UTA may trim Davis, Weber service
2 counties failed to pass tax hike to cover costs
About $800,000 in cuts are estimated to be needed over the first quarter of next year, according to UTA. The annual impact would be about $3 million.
The cuts are being discussed because the two counties have yet to pass a 0.05 percent sales-tax increase to offset budget reductions from a recent reduction in the state sales tax on food. The other four Wasatch Front counties where UTA operates have already approved the tax hike.
Davis County commissioners opted not to pass the sales-tax increase UTA officials asked for during a Sept. 11 commission meeting for a variety of reasons, said Commissioner Bret Millburn.
"It's really an issue between UTA and the Legislature," Millburn said.
When the Legislature voted to eliminate part of the sales tax on food in 2007, UTA lost some of its general-fund revenue but could ask the counties it serves to make up for the lost revenue.
And even though UTA officials told Davis commissioners that a .05-cent increase on the sales-tax rate would still be a net decrease compared to what Davis residents were paying before the Legislature removed part of the food sales tax, residents would see it as an increase, Millburn said.
On top of that, 2007 was not a good year for taxes in Davis County.
Rising property values led to increases in property taxes for residents in Bountiful, North Salt Lake, Kaysville and Farmington. Commissioners and county officials scrambled to provide a tax abatement for those residents who saw the largest increases in property values.
During the municipal election Nov. 6, Davis County residents rejected a quarter-of-a-cent sales-tax increase for transportation and transit projects and corridor preservation by 58 percent to 42 percent. And residents in two South Davis cities rejected a sales-tax increase for recreation, arts and parks.
But Millburn said UTA's brass never made a convincing argument for the .05-cent increase they were asking for.
"The info we're received is they're doing fairly well financially," he said. "This year they've been receiving more in sales tax than they've budgeted for."
Weber County officials could not be reached for comment late Tuesday. UTA first announced the possible cuts about mid-afternoon on Tuesday when it e-mailed an amended agenda for its board meeting today. The meeting begins at 2:30 p.m. and will be held at UTA headquarters, 3600 S. 700 West, in Salt Lake City.
The public is invited to comment on the cuts, which will be discussed as part of the agency's proposed 2008 budget. The budget is scheduled to be approved in mid-December.
Andrea Packer, UTA director of marketing/public relations, said her agency planned to continue discussions with Davis and Weber about the tax issue. Representatives from both the counties have been invited to today's meeting, she said.
"We've been in discussions with Davis and Weber all year long and those are going really well," Packer said. "We're looking at all the options, but it most likely means a reduction in service."
E-mail: nwarburton@desnews.com; jdougherty@desnews.com
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