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Salt Lake County Council Democrats want to tap taxpayers for an extra $5.5 million this year -- a property-tax hike that could lead to a showdown with Democratic Mayor Peter Corroon.
The Democratic-led council broke from the mayor's recommendation of no higher taxes Tuesday and voted 5-4 to prop up the county's recession-bruised budget with an increase that likely will cost the average homeowner about $10 more a year.
Corroon, who insisted during his re-election campaign he would oppose a tax increase, said he won't rule out a veto. He has 15 days to decide. If he does wield his pen, council Dems would need to sway at least one Republican to override him.
But, at this point, GOP members remain uniformly against a tax bump that would appear on residents' November property-tax bills.
"I'm warning you," GOP Councilman David Wilde said, "this is the absolute worst wrong time to be talking to voters and residents about a tax increase."
But Democratic Councilman Joe Hatch argues a tax boost now could ease the financial pain later.
"I'm afraid that if we don't do this," Hatch said, "next November we will be doing both a tax increase and doing huge expense and program cuts. That's the worst of both worlds . [Then] you have to raise taxes on residents and, at the same time, say, 'Guess what? You are going to get less.' "
The proposed uptick in property taxes is meant to pay debts on Zoo, Arts and Parks projects,
Corroon questions whether the move is necessary, even when considering the continued slide in sales taxes and interest rates so low that county investments will earn $9.4 million less than expected this year (with similar shortfalls expected next year). He maintains that scalpel-like cuts without higher taxes will sustain Utah's second-largest government budget of close to $800 million.
The council -- Republicans and Democrats -- signed off on nearly $5 million in mayor-proposed spending reductions Tuesday that will delay some road projects, provide fewer dollars for streetlights and erase $200,000 from golf course budgets. It also will force county libraries to slash $870,000, which likely will mean fewer staffers, lower book-buying budgets, longer wait times on popular novels and possible scale-backs in programs such as story times.
This latest round of belt-tightening comes about two months after county leaders shaved expenses by $17.4 million.
Corroon now is searching for additional cuts. The council asked for a list of potential reductions totaling $15 million by next month. But while the mayor plans to comply with that request, he won't say whether he will veto the tax hike.
"Traditionally, we have been able to work with the council to come up with some compromises before a veto vote," he said. "But no options are off the table."
Corroon suggested, for example, that he is open to the possibility of employee furloughs, which could save about $890,000 a day.
Republican Councilman Michael Jensen said the county simply hasn't searched hard enough to determine whether the financial fix really lies in taxpayer wallets.
But council Dems stood firm behind the measure Tuesday, noting that voters already approved higher taxes for the ZAP projects and general obligation bonds that the increase would pay for. Even the ballot language, they say, suggests that the county could turn to a revenue stream other than sales taxes to pay off the debt during hard times.
"It truly is voter approved," Democratic Councilman Randy Horiuchi said. "That's a lot different than us coming after the budget and saying, 'We've got to raise taxes. We don't have enough money.' "
Besides, the Dems say, the tax hike would be temporary, disappearing once sales taxes improve.
With economic conditions that already have forced the county to trim tens of millions from the 2009 budget, Hatch maintains that the county has little room left to cut without jeopardizing critical programs.
"The scalpel has gone as far as it can go," he said. "We have to do something else."
The proposed tax hike would cost the owner of a $250,000 home about $10 more a year.
