Brian Head Council removes proposed $150,000 property tax increase and defers Transportation Utility Fee

The Brian Head Town Council voted by consensus on May 12 to remove a proposed $150,000 property tax increase from the town’s FY2027 tentative budget and to defer adoption of a Transportation Utility Fee (TUF) while staff works with stakeholders to redesign the proposal.

Town Treasurer Shane Williamson told the Council the tentative budget included a proposed $150,000 property tax increase — an estimated 12.85 percent increase to the proposed town tax rate — intended to fund annual transfers from the general fund to the capital fund to support the pavement management plan and gravel road maintenance. The proposed tax was the only change to the tentative budget since the Council’s May 12 meeting, he said.

The public hearing opened at 1:09 p.m. Thoms Thompson, a cabin owner in Rainbow Meadows, told the Council he receives no town services and questioned the rationale for a town tax increase. Town Manager Bret Howser clarified that the proposed increase affects only the Brian Head town portion of a property tax bill and that concerns about county or school taxes should be directed to Iron County and the school district.

After the hearing, Mayor Clayton Calloway said he would direct staff not to proceed with the proposed property tax increase, citing two difficult snow seasons and broader pressures on residents and local businesses. "I intend to direct staff not to proceed with the proposed property tax increase," Mayor Calloway said. Council Member Larry Freeberg and others agreed but urged staff to pursue alternative funding so road maintenance is not deferred into costlier repairs later.

The Council also considered the Transportation Utility Fee, a monthly charge modeled on utility fees and intended to generate revenue for road maintenance. Marcus Keller of Cruze and Associates presented the TUF study, explaining that a legal maximum could produce roughly $684,000 annually (about $30 per equivalent residential unit, or ERU), while the study’s recommended fee of $12 per ERU would generate about $270,553 annually. Keller summarized the method: the study uses trip-generation rates to convert land uses into ERUs and distributes costs accordingly. "A Transportation Utility Fee is a monthly fee charged to users of town roads, similar in structure to a water or sewer utility fee," Keller said.

Staff had reviewed lower-start options to reduce near-term economic impacts. Under a staff-recommended scenario discussed with the Council, commercial tiers would receive a 75 percent discount and the TUF would be expected to raise roughly $100,000 — about $6.50 per ERU for most residential properties.

Public comment on the TUF was mixed. Jim Vincent, a cabin owner, said he supports the idea. Tom Pettigrew, General Manager of Brian Head Resort, said the resort was not opposed to a TUF but raised three concerns: the resort already contributes to transportation services through an enhanced-service business license fee that now generates nearly $700,000 annually; much resort traffic uses State Route 143 (a UDOT highway) rather than town streets, which complicates ERU calculations; and he requested a brief meeting with staff before the June 9 budget adoption to ensure the fee structure fairly accounts for existing contributions and road impacts. "We are not opposed to the TUF but would like a brief meeting with staff before June 9 to ensure the final fee structure accurately reflects actual town road impact," Pettigrew said.

Council members agreed the standard TUF model presents challenges in Brian Head, particularly because much access is via SR-143 and because singling out a single business or failing to account for existing contributions could present legal risk. The Council reached consensus to remove the TUF from the FY2027 adopted budget and to continue working on a revised structure that could include a small working group with resort participation; a TUF could still be implemented later via a mid-year budget amendment if a legally durable approach is developed.

Town Manager Bret Howser said the direction to staff was to bring a June 9 budget that omits both the property tax increase and the TUF, while continuing to explore funding alternatives for pavement and gravel roads. The Council also noted that snow removal costs — including roughly $100,000 a year on plow blades and salt — further constrain road funding.

The Council is scheduled to adopt the FY2027 budget at its June 9 meeting; staff will report back on alternative funding approaches and any further TUF proposals.