Spanish Fork will increase budget

Spanish Fork will increase budget

SPANISH FORK — While cities across the state were trimming budgets to meet falling incomes, the general fund in Spanish Fork went up.

In November, the city increased its general fund from an initial $14.6 million to $15.3 million to account for several unfinished projects that dated back to 2008, city finance director Kent Clark said.

The proposed general-fund budget for the 2009-10 fiscal year is $15.2 million.

Unfinished projects from 2008 included work at the Pioneer Cemetery, the city's sports park and a parking lot at the fire station, Clark said.

City employees can expect no layoffs, but no merit pay increases. Most employees will get a cost-of-living pay increase based on their salary range, Clark said. Some positions are remaining empty as employees quit or retire.

Sales-tax revenue has dropped substantially, from about $4.3 million to $3.8 million. Building fees peaked in 2007 at $1.3 million, but then fell in 2008 to $680,000. This year, they dropped to $470,000, where they are expected to remain through 2010, Clark said.

No property-tax increases are planned, even though collection rates in Utah County are falling, he said.

The City Council is scheduled to adopt the budget Tuesday.

— Rodger L. Hardy