Heber City adopts smaller property tax increase, citing power company dividend
The council voted 5-0 on Aug. 18 for a 4.2% certified tax rate increase instead of the 4.8% proposed, and told staff to adjust revenues across the budget to make up the difference. The minutes do not state the final rate or the revenue it will raise.
Continuing storyHeber City: property tax vote, power dividend and senior relief pilot
The Heber City Council voted 5-0 on Aug. 18, 2026 to adopt a smaller property tax increase than it had proposed. Council Member Yvonne Barney's motion approved Resolution 2026-18 "adopting a 4.2% certified tax rate instead of 4.8%" based on the Heber Light & Power dividend, according to the approved minutes. Council Member Aaron Cheatwood seconded. [1]
Council members Barney, Cheatwood, Mike Johnston, Sid Ostergaard and Morgan Murdock voted yes. [1]
How the proposal changed
A packet for the council's May 9, 2026 budget workshop estimated the proposed increase at about $174,000 in added revenue, about 5.20%. It listed current property tax revenue of $3,347,780 and proposed revenue of $3,521,780. [2]
At the Aug. 5 Truth in Taxation hearing, Finance Director Sara Nagel said an average home valued at $850,000 would pay about $16 more per year in property taxes, according to the approved minutes. Those figures describe the proposal, not the smaller increase adopted later. [3]
On Aug. 18, Nagel read the required statement on the proposed property tax increase. The minutes describe the proposal as 4.8%. [1]
The dividend discussion
Mayor Heidi Franco asked the council to consider a lower increase "based on the dividend received by Heber Light and Power (HL&P)," which would go toward the budget increase the city needed, the minutes say. [1]
Johnston "pointed out the deficit caused by the lack of dividends received by HL&P over the past four years," the minutes say, and said a dividend should go to replenish the city's reserve fund. Cheatwood said he felt the dividend could make up the difference. [1]
During public comment, former Council Member Scott Phillips said everyone would like to see a lower power bill rather than a dividend to the city. [1]
The budget
The council then approved Resolution 2026-20, the final fiscal 2026-2027 budget, 5-0, on Cheatwood's motion and Ostergaard's second. The motion reflected the 4.2% rate and directed staff to make up the difference by adjusting all of the proportional revenues throughout the rest of the budget. [1]
The minutes record the correct amount for the city's Community Reinvestment Agency fund as $370,000. [1]
The 4.2% and 4.8% figures are increases described in the minutes, not tax rates on property value. The $174,000 and $16 figures describe earlier proposals, not the adopted increase. The Ledger could not open the city's August tax impact schedule or the signed resolutions.
Sources
- Heber City Council · Aug. 18, 2026 approved minutes utah.gov
- Heber City Council · May 9, 2026 budget workshop packet utah.gov
- Heber City Council · Aug. 5, 2026 approved minutes (Truth in Taxation hearing) utah.gov
Reporting by The Utah Ledger from the public records above. AI-assisted; paragraphs link to their sources.
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