Heber City Council members deferred a decision on Tuesday, July 7, regarding whether to allow developers to use public infrastructure districts to fund essential utilities and roads for The Highlands, a new community of more than 800 homes. The council is scheduled to continue discussions on the special tax district proposal at its upcoming meeting on July 21.
Infrastructure Funding and Costs
The proposed development, located in the northern section of Heber near the Utah Valley University Wasatch campus, would utilize public infrastructure districts, or PIDs, to manage construction costs. Under this structure, developers can issue bonds to cover infrastructure expenses, which are later repaid through special assessments or property taxes levied on the homeowners within the district.
According to KPCW, the total estimated cost for infrastructure in The Highlands is approximately $40 million. Developers intend to use PIDs to cover roughly $2 rolls of that amount, specifically around $22 million. A small portion of the bond funds—estimated between 5% and 10%—would be set aside for public improvements, including neighborhood park amenities and the extension of a paved path along U.S. 40.
Developer Arguments for Affordability
Max Martin, representing the developers, argued during the July 7 meeting that the PID structure is a vital tool for achieving housing affordability. He stated that the primary goal of the development is to provide attainable housing and noted that there is no financial risk or liability to the city resulting from the use of these districts.
Martin provided specific estimates regarding how the tax district would impact individual buyers, suggesting that homes could be priced approximately $40,000 lower than they would be without the PID. He further estimated that residents would see annual savings of slightly more than $800. The development is also planned to include 55 affordable townhomes.
Tax Increases and Council Skepticism
Despite the potential for lower purchase prices, the use of a PID would result in higher monthly property taxes for residents. KPCW reported that homeowners within the district could face monthly property tax payments of approximately $430, compared to roughly $300 per month if the development were built without the special tax district.
Councilmember Aaron Cheatwood expressed skepticism regarding the public utility of the plan, noting that the structure differs from previous projects like Jordanelle Ridge. He remarked that there is no direct public benefit in the current proposal, observing that developers are essentially using the district to reduce infrastructure costs so they can lower home prices.
Community and Resident Concerns
The proposal faced scrutiny from both city officials and local residents during the public hearing. Mayor Heidi Franco indicated a desire for more transparency, stating she wanted to see a specific, itemized list detailing exactly how the bond funds would be allocated.
Local residents also voiced concerns regarding the long-term implications of the tax structure and the broader environmental impact on the valley. Resident Russ Funk questioned whether the promised affordability would actually be delivered to property owners in the future. He suggested that there must be enforceable language within the district agreements to ensure the subsidy is passed back to the homeowners rather than being retained by developers.
Next Steps for Heber City
The Heber City Council did not reach a final determination during the July 7 session. The debate over the special tax district for The Highlands remains ongoing, with the next official discussion slated for July 21.
