PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH
THURSDAY, JULY 5, 1984
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET IN REGULAR SESSION ON THURSDAY, JULY 5, 1984, AT 5:00 P.M. IN ROOM 211 OF THE CITY AND COUNTY BUILDING.
ON ROLL CALL THE FOLLOWING COUNCIL MEMBERS WERE PRESENT: RONALD J. WHITEHEAD EARL F. HARDWICK GRANT MABEY ALICE SHEARER SYDNEY R. FONNESBECK EDWARD W. PARKER.
Councilmember Davis was absent from the meeting. Albert Haines, chief administrative officer, was present at the meeting. Mayor Ted L. Wilson was absent from the meeting.
Council Chairperson Ronald Whitehead presided at and conducted the meeting.
PETITIONS
Petition 400-200 of 1984 by Southland Corporation.
RE: The rezoning of portions of the property located on the northwest corner of 1700 South 900 West from an “R-2” to “B-3 classification.
Councilmember Shearer moved and Councilmember Parker seconded to schedule a public hearing for Thursday, July 19, 1984, at 5:00 p.m. to discuss this petition, which motion carried, all members present voting aye.
(P 84-41)
DEPARTMENTAL BUSINESS
DEVELOPMENT SERVICES
#1. RE: The Urban Development Action Grant application of Triad Inc.
Councilmember Shearer moved and Councilmember Parker seconded to schedule public hearings for Thursday, July 12, 1984, at 5:00 p.m., and Thursday, July 19, 1984, at 5:00 p.m., in Room 301 of the City and County Building, to discuss this UDAG, which motion carried, all members present voting aye.
(T 84-15)
FINANCE AND ADMINISTRATIVE SERVICES
#1. RE: Amending the employee compensation plan adopted June 12, 1984, relating to three issues dealing mainly with the fire department.
Councilmember Shearer moved and Councilmember Parker seconded to schedule a public hearing for Tuesday, July 10, 1984, at 6:15 p.m. to discuss the amendments to the compensation plan, which motion carried, all members present voting aye.
(O 84-15)
#2. RE: The issuance of Industrial Revenue Bonds to finance a project under the Utah Industrial Facilities Development Act and authorizing the execution of a memorandum of agreement by and between International Center Hotel Associates, Ltd. and the City of Salt Lake, Utah.
Councilmember Shearer moved and Councilmember Parker seconded to schedule a public hearing for Tuesday, July 10, 1984, at 6:00 p.m. to discuss this IRB, which motion carried, all members present voting aye.
Larry Moore, bond counsel, explained that these bonds are not general obligation bonds and the inducement resolution/memorandum of agreement is non-binding. Mr. Moore felt that this would be a valuable project which will employ 300 people and will serve a vital need in an area that is expanding as a commercial and office center. It was Mr. Moore’s opinion that the project qualifies under the new federal legislation and he said that the required fee has been paid. A representative from the company showed renderings of the proposed project which is to be located at the International Center. He explained that the project is a hotel which will have 195 rentable rooms, meeting rooms, and restaurant. The requested amount for funding is $9,000,000 and construction of the project will be started as soon as possible.
Lance Bateman, finance director, addressed the issue of the new legislation and the ceiling which has been imposed on the amount of money allocated to each state. He said that Salt Lake City’s share would be about $12,000,000 this year. Mr. Bateman suggested that the inducement resolution should contain language which will not bind the city to a specific allocation for this project. Mr. Moore explained that some areas in the state will not use their allocation of IRB money so the city could get more funds. He said that the requested $9,000,000 may be more than is actually needed. Mr. Moore explained that inducement resolutions approved prior to June 19, 1984, would not be counted against the city’s allocation under the new ceiling.
(Q 84-13)
PUBLIC HEARINGS
Tax Levy
RE: A resolution determining the rate of tax levy and levying taxes upon all real and personal property within Salt Lake City, Utah, made taxable by law, for the year 1984.
A public hearing was held at 5:00 p.m. to discuss this issue. Albert Haines, chief administrative officer, explained that when the Council adopted the budget he felt there was sufficient data from the county to recommend the amount of the mill levy. Subsequently it has been determined that an adjustment is needed because of regulations which have been approved by the tax commission dealing with the base year and because the county adjusted the assessed valuation figures downward from those used during the budget process. The requested mill levy for the general fund is 17.48 (an increase of .19 mills) and the requested mill levy for the library is 3.0 (an increase of .04 mills), for a total of 20.48. Mr. Haines said that this is within the base-year regulations established by the tax commission.
Mr. Haines said that the budget commitment cannot he met with the mill levy which was established at the time the budget was adopted. If the original levy is used then there will be a shortfall of $200,000 to the general fund and $75,000 to the library. Mr. Haines felt that this request was a technical adjustment since there is no change in the budget. He pointed out, however, that the Mayor felt the levy should be left at the figure originally approved. Mr. Haines mentioned that the sole source of revenue for the library is property tax. He was also concerned about the principle of fiscal integrity and deliberately entering into the fiscal year knowing that there would be a shortfall in property tax revenue. No one from the audience addressed this matter.
Councilmember Parker moved and Councilmember Mabey seconded to close the public hearing, which motion carried, all members present voting aye.
Councilmember Whitehead suggested that the shortfall in funds could be taken out of the contingency fund. Councilmember Shearer agreed. Councilmember Fonnesbeck agreed with Mr. Haines that this request was an adjustment because the budget amount originally approved would stay the same.
Councilmember Shearer moved and Councilmember Parker seconded to reduce contingency by $200,000 and leave the general fund mill levy at 17.29, which motion failed due to a tie vote; Councilmembers Parker, Shearer and Whitehead voted aye and Councilmembers Fonnesbeck, Hardwick, and Mabey voted nay.
Councilmember Fonnesbeck moved and Councilmember Hardwick seconded to change the mill levy for the library from 2.96 to 3.00, which motion failed due to a tie vote; Councilmembers Parker, Fonnesbeck, and Whitehead voted aye and Councilmembers Mabey, Hardwick and Shearer voted nay. No further motions were made.
(R 84-9)
The meeting adjourned at 6:00 p.m.