Due to nationwide inflation and an increasing need to fund 24-hour fire and EMS services for the city, the council is suggesting a 6.5% tax increase on property values.

According to Patrick Monney, Springville director of administration, the proposed increase would mean an additional $17 a year in taxes for a home valued around $500,000.

“This increase in service created a $1.2 million deficit. We are backfilling with an approximately $350,000 tax increase on property,” Mayor Matt Packard said.

As the city has grown, so has its needs. Calls for fire and medical assistance have increased over the years, becoming too much for a volunteer and part-time staff. The department has to call other cities frequently for additional assistance.

Springville city hopes to employ enough local staff that these services will be operating around the clock. The city council believes that expanding the department is the best option, allowing for quicker response times and eliminating the need to outsource emergency services.

Where these taxes go depends on the area of the city where a resident lives. A resident’s total bill is split four or five ways with 11% of the tax bill going to the city. The general operations portion of the city’s percentage could receive a tax increase.

“Under state law, property tax revenue coming into the city remains flat unless the city pro-actively adjusts the tax rate through the truth in taxation process,” said Bruce Riddle, Springville director of finance. “In other words, if property values increase, property tax rates decrease so that the city’s property tax revenue stays the same. In an inflationary economy, the value of each dollar of property tax revenue decreases relative to the cost of labor, materials and equipment.”

If the increase is approved by the city council and certified by the county, it would go into effect in November 2023. Since the truth and taxation process was put into law in 1985, Springville has never raised their property taxes, according to city officials, while nearby cities have increased tax rates in an effort to counteract inflation in recent years.

“Springville does not take the issue lightly, but feels the fiscally responsible action is to raise the certified rate in order to provide enhanced, core governmental services (Fire & EMS) and combat the effects of inflation in order to keep service levels as expected by the residents of Springville,” Riddle said.

Time will be set aside during the Truth in Taxation hearing for public comment, after which the council will contemplate the input before taking a vote on the final tax rate and budget.