The City of Orem is considering an increase to its property tax rate to generate an additional $450,000 for a new Public Safety Special Revenue Fund, according to a proposed impact schedule released by the city. The move would fund the hiring of two new police officers and the purchase of related equipment for the police department.
Proposed Revenue and Tax Rates
Under the proposed tax impact schedule, the city would raise its current certified property tax rate from 0.000603 to an estimated 0.000645. This adjustment is intended to increase the city's total budgeted property tax revenue from $6,414,258 to a projected $6,864,258.
Funding for Public Safety
The City of Orem estimates that the tax change would result in a 7.02% increase in total property tax revenue. All of the additional $450,000 in revenue would be dedicated specifically to the city's new Public Safety Special Revenue Fund.
Police Department Budget Impact
The proposed revenue increase would directly impact the police department's budget for the 2026-2027 fiscal year. While the department's budget without a tax change is set at $25,526,548, the new revenue would increase that budget to $25,976,548.
Impact on Resident and Business Owners
The city's analysis provides estimates for how the tax increase would affect specific property valuations. For a primary residence valued at $513,000, the estimated annual increase would be $11.85, representing a 6.97% increase in the tax amount for that property.
For a business valued at the same amount of $513,000, the estimated annual increase is projected to be $27.57, which constitutes an 8.91% increase in the tax amount.
Fiscal Year 2026-2027 Planning
The proposed tax increase is part of the city's fiscal planning for the 2026-2027 fiscal year. The city's documentation outlines that the primary goal of the additional funding is to bolster law enforcement capabilities through personnel and equipment acquisition.
Current Tax Status
The City of Orem maintains its current certified property tax rate of 0.000603 as it evaluates the proposed changes to the Public Safety Special Revenue Fund.
