047 of 2004 - Relating to enterprise fund payment in lieu of taxes 0 04-1
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SALT LAKE CITY ORDINANCE
No. 47 of 2004
(Enterprise Fund Payment in Lieu of Taxes)
AN ORDINANCE AMENDING CHAPTER 3.40, SALT LAKE CITY CODE,
RELATING TO ENTERPRISE FUND PAYMENT IN LIEU OF TAXES.
Be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. That Chapter 3.40, Salt Lake City Code, pertaining to enterprise fund
payment in lieu of taxes be, and the same hereby is, amended to read as follows:
Chapter 3.40
ENTERPRISE FUND PAYMENT IN LIEU OF TAXES
3.40.010 Short Title:
The ordinance codified in 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, storm water, and refuse 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 the ordinance codified in 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, storm water, and refuse 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 1990-91, 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(91/2%).
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 1990-91 shall be determined by the city's finance department following the city's
administrative policies and procedures and using audited financial data. Each said 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. This ordinance shall take effect immediately upon the date of its first
publication.
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Passed by the City Council of Salt Lake City, Utah this 17th day of June
2004.
U .
CHAIRPERSON
A EST:
ZAP
CHIEF DEPUTY CITY RECORDER
Transmitted to Mayor on CP'2-210
Mayor's Action: K- Approved. Vetoed.
MAYOR
ATTEST:
- APPROVED AS TO FORM - __
Salt Lake Ci Attorney's Otflcm
CHIEF DEPUTY CITY RE ORDER Date
(SEAL)
Bill No. 47 of 2004.
Published: 6-29-04
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