A simple summary of the Mayor's proposed $314.5 million budget for July 2026 through June 2027. This budget is not final until it's passed by the City Council.
How the process works →
I built this guide so Provo residents could see what's in the Mayor's FY 2027 budget without reading 150 pages. I'm Jeff Whitlock, City Council Member for District 2. This guide is independent. It is not an official city publication.
Sources: Mayor Marsha Judkins' Tentative Budget book (April 30, 2026), the city's Detail Sheets, and public city sources. Page references and editorial choices are in the About tab.
What this guide is not: The final budget. The Council reviews, edits, and adopts the real thing in June. See the Process tab for what's still up for debate and how to weigh in.
If you only read one thing about the proposed FY 2027 budget, read this.
Provo's property tax stays the lowest in Utah County. The proposal balances mainly on a strong sales-tax year and the dividend Provo earns from owning its own utilities. Both are worth watching, but neither requires a tax hike this year.
Those utilities run on your monthly bill, not your taxes, and they send the General Fund about $17M a year (roughly 18% of it) as a "dividend" on residents' investment. That transfer is the main reason your property tax is the lowest in the county.
Property tax, residential power, sewer, and trash all hold steady. The only household changes are water (+6%, a few dollars a month) and a $1 compost fee. The larger power increases (4–10%) fall on businesses, not homes.
All sources, all funds
Spending by fund type
Note: Enterprise Funds look huge because they include $30M+ of wholesale power Provo buys from the Utah Municipal Power Agency and resells to residents.
Cities don't have one giant bank account. They have several, each for a different purpose.
| Fund Type | What it pays for | FY 2027 |
|---|---|---|
| General Fund | Day-to-day services: police, fire, parks, streets, planning. Funded by taxes and fees. | $86.0M |
| Enterprise Funds | Utilities you pay a bill for: power, water, sewer, sanitation, airport. Self-funded. | $163.6M |
| Internal Service Funds | Shared back-office stuff: insurance, vehicle maintenance, IT. Other departments "buy" services from these. | $27.9M |
| Special Revenue Funds | Earmarked sources: Library, Justice Court, grants, Emergency Response, Covey Center. | $17.6M |
| Capital Improvement | One-time investments in physical infrastructure: roads, parks, buildings. | $11.6M |
| Debt Service | Paying down past bonds and loans. | $7.9M |
| Total (All Funds) | $314.5M | |
This is the General Fund. It pays for police, fire, parks, and core services. It's the $94 million pot most political fights are over.
| Source | What it is | FY 2027 | % of GF |
|---|---|---|---|
| Sales Tax | 1¢ of every $1 you spend in Provo. Largest single source. | $30.3M | 32% |
| Utility "Dividend" | 12.5% of utility revenue transfers to the General Fund. Treated as a return on residents' investment in city-owned utilities. | $17.3M | 18% |
| Other Fees | Building permits, rec center, ambulance, business licenses, etc. | $13.1M | 14% |
| Franchise Fees | Up to 6% charged to utility companies operating in Provo (gas, telecom, etc.). | $11.9M | 13% |
| Property Tax | Your home's annual property tax bill. Provo's general operations rate is the LOWEST in Utah County. | $7.5M | 8% |
| Road Tax (B&C) | State-distributed gas tax for road maintenance. | $5.3M | 6% |
| RAP Tax | Voter-approved sales tax for Recreation, Arts & Parks (passed Nov 2025). | $2.1M | 2% |
| Everything else | Fines, licenses, interest, grants, other taxes. | $6.8M | 7% |
| Total General Fund Revenue | $94.2M | 100% | |
Sales tax is up 14% from last year's projection. That's the main reason the budget balances without a property tax increase.
Sales tax came in stronger than expected through FY 2026. The FY 2027 budget assumes it stays strong, adding ~$3.6M over the FY 2026 original. If retail spending slows, this is the assumption that breaks first.
