Parowan adopts $29M budget driven by one-time grants; no property tax rate increase

Parowan City Council on June 11 adopted the FY2026-27 budget, a spending plan city officials described as inflated in headline size by one-time grant and bond flows rather than ongoing operating growth. City Manager Dan Jessen told the council the draft reflects approximately $10.5 million in grants and about $8.6 million in revenue bonds; he characterized the package as a “year of grants.”

The budget carries no proposed property tax rate increase; the council separately adopted the auditor’s certified tax rate of 0.002137, estimated to generate $937,161 in property tax revenue. Jessen said the general fund unassigned balance remains within statutory limits and that the overall plan prioritizes capital projects—including water system work, Main Street bridge completion and airport improvements—that are largely grant- or bond-funded. The council approved the budget by roll call vote (Harris, Barton, Dean, Burton — all Aye).

Major capital items highlighted in the presentation include a $10 million springs/water system project (budgeted as $1 million grant and $9 million in borrowings), a nearly complete Water Recharge Project, a Main Street Bridge expected substantially complete by December 2026, a $6.7 million airport road/industrial park access project contingent on an EDA grant, and a multi-year airport master plan update (city share ~5% of $364,000). Jessen also noted a 2.6% cost-of-living adjustment and continuation of step increases for employees; he estimated the total compensation impact across funds for COLA and steps at about $89,000–$90,000.