Agenda Item Title:
Title
Metropolitan Water District of Salt Lake & Sandy presenting a proposed tax increase.
Body
Presenter:
Annalee Munsey - General Manager
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Description/Background:
The Metropolitan Water District of Salt Lake & Sandy (MWDSLS) is a special district that provides drinking water to Salt Lake City and Sandy City. MWDSLS has identified escalating costs and capital needs for aging infrastructure projects within the system. In order to generate revenue sufficient for these capital needs their FY25 budget proposes an increase of the tax rate from .000216 to .00035 to generate revenue of $1,867,420. The District's last property tax rate increase was in 2008 which set the rate at .00035. Since 2008 the property tax rate has eroded as the values of property have increased. Currently the property tax rate is .000216. Consistent with current statute 17B-2a-608 increasing the certified tax rate requires approval by the legislative body of each municipality that appoints a member to the board of trustees. In this case both Salt Lake City and Sandy City appoint members to the Metro Water board of trustees.
Fiscal Impact:
The fiscal impact of this proposal would generate an estimated net revenue increase of $1,867,420 from Sandy City property owners.
Further action to be taken:
This item will return to the Council on 04/16/2024 for a vote on whether or not to approve the proposed increase. Action will also need to be taken by the Salt Lake City Council to increase the certified tax rate.
Recommended Action and/or Suggested Motion:
Recommendation
No formal action will be taken on this informational item. The Council may ask questions and seek additional information.