKE COUNTY, UTAH FOR FISCAL YEAR 2008 Notes To The Financial Statements Note 8. Long Term Liabilities and Note 15. Joint Ventures. Other Debt The Municipal Building Authority Of Salt Lake County, Utah The Authority is a body politic and corporate, organized and existing pursuant to the Utah Municipal Building Authority Act (now known as the Local Building Authority Act). The Authority was created in 1992 for the purpose of acquiring, constructing, improving or extending projects on behalf of the County pursuant to the Utah Municipal Building Authority Act. The Authority s debt does not constitute debt of the County within the meaning of any constitutional provision or statutory limitation. The Authority has entered into an annual lease with the County for each project on an all or none basis. The lease may be terminated by the County in any year and payments by the County may be made only from moneys which are annually budgeted and appropriated by the County for such purpose. In January 2004, the County issued $102,795,000 of General Obligation Refunding Bonds, Series 2004, the proceeds of which refunded certain maturities of the Authority s 1994A Bonds, the 1996A Bonds, the 1998 Bonds and the 1999 Bonds (the Authority s Refunded Lease Revenue Bonds ). The purpose of this refunding was to lower the interest costs of financing the projects of the Authority. A portion of the revenues and appropriations that were being used to pay the Authority s Refunded Lease Revenue Bonds was then used to pay the principal of and interest on the County s Series 2004 General Obligation Bonds. Pursuant to an indenture and a master lease (the Master Lease ), all of the lease revenue bonds issued under the Master Lease are cross collateralized in that the Authority has granted to a trustee, for the benefit of the owners of all of the lease revenue bonds issued under the Master Lease, a security interest in all of the Authority s right, title and interest in the projects financed with the lease revenue bonds issued under the Master Lease. (The remainder of this page has been intentionally left blank.) 23

28 As of the date of this OFFICIAL STATEMENT, the Authority has outstanding the following lease revenue bonds under the Master Lease: Issued (On A Parity Basis) Under the Master Lease Original Current Principal Final Principal Series Purpose Amount Maturity Date Outstanding 2001A (1)... Refunding $34,240,000 October 1, 2017 $18,835, (1) (2)... Various purposes 91,970,000 October 1, 2009 (5) 3,945, (3)... Convention Center 57,050,000 October 1, (1) (4)... Riverbend golf refunding 7,835,000 October 1, ,605,000 Total principal amount of Master Lease Bonds... $25,385,000 The other series of bonds issued by the Authority, as listed below under the caption Issued Under Separate Stand Alone Legal Documents, are not issued on a parity basis with the bonds issued under the Master Lease. Issued Under Separate Stand Alone Indenture Original Current Principal Final Principal Series Purpose Amount Maturity Date Outstanding 2002 (6)... Office Building (Ambassador) $13,390,000 June 1, 2027 $11,299,000 Total principal amount of other bonds... $11,299,000 Summary Total principal amount of Master Lease Bonds outstanding (7)... $25,385,000 Total principal amount of Authority s other bonds outstanding... 11,299,000 Total (7)... $36,684,000 (1) Rated AA by Fitch; Aa1 by Moody s; and AA+ by S&P, as of the date of this OFFICIAL STATEMENT. (2) Portions of this bond issue have been refunded by the County s Series 2004 General Obligation Bonds. (3) These bonds are included in this table because the final principal and interest payments occurred within Fiscal Year See Debt Service Schedule Of Outstanding Municipal Building Authority Of Salt Lake County, Utah Lease Revenue Bonds By Fiscal Year below. (4) This bond issue is insured by AMBAC Assurance Corporation. (5) Final maturity date after portions of this issue were refunded by the County s Series 2004 General Obligation Bonds. (6) This issue was sold through a private placement. The bonds were not rated and no rating was applied for. Principal of and interest on this bond is being paid from base rental revenues, which revenues are being paid by the University of Utah. (7) For accounting purposes, the net unamortized premium was $52,598 and the total deferred amount was $349,192 (as of December 31, 2008) and together with current outstanding lease revenue debt of $36,684,000, results in total outstanding net debt of $36,387,406. (The remainder of this page has been intentionally left blank.) 24

29 Debt Service Schedule Of Outstanding Municipal Building Authority Of Salt Lake County Lease Revenue Bonds By Fiscal Year Fiscal Year Ending December 31 Issued under Master Lease (1) Series 2001A Series 1999 Series 1998 Series 1997 Totals $34,240,000 $91,970,000 $57,050,000 $7,835,000 Total Total Total Debt Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest Service 2008 $ 5,700,000 $ 1,183,474 $ 3,750,000 $ 413,850 $ 4,175,000 $ 208,750 $ 580,000 $ 155,803 $ 14,205,000 $ 1,961,877 $ 16,166, ,985, ,724 3,945, , (3) 605, ,803 10,535,000 1,246,502 11,781, ,475, , (3) 0 0 (3) 635,000 98,065 7,110, ,539 7,826, , , (3) 0 0 (3) 665,000 67,585 1,460, ,809 1,834, , , (3) 0 0 (3) 700,000 35,000 1,535, ,449 1,841, , , (3) 0 0 (3) 870, ,830 1,102, , , (3) 0 0 (3) 905, ,940 1,096, ,000 (2) 148, (3) 945, ,500 1,093, ,000 (2) 101, (3) 990, ,250 1,091, ,035,000 (2) 51, (3) 1,035,000 51,750 1,086, (3) (3) (3) (3) Totals $ 24,535,000 $ 4,009,615 $ 7,695,000 $ 630,825 $ 4,175,000 $ 208,750 $ 3,185,000 $ 483,256 $ 39,590,000 $ 5,332,446 $ 44,922,446 (1) These bonds are issued on a parity basis under the Master Lease and are not issued on a parity with the Authority s other outstanding lease revenue obligations. (2) Mandatory sinking fund principal payments on a $2,970, % term bond due October 1, (3) Principal and interest have been refunded by the County s Series 2004 General Obligation Bonds. 25

30 Debt Service Schedule Of Outstanding Municipal Building Authority Of Salt Lake County Lease Revenue Bonds By Fiscal Year continued Fiscal Year Ending December 31 Issued as a Stand Alone Lease (1) Total All Lease Revenue Series 2002 Total Totals $13,390,000 Debt Total Total Total Debt Principal Interest Service Principal Interest Service 2008 $ 360,000 $ 618,418 $ 978,418 $ 14,565,000 $ 2,580,295 $ 17,145, , , ,246 10,914,000 1,845,748 12,759, , , ,047 7,509,000 1,295,586 8,804, , , ,770 1,881, ,579 2,813, , , ,337 1,979, ,786 2,820, , , ,693 1,337, ,523 2,081, , , ,787 1,397, ,727 2,075, , , ,566 1,463, ,066 2,072, , , ,977 1,535, ,227 2,069, , , ,915 1,610, ,665 2,065, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,000 61, , ,000 61, , ,000 12, , ,000 12, ,545 Totals $ 11,846,000 $ 7,239,012 $ 19,085,012 $ 51,436,000 $ 12,571,458 $ 64,007,458 (1) These bonds are not issued on a parity basis with any other lease revenue bonds of the Authority and are secured by a separate and distinct indenture of trust and pledge, lease and security documents. 26

31 Overlapping And Underlying General Obligation Debt Entity s 2009 County s County s General County s Taxable Portion of Tax- Per- Obligation Portion of Taxing Entity Value (1) able Value centage Debt G.O. Debt Overlapping: State of Utah... $203,723,488,560 $73,734,383, % $1,317,130,000 $ 476,801,060 CUWCD (2) ,814,769,061 73,734,383, ,863,213 95,825,687 Total Overlapping ,626,747 Underlying: Jordan School District (3)... 13,371,489,595 13,371,489, ,015, ,015,000 Salt Lake City... 18,496,554,843 18,496,554, ,930,000 76,930,000 Salt Lake City School District... 18,494,513,772 18,494,513, ,538, ,538,722 Sandy City... 6,561,127,128 6,561,127, ,770,000 1,770,000 Draper City (4)... 3,547,815,093 3,178,842, ,925,000 5,308,800 Murray City School District... 3,034,912,700 3,034,912, ,515,000 20,515,000 Sandy Suburban Imp. District... 3,101,255,800 3,101,255, ,535,000 12,535,000 Oquirrh Recreation and Parks... 2,345,849,399 2,345,849, ,425,000 1,425,000 Cottonwood Heights Parks and Rec.... 1,947,574,553 1,947,574, ,275,000 4,275,000 Midvale City... 1,622,487,560 1,622,487, ,515,000 3,515,000 White City Water Imp. District (5) ,233, ,233, ,755,000 0 Total Underlying ,827,522 Total Overlapping and Underlying General Obligation Debt... $1,124,454,269 Total Overlapping General Obligation Debt (excluding the State) (6)... $ 95,825,687 Total Direct General Obligation Bonded Indebtedness (7) ,440,000 Total Direct and Overlapping General Obligation Debt (excluding the State)... $273,265,687 This table excludes any additional principal amounts attributable to unamortized original issue bond premium and deferred amount on refunding. (1) 2009 taxable values are preliminary and subject to change. Taxable value used in this table excludes the taxable value used to determine uniform fees on tangible personal property. See FINANCIAL INFORMATION RE- GARDING SALT LAKE COUNTY, UTAH Taxable, Fair Market And Market Value Of Property below. (2) Central Utah Water Conservancy District ( CUWCD ) outstanding general obligation bonds are limited ad valorem tax bonds. Certain portions of the principal of and interest on CUWCD s general obligation bonds are paid from sales of water. (3) In July 2009, the Canyons School District was created by a division from the Jordan School District. Outstanding debt will be shared between the two school districts. For purposes of this OFFICIAL STATEMENT all outstanding debt will be considered within Jordan School District. (4) Includes portions of the city located in Utah County. (5) The County s portion of overlapping general obligation debt does not include general obligation debt expected to be paid from other revenue sources. (6) The State s general obligation debt is not included in overlapping debt because the State currently levies no property tax for payment of its general obligation bonds. (7) Does not include general obligation debt of the County expected to be paid from other revenue sources. 27

