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Cottonwood Heights proposes $3.5 million property tax increase; council sets public hearing schedule
Summary
City staff presented a tentative 2026–27 budget that includes a proposed $3,500,000 property tax increase (about 42.87%) — an estimated rise that would increase the average $819,000 home by $20.92 per month ($251.03 annually). Council approved procedural resolutions acknowledging the tentative budget and set hearings for June 2, June 16 (anticipated adoption) and a Truth in Taxation hearing on Aug. 11.
Cottonwood Heights staff presented a tentative fiscal 2026–27 budget at the May 5 city council meeting that includes a proposed property-tax increase intended to generate $3,500,000 in additional ad valorem revenue — roughly a 42.87% increase from current revenue levels — and detailed how those funds would affect department budgets and service levels.
Scott Jurgis, the city’s budget officer, told the council the proposal would change the city's property-tax rate from 0.0013 to 0.001857 and that the additional $3.5 million would raise projected general-fund revenue from $8,164,663 to $11,664,663. He provided illustrative impacts: an average assessed home value of $819,000 would see roughly $20.92 per month or $251.03 annually; an example business with an assessed value of $1,000,000 would face about $46.44 per month or $557.28 annually.
"The approximate dollar amount of the additional ad valorem tax revenue … is $3,500,000," Jurgis said, and described department-by-department allocations and the risk of making deeper cuts, including potential FTE reductions, if the council declines the increase.
Jurgis framed the increase as a response to structural budget pressures: the city has relied on reserve funds and one-time federal pandemic recovery monies in recent years and now faces growing costs tied to inflation, personnel, technology and deferred Town Center project expenses. He noted a 2024 general-obligation bond for the Town Center, ongoing project complications and that projected long-term benefits from the project have not yet materialized.
On procedural steps, the council approved resolutions acknowledging the tentative budget filing and the presentation of a separate property tax impact schedule; the council recorded votes on those acknowledgments. Council members also directed staff to publish and post required notices and scheduled public hearings: a budget hearing June 2 at 7 p.m., anticipated adoption June 16 at 7 p.m., and the Truth in Taxation hearing on Aug. 11 at 6 p.m. (Aug. 11 is subject to final approval by the Salt Lake County auditor).
Why it matters: The proposed increase is intended to stabilize municipal services — including police, fire, public works and community programs — and reduce reliance on reserves. Staff warned that without the change, the city would need service reductions and possible staff cuts.
Votes and formal actions: The council voted to approve procedural resolutions that acknowledge the tentative budget and the presentation of the property-tax impact schedule (resolutions listed on the agenda as 2026-27, 2026-28, 2026-29 and 2026-30 for the various acknowledgments and notices); recorded votes were taken on multiple items and are reflected in the meeting record.
What’s next: The council will take public comment at the scheduled hearings; the county auditor retains authority to modify hearing dates. The council may adopt the final budget and any tax-rate increase following those hearings.
