A few quick off-the-cuff observations as we commence the public process, and an invitation to our resident bean-counting "numbers people" to throw in their own 2¢
The Standard-Examiner heralds the beginning of the Ogden City annual budget adoption process with this morning's Top of Utah section story:
The Salt Lake Tribune is all over this story too:
The big news is that "Mayor Matthew Godfrey's proposed $153.3 million budget for fiscal 2012 projects a nearly $9 million increase in revenues from sales tax, property taxes, a sewer rate hike and other sources."
We'll offer a few quick off-the-cuff observations as we commence the public process, which if all goes well, will result in the state law mandated adoption of a final budget by June 22nd.
1) "Godfrey said in a budget letter to the city council that sales tax likely will begin to rebound in fiscal 2012 because of a WinCo Foods store that opened in April 2010 at 12th Street and Wall Avenue and a Wal-Mart Supercenter preparing for operation at 20th Street and Wall Avenue."
Our retort to that? Godfrey ought to be a little more cautious in this projection. In the local grocery business, retail sales tax revenue generation is akin to a zero-sum game. Barring population or individual income growth (which ain't happening), it's most likely that sales tax revenue in Ogden will merely be redirected during the next fiscal year away from traditional grocers, and toward discount mass merchandisers like WINCO and Wal-Mart. For what it's worth, this is one area where Ogden taxpayers shouldn't count the chickens before they're hatched.
2) At least one position will be eliminated in the Economic Development Department.
Our retort? This is one area where our City Council could realize some genuine municipal cost savings, if they have the political will to do so. The last time we examined the bloated Ogden City Economic Development Department there were 33 positions, generating an annual city obligation for salaries totalling $2,026,378. Cutting one or two positions isn't even a half-assed start. If the Council and Administration are serious about adopting a fiscally-conservative 2011-12 FY budget, they should look at the prospect of clearing out more of the Economic Development Department dead-wood.
3) "Godfrey's proposal calls for a 1.8 percent increase in water, sewer, storm sewer and refuse fees to offset additional fees the Central Weber Sewer Improvement District imposed on the city to help fund construction of a $140 million upgrade and expand its wastewater treatment plant."
Our retort? These fee increases could be avoided or mitigated if the Administration weren't continually dipping into the Business Depot Ogden revenue stream to fund Boss Godfrey's hare-brained and money losing economic development schemes. Our City Council originally sequestered BDO revenue to pay for increased infrastructure costs (such as water and sewer) but the overreaching Godfrey Administration (and at least one overly Administration-compliant City Council) long ago gutted those taxpayer-protective provisions.
That's it for now, O Gentle Ones, although we'll invite our resident bean-counting "numbers people" to provide their additional analysis of this embryonic proposed budget, if they wish. It should be fairly apparent that we haven't even "scratched the surface" with our own brief analysis, so we'd appreciate all the help that we can get.
And speaking of the proposed budget, you can find it here:
Have at it, WCF readers!
Thursday, May 05, 2011
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