Nibley council advances tentative budget with proposed $250,000 property tax increase

Nibley — City staff on May 28 told the City Council the tentative fiscal 2026–27 budget includes a proposed $250,000 increase in property-tax revenue, raising the city’s property-tax line from about $1.15 million to $1.4 million.

Justin Mahal, who presented the budget on behalf of staff, said the added revenue would primarily cover cost-of-living adjustments and a push to bring more positions toward market midpoints, plus a planned capital transfer and unavoidable contract increases. "This increase will cover the cost-of-living adjustment ... it will also cover an estimated $126,000 intentional savings rolling that money into the capital projects fund," Mahal said.

Council members pressed staff on specifics: what the package would mean for an average homeowner and whether the increase was avoidable. Mahal said an owner-occupied house at the city’s reported average market value ($495,518) would see roughly an $81.76 annual increase (about $6.80 per month) under the proposed scenario. He added the request also anticipates a sizeable fire-protection contract increase and other inflationary items that have limited flexibility.

Mayor (presiding) emphasized the broader context of county-level changes related to fire funding that might offset some city costs if a county voucher system is adopted, but staff said those intergovernmental decisions remain uncertain and the budget is being prepared on a worst-case basis.

Council adopted the required impact schedule and first-reading resolutions that incorporate the intent statement and set the truth-in-taxation hearing. The council will return to the issue at the legally required truth-in-taxation hearing (Aug. 27, 2026) before any final tax increase would be adopted.

What’s next: the council approved required public-notice resolutions for first reading and directed staff to publish the impact statement; the truth-in-taxation hearing is scheduled for Aug. 27, 2026, when the council will take final public comment and a vote.