Kaysville staff outline budget that would use reserves and a 33.95% truth‑in‑taxation rate to close a $3.5 million gap

Kaysville staff presented a proposed budget that seeks to close roughly a $3.5 million shortfall through a combination of one‑time draws on fund balances, shifting costs between funds and a proposed truth‑in‑taxation rate of 33.95%. The shortfall, staff said, stems in part from an expected truth‑in‑taxation increase that did not materialize last year and left the city with an estimated $1.7 million hole in ongoing revenues.

"We kind of started in a hole this year, 32% — what was budgeted this year did not come in," Jason, the city manager, told council as he explained the baseline assumptions behind the draft budget. He said staff pared the initial gap through line‑item reductions and by identifying one‑time fund balances that could be used to avoid larger immediate cuts.

The staff proposal uses municipal building authority and debt‑service fund balances, public‑safety impact fees and a contemplated $1 million draw from the general fund reserve as part of the gap‑closing package. Jason said the mix of one‑time funds and a proposed tax rate of 33.95% would support new positions the city is seeking to add, including a deputy fire chief and additional human‑resources support, and would keep previously identified capital work on track.

Why it matters: staff framed the proposal as a near‑term solution that limits layoffs and maintains service levels, while underscoring the need to clearly communicate the change to residents. "This is not a double‑tax year situation," Jason said, noting the city’s tax rate had declined last year and the proposed figure reflects restoring revenue the city did not receive previously.

Council discussion highlighted tradeoffs. Several council members questioned whether new recurring costs — such as elected‑official health insurance, which staff estimated at about $141,000 a year if all officials enrolled in family plans — should be added in a year with constrained revenues. Council Member Hunt said she would be “more comfortable moving it to a different year or not doing it at all” given the fiscal strain.

What’s next: staff scheduled the next budget work session for April 17 to review enterprise funds and said a tentative budget and Truth‑in‑Taxation hearing would follow in May and June, with final adoption later in the summer. Jason told council staff will circulate the full packet and continue refining assumptions before the tentative budget.