Orem council adopts $211 million tentative budget with proposed property tax increase and new public safety fund
June 9, 2026, 6:00 p.m. · 56 North State Street, Orem (Council Chambers)
The council voted 6-0 on every motion to adopt a $211 million tentative fiscal 2026-27 budget that proposes raising property tax revenue by $450,000 to pay for two police officers. It also created a Public Safety Special Revenue Fund and approved city payment of a retirement contribution increase for public safety employees. A Truth in Taxation hearing is set for Aug. 27.
From the approved minutes. Updated October 14, 2026.
Decisions at a glance
Agenda, item by item
Item 5 · Budget
Resolution: city to pay Tier 2 public safety and firefighter retirement contribution increase
Approved · 6-0
The council approved a resolution for the city to cover, on behalf of employees, an increase in the Utah Retirement Systems Tier 2 hybrid employee contribution rate for public safety and firefighters, from 4.73 percent to 5.98 percent effective July 1, 2026. Strategy and Innovation Director Jennica Jones said Orem has historically paid this and that most Utah cities do. Council Member LaNae Millett supported it as a way to attract public safety staff.
- PaymentAmount not given to Utah Retirement Systems
Item 6 · Taxes and fees
Public hearing: enterprise fund transfers
Discussed
Chief Financial Officer Brandon Nelson presented the state-required report on transfers from utility funds to the general fund. The city charges its own water, sewer, street light and stormwater use to the general fund at market rates and transfers the amounts back, which he said has no net effect and is done to meet State Auditor reporting rules. Council Member Quinn Mecham noted city property accounts for about 3.7 percent of water fund expenses and 0.08 percent of sewer fund expenses. No one spoke at the hearing, and no vote was taken.
Item 7 · Budget
Public hearing: municipal officers' compensation
Approved · 6-0
Nelson presented the disclosure required by Utah Code 10-3-818 on pay for executive municipal officers in fiscal year 2026-27: all listed officers are budgeted for a 3 percent merit increase and no market increase. He said the city does not use cost-of-living adjustments and sets aside a mid-year 1 percent pool for targeted market adjustments. No one spoke at the hearing. The council adopted the compensation increases as part of the tentative budget.
Item 8 · Taxes and fees
Proposed property tax increase statement and impact schedule
Discussed
Nelson announced that the fiscal 2026-27 budget includes a property tax increase, and presented the impact schedule. Using the 2025 certified rate of 0.000603 because 2026 rates were not final until June 22, the proposed rate of about 0.000645 would raise property tax revenue from $6.4 million to about $6.864 million, a $450,000 or 7.02 percent increase. For a primary residence valued at $513,000 the estimate was $11.85 more a year (6.97 percent); for a commercial property of the same value, $27.57 (8.91 percent). The city's share is about 13 to 14 percent of a total tax bill. The $450,000 is earmarked for two new police officers with vehicles and equipment, and staff said the city is legally bound to that stated purpose.
- Fee$450,000
Item 9 · Budget
Resolution: create Public Safety Special Revenue Fund and consider dedicating the property tax levy
Approved · 6-0
The council created a Public Safety Special Revenue Fund in the fiscal 2026-27 tentative budget to hold police and fire revenues and expenses, and stated it is considering dedicating the city's entire general operations property tax levy to it. Nelson said police and fire cost just over $38.1 million in fiscal 2026 against about $8.1 million in property tax. The actual dedication cannot occur until after the Aug. 27 Truth in Taxation hearing and must be reauthorized each year. Council Member Millett amended the wording to say the council is 'considering' the dedication, and said the fund does not bind future councils. Council Member Jeff Lambson called it a foundation for long-term continuity of emergency services.
Item 10 · Budget
Public hearing: adopt fiscal year 2026-27 tentative budget
Approved · 6-0
The council adopted a $211 million tentative budget, up $35 million, of which $25 million is an accounting transfer into the new public safety fund; Council Member Mecham said the operating budget is closer to $160 million. The motion also adopted fees and charges, compensation programs, franchise, energy, telecommunications, transient room and 911 rates, and a tax rate above the certified rate, with a Truth in Taxation hearing set for Aug. 27 at 6 p.m. Utility rates for water, sewer, storm water and solid waste (a pass-through of a new Waste Management contract) rise, and fitness center class fees rise. The Transportation Utility Fee was left out and will come later as a separate budget amendment. Mecham asked the city to build a way to help low-income residents on fixed incomes and Millett suggested promoting county relief programs. No one spoke at the hearing.
- Budget$211.0 million
- Budget increase over prior year: $35 million, of which $25 million is an internal transfer
- Proposed property tax rate above the certified rate; Truth in Taxation hearing Aug. 27, 2026, 6 p.m.
What residents said
Property tax increaseUtility rate increasesLow-income and fixed-income residents
No public comment was recorded at the three public hearings.