Davis County auditor warns unincorporated fund balance is low; tax increase possible in 2026

Curtis Koch, Davis County auditor, told the Budget Committee on Oct. 1 that the county’s unincorporated area fund balance is low enough that officials should begin preparing the public and stakeholders for a possible tax increase in 2026.

Koch said the unincorporated fund balance is projected at about $440,000–$445,000 and that recent years’ adjustments — including a one-time settlement receipt related to Chevron that temporarily bolstered some funds — mask a longer-term downward trend. "You're now at the point that unincorporated now needs to get a tax increase," he said, urging the commission to start outreach and planning in the next budget cycle.

Koch displayed tax-rate comparisons to illustrate the potential revenue impact. He said the unincorporated rate is about 0.000597 while nearby city rates are substantially higher — for example, Centerville at 0.00121 and Kaysville at 0.001512 — and noted that aligning rates closer to neighboring cities would materially increase revenue. "If you pop back over to here...you want to buy which rate?" he said when showing the effects of different rates on the county’s valuation.

Koch framed the issue as a matter of equity and service cost: unincorporated residents often use city services (parks, emergency response) but have not historically paid the same tax rates that fund those services. He emphasized that law enforcement and fire contracts are major cost drivers in Fund 25 and that the county must be careful to maintain contracts that protect service levels if revenue changes.

Committee members and staff agreed to schedule a work session early next year to provide more detailed numbers and public outreach options. Koch recommended a February work session after numbers firm up in January. He said the county will use that time to develop talking points for meetings with residents and affected areas.