Riverton's tax increment is a rebate to one developer, and the record should say so

Riverton City publishes a 0.00% property tax rate and says fees are imposed only "to pay for the actual cost of services or use of facilities" 6. Economic development is the third of its four strategic priorities, including to "Enhance the Riverton Town Center area" 7; its chamber page records a first step, that Riverton was, in its own account, the first Utah city to abolish the standard business licensing fee, in 2018 4. The return is sales tax. In the 2023 State of the City, Mayor Trent Staggs reported record sales tax revenue "over $11.2 million, an increase of 13% from the prior year and more than doubling in the last 10 years," alongside Costco's 160,000-square-foot facility and Mountain View Village Phase 2 2. In July 2021 he told the council the city had invested $40 million into the Western Commercial District 12. The FY 2026-27 budget message keeps the frame: economic development is "a key priority", and the Town Center project will "contribute to the City's tax base" 5.

Riverton pays for that with tax increment. The state's tax-year 2025 report on increment affecting public education lists the Riverton City Redevelopment Agency's Western Commercial District CDA at 100 per cent participation, base year 2016, ending 2043: $1,696,436 paid to the agency, nothing retained by the Jordan School District 11. The Salt Lake County auditor's report for tax year 2025 lists four Riverton project areas carrying $739,683,813 of assessed value, the two Western Commercial lines accounting for all $6,844,913 of full increment; the agency's entitlement was $2,895,799 8.

The city's audited report for the year to June 30, 2025 says where it went. The RDA 1 "received $2,935,877 of incremental tax revenues assessed and collected by other taxing entities for its Western Commercial District (WCD) project area. Of this amount, $2,775,336, was spent in developer infrastructure reimbursements and $160,541 as a tax increment rebate to Salt Lake County. In addition, the RDA spent $7,625 for administrative costs" 1. The same note gives the agreement: entered February 2, 2017, payable no more than 25 years from the first increment and capped at $35,000,000 net present value 1. The FY 2026-27 budget continues it: $3,100,000 of increment in, $3,100,250 out on the CDA project area 5. The developer's own entity is now the city's largest property taxpayer - Riverton Centercal LLC, $264,474,200 of assessed value, 3.16 per cent of the city total 1.

The RDA board is the mayor and the city council 1. On March 1, 2022 it added two community reinvestment areas over the Town Center, voting 4-0 (Buroker, McCay, Stewart, Wells; McDougal had left) to set participation at 75 per cent for 25 years, up from 70 per cent for 20 13. Chair Staggs said the tool had been used "throughout the City to entice developers to develop land in Riverton" 13. On September 16, 2025 the council took up conveying .72 acres of city land to the agency for the 12600 South area 9. So far, that report still shows Redwood Road at $9,263,065 of assessed value and $0 of increment, and 12600 South at $37,614,412 and $0 8.

The return the city claims has stopped growing. General fund sales and use tax was $13,064,842 in FY 2024-25, $13,260,000 adopted for FY 2025-26 and $13,313,000 proposed for FY 2026-27 5 - under 2 per cent over two years, against the mayor's own figure of a 230 per cent rise across the previous decade 3. On February 3, 2026, Administrative Services Director Nick Geer told the council that tax increment "averages around $2.8-3.1 million annually but largely balances out because it is reimbursed to developers and other taxing entities," and that sales tax is "already stretched across many City services and is slowing" 10.

Our judgement concerns the decision, not the motive. The Riverton City Council, sitting as the redevelopment agency board, chose in 2017 to reimburse the Mountain View Village developer from the increment, capped at $35,000,000 net present value, and in 2022 to run a 75/25 split for 25 years over the Town Center. But the city describes the increment as revenue; the record shows a pass-through, in which FY 2024-25 revenue of $2,935,877 plus $7,625 transferred in from other city funds equalled expenditure to the dollar 5. This page has argued before that Riverton's low-cost case to business was held down at the water meter; the fix was to publish the cost of service, and it is the same fix here.

Four things would change our mind. Publish a per-project-area statement each year - increment collected, reimbursement paid, cumulative paid against the $35,000,000 cap, and the year the CDA term ends. Publish the sales tax generated inside Mountain View Village, so the return can be set against what the Jordan School District and Salt Lake County forgo. State whether the two Town Center CRAs are expected to produce increment at all, having produced none in tax year 2025. And if the Town Center needs a direct subsidy, book it as a subsidy rather than inside the economic-development line.

