Logan Mayor Craig Petersen says he is keeping a close eye on what is going on in the current session of the Utah legislature.
On Wednesday’s “Let Me Speak to the Mayor” on KVNU, the mayor said there are always bills that affect cities in one way or another.
And he said this year is no different.
“There’s actually a bill that would constrain the cities,” Petersen explained, “in terms of their ability to transfer money from what we call our enterprise fund, such as our electric utility fund, into our general fund.
“If that were to occur, if we weren’t allowed to do that, it would have a catastrophic impact. It would require a substantial property tax increase to balance the budget.”
Petersen said the difference between cities and the legislature is that the legislature has control over revenue sources and over monitoring the rates and so forth. He said the cities are more, “passive recipients.”
He said cities can change the property tax rate but they are locked into the sales tax rate and cities are constrained in what they can do with property taxes. On the other hand, he said, legislators can do pretty much what they please.