On August 14th, the City Council voted to approve an $860,000 property tax increase. This is the first increase in the Ivins portion of property taxes in 15 years. For an average Ivins home, valued at $743,247, this increase is roughly $10 a month.
The council chambers were full for the public hearing about the increase that night, with more than 80 residents in attendance, and almost all opposed the increase. Since the public hearing, some residents have filed a referendum petition, which, if it qualifies, will place the tax increase on the November 4th ballot for voters to approve or reject. That means our budget is up in the air until then.
I know the public hearing was frustrating for residents. It looked like our minds were already made up. The truth is, by the time of that hearing, they largely were. Since April, I’ve been writing articles, sending monthly email updates, posting on social media about the budget and the proposed property tax increase, and responding to every budget-cutting suggestion residents sent me. (Actually, I realized this problem a lot earlier and really started writing about the need for a tax increase in May 2024, with “Yes I know Taxes is a Four Letter Word.”)
Those suggestions were valuable. They helped me focus on about 14 key budget issues and shaped my position on what our budget — and therefore our tax increase — really needed to be. Based on my analysis, I believed a $1.35 million increase was the fiscally responsible amount. But after considering resident feedback, I supported the smaller $860,000 increase the Council adopted in June.
By the August Truth-in-Taxation hearing the direction had largely been shaped. I know that didn’t make the evening any less frustrating, but I want you to know your input mattered in how I reached my decision.
What is the Real Question?
The question before us isn’t simply, “Do I want a tax increase?” No one answers yes to that without more context. The real question is, “What’s at stake?” In other words: what kind of city do we want Ivins to be?
Baseball legend Yogi Berra once joked, “When you come to a fork in the road, take it.” In November, Ivins faces just such a fork with two prongs. One path keeps us a lean but well-functioning city — not extravagant, but able to carry out the priorities in our General Plan and provide the high quality of services our residents expect and deserve, which go beyond the bare minimum in most cities. The other path avoids any increase now, but accepts a declining level and/or quality of services, deferred maintenance, and the risk of bigger costs later.
Are We Spending Recklessly?
We’ve spent months openly discussing and adjusting the budget in detail. But referendum organizers claim Ivins is overspending. Their numbers reflect one way of looking at a narrow slice of time and don’t account for service improvements residents now rely on.
Compared to other Washington County cities, Ivins collects and spends less in total taxes per person, well below average. Even with the tax increase, our per-capita revenue would still trail behind. That’s not a picture of government excess; it’s a sign we’ve stretched every dollar as far as possible.
The issue isn’t how the past is measured. The issue is how we fund the appropriate level of services our residents expect.
This budget doesn’t add “extras” like pickleball courts or splash pads. It covers the basics: public safety, roads, parks maintenance, and water infrastructure. Many residents have seen and complained about weeds in city medians, needed road and trail repairs, and other service issues. Those aren’t signs of waste, they’re signs of a lean city trying to keep up with growth and inflation.
Why Not Wait or Cut?
Many residents suggested we delay vehicle purchases, dip into reserves, or rely on Black Desert Resort revenues. Our Finance Director and I even looked into leasing vehicles and studied how other cities approach this. On the surface, these ideas sound simple and appealing. But they’re risky.
- Delays just push costs into the future, where inflation makes them higher.
- Our reserves should be protected for true emergencies. The Government Finance Officers Association (GFOA) scores our reserves as too low for a city with our risks.
- Black Desert revenues will help in the future, but construction delays, such as the “Boardwalk” retail and restaurants being pushed back at least two years, mean that revenue is still years away.
- Even with the four new staff positions we budgeted, Ivins still has fewer police officers, parks staff, and public-works employees per capita than state and national averages. We’re not building capacity ahead of growth; we’re just trying to keep up with it.
- I looked into other suggestions from residents and summarized these in an August article, “Property Tax Increase: Where We Go From Here.”
Why the Increase Is Necessary
The county lowers property tax rates for cities automatically each year as property values increase, so residents’ tax bills remain about the same. So, while property values have risen since 2010, Ivins’ property tax rate has steadily declined, from 0.199% in 2010 to 0.0877% this year.
That means the Ivins tax on a primary residence has fallen from $109 per $100,000 of assessed value in 2010 to $48 today. Even with the increase, the tax would be only $65 per $100,000 of assessed value.
In the past few years, Ivins avoided raising taxes by relying on one-time revenues: $1.35 million in federal COVID relief, now gone, and $650,000 in interest on developer bonds that is disappearing since state law now requires interest on new bonds to be returned to the developer.
At the same time, we invested in key service improvements, like converting both fire stations from mostly volunteers to full-time 24/7 professional staffing, raising costs over $500,000 a year. This provides faster response times, enhancing public safety for residents.
To fully cover operating expenses, reserves, and capital projects, we need an additional $1.35 million each year. After listening to resident feedback, the Council approved an $860,000 increase instead, a compromise between fiscal need and community concern.
This strikes a balance between fiscal responsibility and community concerns. While the capital projects fund is tight, this increase is a lean and responsible approach to maintaining the quality of services residents expect.
I won’t rehash here all the details of why I believe we need a property tax increase or how we got here. I’ve already covered that in other articles: Why a Property Tax Increase is on the Table, Time for a Property Tax Discussion, and Yes, I know Taxes is a Four Letter Word.
Conclusion
Our revenues don’t cover expenses and haven’t for several years. Ignoring this doesn’t solve the problem; it will only make it harder and more expensive to solve later.
The City Council approved this increase because it is the most responsible way to carry out the priorities identified in the General Plan, ensure Ivins can continue to provide the services residents expect and rely on, and responsibly prepare for future needs, rather than leaving a future generation to pick up the tab for what we put off.