City leaders began discussions about next year’s budget in a workshop Wednesday, May 1.
Councilmembers identified priorities for the budget back in January during the city retreat, and that conversation shaped the budget draft currently under review.
A key decision facing the council as it prepares a new budget is whether to increase property taxes and utility rates in the coming year.
Councilmembers say they’re cognizant of the stress of a rising cost of living, so they don’t want to raise taxes excessively.
Finance director Sara Nagel presented two options for how property taxes might change Wednesday night.
“We can look at it two ways,” she said. “We can say, ‘Hey, what is our fund deficit?’ and try to increase taxes just to cover that yearly deficit, or we can do maybe a more incremental, more consistent increase just based on the inflationary rate.”
If the city goes the first route, the average household will have to pay about $37 more in property taxes for the year. If Heber raises taxes based on inflation instead, that would mean an increase of around $12 for a typical household. Councilmembers will decide how to move forward at their second budget workshop on Tuesday, May 7.
Rate increases for utilities like water and sewer service are also on the table. Nagel explained the city previously decided rates will go up, but she showed results of a new study to adjust the recommended changes for each utility.
City leaders stressed raising these utility rates isn’t really optional.
“These are not nice-to-have improvements, right?” Nagel said. “This is not parks and statues and those things – this is our water infrastructure. And this is what we have to do.”
The council will break down the estimated increases for a typical household during the next budget session.
City leaders also discussed a list of upcoming capital projects, including the ongoing water line replacement project and other infrastructure improvements.
The budget draft is available on Heber City’s website.
Members of the public will be given an opportunity to comment at a public hearing sometime in June.
Heber City needs to finalize the budget before July 1, the start of the new fiscal year.
