DID YOU KNOW? Truth In Taxation

 “Wait... you are considering increasing property taxes in Ivins?!”

Yes, considering is the operative word here — and you deserve to know who, what, when, where and most importantly, WHY.

We are investing in Ivins' future. For the first time since 2010, Ivins City is considering a property tax increase. Not because we want more — but because it now takes more to maintain the quality of life we all value.

This process is called Truth in Taxation, and it’s designed to do precisely what the name promises: tell the truth. Openly. Clearly. With a public hearing, so you have a voice.

First, a public hearing will be held on June 5, 2025, at Ivins City Hall, where your voice can be heard. There will also be a city-wide Talk About on June 18, 2025, where more information and data can be presented, and again, where you can be heard. A final public hearing will be held on August 14, 2025, when a decision will be made.

I want to provide some context, so let’s start with what Truth in Taxation means.

Truth in Taxation is a public hearing process that allows residents to learn about and comment on the Ivins City proposal to increase property tax revenues. It is required by Utah law if considering a change in property taxes.

Also in Utah Law is: With the exception of new growth, a taxing authority may not receive more property tax revenues than what was received the prior year. The property tax calculation does not consider inflation or other increases in providing services.

The Utah Taxpayers Association recommends that cities address inflation by going through this process every five to eight years. 

Ivins City last went through the Truth in Taxation process in 2010.

The Problem: Current property tax revenue does not meet our community's essential and growing needs. WHY? (The Short answer)

• Inflation has drastically reduced our purchasing power.

• Budget expenditures have grown to meet increased community needs, growth, and increased demand for services.

  
  

With discussions underway about a potential rate adjustment, it's important to understand how your property tax dollars are distributed—and how small the city's share actually is.

(In the spirit of transparency, this is a portion of my property tax bill.)

 The chart below illustrates how all your county taxes are divided. For our purposes, we will only discuss Ivins' portion, as that is all we can control.

EXAMPLE: In 2023, the certified property tax rate for Ivins City was 0.000901 (or 0.0901%). This rate is applied to the taxable value of your property, which is typically 55% of its market value.

For example, if your home has a market value of $750,000, the taxable value would be $412,500. Applying Ivins City's tax rate:

Ivins City Tax: $412,500 × 0.000901 = $372

This means that out of your total property tax bill, only $372 goes directly to Ivins City, or as my actual example above shows, $589.51.

 The Impact of Inflation and Growth (The Longer Answer)

According to the U.S. Bureau of Labor Statistics Consumer Price Index, the cumulative rate of inflation from 2010 to 2025 is approximately 51.9%, meaning that what cost $1.00 in 2010 now costs about $1.52.

Despite this, Ivins has maintained its property tax rate, relying on growth and new construction to increase revenue. However, this approach may not be sustainable as the city continues to grow and service demands increase.

Here are some examples:

Public Safety (Police & Fire)

• Personnel costs: Salaries, benefits, and retirement contributions have increased, particularly with statewide competition for police officers and fire/EMS staff. The cost to retain quality talent and to take care of those who risk their lives has increased, as have equipment costs.  One example of this is the cost of a Ford Explorer, which has increased by 49% over the past 15 years.

• 911 dispatch and emergency services: Shared regional services often pass increasing costs to cities based on population or call volume.

  
  

· Parks, Trails & Public Facilities

• The National Recreation and Park Association (NRPA) provides benchmarks through its Park Metrics as a guide for staffing. We are looking to add two necessary staff members, vehicles, and equipment, and replace outdated equipment and vehicles.

• Park maintenance: Labor, fertilizer, water, and fuel costs have risen steadily.

• Trail paving: Asphalt trails now cost $500K–$750K per mile, depending on terrain and base prep.

• ADA upgrades: Every new facility or retrofit must meet more stringent standards than those in effect in 2010.

• Landscaping supplies for a roundabout can run $16,000.

  
  

Technology & Cybersecurity

Cities now need to:

• Upgrade IT systems (many were paper-based in 2010)

• Protect against ransomware

• Provide remote access and cloud-based services

• Maintain website accessibility and online payment portals

Many of these costs were minimal or nonexistent in 2010 but are now essential.

Questions You Might Have

“If we didn’t have all this growth, we wouldn’t need more services!”

Not a math equivalent. Actually, the growth has helped the tax revenue, which has helped keep us from having to raise property taxes. We likely should have taken a few minimal incremental increases over the last 15 years, but hindsight also has better vision!

“What about Sales Tax and other Revenues?”

These definitely contribute to helping our city service hum!

Here are the projected revenues from other taxes we collect in Ivins. (Note: some numbers may change based on state and business reporting.)

“Why don’t we raise the sales tax?”

We are not allowed to raise sales tax by law. We may be able to add a resort community tax to the transient room tax in the future; it is determined by the ratio of residents to rooms (the real math is a bit more complicated). Commercial businesses are contributing, but we don’t have many commercial businesses here in Ivins. 

“Where is the revenue you promised from resorts and tourism?”

The resorts are contributing, but remember that Black Desert is not completely built out yet. We anticipate the Boardwalk to be completed in 2029. Once that project is 100% complete, then there is a potential for major tourism revenue. But that is still three fiscal years away, and some things should be addressed now. Tourism dollars have few places to go in Ivins, still, based on the small number of commercial businesses.

“Why can't the city tighten its belt more?”

Ivins City has been very lean, and as a result, projects are pushed out due to manpower and budget. Many of you have commented that landscaping hasn’t been done, or the trails need fixing, or other improvements to the city.  The proposed budget doesn’t have the “fat” in it to cut.  We have cut non-essential costs; our department heads are constantly seeking grants and other partnerships to help manage.

We are looking at the addition of 5 proposed new employees in Public Safety, Parks & Recreation, and City Planning, along with the necessary vehicles and equipment, as well as competitive wages for Public Safety personnel. Could they manage without increasing staff? You bet, but this would require every resident to adjust their expectations as well.

Choices

Finally, maintaining the same property tax rate since 2010, despite these escalating expenses, suggests that the city's portion of property tax revenue may no longer suffice to cover the growing financial demands of essential public safety services. We have delayed this as long as we could. Responsible leadership means acting now to maintain the services our residents rely on.

While any property tax increase requires careful consideration, it's important to remember that Ivins City's portion of your property tax bill is relatively small. Even a modest increase could provide significant benefits to Ivins and help address these rising costs without placing a substantial burden on homeowners and ensuring the continued safety and well-being of our residents.