The proposed budget is balanced without any property tax increases; however, it entails a 6% increase to water rates and rate increases for commercial and industrial power customers ranging from 4% to 7%.

The tentative budget document cites inflation and infrastructure replacement needs for the water rate increase. The power increases are needed to keep up with energy operating costs, the city said. Rates for residential power customers will not be raised.

The general fund projects $94,218,946 in revenue and $94,218,945 in expenses, greater than the adjusted budget of $90.89 million for 2026. The revenue increase comes from a projected 13% growth in the city sales tax budget, equating to an additional $3.6 million in budgeted revenue.

“I began my service as mayor in January, and we got to work immediately with our finance team to review sales tax projections, discuss supplemental requests and hone in on the details to ensure we delivered on one goal, a balanced budget that improves Provo residents’ quality of life,” Judkins told the city council while presenting the budget last week. “The proposed budget successfully achieves this goal by focusing on fiscal discipline, operational efficiency and long term investments.”

Proposed expense increases include the addition of fire department positions to “improve coverage and reduce reliance on overtime,” Judkins said. The budget also includes greater investments in city cybersecurity and improving the building permit process, Judkins said.

For city employees, cost of living is projected to increase by 2%, merit by 2.5% and health insurance by 6.1% beginning Jan. 1, 2027. The city said the personnel cost increase will enhance retention and recruitment of employees.

Public hearings for the budget are scheduled for June 9 and June 23. The full tentative budget can be seen on the city’s website.