Sunnyside City Council adopted a resolution Tuesday that allows for projected property tax revenues to be budgeted into the current fiscal year's budget.
In the original budget ratified in June, Sunnyside officials had proposed to transfer $93,000 from the sewer and water fund into the general fund for the city. However, that number is projected to be lower because not as much money will need to be transferred.
The city has approved a property tax increase that will generate $50,000 more than originally budgeted for the year.
Initially, the city had proposed to increase by a larger amount.
Last year, the city's rate was set at .002203 percent. That rate had generated $119,517. The proposed rate increase would have raised the tax to .004203, which would have generated more than $104,000 in additional funds.
However, the city's primary property tax payer, Sunnyside Cogeneration had objected to that increase and negotiated with the city to cut the increase in half.
The power producer holds approximately one tenth of the assessed property value in Sunnyside. Accordingly, roughly 90 percent of the tax increase would have to be paid by the power plant.
The finalized property tax increase was set at .003203 percent with the stipulation that the city would not adjust its property tax rate for five years and that the power plant would not request the value of the facility to be reassessed.
That adjusted rate is expected to generate more than $50,000 dollars for Sunnyside. That anticipated change needed to be addressed in the city's budget.
By increasing the projected revenue from property taxes, the city reduced the amount needed from sewer and water. Instead of $93,000, Sunnyside officials expect to transfer $39,099 into the city's general fund.
The adjustment is necessary to maintain a balanced budget in light of the increased revenue expected from property taxes.
Three members of the council were present for the vote.
Councilmembers Shari Madrid, Gene Vernon and Tony Riffle all voted in favor of the motion.
Councilmember Doug Parsons was not present as he is out of the area serving in the military. Councilmember Sam Leonard was absent from the meeting as well.
In an unrelated matter at the Sept. 6 meeting, Madrid asked whether the city would be able to use Utah Permanent Community Impact Board money that has been allocated to repair city streets.
Various streets in the city are in need of repair. Madrid wondered whether the city would be able to repair the streets before the winter.
Mayor Bruce Andrews said he expected the city to be able to repair the streets soon. He said the CIB would release the funds as soon as the city sent a letter indicating Sunnyside's readiness to use the funds.
That discussion brought up the question of whether the city would need to bid for the project. The city previously accepted a bid from Nielson Construction for the street repairs.
The bid has exceeded the date for which it would be honored. The council agreed to have a representative from Nielson evaluate the current state of the streets needing repair and to adjust the bid to reflect current construction and labor costs.
The council said it did not anticipate needing to put the proposed repairs out for bid a second time. Rather, it expects the adjustment to Nielson's bid will be adequate.