PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH
REGULAR SESSION
THURSDAY, AUGUST 4, 1988
The City Council of Salt Lake City, Utah, met in regular session on Thursday, August 4, 1988, at 5:00 p.m. in the City Council Chambers, City Hall, 324 South State Street.
The following Council Members were present: Florence Bittner Tom Godfrey Wayne Horrocks Roselyn Kirk Sydney Fonnesbeck Willie Stoler Alan Hardman.
Mayor Palmer DePaulis, Kathryn Marshall, city recorder, and Lynda Domino, chief deputy city recorder, were present. Roger Cutler, city attorney, was absent.
Councilmember Godfrey presided at and conducted the meeting.
PUBLIC HEARING
Fiscal Year 1988-89 Budget and Tax Rate.
RE: A public hearing at 5:00 p.m. to obtain comment concerning the tax rate increase.
ACTION: Councilmember Kirk moved and Councilmember Stoler seconded to close the public hearing, which motion carried, all members voted aye.
Councilmember Stoler moved and Councilmember Kirk seconded to adopt Resolution 98 of 1988 approving the tax levy and final budget adopted on June 13, 1988, following completion of the hearing required by Chapter 2, Title 59, Utah Code Annotated (1953 as amended), which motion carried, all members voted aye.
DISCUSSION: Councilmember Godfrey said the purpose of this hearing was for public comment about Salt Lake City’s budget for the Salt Lake City Library and General Fund. He said that state law required public notice and an opportunity for public comment if an entity increased taxes to bring in revenue which exceeded the revenue that would normally be generated due to growth. He said the tax rate adopted for the Salt Lake City Library exceeded the certified rate and he stressed that the Salt Lake City Council had made every effort to stretch the city’s resources to meet the needs of the citizens.
He said the city’s budget for Fiscal Year 1988-89 was about $230,000,000 of which $79,716,486 was for the general fund and this amount was about $1.8 million lower than the general fund budget approved by the City Council last year. He said the library presented to the Council legitimate, pressing, and significant resource needs. He said the physical plants of the libraries were in serious need of upgrading and repairs and there was a problem with inequity in pay for the staff. He said the staff was paid an average of about 16% below comparable city positions. He said the tax rate being discussed at this hearing was an attempt to deal with the libraries’ problems. He said the tax rate increase amounted to about $3.44 per year on a $70,000 home.
Lance Bateman, finance director, said the general fund paid for most city services, such as police and fire protection, public works, parks and recreation, planning, building and housing code enforcement, and general administration. He said when they started to prepare the budget the Mayor told them that there would not be a tax increase. He said the revenues were $1.8 million short of what they started with the prior year since franchise taxes were down $300,000, sales tax was down $300,000 and property tax was down approximately $270,000.
He said they presented a budget to the City Council that was $1.2 million down from the prior year, plus 34 employee positions had been cut and city employees would not receive a salary increase. He said when they received the final property tax numbers from the county auditor’s office the assessed valuation was substantially below what they had projected which required an additional 2.2% in cuts. He also said the county’s numbers indicated that the amount of new growth they would receive under the maximum certified rate was only $9,553.
He said the county-assessed changes had caused a decrease in the commercial area and the state-assessed changes, which included utilities, railroads and mining, had caused a decrease in commercial which meant there was a major shift in the Salt Lake City tax base from commercial to residential. He said even with the negative impacts during this budget process, the adopted general fund budget did not exceed the certified tax rate increase and the increase in the certified rate was for necessary additions to the library’s budget.
Cam Caldwell, Council Staff, outlined the 1988-89 general fund budget cuts, revenue increases, and increases to the Mayor’s budget (attached as Exhibit A). He reiterated that the general fund which was approved by the Council was less than the 1987-88 general fund budget and the Council approved a library budget which was $517,368 more than the 87-88 budget; a 10.3% increase. He said this budget increase would fund high priority capital improvements, would resolve the inequitable compensation plan identified in a classification study conducted by the city, and would also purchase additional books and supplies.
