Roy City Council debates 28% property tax increase to address salary disparities

Roy City Council members faced tough discussions during their June 17 meeting, focusing on the city's financial health and the pressing need for employee compensation adjustments. The council is grappling with stagnant sales tax revenues, which have not seen significant growth since 2012, raising concerns about the city's ability to maintain essential services and retain staff.

Council members highlighted that while gross sales figures are climbing, the actual sales tax revenue remains flat, leading to a cautious outlook for future budgets. "We just have to accept the fact as we're maintaining our own," one member noted, emphasizing the need for alternative revenue generation strategies.

A significant point of contention was the proposed property tax increase, with a ceiling set at 28%. This increase aims to address a 14% pay disparity compared to similar cities, particularly for critical departments like fire and public works, which are experiencing high turnover rates. "We need to fix the bleeding," one council member stated, urging immediate action to prevent further loss of personnel.

The council also discussed the potential use of reserve funds to mitigate the impact of the tax increase on residents. However, concerns were raised about the long-term implications of relying on one-time funds, with some members advocating for a more sustainable solution.

In a related discussion, the council considered a proposed ordinance for compensation increases for city officials, which would require public hearings due to new legislative mandates. The council expressed a desire to ensure fair compensation while balancing the budgetary constraints.

As the council prepares for a truth-in-taxation meeting in August, the urgency to address employee compensation and the city's financial stability remains at the forefront of their agenda. The decisions made in the coming months will significantly impact both city operations and the well-being of its employees.