By Myrna Trauntvein
TN Correspondent
The Nephi City Fiscal Year (FY) 2027 Tentative Budget included a property tax impact schedule both considering a property tax increase and one without. “Nephi City will consider an increase to its property tax rate from 0.000504 to 0.001073 (estimated) to generate an additional $523,000,” said Seth Atkinson, city administrator. “The following information is intended to provide decision makers and the public with an explanation of how the city’s operations would be affected if the proposed property tax increase is adopted.” Nephi City’s Current Property Tax Rate is 0.000504, he said. Nephi City Current Property Tax Revenue is $463,625. The Proposed Revenue with Tax Change would be $986,625. “The approximate dollar amount of additional ad valorem tax revenue generated by the proposed tax increase would be $523,000,” said Atkinson. “The approximate percentage increase in tax revenue that is based on the proposed tax rate increase would be 112.81 percent.” The estimated increase to a primary residence of $450,000 would be $140.83 and the estimated increase to a business valued at $450,000 would be $256.05. “The approximate percentage increase to the amount of property taxes paid on an average residence per year as a result of the proposed tax rate increase is 5.94 percent,” Atkinson said. “The approximate percentage increase to the amount of property taxes paid on an average commercial property per year as a result of the proposed tax rate increase is 5.94 percent.” The Affected Departments/Funds for the Police Department Budget would be as property taxes for the proposed budget the amount of $1,018,850; the budget without the tax change would be $495,850 for a budget change of $523,000. Rental Income Revenue for the proposed budget would be $285,000, for the budget without the tax change, $10,000 creating a budget change of $275,000. “The Local Building Authority Lease revenue for the proposed budget would be $798,000, without a tax change it would be $0.00, and with a budget change would be $798,000,” said Atkinson. “The bond payment would be proposed as $798,000, without the tax change would be at $0.00 and with the budget change would be $798,000.” “If the property tax increase were to be approved, the police department would have the necessary funds to make a lease payment to the city’s Local Building Authority,” said Atkinson. “The Local Building Authority would, in turn, have the revenue to make a bond payment for a bond issued to construct a new police station of approximately $15,000,000 and potentially a new patrol officer.” The total General Fund change would be $798,000 and the total General Fund change from a property tax increase would be $523,000.
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