Despite public outcry, Tooele approves 114 percent property tax hike

Despite public outcry, Tooele approves 114 percent property tax hike

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TOOELE — Tooele resident John Clark said even though Tooele city hasn't raised its property taxes over the past three decades, his taxes have gone up in one form or another every year, and that $50 to $100 each year has been piling up.

So a 114 percent property tax hike on his city property tax bill would "bury me," Clark told the Tooele City Council this week.

"And it would bury a lot of people in this town," Clark said, especially the elderly on fixed incomes. "They can't handle it."

"Any more increases like this and we're going to sell and leave," Clark said. "We're going to have to."

Dozens of other concerned Tooele residents packed into the Tooele City Council Chambers Wednesday night to protest the proposed 114 percent property tax hike, But later that evening — citing a troubled city budget and a lower-than-ever tax rate — city leaders voted to approve the increase.

During the nearly two-hour meeting, most residents spoke against the tax hike, which would raise Tooele's current annual general property tax revenue from about $2.5 million to nearly $5.1 million, according to the city's tentative budget.

If the increase is finalized during a truth in taxation hearing in August, Tooele residents will pay more than double what they're currently paying the city in that portion of their property tax bill.

That means for a residence of about $240,000, the bill will increase from $242 a year to $519 a year, or about $23 a month, according to city documents. For a commercial property of $500,000, the bill will increase from $916 a year to $1,967 a year, or about $88 a month.

"I think this tax increase is atrocious," Amber Warburton told the council. "To jump (114 percent) in one lump sum is asking way too much of your citizens."

Some residents, however, like local businessman Tyson Hamilton, called the tax hike a "necessary evil."

Reflecting on the tax hike in an interview Friday, Tooele Mayor Debbie Winn — who took office in January — said she sympathizes with her fellow residents, but stood by the tax hike as an important move to put the city on a healthier financial path.

"As I listened to our residents speak, I basically felt sick to my stomach knowing that I was doing something I didn't want to do," Winn said, choking up momentarily. "It's emotional for our residents, and I really did agree with what I was hearing. If I could change the facts, I would. But we just don't have a choice at this point."

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Winn said Tooele has essentially been making ends meet by pulling money out of its savings. She said for the past 36 years, Tooele leaders had not only not raised taxes, but even lowered the tax rate some years.

"Our previous administration knew this tax increase was coming, but it was never implemented, and so I knew that if I was elected that it was going to have to happen on my watch," Winn said.

Meanwhile, the city began supplementing its budget from its savings account for the last several years to the tune of about $678,000, a gap Tooele city officials plan to fill with the new tax revenue.

To save money, the city has kept its police station in a storefront — what used to be an auto parts store — for the past 30 years, even though that building was supposed to act as a temporary station, Winn said. The city has also struggled to keep officers in their ranks because other cities along the Wasatch Front offer higher pay and benefits.

With the new tax revenue, Winn said the city plans to use about $458,000 a year to pay off a $7 million bond to build a new police station, as well as about $1.1 million a year for payroll adjustments, of which $800,000 will be used to bring police officers' salaries up to par.

On top of all that, Winn said the city still owes millions on a lawsuit settled in 2014 with developers Tooele Associates, in which Tooele City was ordered to pay $22.5 million for breaking the terms of a development agreement for a project in Overlake.

The judgment levy for the lawsuit, which costs the city about $403,000 a year, still has 18 years left, Winn said, but after it's paid off that portion of the tax hike will expire.

"My heart goes out to my residents," Winn said. "I am one of those people that live here. I have children, family members, friends, neighbors. These are my people, this is my family ... We are moving forward and doing the best we can."

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Katie McKellar

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