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MIDVALE CITY ELECTED OFFICIALS MAYOR Marcus Stevenson 801-567-7204 Email: mstevenson@midvale.com CITY COUNCIL District 1 - Quinn Sperry Email: qsperry@midvale.com District 2 - Paul Glover Email: pglover@midvale.com District 3 - Heidi Robinson Email: Hrobinson@midvale.com District 4 - Bryant Brown Email: bbrown@midvale.com District 5 - Dustin Gettel Email: dgettel@midvale.com
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AUGUST 2022
City Hall – 7505 South Holden Street • Midvale, UT 84047
CITY NEWSLETTER
Marcus’s Message
By Mayor Marcus Stevenson
As I talked about in my June message, Midvale City is proposing to raise property taxes this year. Our final proposed amount is a 7.2% increase – an average increase of $1.21 per month per household or about an extra $15 per year per household. With Utah seeing 9.4% inflation, not only have cost increases on groceries and gasoline affected your family and mine, but it has also created extreme constraints for the city when trying to ensure we can continue to maintain our services. That’s why, as difficult as it is for us to propose an increase this year, I’m proud that the increase we are asking for is below the inflation level and it’s on the low end of the options we were previously looking at, which ranged from an increase of 5-26%. In part, we can keep the property tax increase lower because the growth that Midvale City is experiencing has relieved some of the budgetary pressures we would otherwise face. This year, it’s projected that revenues to Midvale City will increase by $2.25 million – most of which will come from sales tax. However, even with this increase in revenue, after going through the budget process, our city was still short $225,000 – which is the amount that a 7.2% property tax increase will cover. Though I know a proposed increase will not be welcomed by all, I think it’s important to keep in mind that only about 8% of our property taxes come to Midvale City and this increase only affects that amount. You should also know that the impact of inflation has not only hit Midvale City, but in fact, 17 other entities across Salt Lake County are proposing property tax increases including many cities, some of whom are our neighbors, such as West Jordan and Murray. GENERAL FUND BUDGET GOALS This proposed increase, along with the rest of our general fund budget, has two basic goals for our city: maintain current service levels & support employee retention. For this fiscal year, our member fee with the Unified Police Department (UPD) is expected to control about 47% of our general fund. With the police wage wars that have been happening over the last year, plus today’s inflation, the cost to provide policing at its current level has increased drastically. From this time last year to now, our law enforcement costs increased by roughly $2.1 million – about 23% – even after using $435,000 from our police rainy-day fund to cover one-time costs and limit the impact of the increased member fee. This member fee increase largely covers higher wages, but also considers increased gasoline and ammunition costs. With law enforcement increasing by $2.1 million to maintain current services, and with an estimated revenue increase of $2.25 million, that leaves only about $130,000 to cover other cost increases and any new services that our city hopes to provide. Because of that, the other new items added to our general fund are of the utmost importance to ensure our city can continue to function properly. That’s why, with the increased green space in our city, and the demand for it by residents, we’ve added a new parks technician to help maintain both our Midvale City Park and the many smaller parks we have throughout our community. Secondly, we’ve also added a city prosecutor which will help ensure
that our city’s government can move a little faster by freeing up the time of our current legal team. We all know that government moves slowly, and Midvale City is no different, but having a good legal team in place to review contracts and any proposed ordinance, will help us be more effective and efficient for our residents. Finally, last year we had a 32% staff turnover at the city which meant services for our residents were decreased as staff tried to cover multiple jobs. That’s why our budget includes an 8% cost of living increase to all employees. While this amount may seem high, it’s in the range of what we are seeing many other government agencies do. Further, without an increase this year, we would technically be giving a pay cut to our employees due to inflationary increases. This increase will ensure that our city stays competitive in the job market and that the critical services we provide are maintained for our residents. OTHER FUNDS Though my messages have largely been focused on the general fund, Midvale City has 15 other funds that are used to pay for the many things a city does. The focus on the general fund is because this fund is where all your sales tax and property tax flow into, and it’s where we pay for ongoing expenses like road maintenance, law enforcement, snowplows, etc. However, I want to quickly explain the other funds that exist in our overall budget that don’t affect sales or property taxes. The Redevelopment Agency (RDA): The RDA has four separate funds within it – the Bingham Junction project area, the Jordan Bluffs project area, the Main Street project area, and the city-wide housing fund. Redevelopment agencies can be created by partnerships from a city and county to allow property taxes to be shifted in that area. As an example, if you live in one of our three project areas, 80% of your property taxes flow back into that same area it came from. In short, Salt Lake County has allowed us to revert some property taxes from other projects with the intent that they be reinvested into the community where those dollars came from with the goal of revitalization. Main Street is our newest project area and having this area as part of the RDA has allowed us to bring in the mural festival and continue other revitalization efforts our general fund cannot financially support. Further, each project area is required to spend 20% of all collected property tax on affordable housing initiatives. With this money, we have invested in affordable housing projects and are also working on a program to help first time home buyers. Enterprise Funds: There are four separate enterprise funds that many of us see each month on our utility bill from Midvale City – water, stormwater, sanitation, and street lighting. In essence, enterprise funds are fully funded by the fees they collect. As an example, the money you pay the city for water only pays for water, water infrastructure, and water maintenance. As we’ve seen water fees increase, that’s an indication that those basic operating costs to maintain our water supply is becoming more expensive. Capital Projects Fund: Almost opposite to the general fund, which pays for ongoing maintenance costs and other items that
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