HomeMy WebLinkAbout04/27/2023 - Meeting Materials Salt Lake City Public Utilities
Advisory Committee Meeting
April 27, 2023
FY24 PropertyTax
Certified Rate Increa
Proposal
Background on Budget Process
MAR 27 APR 17
71
entative Open public Pos FY24 Open public
revenue and meeting Tentative meeting
ex enses
Work Session Budget on FY24 Tentative
projections Website
Proposed Presentation Budget
certified tax rate on FY24 Adopted by the
of 0.00035 Budget Board
FY24 Escalating Costs and Capital
Needs for Aging Infrastructure
Long-TermIn—crease from" —
Annual Cost Prior Year Financial Impact
Cottonwoods Connection Project $2,276,800 $2,276,800 $34.4 Million
Purpose:Required project to address aging (Repayment of 30 yr.
infrastructure and Salt Lake Aqueduct seismic and bond)
other elements of resiliency
Deer Creek Dam Intake Project $1,240,000 $1,240,000 $37 Million
Purpose:Required project to address aging (30 yr. repayment)
infrastructure and Salt Lake Aqueduct seismic and
other elements of resiliency
Jordan Aqueduct/ Jordan Valley Water $4,353,070 $735,541 $35.5 Million
Treatment Plant Capital & O&M Costs (10 yrs. of capital
Purpose:Projects to address aging infrastructure that projects)
delivers water to Northwest quadrant of Salt Lake
City.
Central Utah Project OM&R Costs $1,501,500 $115,500 $6.9 Million
Purpose:Expenses related to the District's (forecasted target
investment in Central Utah Project water. increase)
� 1 $4,367,751 • Million
Property Tax Evaluation
ffAX
Review of Property Tax Analysis Alternatives
• Comprehensive analysis in 2015
• Updated analysis in 2023
- -
2023 Analysis considered the following: 100000000
• Financial impacts to the District if property tax
revenues were eliminated. 0000
• Potential rate increase for Salt Lake City and
Sandy City to make up for the lost property tax
revenue.
Summary:
• Impacts to various types of customers to see The District would see a loss
which land use types will pay more and which of $11.7 million in property tax
will pay less. revenues and would need to
recover the losses through
raising water rates.
FY24 Tentative Budget
Review of certified rate increases
• District's last property tax increase occurred in 2008.
• In 2008, the rate was set to 0.00035.
• Rate has eroded as the value of properties has increased.
• Salt Lake City current tax rate is 0.000212.
• FY24 budget proposes an increase (or reestablishment) to 0.00035.
Certified Tax Increase with Value increase to
Rate 0.00035 tax property owner
I rate
Salt Lake City 0.000212 65.09% $316,800 $43.72
Sandy City 0.000221 58.37% $345,455 $44.56
Three Revenue Alternatives
N • No property tax Increase Increase
> • 13.5% water : property tax in property tax in
rate increases FY25 FY25
beginning in 6% water rate CO� Maintain 3%
i FY25 through i increases i water rate
N FY27 N beginning in increases
a-- Proceed with a-- FY28 a-- Delay
Q Cottonwoods Q Proceed with Q Cottonwoods
Connection Cottonwoods Connection
Project in FY24 Connection Project until
Project in FY24 FY25
Budget Process Timing Considerations
August 2023
Certified tax
June 2023 , rate hearing
• Board meeting to Adoption of
approve FY24 final tax rate
budget. and FY24
May 2023 • Certified tax budget.
rates must be
• Meetings with approved by
April 2023 member cities. June 22
1"• Board approval •Tentative budget
March 2023 of the tentative public hearing.
•Work Session budget
Discussion on
Budget. Open
public meeting