Orem's proposed 1998-99 $65 million budget includes funding for a new public safety building, citywide lighting, the implementation of a 1 percent transient room tax and issuing $7 million in revenue bonds for a new city golf course.

In addition, a 3.7 percent increase in salaries for city employees is suggested in the new fiscal budget that will increase by $1,152,106 or 4.2 percent if adopted by the City Council.There's no increase in property taxes or in the franchise tax. Only a minor increase is necessary for garbage collection, 8 cents a month per household.

The major focus for capital improvements this year is starting a fund to pay for a $5.3 million public safety building. Leftover money from the unfinished State Street project would be transferred to the building effort - $690,000 - along with transfers from the capital improvements fund, general fund reserves, the self insurance fund reserves and solid waste fund reserves, that would add up to $3.1 million for the 1998-99 budget year.

The remaining $2,165,000 needed for the building would come from the 1999-2000 year budget with perhaps some bonding if city revenues fall short.

It is also anticipated that the city will participate with the Utah National Guard to build a gymnasium in the new National Guard Armory at a cost of $315,000. The city could then share use with the Guard to provide a place for evening recreation program games.

A second annual citywide service project is planned and $35,000 will be set aside to pay for materials that will be needed.

Citywide lighting that would cost $407,000 per year for the first four years and $907,000 thereafter is included as a line item in the budget.

So are two new positions, a part-time senior citizen program manager and an additional public works parks employee.

The revenue bonds for startup costs for the Lakeside Golf Course would fund the construction for the course in southwest Orem without impacting property taxes for Orem residents. City manager Jim Reams said the bonds would basically pay for themselves out of the revenue generated by the course.

The city is also looking at implementation of the Transient Room Tax now that Orem has enough hotel and motel rooms to warrant it. The tax will help defray the cost of providing services to visitors and should generate $50,000 during the coming year.

Another issue is whether to fund the mayor's position as a full-time job with the salary set at approximately $60,000. Funds are not currently allocated within the budget but the council will discuss it at the work session scheduled for April 21.

A public open house on the budget is planned for May 19 with a full public hearing slated for May 26 at 6:30 p.m.

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Additional Information

Budget - Orem

General fund: $28,584,664

1998-99

General fund $27,408,233

1999-2000

Where it comes from:

Property tax: $ 3,555,000

Last year: $ 3,083,772

Sales tax: $12,450,000

Last year: $12,050,000

Franchise tax: $ 3,225,000

Last year: $ 2,850,000

Other revenues $ 8,036,664

Last year: $ 5,243,613

Fund transfers $ 9,466,802

Last year: $ 8,729,899

Land sales and

loan payments $ 962,000

Last year: $ 894,000

Where it goes:

Public safety: $10,989,421

Last year: $10,334,099

Parks & Recreation: $ 8,656,535

Last year: $ 1,511,727

Public works: $26,765,699

Last year: $21,079,738

Streets: $ 2,361,000

Last year: $ 2,160,000

Community devel.: $ 808,868

Last year: $ 1,037,000

Engineering: $ 1,262,957

Last year: $ 1,160,954

Tax/fee

increases/reductions:

None (possible water and sewer rate increases under consideration