Park City budget plan avoids deep cuts so far

PARK CITY — Cuts to the Park City budget have not been very painful so far, but swift rapids could be just around the bend for municipal finances in this trendy ski town.

Choppy waters could come in the form of decreasing sales-tax receipts and the failure of two major property management companies, said city staff and elected officials.

Despite worries, the proposed city budget for fiscal year 2010 keeps in place 2 percent employee raises and bonuses, even for elected officials. The wage levels were increased despite $3.2 million in cuts citywide.

"We try to balance everything, even with the economy down a bit, in terms of our trying to keep a top-notch staff," said Park City Mayor Dana Williams.

The city budget department justified the raises — rare among Utah municipalities this year — by pointing out an increase to employee health-insurance costs.

"It's something we can do to show employees we're still trying to look out for you," said budget officer Bret Howser, adding the changes amount to "a wash" for most employees. "We thought that it was real important for us to try to hold our employees whole."

The proposed budget reflects about 5 percent cuts from each department.

However, the city manager rejected about $600,000 of those cuts, citing the need to maintain current service levels.

In light of sales-tax receipts down 30 percent from a year ago, city departments have planned to trim up to 10 percent. The city is expecting economic woes to continue for at least another 18 months, Williams said.

The city is also taking a hard look at its capital-improvement plans. Projects that are moving forward include an affordable housing development, trail building and road reconstruction. Staff has recommended turning down a "discretionary" project that would add new lighting and a speaker system on Main Street.

The city may have to pull back on plans to rebuild a racquet club and fitness center, Howser said. Alternatively, it could sell bonds for the project, thereby taking advantage of low construction costs.

"We think we're kind of in the 'Warren Buffet' position where we can make strategic decisions and kind of buy in this market," Howser said.