Centerville tentatively adopts FY2027 budget after HB236 disclosures; staff proposes 15.5% property‑tax increase

Centerville’s City Council moved forward with its FY2027 budget process on May 5, adopting a set of resolutions required by recent changes to Utah’s truth‑and‑taxation law and tentatively approving a budget that includes a proposed property‑tax increase.

Brent, the city’s budget officer, told the council the tentative budget as presented includes a property‑tax increase that would raise an estimated $361,640. “We are identifying certain areas within the budget that increased and that the property‑tax increase would fund,” he said, naming a police officer and related equipment, South Davis Metro Fire assessments and other operational needs.

The tentative rate change staff presented would move the city’s property‑tax rate from about 0.0012 to roughly 0.001386 — an estimated 15.5% increase on Centerville’s portion of the tax bill. On the example used in staff materials, the change would increase the average Centerville homeowner’s city portion of the tax bill by about $59.61 a year.

Why separate actions tonight

Council staff and Lisa, the city attorney/finance staff working on compliance, said House Bill 236 (HB236) requires additional, clearly separated steps in the calendar: a public statement by the budget officer that the tentative budget proposes a tax increase; presentation of a separate tax‑impact schedule showing approximate revenue, percentage change and affected line items; and a distinct tentative‑budget hearing and resolution. Lisa said the city had split what used to be a single agenda item into four to make the documentation explicit and to create discrete public records for the Utah State Tax Commission.

Council debate and where the money would go

The council’s discussion focused less on the mechanics of disclosure than on which specific budget increases the proposed property‑tax revenue would fund. Staff listed eight priority items they expected the proposed increase to cover — most notably one additional police officer and related patrol equipment (about $180,000 of the change) and the city’s required increase to the South Davis Metro Fire assessment — but some councilmembers pressed for a wider accounting.

“Why eight of 46?” Councilman Bangerter asked, noting staff’s packet showed dozens of line‑item increases above typical cost‑of‑living adjustments. He urged tighter belt‑squeezing and more time for the council to propose swaps before the interim budget is adopted in June. Brent said the eight items were staff recommendations and that sales taxes and fund balance will also cover other increases; he emphasized council retains authority to change the interim budget next month.

Council actions and next steps

The council adopted resolution 2026‑09 to record that the budget officer had fulfilled the statutory obligation to state on the record that the tentative budget proposes a property‑tax increase (vote recorded 4–0). It then adopted resolution 2026‑10 approving the tax‑impact schedule (vote recorded 3–1). Finally, the council tentatively adopted the FY2027 budget by approving resolution 2026‑11 and set the final public hearing for June 2 at 7 p.m. (tentative budget approval vote recorded 3–1).

The budget remains subject to revision. Staff urged residents and councilmembers to submit proposed line‑item changes in writing so staff can model the fiscal impact before the interim budget vote. The council also directed staff to schedule an open‑house information session for residents to review the property‑tax and utility impacts before the June 2 hearing.

What the proposal would fund

Staff said the proposed additional $361,640 would be used in part for:
- Police operations and a new patrol vehicle (largest single item identified).
- Increased assessment costs for South Davis Metro Fire.
- Attorney and court support, administration staffing and an intern, street maintenance and minor trail upkeep.

Staff noted other increases will be covered by higher sales‑tax estimates (about $100,000) and by using available fund balance; the property‑tax increase is intended to cover those core ongoing expenses that are difficult to address with one‑time funds.

Timeline and transparency

Staff said they will receive final certified figures from Davis County in early June; the council’s May actions were intended to create clear, separate records that demonstrate statutory compliance and to give the public a more usable tax‑impact schedule than has been standard practice in prior years.

The city is accepting public comment ahead of June 2; councilmembers requested proposed changes submitted in writing in advance so staff can prepare fiscal comparisons for the interim‑budget meeting.

(Resolution references: 2026‑09, 2026‑10, 2026‑11.)

— Reporting by the Centerville City Council meeting on May 5, 2026.