Summit County considers study to incorporate Snyderville

Snyderville residents may have to decide which is more valuable to them — their Park City address or the luxury of having their very own city services.

The Summit County Council is considering a feasibility study about whether to incorporate the Snyderville area as a county township after Eastern Summit Planning Commissioner Tom Clyde made the proposal last week.

County officials say that such a study would hinge on how significantly the change would affect taxes — for residents in Snyderville as well as the remainder of the unincorporated county territory. Under Utah law, a county must “make whole” the losses in revenue incurred when a city becomes incorporated. Deseret News

County Approves 2013 Budget; No Tax Hikes Expected

Utah County residents won't see an increase in their taxes from the county in 2013.

On Tuesday the Utah County Commission adopted a $72 million budget for the upcoming year that seeks no tax increases. Commissioners called the budget lean and praised the department heads of the various county agencies for finding ways to stretch taxpayer dollars as far as possible to make sure essential county services will be provided adequately in the upcoming year.

The upcoming budget includes a small increase in pay for merit employees of the county. County workers can expect a 2 percent pay raise should they pass their annual evaluation with their supervisor. It also includes a minor increase, about $1 million, to the county sheriff's office for public safety needs.

The county commission was asked to increase the amount given to officers' retirement funds. The commission supported the idea of increasing the county's commitment to the fund but only if the dollars came from the sheriff's budget. After going over the budget the sheriff decided that the money for the increase could not be found without cutting essential needs for public safety.

The county itself looks to be on track for a small increase in revenue for the year. While the intake from sales tax looks to be flat there was an increase in the amount of property taxes collected in 2012.

County clerk/auditor Bryan Thompson said in past years the county collection rate for property taxes was in the 80 percent range, but in the last year that number swung up to 91 percent. Thompson said the increase is due to delinquent properties being sold off recently and the new owners paying up on the taxes owed.

Utah County residents will see fewer construction barrels in 2013. The new county budget does not contain any major road construction projects for county roads. Public works director Richard Nielson said regularly scheduled road maintenance will go forward in the next 12 months but that major road building won't take place until 2014 when construction begins on roads in the south end of the county. Daily Herald

Provo Data Firm Pledges 1,000-plus Jobs by 2020

In return, state agency offers millions in tax breaks to Qualtrics, others.

Qualtrics, the fast-growing data collection software firm in Provo, will get a multimillion dollar tax break from the state of Utah if it creates almost 1,100 jobs over the next seven years, the Governor’s Office of Economic Development board decided Thursday.

"This is a great company for Utah, great jobs, [a] good investment," Teri Klug, director of strategic development at the Economic Development Corporation of Utah, told the board after it unanimously approved the $10.8 million post-performance tax credit in return for a pledge to create 1,080 jobs by the end of the decade.

"I think that they’ll grow nationally, and then they’ll have their headquarters here locally," Klug said. "Just stay tuned."

The jobs must pay at least 125 percent of the Utah County average wage, which the Bureau of Labor Statistics says is $724 a week. Some will pay much more.



"These jobs do pay approximately 165 percent of the average county [wage] without benefits. With health care benefits these are high-paying jobs in excess of 175 percent of the average county wage," Christopher Conabee, GOED’s managing director of corporate recruitment, said.

Stuart Orgill, a Qualtrics co-founder, wouldn't confirm those percentages. But the tax credit will help the company keep its headquarter in Provo, he said later.

With more than half of the Fortune 100 companies and 1,300 universities as customers, Qualtrics’ sales have been doubling each year for six years, Orgill said. Managing the growth has been difficult, and the company’s need for more senior management is outstripping its ability to develop enough leadership talent from among its 250 employees. The problem pushed Qualtrics to think about moving out of Utah, he said.

The question became, "Do we want to bring additional people from outside [the state], or do we want to move to a location that would be in a very established tech sector?" Orgill said. With the incentive’s help, the company now will be able to recruit managerial talent without leaving Provo, he said.

The investment was the largest first-round speculation in a Utah software startup since 2008, according to GOED.

