June 2026 | Vol. 36 Iss. 6
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Murray
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Block party expanding All-local second-year event has more vendors
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Murray’s stable water supply faces summer test Page 16
Rising costs, flat revenue: Murray proposes a nearly 10% tax increase By Shaun Delliskave | s.delliskave@mycityjournals.com If approved, the 9.8% tax increase would result in a $45.60 a year increase for a $600,000 home.
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urray City leaders are weighing a proposed property tax increase as part of the mayor’s tentative 2027 fiscal year budget, a plan shaped by rising personnel costs, slowing revenue growth and mounting infrastructure needs. At the center of the proposal is a 9.8% increase in the city’s property tax rate, expected to generate approximately $1.22 million in additional revenue. According to the budget document, the increase would raise Murray City’s property tax rate from .001403 to .001541 and result in an estimated annual increase of $45.60 for a primary residence valued at $602,900. City officials frame the proposal as necessary to maintain service levels in the face of growing financial pressures. “To balance the mayor’s budget there is a request for additional property tax revenue of $1,224,135 or 9.802%,” the document states. State and federal policies place Murray in a tightening financial vise—absorbing unfunded state mandates, losing ground on federal and state support, and operating under tax laws that restrict revenue growth—leaving local officials little choice but to shift more of the burden onto city taxpayers to sustain basic services. For example, a new state mandate tied to mobile device forensic investigations requires additional police resources, yet “the state did not allocate any funds to accomplish this requirement,” forcing the city to absorb the cost locally. At the same time, federal and state grant funding—captured under intergovernmental revenue—is declining, with that category projected to drop by 16%, reducing outside support for city programs. Compounding these pressures, Utah’s
Mayor Brett Hales presents his proposed budget for 2027. (Shaun Delliskave/City Journals)
property tax system limits automatic revenue growth, meaning cities must formally raise rates through a public process to keep pace with rising costs. Together, these factors create a financial environment where Murray must navigate external mandates and shrinking outside funding while relying more heavily on local taxpayers to maintain services. The budget outlines clear consequences if the increase is not approved, particularly for public safety. “A new officer will not be hired…. Overtime will be decreased and there will be less officers available,” the document notes in describing the impact of no tax increase. Police and fire services together account for nearly half of the city’s General Fund ex-
penditures, underscoring their central role in the budget. The proposal includes funding for a new police officer to meet a state requirement tied to digitalforensics investigations. “Senate Bill 19 requires that mobile device forensic services be performed in an expedited manner. The state did not allocate any funds to accomplish this requirement,” the budget explains. That dynamic—state requirements without corresponding funding—adds pressure to local budgets, forcing cities like Murray to either reallocate existing resources or seek additional revenue. Beyond public safety, the budget is heavily influenced by personnel costs, which make up the majority of city spending.
“Personnel costs comprise 69% of the General Fund budget,” the document states. Those costs continue to rise due to a combination of factors, including a 2% cost-ofliving adjustment, merit-based step increases and higher benefit expenses. Among the most significant increases ishealth insurance. “The cost of medical insurance increased this year by 14.7% with no change to the plan,” the budget notes. While expenses are climbing, revenue growth is more constrained. Sales tax— Murray’s largest revenue source—shows little expansion. “While the FY2027 budget shows a sales tax increase, the FY2027 budget has no increase from the projected FY2026 actual sales tax collected,” the document states, citing fluctuating economic indicators and the possibility of a recession. At the same time, some revenue sources are declining. Intergovernmental funding, which includes state and federal grants, is projected to drop significantly. “Intergovernmental [revenue]… $740,000 … -16%,” the General Fund revenue table shows. Together, those trends—flat sales tax growth and reduced outside funding—limit the city’s ability to absorb rising costs without adjusting taxes or cutting services. Another major component of the budget involves utility systems, particularly water. Residents have already seen rate increases, with more built into the coming year. “The new rate schedule had a 17% rate increase which occurred April 1, 2025, which will be followed by another 17% increase April 1, 2026,” the budget states. City officials attribute those increases Continued on page 6