Becker's budget calls for no layoffs, no tax increases

SALT LAKE CITY — A shift to "more sustainable" budgeting in recent years, combined with a gradually improving economy and three months of sales tax revenue from City Creek Center, has Salt Lake City leaders breathing a little easier this budget season.

No layoffs, no property tax increases and no major cuts to city programs are included in Mayor Ralph Becker's recommended budget for the 2011-12 fiscal year.

"The budget I present to you this evening demonstrates the capacity of Salt Lake City to meet challenges," Becker told the City Council on Tuesday night. "Once again, we have managed to find solutions posed by tough times without asking for increases to general-fund revenues. … We have found new and more efficient approaches and … have kept property and sales tax rates for the city's operating budget unchanged."

Recommendations by the mayor and decisions made by the City Council last year included trimming the city's general fund by $18 million and eliminating 67 city jobs. Those deep cuts, along with significant belt-tightening in the 2009-10 fiscal year, moved the city toward a budget that city leaders say is sustainable going forward.

"Economic challenges have pressed us to make tough, thoughtful decisions about how we effectively and efficiently provide city services," Becker said.

The mayor's recommended budget includes only $1.5 million in one-time funds, and most of that money is proposed to cover one-time expenses. That means ongoing revenue sources are in place to cover all ongoing expenses.

"While one-time funding can make a great Band-Aid for near-term challenges, it is ultimately money that will not sustain us," Becker said.

City budget officials have identified $7 million in additional revenue for 2011-12, including a projected $1.9 million boost in sales tax collections. Of that, city officials estimate $300,000 will come from City Creek Center, The Church of Jesus Christ of Latter-day Saints' massive, mixed-use development in the heart of downtown.

City Creek officials are projecting the residential, retail and office complex to attract 14 million visitors a year when it opens March 22, 2012.

"I think everyone is anticipating that City Creek is going to have an enormous attraction value downtown for shopping," Becker said earlier Tuesday.