32 Debt Ratios The following table sets forth the ratios of general obligation debt (excluding any additional principal amounts attributable to unamortized original issue bond premium and deferred amount on refunding) that is expected to be paid from taxes levied specifically for such debt and not from other revenues over the taxable value of property within the County, the estimated market value of such property and the population of the County. The State s general obligation debt is not included in the debt ratios because the State currently levies no property tax for payment of general obligation debt. To 2009 To 2009 To 2008 Estimated Estimated Population Taxable Market Estimate Per Value (1) Value (2) Capita (3) Direct General Obligation Debt (4) % 0.17% $174 Direct and Overlapping General Obligation Debt (1) Based on an estimated 2009 Taxable Value of $73,734,383,183, which value excludes the taxable value used to determine uniform fees on tangible personal property. (2) Based on an estimated 2009 Market Value of $106,679,016,305, which value excludes the taxable value used to determine uniform fees on tangible personal property. (3) Based on July 1, 2008 population estimate of 1,022,651 by the U. S. Census Bureau. (4) Based on outstanding direct general obligation debt of $177,440,000 (excluding general obligation debt expected to be paid from other revenue sources). See FINANCIAL INFORMATION REGARDING SALT LAKE COUNTY, UTAH Property Tax Matters Uniform Fees and Taxable, Fair Market And Market Value Of Property below. General Obligation Legal Debt Limit And Additional Debt Incurring Capacity The general obligation indebtedness of the County is limited by State law to 2% of the fair market value of taxable property in the County. The legal debt limit and additional debt incurring capacity of the County are based on the fair market value for 2008 and the calculated valuation from 2008 uniform fees, and are calculated as follows: 2008 Fair Market Value... $120,270,938, Valuation from Uniform Fees (1)... 4,455,058, Fair Market Value for Debt Incurring Capacity... $124,725,997,123 Fair Market Value for Debt Incurring Capacity times 2% equals (the Debt Limit )... $2,494,519,942 Less: Currently Outstanding General Obligation Debt (net) (2)... (268,348,058) Additional Debt Incurring Capacity... $2,226,171,884 (1) For debt incurring capacity only, in computing the fair market value of taxable property in the County, the value of all motor vehicles and state assessed commercial vehicles (which value is determined by dividing the uniform fee revenue by 1.5%) will be included as a part of the fair market value of the taxable property in the County. See FINANCIAL INFORMATION REGARDING SALT LAKE COUNTY, UTAH Property Tax Matters Uniform Fees below. (2) For accounting purposes, the net unamortized premium was $4,652,242 and the net deferred amount was $5,069,184 (as of December 31, 2008), and together with current outstanding direct debt of 268,765,000, results in total outstanding net direct debt of $268,348,

33 No Defaulted Obligations The County has never failed to pay principal of and interest on its bond obligations when due. FINANCIAL INFORMATION REGARDING SALT LAKE COUNTY, UTAH Fund Structure; Accounting Basis The government wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business type activities, which rely to a significant extent on fees charged to external parties for goods or services. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The remaining governmental and enterprise funds are combined into a single column and reported as other (nonmajor) funds. Internal service funds are aggregated and reported in single column on the proprietary fund financial statements. Revenues and expenditures are recognized using the modified accrual basis of accounting in the governmental fund statements. Revenues are recognized in the accounting period in which they become both measurable and available. Measurable means that amounts can be reasonably determined within the current period. Available means that amounts are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Revenues on cost reimbursement grants are accrued when the related expenditures are incurred. In the proprietary fund statements and the government wide statements, revenues and expenses are recognized using the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and become measurable, and expenses are recognized in the period incurred. Budgets And Budgetary Accounting The budget and appropriation process of the County is governed by the Uniform Fiscal Procedures Act for Counties (the Fiscal Procedures Act ). Pursuant to the Fiscal Procedures Act, the budget officer of the County is required to prepare budgets for the general fund, special revenue funds, debt service funds, capital project funds and proprietary funds. These budgets are to provide a complete financial plan for the budget (ensuing fiscal) year. Each budget is required to specify, in tabular form, estimates of anticipated revenues and appropriations for expenditures. Under the Fiscal Procedures Act, the total of anticipated revenues must equal the total of appropriated expenditures. On or before November 1 of each year, the budget officer is required to submit to the County Mayor tentative budgets for all funds for the fiscal year commencing January 1. Various actual and estimated budget data are required to be set forth in the tentative budgets. In preparing the tentative budget, the budget officer may recommend modifications to the budget requests submitted by the heads of County departments, and file these submissions and any recommendations with the County Mayor together with the tentative budget. The budget officer is required to estimate in the tentative budget the revenue from non property tax sources available for each fund and the revenue from general property taxes required by each fund. After the tentative budget is completed, the County Mayor may make adjustments to this budget in preparing the proposed budget. The County Mayor submits the proposed budget to the 29

34 County Council which then makes appropriation decisions. The recommended final budget is then tentatively adopted by the County Council, with any amendments or revisions the County Council deems advisable prior to a public hearing. If the County proposes to budget an increased amount of property tax revenue exclusive of revenues from new growth, the County Council shall comply with the certain notice and hearing requirements contained in the Property Tax Act, Chapter 2, Title 59, Utah Code (the Property Tax Act ) in adopting the budget. See in this section Tax Levy And Collection and Public Hearing On Certain Tax Increases below. After public notice and hearing, the final budget is adopted by the County Council, subject to further amendment or revisions by the County Council prior to adoption of the final budget. Once the final budget is adopted by the County Council, the County Mayor may veto a line item in the final budget. Budget items vetoed by the County Mayor may be overridden by the County Council. On or before December 31 in each year, the final budgets for all funds are adopted by the County Council. The Fiscal Procedures Act prohibits the County Council from making any appropriation in the final budget of any fund in excess of the estimated expendable revenue of such fund. The adopted final budget is subject to amendment by the County Council during the fiscal year. However, in order to increase the budget of the general fund, public notice and hearing must be provided. To increase the budget of funds, other than the general fund, public notice must be provided. Adoption of Ad Valorem Tax Levy. The legislative body of each taxing entity shall, before June 22 of each year, adopt a proposed, or, if the tax rate is not more than the certified tax rate, a final, tax rate for the taxing entity. The legislative body shall report the rate and levy, and any other information prescribed by rules of the Utah State Tax Commission for the preparation, review, and certification of the rate, to the county auditor of the county in which the taxing entity is located. If the legislative body intends to adopt a tax rate that exceeds the certified tax rate, the legislative body must comply with the Property Tax Act in adopting the rate. See FINANCIAL INFORMATION REGARDING SALT LAKE COUNTY Tax Levy And Collection, Public Hearing On Certain Tax Increases, and Property Tax Matters below. Net Assets or Fund Balance. A county may accumulate net assets in any enterprise or internal service fund or a fund balance in any other fund; but with respect to the general fund, its use shall be restricted to the following purposes: (i) to provide cash to finance expenditures from the beginning of the budget period until general property taxes, sales taxes, or other revenues are collected; (ii) to provide a fund or reserve to meet emergency expenditures; and (iii) to cover unanticipated deficits for future years. The maximum accumulated unappropriated surplus in the general fund, as determined prior to adoption of the tentative budget, may not exceed an amount equal to the greater of: (a) for a county with a taxable value of $750 million or more and a population of 100,000 or more (the County falling within this parameter), 20% of the total revenues of the general fund for the current fiscal period; or (b) for any other county, 50% of the total revenues of the general fund for the current fiscal period; and the estimated total revenues from property taxes for the current fiscal period. Any surplus balance in excess of the above computed maximum shall be included in the estimated revenues of the general fund budget for the next fiscal period and any fund balance exceeding 5% of the total general fund revenues may be used for budgetary purposes or may be placed into a Disaster Recovery Fund established by the County. Financial Controls The County utilizes a computerized financial accounting system which includes a system of budgetary controls. State law requires budgets to be controlled by individual departments, but the County has also empowered the County Auditor to maintain control by major categories within departments. These controls are such that a requisition will not be entered into the purchasing system unless the appropriated funds are available. The County Auditor checks for sufficient funds again prior to the purchase order being issued and again before the payment check is issued. Voucher payments are also controlled by the County Auditor for sufficient appropriations. 30