Also Thursday, GOED’s board approved two other tax incentives:

• The Royal Bank of Scotland will receive a post-performance tax credit of $5.3 million, in return for creating 50 more jobs at its support center in Taylorsville. The incentive expands an existing pact the bank forged with GOED two years ago, when the state development agency agreed to provide an $8.6 million tax credit to one of the bank’s divisions, on the condition that it create 260 jobs by 2025.
• Workday Inc., a California-based business software company, will receive an $8.4 million post-performance tax credit. The company has pledged to create 500 jobs in Salt Lake City over 15 years. The agreement modifies an incentive GOED gave the company in March. At the time, Workday planned to create 250 jobs. Salt Lake Tribune

Utah County FrontRunner, airport TRAX lines still on track

Commuters heading to Salt Lake City from Utah County may have an alternative form of transportation sooner than expected.

Construction and testing on the FrontRunner South commuter rail line is moving ahead faster than anticipated, according to the Utah Transit Authority.

It promises commuters they will save time when the new FrontRunner South line opens Dec. 10. The agency projects approximately 6,800 passengers will ride the train each day. In addition to four stops in Utah County, FrontRunner South will also have stops in South Jordan and Murray.

According UTA spokesman Gerry Carpenter, who said the FrontRunner South line is expected to begin transporting passengers beginning Dec. 10. He added that the project is also under budget thus far.

He said this phase allows the agency to ensure that all track signals are working properly, operators are fully trained and schedules are appropriately aligned. Test trains run at maximum speeds of up to 79 miles per hour, he said, the same top speed allowed when service begins.

As for the Airport TRAX line, the $350 million extension is scheduled to be operational by April 2013.

Under construction since January 2009, the new light rail line is one of five rail projects UTA has had on its construction agenda in the past few years. The others include the $535 million Mid-Jordan TRAX extension and the $370 million West Valley TRAX line — which both began operation in August 2011. Also in the works are the $212 million Draper TRAX extension and the aforementioned $850 million FrontRunner South commuter-rail line that will run from downtown Salt Lake City to Provo. Deseret News

Hundreds attend hearing on 50 percent tax increase in Orem

After eight hours of a public hearing for truth in taxation, the Orem City council voted 4-3 to approve a compromise property tax increase of $1.7 million or nearly half of the proposed $3.345 million increase.  City staff will have to make up the remainder of the $3.3 million shortfall through cuts in budgeted service vehicles, a one-time take from the city's reserves and no employee raises.

The property tax increase proposed by city staff is intended for the most part to cover a $2.8 million debt payment to UTOPIA, an interlocal consortium of cities seeking to provide residents with fiber optic networks throughout their cities. Since its inception nearly 10 years ago UTOPIA has operated in the red. According to a recently released audit by the State Legislative auditor, UTOPIA has millions of dollars in bond indebtedness, has been grossly mismanaged and has gone against state open meetings law. Orem is contractually obligated to help payoff $185 million of that indebtedness until 2040.

UTOPIA is not the only subject on the tax increase list. There is also a great need for new emergency vehicles, cost of living increases in some utilities, the need for more high-tech equipment in the city offices, and more.

Many residents brought up old and continuing issues such as the continual maintenance costs on the Center

For Story, the underground parking debacle at Midtown Village and other financial missteps.

The one promise city council members did get from many of those attending is that they will remember how they voted come the next election.  Daily Herald

Highland City raises property taxes despite residents' plea for alternatives

Highland City officials approved a $900,000 property tax increase during a truth-in-taxation hearing Tuesday night in the city council building.

The increase passed with a 3-2 vote. An amendment was added that gives the tax increase a five year sunset period.

Residents of Highland pleaded for alternatives to the increase, including a more business-friendly attitude from the city in order to broaden the sales tax base.

John Park, Highland city administrator, encouraged Highland residents to shop within the town to increase sales tax revenues. However, residents said the city isn't business-friendly, and the lack of commerce makes it difficult to spend money within the city.

