Nibley staff couldn't find a city agreement with its redevelopment agency, so the council approved one

Nibley's City Council voted 4-0 on Aug. 21, 2025 to approve Resolution 25-27, an interlocal cooperation agreement between the city and its community reinvestment agency, and waived a second reading. Councilmember Garrett Mansell made the motion and Councilmember Norman Larsen seconded it. The minutes record no council discussion. ^[1]

The council approved those minutes 5-0 on Sept. 10, 2025. ^[2]

The missing record

City Manager Justin Maughan told the council that the agency is a separate legal entity with its own board, created in 2022 to allow tax increment financing, according to the minutes. It had interlocal agreements with Cache County and the Cache County School District, but staff could not find a record that it had entered one with Nibley City. ^[1]

Maughan said the project area plan included a trigger date based on 2025. Because no development had occurred on the property, staff consulted with consultants, who advised the mayor and staff to let the plan trigger and begin collecting tax increment even though the amount would be small. The consultants preparing the trigger paperwork needed documentation of an agreement between the city and the agency. ^[1]

The agreement form in the council's Aug. 21, 2025 packet is undated and unsigned. It says the city will authorize the county to pay the agency 75%, as specified in the project area budget, of the annual property tax increment the area generates in the city's share, from Year One through Year Fifteen. Year One is set by the agency, which is to trigger the area for collection no later than 2025, and the agreement ends after the final Year Fifteen payment or under any sunset in the project area budget. It covers only taxes the county actually collects. The 75% applies to the city's increment, not to all taxes in the area. ^[6]

Because the packet contains only the form that was put before the council, it shows the terms presented, not that the agreement was signed, that a trigger request was sent or that any money has been collected. ^[6]

The Malouf project area

A 2022 hearing notice from the Redevelopment Agency of Nibley City described a draft plan and budget for the Malouf Community Reinvestment Project Area. The draft budget proposed up to $13,889,196 in property tax increment from five taxing entities, including $2,529,411 from Nibley City, and said increment would be generated only if the area develops and would go to the agency only from entities that agree to share it. Those were proposed amounts, not collections. ^[3]

The money so far

In fiscal 2025, which ended before the council's vote, the agency's fund had no revenue, spent $4,000 and ended the year with $500. ^[4]

The fiscal 2027 budget gives the fund $4,500 in revenue and $4,500 for professional services, and budgets no transfer from it to the General Fund. ^[5]