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Springville council adopts 3.5% property-tax increase after Truth in Taxation hearing

Springville City Council ยท August 21, 2024
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Summary

After a public Truth in Taxation hearing, the Springville City Council approved a certified tax rate of 0.001128 (0.000786 general operations; 0.000342 debt service), a 3.5% increase the city estimates will generate about $118,000 for FY2025.

Springville's City Council voted to adopt a higher certified property-tax rate on [date not specified], approving Resolution No. 2024-25 to set the city's combined certified rate at 0.001128.

City Administrator and Finance Director Bruce Bridal told the council and the public that state law requires a Truth in Taxation hearing whenever the proposed certified tax rate the city requests from the county exceeds the county-certified rate. "The Truth in Taxation hearing that we're here for tonight is necessitated as a result of state law," Bridal said during his presentation, which explained the mechanics of rates, tax-share percentages and how inflation has eroded the buying power of property-tax dollars.

Why it matters: Bridal said property tax accounts for about 11% of the general fund and that Springville receives roughly 12% of an average property tax bill (with about 76% going to the local school district). He presented the council's proposal โ€” a 3.5% increase to the city's general-operations levy โ€” and said it would generate about $118,000 for the fiscal year starting July 1.

Bridal offered an example to illustrate the effect on homeowners: using the county's 2024 average home value of $462,000 (taxable value after the 45% residential discount: $254,000), he calculated the city portion on the average home would rise by about $9.65 per year under the proposed rate. For similarly valued businesses (which are not discounted), Bridal showed an annual increase of about $17.55.

Public comment reflected a range of views. Sandra Watchers, a long-time Springville resident, urged the council to exercise fiscal restraint and asked whether elected officials had thoroughly reviewed the proposed ~130-page budget. "We, the people, are sovereign," she said, urging leaders to represent residents on fixed incomes who she said would be most affected by tax increases. Ellen Brown and other residents echoed concerns about affordability; other speakers, including Lisa Willie, said the projected annual increase was manageable for them and asked about hardship assistance programs. Staff and council clarified that utility assistance is administered by the county and that there is no internal city hardship fund for property tax relief currently.

Council action: After the public hearing, an unidentified councilmember moved to adopt Resolution No. 2024-25 setting the certified tax rate at 0.001128 (0.000786 general operations; 0.000342 interest/sinking/bond purposes). The motion was seconded and approved in a roll-call vote with recorded aye votes from Logan, Craig, Mike, Mindy and Jake.

What happens next: The adopted rate will be submitted to the county for certification and applied to taxable values when tax bills are calculated. Bridal noted that some portions of property-tax bills tied to past bond debt will phase out when bonds mature (he cited the library bond maturing in 2031), which will reduce that portion of future tax bills when that debt is retired.