Orem council approves Spring Hollow care center rezone 4-2, continues autism-community subdivision, and advances $211 million budget with a $450,000 property tax increase
May 12, 2026, 3:00 p.m. · 56 North State Street, Orem
The Orem City Council rezoned about one acre at 92 South 800 East from R-8 to C-1, tied to a development agreement limiting it to assisted living, by a 4-2 vote. It continued a request to rezone 2.9 acres on Geneva Road for 44 twin homes so the applicant can restore a public road to Geneva Road, accepted a $211 million tentative FY2027 budget that includes a $450,000 property tax increase for two police officers, and created a Public Safety Special Revenue Fund. The council also vacated a sliver of 1000 South for the Home Depot project and approved CARE tax awards.
From the approved minutes. Updated October 14, 2026.
Decisions at a glance
Agenda, item by item
Presentation
UTA briefing: governance, FrontRunner 2X and ridership
Discussed
UTA Executive Director Jay Fox said a part-time seven-member Transit Commission replaces three full-time trustees July 1 under Senate Bill 197. UTA is seeking federal grants to expand double-tracking on FrontRunner to 50%, enabling 15-minute peak service, at about $3 billion with a requested 74% federal share, and hopes to finish by 2030 ahead of the 2034 Olympics. UVX carries 2 million trips a year, Route 850 nearly 700,000 and Orem Central Station nearly 300,000 boardings. UTA also described its on-demand microtransit service.
- Budget$3000.0 million
Presentation
Legislative report from Representative Val Peterson
Discussed
Rep. Val Peterson, House Executive Appropriations chair, described a tight state budget year with proposed 5% cuts that mostly finalized near 2.5%, a new bill (HB 342) setting approval tiers for large grants ($10 million governor; $10 to $25 million Executive Appropriations Committee; above $25 million full legislature), and interim study of rural health funding and school district splits.
Presentation
UTOPIA fiber report
Discussed
Executive Director Roger Timmerman said UTOPIA's legacy Phase 1 bonds ($185 to $205 million, restructured in 2008, maturing 2040) require annual payments from the 11 founding cities, while the later UIA network carries no municipal debt. It added over 10,000 subscribers to exceed 92,000, with monthly revenue near $5.5 million. Orem's 22% share of legacy debt means its annual reimbursement check rises about $70,000 this year. UTOPIA estimated the network saves Orem households over $3 million a year in internet costs.
- Payment$70,000 to UTOPIA
Budget
General Fund sustainability follow-up
Discussed
Consultants Fred Philpot and Laura Lewis demonstrated a financial pro forma model. Orem's share of a resident's total property tax bill fell from 17% in 2005 to 9% in 2025. The model assumes 3% sales tax growth (actual growth was flat 2023-2025), 6.41% general expense growth and 10% public safety growth, with a $20 million unrestricted fund balance target. A transportation utility fee would start at $250,000 and scale to $500,000 in the model, still leaving a structural deficit. Council Member Millett raised affordability for seniors on fixed incomes and the timing of compensation discussions; Lambson, Killpack and Gale praised the tool.
General plan
Heart of Downtown master plan
Discussed
Community Development Director Gary McGinn presented the final 123-page master plan for the SCERA Park and SCERA Center corridor, estimated at $50 million in six independent phases: a 720 South festival street ($7.5 million), an ice and roller ribbon ($15 million), boutique lodging with a parking structure, artisan incubators, event field improvements with a carousel ($5 million), and parking relocation. Council Member Gale asked how to reassure residents given the budget deficit discussion; staff said the plan does not raise property taxes or commit city dollars and relies on grants and other non-General Fund sources. Staff said adoption as a general plan amendment was on the regular session's consent agenda; the minutes' consent list does not show it.
- Budget$50.0 million
City code
Code and parking enforcement overhaul
Discussed
Assistant City Attorney Aaron McKnight presented standardized enforcement matrices, a renamed 'Code Enforcement Team,' rewritten warning letters, and parking warnings tracked per infraction type, with expired-registration tickets dismissed if registration is renewed within 14 days. Code enforcement follows investigation within one business day, a warning, a $50 citation per violation, then an administrative hearing with $50 daily fines. Council Member Millett asked to give reporting neighbors status updates without GRAMA requests. The item continues at the next work session.
