PROCEEDINGS OF THE CITY COUNCIL OF SALT LAKE CITY, UTAH
TUESDAY, MAY 3, 1983
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET AS A COMMITTEE OF THE WHOLE ON TUESDAY, MAY 3, 1983, AT 5:00 P.M. IN ROOM 211 CITY AND COUNTY BUILDING.
ON ROLL CALL THE FOLLOWING COUNCIL MEMBERS WERE PRESENT: RONALD J. WHITEHEAD ALICE SHEARER GRANT MABEY IONE M. DAVIS SYDNEY R. FONNESBECK EDWARD W. PARKER PALMER DEPAULIS.
Council Chairman Grant Mabey presided at and conducted this meeting.
POLICY SESSION
Leigh von der Esch briefed the Council on the agenda. Paul Maughan, assistant city attorney, briefed the Council on Petition 232 of 1982 submitted by Monroc, Inc. The petitioner is requesting vacation of all remaining streets and alleys within the Folsom Addition lying east of Beck Street. Mr. Maughan told the Council that they have three options for settlement of this petition: 1) deny the request, 2) approve the request, or 3) approve the request subject to the petitioner’s filing of a reclamation plan. Mr. Maughan also said that there is opposition from the neighborhood to vacation without guarantee of reclamation of the hillside.
Mr. Maughan said that since the streets were dedicated prior to 1890, when the dedication statute was adopted, the City’s right to the streets is in doubt. Boh Huc Chung addressed the Council concerning his request that the limitation on the placement of video games in relation to schools be relaxed to permit video games within 800 feet of a school. He urged the Council to reduce the number of feet required between a video game and a school so he could keep a video game in his store. The Council urged Mr. Chung to meet with the crime prevention team to make his store more secure.
The policy session adjourned at 6:00 p.m.
THE CITY COUNCIL OF SALT LAKE CITY, UTAH, MET IN REGULAR SESSION ON TUESDAY, MAY 3, 1983, AT 6:00 P.M. IN ROOM 301 CITY AND COUNTY BUILDING.
ON ROLL CALL THE FOLLOWING COUNCIL MEMBERS WERE PRESENT: RONALD J. WHITEHEAD ALICE SHEARER GRANT MABEY IONE M. DAVIS SYDNEY R. FONNESBECK EDWARD W. PARKER PALMER DEPAULIS.
Mayor Ted Wilson, Albert Haines, chief administrative officer, and Roger Cutler, city attorney, were present at the meeting. Council Chairman Grant Mabey presided at and Councilmember Edward W. Parker conducted this meeting.
Invocation was given by Police Chaplain Bruce Jenkins.
Pledge of Allegiance.
Approval of Minutes:
Councilmember Mabey moved and Councilmember Davis seconded to approve the minutes of the regular meeting of the Salt Lake City Council for the meeting held Tuesday, April 19, 1983, and for the meetings held Thursday, April 21, 1983 and April 28, 1983, which motion carried, all members voting aye.
(M 83-1)
Special Recognition:
Councilmember Parker presented two resolutions of appreciation to Helen Key from the University of Utah Hospital. One resolution expressed appreciation for Dr. Barney Clark’s contribution and the other resolution commended the medical staff at the University. Mayor Wilson said that he had received a note from Ms. Clark thanking the City for flowers which were sent to Dr. Clark’s funeral and also expressing appreciation to the citizens for their help and support. The Mayor said that he would send copies to the Council.
Councilmember Whitehead moved and Councilmember Mabey seconded to approve the resolutions, which motion carried, all members voting aye.
PETITIONS
Petition 232 of 1982 submitted by Monroc, Inc.
RE: Requesting that the City vacate all remaining streets and alleys of Folsom Addition lying east of Beck Street.
RECOMMENDATION: That the City Council hold a non-advertised public hearing to discuss this petition.
DISCUSSION: This petition has been reviewed by the transportation division, public utilities and fire department. They recommend that the petition be granted and a letter from the property manager and City engineer recommend that the streets be closed and the land sold at a fair market value. However, the city attorney’s office is of the opinion that the City has a slight claim, if any, to the fee simple interest in the value of the streets. A staff report, attached to the petition, goes into more detail in this respect.
The matter has been reviewed by the planning commission and inasmuch as the existing streets and alleys have never been opened or used and they are not platted in such a way as to lend to logical or proper development of the land, it is their recommendation that these streets and alleys be vacated as requested.
Councilmember Shearer moved and Councilmember DePaulis seconded to schedule a non-advertised public hearing for May 17, 1983 at 6:30 p.m. to discuss Petition 232, which motion carried, all members voting aye.
