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Council Provided Information - 8/15/2023CITY COUNCIL OF SALT LAKE CITY 451 SOUTH STATE STREET, ROOM 304 P.O. BOX 145476, SALT LAKE CITY, UTAH 84114-5476 COUNCIL.SLCGOV.COM TEL 801-535-7600 FAX 801-535-7651 COUNCIL BUDGET STAFF REPORT CITY COUNCIL of SALT LAKE CITY tinyurl.com/SLCFY24 TO:City Council Members FROM: Jennifer Bruno Deputy Director DATE:August 15, 2023 RE:Truth In Taxation Public Hearing and Final FY 2024 Budget Adoption ISSUE AT A GLANCE The property tax system in Utah is governed by a set of laws commonly referred to as “Truth in Taxation.” If the Council sets a budget in June that causes the City or Library to receive more funds than the previous fiscal year, that triggers the need for a public hearing referred to as a “Truth-in- taxation hearing,” along with various notice requirements. For the FY 24 budget, the Council did not adopt an ongoing tax increase for the City or Library. However, the Council did adopt the judgement levy for both funds. A judgment levy is a mechanism authorized by state law that allows the City (and in this case the Library) to recoup property taxes that it was not paid in the previous year due to properties that were judged to be of a lesser value. This is a one-time, one-year property tax increase, which means it will only reflect on property tax bills received in 2023. According to state law, even though this is a one-time increase, it does trigger the need for a truth in taxation hearing. ACTION OPTIONS At the conclusion of the hearing, the Council has the option of adopting the rates for both the City and Library as proposed. It could also elect to adopt a rate less, but not greater than the rate proposed and advertised. If the Council adopts a rate less than the rate proposed, the Council would need to re- balance the City and/or Library Fund budget, as it would create a situation where expenditures exceed revenues. Project Timeline: Public Hearing: August 15 Potential Action: August 15