Pleasant Grove opens public process under new truth-and-taxation rules to consider possible property-tax increase

City staff laid out a multi-month schedule Tuesday for considering a possible property-tax increase under Utah’s revised truth-and-taxation process, saying the council must adopt a set of procedural resolutions to keep the option on the table but that no final decision will be made until a required public hearing this summer.

Scott, a staff member leading the budget presentation, told the council how the state’s process works: annual valuation increases generally do not raise a homeowner’s tax bill because the rate is adjusted to keep municipal revenue roughly neutral, and primary residences receive a 45% exemption that reduces taxable value. He said the county will provide certified valuations by June 1, the council will hold a tentative-budget public hearing (with the required property-tax impact statement) in early June, adopt an interim budget and set aside any proposed increase in a restricted account on June 22, and then hold the statutory truth-and-taxation public hearing on August 11.

"We want the public to know what the intentions are," Scott said, describing the state rule changes as designed to create a longer (three-month) window for resident input rather than compressing decisions into late June. He emphasized that the council can stop the process at any time before final adoption and that any amount announced in the impact statement can be reduced later but not legally increased beyond the published high point.

Council members and staff discussed the mechanics and outreach plan for the three-month period. Staff proposed multiple public-engagement methods—including mailed flyers, water-bill inserts, an open house, social media outreach and a possible third-party survey—and said the impact statement will explain how proposed revenue would be used (staff cited public-safety hiring as a primary example of a use the council has discussed). Scott also shared informal survey results from other Utah cities: of 57 respondents, 27 were considering tax increases and 17 planned at least some of the revenue for public safety.

Several council members said they prefer being cautious with resident-facing outreach and that staff should provide more refined numbers before the next decision points. Scott said staff will return with updated valuations and scenario runs after the county’s June 1 certification. He added that the June 22 adoption process moves the proposed increase into a separate restricted account so that, if the council ultimately decides not to proceed after the required hearing, the money is not spent.

The council did not vote to raise taxes Tuesday. Instead, staff asked the council to adopt procedural resolutions to begin the public-notice and outreach steps required by the new state process; if the council does adopt those resolutions at regular session it would be signaling a desire to consider an increase but would still be able to rescind the proposal at any subsequent step before final adoption.

Next procedural dates identified by staff: county-certified valuations expected by June 1, a tentative-budget/public-impact hearing in early June, June 22 for adopting the interim budget and placing any proposed increase into a restricted account, and the truth-and-taxation public hearing set for Aug. 11. Staff said they will return with refined dollar values and outreach plans for council review prior to those milestones.