(P 83-263)
Petition 331 of 1982 submitted by Richard Young, et. al.
RE: The vacation of an alley running between Herbert Avenue and Michigan Avenue parallel to 1100 East Street.
RECOMMENDATION: That the Council adopt an ordinance vacating the alley.
DISCUSSION: At a public hearing held April 12, 1983 the Council voted to approve the request and directed the attorney’s office to prepare an ordinance vacating the alley subject to maintaining any utility easements that may exist. The attorney’s office prepared the necessary ordinance and confirmed that it contains all necessary easements for existing utilities.
Councilmember Shearer moved and Councilmember DePaulis seconded to adopt Ordinance 23 of 1983, vacating a public alley located within the Gilmer Square’ Subdivision (running south from Michigan Avenue for 281 .22 feet to Herbert Avenue and is east of 11th East) which motion carried, all members voting aye.
(P 83-169)
Petition 323 of 1982 submitted by Walter Bouck, et. al.
RE: Requesting that the 13-foot alley which runs south from Kensington Avenue for approximately 221 feet to Bryan Avenue approximately 125 feet east of 3rd East be vacated.
RECOMMENDATION: That the City Council hold a non-advertised hearing on May 10, 1983 at 6:15 p.m. to discuss this petition.
DISCUSSION: The petition has been reviewed by the planning commission, finance, public utilities, fire department, engineering, transportation, and the law department. Those departments have recommended that the alley be vacated; their recommendations are attached to the petition. The petitioner originally requested that only the center portion of the alley be vacated. The planning commission recommended that the petitioners request that the entire alley be vacated and that they grant any necessary easements in order to guarantee certain owners access to their garages.
As per the planning commission’s recommendation the petitioners have submitted a second request asking that the entire alley be vacated. All abutting property owners have signed the petition, therefore, an advertised public hearing is not required. The attorney’s office has prepared the necessary vacating ordinance.
Councilmember Shearer moved and Councilmember DePaulis seconded to schedule a non-advertised public hearing for May 10, 1983 at 6:15 p.m. to discuss Petition 323 of 1982, which motion carried, all members voting aye.
(P 83-259)
Petition 325 of 1982 submitted by William 13. Kearns.
RE: Requesting that the alley between 548 and 556 Dexter Street be vacated.
RECOMMENDATION: That the City Council hold a non-advertised public hearing on June 14, 1983 to discuss this request.
DISCUSSION: This petition has been reviewed by the traffic engineer, city engineer, finance department, fire department and public utilities department. The public utilities department notes it will be necessary for the petitioner to arrange to have a private service line serving a residence on 800 West reconnected on 800 West as a condition of vacation. The finance department raises the question of compensation for the alley inasmuch as the petition would award the entire alley to Mr. Kearns. All the abutting property owners have signed the petition, therefore, an advertised public hearing is not required.
Councilmember Shearer moved and Councilmember DePaulis seconded to schedule a non-advertised public hearing for June 14, 1983 at 6:15 p.m. to discuss Petition 325 of 1982, which motion carried, all members voting aye.
(P 83-261)
Petition 400-7 of 1982 submitted by James Hardy.
RE: Requesting the vacation of a portion of a 12-foot wide alley which runs east from 900 West between 513 South and 517 South for approximately 141 feet.
RECOMMENDATION: That the City Council hold a public hearing on June 14, 1983 at 6:45 p.m. to discuss this request.
AVAILABILITY OF FUNDS: Mr. Hardy has paid the $35 advertising fee.
DISCUSSION: The petition has been reviewed by the planning department, the finance and administrative services division, the department of public utilities, the fire department and the public works department. Each of those departments concurs that the vacation of the alley would not have an adverse impact on the needs of the public. The petition has been signed by two of the three abutting property owners, as shown on the tax assessment rolls of the county recorder. The third signature is that of a person buying one of the abutting properties on contract. The signature of the legal owner has not been obtained on this petition. The vacation of the alley would eliminate one of the accesses to an alley located in the interior of the block, therefore, the Council may require additional notice be given to the remaining owners of the property located on the block. The city attorney’s office has prepared the necessary vacation ordinance and has included in it the reservation of all necessary easements and rights of way.
Councilmember Shearer moved and Councilmember DePaulis seconded to schedule a public hearing for June 14, 1983 at 6:45 p.m. to discuss Petition 400-7 of 1982, which motion carried, all members voting aye.
(P 83-262)
Petitions 400-21 and 400-22 of 1982 submitted by Neighborhood Housing Services.
