Salt Lake City’s Budget

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How Salt Lake City invests in the community shapes the services you rely on every day. Each year, we develop a budget by carefully balancing essential services and operational needs against available financial resources. This is called “balancing the budget,” and it’s required by state law that our revenues must be enough to cover expenses.

The creation and finalization of this annual budget requires the efforts of both the Mayor and City Council. This process takes several months to complete and must be done by June 30 every year. This page breaks down the basics—the types of funds we use, where City revenue comes from, how the budget is built and spent, and the process.

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Types of City Funds

Revenues

Expenses

Sales and Property Taxes

Budget Process

Types of City Funds

The City’s budget is made up of four main funds, including:

General Fund: Pays for department operations and personnel expenses.

Capital Projects Fund: Pays for infrastructure improvements like streets, sidewalks, and parks. Also covers bond debt service: borrowed money used to pay for those major improvements, repaid over time.

Enterprise Funds: Provide government services but operate more like private businesses, using service fees and charges to cover costs. Airport and Public Utilities are two examples in Salt Lake City. The Airport receives fees and charges from airlines and passengers, and Public Utilities receives fees and charges when people pay for their water, sewer, streetlighting, and stormwater bills. Enterprise funds can only be used for that specific service.

Internal Service Funds: Covers services provided by one City department to another.

Revenues: Where the Money Comes From

The city’s revenue sources are a combination of one-time funding and ongoing funding.

One-time funding sources: Because these revenues are not guaranteed every year, one-time funds are best used for expenses such as equipment purchases, construction projects, art installations, or planning studies.

Grants

Property sales

Fund balance (The City’s rainy day account)

Ongoing funding sources: Sales and property taxes paid by residents, property and business owners, and visitors are our two biggest revenue sources. Property tax is a more stable revenue source, whereas sales tax revenue can fluctuate with the economy.

Sales taxes

Property taxes

Licenses and permits

Charges, fees, and fines

Ongoing funding pays for staffing, maintenance of city roads, buildings, and parks.

Expenses: Where the Money Goes

City leaders allocate funds to be spent on essential services and operational needs after careful deliberation about key concerns, some of which include:

Providing robust public safety for both residents and the commuter population

Maintaining a growing network of parks and open spaces

Ensuring competitive compensation and benefits for city employees

Maintaining the municipal fleet and infrastructure

Allocating necessary resources for a vibrant arts and culture scene

The City’s expenses fall into three broad categories:

Governmental activities, which include:

General governmental (Council, Mayor, Attorney, Finance and Non-departmental)

Public safety (Police, Fire, Justice Courts, and Central Dispatch)

Streets and recreation (Public Services and Public Lands)

Other development (Community & Neighborhoods and Economic Development)

Business-type activities, which include:

Water, sewer, stormwater, street lighting

Airport

Waste & recycling collection

Golf

Redevelopment

Component units, which include*:

The City Library system

The Utah Performing Arts Center Agency (UPACA)

Gallivan Center

*Component units are organizations for which the City is financially responsible. They may have a property tax assessment separate from the City. Their boards provide oversight, set policy, and make budget recommendations. The City Council appoints board members, approves budgets, and sets the annual tax rate.

More About Sales and Property Taxes

Sales Tax: A small percentage is added to most purchases in Salt Lake City. The City receives a portion of this tax, which is one of its largest sources of funding for services like police, fire, streets, and parks.

Property Tax: A tax paid by property owners based on the assessed value of their home, business, and/or land. This is the City’s second-largest funding source. Historically, it was meant to support the City’s public safety services like 911, fire, and police operations./

In the Capital City, over 40% of total acreage is estimated to be exempt from property tax under state law, including nonprofits, educational institutions, and houses of worship, among others.
Per the Utah constitution, primary residences receive a 45% property tax exemption; that is, the taxable value is 55% of the total assessed value, while secondary residences and commercial properties receive no such exemption

Licenses and Permits: Fees paid to the City for approvals, such as operating a business, building construction, or hosting special events. These fees help cover the cost of inspections and regulatory services.

Charges, Fees, and Fines: Payments made directly to the City for specific services or when rules are violated, such as recreation programs, utility services, parking tickets, or code enforcement penalties. These help cover service and enforcement costs.