Orem adopts $211M tentative budget, proposes small property-tax increase to fund two police officers and a new public-safety fund

The Orem City Council on June 9 approved the city’s tentative FY26–27 interim budget and cleared a set of related actions that would create a public-safety special revenue fund and put forward a small property-tax increase to help fund two additional police officers.

Brandon Nelson, the city’s chief financial officer, told the council the packet includes a property-tax revenue request of $450,000 and that the proposed change above the certified tax rate was presented as a shift "from 0.603 to 0.645." He said the county’s average primary residential value of $513,000 means the proposal would amount to about an $11.85 annual increase for that home. "The intent here is to fund two police officers, and their associated vehicles and equipment," Nelson said.

Nelson framed the larger tentative budget — shown at $211,000,000 — as chiefly reflecting the move to separate public safety into its own fund and several transfers between funds. He said the public-safety fund’s FY26 budget for police and fire combined is just over $38.1 million, while the city’s property-tax portion related to public safety is about $8.1 million, requiring a general-fund transfer to cover remaining costs.

Council members pressed staff for clarity on two points: whether adopting a statement of intent to dedicate the city’s general operations property-tax levy to the new fund would irrevocably "tie the hands" of future councils, and how the proposed property-tax change affects a typical homeowner’s bill. Several members and staff emphasized that any dedication is revisited annually in the budget process. As Nelson put it, the dedication is a yearly decision: "Every year when you pass a budget, you are dedicating the property tax as you would like to see it dedicated. Whether that's to the special revenue fund or if you wanted to then move it back to the general fund and place it there, you have the ability to make that change." (Brandon Nelson, Chief Financial Officer)

The council approved a resolution to create a public-safety special revenue fund and approved language indicating the council is considering dedicating the general operations property-tax levy to that fund for FY26–27. The substantive decision about any dedication and the final tax rate will be made after the Truth-in-Taxation public hearing scheduled for Aug. 27, 2026, at 6 p.m.

The council then moved, seconded and adopted the tentative interim budget ordinance, which also included adoption of the fees and charges and compensation programs shown in the exhibits and set the schedule for the Truth-in-Taxation hearing. Nelson and council members noted the property-tax component is a small portion of total revenue but is relatively stable compared with sales tax, making it attractive to bolster public-safety funding.

A final budget adoption and any property-tax rate-setting will occur after the Aug. 27 Truth-in-Taxation hearing and the council’s subsequent consideration.