Nephi city officials are exploring alternative funding options for a new police station after the Utah State Tax Commission denied a proposed property tax increase, according to council minutes from an Oct. 6 meeting. City Administrator Seth Atkinson stated that the denial means residents will not see an increase in the city's portion of their property taxes.
To address the funding gap for the police station, Atkinson noted the city is considering adjusting dividend transfers from city-owned utilities and utilizing public safety impact fees tied to new growth. The council discussed the pros and cons of dividend transfers, noting the method offers more control but less transparency. Additionally, the Community Impact Board approved a 30-year, $7.5 million loan at a 2 percent interest rate.
During the regular meeting, the council approved Resolution 10-06-2026 by a 5-0 vote to restructure an interfund loan. The restructuring was required because the original loan exceeded the 10-year repayment limit required by state law. The loan was linked to a property purchase intended for a new Nephi fire station that the fire district ultimately decided not to build at that location.
Other municipal business discussed during the meeting included an 11-year sewer rate plan that features initial increases that taper over time to fund projects in the city's 2022 sewer master plan. A representative from the regional organization R6 presented a master plan for a future agri-park near Nephi, which aims to bring agricultural processing closer to local producers through various infrastructure lots.
The council also unanimously approved changes to the cemetery plot sales policy, which limits pre-need sales to four plots per household and requires quarterly reports. Meanwhile, a consultant reported that the Utah Department of Transportation is installing middle-mile fiber along State Route 128 and Highway 50, with a free public Wi-Fi hotspot scheduled to go live near Nephi City Park as early as January 2027.
The council will decide at a later meeting whether to adopt Pelorus Methods for new enterprise resource planning software. Additionally, a proposed agreement for the city to receive services from the Juad Special Service Fire District regarding wildland fire costs goes to the fire district's board at its next meeting.