RE: Requesting that a portion of the Granite Subdivision and the Deskey Subdivision be vacated including a portion of American Avenue and Hayes Avenue between Park View School property and Navajo Street.
RECOMMENDATION: That the Council adopt an ordinance vacating those portions of the subdivisions.
DISCUSSION: At a public hearing on March 8, 1983 the Council approved this petition request and directed the city attorney’s office to prepare an ordinance and other necessary paperwork to implement the vacation. The ordinance effectuating this vacation has been prepared and is in proper form for adoption by the Council.
Councilmember Shearer moved and Councilmember DePaulis seconded to adopt Ordinance 24 of 1983, vacating a portion of the Desky’s and Granite Subdivisions in Salt Lake City, which motion carried, all members voting aye.
(P 83-59)
Petition 400-26 of 1983 submitted by Robert Koyen.
RE: Rezoning property located on the west side of Chicago Street and the south side of 1100 North.
RECOMMENDATION: That the Council adopt an ordinance rezoning this property.
DISCUSSION: Pursuant to the Council’s directive at a public meeting held March 8, 1983, the attorney’s office has prepared an ordinance providing for the rezoning of this property; the property description has been amended and approved by the planning division.
Councilmember Shearer moved and Councilmember DePaulis seconded to adopt Ordinance 25 of 1983, rezoning property located on the west side of Chicago Street and the south side of 1100 North, which motion carried, all members voting aye.
(P 83-2)
Petition 400-28 of 1982 submitted by Beesley Construction Company.
RE: Requesting that the alley which runs south from Blaine Avenue just west of the properties facing on 1100 East be vacated.
RECOMMENDATION: That the City Council hold a non-advertised public hearing to discuss this petition.
DISCUSSION: All the departments have reviewed this request and have no objections to vacating the alley, subject to maintaining easements which may be contained there. This alley runs south from Blaine Avenue a distance of 153 feet where it connects with an l8’ wide alley which runs west to 10th East. The petitioner proposes to acquire all of the alley, if vacated, and use it as a freight driveway as a part of the development which is being constructed immediately to the east. They also propose to guarantee a right-of-way from the existing east-west alley south to Wilson Avenue.
The petition is signed by the owners on both sides of the alley which is to be vacated but all the owners backing onto the east-west alley have not signed; however, the only effect on these properties will be that their access from their alley will be to the south instead of to the north, therefore, they are not abutting property owners and their signatures are not required by statute so an advertised public hearing is not required. The city attorney’s office has prepared the necessary vacating ordinance.
Councilmember Shearer moved and Councilmember DePaulis seconded to schedule a non-advertised public hearing for May 10, 1983 at 7:15 p.m. to discuss Petition 400-28 of 1982, which motion carried, all members voting aye.
(P 83-260)
DEPARTMENTAL BUSINESS
AIRPORT AUTHORITY
#1. RE: Public hearing for the opportunity to hear from protestors regarding the proposed airport expansion project and financing of the project.
Councilmember Shearer moved and Councilmember Whitehead seconded to schedule a public hearing for May 12, 1983 at 5:00 p.m. to hear protests on this matter, which motion carried, all members voting aye.
(Q 83-1l)
DEVELOPMENT SERVICES
#1. RE: Public hearing for the 9th Year Community Development Program and Federal Jobs Bill allocation.
RECOMMENDATION: That the City Council hold a public hearing on Tuesday, May 10, 1983, at 7:30 p.m. to announce its preliminary recommendation for allocation of 9th Year Community Development Block Grant funds as well as projects or programs to be funded with the Jobs Bill allocation to be received.
AVAILABILITY OF FUNDS: Approximately $4,772,000 will be available from HUD in July, 1983, to allocate to various projects designed to improve physical conditions and public services within the City. An additional $1,269,000 has been allocated from the recently passed federal legislation known as the Jobs Bill.
DISCUSSION: The Department of Housing and Urban Development requires the City to hold public hearings to obtain input from community groups and neighborhood residents concerning City needs that may be addressed by CDBG funding. Mayor Wilson will make his recommendation concerning funding of 9th Year CD projects, and additional programs or projects to be funded with the Jobs Bill allocation to the Council as part of his budget message on Tuesday, May 3rd. The Council will then have until Tuesday, May 10th, to consider the Mayor’s recommendation, then must announce its preliminary funding decisions on both 9th Year CDBG monies and the Job Bill allocation at the public hearing. Citizen comments will then be heard during the remainder of the public hearing.
