Orem staff propose dedicating property-tax revenue to a public-safety fund

Orem staff told the City Council they are preparing a proposal to establish a public-safety special revenue fund and to dedicate the city's property-tax levy to that fund.

Brandon (city finance staff) explained that the dedication would increase transparency by labeling the levy on county tax rolls as "Orem Public Safety" rather than a generic city levy. Staff described revenue sources that would flow to the fund: property taxes, interlocal fire agreements, ambulance fees and other public-safety-related charges.

The presentation noted that dedicated funds are accounted for separately, which helps demonstrate that the dollars are spent on the public-safety purposes the council identifies. Staff said establishing the fund and dedicating revenue is a multi-step process: council action (resolution), coordination with the county to update levy names, and budget changes when the tentative budget is presented in May with final actions in June.

Brandon emphasized that dedicating the levy is a tool to align revenues and services, but not a revenue increase in itself; it is a reclassification of how the city accounts for property-tax receipts. He also reminded the council that if the city includes a property-tax increase in the tentative budget, the new statutory requirements for impact statements and separate hearings will apply.

The council heard the proposal as part of the budget discussions; staff will return with draft resolution language and examples of the tentative-adopted budget steps needed to implement the change.