A public health nurse shortage, a new tax on rental cars and the possible loss of sales tax on food are among Salt Lake County's midyear budget issues.
County officials opened the budget books Monday to compare revenues with projects and to consider new requests for county funds.The County Commission is poised to implement a 3 percent rental-car tax that was approved earlier this year by the Legislature. The tax is expected to generate between $1 million and $1.5 million and would be used to enhance Salt Palace revenues that would drop by about $1 million when Larry Miller moves the Utah Jazz and Golden Eagles out of the Salt Palace arena.
Commissioners plan initially to use the tax revenues for Salt Palace renovation or expansion and then use later revenues for Salt Palace maintenance and operation.
County officials also may take over the collection of hotel room taxes that now are collected on the county's behalf by the state.
According to the County Auditor's office, the county could collect the taxes directly for one-half percent less than the state's 2.5 percent administrative fee. Based on the county's 1989 hotel, or transient room tax collections of $3,176,160, the county could also make an additional $45,000 in interest if it collected the tax directly.
Commissioners also are reviewing requests for additional funds from several county departments.
In a Monday letter to the County Commission, City/County Health Director Dr. Harry Gibbons said 10 of the department's nurses have resigned in the past five weeks and he needs at least $92,000 added to his budget to make nurses' salaries competitive.
Sheriff Pete Hayward also has requested an additional $260,000 to meet court-ordered inmate limits at the county jail and for patrol and undercover drug and vice investigations.
Requests from other county departments are also part of the midyear review.
The commission is also assessing the estimated $2 million loss the county would see in its municipal services budget if the November ballot initiative to remove the sales tax on food passes.
Commissioner M. Tom Shimizu said sheriff's patrol, fire and highway budgets would feel the greatest impact of the reduction. "If we continue to cut that, then the services we lose will come back to haunt us," he said.
With some fire-department equipment already more than 30 years old, Shimizu said the county would have to find a way to replace the $2 million if food taxes are cut. "We've cut back to the point that we would have to make it up somehow."