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Provo City Council divided on how much to increase property taxes

By Genelle Pugmire - | Aug 9, 2023

Harrison Epstein, Daily Herald

The new Provo City Hall is shown on Thursday, June 30, 2022. Windows on the left are part of the City Council chamber.

The Provo City Council held a truth-in-taxation hearing Tuesday to discuss a proposed increase in property taxes of 7.6%.

The final 2023-2024 budget will be approved during the council’s Aug. 22 meeting. The numbers presented, which would raise taxes by 4.82% for the city’s general fund and 2.78% for the library — are not binding until the final vote.

Councilman David Shipley said he will vote for the smaller increase and believes the council is going a bit beyond. Katrice MacKay, council chair, and Councilwoman Shannon Ellsworth also indicated they want to have less of an increase.

Council members George Handley and Bill Fillmore advocated for more than 3%. They will prepare two proposals, but want to mimic last year’s increase of around 5%.

The need for the increase was to add two police officers and their equipment on staff so the city can fill vacancies, as the department reportedly needs 10 more. If the 3% is voted in, it would allow for only one police officer.

“Hiring a police officer is a significant cost,” Handley said. “It is a significant investment.”

The proposal includes the first tax increase for the library since it opened more than 20 years ago. The library original opened with a hefty amount in its coffers, but the city says needs have arisen after two decades, and inflation has eaten into funds.

The library has been running on a deficit for the past several years, according to Shipley. The library is asking for the money to keep the facility running in the red.

The increase in general operations would be 4.82%, or an extra $6.93 in taxes per year on an average home valued at $467,000. The increase for the library would be 2.78%, or $2.83 a year on the same valued home. The total for both would be $9.76.

The city’s revenue would be expected to increase by $354,316. The library would receive an additional $100,000.

None of the increases are keeping up with inflation, according to MacKay.

Six residents spoke concerning the increases but mostly had questions about their complete property assessment values.

“There are multiple things I am thinking about in this decision,” said MacKay, who shared some of her friends’ problems. “First of all, there is inflation. Provo City is experiencing the effects of inflation on their budget just like you are experiencing it on yours. Provo City needs the money to counter inflation, but I also know that citizens need a break, and sadly wages are not rising like inflation is rising.”

“We are constantly behind in our police and we are looking at doing an increase to cover a police officer/car/uniform and equipment,” she added. “I hear a lot from citizens unhappy that speeding isn’t cracked down on, bugged that there isn’t better enforcement on nuisances in their neighborhood or why doggy parents aren’t enforced on for all the dog poop on our trails. The answer is always that there aren’t enough officers.”

MacKay say she feels concerned about these increases for people in different economic situations.

“I find this decision hard when I’m looking at the city as a whole and everyone is at a different place with these evaluations. I have talked to people with dramatic increases that have shocked them and others that are thrilled their evaluations went down,” she said.

The Utah Legislature started truth-in-taxation in 1985. The city is allowed to legally raise taxes in proportion to new growth. Any additional increase requires a public truth-in-taxation hearing.

Fillmore said the council has a charge to make Provo economically strong over the long haul for many years.

“We don’t enjoy raising taxes unless we feel it’s the responsible thing to do,” he said. “Public safety is very important to us.”

The Provo City School District, one of Provo’s taxing entities, will not hold a truth-in-taxation hearing this year. However, the Central Utah Water Conservancy District, another taxing entity, will hold a hearing on Aug. 21, seeking a 5% increase for the purpose of keeping up with interest and inflation.

Residents are also welcome to appeal their property evaluation by the county to the county assessor. The deadline is Sept. 15.