Spanish Fork budget gets folks' dander up

SPANISH FORK — A handful of residents this week stormed City Hall with complaints about the way the city planned to use taxpayer money, spurring city officials to defend their proposed budget for the coming year.

After the dust-up during a city meeting, Spanish Fork's elected officials decided to table its $46.7 million fiscal 2005 budget.

But Mayor Dale Barney insists they didn't delay the vote because of the objections from residents. Rather, he said, he wanted to wait until all members of the council could be there to approve it. An approval vote is schedule for June 21, he said.

The tentative budget is up $10.1 million over current funding because of plans to build a new police and courts building and the second phase of the city's new sports park.

Barney said the city may have to go into debt to cover the expenses, a move that would have to be approved by voters.

Residents at the Tuesday night meeting attacked the budget on several fronts:

• An increase in impact fees from $6,150 per home to $8,900. Developer Vic Deauvono questioned why new-home builders had to pay a high fee that is then passed on to buyers, when purchasers of resale homes aren't hit with the increase.

Impact fees on new homes are there so the city can keep the same level of service it offers all residents, Councilman Everett Kelepolo said. The only cities that charge less have more businesses that generate more taxes, he said.

• Resident Bradley Creer questioned why the city competes with private business with its Internet service provider and cable television service.

The city got into the Internet broadband and cable television business after private companies didn't plan to bring services to the area because the city at the time didn't have the development that north county cities had.

Municipal bonds for the broadband service also covered Spanish Fork's share in a new power substation, City Manager Dave Oyler said. The broadband service pays the electric fund its share of paying off those bonds, he said.

Members of the council said discussions have ensued over selling the Internet and TV service. But the city could face financial penalties if the service is sold and the bonds paid off early, Oyler said. The city is to retire the bonds in 2016. The bond debt, put in place in 2001, could be paid off possibly without penalty by 2011.