Roy City officials address flatlined sales tax despite record high spending

The Roy City Council held a work session on June 3, 2025, focusing on the city's sales and use tax revenue trends and population statistics. The meeting began with a presentation of charts included in the council members' packets, which outlined the city's financial performance and revenue sources.

The primary discussion centered on the observation that Roy City's sales tax revenue has flatlined, despite record-high sales figures. The speaker noted that in the fourth quarter of 2024, Roy City achieved over $149 million in sales, the highest amount ever recorded. This indicates that consumer spending remains strong within the city. However, the speaker emphasized that the distribution of sales tax revenue is influenced by population metrics, which have not favored Roy City.

The council reviewed data from the Utah Tax Commission, which highlighted various revenue streams, including telecommunications taxes, public transit contributions, and municipal energy revenues. While some areas showed growth, the overall sales tax revenue has not increased proportionately due to the population distribution formula used by the state. According to this formula, 50% of sales tax revenue is allocated based on local sales, while the other 50% is determined by population size.

The speaker pointed out that Utah County has seen significant population growth, with approximately 26,000 new residents, while Weber County, and specifically Roy City, experienced a decline in population by about 200 residents. This demographic shift has resulted in Roy City receiving a smaller share of the sales tax revenue, despite high sales figures.

The council discussed the implications of these findings, noting that the state is set to renegotiate how population numbers are calculated, which could potentially benefit Roy City in future revenue distributions. The meeting concluded with a consensus on the need for ongoing monitoring of sales tax trends and population statistics to better understand their impact on the city's financial health.