The city's registered voters will be asked to come back to the polls Feb. 6 to decide whether Draper should issue bonds to pay for a new City Hall and renovation of its current building.

If a majority of voters give their approval, the city would sell about $5 million worth of general obligation bonds through Zions Bank.About $3.5 million would be used to build the new city government facility on a nine-acre parcel east of the Factory Stores of America outlet mall. The remaining $1.5 million would be used to convert the current City Hall, a World War I-era stone structure at 12441 S. 900 East, into a cultural arts center.

City Finance Director Richard Ellis said the bonds would be paid back over a 20-year period with an average annual interest rate of about 5.3 percent. At that rate, the city would pay about $3.2 million in interest over the 20-year period for a total debt payment of about $8.2 million, Ellis said.

If voters turn down the city's request, the city still could issue revenue bonds through the Draper Building Authority, but the interest rate on those bonds would be about a quarter percentage point higher, Ellis said. At that rate the city would spend another $250,000 in repaying the loan, he said.

Ellis and Draper City manager David Campbell said there are other additional costs associated with revenue bonds.

"The fees we have to pay for issuing the (general obligation) bonds is significantly less than for revenue bonds," Campbell said. "It would be quite a savings to the city" if voters approve the bond sale.

General obligation bonds also cost less because the city can begin paying them back immediately, Ellis said. The city would have to wait until the projects are complete before paying back revenue bonds, which could add another $250,000 in additional interest, Ellis said.

Campbell said the city should be able to repay the bonds without raising taxes.

"We're thinking we can do this without an increase in property taxes," Ellis agreed. "Although with general obligation bonds there's always that potential if growth were to stop and we were unable to meet the payment."

If voters approve the bond issue in February, construction of the new City Hall could begin as soon as April, Ellis said.

The building will be located at about 12100 South and 300 East. The land, purchased by the city in early 1994 for $30,000 an acre, has an unobstructed view of Lone Peak to the east. Apartments, condominiums, small businesses, retail stores and perhaps a Salt Lake County branch library would be built around it in the future.