Murray Journals | June 2022

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June 2022 | Vol. 32 Iss. 06

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MURRAY PROPOSES 15% PROPERTY TAX INCREASE By Shaun Delliskave | s.delliskave@mycityjournals.com

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lame it on inflation and the competition to hire and retain public safety employee, but Murray resident’s property taxes are going up. Mayor Brett Hales initially proposed raising Murray’s portion of resident’s property taxes bill by 20%; Murray City Council whittled that down to 15%. For property owners, this equates to a property tax increase of approximately $54 on a $400,000 home. Besides Murray City, a Murray resident’s overall property tax is sliced up between Salt Lake County, Murray or Granite School Districts, Murray City Library, and mosquito abatement districts. School districts generally receive 60% of every tax dollar collected, while Salt Lake County typically collects 20%. Murray’s last tax hike happened in 2019 when the city raised its property tax rate by 45%. The city will approve a tentative budget to start the fiscal year in July, but Utah State law requires a Truth-in-Taxation public hearing in August to finalize any tax increase. “The main reason for the increase is to offset the effects inflation has had on city expenses since the last property tax increase in FY2019. The cost to provide city services have increased in personnel, operations, and debt service. The growth in property tax collections has averaged only $109,000 or 1% of property tax collected. Inflation has been high-

er than that, especially the inflation experienced to remain competitive with police and fire department salaries,” Murray City Chief Cdommunications Officer Tammy Kikuchi said. Almost 50% of all Murray property taxes go to public safety. Police and fire salaries alone have risen by $3 million since FY 2020. Their combined salaries exceed all other general fund categories by function combined including all other city employees salaries and bond debt. “To remain competitive and keep our officers, in September 2021, the city council approved an approximately 15% wage increase for police officers costing around $500,000. The three years of property tax growth did not even cover this increase,” Kikuchi said. Mayor Hales wanted to give city employees a 7.5% cost of living adjustment (COLA). The council countered to give a 5.5% increase, but a last minute amendment and a close vote of three versus two, the council stuck with the mayor’s 7.5% COLA. “The consumer price index at the time the mayContinued page 8 Paying down the bond for the new city hall’s construction significantly figures into the city’s budget. (Photo courtesy Murray City)

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