Ephraim passes tax increase, budget with no protests, no fuss

EPHRAIM—The Ephraim City Council and city staff were prepared for a roomful of residents last week for their long-anticipated Truth-in-Taxation public hearing and passage of the 2026-27 budget.

Only three residents showed up at the meeting Wednesday, Aug. 19, and none of them made a comment.

The council approved a $45,022 increase in projected property tax revenue in the coming fiscal year compared to the last fiscal year. That translated to a 10.58 % increase over last year. To bring in the extra revenue, the city raised its tax rate 10 %, so the action boiled down to a tax as well as revenue increase.

For a typical resident, “It’s about $2 per month,” Jon Knudsen, city finance director pointed out, which may help explain the sparse turnout.

Then the council passed an overall city budget of $19.8 million, a 21.7% drop from last year’s budget of $25.3 million.

The biggest reason the budget went down is that in 2025-26, the city budgeted for, and in several cases completed, a host of capital projects. Generally, those projects are not in the budget for the next fiscal year.

The meeting adjourned after 13 minutes, which must be something of record for a public hearing on taxes and budget.

Last June, when the city started putting together its 2026-27 budget, it projected a property tax revenue increase of $59,000.

But because of a wrinkle in the Utah Truth-in-Taxation law, if it had followed its original plan, it would only have been required to advertise a revenue increase of approximately $51,500.

Under the law, jurisdictions don’t have to count “new growth”—additional tax revenue they will receive in the coming fiscal year from land and buildings that went on the rolls during the previous fiscal year. The city calculated it would be bringing in about $7,500 next year from new growth.

But when Stacey Lyon, the Sanpete County auditor, evaluated Ephraim’s property tax rolls and projections, she concluded the city would have $15,039 in property tax coming in from new growth. That enabled the city to drop its advertised property tax revenue increase to the final number of $45,022.

Under Truth-in-Taxation requirements, the calculation of how an increase will affect the average property taxpayer is based on how much taxes will go up on the average home. In Ephraim, the average home value is $415,000. On such a home, Ephraim City property taxes will go up $23.51 per year. Property tax will go up more on higher-valued homes, less on homes with a lower market value.

Under Utah property tax law, if there’s a business property and a home of about the same value, the business pays almost two times what the home pays in property tax. Under the new rates, city property tax on a $415,000 business will go up $42.75 per year.

Knudsen, the city finance director, said that because the city had based its spending plans on the $59,000 figure, it was sticking with the number. (Including new growth, the city can expect to bring in at least that much extra revenue compared to last year.)

At the council meeting, Knudsen reviewed what the city planned to do with the $59,000.

The Fire Department will get $25,000. Expenditures include a positive pressure fan, used to blow smoke and gases out of a building after a fire. The fact that the fan is battery powered means there will be no cord for people to trip on.

The department will also buy thermal camera, used to assess how hot it is inside a burning building before fire fighters decide to enter.

Finally, the department will purchase two sets of turnout gear, multi-layered pants and jackets that all fire fighters wear to protect against flames, heat and chemical exposure. Turnouts cost $3,000-$5,000 each.

Turnouts have expiration dates on them and need to be replaced by those dates, Knudsen told the council.

The Recreation Department will get $15,000 for maintenance of the skate park. Knudsen said the skate park was a $1.1 million facility, but the city only spent $27,000 on it. The rest came from grants, from the Recreation-Arts-Parks (RAP) local sale tax, and from impact fees paid by new homes and new commercial developments.

Knudsen said cracks are starting to show in the concrete surface of the skate park. The cracks could create ridges that could catch a skateboard wheel. “We’re looking to seal the cement and grind down any cracks that have ridges on them.

The remaining $19,000 will go for repairs at the All-Abilities Park near the Ephraim City Library and Canyon View Park.

The All-Abilities Park was completed in 2022, and is starting to show wear, Knudsen said. In a few spots, he said, “holes are starting to form.”

Even though there’s no visible water in Canyon View Park right now, all the drains in the park are plugged up, Knudsen said, and the Public Works Department is looking to “go through and replace those.”