News Item: Utah cities criticized for padding their budgets with user fees instead of raising taxes
To cover their expenses, cities have found it easier to raise various fees residents pay than to hike property taxes, Moss and others said. When cities propose raising taxes, state law requires them to advertise the plan and host a public hearing that mayors and city council members dread. Hiking fees draws far less attention.
Critics of cities' increasing reliance on fee hikes, like Moss and Sen. Howard Stephenson, R-Draper, say the practice hasn't been transparent because most residents don't read or understand the thousands of lines in a city budget.
They sought to end the trend altogether with HB164 but scaled the bill back after hearing from cities that said they have their reasons for using enterprise funds — made up of user fees for such things as electricity, water and sewer — to patch holes in their general funds.
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