LAYTON -- There's no property tax hike in the immediate future for Layton homeowners. However, it will cost a bit more to water that lawn and to pay for the city's storm sewer fund.

That's all part of the 2007-08 city budget, which received tentative approval last week. However, the final budget session and public hearing is set for Thursday, June 21, at 7 p.m.

For single family residences, water rates are pegged to increase $1 a month on the base and 15 cents per thousand gallons based on a consumption rate for usage above 7,000 gallons a month.

The storm sewer fund user fee is also set to go up by $1 a month for single family users, while the "storm sewer development impact fee" is due to go up "significantly," says City Manager Alex Jensen.

The city's storm sewer impact fees were reconfigured following a master plan study, also to address "significant increases in construction costs and land prices," he said.

Four full-time positions are being added, along with two part-time and one position being changed from part-time to full-time.

"The city is in good financial condition," Jensen says. "The economy in Utah has remained vibrant and Layton has seen some improvement in the growth of sales, telecommunication and energy sales taxes."

But he noted that the increase in sales tax revenues is not as high as some other areas of the state.

"The city continues to face significant cost increases in vehicle fuel, natural gas and electricity," he says. "Construction material costs have skyrocketed and the cost of purchasing land for capital improvement projects continues to rise at rates far above general inflationary rates."

For all city funds, including water, sewer, garbage, etc., the budget comes to $52.4 million. That's a hike of $3.5 million, or 7.21 percent, over the current fiscal year. The increase is largely the result of capital projects and debt service, Jensen says.

The general fund, at $23.3 million, is up $997,000, or 4.47 percent. "That's largely due to continued growth of the city along with the cost increases for personnel and energy-related items," the city manager says.

"The challenge for the city continues to be from growth and increasing costs with a revenue stream that does not keep pace," he says.

Revenue includes $5.5 million from property taxes, while sales taxes, the biggest single contributor, have risen to $13.1 million in the coming budget.

Other revenue sources include $1.1 million from telecommunication taxes, and nearly $3 million from energy sales and use taxes. Impact fees, meanwhile, that are tied to new construction, are set to generate $2 million.

For more information, call the city finance department at 336-3880.

tbusselberg@davisclipper.com