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 story: Auditing Heber City
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
- Heber City Council · May 9, 2026 budget workshop packet
- Heber City Council · Aug. 5, 2026 approved minutes (Truth in Taxation hearing)
Reporting by The Utah Ledger from the public records above. AI-assisted, checked against those records.