Voters in Provo will have the opportunity in November to decide on the city’s plan to issue $39 million of general obligation bonds for construction of a new recreation center.
A study by the city said it would be cheaper to build and operate a new facility that would replace three existing centers.
Officials said the bonds would be structured to reduce the impact on the municipal property tax. Approval of the bonds would raise the property tax on a home valued at $195,000 by about $31 per year.
A study by a Salt Lake City firm found that 68% of residents would support bonds for a new recreation center.
The City Council last week set the bond election for Nov. 2. The council also debated an $8 million bond package for park improvements but did not vote on it.
Mayor John R. Curtis said Provo refinanced $6.2 million of outstanding library bonds earlier this year to lower the interest rate to 0.78% from 5.36%.
Voters approved a $17 million bond package in 1997 to renovate a former education building into the city library. The bonds were issued in 1999 and will mature in 2014.
The city’s debt is rated Aa1 by Moody’s Investors Service and AA-plus by Standard & Poor’s.
