r New soccer fields being developed in Nephi City Town Square are expected to be ready for use in Spring 2019. The project is part of the initial phase of the recreation plans to be funded by the newly passed Parks, Arts, and Recreation (PAR) Tax.
On December 18, the Nephi City Council voted to provide an interfund loan to the recreation project so it could start before the PAR tax generates funds.
An interfund loan is defined as when one municipal fund lends money to another municipal fund. Nephi is borrowing money from the city’s gas fund and then paying the gas fund interest. By internally financing through an interfund loan, the city saves itself loan origination costs as well as dictates the interest rate.
The gas fund will lend the city recreation project $200,000 for a five-year payback period at 2.91 percent interest. The loan will allow the city to begin work on the soccer complex without waiting for the first collection of the city’s PAR tax to be available for use.
With more fields to use, Youth soccer will now expand to be played in the spring and fall.