Here's something you don't often see: a $50-million general obligation bond proposal that does not involve a tax hike.
Salt Lake County residents will vote Tuesday on whether to incur a $50-million debt to construct or expand 12 recreational facilities around the valley. But unless the area economy goes totally south, no new tax increase will be needed since bond proceeds will be paid from the 1/10 of a cent Zoo, Arts and Parks sales tax approved by voters last year.Thirty percent of the ZAP tax is already earmarked for the 12 recreational facility projects, but that money will be coming in only gradually over the tax's 10-year life.
The bond ballot measure thus would not determine whether the facilities are built, but simply allow them to be built sooner rather than later.
Salt Lake County Commissioner Brent Overson said the proposal has the advantage of locking in construction costs at today's prices, as well as ensuring that future commissioners don't do away with or change certain projects.
"If we do them all right now, we do away with all the politics of the future," Overson said.
The ZAP tax raised $11.9 million in 1997 and will raise an estimated total of $120 million. About $40 million of that will be used for recreational facilities, with an additional $10 million coming from other tax sources.
The bond will add $3 million to the cost because of interest payments, though that will be offset somewhat by avoiding inflation.
A committee determined which recreation projects to fund earlier this year.
If voters give the thumbs-down to the general obligation bond proposal, commissioners plan to use lease/revenue bonds to fund construction. Those would cost an additional estimated $150,000 per year in interest over the nine-year bond life, and not as much money would be available for construction since lease/revenue bonds require more of the bond proceeds to be set aside in reserve - meaning not all 12 projects would be funded.
Unlike lease/revenue bonds, however, general obligation bonds commit the general tax revenues of the county to paying off the bonds, if necessary, meaning taxpayers are ultimately on the hook if the bottom drops out of the economy.
Howard Stephenson, president of the Utah Taxpayers Association, said the general obligation bond proposal appears to be a good one.
"If it's not going to require a property tax increase, then it seems like it's worth it," he said.
These are the 12 projects recommended for funding:
- Southeast Recreation Center, 10600 South and 1000 East; two basketball courts, indoor running track, swimming pool, aerobics room and fitness room.
- West Jordan Recreation Center, 8000 South and 2200 West; basketball court, indoor running track and aerobics room.
- Magna Recreation Center, 3250 South and 8400 West; basketball court, indoor running track, aerobics room and fitness room.
- Big Cottonwood swimming pool, 4500 South and 1500 East; outdoor Olympic-size swimming pool.
- Fairmont swimming pool, 2300 South and 900 East; indoor Olympic-size swimming pool.
- West Valley swimming pool, 3100 South and 5600 West; outdoor Olympic-size swimming pool.
- Vista Park, 1959 W. 4900 South; four softball diamonds, group picnic area with playground and volleyball area.
- Big Cottonwood Regional Park, 4300 South and 1300 East; playground, sensory garden, paved paths, second picnic area, volleyball, tennis, basketball and horseshoes pit.
- South Cottonwood Regional Park, 6351 S. 900 East; open-space development, pavilion, playground and restrooms.
- Jordan River Parkway trail, several locations; trail improvement and expansion.
- Murray Ice Center, 5177 S. State; Olympic-size ice rink and related facilities.
- Equestrian Park indoor arena, 10800 South and 2200 West; 58,000-square-foot, 3,000-seat arena and 18,000-square-foot show barn.