Information regarding Truth-in-Taxation Hearing

July 30, 2020

Spanish Fork City is holding a Truth-in-Taxation Hearing on Tuesday, August 4 at 6 p.m. The hearing is being held to review a proposal to increase the property tax rate for Spanish Fork residents.

The increase is to fund a portion of the construction and operation of a new Fire & EMS Station (Station 62) and to fund the construction of a new public library.  Construction on Station 62 will be completed in August 2020.  Construction on the new library will commence in the Spring of 2021 and will be located immediately adjacent to the current City Administration Building. 

The new library building will also have additional office spaces for city administration and a new city council chambers. These non-library spaces will only occupy about 30% of the new building. Only the cost of the library (70% of the total building cost) will be funded by the property tax increase. The City will use other general fund and enterprise fund revenues to pay for 30% of the bond. 

The proposed rate of .001250 would increase the Spanish Fork City property tax on a $314,200 residence from $163.52 to $216.06, which is $52.53  per year or $4.38 per month. 

The Spanish Fork City property tax on a $314,200 business would increase from $297.32 to $392.83, which is $95.52 per year.

If the proposed budget amount is approved, Spanish Fork City would increase its property tax budgeted revenue by 32.13% above the current rate.

All residents are invited to a public hearing on the tax increase.

Public Hearing

Date/Time: 8/4/2020, 6:00 PM

Location: High Chaparral, 475 S Main St., Spanish Fork, UT 84660. 

To obtain more information regarding the tax increase, citizens may contact Spanish Fork City at 801.804.4520.

Frequently Asked Questions

What is this proposed increase going to be used for?

There are two parts to the increase: the construction and operation of Station 62 and construction of the New Library Building

  Construction on Station 62 will be completed in August 2020 and about .65 cents of the total increase will be used to finish the construction of Station 62 and to operate the new building.  Staffing levels for ambulance and fire personnel will increase by having two ambulances available to respond to emergencies.

The construction of the library will begin in 2021.  Design work is still being completed on this building.  The library will make up about 70% of the new building and administrative offices and a Council Chambers will make up the other 30%.  Revenue from property taxes will only be used to fund the library portion of the building.  Other general fund and enterprise fund monies will be used for the administrative and council chambers portion of the building.


Are my taxes really being raised by 30+%?

Only the city’s portion of your property tax will be affected by the outcome of the truth-in-taxation hearing. The property tax you pay goes to the county, the Nebo School District, and other special service districts, as well as to the city. On average, the city’s portion makes up 10% of your total property tax bill. The average home ($314,200) could see an increase of 32% of the city portion of the tax, but not a 32% increase in the total bill. On average, the city's impact to the total bill will be an increase of about 3%.

Is the proposed rate of .001250  the only rate being considered?

No. The proposed rate is the highest rate the city could approve. Any rate below the proposed rate can also be approved. If the tax is approved, it will likely be at a lower rate based on the most current construction cost estimates. 

Where is the money coming from for the new council chambers and administrative offices?

The office and council chamber part of the library, about 30% of the total square footage, will be funded through the general fund and various enterprise funds.

Last year the City proposed to raise property taxes for three years for the library.  Is that still the plan?

No.  After reviewing the long-term effectiveness of this plan, it was determined to shorten the increases to two years - last year and this year.  Therefore, there is no proposed increase planned for next year.

How can I show my support or voice my concern?

Come to the public hearing! You will have a chance to speak to the mayor and city council.  You will need to state your name and address and will have three minutes to speak.