35 Financial Management The County Auditor is an independently elected officer, and is statutorily empowered with certain financial duties and powers. These responsibilities include auditing, responsibilities as finance officer and County budget officer, and certain duties relating to the operation of the property tax system. The County Auditor is responsible for revenue projections and the preparation of a tentative budget, which is presented to the County Mayor who then prepares the proposed budget. See in this section Budgets And Budgetary Accounting above. The County Council has adopted financial goals and policies which formalize the County s commitment to financial best practice and compliance with relevant statutory and ordinance requirements. The financial goals and policies address the key financial operations of the County in the following areas: (i) operating and capital budgeting; (ii) debt issuance; (iii) revenues; (iv) minimum reserves; (v) investments; and (vi) accounting, financial reporting, and auditing. The County s most significant financial management policies including: (i) a county wide cost allocation plan; (ii) a long range budget and planning process which projects revenues, budgets, and minimum fund balances three years into the future; and (iii) the creation of a Debt Review Committee, consisting of eight representatives (two from the County Auditor, one from the County Treasurer, one from the District Attorney, two from the County Mayor, and two representatives from the County Council) which reviews all forms of debt requests, and forwards its recommendations to the County Council. Reserves (Undesignated Fund Balances). The County has a policy of maintaining minimum fund balance reserves or rainy day funds. These undesignated fund balances for the indicated County s funds are summarized as follows (dollars are in thousands): Minimum Annual 2009 Ending Balance For December 31 (in $1,000) Budget Budget Fund Reserves 2009 (1) County wide (2)... $24,902 $40,439 $39,241 $49,801 $66,249 $62,020 $64,813 % change over previous year... (21.2)% (24.8)% 6.8% (4.3)% 22.4% Municipal services... $3,448 $3,793 $7,581 $20,587 $26,008 $18,826 $21,429 % change over previous year... (63.2)% (20.8)% 38.1% (12.1)% 5.2% Library... $1,517 $8,551 $5,633 $9,805 $8,989 $8,314 $10,676 % change over previous year... (42.5)% 9.1% 8.1% (22.1)% 36.7% (1) Projected and undesignated ending fund balances for 2009 are budgeted as of July These budgets are based on the latest information available and are subject to change. (2) Includes general fund, capital improvement, flood, health, governmental immunity, and planetarium undesignated fund balances. (Source: County Auditor.) 31

36 The undesignated fund balances for the County s proprietary funds are summarized as follows (dollars are in thousands): Ending Balance For December 31 (in $1,000) Fund Internal service funds (1)... $38,368 $45,667 $42,991 $39,504 $37,486 % change over previous year. (16.0) 6.2% 8.8% 5.4% 19.7% Enterprise funds (2)... $31,824 $33,563 $35,563 $41,815 $43,740 % change over previous year. (5.2) (5.6)% (15.0)% 4.4% (7.7)% (1) The governmental immunity fund is not included in the internal service funds because it is included in the County wide reserves above. (2) Enterprise funds include golf courses, sanitation and solid waste funds. (Source: County Auditor.) See in this section County s Discussion And Analysis Of Financial Condition And Results Of Operations Fund Balances below. Capital Planning Process. The County employs a facilities management staff to annually review and assess the County s buildings and physical plant for capital maintenance/project needs. Facilities management staff compiles the data, which is presented to the Capital Projects Committee, to prioritize all project and maintenance needs of the County within appropriations set by the County Council. Previously identified but unfunded capital projects and maintenance needs are reviewed and reprioritized in subsequent years along with all newly identified capital project and maintenance needs. Capital Projects Revolving Fund. The County utilizes a Capital Projects Revolving Fund to provide an internal mechanism for carrying out capital purchases. Moneys borrowed from the Capital Projects Revolving Fund are to be repaid at a rate equal to the County Treasurer s monthly net yield. The Capital Projects Revolving Fund also provides a mechanism for pay as you go projects. The Capital Projects Revolving Fund allows for interest earning deposits to reduce the principal amount required to fund various capital projects. County s Discussion And Analysis Of Financial Condition And Results Of Operations General. The County is the seat of the State s capitol and is at the economic heart of the State. The County is a residential, commercial, and industrial area lying at the foot of the Wasatch Mountains. This Wasatch front area (the counties of Weber, Davis, Salt Lake, Tooele and Utah) runs from Ogden City in Weber County to the north 120 miles south to Payson City in Utah County. Approximately 78% of the population of the State lives in this area. Fund Balances. Due to decreased revenues and certain cost control measures, the undesignated fund balance in the General Fund at the end of the Fiscal Year 2008 is $22.8 million which is below the Fiscal Year 2007 amount of $31.3 million. This decrease is primarily attributable to declining sales tax revenue. The County has established a minimum reserve goal of 10% of budgeted expenditures in the General Fund. This 10% minimum reserve goal was exceeded in Fiscal Years 2001 through The County expects the minimum reserve goal to again be exceeded in Fiscal Year Property Tax Collections. For Fiscal Years 2000 through 2008, property tax revenues in the General Fund have increased each year. For Fiscal Year 2008, revenue collections have increased 0.3% in comparison with the prior year. Property tax revenues are projected to comprise approximately 43% of current 32

37 year revenues in the General Fund for Fiscal Year Total budgeted property tax revenues in Fiscal Year 2009 for the General Fund are $94.6 million. The County projects that property tax revenues will be flat in Fiscal Year Sales Tax Collections. County option sales tax revenues in the County decreased significantly in the General Fund during Fiscal Year 2008, after increases in Fiscal Year 2005, 2006, and More specifically, sales tax revenues decreased 5.7% from Fiscal Year 2007 to Fiscal Year The County has received sales tax revenues for the first six months of Fiscal Year The County has experienced significant sales tax revenue decline during this period in comparison with the same six month period of the prior year. For the first six months of Fiscal Year 2009, revenues are down 12.4% over the same period in Fiscal Year Revenues are projected to decrease approximately 8.7% in Fiscal Year Recent re interpretation of existing statues by the Utah State Tax Commission regarding local option sales tax distributed to the County has been reduced by approximately $750,000 in Fiscal Year 2009 and will continue through Fiscal Year Capital. The County maintains a Capital Projects Revolving Fund for the purpose of accumulating funds for capital projects financed on a pay as you go basis, and for accounting for the costs of constructing these projects. Based on the County s audited financial statements for Fiscal Year 2008, the ending unreserved fund balance for this fund is $15.2 million. The majority of cash on deposit in this fund has been designated for specific projects and has been accumulated from pre payments for specific projects. Projects financed in prior years in this fund include recreation and park projects, construction of new libraries, and construction of a new health clinic. The administration of the County prepared a narrative discussion, overview, and analysis of the financial activities of the County for Fiscal Year For the complete discussion see APPENDIX A BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION FOR FIS- CAL YEAR 2008 Management s Discussion and Analysis (after the Independent Auditor s Report). Sources Of General Fund Revenues (Excludes Other Governmental Funds) Set forth below are brief descriptions of the various sources of revenues available to the County s general fund. The percentage of total General Fund revenues represented by each source is based on the County s audited Fiscal Year 2008 period (total general fund revenues was $211,242,526). Taxes Approximately 68% (or $143,759,166) of general fund revenues are from taxes (general property taxes approximately 46% (or $97,186,640); sales taxes approximately 22% (or $46,532,140); and tax increment taxes less than 1% (or $40,386)). Charges for Services Approximately 10% (or $21,242,655) of general fund revenues are from charges for services. Interfund charges Approximately 10% (or $21,372,138) of general fund revenues are collected from interfund charges. Intergovernmental and Grant Revenue Approximately 5% (or $10,510,708) of general fund revenues are from federal and State shared revenues. Licenses and Permits Approximately 4% (or $9,000,673) of general fund revenues are collected from licenses and permits. Interest, rents, and concessions Approximately 1% (or $2,949,404) of general fund revenues are collected from interest, rents and concessions. 33

38 Fines and Forfeitures, and Other Approximately 1% (or $2,407,782) of general fund revenues are collected from fines, forfeitures and other sources. Financial Summaries The summaries contained herein were extracted from the County s audited basic financial statements and required supplementary information. The summaries themselves are unaudited. See FINANCIAL INFORMATION REGARDING SALT LAKE COUNTY, UTAH County s Discussion And Analysis Of Financial Condition And Results Of Operations above and APPENDIX A BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION FOR FISCAL YEAR The County s annual financial report for Fiscal Year 2009 must be completed under State law by June 30, (The remainder of this page has been intentionally left blank.) 34

