Why a 225% tax increase proposal was tabled in Wellington City (for now)

SALT LAKE CITY — The Wellington City Council is dealing with a budget shortfall of $400,000, but a proposed solution that included a 225% tax increase is still just a proposal.

After a so-called truth in taxation public hearing in the small town near Spanish Fork, Utah, the Wellington City Council decided to postpone the decision.

But because of that shortfall, they have to do something Aiden Mortenson, news director of Castle Country Radio who attended this week’s meeting, told Inside Sources.

“Wellington hasn’t seen a tax increase since 2017. Since then, the city has continued to grow, but the tax rate has kind of remained stagnant, and looking at the budget this year, they found themselves in a pretty significant shortfall,” Mortenson said.

 

To lessen the blow, and to address rumors that the money would go toward a new city building or employee raises, Mortensen said that, according to the mayor of Wellington, the tax increase would go toward public safety, road repairs, utilities, employee retention, and general city operations.

The average homeowner’s tax in Wellington City would grow from $216 to $704 annually. Average business taxes would increase from $393 to $1,280.

So despite assurances about how the money would be spent, the crowd told the Wellington City Council, “we can’t afford this,” Mortensen said.

And some in the crowd came with alternatives.

“The main solution people suggested was to pursue grants,” Mortensen said. “Others were recommending both independent and state audits of the city finances to see where they could cut back, and they also wanted to signify new ways to attract new businesses or increase this tax rate gradually.”

What is the next step in Wellington City?

After the meeting, the city council indicated that they will return to the drawing board and look at the possibility of using grants to fund the city’s needs.

And a more gradual tax increase is another option.

The problem is that the council only has until October to make a final decision.

One bright note, Mortensen said, was the public participation. There were as many as 100 residents at the meeting, representing about 6% of the city’s 1,600 residents.

That number reportedly caught the attention of Wellington City Mayor Jack Clark.

“He said, ‘If this is what it takes to get the city out and involved in local politics, get them out to these meetings so that they can hear from those constituents, then we want to hold the tax increase hearings every month,’ because he wants that citizen input,” Mortensen said.

Contributing: Caitlyn Johnston, Producer of Inside Sources

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