Price City leaders warn of tight budget, weigh public-safety tax options

City officials said Price is facing a tighter-than-expected fiscal year and must closely monitor spending as leaders weigh options to shore up public-safety funding.

At a council meeting, a speaker identified as the mayor said Finance staff produced a revised budget showing limited revenue growth and signaled a likely draw on reserves. “We are already taking the money out of the committed fund balance,” the mayor said. “I think I budgeted about $900,000 to come out of reserve. So that's pretty scary number.”

The discussion centered on two constraints: limited sales-tax growth and large, rising expenditures for public-safety personnel, equipment and insurance. Lisa, identified in the meeting as a finance staff member who prepared revenue estimates, told the council that sales-tax receipts were only slightly ahead of last year and many revenue streams (franchise taxes, municipal energy tax, phone tax) are flat or declining. “Not much more revenue coming in,” Lisa said. Separately, officials noted a 13.2% increase in health-insurance costs that will push personnel costs higher.

Why it matters: council members and staff framed the shortfall as a direct threat to vehicle and equipment purchases, service levels and wages. The mayor and chiefs said postponing planned vehicle purchases is one option, but they warned that delaying replacements can raise maintenance costs and risk service reductions.

Options discussed included pursuing a public-safety–earmarked local tax (the meeting repeatedly referenced local sales-option or “ZAP” tax structures), pursuing a property-tax increase under the Truth in Taxation process, or seeking state legislation to change how emergency services are funded. The group discussed a draft state measure (referred to in the meeting as Senate Bill 67) that would authorize an emergency-services sales and use tax in some jurisdictions; speakers said its current language would limit which cities and counties could use it.

“Somebody has to do that,” the mayor said of pursuing a targeted tax to support public safety, adding that an earmarked public-safety measure tends to draw more public support than a general tax increase. The mayor cited Herriman City’s recent experience, saying the council there moved forward with a truth-in-taxation increase specifically described for public safety and that the community accepted it.

Council members and staff asked finance staff to prepare analyses showing how specific rate changes (for example, a raise in the certified property-tax rate or a quarter-percent sales-tax adjustment) would translate to dollars for the city and how long any change would take to implement. The mayor asked for follow-up from the city’s finance analyst, identified in the meeting as Eric, on options if the pending state legislation changes the usual Truth in Taxation process.

Officials also flagged state-level changes that complicate local planning: the meeting referenced legislative proposals that would put some new taxes on the ballot or reassign revenues (including transient-room taxes) to county-level or specific capital purposes. Speakers said those changes can reduce local flexibility and shift the burden to homeowners.

Council members emphasized that any decision on taxes would be political and require public outreach. The mayor urged a coordinated, “team” approach to explaining to residents why funding is needed for wages, vehicles and fire apparatus. “If we vote to approve it, it's approved. And we have to bear the political fallout,” one city speaker said, adding the city should be explicit about earmarking funds for public safety.

Ending: Staff were directed to return with scenario analyses and timing details for possible tax options and the mayor said the council would watch midyear revenue and the pending state legislation before deciding whether to pursue a local ballot measure or a Truth in Taxation hearing.