Fuel, Health Care Costs Going up for Salt Lake City

(KCPW News) A preview of Salt Lake City’s 2012 budget shows a slight increase in revenue, but the bright spots are being overshadowed by rising health insurance and skyrocketing fuel costs. The city will likely budget for a modest increase in sales tax revenue, and more revenue from commercial permits, but Mayor Ralph Becker says it will take a lot more to bring the city back to pre-recession numbers.

“This year, Salt Lake City is going to have to look at how we can balance our budget and while the economy is showing signs of improvement it’s not yet having a positive effect,” he told KCPW.

Fuel is expected to cost the city almost $1 million over the next year, up from an original estimate of only $300,000.

“Fuel costs is another part of the puzzle that’s very hard to predict right now, but certainly they’ve been going up,” said Becker. “We have been reducing our fuel usage in Salt lake City through some conservation efforts that we’ve put in place and so that is more than being offset by the increase in prices.”

A formal 2012 budget proposal will be put forward soon by Mayor Becker, and be adopted by the city council in June.