June 2024 Ivins City Council Update
Mike Scott, Council Member
Yes I Know Taxes Is A Four Letter Word
At the last City Council meeting I uttered the unspeakable… the unthinkable: Let’s consider a property tax increase. If my goal was to make everyone in Ivins mad at me, I mean everyone, then mission accomplished. But once your blood pressure drops back into a normal range, please consider my reasons. Here is what I presented at the meeting. I would like to get your feedback. Please email me at mike@MikeScott4Ivins.com
Part 1: Property Taxes: How Does Ivins Compare?
- Ivins has not increased its property tax rate since 2010.
- In 2010, only 45% of the cities in Utah had higher tax rates than Ivins.
- The Ivins tax rate was higher than 55% of the cities in the state in 2010.
- Last year, 72% of the cities in the state had higher tax rates than Ivins.
- More cities had higher tax rates because they have been raising rates while Ivins has not.
- The Utah Taxpayer’s Association says about 60 cities and towns raise property taxes each year. That’s about 25% of the cities and towns in the state.
Part 2: Property Taxes & General Fund Expenses
Ivins property taxes increased 72% since 2010 because of new taxes from new construction. That fits closely with a population increase of 70% in the same period.
With no increase in the tax rate since 2010, taxes did not increase to adjust for inflation. It is reasonable to expect the City’s costs to increase for three reasons: Population growth, inflation, and new or improved City services. Higher costs from population growth are covered by taxes from new construction. Increasing sales and room tax revenue helps fund new and improved City services. Higher costs due to inflation should be covered by property tax increases.
Population growth plus inflation increased 122% since 2010. But the City’s General Fund expenses increased by 148%. Why so high? General fund expenses increased faster than population growth plus inflation because the City added services since 2010. Here are a few examples: Fire Lake Park maintenance began in 2017 ($10,025 a year), Suntran began in 2013 ($112,000 a year), School SRO costs began in 2013 ($75,602 a year), The Police Department has increased patrol capability and investigations, and the biggest cost increase is because our Fire Department has changed from volunteer-oriented to full-time personnel.
Part 3: Public Safety
The Ivins Public Safety budget (Police, Fire, EMS) is $3.5 million for 2025. That’s after deducting revenue from ambulance services and wildlands reimbursem*nt.
Public Safety costs increased 164% since 2013. Increases in population and inflation would have increased costs 107%. Costs tracked well with population and inflation increases until two years ago. Costs are $760,000 higher mostly because both departments have improved and added services.
We can’t fill that $760,000 gap with a property tax increase because it would be a 36% increase. But we should show support for our Public Safety needs with at least modest tax increases.
Part 4: What Impact Would A Tax Increase have?
Inflation last year (CPI Western Region) was 3.4%. If we had increased the property tax rate to adjust for the impact of inflation last year. It would add $12.64 to the tax bill on a home valued at $750,000. It would increase the City’s property tax collections by just over $71,000. That increase would still leave the Ivins tax rate lower than 68% of the cities in Utah.
All cities:
Average increase = 25.6%
Median increase = 11.5%
Part 5: Think Ahead
We should maximize our General Fund reserve. That’s our safety net. We would need to add $700,000 to reach the 35% reserve allowed by the state.
We list 32 projects in addition to 2025 projects in the 5-year capital plan for $35 million. Taking out $11 million for the regional park, and $9.8 million for secondary water, leaves $14 million. Using 2025 as an example, 40% of the cost is paid from the Capital Projects fund. Based on that, we need $1 million a year. Hopefully that comes from increased sales/use tax and room tax.
Regional Park: The estimated cost is over $11 million. The maximum impact fees we can apply to it is $2.5million. Redo the impact study to give this park all fund allocation. (Note: This change may not help a lot. The fund is budgeted to have just $1.8 million at the end of 2025.)
A ladder truck will likely cost Ivins more than $1million. Our impact study is out of date (2021) showing the Ivins share of a ladder truck at $500,000 and the development of a new fire station. Update the study, ladder truck allocation, and decide yes/no on a new fire station.
Our utility bills include money to replace our culinary water lines, storm drains, and sewer lines. There is no “utility” bill for roads. Roads need to be replaced after about 50 years. The cost today is over $80 million. Less than 15% of our roads are “regional” roads that would qualify for grants. We should already be setting aside close to $1 million a year.
Ivins Animal Shelter. The budget includes $5,000 for some HVAC work, internal redesign, and changes to the play area. The shelter is overdue for more substantial expansion and redesign. Fund a study to determine cost and timing and add to 5-year capital plan.
We don’t have a plan to landscape Hwy 91, bury Hwy 91 power lines, add recreation amenities like pickleball, etc. Determine what to add to the capital plan and timing.
The easiest thing for us to do is nothing. But it is important to act on these issues now so we do not leave future city councils and residents with insufficient resources to keep Ivins not only viable but thriving.
More City Information
I try to keep these articles relatively concise. Not doing too well at that. It’s frustrating because there’s so much to discuss. So, please email me at Mike@MikeScott4Ivins.com for more information about these and other Ivins issues. Also, please tell me what issues in Ivins matter to you. Visit my website at www.MikeScott4Ivins.com for regular updates and now you can also add your comments to my articles.
