Interlaken council advances tentative FY2027 budget proposing 5% county tax increase and 20% water‑rate hike

The Interlaken Town Council reviewed a draft FY2027 budget May 5 that would raise the town’s share of county property tax by 5% and increase base water rates by 20% to strengthen the town’s water reserves.

Staff presented the plan and said the 5% tax increase is projected to generate about $226,000 and that the town would direct roughly $72,000 of that toward the road reserve while boosting water reserves toward a safer balance. “We’re proposing a 5% Wasatch County tax increase,” staff said, and later added: “Again, we’re asking now we’re asking for 20% increase in water rates.” The presentation showed connected‑lot water fees rising from $115 to $138 and empty‑lot fees from $96 to $115.

Officials said the council prioritized water reserves over road work because water system failures are harder to delay. Staff said the town’s water reserves stood at about $322,000 and that the town must build reserves to cover unexpected emergency repairs to aging water infrastructure.

The council discussed alternatives and grant prospects; staff said Interlaken’s median income likely places it above state thresholds for certain grants, limiting eligibility. The council also outlined next steps: the tentative budget is a live document that will go to a public hearing and may be adjusted before final adoption. Staff said the council intended to adopt the budget tentatively that evening; the transcript shows a motion to proceed but does not record a roll‑call vote for final tentative adoption.

The council director said the town uses cash accounting for transparency and presented a line‑by‑line summary of revenues and expenses; staff noted the draft projects a total fund balance above $1 million at the end of next fiscal year assuming no emergency expenditures.

A public hearing and follow‑up council meetings were scheduled so residents can review details and ask questions before any final vote.