West Haven City is evaluating the implementation of a Municipal Energy Tax for the upcoming Fiscal Year 2027 Budget. If approved, the tax would commence on October 1, 2026, and is projected to generate approximately $905,250 in new revenue.
Purpose of proposed energy tax
The city is looking toward this new revenue source to manage increasing costs for governmental services and a shift in population estimates. While West Haven does not currently levy a property tax for city services, the proposed energy tax functions as a form of sales tax.
Impact of population and inflation
The decision follows a period of significant growth, with West Haven being one of the fastest-growing cities in Utah. However, recent population estimates from the Utah Population Committee decreased for Fiscal Year 2026, which is expected to impact sales tax distribution.
Identified areas for budget increases
Additional economic pressures include a 28.2% inflation rate in the Mountain Region Consumer Price Index from 2020 to 202 6. The city has identified several areas requiring budget increases, including:
Public Safety: $359,500 for law enforcement deputies, crossing guards, and an emergency manager.
Park Maintenance: $114,500 for mowing services and seasonal employees.
General Governmental Services: $262,800 for contract adjustments, health insurance increases, and wage increases.
Sheriff's Office staffing needs
The Weber County Sheriff’s Office has also noted a need for 10 new Deputy Sheriffs to serve contracted cities including West Haven.
Walmart development and infrastructure costs
The city is also preparing for the opening of a 170,000-square-foot Walmart Supercenter and Fuel Center, which is expected around April 2027. While this development will act as a sales tax generator, the city anticipates it may also increase costs for law enforcement and justice court services due to potential increases in calls for service.
To facilitate the development, the City and Walmart entered into an agreement where the city will reimburse $2 million of the total $4 million cost to realign and reconstruct Hunter Drive. This reimbursement will be paid using 50% of the local option sales tax increment generated from the Walmart and surrounding development for up to eight years.
Calculating potential tax costs
Residents can calculate potential costs under the proposed Municipal Energy Tax by multiplying the combined total of their Rocky Mountain Power electric bill and Enbridge gas bill by 0.06.
A public hearing regarding the final budget is scheduled for June 17, 2026, at 6 PM. The Fiscal Year 2027 Budget begins on July 1, 2026.
