Without resorting to a general tax increase but proposing a few small fee hikes, Salt Lake Mayor Deedee Corradini has managed to put together a proposed 1994-95 budget that is slightly larger than last year, adds more police and upgrades the culinary water system. For this fiscal wizardry, the mayor deserves both admiration and congratulations.
Of course, the extra money has to come from somewhere, so not everybody is going to be happy with some of the proposals. But generally, the budget looks tight and efficient - the result of several years worth of strug-gling to slash expenditures and still maintain services.The budget calls for ongoing general fund expenditures of $94.5 million, some 3.5 percent more than last year, plus $9.3 million in one-time outlays that may extend beyond the budget year if the expected money does not become available as quickly as expected.
In each of the past three years, the growing cost of continuing services has left the city with a projected revenue shortfall - $4.2 million in fiscal 1992-93, $1.7 million in fiscal 1993-94 and $1 million for 1994-95. That's just to stay even each year.
That clearly marks a steady improvement. To make up the shortfall - and to add 17 police officers, buy $2.5 million worth of high-tech crime equipment and start renovating a dilapidated water system that needs $110 million in repairs - Corradini has taken some of the same approaches as in previous budget years.
These include a relentless cost-cutting, reorganizing and belt-tightening approaches that are expected to save $2 million in general fund operating expenses for fiscal 1995.
The rest of the money will come from:
- Doubling the hotel room tax from 1 percent to 2 percent, thus producing an additional $1 million. That would still leave hotel room rates near the bottom of cities with which Salt Lake City competes for conventions.
- Close a loophole in utility franchise tax laws that allow large users - which once paid the tax - to escape the levy by buying natural gas in the production fields. This change could produce another $650,000.
- Impose a 2 percent fee on gross receipts of long-term parking businesses, mostly at the Salt Lake International Airport, thus raising another $200,000.
Money for starting work on the water system would be obtained in a complex shuffling of storm drain fees and water rates. The ultimate result would be that city users would pay in accordance with the water they actually use.
For a fourth of city residents, this could mean smaller water bills. Another fourth might see no meaningful change. The rest would likely face higher water costs. The mayor also is seeking to discourage wasteful water use and wants a token 2-cent increase in the current 64-cent user charge levied during peak water-use months in summer and fall.
All told, the budget is an impressive piece of work, nicely balanced between cost-cutting, finding new revenue sources and financing badly needed facilities and police protection.
However, such an accolade fails to adequately describe the struggle the city has faced and will continue to face in serving a population of commuters and visitors that is twice as large as the number of actual taxpaying residents.
Fortunately, Utah's capital city seems to be staying afloat and even making some small progress. Not every city of significant size can say the same.