FARMINGTON -- After seven years, Davis County is getting out of the ice sheet business, in turn saving taxpayers about $55,000 in interest.
The Davis County Commission this week approved transferring $675,000 from a tourism revenue fund and using the money pay off the remainder of a $2 million loan it had taken out with Bountiful city to help fund the South Davis Recreation Center, Clerk/Auditor Steve Rawlings said.
The 10-year loan was taken out Sept. 6, 2005, by the county to help place an Olympic-size ice sheet in the recreation center in Bountiful.
The ice sheet was the county's way of contributing to the $24.6 million center that serves five south Davis cities and the county.
The county will save the $55,000 in interest by paying off the remaining three years of the loan, Rawlings said.
The county made the fund transfer because the loan from Bountiful had an interest rate of 3.5 percent, while the surplus funds in the tourism fund budget were generating less than 1 percent in interest, Rawlings said.
Taking the money out of the tourism tax revenue fund still leaves a balance of about $2.2 million, he said.
The tourism tax, consisting of a restaurant, hotel room and vehicle rental tax, generates about $4.2 million per year for the county.
But tourism funds have to be used specifically for projects that promote recreation and tourism-related activities.
Commissioners John Petroff Jr. and Louenda Downs approved the budget transfer based on the overall savings it provides for the county.
Commissioner Bret Millburn is on vacation and did not attend the meeting.