Fruita wants to cut property tax
With Black Sunday road bonds paid, city officials want to keep promise
The Fruita City Council will consider cutting its property tax by 10 percent because it has paid off bonds that were used to pay for road improvements in town.
The council will discuss the issue during its meeting Tuesday.
The bonds were issued soon after Black Sunday, the day in 1982 when the oil shale-fueled economy of the West Slope collapsed, mayor Ken Henry said.
The bond sale was deemed to be too far along to stop it, Henry said, so the council at the time promised voters that the additional property tax needed to make the bond payments would be taken off the rolls
once the bonds were retired.
The bonds were refinanced a couple times, he said, but town officials remembered that they had promised the reduction.
The council is under no legal obligation to reduce the property tax rate, but “we’ll stand up to our moral obligation,” Henry said.
The action, which would cut by 10 percent the current 11-mill rate, could boost optimism, Henry said.
“It might help us with folks concerned about economic conditions” and also might give a boost to the effort to build a new recreation center in town, he said.