Roy leaders OK scaled-back 34.25% tax hike; foes plan challenge to halt it

ROY — Roy leaders approved a scaled-back property tax hike following a lengthy tax hearing Tuesday night.

Still, the reduction — which might be offset by new taxes Roy property owners have to pay for fire protection — wasn't enough for some, and a contingent of foes plans to formally challenge the increase to keep it from going into effect. One of the representatives of the group, Nancy Inman, said Wednesday morning she was planning to file the preliminary paperwork to pursue the challenge.

"I am right at this very moment getting ready to take my referendum down to Roy city," she said.

Roy leaders initially proposed a 54.9% property tax hike in preparing the city's 2026-2027 budget, which would have generated an extra $2.81 million for the locale. City officials say they need the increase largely to boost city workers' wages to stay competitive with other employers and retain the workers. But it's spurred sharp backlash from some who think it's too much.

In response, city officials put forward a more moderate proposal at Tuesday's truth-in-taxation hearing and ultimately approved an increase of just 34.25%, expected to generate an extra $1.75 million per year. With plans to shift fire protection in Roy to the Weber Fire District, a regional fire department, the reduction stems largely from the removal of some $917,000 in funding for the Roy Fire Department.

The increase, approved 4-1 by the Roy City Council, would boost property taxes on a home worth $439,000, the average in Roy, from $388.25 to around $521.23. A 54.9% hike would have boosted the total by an additional $80.46, to $601.69.

"So there was no way I was ever going to support a 55% tax increase," Mayor Ann Jackson said during the meeting. Other city officials "all knew that, and that's why they all worked so hard to bring that down."

Nevertheless, critics like Inman still think the increase is too much. They also worry the new property taxes Roy residents will have to pay Weber Fire District for fire protection will offset the $80.46 tax reduction for the owner of a $439,000 home brought on by the scaled-back tax increase.

A public notice for a Weber Fire District meeting last July on the issue said the owner of a home worth $439,000 in Roy would pay the district $314.13 a year in property taxes starting in 2027 if the district takes over fire protection from the Roy Fire Department. "We are going to be paying more," Inman said.

City Councilwoman Janel Hulbert, though, said some of the details of plans to shift fire service to Weber Fire District starting Jan. 1, if plans proceed, have yet to be worked out.

Under the proposal, Weber Fire District would acquire Roy's fire equipment and lease the department's stations from the city. "Residents will see the district added to their property tax bill next November, but under Utah Code §59-2-924.2, the city has to lower its own tax rate so people aren't paying twice for the same service. Since negotiations are still ongoing, some details could change before everything is final," she said.

'Very, very complicated'

As part of the challenge, those petitioning against the Roy tax hike would have to collect around 1,800 signatures of support from registered Roy voters, according to Inman. If they meet the threshold, a question would appear on the November ballot asking Roy voters if the 34.25% hike approved on Tuesday should be retained, settling the matter.

Still, there are a few interim steps. The city would have time to come up with a financial impact statement spelling out the impact to Roy of rescinding the tax hike, among other things. Presuming the process proceeds, Inman doesn't think signature-gathering on petitions would start until September.

"It is very, very complicated and a lot of work to get this through," said Ty Chaston, also involved in the challenge.

Hulbert has heard rumblings of a challenge and says it's within the rights of those so inclined to do so. But if a challenge moves forward and succeeds, it would put the city in a difficult situation.

"First, losing the tax increase would put Roy back in the same tough spot regarding employee retention, making it hard to keep wages competitive and retain the staff who serve our community. Second, running a referendum process itself costs the city around $50,000 or more in administrative and election expenses," she said.

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