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Santaquin receives updated financial sustainability model showing revenues lagging rising costs
Summary
City staff presented a refreshed financial sustainability model from Zions Public Finance on July 15 showing revenues have grown but expenditures have risen faster; staff urged the council to consider revenue options and noted a planned public meeting on August 7 to discuss potential property tax measures.
Santaquin — City staff presented a financial sustainability update from Zions Public Finance at the July 15 work session, showing that the city’s revenues have increased but that expenditures have grown at a faster rate, prompting staff to urge council consideration of revenue options to maintain services.
A staff member leading the presentation told the council the Zions report used three scenarios (no growth, anticipated growth and residential-only growth) and drew from three full fiscal years of data. The staff member said the city’s revenues grew roughly 7% over the period reviewed while expenditures increased about 19%, a divergence that prompted concern about long-term sustainability.
The presentation noted that property tax revenue comprises about 16% of the city’s general fund and that recent growth in new homes does not, by itself, close the gap between rising costs and existing revenue. The staff member asked councilmembers to attend a public meeting on August 7 about a potential property tax rate action; the presentation was described as informational and no formal action was taken that night.
Staff pointed to several contributing factors identified in the Zions model: inflationary cost pressures on wages and operations, increased infrastructure maintenance (roads, pipelines and buildings), and variability in building‑permit revenue (staff cited permit estimates of about 225 permitted units versus approximately 268 actual permits in a recent year). The staff member emphasized the city cannot rely solely on growth to fund services and recommended exploring stable revenue measures in addition to continued efforts to attract sales-tax-producing commercial development.
Mayor and council discussion focused on policy choices and tradeoffs. The mayor noted past decisions to preserve services and that the council has made incremental revenue and cost choices in prior years. Council members and staff discussed the timing of any proposed property-tax action and the limits of property-tax growth under state rules; staff said the Zions model is a planning tool and not an adopted budget.
Ending: The financial-sustainability report was provided for council review; staff said it will be circulated to councilmembers and the public and that a public hearing/meeting on revenue options is scheduled for August 7. No budget or tax action was taken at the July 15 work session.
