Provo council OK's budget 'rough draft'

PROVO — A proposed $156.8 million budget for the 2009-10 fiscal year passed Provo City Council scrutiny Tuesday.

In order to balance the city's general fund, more than $1 million will need to be transferred from utility funds.

The proposed general-fund budget balances at $45.3 million, down from last year's adopted $50.9 million budget because of declining sales-tax revenue.

The final 2009-10 budget is slated for council approval June 16, but it could see more changes, officials said.

Councilman Steve Turley called the budget document a "rough draft."

City officials trimmed $1.6 million in operational costs but still came up short in the general fund by more than $1 million. Then the council decided to add its $855,000 list of priorities, described by council financial policy officer Dirk Anderson as mostly studies for projects such as a new community center and revitalizing downtown.

Anderson said he expects to see the council priorities and totals reduced before the budget is adopted.

"This is not a wish list," Councilwoman Sherry Hall Everett said. "It is a product of key strategies. One is to grow revenue to provide services and quality of life and to position the city to compete. It requires an investment."

Potential changes could involve melding the public works and community development departments to create a more collaborative environment for residents using city services.

The proposed budget has employees paying more for health insurance to meet a $950,000 cost increase, saving the city $245,000. The city is also freezing merit-, cost-of-living and career-series increases, but it is not laying off any employees.

The city could gain roughly $200,000 from a potential power rate increase of 2 percent starting April 1, 2010.

Provo budget highlights

General fund: $45.3 million

Property tax: No increase.

City employees: No layoffs.

City services: No change.

Employee raises: No merit-, cost-of-living or career-track pay increases.

Final public hearing: 7 p.m., June 16, Provo City Council Chambers, 351 W. Center.

E-mail: rodger@desnews.com