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Orem's City Council took it's first look at a proposed $23- million budget for 1989-1990, which could raise residents' utility bills and franchise taxes.

The council listened to a presentation on the proposed budget Tuesday and will have several work sessions and public hearings before final decisions are made.-The council will consider 12 issues in the budget:

Should the city begin funding the adopted storm system master plan to create a system that would handle runoff better? The city staff suggested funds could be raised by increasing the mill levy by one mill or increasing the franchise tax by half a percent. The project would require about $450,000 per year for the next 15 years.

-Should the city continue supporting the Chamber of Commerce at the current level of $20,000 per year? In the past, the Chamber has developed programs for Orem on tourism, business retention, business education and community promotion.

-Should the city's general fund and capital improvement fund be enhanced by an increase in franchise tax from 3.5 percent to 4.1 percent?

-Should the Fitness Center outdoor program fees be maintained at current levels?

-Should additional street lighting be added at major intersections? The city staff recommends no additional lighting at this time.

-Should the city increase its snow removal services? The staff recommends no increase.

-Should fees and charges continue to provide a share of operating costs across the city?

-Should the fee structure established for enterprise funds be automatically adjusted annually to offset inflation?

-Should a citywide equipment replacement program be established?

-Should the city establish an automated solid waste collection program costing $324,000 and increasing residential bills by $1.80 a month? The staff recommends the program be established.

-Should various portions of the recently completed community strategic plan be implemented?

-Should 4.5 new positions be created to enhance city services? Total salaries would be $114,953.

The council will be required to approve a final budget before the next fiscal year begins in July. Before the budget is passed, the public will be invited to share its input at several hearings.