LINDON -- For the first time in Lindon's recorded history, the city is raising its property taxes. The 30-percent increase will bring $300,000 more to the municipal budget.

Constituent reaction to the public hearings for changing the tax rate has been next to nil -- two people showed interest -- and that has city leaders worried.

"I think people are largely unaware," said City Administrator Ott Dameron. Staff have put information on the tax increase in the newsletter, council members have talked to constituents, and on Friday city officials and staff hosted a news conference.

They also have informational open-house meetings planned, one July 21 and the other Aug. 11 at City Hall at 5:30 p.m. Neither meeting is required by law. On Aug. 18, the final Truth in Taxation hearing will be held.

Councilman Bruce Carpenter said he has even had a couple of residents propose the city restore the tax rate to what it was 20 years ago.

"That would be 2.5 times what it is now," Carpenter said. "We have agonized over it. ... They are our neighbors; these are our friends."

Of course, the officials' family budgets will be affected, too. Both Carpenter and Mayor Jim Dain will be paying slightly more than the average for their new tax, about $75 a year, but they both said their wives say it makes sense. "They've been a wonderful sounding board," Carpenter said. "None of us are wealthy people."

Councilwoman Lindsey Bayless said the council has been concerned for those with fixed incomes. Her husband is retired, so they fall within that grouping. The change in the tax rate will cost them an additional $77.66 per year for their 3-acre property.

"This has been in discussion for some years; the problem is the decline if you don't do something about it," Carpenter said, adding that they have finally come to realize over the years there is no such thing as a good time to raise taxes.

On Tuesday, the Lindon City Council unanimously approved an operating budget for 2009-2010 based on the tax hike. The raise will offset about one-third of the public safety expenses for the city.

Even with that raise, the rate still won't match the rate the municipality had 20 years ago.

In 1986, Lindon City's general purpose tax rate was at 0.003. In 2007, it was less than half that, and city officials are predicting that the municipal general purpose tax "is set to sunset in another 18 years."

According to Lindon's auditor, the city tax will be next to nothing by then.

"We have never raised it," Carpenter said. "It has actually decreased since the county set the certified tax rate."

He said city officials and staff have seen the municipal tax rate shrink for several years, but now with the economy the way it's been, something needs to be done or community services will be hurt.

"We have talked about what it means to them if we don't do this," Bayless said. "What it means to our quality of life."

Positions within the city have not been filled and other expenses have been cut by reducing transportation and training.

Lindon has put a soft hiring freeze in place. Cost-of-living raises and performance raises have been frozen, and five city positions haven't been filled, decreasing staffing by attrition.

City leaders have had to borrow off of the municipal Enterprise Fund to pay for shortfalls within the 2008-2009 fiscal year final budget so a balanced budget could be reported to the state. Council members must set the terms for repayment on the in-house loan, and discussions have focused on a three- to five-year payback agreement.

"This is the first time we have ever used the Enterprise Fund," Dameron said. "If things don't rebound significantly, there will be layoffs."

The city has already reduced staffing by 10 percent.

"It's important for the public to understand we have cut everywhere we can," Dain said.

The addition of a full-time police and emergency response service stationed within the city in 2008 has reduced response time from 12 minutes to three minutes, the mayor said, and even though it is an expense, he would like to see the response time stay that way.

"Is that worth six dollars a month more?" he asked. "Sure it is."

Truth in Taxation open house

• July 21, 5:30 p.m., City Hall

• Aug. 11, 5:30 p.m., City Hall

Truth in Taxation hearing

• Aug. 18, 5:30 p.m., City Hall

• Cathy Allred can be reached at heraldextra@digis.net.

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