39 Salt Lake County Statement of Net Assets (This summary has not been audited) As of December (1) Assets Cash and investments: Pooled cash and investments $ 201,385,515 $ 231,708,445 $ 244,148,375 $ 230,790,435 $ 231,891,681 Restricted cash and investments 86,035, ,629,078 53,977,665 91,182,906 45,633,176 Other cash. 3,020,000 1,267,299 1,943,645 1,495,817 3,906,658 Receivables: Taxes receivable 30,652,895 36,075,292 36,609,302 30,907,045 30,329,596 Due from other governments 15,898,631 16,092,625 15,474,662 16,104,873 12,445,974 Accrued revenue 8,188,843 5,446,423 4,085,883 4,423,517 2,941,939 Other receivables 21,682,553 82,229,854 83,120,294 79,389,148 74,835,339 Allowance for uncollectible accounts (57,368,139) (57,368,139) (57,368,139) (57,368,139) Inventory.. 640,031 1,219,584 1,177, , ,135 Investment in joint ventures 22,892,110 22,124,353 22,311,315 21,342,226 25,992,644 Restricted deposit 34,710 3,149,112 3,177,721 3,482,000 4,683,000 Other assets 73,261 7,435,992 7,290,791 3,480,745 2,066,422 Bond issuance costs, net of accumulated amortization 1,344,371 Capital assets: Land, roads, and construction in progress 375,337, ,896, ,341, ,788, ,750,428 Buildings, improvements, equipment and other depreciable assets net of accumulated depreciation 623,379, ,679, ,144, ,392, ,999,307 Total assets 1,390,565,232 1,432,585,509 1,362,435,479 1,342,997,489 1,344,815,160 Liabilities: Accounts payable 20,012,082 25,427,334 21,626,708 25,188,995 23,199,847 Accrued expenses 25,137,685 Accrued interest 2,507,675 Unearned revenue 18,159 Accrued liabilities 42,861,272 46,918,941 44,582,003 41,703,357 Deferred revenue 1,528,176 75,212 93, ,026 Bonds, notes and leases payable 30,632,400 24,923,750 29,545,800 28,762,232 Compensated absences... 9,436,352 9,238,935 9,163,362 9,253,655 Long term liabilities: Portion due or payable within one year 43,447,106 Portion due or payable after one year 374,683,316 Bonds, notes and leases payable 347,194, ,918, ,021, ,159,025 Net OPEB obligation... 8,145,953 Compensated absences... 9,963,678 9,675,143 8,223,322 7,554,220 Total liabilities 465,806, ,189, ,376, ,819, ,852,362 Net Assets: Invested in capital assets, net of related debt 691,370, ,093, ,586, ,182, ,434,607 Restricted for: Capital improvements.. 31,132,410 86,874,696 2,120,984 2,205,476 1,419,998 Debt service.. 25,384,537 15,606,344 Housing.. 24,215,179 Roads.. 5,409,186 Library.. 5,864,035 Health.. 5,894,536 3,149,112 3,177,721 3,482,000 4,683,000 Convention and tourism.. 19,317,776 Municipal services.. 11,823,471 Other purposes.. 15,626,698 Drug and alcohol enforcement/services.. 1,034,078 1,025, , ,827 Contractual obligations 290, , ,000 Judgment levies 323, , , ,543 Revolving loans.. 2,867,115 3,571,435 3,846,159 3,921,523 Unrestricted... 88,720, ,157, ,948, ,367, ,849,300 Total net assets.. $ 924,759,209 $ 957,395,854 $ 937,058,628 $ 895,178,069 $ 935,962,798 (1) Due to changes in the County's accounting procedures, certain line item descriptions and related figures are not stictly comparable to those of prior years. (Source: Information extracted from the County s basic financial statements and required supplementary information which have been audited.) 35

40 Salt Lake County Statement of Activities (1) (This summary has not been audited) Net (Expense) Revenue and Changes in Net Assets Fiscal Year Ended December Primary government Governmental activities: General government $ (13,055,174) $ (8,152,598) $ (11,710,948) $ (76,264,418) $ (6,132,386) Public safety and criminal justice (156,409,072) (154,968,113) (133,644,680) (126,507,401) (131,896,305) Social services (29,781,894) (28,628,637) (22,966,620) (19,902,970) (21,484,327) Education, recreation, and cultural (94,867,791) (92,898,042) (84,091,671) (69,901,939) (78,092,251) Health and regulatory (16,794,839) (13,367,212) (11,855,940) (12,230,360) (10,593,940) Public works..... (12,194,210) (3,433,897) 357,429 (5,910,688) (6,221,884) Tax administration (19,435,011) (15,634,894) (15,238,609) (15,856,781) (14,537,694) Interest on long term debt (17,200,554) (16,420,887) (16,494,525) (16,077,583) (13,199,085) Total governmental activities (359,738,545) (333,504,280) (295,645,564) (342,652,140) (282,157,872) Business type activities: Golf (927,374) (227,802) (267,463) (492,420) (557,625) Millcreek Canyon (76,614) 7,411 Sanitation 1,129,026 (884,274) (229,681) 1,482,807 (4,094,301) Solid Waste Management 1,481, , ,186 4,604, ,296 Total business type activities 1,683,031 (1,265,982) 496,042 (3,690,568) (3,659,219) Total county (358,055,514) (334,770,262) (295,149,522) (346,342,708) (285,817,091) General revenues: Taxes: Property taxes 187,875, ,497, ,980, ,317, ,041,505 Sales taxes 109,901, ,742, ,663, ,286,276 95,951,882 Franchise taxes 1,018, , , , ,523 Transient room taxes 14,372,704 15,615,048 12,419,989 9,873,342 8,910,397 Tax increment 115,158 56, ,023 1,296,747 2,149,139 Total taxes 313,283, ,852, ,173, ,556, ,929,446 Unrestricted investment earnings 8,994,759 16,103,435 12,856,269 8,001,381 4,498,449 Transfers 152,013 Total general revenues and transfers 322,278, ,107, ,030, ,557, ,427,895 Change in net assets (35,777,463) 20,337,226 41,880,559 (40,784,729) 9,610,804 Net assets beginning (restated) ,536, ,058, ,178, ,962, ,351,994 Net assets ending.. $ 924,759,209 $ 957,395,854 $ 937,058,628 $ 895,178,069 $ 935,962,798 (1) This report is presented in summary format concerning the single item of Net (Expense) Revenue and Changes in Net Assets and is not intended to be complete. For a detailed itemized report see APPENDIX A BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION FOR FISCAL YEAR 2008 Statement of Activities for Fiscal Year 2008 below. (Source: Information extracted from the County s basic financial statements and required supplementary information which have been 36

41 Salt Lake County Balance Sheet Summary General Fund (This summary has not been audited) Fiscal Year Ended December Assets Cash and investments: Pooled cash and investments $ 23,284,715 $ 29,790,243 $ 42,021,275 $ 42,879,143 $ 41,614,248 Restricted cash and investments 1,235,821 1,084,449 1,027,253 1,047, ,795 Other cash 444, , , , ,835 Receivables: Taxes receivable 13,689,321 15,425,467 16,268,876 13,301,144 12,993,430 Due from other governments 1,815,676 2,480,907 1,877,963 2,758,129 1,385,486 Accrued revenue 923, ,210 1,837, ,008 1,520,936 Other receivables (1). 212,857 57,889,603 57,865,059 57,661,005 57,700,362 Less allowance for uncollectible amounts (1) (57,368,139) (57,368,139) (57,368,139) (57,368,139) Due from other funds 1,726,400 9, , , ,398 Investment in joint ventures 85,837 86,504 88,592 74,137 79,104 Total assets $ 43,419,268 $ 50,625,973 $ 64,721,358 $ 62,182,261 $ 59,550,455 Liabilities and Fund Balances Liabilities: Accounts payable $ 3,967,900 $ 3,631,218 $ 3,881,764 $ 4,344,129 $ 3,831,737 Accrued expenditures 5,126,085 4,758,321 4,854,412 4,715,455 3,779,370 Due to other funds 1,409,006 1,234,423 1,164,736 1,074, ,209 Deferred revenue 5,382,020 5,223,558 3,836,212 4,481,028 4,196,200 Total liabilities 15,885,011 14,847,520 13,737,124 14,615,502 12,789,516 Fund balances: Reserved for: Encumbrances 2,433,140 2,209,469 2,562,019 2,435,600 1,427,088 Joint venture 85,837 86,504 88,592 74,138 79,105 Drug and vice enforcement 1,157, , , , ,056 Monument preservation 614, , , , ,739 Contractual obligations 26,742 40,000 55,417 25,000 Restricted contribution 32,335 Unreserved: Designated for: Capital improvements 144, , , ,762 83,502 Judgment levies 284, ,282 Special programs 741, , , ,032 Undesignated 22,787,879 31,325,280 46,828,220 43,609,967 44,194,082 Total fund balances 27,534,257 35,778,453 50,984,234 47,566,759 46,760,939 Total liabilities and fund balances $ 43,419,268 $ 50,625,973 $ 64,721,358 $ 62,182,261 $ 59,550,455 (1) The large receivable and allowance for uncollectible accounts represent jail billings to various municipalities within the County for housing their prisoners in the County jail. The municipalities do not pay the billings because they do not consider them to be legal obligations; therefore, the amount is fully reserved in the allowance for uncollectible accounts. The County Council has determined that there is valid reason to continue billing and carrying these amounts on the County s books. (Source: Information extracted from the County s basic financial statements and required supplementary information which have been audited.) 37

