Nephi adds about $3 a month to utility bills toward a police station

A typical Nephi utility bill will go up about $3 a month to begin paying for a new police station. The City Council approved a budget amendment and a master fee resolution on Nov. 3 that raise the transfers the city's utilities make to the general fund, according to the agenda and the meeting video. ^[1][3]

The added transfers for this fiscal year are $10,182 from water, $2,589 from sewer, $54,662 from electric, $34,392 from natural gas and $3,515 from solid waste, about $105,000 in all, to cover debt payments on a bond for a new public safety building, the hearing notice says. ^[2] No one spoke at the public hearing, and no council member voted against either measure on the video. ^[3]

A first step after the tax denial

City staff told the council that the city's utilities have long sent 8% of their gross revenue to the general fund, which pays for police, roads and parks. Staff said the city needs about $10 a month from a typical household for the bond and proposed raising about 30% of that now, through the base rate, with the rest to be decided next year. ^[3]

The plan replaces a property tax increase the State Tax Commission denied this year. Staff said the property tax route is more transparent but has many steps that can sink a request, while utility transfers are fully in the council's control but harder for residents to follow. Some council members said they wanted to look at a mix of the two for 2027, and one said the city should keep working toward hiring more officers. ^[3]

Data center talk and objections

Introducing a presentation by Buddy Rizer of Loudoun County Economic Development, a city official said Nephi is looking at a potential data center west of town and is in negotiations. ^[3] Rizer, speaking by video, said Loudoun County, Virginia, has the world's largest concentration of data centers and expects about $1.3 billion in local tax revenue this year, about 45% of its tax base, from less than 3% of its land. He told the council to run its own numbers under Utah's tax system, set measurable standards for noise and air quality, and pay attention to location, saying some Loudoun facilities ended up too close to homes. ^[3]

In public comment, a resident who said he lives near the proposed annexation area questioned whether land that far from the city could be annexed under city code, and said a zone allowing data centers and gas-fired power plants would need water the area doesn't have. Another resident said she can hear the existing industrial area about a mile from her home and that light pollution has hidden the stars. A partner in Set Square Capital, which says it is working with the city and county on the project, thanked the council for the presentation and offered to meet with residents and answer their questions. ^[3] The Planning Commission holds a hearing Nov. 11 on zoning the 677-acre Nebo South Phase 1 annexation for data centers and power plants. ^[4]

Also at the meeting

The council added two roads west of the city to its transportation master plan, as the Planning Commission recommended. Staff said one would give truck traffic from a planned agricultural processing park a route, and that being on the plan can help the city qualify for road grants. ^[1][3]

Staff also summarized a new state legislative audit of impact fees, saying it found no statistical link between impact fees and home prices but suggested cities may need to update old fee studies. Staff said Nephi's electric impact fee study probably needs an update, which could raise that fee. ^[3]