City Council Regular Meeting

MINUTES OF COUNCIL REGULAR MEETING AUGUST 13, 2024 -1- THE WEST VALLEY CITY COUNCIL MET IN REGULAR ELECTRONIC SESSION ON TUESDAY, AUGUST 13, 2024 AT 6:30 P.M. IN THE COUNCIL CHAMBERS, WEST VALLEY CITY HALL, 3600 CONSTITUTION BOULEVARD, WEST VALLEY CITY, UTAH. THE MEETING WAS CALLED TO ORDER AND CONDUCTED BY MAYOR PRO TEM CHRISTENSEN. THE FOLLOWING MEMBERS WERE PRESENT: Don Christensen, Mayor Pro Tem/ Councilmember At-Large Lars Nordfelt, Councilmember At-Large Tom Huynh, Councilmember District 1 Scott Harmon, Councilmember District 2 William Whetstone, Councilmember District 3 Jake Fitisemanu, Councilmember District 4 ABSENT: Karen Lang, Mayor STAFF PRESENT: Ifo Pili, City Manager Nichole Camac, City Recorder John Flores, Assistant City Manager Eric Bunderson, City Attorney Colleen Jacobs, Police Chief John Evans, Fire Chief Jim Welch, Finance Director Steve Pastorik, CD Director Layne Morris, CPD Director Coby Wilson, Acting Public Works Director Jamie Young, Parks and Recreation Director Jonathan Springmeyer, RDA Director Sam Johnson, Strategic Communications Director Ken Cushing, IT (electronically) Travis Crosby, IT OPENING CEREMONY- COUNCILMEMBER WILLIAM WHETSTONE Councilmember Whetstone introduced 3 sons whose parents were refugees from Bosnia and recently obtained citizenship. They explained their experience and Councilmember  MINUTES OF COUNCIL REGULAR MEETING AUGUST 13, 2024 -2- Whetstone asked members of the Council, staff, and audience to rise and recite the Pledge of Allegiance. APPROVAL OF MINUTES OF REGULAR MEETING HELD JULY 23, 2024 The Council considered the Minutes of the Regular Meeting held July 23, 2024. There were no changes, corrections or deletions. Councilmember Fitisemanu moved to approve the Minutes of the Regular Meeting held July 23, 2024. Councilmember Whetstone seconded the motion. A voice vote was taken and all members voted in favor of the motion. PUBLIC COMMENT PERIOD Mike Markham stated that he is disappointed that the Smith Entertainment Group purchased the South Towne Mall to build a practice rink for the NHL hockey team. He indicated that conversations should have occurred with West Valley City to use the Maverik Center. Jim Vesock stated that he would like the City to require that campaign signs be removed within a certain time frame. He also expressed concern regarding Code Enforcement. Heather Brooks indicated that she is concerned about the increase in her property taxes. She also indicated that the street sweeper drags asphalt down her street when it comes by. Cameron Roberts expressed concern related to on-street parking and Boarding Homes in his neighborhood. Josh Cedarholm indicated that he lives near Stonebridge Golf Course and his home, as well as those of the neighbors, are constantly being impacted by stray golf balls. He requested that something be done to protect the neighborhood. Ifo Pili, City Manager, stated that Boarding Homes are a big issue throughout the City and noted that staff is aware of the problem and is actively working on ways to mitigate the issue. He noted that this is a difficult situation to resolve. Ifo also stated that staff can look into possible solutions for the golf ball issue but noted that living next to a golf course is a hazard that can’t fully be mitigated. He indicated that the property tax presentation is next on the agenda and will hopefully answer any questions or concerns. Ifo noted that staff would look into the street sweeper issue as well. Mayor Pro Tem Christensen indicated that the City did try to work with the Smith Entertainment group but they were not interested.  MINUTES OF COUNCIL REGULAR MEETING AUGUST 13, 2024 -3- PUBLIC HEARINGS A. ACCEPT PUBLIC INPUT REGARDING THE BUDGET OF WEST VALLEY CITY FOR THE FISCAL YEAR 2024-2025 Mayor Lang informed a public hearing had been advertised for the Regular Council Meeting scheduled August 13, 2024, in order for the City Council to hear and consider public comments regarding the Budget of West Valley City for the Fiscal Year 2024-2025 Written documentation previously provided to the City Council included information as follows: This resolution adopts the final budget for West Valley City for the 2024- 2025 fiscal year and sets a date for public comment at a hearing to be held on August 13, 2024. West Valley City will adopt a final budget that will be made available for public inspection during regular office hours in the City’s Recorder’s office and gave notice of a hearing to receive public comment before the final adoption of this tentative budget for FY 2024-2025. Jim Welch, Finance Director, provided an overview of the budget hearing for the fiscal year 2025, noting that it also serves as a "truth in taxation" hearing. This process allows a governmental entity within the state to adjust property tax rates. Jim highlighted that this year's budget is $113 million, with two-thirds of the revenue coming from taxes—primarily sales taxes and property taxes. Sales tax, being volatile, poses some economic challenges, while property tax remains stable and controlled by the city, as permitted by state law. The budget's expenditures are largely directed towards public safety, with over 50% allocated to the police and fire departments. Other city operations, including public works and parks, account for the remaining expenses. Jim emphasized that the hearing specifically addressed the collection of a judgment levy, not a property tax increase. A judgment levy occurs when businesses successfully appeal their property assessments, resulting in rebates. To cover this shortfall, the city is allowed a one-time tax rate adjustment. For this year, the judgment levy is $192,200, affecting the average residence by about $3.28 and a business by $5.96. This adjustment is not a recurring increase; it's a one-time fix to balance the budget due to the appeal. Jim also explained that property taxes are based on revenue rather than rate, meaning even if the rate decreases, higher