42 Salt Lake County Statement of Revenues, Expenditures and Changes in Fund Balance General Fund (This summary has not been audited) Fiscal Year Ended December Revenues: Taxes: General property taxes.. $ 97,186,640 $ 90,920,752 $ 89,202,799 $ 85,099,918 $ 84,427,532 Sales taxes 46,532,140 50,851,250 48,123,004 40,857,601 37,565,625 Tax increment 40,386 General property taxes prior years 2,451,711 3,082,158 3,025,077 3,244,102 Penalties and interest on delinquent taxes 1,457,157 1,596,696 1,602,217 1,915,391 Licenses and permits 9,000,673 9,145,518 8,944,629 8,800,615 8,775,279 Fines and forfeitures 1,988,956 2,204,508 2,272,206 2,169,352 1,077,684 Intergovernmental and grant revenue 10,510,708 10,535,023 10,070,586 10,606,643 9,327,895 Charges for services 21,242,655 20,469,832 20,013,583 18,682,046 18,052,337 Interest, rents, and concessions 2,949,404 3,338,263 2,917,334 1,154,575 1,286,716 Interfund charges 21,372,138 19,588,048 20,332,743 17,930,693 17,125,194 Other 418, , , , ,167 Total revenues 211,242, ,292, ,906, ,183, ,988,922 Expenditures: Current: General government 36,124,973 33,356,519 39,939,493 33,972,567 33,680,033 Public safety and criminal justice 137,570, ,904, ,262, ,008, ,094,503 Social services 886,589 1,026, , , ,620 Education, recreation, and cultural 37,724,366 35,880,618 34,644,953 31,403,982 30,944,293 Total expenditures 212,306, ,167, ,254, ,035, ,330,449 Excess (deficiency) of revenues over (under) expenditures (1,063,495) 16,124,879 22,651,406 19,148,381 17,658,473 Other financing sources (uses): Proceeds from sale of property 24,361 80,646 54, , ,983 Transfers in 26,834,780 9,034,474 11,879,239 3,716,364 6,710,916 Transfers out (34,061,000) (40,445,780) (31,167,753) (22,200,780) (20,450,591) Total other financing sources (uses), net (7,201,859) (31,330,660) (19,233,931) (18,342,561) (12,774,692) Net change in fund balance (8,265,354) (15,205,781) 3,417, ,820 4,883,781 Fund balance beginning of year (restated) 35,799,611 50,984,234 47,566,759 46,760,939 41,877,158 Fund balance end of year $ 27,534,257 $ 35,778,453 $ 50,984,234 $ 47,566,759 $ 46,760,939 (Source: Information extracted from the County s basic financial statements and required supplementary information which have been audited.) 38

43 Tax Levy And Collection The State Tax Commission must assess all centrally assessed property (as defined under Property Tax Matters below) by May 1 of each year. County assessors must assess all locally assessed property (as defined under Property Tax Matters below) before May 22 of each year. The State Tax Commission apportions the value of centrally assessed property to the defined taxing areas within each county and reports such values to county auditors before June 8. The governing body of each taxing entity must adopt a proposed tax rate or, if the tax rate is not more than the certified tax rate, a final tax rate before June 22. County auditors must forward to the State Tax Commission a statement prepared by the legislative body of each taxing entity showing the amount and purpose of each levy. Upon determination by the State Tax Commission that the tax levies comply with applicable law and do not exceed maximum permitted rates, the State Tax Commission notifies county auditors to implement the levies. If the State Tax Commission determines that a tax levy established by a taxing entity exceeds the maximum levy permitted by law, the State Tax Commission must lower the levy to the maximum levy permitted by law, notify the taxing entity that the rate has been lowered and notify the county auditor (of the county in which the taxing entity is located) to implement the rate established by the State Tax Commission. On or before July 22 of each year, the county auditors must mail to all owners of real estate shown on their assessment rolls notice of, among other things, the value of the property, itemized tax information for all taxing entities and the date their respective county boards of equalization will meet to hear appeals. Taxpayers owning property assessed by a county assessor may file an application within statutorily defined time limits based on the nature of the appeal with the appropriate county board of equalization for the purpose of appealing the assessed valuation of their property. The county board of equalization must render a decision on each appeal in the time frame prescribed by the Property Tax Act. Under certain circumstances, the county board of equalization must hold a hearing regarding the application, at which the taxpayer has the burden of proving that the property sustained a decrease in fair market value. Decisions of the county board of equalization may be appealed to the State Tax Commission, which must decide all appeals relating to real property by March 1 of the following year. Owners of centrally assessed property, or any county with a showing of reasonable cause, may, on or before the later of June 1 or a day within 30 days of the date the notice of assessment is mailed by the State Tax Commission, apply to the State Tax Commission for a hearing to appeal the assessment of centrally assessed property. The State Tax Commission must render a written decision within 120 days after the hearing is completed and all post hearing briefs are submitted. The county auditor makes a record of all changes, corrections and orders, and delivers before November 1 the corrected assessment rolls to the county treasurers. By November 1, each county treasurer furnishes each taxpayer a notice containing the kind and value of the property assessed to the taxpayer, the street address of the property, where applicable, the amount of the tax levied on the property and the date and year the property is subject to a detailed review. Taxes are due November 30, or if a Saturday, Sunday or holiday, the next business day. Each county treasurer is responsible for collecting all taxes levied on real property within that county. There are no prior claims to such taxes. As taxes are collected, each county treasurer must pay to the State and each taxing entity within the county its proportionate share of the taxes, on or before the tenth day of each month. Delinquent taxes are subject to a penalty of 2% of the amount of the taxes or $10, whichever is greater. Unless the delinquent taxes and penalty are paid before January 16 of the following year, the amount of delinquent taxes and penalty bears interest at the federal funds rate target established by the Federal Open Market Committee plus 6% from the January 1 following the delinquency date until paid. If delinquent taxes have not been paid by March 15 following the lapse of four years from the delinquency date, the affected county advertises and sells the property at a final tax sale held in May or June of the fifth year after assessment. The process described above changes if a county or other taxing entity proposes a tax rate in excess of the certified tax rate (as described under Public Hearing On Certain Tax Increases below). If such an increase is proposed, the taxing entity must adopt a proposed tax rate before June 22. In addition, the 39

44 county auditor must include certain information in the notices to be mailed by July 22, as described in the preceding paragraph, including information concerning the tax impact of the proposed increase on the property and the time and place of the public hearing described in Public Hearing On Certain Tax Increases below. In most cases, notice of the public hearing must also be advertised by publication. After the public hearing is held, the taxing entity may adopt a resolution levying a tax in excess of the certified tax rate. A resolution levying a tax in excess of the certified tax rate must be forwarded to the county auditor by August 17. The final tax notice is then mailed by November 1. Public Hearing On Certain Tax Increases Each taxing entity that proposes to levy a tax rate that exceeds the certified tax rate may do so, by resolution, only after holding a properly noticed public hearing. Generally, the certified tax rate is the rate necessary to generate the same property tax revenue that the taxing entity budgeted for the prior year, with certain exceptions. For purposes of calculating the certified tax rate, county auditors are to use the taxable value of property on the assessment rolls, exclusive of new growth. New growth is any increase in taxable value of the taxing entity from the previous calendar year to the current year less the amount of increase to locally assessed real property taxable values resulting from factoring, reappraisal, other adjustments, or changes in the method of apportioning taxable value. With certain exceptions, the certified tax rate for the minimum school levy, debt service voted on by the public, and certain state and county assessing and collecting levies are the actual levies imposed for such purposes and no hearing is required for these levies. Among other requirements, on or before July 22 of the year in which such an increase is proposed, the county auditor must mail to all property owners a notice of the public hearing. In most cases, the taxing entity must advertise the notice of public hearing by publication in a newspaper. Such notices must state, among other things, the value of the property, the time and place of the public hearing, and the tax impact of the proposed increase. Property Tax Matters The Property Tax Act provides that all taxable property is required to be assessed and taxed at a uniform and equal rate on the basis of its fair market value as of January 1 of each year, unless otherwise provided by law. Fair market value is defined in the Property Tax Act as the amount at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts. Pursuant to an exemption for residential property provided for under the Property Tax Act and Article XIII of the State Constitution, the fair market value of residential property is reduced by 45%. The residential exemption is limited to one acre of land per residential unit and to one primary residence per household, except that an owner of multiple residential properties may exempt his or her primary residence and each residential property that is the primary residence of a tenant. The Property Tax Act provides that the State Tax Commission shall assess certain types of property ( centrally assessed property ), including (i) properties that operate as a unit across county lines that must be apportioned among more than one county or state, (ii) public utility (including railroad) properties, (iii) airline operating properties, (iv) geothermal resources and (v) mines, mining claims and appurtenant machinery, facilities and improvements. All other taxable property ( locally assessed property ) is required to be assessed by the county assessor of the county in which such locally assessed property is located. Each county assessor must update property values annually based upon a systematic review of current market data. Each county assessor must also complete a detailed review of property characteristics for each parcel of property at least once every five years. The Property Tax Act requires that the State Tax Commission conduct an annual investigation in each county to determine whether all property subject to taxation is on the assessment rolls and whether the property is being assessed at its fair market value. 40

