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SALT LAKE CITY — A measure changing the process to create new cities has gotten the green light from the Utah Senate after the removal of a controversial retroactivity provision that had drawn fire from a contingent pushing to incorporate the Ogden Valley in Weber County.
The Utah Senate approved an amended version of SB252 late Tuesday night in a 26-2 vote, and it now goes to the Utah House for consideration as the 2024 legislative session winds down.
"Hopefully, most of the contention or concern of a few of the emails you've gotten might go away," said Sen. Dan McCay, R-Riverton, the bill sponsor.
McCay's proposal would raise the revenue standards for communities considering incorporation in a bid to make sure new locales are financially self-sustaining.
As is, feasibility studies required as part of the incorporation process must show that anticipated revenues generated at existing tax levels in a proposed city exceed expected municipal costs by more than 5%. The revenue surplus requirement aims to make sure proposed cities have a sufficient tax base to operate. SB252 raises the threshold to more than 10% and, to the chagrin of Ogden Valley incorporation boosters, would have retroactively applied the higher standard to incorporation proposals in the works, like theirs.
McCay and other lawmakers said they received feedback critical of the retroactivity provision, however, and it was taken out, leading to passage in the Senate on Tuesday evening of the amended measure. Ogden Valley incorporation proponents had feared the 10-plus percent threshold could have hampered their initiative.
Five communities in and around Utah are currently considering or pursuing incorporation, a process overseen by the Utah Lieutenant Governor's Office. They are the Ogden Valley in Weber County, Benson in Cache County, West Hills in Summit County, Riddermark in Iron County and Spring Lake in Utah County.
Related:
Ogden Valley residents bristle at new proposal that could hamper their incorporation drive
A portion of the Ogden Valley is the focus of an incorporation effort, and a new Utah Senate proposal tweaking the incorporation process has drawn fire from some in the area.In the Ogden Valley, at least, the possibility of incorporation has been a contentious issue. Supporters see the creation of a city as a way of asserting local control over the area's future as development pressure mounts. More and more development proposals are emerging in that area on the Wasatch Back, where three ski resorts and Pineview Reservoir are located, major draws to visitors. Others, though, worry creation of a new city could lead to property tax hikes to cover the costs of creating and operating the new municipal bureaucracy.
The feasibility study completed for the Ogden Valley shows that two incorporation scenarios would generate 6.7% and 9.4% revenue surpluses, below the threshold proposed in SB252. The third would generate a 10.1% revenue surplus.
The incorporation process requires petitions, a feasibility study, public meetings and more. Ultimately, the public weighs in at the ballot box if the process makes it that far.
