Saratoga scales back in 2007
Lance Madigan - North County Staff
The topic that came up most often and dominated everything in Saratoga Springs in 2008 was the budget.
It actually began in the months leading up to this year, as the housing marketing started to stall throughout the nation, but particularly in Saratoga Springs.
It especially affected Saratoga, as one of the fastest growing cities in Utah. Saratoga Springs also had the double whammy that it relied heavily -- many would argue too heavily -- on revenue from new construction.
As early as February, the City Council was being advised by the administration that the city was experiencing a revenue shortfall. Early estimates put it at just over $1.1 million, but as the slump deepened that number more than tripled. And with a total operating budget in 2007-2008 of $8.2 million, that is a significant portion.
In an e-mailed interview, Jefferson Moss, Saratoga Springs City Council member, said, "As the fastest growing city on a percentage basis for seven years, we experienced tremendous pressure from our growth to keep up with the services that our city needed. With the housing collapse and credit crunch, our growth almost completely died. This left the city with a drastic shortfall in projected revenues, especially since our city had never raised property taxes once in our history. To say that the budget issue was difficult would be putting it lightly. As a council, we had to make very difficult decisions on what was the best for our city."
The City Council and Saratoga Springs administration rallied through the first part of the year -- cutting, trimming and even slashing in order to improve the numbers. Programs were scaled back. Projects were put on hold. Raises and benefits were affected. Staff were let go. Even the city's tenth anniversary Saratoga Splash celebration was slashed way back. By the time the new budget was due in June, the city was still short about $1.4 million.
Many felt that reliance on new construction fees and growth were the cause the city's financial woes.
"I was quoted in the press that I blamed the previous council for the shortfall. That is incorrect," said Denise Kelly, Council member. "I don't blame anyone. It is unfortunate that we haven't had previous increases, but it is no one's fault."
Others expressed concerns over the new police department and court the city had recently opened. As discussed over and over in the City Council, however, the city would have had to pay for public safety efforts regardless.
While the Saratoga Springs Police Department might have cost a little more than contracting through the Utah County Sheriff's office, the savings wouldn't have been significant.
"And the level of service we receive from Chief Hicken and his staff are far superior for the investment," said Brent Call, Council member.
So the City Council and administration hunkered down and reviewed the budget line item by line item.
"It was two, three meetings a week, going through every aspect of this budget," said Moss. "There were literally things we were knocking off for $50."
"We made significant cuts in the budget by laying off many of our great employees and asked those that stayed to take cuts in benefits," said Moss. "Doing this was one of the hardest things I've ever had to do. Even with these cuts, we were still significantly in the red."
It was then that the City Council started talking about one of the most dreaded words a politician or resident can ever hear -- tax increases.
"We determined that any additional cuts would do more long term harm than any short term gain," said Moss. "Going through the Truth in Taxation Process -- especially in this difficult economy -- was tough."
In the end, the city imposed a property tax increase of about 116 percent upon its citizens. For a home valued at $200,000, that was projected to be an increase of about $24 a month.
"We knew that we weren't doing the popular thing. However, we felt this was needed to ensure the financial stability of our city to provide the necessary services that our residents need. We did receive our fair share of criticism and complaints," said Moss.
Saratoga Springs also formed a new volunteer Citizen Finance Committee with the goal of helping the City Council and administration review and plan ahead for such situations in the future. The City Council was recently put in place, and will hold its first official meeting in January.
As the city moves into 2009, the Council members and administrative staff say things are looking better. The first quarter financial reports in September showed the city right on track in both income and expenses. The Council and administration still point out that the entire country is facing economic hard times, but are confident they will come out better in the end.
City staff and leaders plan to continue to incorporate more volunteer help and assistance. Saratoga Springs recently honored several volunteers that helped to put in two parks at a $22,000 savings.
The Council has also put out a call for volunteers to help plan and organize the city's summer festival, the Saratoga Splash. This was originally done by a paid staff person who was let go last year.
"We really do have an amazing city. I strongly feel that we will make it through these difficult times stronger and a better city," concluded Moss.
For more information about how citizens can contribute, the Council and administration encourage individuals to review the city's Web site at www.saratoga-springs.net.
