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Murray council moves to keep property tax rate flat, directs staff to use reserves for FY26 shortfall
Summary
At a June 3 work session and public hearing, Murray City leaders heard presentations on the tentative FY2025–26 budget and a required public notice on executive compensation. Council members signaled they do not want a property tax increase and directed staff to rely on fund balances if needed, with a final public hearing set for June 17.
Murray City leaders on June 3 signaled they will not raise the municipal property tax rate for fiscal 2025–26 and asked staff to use available reserves if shortfalls emerge, city officials said.
Brenda Moore, Murray City finance director, presented the tentative budget and the required public hearing on pay for executive municipal officers. Moore told the council the tentative general fund is balanced “with no use of reserves” as presented but explained options for covering a potential shortfall if the council chose to avoid a property tax increase.
Moore said employees are included in a step-based pay plan and that the proposed budget contains a 2.5% cost-of-living adjustment and step increases where applicable. She told the council the budget currently includes a 5% property-tax increase as drafted but explained the administration can cover a smaller shortfall by using either the city sales-tax reserve (the 0.2-cent public safety/capital sales tax) or general-fund balances without jeopardizing the city’s reserve target.
Council members debated the options. Some members preferred holding rates steady for one year to lessen pressure on households that already face higher utility and user fees; others pressed staff to avoid drawing reserves unless necessary. Moore said she will recalculate growth projections and post updated budget documents after receiving final tax‑increment and growth figures next week.
By the end of the discussion the council directed staff to prepare the budget without a property-tax increase and to rely on reserves if needed, and the council scheduled a final public hearing and adoption vote for June 17. Moore said she will publish updated figures and the revised tentative budget on the city website prior to that hearing.
The council also conducted and approved the statutorily required public hearing on executive compensation increases (ordinance language), a separate item required by state law, and then approved the compensation ordinance by roll call vote (all aye). That compensation action implements the 2.5% COLA and step movements described by Moore and was recorded in the minutes.
