Ogden Valley wrestling with funding shortfall, specter of 519% tax hike

EDEN, Weber County — As if launching a new city isn't tough enough, Ogden Valley leaders now face another unexpected challenge — a potential budget shortfall of $2.2 million or more and the specter of a 519% property tax hike.

The new Weber County city formally came into being last January, and the locale's leaders have started budget deliberations for fiscal year 2027. Officials had anticipated a shortfall in revenue compared to earlier estimates ahead of the city's formation. But as they start crunching the numbers, they are finding that the gap is much larger than expected.

"The city has practiced frugality from day one, yet revenues will fall far short," reads a synopsis of the situation supplied by Mayor Janet Wampler, who was traveling Friday and unavailable for comment.

The preliminary property tax hike plan calls for an increase in tax collections from $489,519 to $3.03 million — up 519% — which would boost the city taxes on a primary residence worth $672,032, the median value, from $58.79 to $364.22.

On top of that, government officials narrowly missed a deadline in completing the paperwork formalizing creation of the city last January, meaning they can't legally increase taxes and will likely have to seek a special exemption from Utah lawmakers to do so. The proposed budget totals around $6.4 million.

Without a legislative fix, city leaders "will be stuck," said Shane Dunleavy, a resident of the new city who has been following the process and helping where he can. Utah lawmakers "may have to run a bill in the interim session to make this happen."

The situation has been focus of discussion among Wampler and the Ogden Valley City Council for several meetings. At a work session Friday, which Wampler didn't attend because she's traveling, City Council members didn't delve deeply into the issue, focusing instead on planning and zoning issues.

Councilwoman Peggy Dooling Baker, though, emphasized the relatively small share of taxes going for municipal services compared to school, county and other taxes and the need to communicate that to the public as the tax debate moves forward. The possibility of a property tax hike was a big concern for many as Ogden Valley residents debated incorporating, formally approved in a 2024 vote.

"That has to be an education piece. If we're saying that out loud, keep saying it because people are still unaware or not sure," she said.

'Handed a raw deal'

As debate unfolded in 2023 about incorporating Ogden Valley — a picturesque zone near Pineview Reservoir and three ski resorts — a study commissioned by the Utah Lieutenant Governor's Office as part of the process determined that anticipated revenue sources would be enough to cover expected expenses.

Incorporation, the report reads, "will likely result in at least a 5% budget surplus when comparing available revenues to expenses." A follow-up study in 2024 came to the same conclusion.

Many, however, questioned the finding, and subsequent efforts and studies parsing the matter were far less rosy. As the city launched last January, officials estimated a revenue shortfall of $1.25 million through 2028. Now the numbers are even more dire.

Estimated revenue, according to the synopsis supplied by Wampler, will only cover 54% of the city's preliminary budget of $6.4 million. The feasibility study into incorporation "concluded that a property tax increase would not be necessary. Yet the funding gap threatens to sink the city," reads the synopsis.

Taking out loans to offset the shortfall has been discussed, but without the ability to raise property taxes to back borrowing, lenders are unwilling to take the risk, according to Dunleavy.

He said officials have also discussed the possibility of implementing a transportation utility fee on Ogden Valley households of $20 to $25 a month. That could help cover road maintenance costs, one of the biggest budget items in the massive 63-square-mile city, but he suspects many might bristle at the possibility.

The issue will undoubtedly be focus of more meetings by Ogden Valley officials, who seem to be bracing for backlash.

At any rate, Councilwoman Kay Hoogland stressed all the work and time city officials and others have dedicated to resolving the matter, without compensation. "Please note that we are doing all of the municipal work right now with volunteers, many of whom are working 40 to 60-plus hours per week," including the mayor and City Council members, she said

Dunleavy, too, expressed support for the city officials, pointing a critical finger at the feasibility study carried out ahead of incorporation on behalf of the Utah Lieutenant Governor's Office. Wampler's synopsis said those who completed it used "inflated sales-tax assumptions" and underestimated the costs of running a new city.

"I think they just were handed a raw deal. It's not their fault," Dunleavy said.

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