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If city officials adopt the proposed 1991-92 budget in August, residents would pay slightly more next year in property taxes to make the general fund more self-sufficient and to fund improvements at the swimming pool.

The City Council Tuesday approved a tentative budget that includes the slight tax increase. A levy that was supposed to expire this year also remains in place.The budget shows the city's tax rate will actually decrease, but because new legislation increased the assessment on the fair market value of a home from 60 percent to 67 percent, homeowners will pay more taxes.

Richard Manning, city recorder, said the council's intention is to use the tax increase to gradually make the general fund less dependent on other funds. In the past, Manning said, the city has used transfers from the water fund and electric fund to support programs that should have been paid for through the general fund.

"We hope that in about five years we don't have to take money out of those other funds anymore," Manning said.

By maintaining the same tax over the next few years, the city will receive more revenue. Also, by relying less on transfers from the utility funds, Manning said, city officials hope to reduce electric and water rates in the future.

"We want to take some of the burden of supporting many of the city's programs off the utility user," Manning said.

However, any reduction in utility rates will not come until after the completion of several capital projects. In fact, water rates will go up next year to fund a new water master plan and to make improvements to increase water pressure on the city's east side. The city is also making improvements in the electrical system.

City officials also want the swimming pool to become less dependent on other funds and believe the best way to do so is by making it more attractive to residents. Officials propose to fund improvements at the pool by retaining a levy that was used to repay the swimming pool debt, which is now paid. Keeping the levy would give the city $60,000 for improvements.

Because of the proposed tax increases, city officials are not required to adopt a final budget until after holding a truth-in-taxation hearing. A public hearing on the final budget is scheduled for Aug. 6 at 7:30 p.m. in the council chambers.




Springville property tax rates

1990-91 Proposed 1991-92

General purposes .001807 .001807

Debt service .000533 .000123

Swimming pool carry-over .000179

Total rate .002340 .002109

Effect on owner of $80,000 home with $20,000 of other real property:

1990-91 1991-92

Home $112.32 $112.54

Other property $37.44 $40.07

Total $149.76 $152.61

Increase $2.85