South Weber City's property tax rate is set to change with taxes due November 2019. Below are some answers to frequently asked questions.
There will be a public open house on July 16, 2019 at 6:00pm in the Council Chambers at City Hall if you have additional questions you'd like to discuss with the Mayor, Council and staff.
South Weber City receives a very small portion of your total property tax bill - 6.5%.
Although the City's portion will double (100% increase) your overall bill will not double.
Simply put, the City's property tax rate hasn't kept up with the rising costs to provide governmental services. As far we're able to research, the City has never raised property taxes since we incorporated and became a city in 1971.
South Weber City is raising the city portion of property tax to
- provide for ongoing & one-time governmental service needs through responsible, sustainable budgeting
- to plan for the future
- cover the growing cost of services
- to fund capital projects and support our capital facilities plans
- account for inflation
Governmental services – police, fire, parks, court, legal, administration, planning & zoning, and streets (new construction, sweeping, plowing) – are paid for with property, sales, & franchise taxes, and various other specific fees. Property tax, sales tax, and franchise tax are the big 3 of general fund/capital projects revenue sources that can be used for more than one service. Other governmental service revenue is designated for specific purposes, such as recreation and streets repair & replacement (e.g. transportation utility fee). The table below shows the accounting structure for governmental services.
|GOVERNMENTAL SERVICES FUNDS|
|General||Capital Projects||Special Revenue|
Various Other Specific
|Sales Tax||Specific Fees|
Operation & Maintenance
|One Time Expenses
Assets over $10,000
No Capital Assets
- Planning & Building
- Streets Sweep & Plow
- Planning & Building
- Streets New Construction
- Streets Repair & Replacement: (TUF) Transportation Utility Fund
The chart below shows the total amount of property, sales, & franchise taxes for last year’s budget and this year’s budget, including the doubling of the property tax. You’ll notice the significant reliance on sales tax, which can shift dramatically year to year depending on the state of the economy. Even with limited point-of-sale in South Weber, the city is overly imbalanced on the sales tax side.
Good budgeting practice includes providing for ongoing expenditures (Operations & Maintenance) and one-time expenditures (Capital Projects). South Weber has had to reduce the amount of sales tax going to capital projects to pay for increased ongoing costs. The chart below shows how 97.6% of sales tax went to pay for O&M and only 2.4% to Capital Projects in last year’s budget. That is the lowest amount of a trend over the last 8 years. The current budget with increased property tax allows for a more sustainable distribution model divided 80/20.
South Weber City expects to receive $352,000 in property taxes in fiscal year 2019. Doubling the City's portion (100% increase) would mean an additional $350,000 for a total of $702,000 in property tax for fiscal year 2020.
An additional $139 per year for the average home value in South Weber – $327,466.
The County Assessor reports that the average assessed value of a home in South Weber is $327,466. A home valued higher will pay more than $139 and a home valued less will pay less than $139. The table below estimates the amount of increase based on various home values.
The increase will be included in taxes due November 2019.
Property taxes are due annually in November. You will receive your property tax notice in the early fall, typically in August, that will show the exact amount owed with payment due in November.
You may pay more in property taxes from one year to another because the value of your home increased or because one of the entities who receives a portion of your taxes has increased their rate. South Weber City has not increased the city’s portion since 1971, when the city incorporated, so any rate increase has come from another entity. The chart below shows which entities receive your property taxes.
South Weber City receives 6.5% of your total property taxes. That’s 6.5 cents of every dollar you pay in property tax.
South Weber City receives $139 from the home valued $327,466, whereas the total property tax paid is $2,126. Davis County School District receives $1,387 and Davis County receives $332 from the same home.
It’s important to know that a city does not receive additional property tax due to a home’s value increasing. In fact, a city receives the same amount of property tax year to year and the city’s Certified Tax Rate adjusts by the County Auditor automatically to facilitate that, as shown in the table below.
|Certified Tax Rate|
The Certified Tax Rate is based on the previous years assessed valuations across the entire city and the amount of property tax received. The Certified Tax Rate will go up or down as needed to arrive at the same amount of tax the City received the prior year. The only way the City can get more property taxes is to hold a Truth in Taxation hearing (held in August) and make a case for a tax increase to the public.
3 Main Things – (1) progress on unfinished parks & trails, (2) construction of new roads, and (3) recent increased cost & service level in law enforcement & emergency medical services.
Property tax revenue can only be used for general fund & capital projects expenditures. Using property tax money for public safety frees up sales tax to be used for capital projects.
The City has capital facility plans in place that identify needed projects. For example, the transportation facilities plan identifies 20 total projects anticipated throughout the City until build-out. 12 of those projects are expected in the next 10 years. The City's portion of those 12 transportation projects totals $5.224 million. The property tax increase won't be able to cover all of our immediate needs in parks, roads & public safety, but will give us much needed resources to make progress in those areas.
Public Safety services in South Weber have changed drastically in the last few years. Our Fire & Emergency Medical Services moved from a volunteer service model to professionally staffing the station 24/7. Response times have been cut in half, from 9+ minutes to less than 4 minutes on critical incidents. Also, the contract with the Davis County Sheriff's Office increases in fiscal year 2020 by $85,000. Although a cost is associated with these changes, citizens will receive increased security and protection.
The City does not intend to raise property taxes this much again.
However, even with this 100% increase there will be unmet needs and costs will continue to rise. In order to not fall so far behind again, the City plans on considering smaller, inflationary increases yearly or every few years. Those are future decisions that will be evaluated annually as part of the budgeting process.