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The City Council is studying whether to support a proposed $1.2 million equestrian center following a committee recommendation that a $600,000 loan be obtained from the Utah Community Impact Board to pay for the facility.

Mayor Nyals Andreason said he questions whether the city can afford increased indebtedness because of the limited tax structure and a population of about 1,950. "The maintenance and management of such a facility present additional problems," he said.Another CIB loan would raise Salina's debt to the board to nearly $1.1 million and the city's total indebtedness to more than $2.8 million.

The committee backing construction of the facility suggested an additional quarter percent tax on retail sales to pay off a new CIB loan, generating about $45,000 annually. Committee members say an enclosed equestrian center would have a favorable economic impact, noting it could also be used for other purposes.

Preliminary plans show a 100- by 300-foot area that would seat 1,500 people and a multipurpose area that would seat 300.

Committee member Danna Shaw told the City Council that letters of support have been received from area businesses pledging donations of more that $20,000 per year. She said the Sevier County Commission supports a food tax that would provide another $20,000 annually.

A financing package was proposed that would include a 50 percent grant and a 50 percent loan combination. The committee estimated annual costs to the city would be about $78,000, of which $48,000 would be used for the loan payment and $30,000 for operation and maintenance. That the center would create revenue from those who use it.

The committee has also studied possible sites, suggesting locations near North Sevier High School, near the city's industrial park, north of the I-70 interchange or south of the interstate highway. Shaw said two of the parcels would be partially donated by landowners.

Mayor Andreason said Salina owes money to First Security Bank, the Water Resources Board, Farmers Home Administration, the Water Pollution board and the CIB. The money was borrowed to pay for a sewer plant, a pressurized irrigation system, improvements in the southeast sector of the city and to purchase a fire truck.

The bank indebtedness is $82,050 for a former sewer plant loan, borrowed at a 5 percent interest rate. Annual payments extend through 1994.

Water Resources loans include $452,250 for the irrigation system, 5 percent interest, annual payments from 1992 through 2000; $210,448 for the same project, 5 percent interest, payments from 1991 through 1996; $90,618 for sewer lagoons, 5 percent interest, payments from 1992 to 2008.

The city owes $417,090 to the Water Pollution Board for sewer lagoons, borrowed at 2 percent interest. Payments are from 1992 to 2008.

Current CIB loans are $165,000 for irrigation system, one payment due in 2000; $259,000 for irrigation system, 5 percent interest, payments 1996 to 2005; and $51,183 for a fire truck, borrowed at 4 percent interest, payable 1992 to 2000.

Two loans are with FmHA. They include $468,828, borrowed at 71/8 percent for sewer lagoons with annual payments from 1992 to 2010, and $54,831 for the southeast improvement project. The interest rate for the latter loan is 5 percent, requiring payments from 1992 through 1994.