Jimmy McKnight, Provo’s public works administration division director, told the Council on Tuesday that since passing the resolution on Dec. 16, the city learned it needed to hold an additional public hearing on the matter to comply with federal tax law, because it intends to repay the 15-year bond early with airport revenue.

The reliability of the transportation sales tax backing the loan was also brought into question by potential lenders because county code said the tax revenue would be reviewed by the county in 2028 to determine if it continues, according to city documents.

As a result, the Utah County Commission signed an interlocal agreement with Provo on Jan. 28 that commits the county to maintaining the sales tax revenues through the duration of the bond issuance.

“These are city revenues authorized by the county,” McKnight said.

The Provo Airport expansion will build the airport out to 10 gates — two of which will accommodate international arrivals — and expand ticketing and baggage-processing areas.

The city bond, receiving unanimous approval from the City Council, is one of multiple funding sources for the project.

Airport Director Brian Torgerson said in December that Provo has $140.3 million pledged in project funding from various entities. That includes $68.4 million plus $13 million in bond interest from Utah County and $20.5 million plus an anticipated additional $10 million from the FAA. Mountainland Association of Governments will fund $16.9 million, and the state of Utah has appropriated $10.5 million to the project.