45 The State Tax Commission and the county assessors utilize various valuation methods, as determined by statute, administrative regulation or accepted practice, to determine the fair market value of taxable property. Uniform Fees. An annual statewide uniform fee is levied on tangible personal property in lieu of the ad valorem tax. The uniform fee is based on the value of motor vehicles, watercraft, recreational vehicles, and all other tangible personal property required to be registered with the State. The current uniform fee is established at 1.5% of the fair market value of motor vehicles that weigh 12,001 pounds or more, watercraft, recreational vehicles and all other tangible personal property required to be registered with the State, excluding exempt property such as aircraft and property subject to a fixed age based fee. Motor vehicles weighing 12,000 pounds or less and certain other vehicles are subject to an age based fee that is due each time the vehicle is registered. The revenues collected from the various uniform fees are distributed by the county to the taxing entity in which the property is located in the same proportion in which revenue collected from ad valorem real property is distributed. Property Tax Valuation Agency Fund. The State Legislature authorizes a multicounty assessing and collecting levy of up to per dollar of taxable value of taxable property to fund a Property Tax Valuation Agency Fund (the PTVAF ). The purpose of the multicounty assessing and collecting levy is to promote the accurate valuation of property, the establishment and maintenance of uniform assessment levels within and among counties, and the efficient administration of the property tax system, including the costs of assessment, collection and distribution of property taxes. Disbursement of money from the PTVAF to each county is based on statutory qualification and requirements. Additionally, each county must levy an additional property tax of at least per dollar of taxable value as a county assessing and collecting levy in order to receive funds from the PTVAF. If necessary, a county may levy an additional tax to fund (i) state mandated actions and (ii) reappraisal programs. Historical Tax Rates Property Tax Rate Maximum Limit General/Capital Improvement Bond Debt Service (1)... none Tax Administration Levy (2) Health Flood Control Fund... none Recreation Reappraisal... none Judgment Capital Improvements... none Government Immunity... none Total County wide Levy Municipal Services (3)... none Library (3) (1) Amount needed to pay current principal and interest on legally issued general obligation bonds is unlimited. (2) The State Tax Administration tax levy is a state wide levy determined by the Utah State Auditor and the State Tax Commission, with a maximum levy ceiling of where the tax revenue is distributed. Utah law allows counties individually to levy above for certain authorized purposes. (3) Not county wide. (Source: County Auditor.) 41

46 Comparative Tax Rates Total County Tax Rate County Summit County Utah County Tooele County Washington County (1) Wasatch County (1) Salt Lake County (1) Davis County (1) Cache County Weber County (1) (1) Excludes library fund tax rate. (Source: State Tax Commission.) (The remainder of this page has been intentionally left blank.) 42

47 Comparative Total Property Tax Rates Within The County This table only reflects those municipal entities and property tax rates within Salt Lake County, except as noted. Total Tax Rate Within Taxing Area Tax Levying Entity (1) Granite School District: Cottonwood Heights City(3) Holladay City Murray City (3) Salt Lake City (3) South Salt Lake City Taylorsville City (3) West Jordan City (3) West Valley City Jordan School District: Alta Town Bluffdale Town Cottonwood Heights City (3) Draper City(3) (4) Herriman City Midvale City Murray City (3) Riverton City Sandy City South Jordan City Taylorsville City (3) West Jordan City (3) Murray City School District: Murray City Salt Lake City School District: Salt Lake City Unincorporated areas (2): Granite School District Jordan School District Alpine School District (Utah County): Draper City (3) (4) (1) These tax rates represent a taxing district within the city or town with the highest combined total tax rates of all overlapping taxing districts. (2) These tax rates represent a taxing district within the unincorporated municipalities within the County with the highest combined total tax rates of all overlapping taxing districts. (3) These cities are within two school district boundaries. (4) A portion of the city is also located in Utah County. (Source: Reports from the State Tax Commission.) 43

48 Taxable, Fair Market And Market Value Of Property % Change % Change Taxable Over Fair Market/ Over Year Value Prior Year Market Value (1) Prior Year 2009 (2)... $73,734,383,183 (11.4)% $106,679,016,309 (11.3)% ,180,314, ,270,938, ,440,848, ,520,682, ,686,175, ,719,872, ,059,901, ,097,297, Includes redevelopment agency valuation. (1) Estimated fair market values were calculated by dividing the taxable value of primary residential property by 55%, which eliminates the 45% exemption on primary residential property granted under the Property Tax Act. See Property Tax Matters above. (2) Preliminary; subject to change. State Tax Commission. The estimated redevelopment agency valuation is approximately $4.57 billion. (The remainder of this page has been intentionally left blank.) 44

49 Historical Summaries Of Taxable Values Of Property Taxable % of Taxable Taxable Taxable Taxable Set by State Tax Commission Value (1) T.V. Value Value Value Value (Centrally Assessed) Total centrally assessed $ 5,122,958, % $ 6,181,404,977 $ 5,422,923,271 $ 4,782,240,197 $ 4,412,625,874 Set by County Assessor (Locally Assessed) Real property: Primary residential 40,200,000, ,267,322,229 42,812,321,683 34,204,218,820 29,316,345,306 Other residential 3,208,904, ,388,144,760 2,665,643,210 2,103,901,891 1,733,762,710 Commercial and industrial 20,440,000, ,576,078,400 21,184,740,580 17,733,953,600 14,838,453,270 FAA 7,000, ,998,833 2,137,270 91,649,790 53,549,180 Unimproved non FAA 75,000, ,543,785 75,640,020 7,002,960 3,097,170 Agricultural 8,000, ,301,070 9,412,290 9,181,910 9,071,270 Total real property 63,938,904, ,326,389,077 66,749,895,053 54,149,908,971 45,954,278,906 Personal property: Primary mobile homes 65,662, ,662,709 63,031,200 59,188,626 62,694,588 Secondary mobile homes 8,128, ,128,914 5,081,370 5,563,573 5,285,705 Other business personal 4,598,728, ,598,728,970 4,199,917,921 3,689,273,661 3,625,016,019 Total personal property 4,672,520, ,672,520,593 4,268,030,491 3,754,025,860 3,692,996,312 Total locally assessed 68,611,424, ,998,909,670 71,017,925,544 57,903,934,831 49,647,275,218 Total taxable value $ 73,734,383, % $ 83,180,314,647 $ 76,440,848,815 $ 62,686,175,028 $ 54,059,901,092 (1) Preliminary; subject to change. (Source: Property Tax Division, Utah State Tax Commission.) 45

50 Tax Collection Record The presentation of the tax collection record includes the following funds: General, Capital Improvements, Debt Service, Flood Control, Government Immunity, Health Services, Clark Planetarium, and Tax Administration Funds. (Excludes library fund and municipal Services Fund.) (4) Deliq., % of % of (1) Personal Current Total Tax (2) (3) Property Collec- Collec- Year Total Trea- Current and Miscel- Total tions to tions to End Taxes surer s Net Taxes Col- leous Col- Col- Net Taxes Net Taxes 12/31 Levied Relief Assessed lections lections lections Assessed Assessed 2008 $150,618,737 $754,087 $149,864,650 $143,760,422 $7,308,500 $151,068, % 100.8% ,579, , ,859, ,237,877 7,262, ,500, ,543, , ,805, ,311,559 7,708, ,019, ,316, , ,557, ,713,051 6,125, ,838, ,045, , ,448, ,732,164 7,850, ,582, (1) In addition to the Total Collections indicated above, the County also collected Uniform Fees (fees in lieu payments) for the funds as indicated in the preceding paragraph, for tax year 2008 of $12,473,452 for tax year 2007 of $12,573,735; for tax year 2006 of $12,607,926; for tax year 2005 of $12,590,772; and for tax year 2004 of $12,667,433; from tax equivalent property associated with motor vehicles, watercraft, recreational vehicles, and all other tangible personal property required to be registered with the State. (2) Excludes redevelopment agencies valuation. (3) Treasurer s Relief includes abatements established by statute to low income, elderly and for hardship situations. These Treasurer s Relief items are levied against the property, but are never collected and paid to the entity. (4) Delinquent Collections include interest, sales of real and personal property, and miscellaneous delinquent collections. (Source: Taken from tax collections reports as contained in the Comprehensive Annual Financial Report of the County for the indicated years.) (The remainder of this page has been intentionally left blank.) 46

