Text of Mayor Thompson's Budget Letter

Here follows this year's version of Mayor Thompson's annual budget letter. It was mailed to all residences last Friday. Say what you will about the budget increase -- but let it be said that Mayor Thompson always communicates openly and honestly about the City's intentions, doing far more than the law requires.

July 25, 2008

Dear Residents:

During the month of August, the City Council will hold hearings to receive public comment on the City budget for fiscal year 2008-09. This budget will authorize City services for another year, and will continue this administration’s emphasis on public safety, infrastructure, and financial accountability.

Budgeting in the current economy brings many challenges. On the one hand, revenues from the sales tax, the gasoline tax, and building permits are down. On the other hand, many of the City’s operational costs have increased due to inflation and the rising prices of oil and petroleum products. The City’s residents face many of these same challenges, of course, and residents will also begin paying for the pressurized irrigation system this year through increased water fees.

Because of these added pressures, the City Council has employed several strategies to keep the City budget and its associated tax burden as light as possible. The Council has set a goal for the City’s arts and fitness programs to become self-sustaining. The City has begun charging impact fees to new construction so that many of the costs attributable to growth will now be paid for by that growth. In the short term, several new hires and capital equipment purchases have been deferred. Looking at the long term, the Council successfully completed the sale of the in-city broadband network, and will begin marketing its fiber assets in order to offset the cost of the bond.

All of this results in a proposed budget of $76.83 million, which includes a tax increase of 14 percent over last year’s certified tax rate. On a home valued at $240,000, this increase will translate to $41.44 per year or $3.45 per month. Combined tax revenues and new growth will raise approximately $757,610 in additional revenue for a total budgeted property tax revenue increase of 27 percent. (The newspaper made preliminary reports of a 46 percent increase to the tax rate and 62.76 percent increase in revenue. These figures were ared down in subsequent work sessions during which Council members took a hard look at City needs and chose to fund only the most pressing.)

Out of further concern for the taxpayer’s burden, the Council has opted to place several key items on the November ballot. This vote will allow residents to choose for themselves, by majority vote, which initiatives are most urgent and most affordable. These items include the purchase of land for cemetery expansion, several road and transportation issues, and the finishing of Art Dye Park. Further information on the bond elections will be mailed to homes in the fall. Please note that the bonds will not be treated in the August budget hearings.

Further information on the City budget and associated tax increase will be presented at the hearings listed in the box at the left. [See above.] Residents may also learn more by calling the City offices at 763-3000.

Sincerely yours,
Mayor Heber M. Thompson


AMERICAN FORK BUDGET PRIORITIES

To staff critical positions. Because of slow revenues, the Council has opted to defer several new hires and will add only those positions necessary to maintain the current level of service in an environment of growth. New positions include two full-time positions—a public works inspector and a utility operator; and two part-time positions—a grant writer and a risk manager. Additionally, three part-time positions will be upgraded to full-time—in the police department, a victim advocate and a records clerk, and in the library, a network technician. The City recognizes that human capital is its most important asset and strives to retain quality employees and offer superior service, providing the greatest value to the taxpayer.

To provide needed maintenance for roads and sidewalks. Since 2006, the City has contributed $110,000 per year to sidewalk funding. City sidewalk funding will be matched this year by a federal grant to provide safe routes to school in the Shelley Elementary School area. The budget for road repairs will be increased by $250,000, as the City has been warned that funding projections for road repairs associated with the pressurized irrigation system will not be sufficient, due to rising petroleum and asphalt prices.

To protect the City’s financial standing. This budget provides for the hire of a part-time grant-writer (to boost revenues) and a part-time risk manager (to reduce liability). It also provides $348,000 in matching funds for a trail system connecting Art Dye park to the golf course and to Highland. Failure to match this federal trail grant would require the City to return $87,000 in engineering costs and forego $500,000 toward construction costs. More importantly, failure to complete the project will jeopardize the City’s standing for future transportation grants.

To provide for public safety. This budget will provide four new full-time emergency medical technician (EMT)/firefighter positions, fifteen to eighteen part-time paramedics, and one new ambulance. This means that the paramedic program, which has been planned since 2006, can now be activated. The budget also covers significant increases in emergency dispatch fees, a situation voters will want to keep in mind as the County considers the creation of an independent dispatch district.