Salt Lake Valley
Law Enforcement Service Area
Salt Lake Valley Law Enforcement Service Area3365 South 900 West Salt Lake City, UT 84119Phone: (385) 468-9888Fax: (385) 468-9889/ Email
Presentation delivered at board meeting on June 21, 2017.
2017 SLVLESA Tax Rate Presenation
Property owners in Herriman, Riverton, and unincorporated areas of Salt Lake County collectively pay for law enforcement services via a property tax. Collected by the Salt Lake Valley Law Enforcement Service Area (SLVLESA), this dedicated tax will be used exclusively to pay for Riverton, Herriman and Unincorporated Salt Lake County services of the Unified Police Department.
The Salt Lake Valley Law Enforcement Service Area operates on a January 1 - December 31 budget year.
The Salt Lake Valley Law Enforcement Service Area Board will begin 2018 budget deliberations in May of 2017. The following key budget actions will be part of the Board's budget process:
year SLVLESA, at the direction of its Board, embarked on a five year strategic
planning process for the district.
SLVLESA is entirely funded with revenue from property taxes. The primary
goal of the plan was to develop a revenue strategy that meets the service
demands of the communities in which SLVLESA serves while ensuring the long-term
financial viability of the district.
SLVLESA has not raised property taxes since
assessing the tax in 2012. Several years
without a tax increase has begun to jeopardize SLVLESA’s financial stability
and erode the service level by using new growth revenue to offset inflationary
cost increases. SLVLESA is projected to
drawdown its fund balance by $1.3 million in 2016 and will draw below the state statute minimum of 5% in
2018, thereby making SLVLESA insolvent (UCA §17B-1-612).
In order to accomplish this strategic plan,
the SLVLESA Board adopted a resolution at the August 18, 2016 SLVLESA Board
meeting. The resolution proposes to
increase property tax by 9.5% for the 2017 budget and will annually consider inflationary
increases in years 2018 through 2021.
The proposed 9.5% tax increase for 2017 is
estimated to increase property tax revenue by $2.8 million.
The $2.8 million increase will be used for the
Determining the appropriate level of fund
balance can be difficult because every organization is unique. The Government
Finance Officers Association recommends a minimum of at least two months (16%)
of fund balance reserves.
SLVLESA is not structurally balanced and is drawing down fund balance to meet
operational needs. It is estimated that
the fund balance will fall to 10% by end of 2017 and below the state statue of
5% in 2018. The additional $1.7 million
in fund balance will ensure the financial stability of SLVLESA to provide the
essential service of public safety and to minimize TRAN’s (Tax Revenue
Anticipation Notes) borrowing costs.
SLVLESA has used new growth revenue to fund the increased market and
inflationary costs of providing law enforcement services. For example, SLVLESA currently uses the tax
revenue from new homes to fund the market/inflation increase. Ideally, SLVLESA would use the tax revenue
from new homes to fund new resources. Service
levels will decrease over time if new growth revenues are exclusively used to
fund the increased costs of providing law enforcement services.
the average annual inflationary increase to provide law enforcement services have
been roughly 4%. A majority of the
annual increase is due to approximately 80% of the budget being dedicated to
personnel. In order to provide
exceptional service to the community and remain competitive in the market, a
desirable compensation package must be available to retain and attract
SLVLESA has not dedicated new growth revenue
for new resources since 2012. The tax
increase will earmark $298 thousand for new resources to be added for the
demand of services. New resources are
defined as staffing, capital outlay, equipment, pooled services, and support. Moving forward, new resources will be funded
via new growth revenue.
The current tax rate is .001925 and the
estimated tax rate for 2017 will be .002106.
The tax paid on a $281,600 residence would increase from $298.14 to $326.18,
which is an annual increase of $28.04 or $2.33 a month. The tax paid on a $281,600 business would
increase from $542.08 to $593.05, which is an annual increase of $50.97 or $4.24 a month.