HUD requirements state that the Council’s preliminary decision on 9th Year funding, which becomes the City’s “Projected Use of Funds”, shall be published in such manner to afford affected citizens an opportunity to examine its content and to submit comments on the proposed statement. Therefore, an advertisement must be placed in newspapers of general circulation to announce the preliminary CD list and invite written public comment for a 10-day period. The Council should consider all community input before making its final decision on 9th Year funding at a meeting Tuesday, May 24th.
The CDBG staff must prepare the 9th Year application so that it is received by HUD in Denver by June 1st. If the application is not received by HUD on time, it will delay the City receiving its 9th Year allocation and the projects dependent on the funding.
Councilmember Shearer moved and Councilmember Davis seconded to schedule a hearing for May 10, 1983 at 7:30 p.m., and amend the public hearing to include discussion on the City’s housing assistance plan along with the 9th Year CDBG funds and Jobs Bill allocation, which motion carried, all members voting aye.
(T 83-2)
FINANCE AND ADMINISTRATIVE SERVICES
#1. RE: Industrial Revenue Bond for Commercial Concepts/Pierpont Plaza.
RECOMMENDATION: That the Council set a public hearing to consider an amendment to the inducement resolution changing the name of Commercial Concepts to Pierpont Plaza, Ltd., and increasing the amount of authorized funds from $2,000,000 to $3,500,000 subject to the following conditions: 1. That the city attorney approve the resolution as to form. 2. That the application meet all necessary financial requirements of the City. 3. That Pierpont Plaza, Ltd. pay the established non-refundable fee for processing.
DISCUSSION: The original inducement resolution was to finance the acquisition, restoration, refurbishing and improving of the old Salt Lake High School for offices and retail stores in a complex to be known as Pierpont Plaza. The original application was submitted and approved by the planning and zoning commission.
Councilmember Shearer moved and Councilmember DePaulis seconded to schedule a public hearing for May 24, 1983 at 6:30 p.m. to consider an amendment to the Industrial Revenue Bond inducement resolution of Commercial Concepts, which motion carried, all members voting aye.
(Q 83-14)
#2. RE: Industrial Revenue Bond application by Boyer-Jacobsen Airport East Partnership.
RECOMMENDATION: That the City Council set a public hearing to consider an inducement resolution for an Industrial Revenue Bond for Boyer-Jacobsen Airport East Partnership in the amount of $5,000,000, subject to the following conditions: 1. That the city attorney approve the resolution as to form. 2. That the application meet all necessary financial requirements of the City. 3. That Boyer-Jacobsen pay the established non-refundable fee for processing.
DISCUSSION: The project consists of two buildings for office development and will be built on property already owned by Boyer-Jacobsen at 1950 West North Temple. One building is started and almost complete with 50% occupancy, the second building will be started by May 1, 1983. The application was submitted to the planning director whose report is included with the application.
Councilmember Shearer moved and Councilmember Davis seconded to schedule a public hearing for May 24, 1983 at 7:00 p.m., amended from May 17, 1983 at 6:45 p.m. as was listed on the agenda, to consider the IRB request by Boyer-Jacobsen Airport East Partnership, which motion carried, all members voting aye.
(Q 83-13)
OFFICE OF THE MAYOR
#1. RE: Airport Authority Board.
DISCUSSION: The terms of William Kibbie and Joseph Rosenblatt on the Airport Authority Board have expired. It is recommended that each of them be reappointed for another term. Their financial disclosure statements are on file in the city recorder’s office.
Councilmember Mabey moved and Councilmember Davis seconded to approve the reappointment of William Kibbie and Joseph Rosenblatt to the Airport Authority Board, which motion carried, all members voting aye.
(I 83-12)
PARKS DEPARTMENT
#1. RE: Proposed fees for use of lighted ball diamonds, ordinance amendment to Section 27-9-6.
RECOMMENDATION: That the Council consider amendments to Section 27-9-6 of the Salt Lake City code.
DISCUSSION: In a recent survey it was noted that the present fee charged for the use of a lighted ball diamond was not covering the electrical expenses incurred to light the diamond for one evening. The recommendation would enable the parks department to break even on this expense. Following are reasons for the request: 1. The present $15 an evening per diamond fee was established several years ago. 2. Because of yearly electrical rate increases, the fee no longer meets the increased costs. 3. Light bulbs must also be replaced annually at each lighted ballfield making the cost for lighting go even higher.
Councilmember Shearer moved and Councilmember Davis seconded to refer this ordinance amendment to the public safety and community activities committee, which motion carried, all members voting aye.
(O 83-16)
PUBLIC WORKS
#1. RE: $300,000 Special Assessment Bonds, Series 1983 Special Improvement District Curb and Gutter Extension No. 38-535.