51 Some Of The Largest Taxpayers % of the County s 2008 (1) 2008 Taxpayer Type of Business Taxable Value Tax Value Rio Tinto/Kennecott Utah Copper... Mining $3,123,506, % MidAmerican Energy Holdings (2)... Electric utility 959,351, Boyer Companies... Real estate/development 649,385, Corporation of Presiding Bishop of The Church of Jesus Christ of Latter day Saints (3)... Religious 616,758, Qwest/U.S. West Communications... Communications 430,842, Delta/Northwest Airlines... Transportation 414,991, Intermountain Health Care... Health care 352,267, Larry H Miller Group/Miller Family Real Estate (4)... Real estate/development 334,168, Wal Mart/Sam s Club.... Retail/real estate 287,489, Questar Corporation... Natural gas utility 256,221, Totals... $7,424,982, % (1) Taxable Value used in this table excludes the taxable value used to determine Uniform Fees on tangible personal property. See Taxable, Fair Market And Market Value Of Property above. (Source: County Auditor.) (2) Includes: Pacificorp; Rocky Mountain Power; Kern River Transmission. (Source: County Auditor) (3) Includes: Beneficial Development; Corporation of the President of The Church of Jesus Christ of Latter day Saints; Corporation of the Presiding Bishop of The Church of Jesus Christ of Latter day Saints; Deseret Management; Deseret Title Holding; Property Reserve; Zion s Securities. (Source: County Auditor.) (4) Car dealerships, sports teams, Energy Solutions arena, KJZZ, Fanzz Stores and Prestige Financial. (Source: County Auditor, Property Tax Division.) Absence Of Litigation LEGAL MATTERS The Deputy District Attorney, Dahnelle Burton Lee, has officially advised that, to her knowledge, there is no pending or threatened litigation that would legally stop, enjoin, or prohibit the issuance, sale or delivery of the 2009 Bonds or the levy or collection of taxes for the payment of the 2009 Bonds. Federal Income Tax Matters The 2009A Bonds Federal tax law contains a number of requirements and restrictions which apply to the 2009A Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements regarding the proper use of bond proceeds and the facilities financed therewith, and certain other matters. The County has covenanted to comply with all requirements that must be satisfied in order for the interest on the 2009A Bonds to be excludable from gross income for federal income tax purposes. Failure to comply with certain of such covenants could cause interest on the 2009A Bonds to become includable in gross income for federal income tax purposes retroactively to the date of issuance of the 2009A Bonds. 47

52 Subject to the County s compliance with the above referenced covenants, under present law, in the opinion of Bond Counsel, interest on the 2009A Bonds (a) is excludable from the gross income of the owners thereof for federal income tax purposes, (b) is not included as an item of tax preference in computing the federal alternative minimum tax for individuals and corporations, and (c) is not taken into account in computing adjusted current earnings as described below. In rendering its opinion, Bond Counsel will rely upon certifications of the County with respect to certain material facts within the County s knowledge. Bond Counsel s opinion represents its legal judgment based upon its review of the law and the facts that it deems relevant to render such opinion and is not a guarantee of a result. The Internal Revenue Code of 1986, as amended (the Code ), includes provisions for an alternative minimum tax ( AMT ) for corporations in addition to the corporate regular tax in certain cases. The AMT, if any, depends upon the corporation s alternative minimum taxable income ( AMTI ), which is the corporation s taxable income with certain adjustments. One of the adjustment items used in computing the AMTI of a corporation (with certain exceptions) is an amount equal to 75% of the excess of such corporation s adjusted current earnings over an amount equal to its AMTI (before such adjustment item and the alternative tax net operating loss deduction). Adjusted current earnings would generally include certain tax exempt interest, but not interest on the 2009A Bonds. Ownership of the 2009A Bonds may result in collateral federal income tax consequences to certain taxpayers, including, without limitation, corporations subject to the branch profits tax, financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase or carry tax exempt obligations. Prospective purchasers of the 2009A Bonds should consult their tax advisors as to applicability of any such collateral consequences. The issue price (the Issue Price ) for each maturity of the 2009A Bonds is the price at which a substantial amount of such maturity of the 2009A Bonds is first sold to the public. The Issue Price of a maturity of the 2009A Bonds may be different from the price set forth, or the price corresponding to the yield set forth, on the cover page hereof. If the Issue Price of a maturity of the 2009A Bonds is less than the principal amount payable at maturity, the difference between the Issue Price of each such maturity, if any, of the 2009A Bonds (the OID 2009A Bonds ) and the principal amount payable at maturity is original issue discount. For an investor who purchases an OID 2009A Bond in the initial public offering at the Issue Price for such maturity and who holds such OID 2009A Bond to its stated maturity, subject to the condition that the County complies with the covenants discussed above, (a) the full amount of original issue discount with respect to such OID 2009A Bond constitutes interest which is excludable from the gross income of the owner thereof for federal income tax purposes; (b) such owner will not realize taxable capital gain or market discount upon payment of such OID 2009A Bond at its stated maturity; (c) such original issue discount is not included as an item of tax preference in computing the alternative minimum tax for individuals and corporations under the Code; (d) such original issue discount is not taken into account in computing an adjustment used in determining the alternative minimum tax for certain corporations under the Code as described above; and (e) the accretion of original issue discount in each year may result in an alternative minimum tax liability for corporations or certain other collateral federal income tax consequences in each year even though a corresponding cash payment may not be received until a later year. Owners of OID 2009A Bonds should consult their own tax advisors with respect to the state and local tax consequences of original issue discount on such OID 2009A Bonds. Owners of 2009A Bonds who dispose of 2009A Bonds prior to the stated maturity (whether by sale, redemption or otherwise), purchase 2009A Bonds in the initial public offering, but at a price different 48

53 from the Issue Price or purchase 2009A Bonds subsequent to the initial public offering should consult their own tax advisors. If a 2009A Bond is purchased at any time for a price that is less than the 2009A Bond s stated redemption price at maturity or, in the case of an OID 2009A Bond, its Issue Price plus accreted original issue discount (the Revised Issue Price ), the purchaser will be treated as having purchased a 2009A Bond with market discount subject to the market discount rules of the Code (unless a statutory de minimis rule applies). Accrued market discount is treated as taxable ordinary income and is recognized when a 2009A Bond is disposed of (to the extent such accrued discount does not exceed gain realized) or, at the purchaser s election, as it accrues. Such treatment would apply to any purchaser who purchases an OID 2009A Bond for a price that is less than its Revised Issue Price. The applicability of the market discount rules may adversely affect the liquidity or secondary market price of such 2009A Bond. Purchasers should consult their own tax advisors regarding the potential implications of market discount with respect to the 2009A Bonds. An investor may purchase a 2009A Bond at a price in excess of its stated principal amount. Such excess is characterized for federal income tax purposes as bond premium and must be amortized by an investor on a constant yield basis over the remaining term of the bond in a manner that takes into account potential call dates and call prices. An investor cannot deduct amortized bond premium relating to a tax exempt bond. The amortized bond premium is treated as a reduction in the tax exempt interest received. As bond premium is amortized, it reduces the investor s basis in the 2009A Bond. Investors who purchase a 2009A Bond at a premium should consult their own tax advisors regarding the amortization of bond premium and its effect on the 2009A Bond s basis for purposes of computing gain or loss in connection with the sale, exchange, redemption or early retirement of the 2009A Bond. There are or may be pending in the Congress of the United States legislative proposals, including some that carry retroactive effective dates, that, if enacted, could alter or amend the federal tax matters referred to above or affect the market value of the 2009A Bonds. It cannot be predicted whether or in what form any such proposal might be enacted or whether, if enacted, it would apply to 2009A Bonds issued prior to enactment. Prospective purchasers of the 2009A Bonds should consult their own tax advisors regarding any pending or proposed federal tax legislation. Bond Counsel expresses no opinion regarding any pending or proposed federal tax legislation. The Internal Revenue Service (the Service ) has an ongoing program of auditing tax exempt obligations to determine whether, in the view of the Service, interest on such tax exempt obligations is includable in the gross income of the owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will commence an audit of the 2009A Bonds. If an audit is commenced, under current procedures the Service may treat the County as a taxpayer and the 2009A Bondholders may have no right to participate in such procedure. The commencement of an audit could adversely affect the market value and liquidity of the 2009A Bonds until the audit is concluded, regardless of the ultimate outcome. Payments of interest on, and proceeds of the sale, redemption or maturity of, tax exempt obligations, including the 2009A Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding may apply to any such payments to any 2009A Bond owner who fails to provide an accurate Form W 9 Request for Taxpayer Identification Number and Certification, or a substantially identical form, or to any 2009A Bond owner who is notified by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The reporting and backup withholding requirements do not affect the excludability of such interest from gross income for federal tax purposes. The 2009A Bonds are treated as issued in 2009 or 2010 for purposes of Section 265(b)(7) of the Code relating to interest expense deductibility for financial institutions. The treatment of interest expense for 49