A truth-in-taxation hearing is required by the state after a municipality approves a property tax increase. The state also requires certain disclosures before the hearing is held. A final decision is made during the meeting, in which the new tax rate can be reduced or eliminated, but not increased.

Residents in Highland have resisted commercial development in the pursuit of a neighborhood-style city, Scott Smith, a member of the Highland City Council, responded.

The U.S. economy's recovery isn't guaranteed, said Royce Van Tassell, associate vice president of the Utah Taxpayers Association. "Taking money from the residents of your taxpayers is not a good way to keep that recovery going," he said.

City officials laid blame for the added costs on public safety to increase staffing in Cedar Hills and Alpine. Expenses per household in Highland rose by 58.6 percent since 2000 to $2,054.

Highland’s expenses per household have seen a 5.9 percent compound annual growth since 2000 while revenue rose 4.11 percent. This could mean the city’s expenses are growing at a faster pace than its generated revenues. Deseret News

Provo council hears proposal to stop new MTC building

Council members got their first look at the controversial amendment in Tuesday's council study session. The ordinance amendment was submitted by the Legacy Committee, which consists of neighbors in the Pleasant View neighborhood protesting a proposed nine-story building at the Missionary Training Center. They fear the building will block their view and hurt property values.

According to Community Development director Gary McGinn, a proposed ordinance amendment to the public facility zone that would require anyone proposing a building taller than two stories to get a conditional use permit -- and have a public hearing -- is not an effective use of city code. However, he said the real issue is about the community.

Whether or not it will stop the MTC building, the council will hold a public hearing on the ordinance amendment at the Aug. 7 council meeting. Daily Herald

First mixed-use development goes before Highland city council

A contractor has proposed a mixed-use plan for the 77 acres north of the Highland Cemetery. The preliminary idea, which includes a commercial aspect, was discussed at the Feb. 21 Highland City Council meeting. Highland has been trying to find more ways to increase its tax base, and some have considered retail sales as a good way to accomplish that goal. Daily Herald

Location: Highland, UT

Provo sales tax numbers increase

Provo city's sales tax revenues were up 13.24 percent in September compared to the prior year and are up 5.52 percent for the first quarter of the fiscal year. Daily Herald

Population shifts threaten city sales tax revenues

Shifting populations across Utah are forcing city governments to cut employees and services as residents, and a greater share of sales tax revenues, leave mature communities and head to new developments. As communities mature and become more expensive, areas with new property developments are attracting growth, and along with that, a bigger share of the state's sales tax revenue.

Population growth plays a key roll in how cities fund their operations. Utah uses population measurements to redistribute some sales tax revenue, so newer communities have funds to support their growth. For every $100 spent, communities keep 50 cents of sales tax, while another 50 cents fund a statewide pool that is doled out based on relative population size. Deseret News

Sundance festival makes big economic impact

The 2011 Sundance Film Festival had a $70 million economic impact on Utah — including $5.9 million in tax revenue — according to a report released Tuesday by the Sundance Institute. The annual event, held in January for 10 days in Park City, Ogden, Salt Lake City and at the Sundance Resort, brings a tourism boom and world-wide media attention to the state. According to the report — conducted by the University of Utah's Bureau of Economic and Business Research — an estimated 45,797 people attended the 2011 festival, up 11 percent from 2010. Of that number, 30,596 came from outside of Utah. Deseret News

UTA’s tax revenues rebound after bleak start to the year

An apparent rush of spending by Wasatch Front consumers this summer has put the Utah Transit Authority’s budget back on track, but officials say the revenue slide throughout the recession may ding the agency’s bond rating when it borrows up to $200 million next month for rail construction.

UTA took in $16.7 million in June, about $1.3 million more than projected, and made up most of a $1.5 million gap between year-to-date revenues and the budget they support. It’s enough to make the agency more comfortable that it will end the year in the black, but not enough to celebrate an end to austere times or the fare hikes they helped spur.

The agency’s tax collections so far are almost identical to last year’s at the six-month mark, but the projected total by year’s end is $19 million lower than the pre-recession peak of $192 million in 2007. The Deseret News