The Logan City Council on Tuesday approved a tentative citywide budget of $218,796,527 and tentatively set a proposed 2.9% increase in the certified property tax rate, triggering a truth-in-taxation hearing scheduled for Aug. 7 at 6 p.m.
The tentative budget vote follows a series of smaller appropriations approved earlier in the meeting and a statutorily required public hearing on transfers from enterprise funds to the general fund. Rich, staff member, told the council that transfers ‘‘help keep property taxes low’’ and that the transfers total ‘‘about $7,000,000’’ with the electric fund bearing the majority of the amount.
Why it matters: the transfers and proposed tax increase together fund everyday services such as police, fire and public works. Rich told the council how the transfers work and why the city uses them: "We transfer 7% from water, 5.5% from sewer treatment, 8% from electrical and environmental," and "If we did not do transfers ... the average resident would have to pay for every dollar we decrease transfers, $2.40 to maintain the same level of service." The council voted to approve the tentative budget and the tentative certified tax rate, both by voice vote.
Council and staff discussion focused on transparency and mechanics. Rich said the transfer percentages are set by a 2015 council resolution and described the difference between transfers (revenue allocation) and administrative fees (cost allocation). He also told the council the state requires the transfers hearing and the notice language; the council discussed the state’s reporting format and why the percentage of expenditures shown by the state differs from the percentages cited in the city’s resolution. Rich also noted a potential internal property swap in which the electric department might buy a public-works building and parks and recreation might move into the electric building; the accounting for that planned swap was included in the transfers notice as an accounting entry and the estimated differential used for planning was roughly $10,000,000.
On property taxes, Rich said the 2.9% increase would raise about $169,779 citywide, roughly $88,000 for the general fund and $81,000 for the library; he added that individual homeowner impacts vary with assessed value and county calculations. The council confirmed that the required truth-in-taxation hearing is set for Aug. 7 and that the tentative actions will be finalized after that process.
Other approved budget items: the council approved a set of small appropriations and grants during the meeting, including reimbursements and training funds for fire and EMS (amounts in the transcript), donations for concerts and a police banquet and state grant funds for additional training. Those appropriations were adopted as part of a motion to approve resolution "20 five-twenty 4," which carried by voice vote.
What happens next: the council treated all items except the certified property tax amount as effectively final so staff can proceed with operations; the final budget and certified tax rate will be adopted after the truth-in-taxation process. Rich and staff will publish the final budget document following adoption; staff directed how members of the public can obtain the mayor’s proposed budget and related materials.
"We will hold that hearing on August 7 at 6PM here in these council chambers," Rich said regarding the truth-in-taxation hearing.