City leaders are trying to figure out a way to significantly slash the city budget. But, they say a hike in property taxes is necessary.

For the first time in more than 10 years - since the 1997 incorporation of this city on Utah Lake's northwest shore - officials say they are proposing an almost 80 percent tax increase.

Here's how they came up with that figure:

The city's 2007-08 operating budget was $7.7 million. They started cutting, including nixing all city celebrations and 13 employee positions. The proposed 2008-09 budget is $6.3 million - $1.4 million less, said City Manager Ken Leetham.

But revenues are down. Leetham said the city's development-related revenue, including money from building-permit fees, decreased by $1.6 million last year.

The city originally planned to bump up property taxes by about 200 percent to raise about $1.5 million.

But, after a working meeting with City Council members Tuesday, Leetham said the city is going to use $600,000 from the water-enterprise fund. That cash is collected from the sale of water rights to developments. It's a one-time revenue source, and the city plans to pay it back, Leetham said.

Also feeling the ax: The city-attorney contract will be slashed in half, to $70,000 a year, he said.

So as of Wednesday, the city is proposing to hike property taxes by 78 percent to raise some $800,000, Leetham said.

For example, owners of a house valued at $250,000 now pay $10.69 a month in property tax. Their bill would increase to $19.04 a month - a $8.35 increase - under the current proposal, Leetham said.

Changes to the tax-increase proposal are ongoing until the council votes on the matter. A public hearing about the tax increase is scheduled for Tuesday at the city's offices.

jsanchez@sltrib.com

What's next

* What: Saratoga Springs truth in taxation hearing

* Where: The city's offices, 1307 N. Commerce Drive, Suite 200.

* When: 7 p.m. Tuesday.

* Why go? The public will have a chance to ask questions and give feedback on the city's proposal to increase property taxes by 78 percent to raise about $800,000 needed for the 2008-09 budget.

* Then what happens? The council is scheduled to meet Aug. 12 to vote on a proposed tax increase and budget, which must be approved by Aug. 17.