Inflation, stagnant sales tax revenues prompt city council to approve second property tax hike in three years
Jul 11, 2024 12:46PM ● By Carl Fauver
Lots of old cement and even older trees are now being removed at Taylorsville Park to make room for new amenities. (Carl Fauver/City Journals)
We’ve all heard variations of the famous line Mark Twain uttered some 150 years ago: “There are three kinds of lies: lies, damned lies and statistics.” In other words, it’s often not difficult to twist numbers to make something sound either horrible or palatable.
Case in point: your Taylorsville City Council has approved a property tax increase for the 2024-25 fiscal year, which begins this month. So, which of these statistics do you suppose are true:
This tax increase is more than double the last one approved two years ago.
Property taxes only fund about 14% of all the services and amenities Taylorsville City provides.
At 25%, the just-approved tax hike is one of the largest ever in Taylorsville.
The tax increase will cost the average Taylorsville homeowner about $4 per month.
All of the above
As you’ve already guessed, the answer is “all of the above.”
“If we are just getting by – and not planning for our future – we are actually falling behind,” Mayor Kristie Overson said of the tax increase. “Yes, we could operate the city for another year without raising taxes; but we would have to trim some services. It also would not let us solve any of our future issues. In my opinion, that is too risky. I believe the city council made the right decision.”
“To me, the decision to raise taxes slightly was a no-brainer,” Councilwoman Meredith Harker added. “Our citizens love the services we provide; and they know we are cautious with tax dollars. But the city has been feeling inflation just like everyone else. We live in a great city; but we can’t keep it that way if we don’t have the funds to maintain our current services.”
Last month, city council members voted 4-1 to approve the second property tax increase in three years. Councilman Bob Knudsen cast the lone dissenting vote. But he’s quick to add, his “no” vote was because he wanted more clarification on how the new tax revenues will be spent; not because he was necessarily opposed to asking Taylorsville homeowners to foot a little more of the bill.
“This budget is a very good, sound budget and I agree with it,” Knudsen explained. “I appreciate the work that went into it. The big reason I voted no is because this budget sets aside some funding and I have not seen an itemized list of how that money will be spent. My constituents want a few more details. But I am not opposed to the tax increase. At our most recent (volunteer citizen) Budget Committee meeting, all of the members also agreed a tax increase is necessary. I would just like a few more details. I want our residents to understand, we hold tax dollars to be precious. We work hard to never waste them.”
When you want the most accurate, hard-and-fast city budget numbers you can get, you turn to Taylorsville Chief Financial Officer Scott Harrington. He says many of the answers Knudsen wants aren’t yet available.
“This property tax increase will generate less than a million dollars for the city; our nearest estimate for it now is about $912,000,” Harrington said. “One new city police officer will be funded with $74,000 of it. (TVPD Police) Chief (Brady) Cottam had requested two new officers and some additional equipment. The council compromised by approving one officer. The bulk of the tax increase ($838,000) will go into our Capital Projects fund. It will be spent on infrastructure: roads, street lights, park improvements, things like that. We aren’t sure yet what specific items will be funded with the money; but it will be in that category.”
In other words, Harrington says the itemized list Knudsen and his constituents are seeking doesn’t exist yet. But, given everything on the city’s plate, there are needs.
Harrington is also quick to explain, although a 25% tax increase may sound large, it is actually pretty modest for the average Taylorsville homeowner. Moreover, the total property tax paid by city homeowners amounts to only 14% of the Taylorsville budget.
“In round numbers, this tax increase will grow our entire property tax total from $3.6 million to $4.5 million,” Harrington continued. “But that’s barely a third of what our sales tax revenue will be. We still have three months to add in – but we estimate sales tax this year will generate $12.9 million.”
The CFO further explains, the entire 2024-25 Taylorsville City budget is about $31,835,000. In other words, nearly half of that entire budget – roughly $14.4-million – comes from various state and federal sources outside the city.
Twain would be proud of all those numbers. Bottom line: a 25% tax increase sounds like a lot… while $4 per month is expected to strike most residents as reasonable.
Some of the new tax revenues are expected to help finish up improvements to a pair of city parks in the years ahead. But the lion’s share of that work is already underway – with dollars already in hand.
One of those parks is the venerable, 7-acre Taylorsville Park (4700 S Redwood Road). The much larger (16-acre) site at 6200 S. 3200 West has not yet been officially named. Some want “Tank Park” (because it is adjacent to a pair of very large water storage tanks). Others prefer “Summit Park” (because, no matter how you approach that intersection – from the north, south, east or west – you drive uphill).
“We have contracted for $5.5 million in improvements at Taylorsville Park and an additional $3.7 million at (Tank/Summit) Park,” City Engineer Ben White said. “Strong Excavation is our contractor. They are concentrating on the south end of Taylorsville Park now. The old skatepark has been removed and will be replaced by a new one. There will also be a new road, going east from Redwood Road, to tie into the Taylorsville Senior Center parking area. That will give people easier access to the new pickleball courts south of the senior center.”
Other improvements expected within the next six months at Taylorsville Park include: new restrooms, two new pavilions, additional parking, a new basketball court and a large children’s playground.
Most of the $3.7 million earmarked for Tank/Summit Park will not be spent until next spring. So far, the only amenities at that location are the four pickleball courts constructed there last year.
“We anticipate adding restrooms, a large parking area and possibly a children’s playground in this first phase of work at (Tank/Summit) Park,” White added. “We expect all of that work to be completed by next summer.”
A large portion of the $9.2 million being spent in this Phase I construction at the two parks is grant funding from Salt Lake County. City officials also plan to pursue additional grant dollars to help cover the cost of Phase II construction at each site. That work is expected to include more in the way of walking trails and landscaping.
“We don’t have good cost estimates for the Phase II work at the two parks; and with inflation the way it is now, estimates today might not mean much in a few years anyway,” Overson said. “We have always prided ourselves in being a pay-as-you-go city. We don’t bond for things. Again, that’s why I support the council’s decision to raise property taxes this year. If we want to consider future capital projects like park improvements, there has to be a little money to work with.”
For his part, Chief Brady Cottam is satisfied with his budget, as the Taylorsville City Police Department now enters its fourth year of existence.
“You always get told ‘no’ during budget season; so, I’m not surprised we are only receiving one new officer and not two,” Cottam said. “With this new employee, we will now have 67 sworn police officers in the department and nine civilian employees. My officers also received a good salary increase back in January. The city council is continuing to follow through on its promise to keep our pay rates competitive with other police agencies in the valley.”
Utah law guarantees Taylorsville residents the opportunity to sound off about the proposed $4 per month property tax hike. The city is compelled to hold a “Truth in Taxation” hearing in August. At press time, that meeting was expected to be held in city council chambers on Aug. 13. However, that date and location were not yet firm. λ