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Spring Heights council leans against a property tax increase as budget work continues
Summary
Council members discussed the draft 2026 budget, fund balances, and a recommendation from staff not to pursue a Truth in Taxation; members asked for clearer fund-balance details ahead of the May tentative budget hearing.
Spring Heights City Council members discussed the draft fiscal 2026 budget on April 21, with staff recommending the council not pursue a Truth in Taxation that would raise property taxes.
The council examined updated 2025 actuals and early 2026 projections presented by staff member Darren, who said he reduced a projected shortfall from about $160,000 to roughly $125,000 by adjusting several line items. Darren recommended using available fund balances to cover the shortfall rather than raising tax rates this year.
Mayor Genie Grover and other council members reviewed the composition of roughly $12 million in combined city funds. Grover said about $1.5 million is in a water enterprise reserve, and close to $1 million sits in a transportation-utility fund (the $7.50 monthly utility charge) that had been underused in prior years and will be deployed for roads. The council discussed whether some reserve accounts—particularly the vehicle-replacement fund—are larger than necessary and asked staff to provide clearer, itemized fund-balance numbers.
Council members requested quarterly fund-balance reports and finer breakout of administrative allocations. Staff also noted lingering timing effects: revenues and late invoices can shift the year-end fund balance through July and August, and the state-required fund-balance ratio is calculated at fiscal year close.
No final budget vote was taken; the council will hold a public hearing on the tentative budget at its May 5 meeting and adopt a final budget by June 30. Darren and other staff said they will produce updated worksheets and analyses for subsequent meetings.
Clarifying detail: Darren told the council that the recommendation to avoid a Truth in Taxation reflects available reserves and modest revenue changes, and that adopting a tentative budget in May remains compatible with continued adjustments through the end of June.
What’s next: the council will review updated fund-balance detail before the May tentative-budget hearing and expects additional discussion at the May 12 work session with the planning commission if items tied to capital projects require policy decisions.
