Collegedale facing tax increase

As governments make money-saving changes and cutbacks, local governments are left scrambling to make ends meet under the resultant budgetary shortfalls.

"We local governments are going to have to decide what we're going to do, because we cannot afford to pick up everything," said Collegedale City Manager Ted Rogers. "There will come a day when we have to say no."

That day may be rapidly approaching, as Collegedale residents are facing a definite tax increase. Just keeping the library open will cost citizens 18 more cents in property taxes.

"The library is not the only thing driving the tax increase, although it's a large part of it," Rogers told commissioners after requesting a 22-cent tax increase during their budget workshop. "What concerns me about this tax increase is, yes, there are costs of doing business, but the majority of this is being passed down to us."

Collegedale, like every other local municipality, will now be charged a 1 percent sales tax commission by the county for distributing the money. The state-allowed measure will cost the city around $24,000.

Engineering services this year are expected to be $15,000 higher, mainly due to extra engineering required for stimulus projects, according to Rogers.

The city used to benefit from state planners made available to municipalities for everything from economic development to growth studies to planning and design. The state eliminated those positions this year, so Collegedale is looking at hiring its own for around $40,000.

With the state no longer funding meth lab cleanups, the city is anticipating nearly $6,000 in resultant costs.

Rogers is planning on an additional $10,000 for Humane Society services, which are charged based on population. Commissioner Katie Lamb questioned the cost, which is expected to be approximately $42,000, saying she never sees them in the area.

"They're here," Rogers said. "We've looked at this for a couple years now. We have to have ... some process in place to do it. It's cheaper to pay them and outsource it than for us to do it. We continue to run the numbers but that's where we are."

The Electric Power Board has announced a 5 percent rate increase across the board, Rogers said. He is also budgeting for fuel increases across the board.

Credit card service fees are running around $5,000 higher.

"We operate in an almost cashless society," Rogers said. "There is a fee for doing business that way."

Some self-proposed changes are also behind the tax increase, including an additional $41,000 for paving, $75,000 for Phase 1 of installing security cameras throughout the city, catching up on fire department costs and creating a safety net of contingency funds. The city currently only has about $200,000 in reserves.

"I know some things are needed, but I think we're going to have to look at tough decisions," said Vice Mayor Tim Johnson.

Grants to redo the bridges on Prospect Church Road and to build a pavilion, small playground and rest rooms at the Tucker Road recreation area as well as hopefully pave the parking lot there are also included in the budget. The 80/20 federal grant for the bridges will cost the city approximately $90,000. The 50/50 recreation grant will cost $48,000. If the grant funds are not used they will be lost.

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