Cities around Utah County are planning large tax increases for the next fiscal year to meet budget requirements, but in the midst of a nationwide economic slowdown, Springville City's taxes will not be changing at all.

Springville Mayor Gene Mangum said taxes will not need to be raised this year unless residents vote to bond for a new library, a unique situation under any circumstances. Mangum said the economic security of the city is due to several years of good planning all around.

"I think we're fortunate from the standpoint that we've just taken a conservative approach for a number of years," he said.

City officials got in the habit of saving all the money they could years ago as they planned for a new administration building. As a result, the new civic center in the works now will be half paid for by money in the city's savings, while the other half will be covered with bonds. Still, Mangum said the cash flow from normal operations is designed to allow for the bonds without raising taxes.

City Treasurer Doris Weight said each department has worked hard to save money, such as by recycling office supplies and scrutinizing purchases. Some city policies requiring bids for services have helped to keep spending down.

"I think because of our purchasing policies maybe we are more frugal," she said.

Dave Allen, Springville City finance director, said Springville's current tax rate is .001413 -- a number that has dropped steadily for years. Allen said the city has benefitted from conservative practices, but it also has the advantage of sales tax over other cities. Some smaller cities, such as Mapleton or Saratoga Springs, may depend more heavily on fees from new construction. The construction has dropped off significantly in the last year, which has affected most cities.

"Like them, we've also had a significant downturn in those areas," he said.

While some cities are heavily impacted by a downturn in the construction market, Allen said cities like Springville that have a sales tax base are not hit as badly. Allen said city officials also saw that the construction revenue was dropping off and were able to cut back their own revenue expectations in turn. Allen said he has always tried to project revenue expectations conservatively to keep spending down, and it has paid off so far.

"As we see changes in the economy, that's already been taken into account," he said.

Allen said the sales taxes the city receives make a big difference, and he does not think the city will need to make any changes to its property taxes. The only way it will ever change is if residents want a new library, he said.

"I don't see in the future that Springville would rely on a property tax increase," he said.

Mangum said while the city may not need to increase taxes yet, a change is always a possibility. The biggest question in the city's future is electric rates, which he said the market can heavily impact.

"There is a concern in the energy market," he said. "That's such an unknown. Nobody really knows what's going to happen there."

In order to control rates in the energy market, Mangum said the city often keeps the rate steady in the face of ups and downs. The city may lose money one year when rates go up and are not passed on to residents, but that money is made up when rates fall. However, with recent changes, the city may not have a choice but to raise rates if energy costs get too high.

"If we start getting some wild swings in the market, then we could be subject to some increases that nobody wants," he said.

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