Roy City Council adopts FY2026 budget, approves tax increase and short-term wage measures

The Roy City Council on Aug. 19 approved Resolution 25-24, adopting the city's fiscal year 2026 budget and authorizing a property tax increase tied to employee pay adjustments and limited one-time spending.

The vote came after a public comment period and a focused public hearing on the truth-in-taxation process. Amber (finance staff) told the council the city had followed truth-in-taxation requirements and that a 28% property tax increase would add $1,423,978 to the general fund, increasing the average Roy household's tax bill by about $108.10 per year ($9.01 per month).

Why it matters: Council members and department leaders said the city faces high turnover in frontline departments and a widening gap between local pay and peer cities, which they said is reducing service capacity. Voters and residents who spoke at the hearing were split: many urged the council to protect public safety staffing; others pressed the council to find additional efficiencies or use one-time reserves rather than recurring tax revenue.

Most important facts first: The council adopted the final FY2026 budget and a motion that included use of a 28% maximum tax increase, a 1.5% cost-of-living adjustment approach and a limited use of one-time funds for urgent needs. The roll-call vote recorded five affirmative votes and no opposition; the council's action implements the budget the city manager submitted and sets the certified tax rate for the fiscal year that begins July 1, 2025.

What the council decided and why: Amber told the meeting a tentative budget had been approved June 17 and that the city had identified a possible 28% ceiling under truth-in-taxation procedures. Council members described choices as limited: raise revenue, cut services, or both. In presentations before the hearing, city officials described persistent flat sales-tax revenue and rising personnel costs as the core drivers of the shortfall.

Fire and public-works staffing were presented as central problems. Fire Chief Williams said high turnover has reduced the department's ability to staff ambulances and training: "When we don't have the staffing... the third ambulance can no longer be there," he told the council, noting reduced coverage would increase response times and require more automatic aid from neighboring jurisdictions. Deputy Chief Mike King said the city spends about $13,000 to outfit and certify each new firefighter.

Council members Diane Wilson and Randy Skadden presented a two-track approach that combined limited use of one-time funds with targeted wage adjustments and a timetable to rework the city's step/merit pay system over time. Wilson said one-time revenues should be used for one-time needs and "rainy day" purposes, but she and Skadden recommended a small portion of reserves where warranted and department-level reassignments to cover urgent needs while a longer-term pay structure is adopted.

Public input: About three dozen residents spoke during the public comment period and the hearing. Speakers repeatedly cited rising property-tax bills and cost-of-living pressures; many also urged the council not to reduce public-safety staffing or recreation services. Several residents recounted personal experiences in which rapid emergency response made a difference, urging the council not to underfund fire and emergency services.

Key numeric clarifications provided at the meeting: Amber said a full 28% increase would add about $1.42 million to the general fund and cost the typical Roy household about $108 per year. The city's annual comprehensive financial report (as cited in the meeting) showed roughly $20.6 million in total fund balance at 7/1/2024 with about $4.7 million of that unassigned and available for general use; other speakers cited a larger overall reserves figure as well. Council and staff discussed a one-time land-sale amount of roughly $560,000 that had been considered for limited use.

Formal action and immediate directions: The council adopted Resolution 25-24 (final FY2026 budget) by roll call, with the motion as presented at the meeting (see Votes at a glance). The motion directed the city manager and department heads to implement short-term measures described in the motion: limited use of one-time funds for urgent, nonrecurring needs; department-level reassignments (including two positions in the fire department) to bolster wages in critical positions; and an accelerated review of the city's pay structures using the benchmark materials staff provided.

What the vote does and does not do: The vote approves the budget and sets the certified tax rate within the 28% ceiling discussed in the hearing. It does not, by itself, lock in permanent pay-plan changes beyond the adjustments explicitly authorized in the motion. Council members said they expect more detailed work in the coming weeks to define precisely which positions and steps will be adjusted and to produce a timetable for the broader pay-system changes.

Next steps and follow-up: Council members and the city manager asked staff to finalize the benchmarking work and to return with implementation details for the departmental wage adjustments and any longer-term step-system revision. The council also discussed holding a short special meeting to canvass election results next week; the city manager said the county requested a canvas by the statutory deadline.

Votes at a glance - Resolution 25-24 (Adopt FY2026 budget; set certified tax rate under truth-in-taxation procedures): Motion approved by roll call (5-0). Motion language included authorization for a tax increase up to a 28% ceiling, a 1.5% COLA approach in the near term, limited use of one-time land-sale monies for urgent needs ($100,000 specified in the motion), and direction to use department-level position changes (fire department positions and similar actions by other departments as approved by the city manager) to help fund targeted wage increases. (See actions[] for full structured record.)

Reporting note: This article is based on the council meeting and the public hearing held Aug. 19, 2025. Quotes and figures are taken from council members and staff during the hearing; where staff or speakers gave a numeric figure without further breakdown, the article reports those figures as presented to the council.