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Castle Valley Discusses Proposed FY2027 Property Tax Increase

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Castle Valley held a public hearing on August 12, 2026, to discuss a proposed property tax increase for fiscal year 2027. The proposed rate increase aims to generate approximately $73,666 in new revenue to support town operations and infrastructure.

Key takeaways

  • The proposed tax rate increase from .000864 to .001193 aims to generate $73,666 in new revenue.
  • The hearing addressed concerns from residents regarding the burden of tax increases on those on fixed incomes.
  • The town has utilized grants, including $500,000 for the Culver project, but requires capital to access certain reimbursements.
  • The Town Council will take action on the budget during its August 19, 2026, meeting.

The Castle Valley Town Council held a public hearing on August 12, 2026, to discuss a proposed property tax increase for the 2027 fiscal year. The meeting, which was held in a hybrid format via Zoom and at the Town Building, addressed a proposal to raise the property tax rate from .000864 to .001193.

According to a report published August 19, the proposed tax change is intended to generate an additional $73,666 in revenue. This would increase the town's property tax income from $134,850 to $209,850, representing an estimated 54.04% increase in property tax revenue.

During the hearing, Mayor Duncan noted that the town has been using grants for projects over the past two years, such as a $500,000 grant for the Culver project. However, the Mayor stated that many grants require the town to have funds available to pay for projects upfront before receiving reimbursement.

Public comments during the hearing included concerns regarding the impact of tax increases on residents on fixed incomes. One resident, George Holling, argued that the proposed increase was significant and suggested that the town should focus on reducing costs and evaluating maintenance needs rather than raising taxes.

Other residents questioned the fairness of property assessments and the distribution of tax revenue between the town and the county. Discussion also touched upon the town's ability to maintain roads, specifically Castle Valley Drive, which the Mayor noted is due for chip sealing.

The Town Council is scheduled to discuss and take action on the budget at a regular meeting on Wednesday, August 19, 2026.

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