Utah County is facing projected deficits of $18.7 million in 2025 and $25.1 million in 2026 as the rising cost of core services outpaces property tax revenue growth, according to Utah County government documents. Officials warned that without a property tax increase for the general fund, these deficits will rapidly deplete the county's rainy-day reserves.
Rising Costs Outpace Revenue
The cost of providing essential services in Utah County has increased by nearly $37 million, or 39%, since 2020. According to Utah County, this surge is primarily driven by high inflation, increased funding needs for law enforcement, public and mental health services, assistance to abused children, and criminal prosecution. Additionally, the county has seen reduced federal funding for critical social services, such as victims' advocates.
While sales tax revenues have increased by $15.2 million, or 41.8%, over the same period, this growth has not been sufficient to keep up with rising expenses. In contrast, the natural annual growth in property tax revenue has remained moderate at approximately $425,000, or 0.83%, over that same timeframe.
Public Safety Budget Demands
Public safety and criminal justice operations represent a significant portion of the county's budget, consuming more than 77% of the annual general fund in 2024. These services include a wide range of around-the-clock operations, such as protecting citizens, fighting drug trafficking, managing SWAT operations, and responding to lewd attacks on children.
Other critical duties include the incarceration and rehabilitation of lawbreakers, providing medical services to inmates, fighting wildland fires, and managing emergency services during crises. The cost of criminal justice services specifically—including indigent defense, justice courts, and the prosecution of criminals—has increased by $7.3 million, a 43% rise since 2020.
Infrastructure and Maintenance Needs
The county's financial challenges are compounded by a significant need for capital improvements and deferred maintenance. Many of the county's facilities are more than 30 years old and require major renovations. Population growth has further necessitated the construction and renovation of various buildings and facilities throughout the county.
Due to skyrocketing costs for labor and materials, the total capital costs budgeted through 2026 are expected to exceed $100 million. The Utah County government noted that capital improvements and deferred maintenance have been major areas of neglect historically within the county.
Taxation and Population Growth
The county's financial instability has been highlighted by its recent appearance on A&E's Sixty Days In. The program noted that as the local population increases, the county has seen a rise in the number of violent offenders and drug trafficking.
Utah County officials noted that the county remains one of the lowest taxed in the state, ranking 26th out of 29 counties. For comparison, Salt Lake County ranks 19th and Davis County ranks 24th. Even with a proposed tax increase, the county would only move to the 25th lowest position in the state.
The Truth in Taxation Process
To address these fiscal gaps, the county must utilize a process known as Truth-in-Taxation. Under current state law, local governments are not allowed automatic increases in tax revenue regardless of inflation or rising costs. Instead, they must undergo a process of public disclosure and hearings to implement any declared tax increase.
This system was established by the Utah Legislature in 1985, replacing a previous limitation that capped tax increases at 106% of the previous year's revenues. Today, taxing entities are required to advertise any proposed increase and hold a public hearing before implementation.
Auditor Financial Oversight
The Utah County Auditor maintains an official record of the county's financial standing, including audited financial statements and reports on legal compliance. According to the Auditor's office, the county has received an unqualified opinion on its financial statements, which is the best opinion an external auditor can issue, indicating that the statements are free of material misstatements and presented fairly in accordance with Generally Accepted Accounting Principles (GAAP).
