Financial Fun with Devyn Dayley, Episode 2: Truth in Taxation

5 мая, 2025 /
Александр Глейвс /
Financial Fun, Новости, Суперинтендант, Обновления/объявления

In this new series, Superintendent Dau will discuss PCSD’s finances with the Business Administrator, Devyn Dayley. Tune in for their latest video update to stay informed on some of the key discussions concerning the financial side of Provo City School District.

Wendy Dau: You used a term that, I don’t know, that everybody knows what this is, and it’s called Truth in Taxation. I mean, they probably can figure out it’s taxes, right? But let’s talk a little bit about what that process looks like.

Devyn Dayley: At the very beginning of the budget cycle, we start working on our tax rates that we will.

Charged to all of the homes in pro and businesses. We set the revenue. We don’t set the rate. So every year, if we bring in the same amount of revenue as we did in the prior year, plus any growth that the city has, then we don’t have to do a truth in taxation. It just, it, it’ll adjust the rate based on what that revenue is.

But if we find that we have additional needs within the district, then you’re gonna have to go and ask the public, ’cause a 4% increase on the WPU sounds great. And I know the legislature came out and said 4% for everyone. It’s a party. You know,

Wendy Dau: It doesn’t, doesn’t, it doesn’t work like that.

Devyn Dayley: The, the WPU funding is a little bit less than 30% of our total revenue that pays for all of our teachers, administrators classified, building maintenance. And that’s just custodial because the other part is part of a different fund, so. When you’re looking at a 4% increase, that’s only a portion of the money that gets that increase.

Венди Дау: Хорошо.

Devyn Dayley: If we wanted to do a 4% raise, you would have to make sure you don’t have any increases on insurance costs, utilities and food, and all of those things that we pay for.

And if that’s the case, then yeah, you could do a 4% across the board increase, but that’s never been the case. But anyway, the truth in taxation process is if we determine that we need to increase the revenue, then we will go back and, and create a new revenue amount and then that will set our rate,

Венди Дау: Хорошо.

Devyn Dayley: By the county. And so a lot of people assume that when the rates go up, we get a windfall. And that’s not the case because we set the rate at the revenue. And that revenue that we, that we end up as our tax levy does not include things like motor vehicle, recreational property, secondary homes and things like that.

That’s additional on top of that. So if you’re looking and saying, well, it’s saying you’re bringing in this much revenue and this is what our revenue was supposed to be, you have to add that in,

Венди Дау: Хорошо.

Devyn Dayley: To be able to really get a true number.

Wendy Dau: Okay, so one of the things that we have to identify is that somebody experiences a property tax increase.

They assume that that increase is all coming to us and they assume that everybody’s was increased. But my understanding is if that person received an increase. Somebody else’s property decreased.

Devyn Dayley: Correct.

Wendy Dau: The exception to that would be if there’s growth that’s happening within the city, right?

Devyn Dayley: Correct.

Венди Дау: Хорошо.

Devyn Dayley: So the county does an assessment every few years on all properties, okay. To make sure that the valuation is appropriate and somebody on one side of the city, their property may go up 40 or 50%. The valuation over a five year period. Another one may have a smaller increase, so their amount of the property tax revenue that they actually are paying is gonna be at a different proportion because their value of their home went up more.