City Council 5/15/13 - Budget Discussions

Almost the entire City Council meeting was a discussion of the fiscal year 2013-2014 budget. The council has until June 22 to pass a budget and was given a proposed budget by administration at the beginning of May. At each meeting they study specific departments or areas in the budget and decide what they want to keep the same or change.

Prior to the budget discussion, Janice Auger Rasmussen gave a report from the Ad-Hoc Fire District Committee. The committee will be giving information in the near future with an assessment of the upcoming referendum vote on whether or not to join the Fire District. They had two items that they felt warranted immediate attention. First, they fear that surrounding cities are "jumping' medical calls. That means that a nearby fire department may hear that the there is a medical call, especially a patient transport, and then respond before our UFA medics. The second issue is whether or not firefighters and fire apparatus have to go on every call and if there is a more cost-effective way to do this.

During the budget discussion, there are some changes being considered by the city council in an effort to reduce costs. They are as follows:

The council is looking into moving their City Council coordinator position from full time to part time.

They removed a position for a "Mayor's Assistant" and reduced the mayor's budget for books and subscriptions.

They removed a Homeless program line item for $20K, and felt this was a regional issue that should not be handled on the city level.

The city council did not change the proposal for employee benefits. They also kept the same funding for all the citizen committees.

There were no citizen comments made about the budget when the council opened up the meeting to the public.

Taylorsville City Budget Details

The proposed fiscal year 2013-2014 budget includes a potential property tax increase of approximately $9.34 per month for the average home (a residential property with a value of $197,000). This is an increase of approximately 47 percent. The property tax increase is needed because of increasing costs and the fact that ongoing expenses have been partially funded from our fund balance (savings account). Further impacting this situation is the decline of sales tax revenues that began with the recession. These revenues remain close to 2006 levels, even though inflation has continued to increase during this time period.

The primary reasons for the tax increase:

Operating Budget

Even though the operating budget is only increasing 4.2 percent over the previous year, the majority of the tax increase funds current operations that were paid for in the 2012-2013 budget from the city’s fund balance (savings account). Our fund balance is now down to 10.9 percent and can no longer be relied upon to fund ongoing expenses. (10.9 percent of upcoming year’s anticipated revenues.) Maintaining a reasonable fund balance is critical to our city’s bond rating and for future emergency expenses.

Deferred Maintenance

With declining revenues, elected officials chose to defer significant maintenance to keep expenses low over the past few years. Upkeep and maintenance on items like our roads and critical infrastructure can no longer be deferred without tremendous future expense.

Public Safety Increases

Our Unified Fire Authority contract increased 5 percent over last year. Our Unified Police Department contract increased 2.9 percent over last year. We still continue to see hundreds of thousands of dollars in savings by contracting our public safety to these two entities, over providing our own services. Public safety alone accounts for approximately 50 percent of our overall city budget.

Neighborhood Investment

Keeping neighborhoods looking nice improves property values, keeps crime down, encourages good families to live here, and improves quality of life. Here are some of the additional items included in this year’s proposed budget to help neighborhood revitalization: road maintenance, additional neighborhood clean ups, sidewalk repairs, an additional code enforcement officer, and up to two additional police officers (pending award of a COP grant).

Enhanced Services

The proposed budget also includes funds for electronic business plan submittal software, an annual resident survey, additional maintenance at city parks and the bass fishing pond, and municipal elections this fall. These items were not in last year’s budget.

Where is Taylorsville’s tax rate in relation to other cities?

We have the fifth lowest property tax rate out of the 14 neighboring cities. Most of the cities with a lower tax rate have made significant investments in economic development over the past 20 years and are now seeing the results of those investments, which gives them the ability to keep their taxes low. If the current tax increase is approved, and none of the other cities raise taxes this year, we would have the ninth lowest property tax rate out of the 14 cities. In an effort to control costs, Taylorsville has one of the lowest number of employees/contractors per capita in the state.

What is Economic Development and how do we keep taxes low?

Sales tax revenue is our greatest single source of revenue. The best way to keep property taxes low is to have a successful business base in Taylorsville. In the past 10 years our city has not been actively investing in economic development, but in recent years the city has been looking for ways to attract quality businesses to the city. Having well-maintained streetscapes, parks, and neighborhoods helps to attract businesses and families. It is also helpful when residents keep tax dollars in the city by shopping in Taylorsville!

