Eastern Bluffdale EDA's tax increment ends, shifting property tax back to the city

The Eastern Bluffdale economic development area has stopped collecting property tax increment, according to the city's fiscal 2027 budget. The budget says "the Eastern Bluffdale EDA tax increment collection period ended in FY2026, as a result there will no longer be tax revenue in this fund." ^[1]

The area's money

The Eastern Bluffdale EDA recorded $9,462,927 in property taxes and $1,697,047 in interest in fiscal 2025. Its fiscal 2026 budget listed $1,600,000 in property taxes. Its fiscal 2027 budget lists none, along with $900,000 in interest and $4,300,000 drawn from fund balance. ^[2]

Fiscal 2027 spending of $5,200,000 includes $4,600,000 for affordable housing, $400,000 for a 14600 South storm drain, $150,000 for the Heritage Crest collector and $50,000 for professional services. The area's fiscal 2026 budget had included $20,000,000 for the 14600 South railroad crossing. ^[2]

The budget says the area "has committed much of its existing funds to the 14600 South railroad underpass project, with the remaining balance being restricted for Affordable Housing." ^[1]

Effect on the general fund

The budget says the end of the collection period "increases the projected property tax revenue for FY2026, but reduces the EDA management fees paid to the General Fund." ^[3]

The general fund's property tax revenue was $2,014,351 in fiscal 2025. The budget says that figure was about $300,000 lower because the county overpaid the city in fiscal 2024. The fiscal 2027 budget projects $3,500,000, 43% more than the $2,446,566 budgeted for fiscal 2026. ^[3]

The administrative fee the Eastern Bluffdale EDA paid the general fund was $680,000 in fiscal 2025 and $400,000 in the fiscal 2026 budget. It is zero in fiscal 2027. ^[4]

The general fund's transfer of property taxes to the Fire and Police Protection Fund was $2,412,186 in fiscal 2025 and is budgeted at $3,500,000. The budget says that with the EDA ending, more of the general fund's contribution to public safety shows as property tax, "but overall it remains mostly the same." ^[5][6]

The agency's books

In the fiscal 2025 audit, the Redevelopment Agency fund, which accounts for the city's development areas, reported $48,539,050 assigned to redevelopment projects at June 30, 2025. The agency reported $10,295,711 of tax increment generated that year, spending of $6,275,168 on public works and capital outlay, and no outstanding debt. ^[7][8]

The Jordan Narrows EDA has also reached the end of its terms and no longer receives tax increment, the budget says. It budgets $400,000 in interest and $4,889,080 in fiscal 2027 spending, including $1,800,000 for the Cinch Way pedestrian bridge and $2,000,000 for Cinch Way South. ^[1][9]

The Gateway RDA's budget is unchanged at $1,115,000 in revenue. ^[1]