You will soon be receiving a notice from the Iron County Auditor that Brian Head Town is going through a Truth in Taxation process. We would like to take an opportunity to explain what is being proposed.

The “Notice of Property Valuation and Tax Changes” that you will receive from the County Auditor identifies a number of “Taxing Entities” such as the county, school district, Brian Head, etc. What is not shown is that of the Brian Head portion, over one third is used to pay down Debt Service for General Obligation Bonds (debt committed by a vote of the citizens).

The remaining amount is General Fund Revenue which pays for the police, fire, parks, snow removal, street maintenance, and administrative services provided by the Town. General fund money for 2007 was $558,648, 2008 was $580,984, and 2009 was $619,975. General property tax revenue grows from new construction, property annexed into the Town, or a tax rate increase. According to our research the last property tax increase occurred 16 years ago in 1993.

During the past year the Town has taken aggressive steps to operate within an ever shrinking revenue stream. Employee wages have been frozen and spending for operation and maintenance expenses have been curtailed while the Town continues to grow. In an effort to limit the recent utility rates increase, some of the shared costs such as personnel and equipment have been transferred from the utility departments (that have their own budgets) to the General Fund.

As we’ve looked for ways to balance the budget we recognized an opportunity to shift $106,000 from the Debt Service where it is no longer needed over to the General Fund. In order to shift this money the Town is required by State Law to go through a Truth in Taxation process to notify the public.

Utah law provides that when property values decrease (as has happened this year) the tax rate increases to maintain a consistent property tax revenue stream to the Town. When you receive the notice from the County Auditor you will see it identified as a tax increase with a higher tax rate. In spite of this higher tax rate the amount of money that you will pay should result in nearly the same amount as last year. If this shift is not done, it would equate to an approximate $12.00 reduction in tax obligation for every $100,000 of property value.

The Town will be following the steps of the Truth in Taxation process which includes a public hearing where the public may speak on the subject. Please watch for the notice in the Public Notice section of the Cedar City Daily News and on the State notice website: http://www.utah.gov/pmn/index.html

Please understand that while property values have reduced in the last year, the tax rate will be adjusted to make the Town revenue neutral. We ask for your understanding and support as the Town continues working to meet your needs within a budget that is continually being stretched thinner and thinner.

Sincerely,

Bryce Haderlie Brian Head Town Manager

• Notice of Proposed Tax Increase and Public Hearing Information (PDF)