Revenues down, but West Valley City avoids tax hikes, layoffs

WEST VALLEY CITY — Total revenues are projected to be substantially lower than 2009 for West Valley City's 30th birthday, but city officials aren't considering tax increases, employee furloughs or layoffs.

The proposed 2010-11 budget was introduced during Tuesday's City Council meeting. Much could change by the time the official budget is adopted and the fiscal year kicks off July 1, but Tuesday's numbers give a fair snapshot of the city's financial situation.

Of the three main revenue sources, property tax is expected to be down the least, by just 1.7 percent. That leaves about $22.3 million in city coffers.

Sales tax revenues are likely to continue taking a big hit, however. Down for almost two straight years, the fund is expected to continue a negative slide of 12.8 percent, leaving $18.7 million in the bank.

Utility taxes also are looking at a decline of about 5 percent, and licenses and permits are projected to be off 19 percent from last year, meaning little new building or business start-ups are expected.

In total, the city budget is forecast to be down $3 million from last year, to $61.7 million. And that was almost $10 million down from the year before.

However, the bond to build City Hall recently was paid in full, leaving about $900,000 more per year to go toward projects and services.

Policing will be one of the hardest-hit departments if the proposed budget is ultimately approved. The fund for community policing is about $60,000 in the red, and money for investigations is down 85 percent, from $47,600 to $6,700. Forensics also has been cut by 20 percent, or $3,250.

The newly formed community preservation department, created to combat neighborhood crime and unkempt yards, also is likely to receive a budget 5 percent lower than it got last year.

Further, all capital expenditures, including a required payment to the fiber-optic venture Utah Telecommunications Open Infrastucture Agency (UTOPIA), have been slashed to zero in the proposed budget.

West Valley is Utah's second-largest city, with nearly 125,000 residents, and was incorporated in 1980.

e-mail: rpalmer@desnews.com