Controller warns of multi-million-dollar general-fund shortfall; proposes truth-in-taxation notice capped at 30%

At a Sept. 3 Davis County Budget Committee meeting in Farmington, Davis County Controller Scott Park told commissioners the county faces a structural general-fund shortfall and presented options that include expenditure cuts, benefit changes and a potential property-tax increase under the state's truth-in-taxation process.

Park said the county is currently spending more on ongoing expenses than it is receiving in ongoing revenue and that, with recent health-insurance increases and the planned removal of one-time federal funds, the county's fund balance would be exhausted in the 2028 budget cycle unless officials act. "We are spending about 10% more per year in ongoing expenses than we have ongoing revenue," Park told the committee during his presentation.

Park laid out his current projections and options: - 2025 (current budget cycle): roughly $11.7 million more in planned expenditures than ongoing revenues on a budgetary basis; staff expects to tighten budgets and save some of that gap, but still estimate drawing down about $6 million of fund balance if no other changes are made. - 2027 projection with no new services and including contract and insurance increases: a budgetary shortfall of roughly $14.3 million. - To maintain current service levels without additional cuts, Park estimated the county would need approximately $9.5 million in additional recurring revenue (which he equated to about a 22% tax-rate increase; he said that would equal about $75 per year for a median Davis County household valued at $600,000). To retain flexibility to grant some departments' new requests, Park estimated a larger increase would be required (he cited a hypothetical up to ~34% in one scenario).

Park said the county must notify the treasurer by Oct. 1 if it intends to publish a truth-in-taxation notice. He asked for the commission's guidance on an upper limit the county should authorize for printing on the notice so the treasurer can meet printing deadlines. After discussion, Park said he would submit a 30% cap figure for the notice and refine the exact dollar/percentage before formal action: "I will do 30% even I will calculate with the numbers and I'll get to the treasurer," he said.

Park and commissioners discussed alternative approaches to avoid or reduce a large tax increase, including: - Cutting services or positions (Park said the magnitude of the shortfall likely would require reductions beyond non-personnel savings and would probably mean layoffs or program cuts if the commission decided against raising taxes). Park said converting one-time ARPA or other one-time revenue streams to ongoing general-fund spending is not sustainable. - Adjusting employee benefits (Park suggested options such as phasing changes to sick-leave payout, reducing or phasing down post-employment benefits, and lowering the county 401(k) match as potential savings that could be structured over multiple years). - Redirecting or reclassifying some restricted revenue streams (for example, revenue currently used for capital or dedicated programs) was discussed as a temporary measure but Park warned such moves could create future pressure in the funds that would lose revenue.

Commissioners and staff stressed the political difficulty of tax increases and the need for transparency. Multiple commissioners said they would prefer heavy scrutiny of spending and benefits before adopting a large tax increase; others said phasing a moderate increase now could avoid deeper cuts later.

No formal vote on a tax increase was taken at the Sept. 3 meeting. Park noted he must provide the treasurer with a proposed ceiling for the printed notices and said he would submit a 30% figure to give the commission room to maneuver; he also said staff will continue to develop alternative expenditure-reduction scenarios for the commissioners to consider during subsequent budget hearings.

Ending: Park asked for direction on the upper limit to list on the truth-in-taxation notice and said he would submit a 30% cap to the treasurer by the Oct. 1 deadline and then return with refined scenarios for commissioners to consider before any formal tax-rate decision is made.