SALT LAKE CITY — Three months ago, Salt Lake City leaders voted to raise sales taxes to help pay for underfunded needs — and at the time, they knew the $25 million from the new tax hike's first year and the $33 million in subsequent years wouldn't be enough.

That's especially true when it comes to road and streets maintenance, city staffers have been warning for months.

So ever since Salt Lake City Mayor Jackie Biskupski proposed it in her State of the City address this year — and City Council leaders repeatedly referred back to it throughout their time weighing the sales tax hike — city leaders have hinted there may be a part two to their ask of taxpayers this year.

That second part is an $87 million general obligation bond, which would replace two bonds expiring in 2019 and raise taxes by up to $5 a year for the average homeowner, according to city estimates.

Tuesday, Salt Lake City leaders inched closer to placing the bond on the November ballot. The City Council held its second and final public hearing on the issue Tuesday night, where only four residents spoke — but all against.

Resident and community activist George Chapman, who ran for Salt Lake City mayor in 2015, pointed out Salt Lake City and Salt Lake County residents will already be seeing two other tax hikes this year: the 0.05 percent city sales tax hike and the 0.25 percent county sales tax hike for transportation projects.

"I'm begging you not to put the bond on the ballot," Chapman said, warning that in the face of other tax hikes, residents are "going to just start shutting down," and that might risk the chances of the Medicaid expansion ballot initiative passing this fall.

"You shouldn't be trying to put anything on the ballot that could hurt health care expansion," Chapman said.

But among city leaders, there appears to be no opposition to the bond. Tuesday, City Council Chairwoman Erin Mendenhall said in an interview she expects the council to approve the ballot question when it comes to a vote in two weeks.

"We're still listening," Mendenhall noted, but added, "At this point, we've heard primarily positive feedback that residents do want to vote on this, so I would anticipate the council putting it to the ballot in November based on what we've heard so far."

Tuesday marked the last public hearing. The next time the City Council meets, Aug. 14, is when council members are expected to vote.

That same day, the council will receive results from an online survey, which will remain open through Friday at FundingOurFutureSLC.com, on how residents view the condition of the city's streets. Staff is also expected to brief the council on results of a poll conducted by the third party, Y2 Analytics, on whether residents would be supportive of the bond.

Related story:

SLC budget proposal's sales tax hike could bring millions for police, streets, housing

Salt Lake City Mayor Jackie Biskuspski released her annual budget proposal Monday, outlining how the city would spend an additional $25 million from the city's proposed 0.5 percent sales tax increase.

"We're still enthusiastically asking for community input," Mendenhall said. "We hope people will keep talking to us."

As far as city officials see it, though, the need is clear. Two-thirds of the city's roads are in poor or worse condition, according to a pavement study the city commissioned last year.

City officials see the bond as a "time sensitive" and "an incredible opportunity for us to invest in our infrastructure with minimal impact on each household," Mendenhall said.

Because two current bonds will be paid off in 2019, the $87 million bond is estimated to have little impact — an estimated maximum of $5 annually to the average household.

But if the bond doesn't pass, the average Salt Lake City's homeowner's property taxes would go down about $41 annually.

Yet city officials have said the $87 million bond would make a big difference for city roads — revenue that would kick-start street projects and help the city catch up on deferred maintenance.

But if the bond doesn't pass?

Mendenhall smiled and paused before answering.

"I think we will hopefully put that up to voters and deal with their decision when it happens," she said. "But I believe the city's done an incredible effort to solicit public feedback and we're hearing voters want the opportunity to weigh in on this."

Read more:

Salt Lake City considering $87M bond to improve city streets

Salt Lake City residents may have an opportunity to vote on an $87 million bond aimed at repairing or rebuilding roads across the city.

The potential bond comes not only after the 0.05 percent sales tax hike approved by the City Council earlier this year, but also a 0.25 percent county sales tax hike approved by the Salt Lake County Council for transportation projects.

While Biskupski backed the city 0.05 percent sales tax hike, the mayor was at odds with the City Council over the county sales tax hike, saying it wasn't the "right time."

Still, after the Salt Lake City Council joined several other city councils in support of the county tax hike, Salt Lake County enacted the tax. Salt Lake City will get a portion of those annual funds to go toward road projects.

Asked if the county tax hike might have an impact on whether voters will support the $87 million bond in November, Mendenhall acknowledged "different things will impact voters decisions, and that's totally understandable."

But she also said city officials have been "really clear" that even with revenue from the two sales tax hikes and the bond, the city would welcome more revenue for transportation projects.

"I think we've also been really clear even together those two aren't going to fill the whole pot hole, so to speak," Mendenhall said. "I think the transparency of the need should help make it more clear to taxpayers that all of these streams of revenues will help to fill that pothole that otherwise may have only been half-way filled."

Related topics