Official copies of the city's 1990-91 budget are out, and the city's financial picture looks as rosy as back in August when the council adopted the budget.
This year's budget is approximately $73 million, a 10.7 percent increase over last year's budget. The budget increase will be funded through increased revenues, particularly sales taxes. The city's sales tax revenues increased more than 25 percent since 1988-89."So who's carrying the city? It's economic development, isn't it?" Councilman Steve Clark said.
The budget includes pay increases for employees and a property tax decrease for property owners. In fact, according to Budget Officer Keith Haslem, the city's property tax rate is lower now than it was 10 years ago. And, property values are rising in Provo after stagnating for four years.
- The city's general-fund balance was $3.9 million at the start of the fiscal year (July through June) and will be $3.7 million at the end.
- The Freedom Festival is still collecting receipts from the 1990 celebration but has a deficit of $12,000.
- Improvements to runways at the Municipal Airport will create a $14,264 deficit in the airport budget, which will have to be covered with other funds.
- The city's Energy Department has an $11 million reserve; $7 million of that reserve is earmarked for bond repayment and can not be used. About $1.5 million is working capital. The remaining funds are a cushion to cover unexpected equipment replacements or other expenses, such as a lawsuit.