December 15, 2006 What about expenses Tad?
According to a recent article in the Deseret News, written by Tad Walch (Utah County bureau chief) Utah’s cities and towns are flush with cash. However, Tad does not once in his article mention the rising expenditures that are often linked to a growing economy and society. For example, with growth come increased infrastructure needs.
True, Utah’s cities and towns are benefiting from a booming statewide economy (like the State govt) however, this strong economy is not occurring with static service needs. According to a recent Utah League of Cities and Towns survey responding cities indicated the following:
- 91% report an increase infrastructure need from FY05 to FY06
- 44% anticipate a significant increase of infrastructure spending needed FY07
- 86% report an increase cost of employee benefits for FY06
- 73% report increase service needs for new development for FY06
These statistics illustrate the challenges that many cities and towns are faced with. Can cities better address these challenges during good economic times? Definitely. But does that mean cities and towns are flush with cash? Definitely not.