Declining revenue
This is an archived article that was published on sltrib.com in 2009, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

A falling tide lowers all boats. But the cities in Salt Lake County, while battling declining revenues due to the foundering economy, appear to be in no danger of running aground, thanks to thoughtful management that focuses on maintaining services while holding taxpayers harmless.

With just a few exceptions, city councils are poised to balance their budgets without raising property taxes, cutting services or jettisoning personnel.

Of the 16 municipalities in the county, only two -- Alta and Midvale -- are considering nominal property tax hikes.

Midvale's council will contemplate a 6 percent increase that would raise taxes $13 per year on a home assessed at $200,000. In Alta, a proposed property tax hike would cost the owners of an $850,000 home an additional $13.18 per year. And in Bluffdale, a 6 percent tax on utility bills has been proposed to raise revenue, but the council may decide to shave spending instead.

Municipal employees won't fare as well as taxpayers. None of the cities is budgeting raises for employees, and in Salt Lake City, workers will absorb a 1.5 percent cut in pay. Plus, employees in at least three municipalities -- Taylorsville, Salt Lake City and Midvale -- will be required to pay a greater share of their health-care insurance premiums.

Also, while no furloughs or layoffs are planned, most cities have instituted a hiring freeze for non-essential personnel and are reducing the payroll through attrition, meaning employees may be required to shoulder a greater work load.

While property tax rates will largely remain unchanged, the same can't be said for municipal fees, which may be raised in at least six cities to help offset shrinking sales tax receipts.

Water rates will likely rise in Midvale (5 percent), Sandy (6.5 percent) and South Jordan (5.5 percent); sewer rates are expected to increase in Midvale (5 percent) and Alta (15 percent); and a hike in storm drain fees is expected in West Jordan ($12 per year). In Salt Lake City, the budget being pondered by the City Council calls for a host of fee hikes, including business licenses, cemetery services, garbage collection rates, parking fines and permits for vendors and restaurants with outdoor dining.

But the situation could be worse. Fortunately, these municipalities are wisely showing due diligence and fiscal restraint, instead of increasing the burden on those who are struggling with budgets of their own. And, with consumer confidence growing and the economy showing preliminary signs of recovery, it appears that they'll weather the storm.

Cities scrape to balance budgets
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