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Davis Journal

Woods Cross proposes property tax increase

Aug 08, 2022 01:07PM ● By Becky Ginos

WOODS CROSS—Taxes are painful – but necessary – to keep a city running efficiently. Woods Cross City has initiated the Truth in Taxation process for 2022 in order to collect an additional $650,000 to operate the General Fund budget. If approved, taxes on a $469,000 home would increase from $172.31 a year to $298.19, a difference of $125.88, roughly $10.49 per month. 

“Inflation has hit us just like everyone else,” said councilmember Jessica Kelemen. “It’s been a long time since we initiated this to keep up with inflation. It’s something the police and South Davis Metro are all facing. We need funding for public safety and maintaining streets. It’s all important and it all costs money.”

The city has only gone through Truth in Taxation three times in the past 26 years, said City Administrator Bryce Haderlie. “It was in 2010, 2011 and 2016. We benefited with COVID because government agencies received money and they also shoved a whole bunch to citizens who started spending that money.”

That brought in extra sales tax, he said. “We won’t experience that this year. We don’t know how inflation will play out with no money coming in.”

The general fund is similar to a budget someone would create for their own family, said Haderlie. “You estimate a budget in your own home with expenditures and revenue. You have to balance that by either taking out money from savings or putting money into savings and try to balance that.”

The city's assessment to South Davis Metro Fire went up by $49,000, he said. “We pay them in addition to what we tax the citizens.”

Police wages have gone up 22 percent to compete with other agencies compared to 11 percent for other city wages, Haderlie said. “It’s a competitive job market. We had a marketing company track wages in the region and make comparisons of other agencies. They say ‘here’s your range’ then we need to put them in that range depending on years of service, etc.”

Haderlie said their goal is to pay them right now so they don’t go down the street because they can make $3 more. “Police officers are hard to find.”

“For us wages are a big thing,” said Woods Cross Police Chief Chad Soffe. “This doesn’t put us above but more in the middle. We’re not trying to make the most money but trying to get more so officers will want to stay here. We’re banking on them wanting to work in a small community. Animal control, dispatch, all the fees keep going up.”

“We look at the city like a business,” said Haderlie. “We have to provide services. A benefit to Woods Cross is our phenomenal sales taxes. People are buying right here in our community. These are not new services, they just keep operating as they have.”

In 2021, out of a $2,820.32 property tax bill the city only got $186, he said. “That’s not even 7 percent to Woods Cross. We’re losing ground each year through inflation.”

While commercial properties pay on 100 percent of the value, a primary residence pays on 55 percent of the value, he said.

The breakdown of what the city needs the $650,000 for is as follows:

• $500,000 will go toward public safety cost increases

• $150,000 will go toward an annual on a 10-year bond that is needed to fund a variety of road projects over the next three to four years.

“Nobody likes a tax increase, but they like the improvements,” said one resident. 

“It adds up,” said another resident who has lived in Woods Cross since 1972. “Especially on a fixed income. The hard part is it’s not just the city. It’s everything we’re dealing with.”

A public hearing on the proposed tax increase will be held on Aug. 8 at 6 p.m. at City Hall, 1555 S. 800 West. The City Council will hold a public meeting Aug. 16 to approve a resolution to adopt a property tax rate as proposed or lower.

“The council can decide to set it lower, they’re not bound by that rate,” said Haderlie. “But if it is any lower they’ll have to make cuts in the budget too.”λ