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Finance director warns revenues are unpredictable; council to consider Truth in Taxation options
Summary
City finance staff reported an 8.4% revenue bump in November but called revenues unpredictable, reviewed property-tax distribution and scenarios (1% = ~$73K), and flagged state-level tax legislation as a potential influence on FY2027 planning.
Finance Director Anna Montoya walked the council through FY2026 revenue and expenditure performance and outlined scenarios the city could use as it prepares the FY2027 proposed budget.
"The city had a big bump in November; it has been unpredictable but is up by 8.4%," Montoya said, noting sales tax remains the largest revenue source and that property-tax collections fell this year largely because of an error by Utah County that staff expect will be corrected next year. She explained sales-tax point-of-sale changes and slowed permit revenue growth as complicating factors for forecasting.
Montoya presented several property-tax scenarios and explained that every 1% increase in the rate would yield about $73,000 to the city under current assessed value assumptions. She reminded the council that any Truth in Taxation action follows a defined statutory process and that Alpine School District has a related public hearing scheduled Aug. 1.
On expenditures, Montoya said personnel is the biggest component of the general fund and that public safety accounts for roughly 54% of departmental spending. She noted the general-fund balance sits near the 35% policy maximum and excess reserves have been moved into capital funds in recent years.
No formal tax rate decision was made at the workshop; staff will bring draft budget proposals and options for rate and fee adjustments — including transportation utility fee and utility-pass-through considerations — to future council work sessions.
