Council briefed on sales- and property-tax mechanics; budget public hearing continued to June 10

Sandy City’s administrative services staff walked the City Council through the mechanics of sales and property tax revenue and offered short-term projections on June 3, and the council voted to continue the public hearing on the fiscal year 2025–26 budget to June 10 to allow time for possible amendments.

Brian Kelly, the city's administrative services director, explained sales tax distribution formulas and the difference between local-option sales tax dedicated to transportation and the portion of the general local sales tax that flows to cities. He said the city receives its portion partly from a population factor (Sandy's share of state population) and partly based on point of sale, and that redistributions and management fees reduce the net amount the city receives. Kelly summarized recent year-over-year sales-tax growth (including spikes during post‑COVID stimulus years) and said staff projects modest growth of roughly 1.5%–2% in the next two years barring major national changes; he noted larger local developments, including the hockey training facility and stadium-block purchases, may take time to affect receipts.

On property taxes, Kelly used simplified examples to show that assessed value changes alone do not increase city property-tax revenue: revenue rises only through new growth (new development or annexation), redevelopment agency (RDA) expirations that return increased value to taxing agencies, or an explicit legislative decision to raise rates through the truth-in-taxation process. He showed that the 2020 uptick in certified property-tax revenue (about 6.49%) was tied to RDA expirations and that the Civic Center South RDA’s scheduled expiration around 2027 is estimated to yield roughly $300,000 in additional certified revenue when it occurs.

After the presentation the council opened a public hearing on the proposed FY 2025–26 budget. Council Member Sharkey moved and the council voted 7–0 to continue the public hearing to the June 10 meeting to allow members time to submit and consider budget amendments; Council Member Robinson seconded the motion. Director Kelly also highlighted that the tentative budget does not include a property-tax increase unless the council takes a separate action before the statutory deadline to declare intent to raise the rate.

Kelly and council members fielded technical questions about population adjustments used in sales-tax calculations, how online point-of-sale (for example, e-commerce) is attributed to jurisdictions, and the county's certified rate adjustments. The session concluded without budget adoption; the council directed staff to publish amendments and return with a schedule for adoption.