CENTERVILLE—Centerville City Council city officials took the first formal steps toward a proposed property tax increase during a May 5 council meeting, citing rising operational costs and the need for additional public safety personnel.

That evening City Manager Brant Hanson, who acts as the city’s budget officer, presented next year’s tentative budget which includes a proposed tax rate increase of approximately 15.5 percent. If approved, the hike is estimated to generate an additional $361,640 in annual revenue for the city.

Under the current proposal, the property tax rate would shift from 0.001200 to 0.001386. For a primary residence valued at $582,000, this would mean an annual tax increase of approximately $59.61. Local businesses with the same valuation would see an increase of about $108.39 per year.

Hanson noted that these figures are approximations.

“We actually don’t know what that increase will be until we understand what new growth is,” he said, noting that finalized numbers from Davis County are expected in late June.

“Keep in mind that 15.5% is an approximation and it could shift and change. Obviously, in our budget, we saw an increase of more than $361,640...,” he said. “We’re only asking for a property tax increase to cover that $361,000. The other areas that are covering that increase are an increase in sales tax revenue of $100,000 and using fund balance to balance this budget.”

The city provided a detailed “Property Tax Impact Schedule,” a requirement of Utah’s Truth in Taxation laws, to show exactly where the money would go. The bulk of the new revenue is earmarked for public safety:

Police Department ($250,000): Funding for one additional police officer, a new patrol vehicle and associated equipment/training.

Fire Services ($35,072): To cover the city’s increased assessment for South Davis Metro Fire.

Public Works ($15,860): To address rising electricity costs and maintenance for street lighting.

Administration & Legal ($50,578 total): Funding for a resident communication platform (Yapify), legal interns, outside consultants and rising court prosecution costs.

Community Amenities ($9,500): Maintenance and signage for city trails, as well as mandatory training for the mayor and city council.

The proposal sparked a detailed discussion among council members. Councilmember Rick Bangerter expressed support for the transparency of the new state disclosure laws but urged caution. Residents are already facing potential increases from other entities like the county and the fire district, he said.

“I take very, very seriously the dollars that we’re collecting from our residents and businesses,” Bangerter said, questioning how the staff selected these specific eight items. 

While many costs are rising – including medical insurance for employees – the city is using sales tax growth and fund balances to offset as much as possible, Hanson responded. The property tax increase is focused on “defensible,” ongoing needs that the city cannot otherwise cover without dipping dangerously into reserves, he said.

“The police department would not be able to hire an additional officer... and the city may need to reduce street lighting by turning off lights or delaying repairs [without this increase],” Hanson said during the presentation.

The city council was expected to further discuss the proposed tax increase and formally present the “Taxing Entity’s” perspective – something required by Utah law – on May 19 (after this newspaper’s deadline).

The council’s unanimous vote on May 5 was a procedural acknowledgment that the budget officer has fulfilled his legal obligation to notify the public of the intent to increase taxes, not an indication of how members would vote on the proposed increase.

The city is expected to hold a formal public hearing in August, as required by Utah’s “Truth in Taxation” process, where residents can voice their opinions. During that meeting, the council has the authority to approve the rate as proposed, reduce it, or reject the increase entirely (which would require them to cut the services listed in the impact schedule or find alternative funding).