The city had planned to discuss a 10 percent property-tax hike at a City Council meeting earlier this week, but it suddenly cancelled the so-called "Truth in Taxation" hearing.

Officials believe the booming city has reached a population of 20,000 - contrary to the 2006 U.S. Census that pegs it at 12,000. If the bigger number holds, City Administrator John Hendrickson said the broadened tax base likely would cover the city's needs.

He said Eagle Mountain had filed for a Truth in Taxation hearing before it could study its numbers - and the filing deadline was approaching.

"Frankly, once we reviewed everything and went through our numbers, we realized growth alone should help us out," Hendrickson said Thursday. "So, we figured, why go through a Truth in Taxation hearing and ask for money we didn't budget for?"

Councilman David Lifferth was pleased that the city averted a tax hike, but said Eagle Mountain needs to add commercial and retail business to its tax base in order to avoid future property-tax increases and Truth in Taxation hearings.

Eagle Mountain expects to generate about $10,000 more than it received during the 2006-07 fiscal year. The property-tax rate, now at .001163, is a third less than last year's rate.

Under state regulations, the tax rate must decline as an offset to increased valuations.

"I never felt that you should keep a tax rate just because," Hendrickson said. "Of course, we increased our fire and police forces, and if we need to increase that again, since our city is growing, we may do a Truth in Taxation in the future."

But only then, Hendrickson said, would Eagle Mountain hike its taxes.

"Why raise taxes just to raise taxes? By the time they do all the evaluations and have final tax notices go out, frankly we'll meet our goal," he said.

sgehrke@sltrib.com