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Springville sets sights on $9.8M in bonds for library

SPRINGVILLE (Daily Herald) -- The Springville City Council cleared the way Tuesday night for nearly $10 million in bonds to be issued for the city's new library.

The unanimously passed $9.8 million parameters resolution will hold the general obligation bonds to a maximum interest rate of 6 percent if untaxed (8 percent if taxed) and a maximum bond term of 21 years, Springville finance director Bruce Riddle said.

This means come November, citizens can expect to start kicking in, on average, about $5 in extra property tax per month (current estimations are $59 per year on a median-priced $220,000 house). It's a little lower than the $63/year residents expected when they voted to bond for the project during the November 2008 elections.

With interest rates and building costs nearly bottomed out, the city is hitting a financial "sweet spot" in debt issuance and construction, Riddle said.

The actual issuance of the bonds should coincide with the construction bid selection toward the end of May, and are not yet set in stone. This was good news to Springville Mayor Wilford Clyde, who said of the forthcoming bids, "if everything was a disaster or something, we could stop it."

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