Nibley council adopts budget on first reading; schedules special meeting to accept certified tax rate

The Nibley City Council approved the proposed city budget on first reading June 12, adopting an amended version that narrows planned expenditures and removes two software purchases for further review. Council members also agreed to schedule a special meeting before June 21 so the city can decide whether to accept the county assessor’s certified tax rate or pursue a truth-in-taxation process.

The budget workshop, led by Finance Director Justin (presentation name in transcript), laid out the city’s revenue and spending plans, including a new $3.5 million loan authorized at roughly 2.5 percent interest to fund a new water source and equipment. Justin told the council the loan makes the water fund—and therefore the overall budget—appear larger, but that without the loan the general budget would actually be down about 3 percent from the prior year.

The budget also includes a proposed 3 percent cost-of-living adjustment (COLA) for employees plus up to 3 percent in merit-based increases, the combination Justin said would result in roughly a 7 percent increase to the overall salary line next fiscal year. Justin said staff conducted a compensation study and is targeting roughly the middle of market ranges for long-term pay equity.

Council and staff also reviewed capital projects and one-time purchases: phase 5 of the 12 West road project and the City Center Park remain large-ticket items; the draft included $23,000 for an asset-management software subscription and roughly $12,000 in upfront costs for code-enforcement software. Councilmembers moved to remove the $23,000 asset-management subscription and the code-enforcement purchase from the proposed budget pending more detailed presentations; the amendment passed. Justin said staff will present more information on both products before the council decides to purchase them.

Mayor Larry Jacobson said the council would need to decide whether to accept the county assessor’s certified tax rate—which would preserve the city’s current tax revenue in dollars even if property values change—or to go through the truth-in-taxation process to increase property-tax revenue. Because the certified-rate filing deadline precedes the city’s normal second-reading schedule, the council chose to call a special meeting next week to adopt a resolution accepting the certified rate if the council wants that option. If the council instead chooses to pursue a tax increase it will follow the truth-in-taxation process and public-hearing schedule. Justin said staff will post and notice the special meeting as required.

Why it matters: the budget sets the city’s spending for the coming year, funds staff compensation and maintenance, and governs how the city spends grant awards and loans. Council members pointed to employee retention, water system upgrades and capital projects (notably 12 West and City Center Park) as reasons to move carefully on spending and to delay some purchases pending more information.

What’s next: the council will hold a special meeting the week of June 16–21 (to be noticed) to consider adopting the certified tax rate. The budget will return for second reading, public hearing and final adoption at a later meeting after the council has decided the tax-rate path.

Quotes

"We need to tighten that level a little bit…bring it back to some level of more accuracy," Justin said, describing staff’s approach to revenue and expense estimates.

"If we're going to stay with the certified tax rate, I will call a special [meeting] for the council to adopt a resolution," Mayor Larry Jacobson said.

Ending

The council’s amended first-reading approval kept major capital priorities but deferred two software purchases pending fuller staff presentations. The city will meet next week to decide whether to accept the certified tax rate or begin truth-in-taxation procedures; that decision will determine the formal public-notice and hearing schedule required under state law.