SANDY — A discrepancy between estimated population figures and actual census results could cost this city almost $2 million annually.
The major part of the loss would come from state sales tax revenue, which Sandy officials estimated could amount to more than $1.4 million each year.
The state distributes a portion of sales tax revenues to municipalities based on their percentage of the state population. Additionally, the city could lose $400,000 in state road funds that are distributed based on population figures, city officials said in a press release.
The recent census results put Sandy's population at 88,418, despite 2000 Census estimates that had the city's population at 101,853. The estimates were based on the 1990 population of 75,058 and then adjusted upward based on residential development.
Sandy officials said they plan to formerly appeal the Census Bureau findings, although the bureau will not hear any appeals until after June 30. Prior to that appeal, the city will look at the boundaries and housing types used for the census study.
While the loss of revenue could force a "belt tightening" in the city, officials will continue to employ their conservative budgetary approach to ensure that residential services do not suffer, according to the news release.
Also, the city could potentially save money because infrastructure expenditures are based on population figures.
While a loss in revenue will hurt Sandy's take from state funds, the continued growth of Sandy will not slow because of the lower population figures, Economic and Development Director John Hiskey said.
"We had anticipated that we were (over 100,000)," Hiskey said. "It was a surprise, but for my area of focus, it will continue to grow."
E-MAIL: jloftin@desnews.com