Sources:

1 Riverton City Corporation, "Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2025" - Note 16, Redevelopment Agency of Riverton City: the RDA received $2,935,877 of incremental tax revenues assessed and collected by other taxing entities for the Western Commercial District project area, of which $2,775,336 was spent in developer infrastructure reimbursements and $160,541 as a tax increment rebate to Salt Lake County, with $7,625 in administrative costs; Note 21, Tax Abatements: the Feb. 2, 2017 CenterCal agreement, the 25-year limit from the first tax increment, the $35,000,000 net present value cap as of December 31, 2016, and the $2,775,336 paid to CenterCal in fiscal 2025; the RDA's governance by the City Council and Mayor as a blended component unit; and the Statistical Section's principal property tax payers listing Riverton Centercal LLC at $264,474,200 of taxable assessed value, rank 1, 3.16% of total city taxable assessed value, tax year 2024. https://www.rivertonutah.gov/Riverton%20City%20Annual%20Comprehensive%20Financial%20Report%20FY25.pdf

2 Riverton City, "Mayor Trent Staggs Delivers The 2023 State Of The City Address," Feb. 8, 2023 - record sales tax revenue over $11.2 million, up 13%; Costco's 160,000-square-foot facility; Mountain View Village Phase 2; and the two Community Reinvestment Areas in the Riverton Town Center. https://www.rivertonutah.gov/blog_detail_T55_R322.php

3 Riverton City, "Mayor's Message: Citizens' Priorities Shape the City Budget" - sales tax revenue up over 230% in ten years and an anticipated $13 million for FY 2025, described as a slight increase from the previous year. https://www.rivertonutah.gov/blog_detail_T55_R418.php

4 Riverton City, "Chamber of Commerce" - the South Valley Chamber serves as the official chamber for Riverton, and for Draper, Sandy and South Jordan; the city abolished the standard business licensing fee in 2018. https://www.rivertonutah.gov/business/chamber.php

5 City of Riverton, "Riverton City Budget, Fiscal Year 2026-2027 - Adopted" - the mayor's budget message ("Economic development remains a key priority... contribute to the City's tax base"); the General Fund summary's sales and use tax of $13,064,842 actual FY 24-25, $13,260,000 adopted FY 25-26 and $13,313,000 proposed FY 26-27; and the RDA summary's $3,100,000 of tax increment revenue, $3,100,250 of CDA project area expenditure and $10,250 of Redwood Road project area expenditure. https://www.rivertonutah.gov/departments/finance/budget/FY%2027%20Riverton%20City%20Budget%20-%20Adopted.pdf

6 Riverton City, "Fees & Taxes" - the city's 0.00% property tax rate for 2026, its statement that fees are imposed as appropriate simply to pay for the actual cost of services or use of facilities, and the 7.25% Utah sales tax rate. https://www.rivertonutah.gov/finance/fees-and-taxes.php

7 Riverton City, "Strategic Priorities" - Strategic Theme #3, Economic Development: develop a proactive economic development strategy, attract and recruit businesses and retain existing businesses, and enhance the Riverton Town Center area. https://www.rivertonutah.gov/government/strategic-plan.php

8 Office of the Salt Lake County Auditor, "County Auditor Report on Community Reinvestment Agency Act Project Areas," Salt Lake County, Tax Year 2025, dated 3/25/2026 - Riverton City's four project areas: Western Commercial Cmty Dev't (assessed value $330,657,142, full tax increment $3,273,905, entitled amount $2,895,799), Western Commercial Cmty Dev't - Non Collection Area, listed as Project Not Yet Triggered ($362,149,194, $3,571,008, $0), Redwood Road CRA ($9,263,065, $0, $0) and 12600 South CRA ($37,614,412, $0, $0), with totals of $739,683,813, $6,844,913 and $2,895,799. https://www.saltlakecounty.gov/globalassets/1-site-files/property-tax/home/taxincrementreport.pdf

9 Riverton City, public notice of intent to provide assistance to the Riverton City Redevelopment Agency for the 12600 South Community Reinvestment Project Area Plan under Utah Code Ann. Sec. 17C-1-207, published Aug. 27, 2025 for the City Council meeting of Sept. 16, 2025 - the conveyance of approximately .72 acres, Salt Lake County parcels 27-34-226-028-0000 and 27-34-226-029-0000, to the agency to enable project area development. https://www.utah.gov/pmn/files/1315031.pdf

10 Riverton City Council, meeting minutes, Feb. 3, 2026 - Administrative Services Director Nick Geer's budget study on revenues: tax increment averaging around $2.8-3.1 million annually but largely balancing out because it is reimbursed to developers and other taxing entities; sales tax already stretched across many City services and slowing. https://www.utah.gov/pmn/files/1393847.pdf

11 Utah Tax Increment Financing Projects that Impact Public Education, TY2025 - Jordan School District, Riverton City Redevelopment Agency, project 8603, "The Western Commercial Dist CDA," tax area 42C-0000, base year 2016, end year 2043, 100% participation, $1,696,436 increment amount paid and $0 district revenue retained. https://www.utah.gov/pmn/files/1494913.pdf

12 Riverton City Council, meeting minutes, July 20, 2021 - Mayor Staggs's statement that the city invested $40 million into the Western Commercial District. https://www.utah.gov/pmn/files/745719.pdf

13 Riverton City Redevelopment Agency Board, meeting minutes, March 1, 2022 - the Downtown Redwood Road Community Reinvestment Project Area public hearing; the interlocal agreement dividing increment 75% to Riverton City and 25% to the taxing entities; the recommendation to move from 70% for 20 years to 75% for 25 years; Chair Staggs's statement that the tool has been used throughout the city to entice developers; and the motions to exclude 1631 West 12800 South and 12850 South 1650 West and to amend the plan budget, each passed 4-0 by Buroker, McCay, Stewart and Wells. https://www.utah.gov/pmn/files/832859.pdf