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Davis Journal

Board votes to pass on tax increase to cities

Aug 19, 2021 10:44AM ● By Becky Ginos

BOUNTIFUL—Following a Truth in Taxation hearing on Aug. 2 on a proposed tax increase for the South Davis Metro Fire Service Area, the Governing Board voted on Monday to adopt a new tax rate together with an increase in each agencies’ respective assessments of 10 percent. The change will lower the residents’ tax burden.

“The original tax rate of 0.000620 was lowered to 0.000585,” said Ken Leetham, Administrative Committee Chair. “That shifts the difference to the cities that make up the district. The citizens will be happier that they’ll pay less than what was published.”

The Service Area is facing significant barriers to funding its operations without additional revenues through a property tax increase, Leetham said in a letter to the Board. “Our Board of City Managers made the recommendation to change the tax rate and they voted to follow that. The Service Area will still be funded as proposed in the original budget.”

The property tax increase would cover:

• Debt service

• The costs of 24 full-time employees which greatly enhanced the Area’s collective level of service

• Annual funding of the multi-year capital equipment plan

It is also intended to cover 100 percent of the costs of the three existing paramedic units because of the changes made to the countywide paramedic services, said Leetham. “This rate accounts for the elimination of the county’s paramedic tax and the annual payment from the county to the Service Area related to paramedics.”

“We could have a Truth in Taxation every year to make an incremental increase,” said North Salt Lake Mayor and Board Chair Len Arave. “I’m in favor of that. There are some CARES funds out there but at some point in time we have to know what’s going on in the cities. Any cost increase would be going to the cities.”

“Unfortunately a whole bunch of organizations are going through it (Truth in Taxation),” said Davis County Commission Chair Bob Stevenson. “I got an email the other day from someone who said he would do everything he could to get me out of office. One of the hard things is that people don’t understand how it works.”

Raising taxes is a difficult thing, he said. “But we have to try and create the best environment we can for fire, police, mosquito abatement, etc. I hope in the future any taxing entities will look for ways to keep taxes down. Ten percent is a big number.”

“If you look at the budget’s history we expect some additional assessment,” said Centerville Mayor and board member Clark Wilkinson. “If we had Truth in Taxation every year a 2-3 percent increase would be less of a shock to people, but I’m not a big fan of going through it every year.”

Wilkinson said he’s crunched the numbers and they don’t have the ability as a board to go out and get additional revenue. “I hate tax increases, everybody hates them. It’s a case of needs versus wants. Paramedic services are critical. It’s a big need rather than a want.” 

“I would welcome more Truth in Taxation,” said West Bountiful Mayor and board member Ken Romney. “Some things would come up and we’d deal with them. But as a group as a whole I’m supportive of going with what’s been proposed by the committee for the 10 percent increase (to cities).”

Ultimately the board voted unanimously to adopt the new tax rate.