MIDVALE — City officials have recommended to the Midvale City Council that property taxes be increased by about 6 percent for the 2009-10 budget year.

The report recommending the change was written in light of an expected $700,000 deficit in the 2008-09 year, said Midvale City Manager Kane Loader.

Midvale, like most cities in the Salt Lake Valley, has seen major drops in sales-tax revenue and new growth funding due to the national economic climate.

City staff also recommends that Midvale dip into its rainy day fund, or fund balance, to remain in the black this coming year. The fund is currently set at 15 percent of revenues but by law could drop to 5 percent. Midvale staff is recommending the 10 percent level.

The only other choice for Midvale would be reduction of services via staff layoffs or furloughs, Loader said.

The City Council will hold public hearings on the budget in June. If the council votes to pursue the property-tax increase, it could also be required to hold August hearings.

If approved, the 6 percent increase would come on the heels of a 12 percent increase in 2008-09. Its total cost to taxpayers was projected at about $35 per year for the average home.

The 6 percent increase in 2009-10 would cost residents about $13 more in property taxes on the average home, according to city figures.

Loader defended the proposed tax increase by saying city employees will also be bearing some of the cost. Insurance and health-care costs for city employees will jump $500-$800 this year, he said.

E-mail: rpalmer@desnews.com