After weeks of intense discussions and tough decisions, what was once a $3.2 million deficit in Saratoga Springs is now a balanced budget based on a property tax hike that is going through the process of approval.

The city will operate on a budget of $15,267,899 for the 2008-2009 fiscal year -- that's down from the over $21 million in the previous year.

Although not official until a Truth in Taxation hearing can be held, the tentative budget was approved by resolution in a City Council meeting on June 17.

"The resolution accomplishes a couple of things," said Ken Leetham, Saratoga city manager. "It adopts a tentative, interim budget until we can adopt the final budget. This allows us to operate from July 1st until we adopt the final budget. The purpose of the delay is to go through the Truth in Taxation processes to raise the property tax levy."

Truth in Taxation requires that public notice be made and a public meeting held whenever a municipality increases taxes. Many cities, such as Saratoga Springs, will be raising property taxes this year in order to meet budget deficits. In Saratoga's case, they will be asking for a property tax rate increase from 0.000821 to 0.002548. This will provide the city with $2,068,370 in tax revenues to use for general purposes. In the 2007/2008 tax year, Utah County collected $680,000 in property taxes for Saratoga Springs.

For a $200,000 home, that means an increase of around $14 a month. Homes with higher properties values will, of course, experience a higher increase.

All residents would experience a utility increase as well. "The utility increase is mostly for sewer," said Leetham. "We are experiencing a huge increase in sewer treatment costs and are trying to figure out why with the District's help." Leetham explained to the Council that sewer costs had more than doubled, however city staff felt they had been overbilled. "If we could come to some resolution that we are overbilled, that cost would come back down." The average utility increase is projected to be about $10.

With such things as Splash fireworks cut in half and no cost of living increases for city employees, city officials were confident the new budget would be lean but doable. Even the City Council chipped in, cutting their own stipend by 10 percent. All departments experienced cuts with the exception of the new police department. In that department, Leetham explained they needed to increase the budget, however in the last year Chief Gary Hicken has been significantly under budget every month. "We need to be prepared for such things as overtime expenses," said Hicken.

"It would be irresponsible to reduce some of their budget items as they are budgeted in case they are needed," added Leetham.

City Council and staff have vowed to continue to review Saratoga's financial situation and prevent such an emergency from happening again. In his personal blog, Jefferson Moss, City Council member, said, "In looking back, I feel that there could have been a better response to this financial crisis. If we knew earlier last year, let's say, that we were hitting the skids on housing, than we could have begun making the needed cuts then [rather than waiting until June to make them]."

"My point of this post is that we are not done evaluating this budget deficit," said Moss. "I hope that we dig deep and get outside assistance to make sure that we are doing what we should be and are running this city as efficiently as possible."

In a phone interview last week, Mayor Tim Parker said, "I wish we were not where we are, but we just have to face it and deal with it. We will get through this."

The tentative budget will go into effect July 1, however city staff says the new property tax rate won't be initiated until after a Truth in Taxation meeting to be held sometime in August.