Shall the City Council (the “Council”) of Santaquin City, Utah (the “City”), be authorized to issue General Obligation Bonds in an amount not to exceed Six Million Dollars ($6,000,000) (the “Bonds”) for the purpose of paying all or a portion of the costs to finance a new senior center/library building; said Bonds to be due and payable in not to exceed twenty-one (21) years from the date of issuance of the Bonds? Property Tax Cost of Bonds: If the Bonds are issued as planned, (and without regard to the existing taxes currently paid for existing bonds that will reduce over time), an annual property tax to pay debt service on the Bonds will be required over a period of twenty (20) years in the estimated amount of $120.36 per year on a $222,000 residence and in the estimated amount of $218.84 per year on a business property having the same value.
The City has other outstanding bonds for which a tax decrease would occur upon the retirement of such bonds which may not occur if the proposed Bonds are issued. However, these outstanding bonds reduce over time such that the incremental property tax burden due to the issuance of the proposed Bonds on residences and businesses within the City is expected to have no cumulative increase from current annual levels. The foregoing information is only an estimate and is not a limit on the amount of taxes that the Council may be required to levy in order to pay debt service on the Bonds. The Council is obligated to levy taxes to the extent provided by law in order to pay the Bonds. The amounts are based on various assumptions and estimates, including estimated debt service on the Bonds and taxable values of property in the City.