Only about 8 percent of Springville voters cast ballots in Tuesday's special bond election, but more than 97 percent of those who did voted in favor of issuing general obligation bonds to refinance city debts.
Of the 571 residents who voted, 555 voted in favor of issuing general obligation bonds, 15 against and one ballot was declared invalid. The turnout was so low that city officials canvassed the election and declared it official about an hour after the polls closed.City officials credit the election outcome and the low turnout to the lack of controversy. The election was simply to allow the city to issue new bonds that could save the city as much as $250,000.
If the city decides to issue the new bonds, the money must be used to repay water and sewer revenue and refunding bonds issued in 1984 and 1985. The interest rates on those bonds range from 7.5 percent to 10.1 percent. New general obligation bonds can be issued at about 7 percent.
City officials say the money saved by issuing new bonds will be used to improve and maintain the sewer and water system. Officials also promise not to extend the life of the bonds past that of the existing bonds, about 13 years.
After declaring the election official, council members approved a resolution outlining the terms the city must follow if it decides to issue new bonds. The bonds cannot exceed $6.5 million, cannot exceed an interest rate of 8 percent and cannot have a maturity period of more than 20 years.
According to the resolution, if no one challenges the legality of the bond within 30 days, the city has 10 years to issue the bonds.