The library has managed to save more than $4 million, library director Gene Nelson said. The proposal is to put that money aside and make a balloon principle payment in 2009 that will lead to retirement of the bonds in 2011, three years early.

The city and its taxpayers would save $1 million in interest.

"It's a long way away," Borget said, "but it's forward planning and forward thinking."

Stewart was less impressed with setting aside money for a recreation center.

"I don't understand that one because a recreation center is in the $20 million to $25 million category," Stewart said. "It's nice to put something aside, and it silences those who don't feel like (the mayor) is committed to a rec center, but I'm not sure it's a commitment this administration can fulfill during its tenure."

Billings said the $1 million was part of $14.3 million in capital improvement spending proposed for the next year, which he called a major investment in the city's future.

Stewart indicated he would not support the iProvo line of credit. The City Council has final say on the budget.

Last year, the council approved a $980,000 loan from the city's energy department to iProvo. This year, it is operating with a $2.1 million line of credit. Adding another $1 million would bring the total to $4.08 million.

The loans are being used to make the payments on the $40 million in bonds the city issued to build the network of fiber-optic lines to every Provo home. The city leases space on the network to service providers who offer residents cable TV, phone and Internet services.

Billings said Tuesday the city will seek new service providers this year to add to the two it has, Veracity and MStar. He wants one that will commit to recruiting business subscribers, which Stewart said is a tough market.

Most of the about 9,750 subscribers to iProvo are residents, many of them through large apartment complexes.

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E-mail: twalch@desnews.com