Other Frequently Asked Questions:

When was our last Taylorsville tax increase?

Last year there was a 15 percent tax increase, which resulted in an additional $2.43 per month for a $197,000 home. The only other tax increase in city history was in 2006.

Do we pay more in city tax than surrounding cities?

We have the fifth lowest property tax rate out of the 14 neighboring cities. Please see the chart on the opposite page to see the rankings.

What happens if we don’t raise taxes this year?

If there is no tax increase this year, the budget would need to be cut $2.3 million. This would mean a reduction to essential services (public safety, snow plowing, public works, etc.). Residents have expressed their desire to have a progressive city that is continually investing in itself. If new items in this year’s budget are removed, elected officials fear that we start down a path of deterioration. A city that attracts families and businesses will have a greater potential for quality of life and a stable tax base. Even if all new items were removed from the budget, in addition to some personnel, there would still not be sufficient revenues in the budget. Again, essential services would need to be cut.

What do I do if I can’t afford my property taxes?


There are programs that can help if you have a hardship with paying your property tax. Contact the Salt Lake County Treasurer’s office at 385-468-8300 or treasurer.slco.org to see if you qualify for property tax relief.

What portion of my property tax bill goes to Taylorsville?

Only one line item on your property tax bill goes to Taylorsville City, which is approximately 16.46 percent of your total property tax. That means this proposed tax increase is equivalent to a 6 percent overall increase to your property tax.

What is NOT included in this budget?

Although a tax increase is being proposed, many of the items in the 10-year Strategic Plan, developed by residents, advisory committees, staff and elected officials, are not getting any funding this year. The budget is still very lean and conservative. The following items are not in this budget: Redwood Road landscaping, indoor swimming pool at the Rec Center, walls on main corridors, additional parks, Jordan River trail upgrades, bike lanes, additional firefighters, and a new fire station.

If I have more detailed questions on the budget, where should I go?

You can view the entire budget on our website at taylorsvilleut.gov. You can also call John Inch Morgan, City Administrator, at 801-963-5400 or email him at jimorgan@taylorsvilleut.gov.

BUDGET CALENDAR:

Attend these public meetings to give input and become informed about the budget.

Wednesday, May 29 from 6-7 p.m.

Town Hall Open House at City Hall

Elected officials and staff will be available at an informal open house to discuss the budget or any other city issues.

Wednesday, June 5 at 6:30 p.m.


City Council Meeting and Budget Public Hearing at City Hall

The council will discuss the budget. This will be the official public hearing to receive input on the proposed budget.

Wednesday, June 12 at 6:00 p.m.


City Council Work Session at City Hall

The council will discuss the budget and citizen comment will be taken after the discussion.

Wednesday, June 19 at 6:30 p.m.


City Council Meeting at City Hall

The council will discuss the budget and citizen comment will be taken after the discussion.

(Per state statute, the budget must be passed by June 22)

August (specific date to be determined) Truth-in-Taxation hearing.

Additional meetings may be scheduled as needed

City Council Work Session/Budget Discussion 5/8/13

Things of interest during the budget discussion at the city council work session:

The proposed budget includes a tax increase of $9.30 per month for a $197,000 home. 

Police
Public safety trends and budget issues were reviewed. Specific budget data for law enforcement services was outlined. Increases were cited to include an additional $100K for traffic enforcement and funds for two additional officers, if a grant can be obtained. The grant would pay 75 percent of the cost for the officers for the first three years. UPD Chief Tracy Wyant gave statistics on the high call volume experienced in Taylorsville that has exceeded other precincts. He cited the $585K savings the city has seen through the change to UPD. All council members were in approval of the police budget as presented.

Court
The Municipal Court budget was reviewed. One position was eliminated and another position has not been filled yet. There is an increase to the prosecution costs and employee benefits, but council members commented on how this is financially the best year the court has had in recent years. Two council members were interested in more information on the benefits package.

Fire and Emergency Services
UFA Battalion Chief Jay Ziolkowski discussed staffing issues for fire services and response times. Firefighters cannot go into a burning building unless there are three of them on site. This is a national standard that we cannot choose to deviate from. Council members discussed having a fifth person per shift so three can be on a ladder truck while two are on an ambulance. It would add an additional $400K, which has not been included in the proposed budget. All council members polled were fine with the fire budget as submitted.

