Parowan adopts balanced FY2026–27 budget, keeps property‑tax rate unchanged

Parowan — The Parowan City Council voted June 11 to adopt the fiscal year 2026–27 budget after a staff presentation characterizing the year as a “year of grants.” City manager Dan Jessen told the council the proposed budget is balanced and contains about $10.5 million in grant funding and roughly $8.6 million in additional borrowing tied to capital projects.

Jessen said the spike in the city’s total budget is driven largely by one‑time, grant‑funded projects and bonding for multi‑year infrastructure work, and that the city plans to manage those funds conservatively. “This is the year of grants. Our budget is balanced. The city is well managed and fiscally sound,” Jessen said.

Why it matters: Council members and staff said the combination of grants and strategic borrowing will allow the city to complete long‑deferred projects — including water, bridge and airport work — without a property‑tax increase. Jessen noted that while the ledger will swell this year because one‑time items are budgeted in full, the underlying operating budget remains restrained.

Key details: Staff presented revenue and fund‑balance slides showing the general‑fund unassigned balance remains between the statutory upper and lower limits. Sales‑tax receipts have trended higher, driven by recent commercial development, and the county auditor’s new‑growth estimate for property tax arrived after the budget was produced. Jessen told the council the budget does not include any property‑tax rate increase.

Personnel and operating items: The budget includes modest employee cost‑of‑living adjustments and step increases; Jessen said COLA metrics were tied to the URS cost‑of‑living index and typical step increases would be small. The budget also carries funding for airport improvements, fire‑department needs including operating grant applications, two well generators (one budgeted out of pocket with pursuit of a second via grant), and several impact‑fee studies.

Formal action and vote: The council adopted the auditor‑certified municipal tax rate (resolution 2026‑09) and then adopted the FY2026–27 budget (resolution 2026‑10) by roll call votes. The record shows the motions carried with the council voting in favor during roll call.

What’s next: Staff said they will monitor carryover on multi‑year projects and amend the budget as necessary to capture work that extends slightly into the next fiscal year. A notice explaining bond plans and funding impacts will be distributed to customers for transparency.

The council adjourned the budget portion of the meeting after adopting the resolutions and moved on to other agenda items.