Salt Lake City eked out a budget this year that includes a 12.5% hike to its share of property taxes after extensive internal cuts and forgoing a cost-of-living raise for many employees.

Tuesday night’s approval of a $498.2 million general fund plan as part of $2.1 billion in overall spending also comes with a substantial lift in utility rates for homeowners and businesses, all as the city copes with its own rising cost on many basics.

The unanimous vote followed weeks of lengthy and intense hearings and debate borne partly of concerns for the possible impact on financially strapped residents as well as the city’s broader financial outlook.

City Council Chair Alejandro Puy called it “one of the toughest budgets in a long time.”

For all its cost-cutting, city officials could not completely rule out a tax hike as part of next year’s budget, particularly in the face of inflation and ongoing federal cuts being pushed down to the local level.

The council thanked Mayor Erin Mendenhall, who preceded submitting the general fund plan for review with a call at City Hall for nearly $13.2 million in cuts and savings across departments. Nearly $3 million of that comes from leaving unfilled job vacancies empty.

As approved, the 12.5% bump in the city’s share of property taxes will raise about the same amount, or $13.5 million.

The money will cover additional firefighting resources; maintenance for public lands and parks; expanding the city’s criminal justice system; maintaining the city’s vehicle fleet amid spiraling fuel costs; and continuing key youth and family programs in light of losing federal grants.

The final budget ruled out an across-the-board pay boost for city employees to reflect rises in the cost of living, although union employees such as firefighters and police, will see salaries go up under pre-agreed contracts.

As recommended by Mendenhall, the budget cuts roughly $382,900 in city subsidies to the Hive Pass program for public transit, which began as a pilot program in 2014.

The handful of residents who’ve spoken out at public hearings on the budget this year have highlighted the Hive program, as well as boosts in police spending and the prospective increases in water rates

A statement from Puy issued after Tuesday’s council vote said the budget “reflects choices that protect essential services, invest in our neighborhoods and position Salt Lake City for long-term success.”

Property taxes will rise about $9.87 monthly for a typical home in Utah’s capital under the latest spending plan, and by a $28.74 a month monthly for commercial properties valued at $1 million.

The 2026-2027 spending scenario also raises monthly rates on water, sewer, garbage, street lighting and stormwater services, with the average home expected to pay $32 a month more.

City Council member Victoria Petro, who raised concerns in recent weeks over the effects of cost increases on blue-collar residents in her west-side District 1, said before Tuesday’s vote there were more worries about rises in water rates than the hit to their property tax bills.

Although the council already signed off on the property tax boost, it won’t be finalized until it goes through Utah’s truth-in-taxation process in August.

On top of the city’s proposed tax boost, Salt Lake County also has a property tax increase coming of its own this year.

Much of the City Council’s budget wrangling this year has been focused on averting a deeper spending gap — and possible additional tax hikes, cuts or even employee layoffs — in upcoming years.

The city is already eyeing for next year a plan to impose new fees on tickets for events at certain publicly supported venues, including sports arenas, movie theaters and performance halls.

The Mendenhall administration is also exploring a new transportation utility fee, to be levied for road maintenance and repairs.