Holladay@20 Preparing for Tomorrow

 

​In 2019, the City of Holladay celebrated its 20th anniversary of the 1999 official municipal incorporation. To prepare for the next two decades, the HOLLADAY@20 Preparing for Tomorrow process was initiated to determine a financial sustainability plan for the future.

 

The Plan not only considered the unmet needs of aging infrastructure, projected contract costs for public safety and public works services, and other community priorities but also aimed to address key challenges facing the City. The process was primarily led by a Citizen Advisory Group that evaluated scenario trade-offs and provided a recommendation to the City Council.

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KEY CHALLENGES FACING HOLLADAY

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Costs and maintenance over time

While the City has functioned well for the last 20 years, flat revenues and increasing costs over time mean Holladay now lacks budget to replace roads, storm drains, and other aging infrastructure elements that can no longer be repaired. The City has identified at least $75 million worth of currently unfunded infrastructure needs that will remain unaddressed without additional revenue.

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Public safety and budget constraints

Currently 48% of Holladay’s total revenue is dedicated to public safety funding for police (31%) and fire (17%) and the cost of these contracted services is increasing. At the same time, the City has at least $75 million worth of currently unmet infrastructure needs. As Holladay assesses these costs, it’s clear that revenues aren’t enough to pay for needed improvements while also ensuring the City continues to serve residents well and meet ongoing obligations.

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Community needs

Current expenditures in the City budget do not reflect the total community need, including repair and reconstruction of public infrastructure. Without additional funding, Holladay’s infrastructure needs will continue to grow in number, urgency and cost of repair.

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City’s share of property tax

Holladay currently receives about 10% of the total annual property taxes for a parcel in the City. To address current needs, City property tax revenue may need to increase significantly. When the City first incorporated in 1999, its share of property tax was approximately 18%, but this has diminished over time as other taxing entities have raised their tax rates and the City of Holladay has had no property tax increase for 20 years.

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No property tax raises in 20 years

Since incorporation in 1999, Holladay has prided itself on staying within budget parameters set 20 years ago. The City has not raised property tax rates even once in the past two decades.

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Comparatively lower tax rates

Holladay has significantly lower property tax and sales rates compared to neighboring cities. The average resident in Holladay with a median home value of $500,000 pays about $340 in annual property taxes to the City. Residents in several neighboring cities with the same home value pay more than twice this amount in annual property taxes to their city government.

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Young city with old bones, rich history

Holladay is a young, vibrant city with old, fragile bones. Although Holladay incorporated as a city only 20 years ago, it is one of the oldest pioneer settlements in the Salt Lake Valley. This rich history comes with infrastructure that was built 30, 50, and even 100 years ago, much of which now has maintenance needs beyond simple repair.

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