Springville council adopts tentative fiscal 2025–26 budget, sets June 17 public hearing

Springville — The Springville City Council voted to adopt a tentative city budget for fiscal year 2025–26 and scheduled a public hearing for final adoption on June 17, 2025, after a staff presentation that emphasized conservative revenue projections amid economic uncertainty.

City staff presented that the general fund for operations including police, fire, parks and administration is about $35,000,000 (including transfers) and the total city budget is about $118,000,000. The tentative budget includes a proposed 3% property tax increase that staff said would generate roughly $121,000 for the general fund and equates to about a $5 annual increase for the average residential property owner. The council set a June 17 public hearing for final budget adoption.

Why this matters: the tentative budget guides city spending and signals policy choices on rates, staffing and capital projects ahead of the July 1 start of the fiscal year. Staff framed the proposal as conservative — citing potential softening of sales tax receipts and ongoing inflation — while preserving service levels.

City finance staff said the total budget is down about 2.2% from the current year primarily because large capital expenditures in the current year will be smaller in 2025–26. The general fund change from last year was described as largely an accounting effect after moving the streets department into a standalone fund. Staff reported about 337 full‑time equivalent positions in the proposed budget and a net addition of 0.5 FTE.

Key revenue and rate items noted in the presentation: - Property tax: 3% inflation-driven increase; roughly $4.5 million projected in property tax revenue. - Sales tax: projected about $10.4 million, essentially flat from the current year; staff said they used conservative estimates because of recent softening. - Energy use tax: projected near $3.0 million. - Intergovernmental revenue: shown just under $1.0 million, down substantially because some state road (c-road) receipts were moved to the streets fund for accounting reasons. - Enterprise transfers: the city continues a 6.5% operating transfer from utility (enterprise) funds to the general fund; staff characterized the transfer as legal, longstanding and intended to diversify revenue beyond property tax. - Utilities: proposed rate increases for utility customers vary by fund; staff estimated about a $5 per month increase for the average residential user (across water, sewer, power, stormwater, solid waste). Power residential rates were noted at approximately 2.5% and other public works divisions around 3%.

Personnel and benefits: the tentative budget includes a 3% cost- of- living adjustment effective July and an additional 3.2% merit pool phased in January 2026 (effectively about 1.6% averaged across the year). Benefits costs were projected to rise about 6.5%.

Capital highlights: the tentative budget lists streets projects totaling roughly $4.1 million in the new streets fund, general fund capital of about $1.1 million, $2.4 million for vehicle/equipment replacement and $2.3 million for facilities renewal. Notable utility capital items included a $3.0 million South Main water pipeline replacement and other water, sewer and stormwater projects described in the staff presentation.

Vote and next steps: The council approved Resolution 2025-16 adopting the tentative budget and setting the public hearing for June 17, 2025.

Quotes: “This budget will address considerations and services for the fiscal 2026 budget year,” said Bruce, the staff presenter. On the property tax approach, a council member asked why the city raises property tax annually; Bruce explained that state law causes city property tax revenues to remain flat unless the governing body changes the rate and that the 3% increase is intended to preserve purchasing power amid inflation.

The public may review the tentative budget online and provide comment at the June 17 public hearing before the council considers final adoption.