Cottonwood Heights wants a piece of the pie
But county says money meant for unincorporated residents
The fund balance, city leaders say, is wrongfully cushioned with taxes paid by Cottonwood Heights residents for future services. Now that the city is on its own, it wants some of that money back.
But leaders from the 4-month-old city faced a tough sell Tuesday to Salt Lake County officials, who aren't convinced the city is entitled to any of the money amassed for unincorporated residents.
"When that money was contributed to the municipal services fund balance, it was for the common good," said Doug Willmore, chief administrative officer for the county. "The best thing is to keep the fund balance where it is."
The fund also isn't quite as padded as Cottonwood Heights residents believe, Willmore added. In fact, the county estimates the $21 million will be depleted to zero in less than four years. That's two years sooner than if Cottonwood Heights had not incorporated and taken its healthy sales tax base in tow.
The county's build-up-and-drain-down policy for the municipal services fund helps guard against changes in the economy, Willmore said. Cottonwood Height's request for anywhere from $4-$7 million from the fund would severely deplete the county's ability to meet the needs of unincorporated residents, Willmore added.
A solution offered by Mayor Peter Corroon would give the city a less sizeable loan to be repaid by March 2006 to help get the city over the start-up hump. Simply handing over millions to the city may adversely affect unincorporated residents with higher tax rates to compensate for the loss, he said.
"I'm very sympathetic to the challenge of new government. But when the people of Cottonwood Heights made this decision, they did it to go out on their own," Councilwoman Jenny Wilson said.
But Cottonwood Heights Mayor Kelvyn Cullimore said the city is essentially being double taxed, having paid in advance for municipal services and now contracting as an independent city for those same amenities.
Cullimore is quick to point out the city is asking only for a credit for its contracted services and not necessarily a check from the county.
"It makes us look like we're beggars. It's not a handout, it's a matter of fairness," Cullimore said. "Absent that, we'll end up making a parting gift to the county of anywhere between $3 and $7 million."
Cottonwood Heights leaders had at least one ally in the county in Tuesday's committee meeting, as Councilman Mark Crockett advocated consideration of giving some type of donation to the city.
Taxes from Cottonwood Heights made up about 15-19 percent of the municipal services fund, Crockett said, so the city should get that much back minus costs to the county for the city's incorporation.
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