Local governments along the Wasatch Front may get help covering the costs of the 2002 Winter Games from an unexpected source — the Salt Lake Organizing Committee, which is now willing to come up with as much as $15 million.
That is if the Utah Legislature agrees to take the sales tax off Olympic tickets. Making the tickets tax-free would add $13 million to the organizing committee's budget, money that SLOC President Mitt Romney would pass along to communities where venues are located.
Ticket prices, already set by the International Olympic Committee, wouldn't change if sales tax is not charged. That means SLOC would keep what would have been sales tax revenue.
There's already $2 million in SLOC's budget for so-called "outside the fence" security costs and another $23 million for security inside the venues. What's been an issue is who pays for the additional expenses beyond the venues, such as assigning additional traffic officers or street patrols during the Games.
If the sales-tax exemption is approved by lawmakers, the organizing committee would commit to securing all of the money that venue communities need for police and other public safety services, Romney told members of the SLOC Board of Trustees and Management Committee Thursday.
Organizers hope the rest of the money needed to help local governments pay for security will come from the federal government. Even with SLOC's contribution of $15 million, that could still add up to as much as another $15 million.
But Romney told trustees there's little chance of getting federal funds unless the state is willing to help out too. Especially since some congressional leaders are complaining Utah already has received more than its fair share of federal dollars.
Providing the additional security needed during the Games is the single biggest expense faced by state and local governments, although there are other expenses such as snow removal, trash collection and health inspections. Those were not addressed Thursday
Members of the SLOC Management Committee didn't vote on Romney's proposal to take the sales tax off Olympic tickets but did endorse his resolution calling for organizers, venue cities and the state to come up with a solution quickly. That means during this legislative session.
Salt Lake Mayor Rocky Anderson said he was encouraged to see that the issue was finally being addressed, though he didn't get all he wanted. Attending his first meeting as a trustee, the new mayor failed to get a vote on a resolution spelling out the state's responsibility to the city for Olympic costs.
Salt Lake City Councilman Keith Christensen, who also sits on the SLOC Board of Trustees, was pleased both with the new emphasis on helping out venue cities and Anderson's role in it.
"I thought it was a very good step forward," he said. "I was pleased that SLOC management took the initiative. It's really the first time in a public forum, where anyone had to make a decision, that they did make decisions on it."
That's because Romney, if nothing else, is a good politician, said City Council Chairman Carlton Christensen.
"He was smart enough to read the writing on the wall and act on it," he said.
Anderson has met repeatedly with Romney, legislative leaders and Gov. Mike Leavitt to get more money going to venue cities, which will be facing millions in increased costs due to providing services during the Games.
"There's probably some credit that needs to be shared with Mitt and his staff, but Rocky is raising the issue," Keith Christensen said. "I was pleased with Rocky's involvement today."
And it's about time this was addressed, Christensen said. Since the federal government will almost certainly require the participation of state government before it steps in to help, the Legislature must decide this session how to assist venue cities.
"The matter must be resolved, and it must be resolved this year," he said.
In Salt Lake City's case, city officials have estimated that total city expenses to provide municipal services before and during the 2002 Games will be $22.8 million. They anticipate that about half of that will be covered by existing city budgets, grants, sponsors and other sources of revenue, leaving $9 million to $11 million that yet needs to be funded.
That's what Anderson and his City Council are fighting for from SLOC and the state.
Anderson made his point by abstaining on a vote to accept the Boyer Co.'s offer to turn a plaza planned for the Gateway project into an Olympic legacy park to honor donors and volunteers. The mayor said the $4.5 million gift could cost SLOC $1 million, money that might be used to reimburse the city.
The city still needs to approve the project, which was offered by the Boyer Co. as part of the organizing committee's drive to raise million-dollar contributions from the state's wealthiest citizens. If the project is approved, Boyer Co. partner Kem Gardner is not expected to also give the $1 million he pledged.
The Governor's Office of Planning and Budget projects Salt Lake City will receive $5.6 million in Olympic-related tax revenue in 2002 and the years preceding. The city will also receive $5 million in sales tax reimbursement, its share of the $59 million in state and local taxes diverted to the Utah Sports Authority to build Olympic facilities.
Deseret News staff writer Alan Edwards contributed to this report.