Tax hike unlikely in Provo

PROVO — Provo Mayor Lewis Billings is relying on the principle "live within your means" to guide his proposed 2006 Provo budget.

"We can spend money a lot of ways," he said, "but the reality is there's not a lot of money to spend."

Although Provo has planned almost $146 million in expenses, Billings said he won't raise taxes, which means the city must carefully watch its spending.

David Croff, assistant finance director and budget officer for Provo, said the total revenue is expected to be close to $131 million, plus almost $29 million in transfers between funds.

Thanks to frugal spending and debt elimination, the city was also able to save $2 million last year, giving the general fund a boost.

Thanks to the "extra" $2 million, almost $1.4 million will be added to what the city already spends on personnel, mostly in the form of medical insurance. The city will also provide a 1.5 percent cost-of-living adjustment for its employees — a boost over last year's 1 percent adjustment.

Another chunk of the general fund, $47,000, will be used to increase the capital improvements fund, which creates things such as parks and the proposed $8 million Provo Performing Arts Center.

The capital improvements fund is one reason a budget can look inflated, Billings said. Although Provo's 2004 budget was similar at $146 million, the 2003 budget was a much slimmer $119 million.

However, if the $30 million Provo has planned for capital improvements is taken off, the numbers become more balanced.

For 2006, half of the $30 million Provo has allotted for such projects will go to fund infrastructure set up for iProvo, a citywide project to get every home and business hooked up to a broadband, fiber network.

Other big budget guzzlers include a gas allocation, with the addition of an extra $150,000 to the gas budget to compensate for rising fuel prices and a large vehicle fleet to feed.

And like gas, water is also a precious commodity. Although taxes will stay the same, water prices will increase 6 percent for Provo residents, beginning July 1.

Billings said while the city wants to stay competitive with its rates, it is still important to provide quality service that residents have come to expect, and that service comes with a cost.

Other key purchases in the spending plan include 16 new police cruisers, five new heavy-duty ambulances and four new fire trucks. The technology budget also gets a boost with a newly created computer fund of $289,000 to replace old equipment every three years.

But the budget isn't final. Billings will meet with the City Council and have public hearings to get input on the proposed financial road map.

Copies of the budget can be found at the public library and the mayor's office or a summary letter is available at www.provo.org/mayor.2006budget.html.

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E-mail: sisraelsen@desnews.com