When you buy something in Provo, you pay 7.45% sales tax. Most goes to the state and county. Provo's slice comes from the Local Option Sales Tax, which Utah law splits roughly in half:
Note: Provo does not receive Utah's 4.85% state sales tax directly. The $30.3M in this budget is primarily local-option distribution. A point-of-sale vs. population-pool breakdown is not published in the budget book.
$86M for everyday services. Gross spending is every dollar the department spends. Net cost is spending minus the revenue that department generates. The two views tell very different stories.
Net cost = gross expenditure minus the revenue that department directly generates (fees, charges, intergovernmental). Sourced from each department's revenue/expense table in the budget book (p.47–58). Departments shown with $0 revenue are pure cost centers that don't charge user fees.
Self-funded by your utility bills, not your taxes. Energy dwarfs everything because most of its budget is wholesale power Provo buys and resells.
| Utility | What it does | FY 2027 |
|---|---|---|
| Energy (Power) | Generates, buys, and distributes electricity to Provo homes and businesses. | $82.1M |
| Wastewater | Sewage collection, treatment, and infrastructure. | $29.1M |
| Water | Drinking water, including the brand-new treatment plant opening Jan 2027. | $21.3M |
| Airport | Provo Municipal Airport operations. | $15.4M |
| Sanitation | Trash, recycling, compost. | $7.6M |
| Utility Transportation | Road-maintenance fee collected on your utility bill, assessed by estimated vehicle trips. Funds street maintenance. | $3.3M |
| Peaks Ice Arena | City-owned ice arena. | $2.5M |
| Golf Course | Timpanogos Golf Course operations. | $2.3M |
Tax and fee changes that will (or won't) hit your wallet.
Provo's general operations property tax rate stays the lowest of any city in Utah County. For a primary residence at Provo's median value ($437,100), the city property tax bill is roughly $385/year under the current rate (0.001599 applied to 55% of market value, after Utah's 45% primary-residence exemption). Non-primary residences (rentals, second homes) pay the full rate, roughly $700/year at the same value.
Following the schedule the Council approved last year. Funds inflation and aging-pipe replacement. A typical household sees a few dollars more per month.
Your residential power bill stays where it was.
Small commercial +4%, large commercial +7%, industrial +10%. First real adjustment since rates went flat from 2016 to 2022. Costs caught up with rates.
The composting "rooftop fee" shifts from $1 per account to $1 per residence. Mostly affects HOAs that had hundreds of cans on a single account.
Wastewater, storm drain, and standard sanitation hold steady.
Provo owns its power utility. Cities served by private utilities don't have that control over residential rates.
Provo City Power, 2026. Sourced from public utility comparisons.
Roughly 30% higher than Provo. Provo residential customers pay among the lowest rates in the country.
Provo residential rates compared to ~100%+ national average growth over the same period. Source: figures presented at Provology (city citizen budget program); the 30-year series is not independently re-verified here.
General operations property tax rate, certified 2025. Provo has the lowest rate in Utah County and ranks below several Salt Lake County peers as well. Lower is better for taxpayers. The chart below shows a representative sample of 15 cities; bar lengths are approximate (relative ranking is exact; exact rates for each city are published at taxrates.utah.gov).
Where physical investment is happening. Mostly utility infrastructure. Click any tile for the story behind it.
New sewer lines on Provo's west side, where most new growth is happening. $17M more proposed over FY28–31.
WastewaterImprovements to water mains, service lines, and fire hydrants. Aging-infrastructure replacement.
WaterNew larger storm drain trunkline from University Ave to Foothill Drive to Canyon Road. Relieves capacity issues.
StormwaterFinal construction. Opens fall 2026 / Jan 2027. Lets Provo use more of its existing water rights, adds ~$1.4M/year operating cost.
Water · Opens 2027Developing the city's underground water rights. Funded by impact fees on new development.
WaterPark improvements and recreation infrastructure across the city.
ParksClass B and C road improvements funded by state-distributed gas tax.
StreetsOngoing Airport capital improvements.
Airport17.8 net new positions, bringing the total to 975. The biggest hiring story: firefighters and a new water plant.
$332K. Reduces costly Fire overtime, improves coverage. Pays for itself versus paying overtime.