After the November referendum on the Fire District, the council will need to revisit a potential bond for a new fire station. (They are waiting until after the vote because if citizens vote to join the Fire District, the city would not need to pay for that station - it would be included in the Fire District tax.)

Animal Services
The contract for Animal Services will not change this year. Taylorsville owns approximately 18 percent of the Taylorsville/WVC Animal Shelter with bond costs at $138,500. This bond obligation with WVC goes until 2024. Council members and staff are pleased that the shelter is quickly becoming a "no kill" shelter. The council could change providers for animal services, but it would come at a cost. All council members preliminarily agreed with this budget.

Irrigation Problem
The Murray canal break and the dried up North Jordan Canal has created some issues for us. We irrigate the Taylorsville Cemetery with that canal water and it will be out of use for at least two months. City officials are trying to decide if they should bring in water trucks ($1000 per week), or run a culinary water line to water the grass and trees in the cemetery. Running a line would cost approximately $10K-$20K, but is the recommended approach since we have no definite date that the canal will be in operation again. The council consensus was to approve $10K from the current budget in order to connect to the less-expensive line. Deseret News story on canal breach

Employee Benefits
Employee benefits were the next items of discussion. City administrator John Inch Morgan cited several options to reduce the increase to both the city and the employee insurance premiums - increase out-of-pocket maximums from $2,000 to $2,500; increase emergency room co-pays from $250 to $300; remove chiropractic benefits from the plan. There is no change to dental insurance. One council member asked if the 80/20 split should be changed to 70/30. Employee costs for a family at mid-level coverage is approximately $275 per month. Staff will bring back more information next week on the employee benefits.

Taylorsville opts to use contractors, where possible, to save money on benefits like retirement, health insurance, and other employee expenses. Benefits cost about 40 percent of salary (on average, $20,000-$30,000 per employee). Contractors, such as the city attorney, city engineer, communications director, and prosecutors provide their own equipment - computers, phones, vehicles, etc. They do not receive any employee benefits.

Budget Committee
The City Council has a Budget Committee made up of volunteers who live in the city. These volunteers are financial professionals - CPA's, CFO's, and business owners. Tonight the Budget Committee gave the recommendation to support the public safety portion of the budget. They are also interested on seeing more options on the employee benefits. Budget Committee member Cary Davis pointed out that residents need to understand that even though this is a 47 percent property tax increase, the actual budget is only increasing 4.2 percent, with the majority of that increase funding public safety.

Here are some of the additional items in this year's proposed budget:

      Keeping neighborhoods looking nice keeps crime down, encourages good families to live here, and improves quality of life and property values. Here are some of the additional items included in this year’s proposed budget to help neighborhood revitalization:

o   $160K for road maintenance that has been deferred over the years

o   $22K for additional neighborhood clean ups

o   $100K for sidewalk maintenance and repairs

o   $64K for an additional code enforcement officer (includes salary, benefits, and resources)

-       Our Unified Fire Authority contract increased $213K (5% over last year). Our Unified Police Department contract increased $232K (3% over last year). We still continue to see significant savings by contracting our public safety to these two entities, over providing our own services. Last year we anticipated $600K in savings by joining UPD. This year, we anticipate over $450K in savings. The city has applied for a grant to add two additional police officers. If approved, we must pay 25% of the cost, or $60K for these two additional police officers to serve the public.

-       The proposed budget also includes:

o   $70K to give the planning department the ability to accept electronic plans from businesses. We hope this effort to make our city more “business-friendly” will help with our economic development efforts.

o   $20K for an annual resident survey. Elected officials want a better way to find what you want from your city so we can better meet your needs.

o   $33K for additional maintenance at city parks and the bass fishing pond. (A recent algae problem has necessitated this for the pond.)

o   $99K for our municipal election this Fall. Four seats are up and each primary and general election has a cost. Because there was no election last year, this is a new addition to the budget.

o   $95K in health insurance, retirement benefits, and market adjustments for city employees. As with most employers, health insurance costs continue to go up.

Bennion Park Playground meeting

On April 27 there was a fire that destroyed the playground equipment at Bennion Park – 5600 S. 3200 W.

Tonight, May 7, at 6 p.m. Mayor Jerry Rechtenbach and Councilmember Dama Barbour will host a meeting at Bennion Park for residents in the Bennion Park area. They are looking for feedback from the neighborhood children on the kind of playground they would like to see to replace the destroyed playground. Officials from the fire department will also be on hand to answer questions.