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Royce City manager presents FY2026 budget with proposed property‑tax increase and employee COLA
Summary
City staff presented the proposed FY2026 budget that holds overall spending near current year levels but includes a $750,000 property‑tax increase (about 15% of current property‑tax revenue), a 2.5% cost‑of‑living adjustment for employees and utility fee changes tied to outside providers.
City staff presented the proposed fiscal year 2026 budget to the Royce City Council on May 6, showing a largely flat overall spending level while recommending targeted revenue increases and employee cost‑of‑living adjustments to address shortfalls.
Amber (staff) summarized enterprise, internal service, capital and general fund plans and emailed the full document to council members earlier in the day. The budget document lists a FY2026 general‑fund total of $28,522,710, “essentially the same” as the current modified year, but staff identified specific shortfalls in ambulance revenue and interest income. To address those shortfalls, the proposed budget includes an increase in property‑tax collections of $750,000 (presented in the meeting as about a 15% increase in property‑tax revenue), which staff said would be the principal source of the revenue gap.
Amber proposed a 2.5% cost‑of‑living adjustment (COLA) and merit increases for employees, noting the city has seen significant turnover — about 16% of full‑time staff in the past year and roughly 80 departures over three years. Staff said wages are the largest driver of turnover and recommended a follow‑up work session to consider salary surveys and additional retention measures.
The presentation included utility‑fund impacts from outside providers. Weber Basin Water has increased its charges, producing an estimated $1.26 per month increase for a four‑person household from raw water costs; North Davis Sewer proposed a $2.50 base increase and the city recommended a $2.50 municipal increase per connection to cover rising maintenance costs. The combined proposed increase for water and sewer was presented as roughly $6.26 per month on an average household.
Amber also described projects funded by impact fees and capital reserves: $565,000 for storm sewer projects, $175,000 for park development (playground equipment at Fox Lehi Park), and ongoing cemetery perpetual‑fund interest used for maintenance and potential future cemetery expansion. The capital projects fund receives unspent general fund dollars and interest; staff recommended building reserves for long‑term maintenance of the aquatic complex and parks and for replacement of fire apparatus.
Staff said the tentative budget must be adopted by June 17 to set the maximum property‑tax levy and the final budget and tax rate adopted by Aug. 19. Council members asked clarifying questions about cost drivers and the schedule for work sessions; the council scheduled a tentative budget work session for May 20.
No formal action to adopt a tentative budget or set tax rates occurred at the May 6 meeting; the presentation served as the administration’s proposed budget and a starting point for council review and further public hearings.