Presentation
Recognitions and reports
Discussed
The council heard the Giving Machines wrap-up (over $1.5 million raised at the Orem machines, 70% restricted to Utah), a Building Safety Awareness Month briefing, a National Police Week message from Chief BJ Robinson, a National Public Works Week report (a ribbon cutting May 14 for the nearly $100 million Deer Creek intake project) and a Youth Council annual report.
Appointment
Consent: minutes and Historic Preservation Advisory Commission appointment
Approved · 6-0
The council approved minutes of April 28 and May 5, 2026 and the appointment of Rod Erickson to the Historic Preservation Advisory Commission.
Development
Vacation of 0.016-acre portion of 1000 South right-of-way ending at 590 East
Approved · 6-0
Planning Manager Jared Hall presented the petition of the Woodbury Group to vacate a small piece of the 1000 South right-of-way surrounded by land owned by the Woodbury Group and University Place, needed to finalize the plat for the new Home Depot. Hall said the area is bordered entirely by commercial shopping center land and neighbors keep full access on 1000 South. No one spoke.
- Petitioner: Woodbury Group
- Area: 0.016 acre (staff also referred to 0.16 acre)
Zoning
Rezone about 1.0 acre at 92 South 800 East from R-8 to C-1 with development agreement (Spring Hollow Care Center)
Approved with conditions · 4-2
The Spring Hollow residential care center has operated since a 1997 conditional use permit and houses 32 residents in two buildings, more than the current eight-resident limit in residential zones, so it is a legal nonconforming use that cannot expand. The owners proposed a two-story addition connecting the buildings, adding 18 memory care beds (56% more), a central kitchen and dining rooms, and sought C-1 zoning bound by a recorded development agreement limiting the use to assisted living for people 60 and older. Terms include a 30-foot height cap, mature Blue Atlas Cedar screening on 20-foot centers along the shared fence in place of the Planning Commission's frosted second-story windows, quiet HVAC units on the north side facing a church lot, 21 parking stalls (20 required), and Medicaid-subsidized residents. At the hearing a neighbor questioned spot zoning and what a future buyer could do; another resident whose property abuts the site objected that C-1 allows up to 48 feet and commercial equipment noise; a written comment questioned quality of care and privacy. City Attorney Steve Earl noted the elevation drawings were not attached to the agreement, so the council paused the item while exhibits were completed and returned later in the evening. The final agreement caps height at 30 feet and limits the facility to Level II memory care residents who cannot drive. Council Members Millett and Muhlestein opposed, saying planning should bring nonconforming uses toward surrounding zoning and questioning a commercial label in a low-density area; staff noted a planned development zone requires three acres.
- Applicant: Julie Smith, Spring Hollow Care Center
- Acres: about 1.0
- Current zone to proposed: R-8 to C-1 with development agreement
- Beds: 32 to 50 (18 new memory care beds)
- Planning Commission: recommended frosted second-story windows
Zoning
Rezone 1875 South Geneva Road from OS-5 to PRD and amend Westerly Way site plan (Utah Autism Academy)
Continued · 6-0
The Utah Autism Academy bought land with an approved 25-cottage Farm Haven plan plus an adjacent 2.9-acre OS-5 strip and proposed Westerly Way, 44 single-level twin homes at six units per acre, replacing the previously approved public road to Geneva Road with a gated emergency-only access. The Planning Commission recommended denial unless the Geneva Road public connection was restored. Traffic would exit east via 800 West through the Payton Crossing subdivision to 2000 South, near a rail crossing, joined by the adjacent 54-unit Whitestone subdivision, whose easternmost exit onto 2000 South is right-in, right-out. Academy president Tricia Nelson said the new community center sits on the former road corridor and that UDOT restricts new connections on Geneva Road; she described an 'autism-intentional' community under a homeowners association. Nine residents opposed removing the Geneva Road connection, citing child safety on 800 West, emergency access, density placement and doubts about fair-housing-compliant restrictions. Council members expressed support for the academy's mission but not for sending all traffic down 800 West; Council Member Millett suggested moving the detention basin and parking to open a Geneva Road connection. At the mayor's suggestion, the applicant agreed to a continuance to rework access, with no date set.
