CACHE COUNTY – At their regular meeting on Aug. 26, the members of the Cache County Council voted to instruct County Treasurer Craig McAllister to publish a notice of a Truth-In-Taxation hearing for a proposed property tax increase of up to 18 percent for 2026.
While some members of the council expressed misgivings about the size of that proposed increase, veteran council member Barbara Tidwell took the plunge by proposing a motion for the 18 percent tax increase, while acknowledging that she hoped the actual property tax increase may be less after final budget figures are compiled by county staffers.
Council member Nolan Gunnell seconded Tidwell’s motion and the council voted 6-to-1 to approve it.
In 2024, the council voted to approve a Truth-In-Taxation notice for a property tax increase of up to 20 percent for 2025, but eventually followed through with a tax hike of only 12 percent.
The council members had been weighing the prospect of much more dire consequences in attempting to cope with preliminary estimates of a significant budget shortfall in 2026.
Based on submissions from county department heads on Aug. 19, County Auditor Matt Funk projected the 2026 budget to be more than $68.9 million, including a shortfall of $7.9 million.
Funk estimated that a 36 percent property tax increase would be needed to make up the full amount that $7.9 million budget shortfall.
That would translate to a $127 tax increase on an average Cache County home with a taxable value of $290,000.
During week-long consultations by Funk with Deputy County Executive Dirk Anderson, however, the pair found a $3 million windfall in a restricted capital fund account that could be transferred to the county’s general fund.
That reduced the looming budget shortfall to $4.9 million, which Funk and Anderson believe can be further reduced through a combination of general belt-tightening and spending reductions.
The price tag for county residents of the 18 percent property tax hike would be about $60 on the average local home, according to Funk.
At the Aug. 26 meeting, Anderson listed potential budgetary economies to be considered as including Immediate freezes on hiring, new contracts and travel by county personnel as well as a renewed focus on increased revenues from fee schedules for county services.
Funk added that new county estimates also suggest that this year’s sales tax revenues may yield an additional $1 million.
While expressing concerns about the unintended consequences of some of Anderson’s proposals, the members of the county council also reserved the right to suggest their own spending reductions.
Under the state’s Truth-In-Taxation law, taxing entities are required to hold public hearings if they want to increase property tax revenues beyond what their certified tax rates generates. The purpose of those hearings is to inform taxpayers about proposed increases and allow them to provide input before the increase goes into effect.
The date and time of the Truth-In-Taxation hearing for Cache County have not yet been announced.