RECOMMENDATION: That the City Council award the $300,000 Special Assessment Bonds, Series 1983 Special Improvement District Curb and Gutter Extension No. 38-535 to Continental Bank and Trust Company of Salt Lake City at a net effective interest rate of 8.55%.
DISCUSSION: The apparent low bidder for the purchase of the $300,000 Special Assessment Bonds, Series 1983 Special Improvement District Curb and Gutter Extension No. 38-535, dated June 1, 1983, was the bid submitted by Continental Bank and Trust Company of Salt Lake City. The bid was submitted in compliance with all provisions contained in the official notice of sale and was accompanied with a certified good faith check in the amount of $6,000. The results of sale outlines the bids received for the sale of the bonds (this information is on file in the city recorder’s office). Albert Haines presented the above information to the Council and recommended approval.
Councilmember Shearer moved and Councilmember Davis seconded to adopt Resolution 34 of 1983 authorizing the issuance and providing for the sale of $300,000 Special Assessment Bonds of Salt Lake City, Utah, Special Improvement District Curb and Gutter Extension No. 38-535; and adopt Resolution 33 of 1983 confirming the sale of the bonds relating thereto, which motion carried, all members voting aye.
(Q 82-30)
#2. RE: Bid opening for concrete replacement at St. Marys Way and various City non-contiguous streets, Special Improvement District Project No. 40-R-5. Albert Haines opened and read the bids which were submitted (this information is on file in the city recorders office). After all the bids had been opened Mr. Haines recommended that they be referred to the engineering department for tabulation.
Councilmember Shearer moved and Councilmember Davis seconded to refer the bids to the engineering department for tabulation, which motion carried, all members voting aye.
(Q 83-4)
#3. RE: Notice of intention for establishment of Special Service District 3-W-2 in the northwest area of Salt Lake City for Subdrainage operation and maintenance.
RECOMMENDATION: That the City Council adopt the notice of intention and authorize the City to proceed with advertising of the notice of intention in accordance with the proposed schedule.
DISCUSSION: The City has received petitions from the owners of two subdivisions (Petition 1200-2 by Michael R. Holmes, vice president, Prowswood Inc., and Petition 1200-3 by Vern Cooley of Ivory & Company) requesting establishment of a Special Service District. The district will provide operation and maintenance of a subdrain system for the Westpointe Development. Under the provisions of this district, all property owners within the areas having subdrainage systems would receive operation and maintenance of the system from the City with costs borne by the owners serviced through the district. By using the Special Service District it would be possible to add areas to the district if at the time of subdivision development a subdrain system is installed.
With the impending westside development and the resulting need for sub-drainage systems in much of this area the proposed Special Service District should provide an effective mechanism for allowing the City to recover costs of operation and maintenance of these systems. It is intended to set the rates in the district based on the area of the property served and the costs incurred for operating and maintaining each subdrain system service. If the district is approved, service will begin when each area is added to existing subdrains.
Councilmember Shearer moved and Councilmember Whitehead seconded to amend the resolution to include an informational hearing before the public improvements committee of the Council, which motion carried, all members voting aye.
Councilmember Whitehead moved and Councilmember Mabey seconded to adopt Resolution 35 of 1983, as amended, approving the notice of intention to establish Special Service District 3-W-2 in the northwest area of Salt Lake City for subdrainaqe and maintenance and authorizing the city to proceed with the advertising of the notice of intention, which motion carried, all members voting aye.
(Q 83-12)
#1. RE: Mayor’s budget message.
Mayor Wilson presented his budget message to the Council: “I am hereby transmitting for your consideration my recommended annual budget for Salt Lake City for the fiscal period July 1, 1983 to June 30, 1984. The budget for all funds is $192,341,271. The proposed budget for the general fund is $64,056,508, an increase of 0.2% over the comparable 1982-83 amended budget. For the past three years I have presented budgets which have matched the austere economic conditions Salt Lake City has faced. We have continually cut the growth rate of the general fund budget from 9.5% in 1980 to 9.1% in 1981 to 3.9% last year. The two-tenths of one percent increase which I am recommending for next year’s budget is the smallest increase in the City’s budget in recent memory. Because inflation went up 6.2% last year, this small increase translates into a 6% cut in the budget in real dollars.
These yearly reductions have been achieved through increasing productivity, streamlining operations, and making the departments more efficient. Since 1980, the City’s work force has been trimmed by 171 positions or by 7% in the next year’s budget. I will also recommend that further cuts be made in the City’s work force. Overall, the 1983-84 general fund revenues are estimated to increase by 2.27% over the 1982-83 amended budget. The estimated general fund revenues will total $65,395,520 as compared with revenues of $63,945,798 for the 1982-83 amended budget. Our revenue projections for sales tax, property tax and franchise tax, which supply nearly 65% of the general fund revenue, are modest but by no means liberal. We are projecting a 9% increase for these revenues, which is better than last year but significantly below the increase these revenue sources experienced before the recession.