- Applicant: Utah Autism Academy (Tricia Nelson, president)
- Units: 44 twin homes (previously 25 cottages) at six per acre
- Acres: 2.9 acre strip added to the Farm Haven parcel
- Current zone to proposed: OS-5 to PRD
- Planning Commission: recommended denial unless the public road to Geneva Road is restored
Budget
CARE tax awards for fiscal year 2026-2027
Approved · 6-0
The council adopted the ordinance approving the CARE tax awards in Exhibit A. Council Member Mecham called the tax a major structural strength supporting early-stage funding for arts and recreation groups.
Budget
Public Safety Special Revenue Fund and statement of intent to dedicate property tax
Approved · 6-0
Finance Director Brandon Nelson presented a resolution under Utah Code 10-6-133.4 creating the fund and stating the council's intent to dedicate the city's general operations property tax levy to it, ahead of a June 9 hearing. The existing 'City of Orem Property Tax' line on bills would go to zero and a 'City of Orem Public Safety Tax' line would reflect about $6.5 to $8 million of a roughly $38 million public safety budget. Nelson and the mayor said it is separate from any rate increase; Council Member Millett said it opens a month of public review before final adoption.
- Budget$6.50 million
Taxes and fees
Statement of intent: tentative budget includes property tax rate increase
No action
Mr. Nelson stated for the record, as state law requires, that the tentative FY2026-2027 budget includes a proposed property tax increase of $450,000.
- Fee$450,000
Budget
Public hearing: FY 2026-2027 tentative budget
Approved · 6-0
Nelson presented a $211 million gross tentative budget across all funds (excluding the RDA and lighting district), up $34 million mainly because a $25 million General Fund transfer to the new Public Safety Fund is recorded twice; without it the total would be $186 million. The General Fund is projected to rise from $52.9 million to $55.4 million, with sales and franchise taxes providing $43 million. Sales tax is projected at $34.7 million, up 3%. The budget includes $855,000 for fleet replacements, the Information Technology fund growing $800,000 to $5.05 million, and wastewater fees driven by federal nutrient mandates. Council members discussed the need for future code enforcement staff. No one spoke. The council accepted the tentative budget and set a June 9, 2026 hearing, plus an August hearing on the property tax increase.
- Budget$211.0 million
- Budget$25.0 million
- Budget$855,000
Taxes and fees
Property tax impact schedule
Approved · 6-0
The council approved the state-required resolution on the proposed increase. The $450,000 would raise property tax revenue about 7.08%, cost the owner of a median $513,000 primary home about $11.85 a year (roughly $0.99 a month) and a business just over $2 a month, and is designated to hire two new police officers and buy their equipment and vehicles. Figures use the 2025 certified rate since the county certifies the 2026 rate June 1.
- Fee$450,000
Budget
RDA and Lighting District tentative budgets
Approved · 6-0
Sitting as the Redevelopment Agency, the council accepted its FY2026-2027 tentative budget; Orem rebates 90% of tax increment from the University Place community development area, about $1.8 million in FY2027 versus nearly $1.7 million the prior year, with the remaining 10% split between future projects and General Fund administration. Sitting as the Special Service Lighting District, it accepted a budget raising the household streetlight fee from $3.28 to $3.36 a month (2.4%) and using reserves for a $420,000 pole replacement. Final hearings were set for June 9.
- Payment$1.80 million to University Place CDA
- Budget$420,000
What residents said
Traffic on 800 WestEmergency accessHeight and privacy at Spring HollowSpot zoningShort-term rentalsProperty tax increase
Two residents asked for short-term rentals to be allowed, citing large family reunions and caregiving, and two founders of a neighborhood safety alert app asked for a police acknowledgment needed for app store approval. At the Spring Hollow hearing a neighbor and a written commenter raised spot zoning, height, noise, privacy and beds. At the Geneva Road hearing nine residents, mostly from the Payton Crossing area, opposed removing the public road to Geneva Road, citing child safety on 800 West, emergency access and traffic at 2000 South.