The U.S. Securities and Exchange Commission is coming to the Utah State Capitol in October to raise concerns about the same financing tool behind Deer Valley's East Village, Snow Park redevelopment and the new Canyons Village infrastructure.

State Auditor Tina Cannon told lawmakers Wednesday, Aug. 19, at the Political Subdivisions Interim Committee that the SEC plans to deliver a policy speech about public infrastructure district financing nationwide. Utah has become a hotspot: Cannon's office counts 221 PIDs statewide, with 71 carrying debt that totals up to $4 billion.

"I think that's their concern, is what used to be financed in the private market is now being funded with municipal bonding," Cannon said, according to KPCW. "Is that appropriate?"

PIDs are boards, often led by private developers, that can levy taxes and issue bonds to cover infrastructure costs. Local governments approve their creation, but a 2026 state law now clarifies that cities and counties are not liable for PID debt. Taxpayers within each district's boundaries repay the bonds.

Deer Valley, Canyons projects rely on PID bonds

The Military Installation Development Authority is using multiple PIDs to build Deer Valley's East Village base area in Wasatch County, where about 350 workers are on-site daily for ski and civil improvements. Deer Valley holds three separate PIDs for its Snow Park base redevelopment. And Summit County granted a PID to the Canyons Village developer after a council reversal in March unlocked that financing.

The auditor's concerns first surfaced after Wohali, a luxury golf course development in Coalville, filed for bankruptcy. Cannon wanted local governments like Coalville to list PID obligations on their own financial reports.

Bond attorney Randy Larsen of GilmoreBell, who has represented PID bond issuances, pushed back at the Aug. 19 hearing. He argued the Wohali case proves the system works as intended, telling lawmakers there is no debt to Coalville or Summit County and that the only source of collateral is the development itself. Larsen framed PIDs as a way to leverage out-of-state capital markets on terms no local bank could match.

Rep. Jordan Teuscher, R-South Jordan, an attorney, warned that listing PID balances on a local government's books could invite litigation. If a PID failed, he said, a plaintiff could point to those financial reports as evidence of a relationship and argue the city bears responsibility.

What comes next

The Legislature created Utah's PID program in 2019. Cannon said the state is on track to add hundreds more districts in the next decade.

The auditor's office plans to release details about the October SEC meeting closer to that date.