The main reason that the City’s revenue picture is so bleak is due to the use of one-time funds in previous budgets. Since 1980 over $17 million of one-time monies have been used to balance the budget, including $2,020,172, last year. The use of this one-time money has represented a windfall for the City’s taxpayers and a comfortable financial cushion for the general fund. Unfortunately, all of the one-time money has been used, which is illustrated by this year’s meager revenue projections. Growth must now be maintained by the City’s permanent revenue sources. The revenue figures include the 1/8 of a cent increase in the sales tax which will add about $217,000 to the City’s revenues. A major and larger portion of the tax will be distributed to other cities according to the distribution formula adopted by the legislature. Some in recent days have asked what incentive there is to a government like ours to impose the tax when we get so little of its dollar benefits. Let me clearly explain that incentive. The incentive is based on the simple political fact that the suburban cities have the votes in the legislature to shift the sales tax distribution formula from point of sale toward distribution by population. Such a shift would be disastrous to our City. It would cost us $16 million over the next five years from current sales tax revenues. To make it up the Council would have to double the current property tax or substantially reduce basic services. The incentive is that simple - either we raise the tax and cooperate with the compromise, or the legislature will destroy our sales tax base. I have written a letter to point of sale cities explaining this in more detail (a copy of this letter is on file in the city recorder’s office).
I am also recommending a minor increase in the property tax of 0.89 mills to balance the budget. The main purpose for this increase is to offset the effects of the loss of one-time money which was used to balance the budget during the past three years. I think that this increase is advisable in light of the cuts which have already been made to reduce the size of City government. At some point we must establish a firm funding base which supports an adequate level of City services. I think we have reached that point and we need this small property tax increase to maintain an adequate level of services.
During the preparation of the budget there was a considerable debate regarding whether or not we should recommend a property tax increase or follow the suggestion made by the Salt Lake City community councils and impose a spring clean-up fee. We also discussed the possibility of following the example of other cities in Salt Lake County by imposing a tax deductible garbage pick-up fee. The decision was made to recommend a property tax increase because it was the least regressive. I feel that it is also the most appropriate because the money which it will generate will be used for basic City services.
To balance this year’s budget I am recommending a further reduction in the City’s work force of 81 full-time equivalent positions. Most of this reduction will result from a transfer of 56 court personnel to the state court system. This transfer will result in a net savings of $200,000 to the City’s general fund. In addition to this transfer, 25 other full-time equivalent positions will be reduced. With the reduction of these positions, we will have eliminated 242 positions since 1980 which represents 9.8% of the City’s 1980 work force. Significant savings have also been made in the following areas:
A savings of $500,000 through the establishment of a five-year pay-back program to replenish fleet management’s cash funds; A savings of $262,000 through the reduction of miscellaneous vehicle replacement; A savings of $275,000 through the postponement of new hires for the police and fire departments; A savings of $122,000 as a result of the abolishment of the Office of Budget Planning Management; and a savings of $2.5 million through the trimming of department requests and increases in miscellaneous revenues which together result in a net savings to general fund. In addition to these reductions, the City will contract with the City-County Health Department for animal control and reorganize the parking enforcement division. These actions will result in a savings of $46,000. I am recommending that a property tax mill levy of 0.67 mills be set aside from the City’s general mill levy and the funds generated by this levy be allocated to the capital improvement budget.
This would generate $600,000. I would also like to recommend that this amount be augmented by $240,000 from a prior-year appropriation for the Hansen Hollow project. This would make a total contribution from the general fund of $840,000. With the earmarked property tax mill levy from the general fund, the proposed capital improvements budget will total $15,079,000. The balance of capital improvement funds will come from the Community Development Block Grant Program, the recently passed federal jobs bill, federal, state and county contributions, special assessments and tax increment funds.
With over $14,000,000 coming from sources outside the general fund, it is tempting to question the necessity of making any contribution at all from the general fund. I want to urge you to resist that temptation. The general fund contribution is earmarked specifically for projects on the growing westside and for special improvement districts which the City has already committed to fund. No federal, state or county funds can be used for these projects. If they are not funded from the general fund they will not be built. Salt Lake City’s capital improvement needs far exceed the $15,000,000 which will be spent this year. These needs must be met if we are to maintain the growth potential which we currently enjoy.
