Bluffdale adds franchise tax to help offset budget woes

BLUFFDALE — The Bluffdale City Council passed a franchise tax Tuesday that will cost residents an average of $14 per month.

The tax will be levied as a 6 percent increase on residents' power and gas bills to help close a $300,000 deficit in next year's budget.

"My contention is that we could have still got by without it with more cutbacks," said Councilman Bill Maxwell. "I don't think people are going to be real happy about this."

The tax can't officially be levied for another three months, so about 2,200 Bluffdale customers can expect to pay normal rates until this fall.

Maxwell and Councilwoman Nancy Lord voted against the tax, but swing voter Rod Flanigan, who voted against it last week, raised his hand of approval Tuesday night.

The new tax, which is estimated to bring in about $250,000 next year, didn't completely close next year's $300,000 budget shortfall. The city also had to cut $78,000 in funds from the mayor's and City Council's accounts that elected officials traditionally used for training and traveling purposes.

Now, the only city in Salt Lake County that has not enforced a franchise tax on energy utilities is Cottonwood Heights.

"My hope is that we'll repeal this when we get back on our feet," Maxwell said. "But I've seen a lot of these (taxes) over the years, and they don't ever seem to come off."

— Jacob Hancock