From Deseret News archives:

S.L. County to seek input on big shortfall

Published: Thursday, May 3, 2007 12:10 a.m. MDT
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Salt Lake County leaders plan to ask city mayors for advice on how to solve a $19 million shortfall for recreation projects.

Salt Lake County Mayor Peter Corroon wants to use money from the tourism, recreation, cultural and convention (TRCC) facilities fund to solve the $19 million problem, but the county can't spend any money from that fund without first consulting local mayors. Recent legislation forced the county to ask an advisory board made up of mayors for input on how to dole out money in the TRCC fund.

County leaders plan to consult with the mayors at today's Salt Lake County Council of Governments meeting.

County voters approved a $63.5 million bond last November to start construction on new recreation centers and trails. But unanticipated inflation costs, a push for tight environmental standards, and other "unforeseen conditions" have left county leaders scrambling to figure out a way to fund the budget shortfall.

Of the 25 projects, 11 are over budget. Erin Litvack, the county's community-services director, blamed the inflated costs on low unemployment, an inundation of major construction projects in the market and a shortage of construction materials.

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Corroon proposed a solution to the County Council a few weeks ago: $20 million in money that was supposed to be used to build a stadium for Real Salt Lake that is now sitting in county coffers.

The county took out the $20 million bond in 2004 to build a parking garage for the South Towne Exposition Center. But now the state is building the parking garage as part of the Real Salt Lake stadium project, so the county has several options on what to do with the money.

Corroon wants to use the $20 million bond to offset the inflationary construction costs of all the recreation projects. Other county leaders are interested in leaving some of the money in the TRCC fund. The fund took a big hit when the Legislature approved a bill that would take $35 million in hotel-room taxes — money that goes into the TRCC fund — to build a stadium in Sandy for Real Salt Lake.

The fund needs $8 million to stay out of the red, Councilman Michael Jensen said. He said the county could leave the $8 million in the TRCC fund and then use the remaining $12 million to pay for the rising construction costs for the recreation facilities.

However, nobody has prioritized which projects will get that $12 million, Jensen said.

"That would be a big mistake," Corroon said. "I hope we don't have to cross that bridge."

Last month, the council passed a resolution assuring cities that the county will not break its promise to pay out the $63.5 million that the voters approved for the recreation projects.


E-mail: ldethman@desnews.com

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