property values might still result in increased taxes. Recent legislative changes MINUTES OF COUNCIL REGULAR MEETING AUGUST 13, 2024 -4- require the city to declare that no recurring ad valorem tax revenue will be generated from this adjustment and to disclose the proposed consolidated rate changes within the county. West Valley City is the only entity adjusting its rate for a judgment levy this year. Jim concluded by inviting questions and confirming that the hearing met all statutory requirements. Councilmember Huynh asked if the City studies sales tax rates to reduce the property tax rates. Jim emphasized the importance of accurate revenue projections, noting that a significant amount of time and effort is devoted to the process. He explained that the budget process began nine months ago, and after its completion, there will be a brief break before resuming again in December. The city closely tracks all revenue streams, particularly sales tax, on a monthly basis. These projections are based on historical trends, economic expectations, and the city's growth. Jim highlighted the volatility of sales tax revenue, which can fluctuate with the economy. In contrast, property tax is much more stable, with the city historically collecting 99% of due property taxes. This stability is recognized by bond rating agencies and the state, which is why the legislature allows city councils to influence property tax rates. While sales tax revenue can be strong, it varies from year to year. The city does its best to attract new businesses to boost sales tax revenue, which is a key component in avoiding the need for property tax increases. The city's economic development department plays a crucial role in this effort, making economic growth a high priority. Councilmember Nordfelt stated that one of the documents in the presentation shows a 100% tax increase but in actuality, the tax rate is actually going down. He indicated that because this is a judgment levy, the rate is going from zero. Councilmember Fitisemanu asked if it’s normal for West Valley City to be the only entity in the county capturing a judgement levy. Jim emphasized the consistency of the city's approach, stating that West Valley City is probably the most consistent entity in Salt Lake County when it comes to handling property tax adjustments. He noted that while Salt Lake City and other entities might impose larger judgments or more frequent adjustments, West Valley City has been steady and measured in its approach. Jim explained that when a judgment is awarded, it's not just imposed on West Valley City; it affects all the entities to which the particular business pays property taxes, such as the school district or service districts. The judgment levy is just a small piece of the overall tax burden, but it's important to address it openly. He MINUTES OF COUNCIL REGULAR MEETING AUGUST 13, 2024 -5- mentioned that this year's judgment levy of $192,000 is relatively minor, equating to about $3 per year for a residence. However, Welch stressed the importance of discussing it publicly, as these amounts can accumulate over time. For example, $192,000 this year could be followed by $300,000 next year and more in subsequent years, potentially leading to a significant shortfall in funds for public services. He concluded by highlighting that while other cities may have different philosophies regarding judgment levies, West Valley City prioritizes equity and transparency, seeking to avoid the need for larger operational tax increases in the future by addressing these smaller adjustments as they arise. Mayor Pro Tem Christensen opened the Public Hearing. Jim Vesock thanked Jim and his team for their hard work on completing the budget. He also recognized Chief Evans and John Flores for their efforts as the interim City Manager and Assistant City Manager. He noted that each department should be accountable for their budget this coming year. Mike Marham agreed with the previous statement. He thanked Jim for explaining the budget process in a way that can be understood. Carlos Moreno indicated that he is running for Salt Lake County District 2 and is in attendance to learn about the budget process and get a better understanding of the City. Mayor Pro Tem Christensen closed the Public Hearing. ACTION: RESOLUTION NO. 24-123, ADOPT A FINAL BUDGET; MAKE APPROPRIATIONS FOR THE SUPPORT OF WEST VALLEY CITY FOR THE FISCAL YEAR BEGINNING JULY 1, 2024 AND ENDING JUNE 30, 2025; AND DETERMINE THE RATE OF TAX AND LEVYING TAXES UPON ALL REAL AND PERSONAL PROPERTY WITHIN WEST VALLEY CITY, UTAH, TAXABLE BY LAW FOR THE YEAR 2024 The City Council previously held a public hearing regarding proposed Resolution 24-123 that would adopt a Final Budget; Make Appropriations for the Support of West Valley City for the Fiscal Year Beginning July 1, 2024 and Ending June 30, 2025; and Determine the Rate of Tax and Levying Taxes Upon All Real and Personal Property Within West Valley City, Utah, Taxable By Law for the Year 2024. Upon inquiry by Mayor Pro Tem Christensen there were no further questions from members of the City Council, and he called for a motion. Councilmember Fitisemanu moved to approve Resolution 24-123.  MINUTES OF COUNCIL REGULAR MEETING AUGUST 13, 2024 -6- Councilmember Whetstone seconded the motion. A roll call vote was taken: Councilman Fitisemanu Yes Councilman Whetstone Yes Councilman Harmon Yes Councilman Huynh Yes Councilman Nordfelt Yes Mayor Pro Tem Christensen Yes Mayor Lang Absent Unanimous. MOTION TO ADJOURN Upon motion by Councilmember Huynh all voted in favor to adjourn. THERE BEING NO FURTHER BUSINESS OF THE WEST VALLEY COUNCIL THE REGULAR MEETING OF TUESDAY, AUGUST 13, 2024 WAS ADJOURNED AT 7:14 P.M. BY MAYOR PRO TEM CHRISTENSEN. I hereby certify the foregoing to be a true, accurate and complete record of the proceedings of the Regular Meeting of the West Valley City Council held Tuesday, August 13, 2024. _______________________________ Nichole Camac, MMC City Recorder