SPRING HILL, Tenn. -- Spring Hill officials recently reinstated a property tax, and a large debt may be the reason why.

Video: Debt May Have Brought Back Spring Hill Property Tax

In 2005, Spring Hill city leaders made a shocking decision when they repealed the city's property tax.

"We have a lot of things here that we had in Brentwood, and the cost isn't as high to us," said resident Melanie Ponton.

But this fall, homeowners will start paying a 60-cent tax for every $100 of assessed property. A state audit revealed that since 2003, Spring Hill's former finance director had been funneling money from the water and sewer fund to the city's operating budget.

"They simply cannot do that. That is an illegal expenditure. They cannot just reach over and touch the water and sewer fund, because when that happens, the customers of the water-sewer fund are subsidizing the government," said Dennis Dycus with the state comptroller's office.

The city has five years to pay the money back, and, according to the state comptroller's office, Spring Hill had no choice but to reinstate the property tax to help pay back the debt.

"Not only do they have to pay them back, but they have to come up with an alternative revenue source if they want to keep operating at their level," said Dycus.

Though homeowners have enjoyed three years of no property tax, the comptroller’s office said that no property tax is virtually unheard of.

"With maybe one exception, there's no city the size of Spring Hill in Tennessee -- certainly none that is growing like the city of Spring Hill -- that doesn't have a property tax," said Dycus.

The first property tax bills will be showing up in mailboxes this fall.

The money that will go back into the sewer and water system will be spent on upgrades that were already needed.