Orem should be able to meet its financial needs for the next few years, but that could change in four or five years unless the situation is monitored.

That is the conclusion of a recently released five-year economic forecast by Orem's Administrative Services Department."Right now, it doesn't look too bad," said Phil Goodrich, director of administrative services. But a deficit could develop further down the road.

"Also, other departments could come and say they have other needs," Goodrich said.

This is the fifth year that the city has prepared the report, which is based on some assumptions of inflation rate and growth, in order to help the City Council make decisions for next year's budget.

According to the report, "every attempt has been made to present accurate data and calculations."

There are some thorns in the forecast and one of them is the Orem Fitness Center.

According to the forecast, the city could face nearly a $50,000 deficit on the facility by 1996.

"We still have to look at this closely," Goodrich said. Basic problems are in operations and personnel.

Recreation center manager Jerry Ortiz said growth of Utah Valley Community College may have some effect on the number of patrons to the recreation center.

"But probably not too much," he said. UVVC uses the facility for racquetball and scuba diving and, as far as Ortiz knows, the college is not planning to build their own facilities for these sports.

Other areas of expenditure for the city are consistently rising, but the revenues match the increases.

For example, the solid waste fund, which provides for garbage pickup in the city, will probably not have any excess revenue over the next five years. Goodrich said any extra will be put back into the fund to maintain and repair garbage trucks and provide and replace cans for those residents who ask for them.

Other areas included in the survey were the sewer and water systems, the road fund and the capital improvement fund.

For 1991, the city has put more than $5 million in the capital improvement funds to improve Orem city streets.

But, according to Goodrich, that fund will decrease substantially in the future.

"There is nothing major in the works right now," he said.

Mayor S. Blaine Willes pointed out that this report was an indicator of issues for the city to look at and no final decisions have been made.


(Additional information)

General fund forecast

Revenues Expenditures Difference

\ 1991 $15,712,000 $15,712,000 0

1992 15,988,000 15,988,000 0

1994 17,341,000 17,337,000 4,000

1996 18,764,000 18,808,000 -44,000

Projected funding for Fitness Center

1991 $822,313 $822,313 0

1992 801,800 801,800 0

1994 839,054 860,560 -21,506

1996 879,241 926,623 -47,381