A tax increase assessed in 1977 to repay the bond issued for construction of Springville's swimming pool expires soon, but city officials hope residents will allow them to keep the tax for use in remodeling the pool.
Property taxes were increased by about .00024 mills at the time the bond was issued. The tax brings about $60,000 annually into city coffers and costs the owner of a $75,000 home about $15 a year.The city's last payment on the bond is due June 1 and the tax is scheduled to expire after this year.
However, city officials say that once the bond is repaid the city would be wise to keep the tax in place and use the money to upgrade the pool. Property taxes would not increase, but the money received from the tax would be shifted from debt service to general use.
"The tax rate would stay the same, but the purpose would change," Mayor Delora Bertelsen said.
Councilman Gordon Smith said the revenue received from the tax would be added to the pool's budget strictly for use in upgrading the facility. He said the pool needs about $40,000 in new lockers and its lighting is in need of repair.
"If we can sustain this tax for a few more years it will allow us to refurbish the pool and keep it going," Smith said.
City officials have been concerned for years that the pool is not self-supportive. The city spends about $12,000 a month to subsidize the pool. Council members say refurbishing the pool will increase its usage and will help reduce the deficit.
"That pool needs a lot of upkeep," Smith said. "We need to make it attractive to the citizens. We might even want to put up a marquee because many people don't even know what it is."
To keep the tax in place the city must hold public hearings to allow input on the matter. Those public hearings are expected to be held in late May and early June. If city officials decide not to keep the tax, residents would see a reduction in next year's tax rate.