Council weighs first property tax increase since 2009 at budget retreat
February 11, 2021, 4:35 p.m. Feb. 11; 8:30 a.m. Feb. 12 · Fox Hollow Golf Course, 1400 N. 200 East
At a two-day budget workshop at Fox Hollow Golf Course, American Fork City Council members and department heads reviewed projected growth to about 64,500 residents in 20 years and the staff, space and equipment it will require. Several council members said a property tax increase, the first since 2009, must be seriously considered, while Mayor Brad Frost opposed raising taxes during the pandemic. Staff reported $8.5 million in Fire Station 52 bonds, $25.9 million in state water funding and a $10 million pressurized irrigation meter project.
From the approved minutes.
Decisions at a glance
| Item | Result |
|---|---|
| FY2021 capital projects and budget status | Discussed |
| Property tax and utility cost comparison | Discussed |
| 5-10-20 year resource outlook and department needs | Discussed |
| FY2022 capital outlook and strategic goals | Discussed |
Agenda, item by item
Item 1 · Presentation
Community survey results
Discussed
Community Services Director Camden Bird reported 91% of respondents were happy with their quality of life. Top issues were safety, managing growth and roads (the first year roads were not the top issue). On new questions, 57% favored city fiber internet and 38% opposed; 53% opposed a road fee or property tax for roads and 41% favored it.
Item 2 · Budget
FY2021 capital projects and budget status
Discussed
Finance Director Anna Montoya reported May 2020 bonds of $8.5 million for Fire Station 52 (land negotiations underway), $25.9 million secured from the Board of Water Resources for water line projects (financing of $22 million secured November 2020; 600 East work underway), a pressurized irrigation meter project estimated at $10 million with $3 million budgeted this year, sales and property tax revenue above expectations, the PARC tax fund up 19% giving $829,431 for May 2021 awards, and the final payment on the 2011 Station 51 bonds due June 2021. If the PARC tax is not renewed the city would have to subsidize $350,000 a year in Art Dye Park bond payments from 2024. A traffic signal at 620 South and 600 East will be paid with impact fees. TSSD phosphate limits could require a $12 million sewer plant change.
- Bond$8.50 million
- Bond$25.9 million to Utah Board of Water Resources
- Budget$10.0 million
- Grant$1.50 million
- Capital projects revenue: $500,000 property tax, about $1.2 million Class B/C road funds, about $900,000 transportation sales tax, plus grants for 200 South bike/pedestrian path and 700 North connection
- Fire Station 52 bond annual debt service $580,000
Item 3 · Taxes and fees
Property tax and utility cost comparison
Discussed
City Administrator David Bunker compared property tax rates and utility bills across Utah County cities; American Fork's combined annual cost was mid-pack. The city last raised property taxes in 2009; a 1% increase would bring about $250,000. Councilmembers Shelton and Barnes said an increase must be seriously considered; Councilmember Taylor favored at least pegging the rate; Mayor Frost said taxes should not be raised during a pandemic. A truth-in-taxation hearing would be needed in summer for a November effective date.
Item 4 · Other
5-10-20 year resource outlook and department needs
Discussed
Population was projected at 42,700 in five years, 54,000 in ten and 64,500 in twenty, requiring roughly 474 full-time employees versus 258 now. Department heads described needs: fire (more staff, land for Station 53), police (110 officers in 20 years, office and evidence space, possible mental health advocate), public works (expansion of a 50-year-old shop, possibly buying adjacent homes), fitness center (outgrown; 48% of members are nonresidents; a possible school district partnership to convert five junior high tennis courts into 16-18 pickleball courts), parks (4.4 acres per 1,000 residents against a 6.25 goal), cemetery (about 20 years of space left), planning, IT and administration.
Item 5 · Budget
FY2022 capital outlook and strategic goals
Discussed
Requested FY2022 capital needs included the annual road plan, 200 South improvements, pressurized irrigation meters, vehicle replacement and growth-related facilities; options included raising the tax rate, a CRA in the TOD zone, impact fees or debt. Goals kept: property tax evaluation, fiber, 200 South construction (road 95% designed, funding by CRA, bonding or impact fees to be decided; a CRA proposal to Alpine School District within 45 days), PI metering plan and water reuse with TSSD, and finishing Art Dye Park. Councilmembers Carroll and Shelton added securing land for Fire Station 53.