Utah lawmakers are considering a measure that could complicate or even stall ongoing incorporation campaigns in five Utah communities.
Currently, a proposed city needs an estimated surplus of tax revenue that’s at least 5% more than the projected annual costs for the city in order for their incorporation proposal to proceed. Senate Bill 252, sponsored by Sen. Daniel McCay (R-Salt Lake, Utah), would double that requirement to 10%.
The measure as it is currently written is also retroactive, making it applicable to five locales in Utah currently considering or pursuing incorporation — Ogden Valley in Weber County, Spring Lake in Utah County, Benson in Cache County, West Hills in Summit County and Riddermark in Iron County.
The bill’s sponsor says the bill is intended to ensure cities are financially viable as they’re incorporated, citing rising costs that he claims have caused difficulties for new cities being created.
Some residents promoting incorporation in the Ogden Valley have been critical of the bill, saying it will stall incorporation proposals, which they claim will give locals more control over development of growing areas.
According to a study of the Ogden Valley proposal commissioned by the Utah Lieutenant Governor’s Office, which oversees incorporation, two incorporation scenarios would be below the proposed threshold and the third would be slightly over.
On the Senate floor, several senators were also opposed to the retroactivity provision, which Sen. McCay said he would be willing to change.
The measure passed 19-7 on the second reading based on the presumption that it would be adjusted before senators consider it for the final reading.
