028 of 2020 - Enterprise Fund Payments in Lieu of Taxes1
SALT LAKE CITY ORDINANCE
No. ___ of 2020
(Enterprise Fund Payments In Lieu of Taxes)
An ordinance amending chapter 3.40 of the Salt Lake City Code to facilitate the uniform
regulation of the enterprise funds with respect to payments in lieu of taxes.
WHEREAS, the objective Salt Lake City Corporation (the “City”) desired to
achieve through its enactment of Salt Lake City Code chapter 3.40 was to fairly and
equitably charge an amount in lieu of taxes to enterprise funds using city owned property;
and
WHEREAS, an equitable annual payment amount in lieu of taxes is presently
levied upon the City’s water, golf, sewer, stormwater and refuse enterprise funds; and
WHEREAS, the City has created and is currently operating a street lighting
enterprise fund; and
WHEREAS, applying the same payment in lieu of taxes requirement imposed on
other City enterprise funds to the street lighting enterprise fund results in an equitable and
uniform approach to enterprise fund regulation; and
WHEREAS, the Salt Lake City Council finds that the provisions of this ordinance
facilitate the effective and efficient operation of the City;
NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. That chapter 3.49 of the Salt Lake City Code shall be, and hereby
is, amended to read as follows:
O 20-1
O 20-8
28
2
Chapter 3.40
ENTERPRISE FUND PAYMENT IN LIEU OF
TAXES
3.40.010: SHORT TITLE:
3.40.020: PURPOSE:
3.40.030: PAYMENT IN LIEU OF TAXES:
3.40.010: SHORT TITLE:
This chapter shall be known as the ENTERPRISE FUND PAYMENT IN LIEU OF TAXES
ORDINANCE OF SALT LAKE CITY.
3.40.020: PURPOSE:
The water, golf, sewer, stormwater, refuse and street lighting functions of the city are
operated as enterprise funds, and the city's general fund receives no revenue from their
use of city owned property. The city's objective in enacting this chapter is to fairly and
equitably charge an amount in lieu of taxes for each of said enterprise funds' use of city
owned property, as if said enterprise funds were operated as private entities and were
paying real and personal property taxes as private businesses.
3.40.030: PAYMENT IN LIEU OF TAXES:
There is levied upon the city's water, golf, sewer, stormwater, refuse and street lighting
enterprise funds an annual payment in lieu of taxes based on the calculation of the value
of assets within city limits held and used by each of said enterprise funds, using the
income method of property evaluation. As suggested by the May 17, 1989, KPMG Peat
Marwick report to the mayor and city council on charges for services between funds, for
years subsequent to fiscal year 1990-1991, the payment in lieu of taxes shall be
calculated using the income method of valuation for each said fund as follows:
A. Net revenue shall be calculated by subtracting operating expenses from operating
revenue
B. The asset value shall be calculated by dividing the net revenue by the capitalization
rate of nine and one-half percent (9
1/2%)
C. The payment in lieu of taxes shall be calculated by multiplying the asset value by the
city's property tax rate
D. The sums due the city's general fund under this chapter for each fiscal year after
1990-1991 shall be determined by the city's finance department following the city's
administrative policies and procedures and using audited financial data. Each said
3
enterprise fund shall be notified of the pilot due in the city's budget, with payment
due on or before December 30 of each year, beginning in 1990.
SECTION 2. That this ordinance shall become effective immediately upon
publication.
Passed by the City Council of Salt Lake City, Utah this ___ day of __________________
2020.
____________________________________
CHAIRPERSON
ATTEST:
_________________________
CITY RECORDER
Transmitted to Mayor on ____________________________.
Mayor’s Action: _________ Approved. ____________ Vetoed.
_______________________________________
MAYOR
_________________________
CITY RECORDER
(SEAL)
Bill No. _______ of 2020.
Published: __________________
Ordinance - PILOT - Clean Version
APPROVED AS TO FORM
Date: _________________
By: ________________________
Jaysen Oldroyd, Senior City Attorney
APPROVED AS TO FORM
Date: _________________
By: ________________________
Jaysen Oldroyd, Senior City Attorney
16th June
28