Kaysville council adopts modified FY2026 budget with proposed tax and utility increases; adds police sergeant and assistant city attorney

Kaysville City Council adopted a modified tentative budget for fiscal year 2026 that includes a proposed property-tax increase, proposed utility rate increases and the addition of two staff positions: a police sergeant and an assistant city attorney. The council also approved a separate resolution adopting a compensation schedule that would maintain a merit program and cost‑of‑living adjustments for city employees.

The budget package approved by the council assumes a 31.72% increase in the city's property-tax rate (the Kaysville portion of an owner's full tax bill), which city staff said would amount to about $14.61 per month for the average household based on the finance department's assumed home value of $690,000. Staff also proposed utility rate increases to address infrastructure needs: a 15% increase for water and a 10% increase for power in the first year of the plan, intended to fund repairs and capital replacement identified in system modeling.

Why it matters: Council members and staff said the increases respond to rising construction and replacement costs, recurring water-line breaks, growing operating expenses and the need to rebuild reserve levels to cover capital repairs and long-term infrastructure replacement. Staff presented modeling from an external vendor (WaterWorth) showing future operating and capital requirements for the water system and similar projections for the power fund.

Staff presentation and rationale Jason (staff member) led the presentation on the FY2026 modified tentative budget and the related compensation schedule. He summarized major capital priorities in the proposed budget: a gymnasium project (projected at $10.5 million in the staff estimate, with design and bidding planned later this year), continued work on the 200 North and Mutton Hollow projects, power-department infrastructure including the Burton Substation, UDOT-funded West Davis Corridor enhancements (about $630,000), and a cemetery cremation garden concept. On operations, staff pointed to inflation and pass-through costs from sewer and sanitation providers as main drivers of higher operating budgets.

Jason said the water utility has experienced frequent leaks and is 'on track to match last year's 250 water leaks,' citing multiple breaks in some neighborhoods as examples. He said the WaterWorth model suggests the city must raise rates over multiple years to avoid depleting fund balances and to fund capital replacements.

Council debate: staff retention, prioritization, gym Council members spent more than an hour debating trade-offs. Council member Hunt defended the budget and urged the council to act so the city can address aging infrastructure and avoid larger emergency costs later. Hunt said, in part, that 'we started with a $3.8 million deficit' and described reductions the administration proposed to limit the increase, including delayed equipment purchases and position restructures.

Council member Jackson proposed reducing the proposed merit pay increase from 3% to 2% to lessen the immediate burden on residents, but that proposal failed to receive a second.

Council member Blackham said he was 'concerned that too much is being asked of residents in a single year' and cited broader cost pressures facing households. He questioned adding new positions in a year with limited growth and urged more cuts rather than the full package as proposed.

Council member Adams and others stressed the city's need to remain competitive for employees and to avoid losing experienced staff to neighboring jurisdictions. Adams noted department heads had jointly requested the sergeant position and argued that some investments avoid greater future costs.

Mayor Tamara Charan said the council had been "lean" in prior years and emphasized the difference between the city's portion of property tax and a resident's total tax bill. She urged regular truth-in-taxation discussions in future years so any increases are phased and better communicated.

Staffing and compensation The compensation resolution before the council included a 2.5% cost-of-living adjustment and a 3% merit pool for employees, and the addition of two positions: one police sergeant and an assistant city attorney. The council approved the compensation schedule by roll call after debate. Council member Jackson unsuccessfully proposed lowering the merit pool to 2% as a compromise.

Utility rates and modeling Jason and other staff described the revenue/expense models used to project future needs. For water, staff proposed a 15% rate increase for the first year to slow the decline of the system fund balance and enable more capital replacements; staff said recurring pipe failures demonstrated the need for steady investment. For power, staff proposed a 10% increase to cover increased purchasing and capital costs. Staff noted proposed increases are modeled annually and would be revisited each year.

Public comment and related issues During the public-comment period, residents raised concerns about a separate planning process and consultant use for redevelopment planning. Those comments were not part of the budget discussion but were later addressed by staff in council reports about outreach for redevelopment and small-area planning.

Votes at a glance - Resolution adopting the Kaysville City modified tentative budgets for fiscal year 2026 (action 6c): motion adopted after council vote; mayor cast tie-breaking vote in favor. Outcome: approved. - Resolution adopting a schedule of FY2026 council-approved positions and compensation schedules (action 6d): motion adopted. Outcome: approved. - Resolution amending Kaysville City budgets for fiscal year 2025 (action 6b): approved. Outcome: approved. - Resolution adopting changes to the consolidated fee schedule for FY2026 (action 6e): approved. Outcome: approved. - Redevelopment agency and municipal building authority budgets for FY2026: each adopted by their respective boards during the meeting. Outcome: approved.

What the council decided to monitor next Council members asked staff to continue modeling multi-year rate scenarios, to identify further internal savings, and to present clearer multi-year schedules for capital projects such as the gymnasium and water/power infrastructure. Several council members said they would like the city to consider annual truth-in-taxation discussions going forward to avoid large single-year changes.

Ending Council members acknowledged the difficulty of the decisions and thanked staff for their work. The council approved the package of budget and compensation resolutions and scheduled additional follow-up and outreach prior to the final FY2026 budget process.