Consequently, I will be coming to you in the near future with recommendations from the Blue Ribbon Committee which I have established to make recommendations on bonding for future capital projects. Unfortunately the tight revenue picture will not allow us to grant the cost-of-living increases contained in the collective bargaining agreements. Each of these agreements contain an “if money is available” clause which we will regrettably exercise at this time. I am proposing that effective June 30, 1983, all salaries be frozen and that no merit or in-grade promotions be granted. I would also like to recommend a 26% increase in health and dental rates to cover the cost of health care inflation.
This will allow us to maintain current benefit levels. I would also propose that, in accordance with state law, contributions to the police retirement fund be reduced from 18.13% to 12.4%, contributions to fire fighter’s retirement fund be reduced from 16.82% to 8.8%, and that the contribution for all other employees be reduced from 17.9% to 13%. The effect of all of these recommendations will mean a reduction in the take-home pay for our employees. In fact, some employees will see their take-home pay reduced by up to $150 a month on July 1st. To help alleviate the distress that such a cut in take-home pay will cause and to keep the employees take-home pay basically even, I am recommending that the employees be given a one-time lump sum payment of 6% of their salary on July 1. This payment would not be an addition to their base pay, and would not require fringe contributions, and would therefore not compound our budget problems next year if the City revenues are still lean. Most importantly, by offsetting the reduction in their take-home pay I think we will be making a good-faith gesture regarding our inability to fund the cost-of-living increases called for in their contracts. This budget contains $285,000 for workers compensation and $181,000 for unemployment compensation which was not budgeted for last year.
Salt Lake City has always enjoyed a national reputation as a City which is financially sound. Unfortunately, our last several budgets have included so much onetime revenue and such a reduction of our emergency fund balance (reduced from $6.7 million to $1.1 million since 1980) that we are on the verge of losing this financial security. The deficiency has been noted by Moodys Investment service and by our auditors, Arthur Young and Company. Several unfortunate events could occur as a result of this problem. The first, a reduction in our bond rating could cost our taxpayers millions of dollars through increased borrowing costs for capital improvements and tax anticipation funds. The second is perhaps more obvious this wet spring.
The City will need to address the serious impacts of flooding and ground slides. No one knows what this will cost but the small amount in our emergency fund is of little solace. The Mayor added aside that recently there had been a slide in City Creek Canyon near the bottom that was threatening to block the stream. It is my strong belief that the City should always maintain its reserve fund at $2.5 million, the maximum allowed by state law. This is a minimum protection against a rainy day and to assure those who loan us money. Therefore, I am strongly recommending we earmark an increase in the property tax of 1.47 mills for this purpose.
Though I am very reluctant to add to the burden of our hard pressed taxpayers, I believe they will understand the wisdom of keeping our City financially sound and able to respond to serious emergencies. In fact, I believe they would be infuriated if we do not call this problem to their attention and provide a solution. The mill levy is not large and could be removed either in part or whole next year, depending on the strength of the reserve fund at that point. This mill levy is not required to balance the budget but is a supplemental recommendation I feel to be indispensable.
For the past three years, I have stated that each successive budget has been more difficult to prepare than the last. Each year the budgets have gotten worse. This year is no exception. This has been a very difficult budget to prepare because we have had to balance the delivery of services against the loss of one-time revenue. I think that we have struck a fair compromise. It is difficult to raise taxes, it is very difficult to cut into previously agreed to bargaining agreements with the unions even if there is a “money available” clause. But that is the nature of this budget. I hope you will approve it and I am strongly recommending it to you tonight.”
Councilmember Shearer moved and Councilmember Whitehead seconded to refer the Mayor’s recommended budget to the committee of the whole, which motion carried, all members voting aye.
(B 83-2)
#2. RE: Adopting a tentative budget of Salt Lake City Corporation for the fiscal year 1983-1984.
RECOMMENDATION: 1. That the City Council adopt a tentative budget of Salt Lake City Corporation for the fiscal year 1983-84, and accept the accompanying staffing document. Both documents to be placed on record in the city recorder’s office, Room 311, City and County Building and will be available for public inspection from 8:00 a.m. until 5:00 p.m., Monday through Friday. 2. That the City Council set a public hearing relative to the adopted tentative budget of Salt Lake City to be held May 17, 1983 at 6:30 p.m. 3. That the Salt Lake City budget for fiscal year 1983-1984 with accompanying ordinances and resolutions be adopted before June 15, 1983.
