Strong economic conditions statewide formed the backdrop as the Orem City Council recently approved a nearly $88 million budget for the new fiscal year.

"As you are all aware, economic conditions are very strong as compared to three or four years ago," said Jim Reams, city manager, in a presentation to the council.

He cited record-high job growth, record-high residential and non-residential construction, near record-high retail sales growth, and record-low unemployment statistics as evidence of the state's economic strength.

Sales taxes make up 41 percent of the city's general fund revenues, and sales tax collection growth in the city remains above 12 percent for the second straight year, he said.

A number of new employee positions were funded in the budget to cope with the increasing demand for services throughout the city, Reams said.

The new positions include a development services technician to assist customers with zoning and building questions and applications, and four paramedics to staff a fourth ambulance crew. The Cultural Arts and Recreation Enrichment (CARE) tax will partially fund a part-time librarian to assist with cultural arts and library outreach programs. Two other library employees will have their work time increased from one-half to three-quarters time.

Two technicians will be added to the street and concrete crews, one to the water distribution crew, and two to the storm sewer crew to monitor and inspect compliance with storm sewer regulations on construction sites.

Salaried employees will receive a 4.5 percent average wage increase, and the minimum wage for most part-time, non-benefitted employees will be increased to $7 per hour.

Some proposed one-time capital improvement projects were postponed to free up funds to install traffic signals at 800 South/400 West, 800 South/Main Street, and 400 North/400 West. The postponed projects included re-carpeting the north wing of the library and more streetlights. Money for new sidewalks and roadside landscape improvements was cut from $250,000 in each category, to $125,000.

Two other traffic signals, at a cost of $250,000 each, will be installed at 400 South/1200 West and 980 West/800 North.

Other projects in the one-time-funds category include the renovation of Fire Station #2, with seismic upgrades, $650,000; cemetery building, road, and sprinkler upgrades, $175,000; park fence upgrades and replacements, $100,000; parking lot maintenance at parks, $80,000; and miscellaneous recreation facility repairs and equipment, $62,000.

Property taxes were not increased in the budget, and the franchise tax and municipal energy sales and use tax remain at 6 percent. There is a water rate increase of $1 per month for a 3/4-inch meter service, and proportionate increases for other meter sizes, along with an increase of five cents per 1,000 gallons of water used. The water rate increases are to cover the debt service cost of a $4 million revenue bond, and Jordanelle water assessment charges.

The $4 million revenue bond will be used to replace aging water lines in areas where the city is already doing road reconstruction to avoid having to tear up and patch the new roads to work on the lines at a later date.

Sewer rates are also going up, with a 7-cent per month inflationary increase and a 1-cent increase per 1,000 gallons.

After an education campaign targeting businesses facing permit violations, the city will implement new sewage pre-treatment charges beginning Jan. 1.

In its role as the governing board of the organizations, the City Council also approved budgets for the Redevelopment Agency ($2,652,000); Municipal Building Authority ($1,432,000); and Special Services Lighting District ($1,345,000).

This story appeared in The Daily Herald on page B1.