Mayor Byron Anderson says increase is needed to make up for ‘growth that’s gone away’

Grantsville City residents were virtually unanimous in decrying a nearly 50 percent property tax increase during a Truth in Taxation hearing held Wednesday night at Grantsville High School.

A crowd of about 75 people expressed objections and concerns over the city’s first tax hike in 17 years, many saying the timing of the move was poor considering the tough economic times.

Grantsville’s $3.6 million proposed general fund budget for the 2009-10 fiscal year is about $180,000 shy of being balanced. To compensate, the city needs to raise taxes, according to Grantsville Mayor Byron Anderson.

The 49.44 percent property tax increase would mean taxes on a residence worth $200,000 would increase from $291.72 to $409.20 per year. This would increase the city’s total property tax revenue from $854,653 to $1,263,736 million — a gain of $418,083. Although this hike would bring in more than the $180,000 needed to balance this year’s budget, Anderson it’s necessary to give the city some cushion for future budgets.

“This is happening because our revenues have gone away but the requirements for service haven’t,” said Anderson. “That’s grossly oversimplified, but it’s due to growth that’s gone away.”

That wasn’t what most Grantsville residents wanted to hear.

“What I don’t understand is what are we going to tell our grandmothers when this tax increase puts them out of their homes,” said Gary Buhler. “What are we going to tell our children when they want to but a home and they can’t? Something’s got to give and it shouldn’t be grandma and it shouldn’t be the children.”

Many residents sympathized with the need to raise taxes, but said the size of the increase was too much.

“I can see why we need an increase in our taxes,” said Michelle Pitt, assistant to Tooele City’s mayor and a Grantsville resident. “I can understand that sales taxes are down. But 50 percent? There is no other city in the state that’s asking 50 percent. Fifty percent is outrageous.”

James Vera, a candidate for city council, wanted to know if the tax increase would really commensurate with the city’s budgetary shortfall.

“The first question I have to ask is does this proposal meet or exceed the need?” Vera asked. “I know it’s hard to look through a crystal ball, but as you look at things the way they are, No. 1, are we as lean as we can be given the economy? We have to ask that of ourselves everyday. We don’t have any room for excess in our budget.”

Gary Fawson, a member of Grantsville City’s Planning Commission, told the council that when Keith Brown was mayor, he was also the sheriff, the dog catcher and the vet.

“He did all of those things and the city was just as nice then as it is now, as far as a good place to live,” Fawson said. “Try to run [the city] like a business. Take the money you’ve got and do what you have to do to make it work without trying to increase the pieces of the pie all at the same time.”

He added that because property values have increased every year, so have property taxes.

“It isn’t like we haven’t had an increase over the last 17 years,” he said. “Maybe you haven’t raised the rate, but you’ve had plenty more income. I’m requesting you try to live within your means.”

Christopher Fields, who is running for Grantsville mayor this year, added that a tax increase during economic hard times is irresponsible.

“It’s kind of like saying you didn’t have to pay your water bill for 17 years because we didn’t bill you, then you get billed for 17 years all at once,” Fields said.

Some observers offered examples of what other Utah cities were doing to balance their budgets without raising taxes.

Grantsville resident Casey Dunlavy, the son of Tooele City Mayor Patrick Dunlavy and the assistant director of economic development for Sandy City, said Sandy has been solving it’s budgetary shortfall by tapping a rainy day fund — something Grantsville doesn’t have.

“We’re taking our rainy day fund and using it conservatively,” said Dunlavy. “What are these increases in [Grantsville’s] taxes going to be used for? The only answer I’ve gotten has been to make up for shortfalls.”

Bryan Morris suggested any tax increase should come with a sunset clause — a provision that can repeal the law within a certain time period. This was met with approval from city council members Tom Tripp and Mike Johnson.

“I suggest you put a sunset clause on this tax increase so that next year you have to come back and go through this again if the economy doesn’t improve,” Morris said. “If it does improve, let the sunset clause take effect and let taxes go back down to where they were.”

Grantsville last raised taxes in 1992 by 4 percent. Anderson said that since he’s been mayor and while he was on the city council, the city has had cash problems before but never needed to raise taxes.

“Ever since I’ve been here, for 12 years, it’s been payday to payday,” Anderson said.

The city council will decide on the proposed tax increase at their meeting on Wednesday, Aug. 19, at 7 p.m. at Grantsville City Hall.

Missy Thompson: missy@tooeletranscript.com