Ivins City council approves 33–34% property tax increase, adopts 2025–26 budget

Ivins City Council on the night after a public hearing voted to adopt a property tax levy that will raise about $860,000 in recurring revenue and then approved the city's final fiscal 2025'26 budget.

Finance director Cade Bisser told the council and the public that the proposed increase "would increase the city's annual recurring revenue of $860,000" and that staff recommends the change to restore purchasing power lost to inflation, fund new employees, boost the general fund reserve and save for future capital projects. After roughly two hours of public comment and staff responses the council approved resolution 2025-11R, adopting the proposed tax rate; the roll-call vote was 4 in favor, 1 opposed. The council then adopted the final budget (resolution 2025-12R).

Why this matters

Council members and department heads said the city faces a combination of higher operating costs and reduced one-time revenues. Staff presented projections showing the capital projects fund declining from about $4.0 million in 2025 to under $500,000 by 2029 under current assumptions, and that changes in state law will reduce interest-earnings revenue by about $450,000 in fiscal 2026. Public works, parks and police leaders told the council they need additional staff and equipment to maintain the level of service set out in the city's general plan.

What happened at the hearing

The council opened a statutorily required truth-in-taxation public hearing after Mayor Hart read the legal notice. Cade Bisser described how property tax revenue rises primarily from growth and not inflation, reviewed reserve and capital balances and outlined that the $860,000 maximum increase would fund several personnel additions and shore up reserves. Department directors said specific needs include a stormwater coordinator in Public Works, two parks maintenance positions, one animal-control position and additional police vehicles and pay adjustments to remain competitive.

Public comment was split. Dozens of residents and business owners spoke. Examples: - Fred Birnbaum (Ivins resident) opposed the increase, arguing that overall city revenue has risen with growth and that the city's reserve target could be lower than staff proposed. - Nicole Graff, co-owner of Hidden Springs RV Resort, said the levy would "have a significant and immediate impact on my small business" and urged the council to reconsider the timing and the proposed location of a city yard near tourism assets. - Denise Purdue (Ivins resident) and other speakers said they supported the increase to preserve parks, public safety and the city's level of service.

Staff answers and fiscal context

Cade Bisser and other staff explained that: - The $860,000 figure is the maximum additional recurring city revenue the council may adopt under the truth-in-taxation process; the proposed percentage increase was described in materials and at public remarks as roughly 33'34 percent of the city portion of property tax revenue. - The city expects a roughly $450,000 drop in interest-earnings revenue in FY26 because of recent state legislative changes affecting developer deposits and interest treatment. - Revenue projections from nearby resort development (referred to in testimony as Black Desert Resort) were lower and later than previously forecast; staff said material hotel/transient-room-tax revenue is not expected to be consistent until closer to 2029'2030. - Impact fees that developers pay for specific capital projects cannot be used for ongoing operating expenses; those fees will support future capital but do not replace general-fund revenue for operations.

Council action and votes

The council moved and seconded approval of Resolution 2025-11R (adopting the 2025 tax rate and property tax revenue amount for the city) with the full proposed increase of $860,000. The recorded roll-call votes on the resolution were: Council Member Anderson, Aye; Council Member Gillespie, Aye; Council Member Barton, Aye; Council Member Smith, Nay; Council Member Scott, Aye. The motion passed 4'1. The council then approved Resolution 2025-12R to adopt the final 2025'26 budgets; that motion passed by recorded vote with all present council members voting Aye.

What the money is intended to fund

Staff and department heads described how the increase is intended to: - Restore purchasing power lost to inflation and address higher operating costs; - Fund personnel additions described in the budget: two parks maintenance staff, one animal-control position, one stormwater coordinator (Public Works) and targeted increases in police compensation and vehicles; staff said the specific pay adjustments are intended to keep starting wages competitive with neighboring jurisdictions; - Stabilize the general fund emergency reserve and maintain a capital projects fund to pay for planned infrastructure such as roundabouts, a public works yard and park improvements. Staff presented a Government Finance Officers Association (GFOA) risk-based reserve target range of about 26% to 35% and recommended aiming toward the top of that range.

Next steps and council remarks

Council members debated alternatives, including taking a smaller increase tied only to operating needs or deferring part of the reserve buildup. Council Member Smith said she would support a smaller increase; a majority of the council voted for the full $860,000 proposal. Council members and staff said future councils could lower the rate later if revenues from new development come in faster than projected.

The council adopted the budget for the fiscal year ending June 30, 2026, immediately following the tax-rate vote and adjourned the meeting.

Ending

The tax increase and budget take effect for the adopted fiscal year. City staff said they will provide additional detail on individual homeowner impacts and answer outstanding resident questions about assessed value, the county appraisal process and exemptions (for example, senior or hardship assistance handled by Washington County).