Park City budget managers are looking for direction from the city council whether two open space purchases – totaling $48 million should be combined for the November election.
Assistant city manager Matt Dias says they’ve found another $2.7 million in reductions that can lower the Treasure Hill and Armstrong Bond amount to $48 million.
“There are three ways were going to do that. We have some bond premium available. We have some money from sale of an asset and then we have a little bit of a year-end surplus from the FY 2018 Fiscal year.”
The bond premium is an additional return paid for desirable bonds. Given Park City’s top bond rating, Dias says that’s worth a million bucks in this case.
Additionally, City Manager Diane the city will be selling a parcel of land to the Park City Fire District for a future fire station in the Quinn’s Junction area, near the new Peace House complex.
“Park City Fire District realized that they wanted a space --that was an area that needed a fire station and because response times are all about location. Initially, we had some discussion around possibly leasing the land – a 99-year lease - for a low price. But the county council actually asked the fire district if they would be more comfortable acquiring land. So, it was a sale. It’ll, I think, given the restrictions on the land it’s probably a market rate but a million dollars for a piece of property, seems kind of… it was a collaboration between the city, the county and the fire district.”
The budget surplus of $700-thosuand will also be used toward reducing the bond and all available funding from the open space portion of the Resort Sales tax – about $3 million – will be applied to the Treasure purchase, but only if the Armstrong property isn’t available.
With these new additions, the staff has been able to either cut or delay capital spending by $16million. Still, $48 million is a lot and if voters approve the bond in November, businesses and residents can expect their tax bill to go up. The increased taxes, Dias says are based on a home valued at $800-thosuand dollars.
“For the average property tax owner primary resident or primary property tax holder in Park City, for a $48 million general obligation bond, it would be approximately $194 per year, year over year increase for 15 years. And then you double that amount if you’re a business owner or a second homeowner, so it would be approximately $353 per year, year over year, for 15 years.”
If the Armstrong conservation easement is not acquired, the $3-million that the city was contributing toward the effort would not be issued, resulting in a Treasure-only bond of $45-million.
The council is scheduled to decide on a formal bond resolution at its August 16th meeting.