The costs of providing essential government services, capital investment and infrastructure, have increased significantly. The increased costs and record inflation has impacted the City’s budget just like it has impacted the budgets of its businesses and residents.

Due to those increased costs and other financial pressures on the City budget, the Kaysville City Fiscal Year 2024 Budget included a moderate property tax increase. A property tax increase will allow the City to continue to provide the same level of services that residents enjoy.

By state law, a city must adopt a budget in mid-June for the next year when they are still working through the current year budget that runs from July 1 to June 30. For this reason, fiscal policy requires holding a Truth in Taxation each year to provide two more months (June to August) to evaluate how the prior year closed out and what financial conditions are needed to prepare for in the coming year. Influences on these calculations with fluctuating revenue include items such as sales tax, energy tax, building permits, inc.

Property taxes in Utah are a revenue-based system. State law limits the City to receiving the same dollar amount in property tax as it received the prior year (except taxes from new development) unless the City goes through the Truth in Taxation process. Therefore, as property values go up, the “Certified Tax Rate” goes down. As a result, when home values rise, the city does not collect inflationary growth. A city is required to set a budget based on the same revenue as the prior year.

Kaysville proposed a certified tax rate of .001562. The average value of a home in Kaysville is $640,000, and residential property receives a 45% discount, making the taxable value $352,000. The proposed tax increase on the average value of a home is approximately $8.25 per month ($99.26 per year). The tax on a $640,000 business would increase approximately $180.48 per year.

Property tax revenue goes into the City’s general fund which pays for important services such as police protection, fire and emergency services, parks and recreation, streets, snow removal, community development and administration. Property taxes are only a portion of what the city needs to provide these critical services.

During the recent Fiscal Year 2024 budget review process, issues were discussed and reviewed in considering the need to supplement the general fund with a moderate property tax increase. Primary issues affecting the budget included providing the same standard of service, recovering the lost buying power due to record inflation, maintaining the investment in infrastructure and capital improvements and the need to develop and maintain qualified and well-trained employees with competitive compensation. Once the Council approves the proposed budget, Kaysville City can increase its property tax budgeted revenue by 19.51% above last year’s property tax budgeted revenue, excluding eligible new growth.

Effective budgeting and management of public funds requires ongoing analysis of desired services in achieving a proper balance between revenues and expenditures. Property taxes are one of the few sources of stable revenue under the direct control of the city during the budget process. A moderate increase in this revenue source allows the city to continue to provide important services to its residents and businesses.

The public was invited to speak to the Council and conduct open dialogue and comments from the public attending the hearing ranged anywhere from broad support, not supporting an increase at all, asking to raise taxes a tiny bit each year a whole bunch every few years, or reducing city services. Citing the need to provide outstanding services for a reasonable cost to the citizens of Kaysville, the Council voted unanimously in favor of the tax increase and adoption of its 2024 Budgets.