At a public meeting on August 8, city council members voted unanimously to approve a tax increase that will increase property tax revenues by 30% in fiscal year 2025.

For a home valued at $873,000, that means paying about $68 more per year. The city expects the increase to generate a total of $388,000 in property tax revenue.

Financial adviser Katie Shepley said the increase is necessary because the city will need to budget for some new expenses, including higher legal costs and consulting fees. Hideout plans to invest in consulting for public relations, communications and annexation strategy.

Shepley said the city’s revenue is also expected to increase, thanks largely to the growth of the young community.

“Revenues are favorable due to an increase in expected building permits and inspection fees … some additional subdivisions, higher property taxes and sales taxes due to an increase in use permits, as well as an increase in fees,” she said.

She also explained Hideout’s unique relationship with the Military Installation Development Authority (MIDA), which helps generate tax revenue for the city.

MIDA is a state agency comprised of appointed, non-elected officials. It was originally created with the mission of supporting veterans and the military. MIDA partners with local governments, including Wasatch County and Hideout, to invest in large economic development projects that generate revenue for its programs.

These Wasatch County projects include much of the East Village resort expansion in Deer Valley, the Skyridge luxury golf course, and more.

In the case of Hideout, MIDA oversaw the development of several subdivisions – which has significant tax implications.

“The MIDA properties are the homes that were built in Deer Waters, Deer Springs, Klaim and Lakeview,” Shepley said. “These people, these settlements, pay taxes directly to MIDA, and MIDA then allocates those taxes to municipal funds and development funds.”

Utah law allows MIDA to collect the majority of property taxes in these neighborhoods for up to 40 years. Seventy-five percent of these tax revenues go to MIDA for further development, while 25 percent goes to Hideout for city expenses.

Part-time resident Deb Boyd told city council members she was “somewhat concerned” about this year’s property tax increase.

Shepley said the tax increase would have been significantly higher without the tax revenue from the MIDA properties.

“We said, okay, we should be able to use some of these MIDA municipal funds,” she said. “It actually lowered taxes.”

Of the additional $300,000 Hideout needs for its general fund this fiscal year, about two-thirds, or $215,000, will come from the transfer of MIDA tax revenue. The remaining third will come from the property tax increase.

Shepley said the investments would help improve the city’s financial situation.

“We are trying to find ways to develop and expand the city so that we become more self-sufficient – so that we can generate more business and sales tax revenue without burdening property owners,” she said.

The tax revenue Hideout receives through MIDA is only expected to increase: By fiscal year 2029, the agency estimates the city will receive about $1.3 million.