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Council adopts FY2026 budget, sets certified tax rate after heated public hearing on tax increase
Summary
After a public hearing with residents split over a proposed property tax hike, the Castle Valley Town Council adopted the FY2026 budget and set the certified tax rate at 0.001339, with councilors saying most surplus funds will continue to be directed to capital road projects and water protection.
The Castle Valley Town Council adopted its fiscal year 2026 budget and approved a certified tax rate of 0.001339 following a public hearing on Aug. 20, 2025 that featured both support for and opposition to a proposed property tax increase.
Residents at the hearing urged the council to fund road repairs and water protection, while others opposed a permanent tax increase and suggested alternatives such as a bond or special assessment. A written public comment entered into the record argued against a tax increase to pay for a culvert engineered for a so‑called “1,000‑year” event and recommended exploring decertification of the town government; that statement was read aloud by the mayor during the hearing. One attendee told the council: "the town of Casa Valley seeks a further increase of over 50%" (public comment read into the record).
Councilors repeatedly said that capital roads are the meeting’s highest priority and described typical budgeting practice: money not spent in operating lines is often moved into the capital roads account at year‑end. The council and staff also explained that some revenue streams tied to roads—such as state Class C gas tax distributions—vary year to year and that certain state mandates (for elections, records retention and emergency planning) create administrative costs the town must absorb.
Council debate included whether smaller increases in administrative or IT items should be allowed now or handled through amendments if surpluses permit. After discussion, a councilor moved and the council passed Resolution 2025‑6 adopting the FY2026 budget; the council later moved and adopted Resolution 2025‑5 to set the 2025 certified tax rate at 0.001339.
The council recorded that a portion of the proposed property tax increase packet referenced a $75,000 levy proposal, with roughly $50,000 described as earmarked for roads in the materials discussed during the hearing. Council members also noted the town had carried a surplus in prior years and said unspent funds were routinely applied to capital road projects, but residents expressed concern about pace and priorities for projects such as Castle Valley Drive and a major culvert repair.
