Leaders from Salt Lake County and Cottonwood Heights patted each other on the back Tuesday for finally agreeing on what type of parting gift the county should give the fledgling city.

After three months of haggling over the final figure, the Salt Lake County Council approved a $3 million grant to the city plus a rebate on $76,000 in incorporation costs.

"This is one issue we were a little nervous about. There was some rhetoric at the beginning," Council Chairman Michael Jensen said. "I don't think anyone is so happy they're going to do back-flips, but it's something we're comfortable with."

Negotiations between the city and county started out on rough terms with city leaders saying they had been double taxed. Cottonwood Heights leaders said they were entitled to a refund of tax dollars paid by city residents that had cushioned the county's municipal services fund.

City officials even pushed a bill at this year's Legislature to allow counties to make payments to cities from the municipal services fund.

But county District Attorney Gavin Anderson said the newly crafted agreement with Cottonwood Heights makes it clear that the city is not entitled to any county dollars.

"That would come back to bite us in terms of other cities. This is strictly a donation," he said.

The city's grant money also comes with several strings attached. The city won't get any funds until it signs a three-year contract for law enforcement, animal services and public works with the county. The city must also use $2.5 million of the grant for a public open space project that will benefit all county residents.

Those conditions don't bother City Manager Liane Stillman, however, who said the city wants to buy either Mountainview or Cottonwood Heights elementaries to turn into a city park.

"We've been watching the lawns go dry and we've been watching the vandalism, and we're thinking the school district is going to get real tired of empty schools," Stillman said.

As for the service contracts, Stillman said talks are under way with the county on the terms of a sheriff's agreement. Cottonwood Heights will be the first city to have a legal contract for sheriff's services with the county, which Stillman said gives the county an unprecedented level of financial security.

"It's a pretty big carrot," she said. "We're very confident that will not be a sticking point."

The county's donation to its newest city, which incorporated in January, will help float the city through the next year as it recoups start-up costs and waits for sales and property tax revenues to flow in from the county.

"In a start-up that's pretty important until you get your own revenue stream," she said. "On paper we look terrific, but we still have cash flow issues for about a year and a half."

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