That extra money would bring in three new city employees and turn several people at the fire department from part-time to full-time staff, as well as cover the sales tax decreases Midvale is expecting.
"Our retail businesses are doing very well, but the ones that are taking us down are in the building industry," Loader said.
Of the top 10 businesses the bring in the most revenue to Midvale, four are construction related.
"It's been a good thing in the past, but now it's hurting us," Loader said.
With the housing-market boom deflating, Loader expects overall sales tax to fall by 2 to 3 percent.
The tax hike would cover those expected losses, as well as fund extra city expenses.
While Midvale isn't looking into a cost-of-living increase for city employees, Loader wants to budget in pay raises based on performance, as well as health insurance increases.
The total budget for next year would increase by nearly $8 million, from $25.5 million for the current year to $33.4 million. Part of the reason for the jump in the city budget are improvements in the largely undeveloped Bingham Junction site off Interstate 15, Loader said.
The City Council voted to adopt the tentative budget, and a public hearing on it and the property tax increase is scheduled for Aug. 12 at 7 p.m. at City Hall. The last tax hike in Midvale was in 2005.