DISCUSSION: The following documents will be presented to the Council: 1. The Mayor’s budget message. 2. The Mayors’ recommended budget for fiscal year 1983-1984, including staffing document. 3. A resolution adopting a tentative budget of Salt Lake City Corporation for fiscal year 1983-1984. 4. A resolution adopting budgets for all funds of Salt Lake City for the 1983-1984 fiscal year beginning July 1, 1983. 5. A resolution determining the rate of tax levy and levying taxes upon all real and personal property within Salt Lake City. 6. An ordinance relating to the adoption of an employment staffing document for Salt Lake City.
Councilmember Whitehead moved and Councilmember Shearer seconded to adopt Resolution 36 of 1983 adopting tentative budgets for the fiscal year beginning July 1, 1983 and ending June 30, 1984 and schedule a public hearing for May 17, 1983 at 7:00 p.m. to consider the tentative budget, which motion carried, all members voting aye.
(B 83-2)
#3. RE: A resolution adopting budgets for all funds of Salt Lake City for the 1983-84 fiscal year beginning July 1, 1983.
Councilmember Shearer moved and Councilmember Davis seconded to refer this resolution to the committee of the whole, which motion carried, all members voting aye.
(B 83-3)
#4. RE: A resolution determining the rate of tax levy and levying taxes upon all real and personal property within Salt Lake City for fiscal year 1983-84.
Councilmember Shearer moved and Councilmember Davis seconded to refer this resolution to the committee of the whole, which motion carried, all members voting aye.
(R 83-7)
#5. RE: An ordinance relating to the adoption of an employment staffing document for Salt Lake City for fiscal year 1983-84.
Councilmember Shearer moved and Councilmember Davis seconded to refer the ordinance to the committee of the whole, which motion carried, all members voting aye.
(O 83-18)
#6. RE: Revenue sharing funds for fiscal year 1983-84.
Councilmember Shearer moved and Councilmember DePaulis seconded to schedule a public hearing on May 10, 1983 at 7:00 p.m. and on May 17, 1983 at 7:00 p.m., in conjunction with the public hearing on the tentative budget, to discuss the use of revenue sharing funds for fiscal year 1983-84, which motion carried, all members voting aye.
(B 83-2)
#7. RE: The 7/8% local option sales tax.
RECOMMENDATION: That the City Council set a public hearing and adopt the 7/8% local option sales tax by May 31, 1983.
Councilmember Shearer moved and Councilmember Davis seconded to schedule a public hearing for May 17, 1983 at 7:30 p.m. to discuss the 7/8% local option sales tax, which motion carried, all members voting aye.
Councilmember Shearer moved and Councilmember Davis seconded to refer this item to the committee of the whole, which motion carried, all members voting aye.
(O 83-17)
COMMENTS
Charlie Quick, president of Local 1645 IAFF, said that he had concerns not about the budget as presented but as to the forum in which Mayor Wilson presented the budget and the problems therein to the labor organizations in Salt Lake City. Mr. Quick said that Mayor Wilson, as he indicated, had signed labor agreements with all the labor organizations except the fire department; with the fire department there is an understanding between the Council, the Mayor, and the members of the fire department basing salaries on the contract agreement with the police department. Mr. Quick felt that Mayor Wilson had been hard to reach over the past year and during the past few months specifically he had tried to contact the Mayor on several occasions because everyone knew that this would be an austere budget year and there was concern about the cost-of-living increases which had been agreed to. Mr. Quick said that the labor organizations were presented with a copy of the budget only the night before at 5:00 p.m.
Mr. Quick said that within the contract agreements there are wage structures which have been adhered to up to this point; those structures were derived on the basis of developing a working wage to keep the fire fighters productive within Salt Lake City. The lower end of those scales, as Mayor Wilson has chosen within his budget to freeze at a particular level, is not what is considered to be a living wage. The fire fighters at those lower levels need the increases to maintain and to promote through the fire system. Those salary increases were also traded off in lieu of across-the-board increases over the years.
Mr. Quick said that the fire fighters are the only organization in the Salt Lake City Corporation who will receive a gross reduction in the amount of their salary this year and that will be in excess of 2%; all other employee groups will have an increase. Mr. Quick said that he had a genuine concern for the future of Salt Lake City and he had a genuine concern for the future of the fire fighters. He said that he was concerned whether or not Mayor Wilson’s political ambitions were outweighing his Salt Lake City obligations at this point. It was Mr. Quick’s opinion that Mayor Wilson had not been fair in providing adequate leadership to the cabinet and it was also his opinion that Mayor Wilson had not been fair or truthful with the employees of Salt Lake City. Mayor Wilson invited Mr. Quick to publicly itemize what he felt the “untruths” had been.
The meeting adjourned at 7:15 p.m.