54 financial institutions owning the 2009A Bonds may be more favorable than the treatment provided to owners of tax exempt bonds issued before January 1, 2009, but may be less favorable than treatment provided to owners of bank qualified bonds. Financial institutions should consult their tax advisors concerning such treatment. The 2009B Bonds Interest on the 2009B Bonds is not excludible from gross income for federal income tax purposes. Ownership of the 2009B Bonds may result in other federal income tax consequences to certain taxpayers. Bondholders should consult their tax advisors with respect to the inclusion of interest on the 2009B Bonds in gross income for federal income tax purposes and any collateral tax consequences. As part of the American Recovery and Reinvestment Act of 2009 (the Recovery Act ), Congress added provisions to the Code, that permit state or local governments to obtain certain tax advantages when issuing certain taxable obligations, referred to as Build America Bonds. A Build America Bond must satisfy certain requirements, including that the interest on the Build America Bonds would be, but for the issuer s election to treat such bonds as Build America Bonds, excludable from gross income under Section 103 of the Code. The County intends to make an irrevocable election to treat the 2009B Bonds as Build America Bonds. As a result of this election, interest on the 2009B Bonds will be includable in gross income of the holders thereof for federal income tax purposes and the holders of the 2009B Bonds will not be entitled to any tax credits as a result either of ownership of the 2009B Bonds or of receipt of any interest payments on the 2009B Bonds. Utah Income Taxation In the opinion of Bond Counsel, under the existing laws of the State of Utah, as presently enacted and construed, interest on the 2009B Bonds is exempt from taxes imposed by the Utah Individual Income Tax Act. Bond Counsel expresses no opinion with respect to any other taxes imposed by the State or any political subdivision thereof. Ownership of the 2009B Bonds may result in other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral consequences arising with respect to the 2009B Bonds. Prospective purchasers of the 2009B Bonds should consult their tax advisors regarding the applicability of any such state and local taxes. General Certain legal matters incident to the authorization, issuance and sale of the 2009 Bonds are subject to the approving legal opinion of Chapman and Cutler, LLP, Bond Counsel to the County. Certain legal matters will be passed upon for the County by the Deputy District Attorney, Dahnelle Burton Lee. Certain legal matters regarding this OFFICIAL STATEMENT will be passed on for the County by Chapman and Cutler, LLP. Certain legal matters will be passed on for the Underwriters by Kutak Rock LLP. The approving opinion of Bond Counsel will be delivered with the 2009 Bonds. A copy of the opinion of Bond Counsel in substantially the form set forth in APPENDIX B of this OFFICIAL STATEMENT will be made available upon request from the contact persons as indicated under INTRODUCTION Contact Persons above. The various legal opinions to be delivered concurrently with the delivery of the 2009 Bonds express the professional judgment of the attorneys rendering the opinions as to the legal issues explicitly addressed therein. By rendering a legal opinion, the opinion giver does not become an insurer or guarantor of that expression of professional judgment, of the transaction opined upon, or of the future performance of parties to the transaction. Nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the transaction. 50

55 MISCELLANEOUS Bond Ratings As of the date of this OFFICIAL STATEMENT, the 2009 Bonds have been rated AAA by Fitch, Aaa by Moody s and AAA by S&P. An explanation of these ratings may be obtained from Fitch, Moody s and S&P. Such ratings do not constitute a recommendation by the rating agencies to buy, sell or hold the 2009 Bonds. Such ratings reflect only the views of Fitch, Moody s and S&P, and any desired explanation of the significance of such ratings should be obtained from the rating agency at the following address: Fitch, One State St Plaza, New York, New York 10004; Moody s, 7 World Trade Center, New York, New York 10007; and S&P, 55 Water Street, New York, New York There is no assurance that the ratings given the outstanding general obligation bonds will continue for any given period of time or that the ratings will not be revised downward or withdrawn entirely by the rating agencies if, in their judgment, circumstances so warrant. Any such downward revision or withdrawal of such ratings may have an adverse effect on the market price of the 2009 Bonds. Financial Advisor The County has entered into an agreement with the Financial Advisor whereunder the Financial Advisor provides financial recommendations and guidance to the County with respect to preparation for sale of the 2009 Bonds, timing of sale, tax exempt bond market conditions, costs of issuance and other factors related to the sale of the 2009 Bonds. The Financial Advisor has read and participated in the drafting of certain portions of this OFFICIAL STATEMENT and has supervised the completion and editing thereof. The Financial Advisor has not audited, authenticated or otherwise verified the information set forth in the OFFICIAL STATEMENT, or any other related information available to the County, with respect to accuracy and completeness of disclosure of such information, and the Financial Advisor makes no guaranty, warranty or other representation respecting accuracy and completeness of the OFFICIAL STATEMENT or any other matter related to the OFFICIAL STATEMENT. Underwriters The Underwriters have agreed, subject to certain conditions, to purchase all of the 2009A Bonds from the County at an aggregate price of $11,585, (representing the principal amount of $11,375,000.00; plus an original issue premium of $253,818.70; and less an Underwriters discount of $43,111.25), and to make a public offering of the 2009A Bonds. The Underwriters have agreed, subject to certain conditions, to purchase all of the 2009B Bonds from the Authority at an aggregate price of $18,573, (representing the principal amount of $18,625,000.00; plus an original issue premium of $24,575.30; less an original issue discount of $5,086.25; less an Underwriters discount of $70,588.75), and to make a public offering of the 2009B Bonds. The Underwriters have advised the Authority that the 2009 Bonds may be offered and sold to certain dealers (including dealers depositing the 2009 Bonds into investment trusts) at prices lower than the initial public offering prices set forth on the inside cover page of the OFFICIAL STATEMENT and that such public offering prices may be changed from time to time. The Underwriters have reviewed the information in this OFFICIAL STATEMENT in accordance with, and as a part of, their responsibilities to investors under the federal securities laws as applied to 51

56 the facts and circumstances of this transaction, but the Underwriters do not guarantee the accuracy or completeness of such information. Wells Fargo Securities is the trade name for certain capital markets and investment banking services of Wells Fargo & Company and its subsidiaries, including Wachovia Bank, National Association. Independent Auditors The basic financial statements and required supplementary information of the County as of December 31, 2008 and for the year then ended, included in this OFFICIAL STATEMENT, have been audited by Squire & Company, PC, Certified Public Accountants and Business Consultants, Orem, Utah ( Squire ), as stated in their report in APPENDIX A BASIC FINANCIAL STATEMENTS AND RE- QUIRED SUPPLEMENTARY INFORMATION FOR FISCAL YEAR Squire has not participated in the preparation or review of this OFFICIAL STATEMENT. Based upon their non participation, they have not consented to the use of their name in this OFFICIAL STATE- MENT. Additional Information All quotations contained herein from and summaries and explanations of the State Constitution, statutes, programs and laws of the State, court decisions and the Resolutions, do not purport to be complete, and reference is made to said State Constitution, statutes, programs, laws, court decisions and the Resolutions for full and complete statements of their respective provisions. Any statements in this OFFICIAL STATEMENT involving matters of opinion, whether or not expressly so stated, are intended as such and not as representation of fact. The appendices attached hereto are an integral part of this OFFICIAL STATEMENT and should be read in conjunction with the foregoing material. This OFFICIAL STATEMENT and its distribution and use has been duly authorized by the County. Salt Lake County, Utah By: /s/ Peter M. Corroon Peter M. Corroon, Mayor 52

57 APPENDIX A BASIC FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION FOR FISCAL YEAR 2008 The basic financial statements and required supplementary information of the County, as extracted from the Comprehensive Annual Financial Report for Fiscal Year 2008, are contained herein and such page numbers may not be in numerical order. Copies of current and prior financial reports are available upon request from the County s contact person as indicated under INTRODUCTION Contact Persons above. The County s Comprehensive Annual Financial Report for Fiscal Year 2009 must be completed under State law by June 30, The Government Finance Officers Association of the United States and Canada ( GFOA ) have awarded a Certificate of Achievement for Excellence in Financial Reporting to the County for its Comprehensive Annual Financial Report ( CAFR ) for the 22 nd consecutive year, beginning with Fiscal Year 1986 through Fiscal Year In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards. Such reports must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. Government Finance Officers Association; Distinguished Budget Presentation Award GFOA has presented a Distinguished Budget Presentation Award to the County for its annual budget for the 4 th consecutive year, beginning with Fiscal Years 2006 through Fiscal Year In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communications device. The award is valid for a period of one year only. (The remainder of this page has been intentionally left blank.) A 1

58 1329 South 800 East Orem, Utah (801) Fax (801) Independent Auditor s Report Honorable Mayor Peter Corroon and Members of the County Council of Salt Lake County, Utah We have audited the accompanying financial statements of the governmental activities, the businesstype activities, each major fund, and the aggregate remaining fund information of Salt Lake County, Utah (County) as of and for the year ended December 31, 2008, which collectively comprise the County s basic financial statements. These financial statements are the responsibility of the County s management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and the significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the County as of December 31, 2008, and the respective changes in financial position, and cash flows, where applicable, thereof and the respective budgetary comparisons for the General Fund, Municipal Services Fund, and Grant Programs Fund for the year then ended in conformity with accounting principles generally accepted in the United States of America. Management s discussion and analysis on pages 2 through 14 and required supplementary information on pages 63 through 65, are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. July 15, 2009