Murray City leaders signaled cautious optimism about the city’s financial health on June 6 as they moved forward with a proposed $90-million municipal budget for the 2025-2026 fiscal year—opting to withdraw a previously proposed property tax increase in favor of drawing modestly on reserves.

The decision followed a lengthy and technical city council meeting during which budget director Brenda Moore presented key highlights and fielded questions on everything from utility transfers to executive compensation. “The general fund budget is balanced with no use of reserves,” Moore told the council. However, with the 5% property tax increase removed, up to $618,000 may now be drawn from reserves—though Moore emphasized, “You’ll still sit at 25.9% [reserves], which is where the state wants you.”

The council’s decision not to move forward with the tax hike, originally proposed to fund ongoing services such as police staffing and theater operations, came after a rare consensus among both elected officials and city staff. Mayor Brett Hales stated, “If we’re going to kick this down the road, then I don’t agree with that,” but added he was ultimately “absolutely” supportive of pausing the increase this year given
available resources.

Councilmember Diane Turner, who advocated for tapping existing funds, said, “I think we need to give the citizens and the businesses a little bit of a break this year.” Moore noted that if the tax increase were enacted, “it would require a 39.8% property tax increase” to replace revenues currently transferred from enterprise (utility) funds.

Those transfers—totaling $5.24 million from Murray’s water, wastewater and power departments—remain critical to balancing the general fund, Moore explained. They make up about 8% of the general fund’s revenues. “The purpose is a return on investment to the general fund so that we don’t have to have as big of a property tax levy as we could otherwise need,” she said.

Despite conservative revenue estimates, the city is pressing forward with several key investments. The budget includes funding for three new full-time positions: a police lieutenant, a wastewater technician and an arborist. Employee salaries across the board will increase 2.5% through cost-of-living adjustments, and eligible staff will also receive merit-based step increases.

Still, Murray’s leadership emphasized restraint. “Operations decreased 4%, or $472,000,” Moore said, pointing to efforts to control spending despite rising costs. Councilmember Paul Goodman expressed concern about long-term sustainability. “I just want to make sure we’re making the right move,” he said. “We know prices are going up….I’m just concerned that we’re painting a unicorn that shouldn’t
be painted.”

Moore responded with a reassurance grounded in data. “If this had an effect where we’re going to build up, then I would agree. But this will have no effect on
that. It’s $400,000—if that affects us, we’re in trouble.”

Also included in the budget are nearly $18.6 million in capital projects, funded through one-time revenues such as the 0.2% local sales tax. Highlights include $3.4 million in road repairs, solar lighting along the Jordan River Parkway Trail, and continued upgrades to existing city buildings. Moore stressed the importance of sustainability, noting, “They [public works] can only
manage about $3.4 million in street projects per year.”

The council will formally adopt the final budget on June 17, following the required public hearing process. In the meantime, Moore plans to post an updated version of the document online after incorporating modest revisions and the removal of the tax increase.

Residents were encouraged to review the full budget and compensation tables available on the city’s website. “We’ve raised so much in fees,” Turner said, “I think it means a lot to our citizens that we can say we’re not raising taxes this year.”

Despite differences in approach, all parties appear aligned on one message: Murray remains in stable financial shape—for now. λ