Public Hearing August 11, :00 pm

On May 3, 2011, the West Bountiful City Council adopted a balanced tentative budget maintaining current service levels.

The City has not applied regular funding to streets maintenance The current budget for the Capital Streets Plan remains unfunded by $8.1 million

 Option #1 60 years no maintenance  1 Rebuild at 30 years ($5.00 per square foot)  Total cost for rebuild only – 20 $5.00 sf = $15,312,000  Option # 2 60 years with maintenance  Four slurry seals, two overlays with rebuild at 60 years ($3.00 per square foot)  Total cost for maintenance/rebuild plan – 20 $3.00 sf = $9,187,200  CARING FOR STREETS SAVES $6,124,800

 Leading Road Infrastructure Projects  700 West from 1000 to 1600  1550 N from 700 W to 725 W  800 West from Porter to 2350  725 West  800 West from Pages to DSB  400 N from 1100 W to 1450 W  800 W from 100 N to Pages  900 W from Pages South  Current Total Unfunded Street Liability is $8.174 million

 B and C Road Funds  Fuel tax collected and redistributed by the state based on miles/type of road  Impact Fees  Can only be used on collector roads (500 S, 500 W, and 400 N)  Federal, State, and Private Grants  Rarely available or predictable  Use of Fund Balance  Currently 6 to 7 years to accrue for one project  Currently 31 projects over next 20 years  Fund Balance alone stretches projects from 20 years to 200 years

 Full Time benefitted employees reduced from 25 to 20 (20% reduction)  401(k) benefit taken from employees saving $100,000 per year  Employee contributing additional 10% to benefit package  No COLA or salary increases for FY 2012  Constant effort to hold line on overtime and comp  Transferred Justice Court to County  Spending reductions and freezes last three years  Contracts evaluated and renegotiated or rebid  Grant for solar 10% reduction in electric costs

Property Value Certified Tax Rate Proposed Tax Rate Annual Increase Monthly Increase $ 100,000$81.35$135.91$54.56$4.55 $ 200,000$162.69$271.81$109.12$9.09 $ 300,000$244.04$407.72$163.68$13.64 $ 400,000$325.38$543.62$218.24$18.19 $ 500,000$406.73$679.53$272.80$22.73 $ 600,000$488.07$815.43$327.36$27.28 $ 700,000$569.42$951.34$381.92$31.83 $ 800,000$650.76$ $436.48$36.37 $ 900,000$732.11$ $491.04$40.92 $ 1,000,000$813.45$ $546.50$45.47 Median tax- assessed home value

Tax Collection Proposed Tax Rate$1,016,656 Certified Tax Rate-$608,512 Increased Collections$408,144

 The City has reduced costs to balance operating budget, but does not have long term funding for Streets Capital Plan, consisting of:  31 Projects across the community  Maintenance of existing street to prolong life and save money  Replacement of dead streets in connection with other utilities (Water, Storm Drain…)  The Plan is underfunded by $8.1 million  The proposed property tax increase averages about $10 month for a $200,000 home

 This increase in property taxes will allow for the proper maintenance of City streets on a pay as you go basis.  Maintaining the streets properly will save $6.9 million per streets life cycle.

 West Bountiful receives approximately $1.56M per year in Sales Tax Revenue  Of this revenue, $458,000 is committed to outside agencies by Sales Tax Sharing Agreements:  Bountiful City – 14% (Commons) to 35% (Gateway)  Term of agreement is 50 years  Developer – 43% (Commons)  Term of agreement is 10 years

 If you were to buy a computer from Costco for $1,000, your final payment would be $1, including sales tax.  The sales tax would be distributed as follows:  State of Utah$  Davis County$ 8.00  Shared based on population$ 5.00  Shared by interlocal agreement$ 2.85  West Bountiful City$ 2.15  Rap Tax$ 1.00

 Proactive maintenance for Streets will save millions of future dollars.  Option #1 60 years no maintenance  1 Rebuild at 30 years $4.50 to $5.00 per square foot  Option # 2 60 years with maintenance  Four slurry seals  Two overlays  No rebuild until end of 60 years $2.35 to $2.75 per square foot  For ½ mile of street 29’ times 2,640’ = 76,560 Sq. Feet  Option #1 Cost is $382,800  Option # 2 Cost is $$210,540  Savings of $172,260 per half mile of street  The City currently has just over 20 miles of streets  Total savings from Option #2 is $6,890,400 per rebuild cycle  CARING FOR STREETS SAVES MONEY