Dennis Day, director of the library, presented a summary of their budget request for 1988-89 (attached as Exhibit B). He said the largest portion of the increase was earmarked to fund a long-term capital improvements program developed to address the needs of the library facilities of Salt Lake City over the next 10 years. He said this would be a pay-as-you-go program.
The following people spoke in support of the tax increase for the library: Joseph Bauman, 909 South 20th East, said books were important and necessary. Patricia Miller, 1494 West 800 South, said Salt Lake City’s library system was unique and excellent, and cut across economic boundaries. Gerald McDonough, 1997 South 800 East, said we lived in the age of information and without the best services of the best libraries we couldn’t compete. Cary Stevens Jones, Utah Arts Council, said the exhibitions provided emerging and established artists an opportunity to show their work. Allen Dodworth, 1013 South Thirteenth East, said he was an avid supporter and user of libraries and thought they were a crucial resource.
Elizabeth Montague, 657 I Street, former library board member, said the libraries were being operated at peak efficiency and there was a tremendous increase in library use. Lenora Berendt, 820 3rd Avenue, said she consistently benefitted from the libraries because she was a student. Melene Rose, 547 South 1200 East, said she was a frequent user and the library provided her with journals that she used in her business but couldn’t afford to purchase. She also said libraries provided meeting rooms and audio/visual equipment.
Joe Dickinson, 674 7th Avenue, said cultural and intellectual resources were an important component in recruiting and retaining talented young people. He said the library was an asset and the increase was a modest cost for what it provided. Mary Duffy, 3366 Channdra, said she was a school librarian at Judge Memorial High and said public libraries were an adjunct to the services provided in the schools.
Helene Fairchild, 40 South 900 East, said she was retired and used the library rather than buying books. She said she worked as a volunteer and many retired people used the library. Le Fuller, 75 N Street, said the increase was less than the cost of two paperback books plus the library offered access to entertainment and educational resources. She thought for the money they were getting a bargain.
Jim Byrne, 912 Foothill Drive, said library services were essential and this increase was small. Gayle Weyher, 167 South Main, said the library provided services for her in her business. Councilmember Godfrey read the names and comments of the following people who supported the tax increase for the library but they did not wish to speak: Gail Bullock, 4752 Kathleen Avenue; David Bullock, 4752 Kathleen Avenue; James Giauque, 3538 Eastwood Drive; Carolyn Taylor Harmon, 266 4th Avenue; Cynthia Char Ong, 2091 Laird Drive; Jay Brummett, 650 Brittany; Wanda Mcdonough, 754 West 3600 South, Bountiful; Jody Plant, 68 K Street; Steven Taft, a teacher; Virginia Mc0mber, 1389 Military Way; Miriam Zabriskie, 1551 Michigan Avenue; Nanette Ferguson, 957 Hudson Avenue.
These citizens’ comments reiterated previous comments. Sherrill Sandberg, coordinator of the Utah Arts Council visual arts program submitted a letter of support.
The following people opposed the tax increase: Joseph Pace, American Towers, said he hoped that the Council would set forth a plan to overcome a dying city and be prudent. He said he hoped there would be a day when the number of people needed to operate government would decrease. Howard Stephenson, Utah Taxpayers Association, was concerned about the timing of the tax increase and said he felt it would have a negative impact and more people would vote for tax limitation.
C. J. Wilkinson, 1400 South 10th East, agreed with an increase for the library but recommended another source for funding. He thought this was an inopportune time for a tax increase. Bob Fisher, 2172 Hannibal, thought the Council should look at cutting costs.
Nolen Isom did not wish to speak but submitted comments opposing Salt Lake City police officers using cars on off-duty hours for personal use. He commented that maintenance time and taxpayers’ money could be saved.
Councilmember Stoler said he received a call from a lady who was angry about the tax increase until he explained that it was for the library and then she changed her opinion.
(B 88-4, B 88-5, O 88-21)
The meeting adjourned at 6:20 p.m.