Salt Lake City

City Council

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HB 262: Municipal Boundary Adjustment Amendments (Millcreek Annexation)

HB 262 is a proposal at the Utah State Legislature that could result in a boundary adjustment between Millcreek and Salt Lake City. The adjustment would significantly and negatively impact the City’s residents and tax revenue.

Why the Council Opposes HB 262

The magnitude of this issue is huge, with significant unintended consequences.
This complex issue hasn’t been fully vetted by either city. Reducing predictability on boundary
adjustments affects tax base stability and could:

  • negatively affect cities’ abilities to plan for services and budgets
  • affect economic development efforts
  • affect cities’ bond ratings
  • subject other annexations to re-negotiation
  • flout the existing process for boundary adjustments

Involving the Legislature harms Salt Lake City and Millcreek’s relationship and threatens the autonomy of all Utah’s Cities. It’s unnecessary: without the threat of legislation Salt Lake City welcomes the opportunity to collaborate with Millcreek.

Key Points

Key Financial impact: Millcreek’s annexation plans would cost Salt Lake City taxpayers nearly $2.6 million in lost revenue from Brickyard alone (and almost $8 million based on Millcreek’s full general plan).

Salt Lake City’s recent sales tax increase for safety, housing, transit and streets relies on revenues from Brickyard.

Millcreek’s assertions are surprising: The Brickyard has never been in Millcreek and they didn’t ‘lose’ that revenue. Millcreek’s proposed boundaries and tax base existed for years prior to their incorporation.

The Brickyard was never part of Millcreek; it was legally annexed into SLC from unincorporated county over 40 years ago, based on property owners’ petition. In 2003, Salt Lake City attempted to “square up the boundary” but stopped when some residents said “no.”

Impacts to residents: with this gap in the budget, Salt Lake City residents would have to pick up the tab for City services.

Millcreek’s draft General Plan calls for annexing hundreds of more acres in Salt Lake City and other cities – if this starts, where does it end?

Millcreek’s General Plan calls for more possible annexations:

Proposed Millcreek Annexation Boundary Map

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