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Layton City is in good financial shape
Sept. 18, 2010
The slowdown in the economy has had a significant impact on the City’s revenues. However, the City is in good financial shape. City Management believes that Layton is in better financial condition than most other cities of a similar size. The slowdown has required some changes in spending and operations.
The City has handled the decline in revenues in a number of ways. First, the City had previously maintained fund balances in the event of revenue short falls. Some of these have been used to augment the lower revenues. Second, the City has taken steps to lower expenses. The reductions were focused on items and areas that would be the least disruptive to providing essential services. Third, and probably most significant in terms of dollars, projects for street and utility improvements have been delayed and pushed into the future. Fourth, hiring of personnel has been limited with some positions being frozen when a vacancy has occurred. Essential positions have been filled so essential functions have not been affected.
City Management believes that Layton citizens have not experienced any decline in City services or service levels during this time. Elected leaders and City Management remain committed to continuing all essential services and service levels as the City, the state and the nation work through the recessionary period.
Sales tax revenue makes up about 50% of all tax revenues, property tax is about 30% and all other tax types is 20%. Beginning in March 2007, sales tax revenues have declined approximately 20%. Recently there have been signs that the decline may be leveling off, but it is too early to tell for sure.
Another major revenue source that has declined significantly is development impact fees. Development impact fees are charged to developers of residential and commercial properties. The decline in construction activity was mirrored in the collection of impact fees, which declined about 58% during the period beginning in 2007 through June 2009. The decline in these revenues did not affect the daily operations of the City because these revenues can only be used for new or capacity improvements of streets, parks and utility systems. In the past few months, construction activity has begun to pick up and the City is projecting that to continue into 2011.
Layton City’s fiscal year ended June 30, 2010, and a new budget year began July 1, 2010. The budget for the 2010-2011 fiscal year is posted on the City’s website. From the homepage, select "Departments," then "Finance Department," then "Reports and Forms."