Highland Council adopts fiscal 2025–26 budget, fee changes and certified tax rate

Highland — The Highland City Council on Tuesday approved a package of financial measures that included midyear budget adjustments for fiscal 2024–25, adoption of the fiscal year 2025–26 budget, an updated consolidated fee schedule and the city's certified property tax rate.

The council approved the ordinance to amend the current-year budget and then adopted the final 2025–26 budget after staff presented fund-by-fund updates, reserve estimates and program changes. The council also adopted a consolidated fee schedule and approved a certified tax rate of 0.00074 that splits to 0.000643 for city operations and 0.000097 for the library.

Why this matters: The actions finalize the city's spending plan for the year beginning July 1 and set fees and the local share of property taxes. The package includes changes across 10 funds, adjustments to pay and benefits for certain officers, and plans for capital work in parks, roads and utilities.

David Mortensen, Highland's finance director, told the council the midyear adjustments reconcile audit and actual activity in several funds, including an unexpected cemetery fund surplus that increases general fund revenue and transfers being carried forward for projects not completed before June 30. "Per the Utah Municipal Code, cities can amend their budget throughout the budget year," Mortensen said in his presentation.

Major items approved - Midyear adjustments for fiscal 2024'25: The council approved staff's list of changes to reflect actual revenues and expenditures in multiple funds, including an increase in the cemetery fund surplus and carryovers for trail and park projects. - Fiscal year 2025'26 budget: The council adopted the comprehensive budget after public notice and hearing. Staff provided an all-funds summary that shows planned uses of fund balance in enterprise funds and a general fund maintaining the state-required reserve range. - Consolidated fee schedule: The council approved reformatting and updates to departmental fees, including building and public works fees and a change clarifying sign and event permit handling. Kenneth Linford, the treasurer, said the format change aimed to reduce confusion and capture department-level charges. - Certified tax rate: The council adopted the certified tax rate provided by Utah County. Mortensen noted assessed values increased in the city, which reduced the rate but produced modest revenue growth from new property (about $53,611 for general operations and about $7,900 for library operations). - Officers' compensation: The council enacted compensation changes for specific city officers (a mix of a 3% market increase and one-time adjustments tied to retirement contribution changes). City staff said the 0.81% item is a one-time payment to offset recently required employee retirement contributions for certain tiers.

Council members and staff emphasized constraints and trade-offs in the budget. Mortensen walked through restricted revenues (impact fees and park bond debt service) and explained why some transfers originally proposed were reduced. Council members noted long-term trends in public safety, sanitation and staffing costs and asked staff to continue identifying grants and efficiencies.

Quotes and context - "Sometimes when we talk about some of these funds, we think, 'oh, the city has a million dollars they can go move.' It's because things are restricted," Mortensen said, explaining impact-fee restrictions for parks. - Council Member Scott (first name not provided in the transcript) urged the city to monitor a multi-year upward trend in general fund expenditures and to plan for when development-driven revenue slows.

Ending note: The package passed unanimously on the council votes recorded in the meeting. Council and staff said they will continue quarterly monitoring of budgets and will update the public-facing "citizen's budget" materials after the audit.