Taxes for residents in the Stansbury Service Agency will go up next year after the service agency board approved a 23-percent tax increase during its Wednesday night meeting.
The board also approved a tentative budget of $1.7 million, which includes additional expenses and revenues connected to the community’s golf course. Board chairman Neil Smart said leasee Jeff Green ended his agreement with the service agency, which took control of the golf course on Dec. 1.
The tax increase will affect the Stansbury Recreation Service Area and Stansbury Greenbelt Service Area, which appear as separate items on residents’ property tax bills. The Stansbury Service Agency combines the property tax from both service areas to be used toward its operating expenses.
The Stansbury Recreation Service Area will raise its budgeted property revenue by 23.4 percent, and the Stansbury Greenbelt Service Area will increase its budgeted property tax revenue by 22.8 percent. For a $250,000 home, the tax increase will be $32.59 and $31.90 per year for the recreation service area and greenbelt service area, respectively.
The increase is intended to generate an additional $223,578 in property tax revenue for the service agency.
During a public hearing on the tax increase, only two residents spoke about the proposed tax increase.
Brenda Alverson said she regularly attends the service agency board meetings and has seen the work the board does to make ends meet and try to please everyone.
“Even though everybody is asking for taxes, I can see of all the groups, that I would say that this one for sure deserves it,” Alverson said.
Greg Copeland asked the board if there was any connection between the tax increase and a proposed interlocal agreement between the service agency and the county, which provides a mechanism for the service agency to annex new, adjacent housing developments at its discretion. The board cited management of the golf course and other projects, such as maintenance on the lake, as the reasons for the increase.
The tentative budget, presented by board member Brenda Spearman, included new line items highlighted in yellow related overwhelmingly to the golf course. All told, expenses connected to the golf course are expected to be $414,500, while golf course revenue will total $350,000.
The service agency’s tentative capital facilities budget also includes $195,000 in improvements to the golf course.
Spearman said the golf course revenue and expenses were based on financial statements Green provided from the past year. She said the $60,000 budget line for water for the course was increased.
Board chairman Neil Smart said he agreed with the higher figure for water on the course.
“We’ll pick up some efficiency as we fix the golf course’s sprinkler system, but right now while it is as it is, it needs to be watered more than it is,” Smart said. “It’s probably a good number to have there.”
Board member Glenn Oscarson said the service agency should consider creating an enterprise fund for the golf course in the future. He said the fund would be subsidized by general fund money but it could be transferred to the golf course enterprise fund as a single line item.
Board member Mike Johnson said he believes the service agency will have to cover the shortfall between operating costs and revenue at the golf course.
“I can tell you that there is no question in my mind that we are going to end up subsidizing that golf course with general tax money,” Johnson said. “It is not going to break even. It won’t happen.”
Spearman mentioned the service agency routinely came more than $200,000 under budget in recent years and asked if the board should look at using some of its reserve fund, which contains more than $900,000, while the true cost of the golf course is determined.
Johnson said former service agency manager Randall Flynn was responsible for the service agency coming so far under budget in the recent past.
“Our former manager did a very good job — and probably too good of a job — of being a miser,” Johnson said. “… How much did we spend on equipment this year because that stuff hadn’t been maintained or taken care of?”
Board member Aaron Spilker also questioned if the service agency should hold off on a tax increase until the the financials of the golf course were better understood.
“I can see that we’re going to be in a deficit for sure,” Spilker said. “Obviously, with the golf course. But is there a benefit to looking at it for a year and seeing what the true costs are, what shakes out in a year?”
Smart said the service agency may have to subsidize the golf course as much as $200,000 every year.
“So I don’t know how we take care of the golf course as we’re bringing it on without it completely affecting everything else if we don’t go forward with the tax increase,” he said.
Spilker also said contrary to discussions online, the golf course is a valuable asset to the community.
“The golf course is one of the major assets and it increases the value of our homes,” he said. “It’s not something that should be just turned into parks, as some people have been saying. So I think it’s something we’ve got to be serious about.”
Spearman said the tentative budget also includes $5,000 for employee incentives, such as a summer party or bonuses, and an additional $23,000 in professional services, for a total of $85,000, which may be used in part toward a security firm to patrol the lake shore and other service agency property.
The tax increase and tentative budget were both passed by a 5-0 vote, on motions from Johnson. Board member Cassandra Arnell was absent.
The board is expected to vote on the approval of the budget at its first meeting in January, following a public hearing required by state law.