West Jordan residents will see the city’s telecommunications tax disappear July 1, so the City Council wants to know how residents want to pay for city services without it.
Losing the tax will leave a hole of $1.7 million to $1.9 million in the city’s budget; that money is targeted for pavement management projects, Mayor Melissa Johnson said. She is asking the council to discuss plans for the shortfall before the tax expires, so city staff can make adjustments to the budget.
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The council has several options, and it’s asking residents what they think. The city could either allow the tax to "sunset" and face a significant property tax increase to make up the lost revenue, or reinstate the telecommunications tax and raise property taxes by a smaller margin. A property tax increase is likely to occur either way, Johnson said, to fund the city’s public safety needs.
If residents decide to keep the telecommunications tax, the council will need to decide whether to keep it earmarked for road projects or put its revenue into the general fund, where projects can compete for money based on need.
Johnson suggested holding at least three public meetings on the issue to gauge resident sentiment. It will be discussed at the Meet the City event at City Hall on March 7, and also will get a public hearing before the council and another meeting at a different venue. The council will then construct a plan.
Johnson previously had proposed doing away with the telecommunications tax’s sunset clause and simply rolling the tax over to the general fund. But public feedback indicated residents want the tax to sunset in the interest of transparency, Johnson said, so whatever choice the council makes will take effect after the sunset on July 1.
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