Fire$605K + $785K operating. Plant manager, supervisor, and operators for the new treatment plant opening in 2027.
Water$164K. Doubles cybersecurity capacity (the city previously had just one cyber pro for ~115K residents and city systems).
IT$113K. Converts a vacant position to a certified field inspector, speeds up the permitting process.
Development$157K (Airport revenue). Dedicated to constant systems monitoring at the airport.
Airport$211K. Doing concrete removal and patching in-house instead of contracting it out.
Streets$99K. Extends hours of operation and expands compost services. Funded by the $1 rooftop fee change.
Sanitation$105K. Frees up other staff for proactive sewer repairs.
WastewaterThe Mayor proposes. The Council adopts. Public input shapes what happens in between.
| When | What happens |
|---|---|
| Apr 30, 2026 | Mayor Judkins presents the Tentative Budget to the Council. This guide describes that proposal. |
| May 2026 | Council holds work meetings. We review every department, ask questions, and identify changes we want to make. |
| May 12, 2026 | Council tentatively adopts the proposed budget. This is a procedural step that keeps the process moving. It is not final approval. |
| June 2026 | Two public hearings. Any resident can speak. Council can amend the budget based on what we hear. This is where public input matters most. |
| By June 30, 2026 | Council votes to adopt the final FY 2027 budget. Utah law requires adoption by this date. |
| July 1, 2026 | FY 2027 begins. The adopted budget becomes the legal working budget for the year. |
Most things. The Council can reallocate spending between departments, add or cut line items, change rate adjustments, or push back on staffing decisions. A few examples of what's still up for debate:
The Council's job is to represent residents in shaping the final budget. Public input is how that happens. At hearings. By email. In conversation. "I don't agree with X in the Mayor's proposal" is exactly the kind of feedback we're looking for during budget season.
Context for the city behind the budget.
Provo models its General Fund out 10 years. The chart below uses the city's published assumptions as defaults. Adjust the dials to see how different growth scenarios change the outlook, or try one of the preset scenarios.
| Category | Annual growth rate |
|---|---|
| Sales & Use Tax | 4.0% |
| Property Tax (new construction) | 2.5% |
| Franchise Tax | 1.0% |
| Lodging Tax | 3.0% |
| Development Services Fees | 2.5% |
| Parks & Recreation Fees | 2.5% |
| Public Safety Fees, Ambulance, Interest | 2.5% |
| Utility Sales (drives transfers) | 2.0% |
| Payroll (COLA, merit, market) | 3.5% |
| Defined Contribution Retirement | 1.0% |
| Health Insurance (after FY27) | 5.0% |
| Water utility rates (FY27) | 6.0% |
| Utility rates (ongoing) | 2.5% |
The interactive model above simplifies the city's full ~14-variable spreadsheet into 4 dials. Defaults are calibrated to match the budget book's published General Fund projection on p.126 (FY 2036 revenue $126.5M, expenses $122.3M, surplus $4.1M). Numbers won't match the city's published model exactly but should track the same directional sensitivity.
Who built it. Why. Where the numbers come from. The editorial choices behind it.
An independent summary of the Mayor's Tentative FY 2027 Budget for Provo. The goal: make a 150-page budget book understandable at the kitchen table, without inflating or downplaying what's in it.
This is not an official city publication. It is not the final adopted budget. It does not cover the Storm Drain Service District or Provo City Redevelopment Agency. Those are legally separate entities with their own budgets.
I'm Jeff Whitlock, Provo City Council Member for District 2 (term Jan 2026 to Jan 2030). I built this guide from the publicly available tentative budget materials. The goal is informational. I'm not advocating for or against specific elements of the Mayor's proposal here. Where I've used editorial framing (calling the utility dividend "unusual," for example), I'm adding context, not endorsement. Where I disagree with the proposal, that goes in a separate post, not in this guide.
This is an independent summary. It can contain mistakes. If a number disagrees with the source budget book, please flag it. Corrections strengthen the summary's credibility for everyone. I also want to hear what residents think about the budget. Council input is most useful before the June public hearings.
Reach me directly: