From Deseret News archives:

Rocky loses bonds bid

Council takes 'less-costly' route on Salt Palace work

Published: Friday, May 6, 2005 12:01 a.m. MDT
 |  E-MAIL | PRINT | FONT + - 
The Salt Lake City Council has rejected Mayor Rocky Anderson's proposal to fund Salt Palace Convention Center expansion — a move that strikes down the mayor's effort to free up millions of dollars for several of his pet projects.

The mayor had hoped to secure some cash for a number of potential projects including a new Real Salt Lake soccer stadium, Pioneer Park renovations, 300 South median improvements, open-space acquisition and other projects.

The mayor wanted to issue $8 million in bonds to pay for the city's share of the $62 million convention center expansion project. Those bonds would then be paid back slowly over time with the $600,000 in new sales tax revenue the city expects from an expanded Salt Palace.

But the council unanimously rejected that idea Thursday, saying it was too expensive. Instead the council is opting to pay for the Salt Palace with $6.4 million available through the refinancing of old bond debt and from other one-time monies and Redevelopment Agency funds.

Under Anderson's plan, the city would have had that $6.4 million available for his other projects.

"To bond for the Salt Palace expansion in order to save one-time money for projects such as 300 South or Pioneer Park, would, in effect, be bonding for those projects, which we are not prepared to do," Council Chairman Dale Lambert said in a letter to the mayor Thursday.

Story continues below
While the council's move doesn't kill Anderson's push to pay for those pet projects, it does make funding more difficult.

"We would've liked to have used that money for other opportunities," Deputy Mayor Rocky Fluhart said following the council's decision.

The council has tentatively set aside $450,000 in RDA monies for 300 South medians while Anderson has been pushing for roughly $1.7 million to complete the medians from 200 East to 400 West.

The mayor has also recommended spending $800,000 on the first stage of what could be a $4.3 million overhaul of Pioneer Park. The council discussed funding part of that overhaul Thursday but put off a decision until later.

So with large portions of such projects left unfunded — and other projects with no funding sources — Anderson will have to look for new places to find money.

The council noted the mayor may have only himself to blame for a lack of cash.

Lambert said Anderson has slashed the city's Capital Improvement Project budget — a fund that pays for park improvements, sidewalk repairs and other city infrastructure — in the past two years.

The council had a long-standing policy of spending 9 percent of the city's general fund budget on capital improvement projects. Last year Anderson convinced them to cut that commitment to 7 percent and this year has recommended the amount at 6.5 percent of the city's $172 million general fund.

While cutting these funds, the mayor has continued to push for very expensive capital improvement projects, Lambert noted.

"The reduction in CIP funding in the last two budget years is inconsistent with the desire to fund multiple significant projects," Lambert wrote.

In the end the council was unwilling to bond since bonding would cost the city more than $4 million in interest and fees as opposed to paying the $8 million up front.


E-mail: bsnyder@desnews.com

Comments

You can be the first to comment on this story.

previousnext

Latest comments

Same old story for Jazz

Glad I watched the RSL match.

Letters: Sodom and Gomorrah

Marvin, my head is spinning from your double speak. You say you have...

I think "restore" is the appropriate word here. The sales tax used to apply...

TCU creams U.

No, not the Utes performance against TCU or BYU's against NM. What is truly...

Win in New Mexico good for Y?

BYU has a history of letting good games and press get to their heads. They...

Bennett is a good, decent man who should NOT be re-elected because many like...

A summit is just another way of saying the President isn't going to do what...

"Price-elasticity of demand" Wow. Is this also known as "My child is in pain...

Costly mistakes doomed Utes

Eating Crow and Humble Pie all in the same meal! Hahahaha! Looks like Utah...

TCU creams U.

Wow! Glad I watched the RSL game.

Advertisements
Advertisement