Midvale proposes 15 percent property tax increase, layoffs to balance budget

MIDVALE — This "city in the middle of everything" also is in the middle of a perfect budgetary storm.

Sales taxes are projected to be down by about $3 million from 2009, and with other revenues following the same trend, the city administration has proposed a 15 percent property tax increase for the 2010-11 budget year, which starts July 1.

That amounts to an increase of $26 per year on the average Midvale home and $1,000 more per businesses worth about $1 million, said longtime Mayor JoAnn Seghini.

"Employees are doing everything they can, but we're asking the community to do a little," Seghini said. "We're out of money. … We even cut out the fireworks for Harvest Days."

The city of about 28,000 is in dire straits, although building permits are at an all-time high, according to city finance director Laurie Harvey. The fees for new construction in what was a contaminated Superfund site only amount to about $425,000, and the city does not charge impact fees to developers, Harvey said.

In addition to the proposed tax increase, the city has laid off seven employees, including three police officers and a firefighter. City officials also are asking employees to pay any increases in their insurance costs — about 10 percent of the total.

The proposed budget includes a sales tax bond payment to Utah's Telecommunication Open Infrastructure Agency and a $40,000 increase from expected implementation of the good landlord program.

Overtime shifts for intoxicated driver patrols also would be eliminated under the proposal unveiled Tuesday to the City Council.

On a positive note, many of Seghini's pet projects, such as sewing classes for Latina moms, a school for toddlers and teen pregnancy intervention, are being continued because of their grant-based funding. The city works actively to secure funding for the community outreach programs, she said.

"We just really have cut out everything that could be cut," the mayor said. "It's the only game in town."

Because of the property tax increase and a proposed 5 percent increase on water in some parts of the city, the city will be required to undergo special hearings in August.

The final budget could change dramatically between now and then. For example, Midvale last year proposed a 6 percent property tax increase but never implemented it due to falling property values.

Midvale's proposed budget for 2010-11

General fund: $17.1 million, a 14 percent decrease from 2009-10

Property tax: 15 percent increase

City employees: Layoffs of three police officers, a secretary, a community planner, a firefighter and a public works employee

City services: No fireworks for summer celebration; decreased public safety services

Employee raises: None; city contribution to employee insurance and retirement cut

Next public hearing: June 1, 7 p.m., 655 W. Center

e-mail: rpalmer@desnews.com