City finance director Kay Driggs says the city's financial status is "not wholly alarming but not comforting either" as the city passes the halfway mark in the current fiscal year.
Revenue collections have not kept pace with expenditures so far, Driggs said."We've got to be on our toes and ever alert to the city's financial situation and really keep on top of it because we don't have much latitude," Driggs told the Deseret News.
Four departments have spent well over half their budgets because of one-time expenditures made in the first six months of the fiscal year. The Pleasant Grove Ambulance Association's budget stands at 119 percent because of a large lease payment on the city's new ambulance.
Driggs said the association expects to receive a state grant within two months, which will help bring its budget back in line.
"At least we think we know why (the budget is over) and that it will remedy itself before the year is out," Driggs said.
The city shop, which purchased new tools earlier in the year, has spent 89 percent of its budget.
"They just won't spend any more money," Driggs said.
The city horticulture budget is 58 percent spent, reflecting the purchase of two greenhouses and some supplies. And the Parks Department, which is most active during summer months, has spent 64 percent of its budget.
It is typical for both the parks and horticulture budgets to begin dwindling at this point in the fiscal year.
Still, Driggs is concerned about the flow of revenue into Pleasant Grove.
"We're pretty well on track with sales tax and franchise tax as far as what was budgeted," he said. "I'm just not very comfortable with the property tax collections."
Property tax collections have declined due to higher property values which have required the city to lower property tax rates in order to comply with the state's truth-in-taxation law, Driggs said. In 1987, the city's property tax rate was .003265; in 1990 it was .003220.
In 1985, assessed property taxes in the city were $719,000, while in 1989 assessed property taxes were $699,000 - despite growth in the city, Driggs said.
Pleasant Grove is considering increasing franchise taxes, which can be done without a public hearing, to ease its financial pinch.