"For the past seven years, we have been running into our reserves to make our balance sheet even at the end of the year….We’re at a point where we probably need to raise the revenues,” said newly-elected Cottonwood Heights Mayor Gay Lynn Bennion during the oath of office ceremony Jan. 5. 

On Jan. 6, the Cottonwood Heights City Council discussed implementing a Telecom Franchise Tax as one option to bring more revenue to the city’s budget. If implemented, a 3.5% municipal license tax would be imposed on telecommunications services. This means that Cottonwood Heights residents would pay roughly $8.40 per year on a single line of mobile phone and data service. 

“Right now, we are pretty skinny as a city, and we need to look at how to improve cost savings internally and keep up with the burden we have to be able to provide services,” Councilmember Shawn Newell said. 

Finance Director Scott Jurges estimates that would bring in between roughly $120,000 and $150,000 per year. He also mentioned that Cottonwood Heights is the only city within Salt Lake County not currently charging the franchise tax on telecommunications. 

“We are eating into our reserves to the point where we will not be able to match grants and get funds…,” Bennion said. “We don’t want to get so close in the reserve that we can’t do important things for our city.” (She provided examples of some overdue investments like security for the city’s computer systems.) 

Councilmember Suzanne Hyland agreed with needing to make the city’s budget whole. “I always say: in government, people want Cadillac services at Chevrolet prices.” 

If the council decides to move forward with a Telecom Tax, the earliest it can be implemented is July 1 as an ordinance would need to be drafted by March and submitted to the Utah Taxing Commission for an approval process. 

“...this telecom tax is being discussed in the broader discussion of…looking at additional revenue streams,” said Councilmember Matthew Holton. (Adobe Stock)

“I’m not a huge fan of fees because I don’t think it’s transparent,” Councilmember Matthew Holton said. “If we vote on this and it’s passed, what percentage of the city would even be remotely aware that there is an additional amount of money that they’re going to need to pay?” 

“For me, I would not put myself personally in a position where my personal budget was in jeopardy. I would do everything it takes to make sure that not only my current future was taken care of but the future of my children. We are charged as government officials to do that for our residents – for them and their children,” Newell said. “This is a critical thing we have to consider not just now, but as we move into our retreat.”

The retreat Newell is referring to is an annual discussion where the council and staff align on the city’s vision for the upcoming year. A full day is scheduled and set aside to discuss goals, expectations, projects and budget requests for Cottonwood Heights. Since the annual retreat is an open meeting, residents are encouraged and welcomed to attend for as long as they’d like to stay. (The City Journal will be covering the retreat.) 

“Residents need to get engaged and involved,” Holton said. “We can’t go forever without raising taxes….The question is how? Residents need to step up and tell us what they want to happen in our city.” 

Residents can voice their suggestions at council meetings on Tuesday evenings during Public Comment sessions at 7 p.m. at Cottonwood Heights City Hall (2277 Bengal Blvd.), by contacting their elected officials (contact information available on the “Elected Officials" page of the city’s website, or by submitting through the “Contact Us” form on the city’s website at www.cottonwoodheights.utah.gov.