More than 100 people packed a City Council meeting Thursday, and about 40 chimed in on a proposal to levy a 6 percent municipal energy tax to cover climbing costs for road repairs.
The crowd, composed of a large number of seniors and some younger residents, had its rowdy moments, with cheers for a suggestion that Holladay be "dissolved" and applause for Nyle Fox, who announced he has his "escape routes planned" if taxes go up. One heckler interrupted a presentation, shouting, "We've figured out how to live on a fixed income. You better damn well figure it out, too."
That was a sentiment echoed by many residents, who complained that extra fees on natural gas and electric bills would be too great a burden. City Manager Randy Fitts estimated a 6 percent tax would mean, for an average Holladay home, an additional $18 to $24 per month.
But a few residents gave the tax an OK - provided it has a sunset or a lower rate. Others favored a property-tax increase instead. That would mean an additional $21 to $31 per year per $100,000 value of a property, Fitts said.
A recent survey of Holladay's 93 miles of roads found that more than half are in fair, poor or failed condition. Bumping them all up to "good," would require $25 million, Fitts said. By comparison, the city spends about $10 million per year on all expenses.
"The problem is, if we bury our heads in the sand . . . we're going to get to a point where it becomes a critical explosion within the city," he told the crowd.
He pointed to high oil costs jacking up the price of asphalt and a rough winter that left more potholes than usual as reasons for the sudden need for new revenue for roads. And the expense will only grow if the city waits, he said.
But some residents, including former Mayor Dennis Larkin, questioned Holladay's planning and whether the need for a new tax was real.
"If [repairing roads] is such a priority here in the city right now, they ought to be looking for discretionary money that they can reallocate," Larkin said after the meeting. Among the "fixed-income gang," he opposes the energy tax.
Amid the cheers and jeers, there also was some appreciation for the public process.
"On behalf of the lynch mob, I'd like to commend the council for even calling a [public] hearing," resident Rod Pulley said.
Mayor Dennis Webb responded, "We're delighted that you'd come, really."
rwinters@sltrib.com
Utah cities are allowed to levy up to a 6 percent tax on gas and electric bills. It is also known as a franchise tax.
The Holladay City Council is expected to decide at its June 5 or June 12 meeting whether to levy the energy tax or go for a property-tax increase.
