DRAPER — As Draper continues to explode in growth, the City Council is asking residents to foot the bill.
The City Council last week approved a tax increase of 70 percent on the city's portion of the property tax bill, much to the dismay of residents. That means on a home valued at $500,000, property owners would be paying $166 more a year in property taxes.
Council members made the decision late Thursday after a lengthy public hearing during which dozens of residents complained about the tax raise.
The tax increase was approved by a 3-2 vote, and stings slightly less than the original proposal.
The council was considering a 90 percent tax increase at a truth-in-taxation hearing.
This marks the first time Draper has raised taxes in nearly 20 years, since it incorporated in 1978.
"Now we're in this situation where we're a near crisis," said Councilman Jeff Stenquist. "We've put this off for far too long and now this council is burdened with the situation where we're in a very, very tough spot."
The city says that it is still at a lower tax rate than neighboring cities and below the average rate for all Utah cities. Of greater concern for the city is maintaining the same level of services to residents, which officials say cannot be done without raising taxes this year.
Residents at the meeting, however, were angry about the large increase in just one year.
"I understand Draper receives a far lower share than some of our other communities, but I'm not in a rush to catch up," said James Reynolds.
Gary Laurtizen told council members to keep in perspective what situation homeowners are in.
"We have to keep in mind property valuations have skyrocketed for all of us," he said. "Already, for that little piece we get, that's a huge increase for all of us."
Leo Romero, 86, said his home has been assessed at $622,800. "In this thing, they're saying right now, today, that the land, the piece of ground I lay my head on, is a 70 percent increase. Seventy percent? What happened? Is there oil underneath?" he said. "Mayor, you've got to help me."
Others expressed similar sentiments.
"I'm forced to leave Draper because I can't afford to live here anymore," said Kathleen Keller, who said 30 percent of her gross income is consumed by property taxes. She added that she is "vehemently opposed to this brutal tax increase. ... Yes, we need services. But there's got to be a place where we say 'stop.' Live within the budget."
Others were confused as to why the massive economic growth in the city has not compensated for raising taxes.
Sen. Howard Stephenson, R-Draper, president of the Utah Taxpayers Association, said that sales tax from IKEA came on board in 2007, "Yet in that very year, we're proposing a 90 percent increase in property tax. ... We would hope it would curtail the need for a significant property tax increase hike."
Council members debated the hike, especially a new fire station in SunCrest that would cost $1.75 million just to staff annually, millions that have been set aside for road repairs, a recreation department and town center.
"To me, the most important thing is to have public safety," Councilwoman Stephanie Davis said. "I'm willing to have a small tax increase for public safety, but for nothing else."
Retorted Councilman Paul Edwards, "I can do without a recreation department. I can do without a town center," he said. But, "We have roads in SunCrest that are in severe jeopardy of falling apart. We don't even have the money to go in and fix those roads."
E-mail: astowell@desnews.com