[0:02] like to welcome everyone to global

[0:04] council work April 14th, 2026 at 12

[0:08] noon.

[0:10] We roll to a roll call of the elected

[0:12] officials

[0:14] started with councelor Rachel Whipple.

[0:18] >> Uh Jeff Wock, Craig Christensen,

[0:21] >> Katrice M, Becky Bogden,

[0:23] >> Gary Garrett.

[0:24] >> Although this is a public meeting, only

[0:26] the presenters and those invited by the

[0:27] council may speak or ask questions.

[0:29] Unless otherwise am by the chair. Please

[0:31] wait to speak until called on by the

[0:33] council chair. When speaking, please be

[0:35] sure to use a microphone so the record

[0:36] is clear and those attending virtually

[0:38] can hear you. Please also be sure to

[0:40] limit side conversations as they

[0:42] interfere with the audio recording. If

[0:44] you need to have a side conversation,

[0:45] please step out of the work meeting

[0:46] room. Is proposed that we approve the

[0:49] following minutes. March 24th, 2026 work

[0:52] meeting. Are there any objections or

[0:55] requested changes?

[0:57] Seeing no objection, I declare the

[0:58] minutes approved by unanimous consent.

[1:05] First item of business is a presentation

[1:07] regarding the 2027 budget airport. This

[1:10] is presented by Brian Torus, our airport

[1:12] director.

[1:15] >> All right, we're waiting for the door to

[1:16] open, but it looks like we got here just

[1:19] in time. So, thank you, council. Thanks

[1:22] for having us today. We're going to make

[1:23] this pretty quick unless there are

[1:25] questions. Um, pretty similar budget to

[1:28] what we had last year. Um, just with a

[1:31] few highlights,

[1:34] maybe

[1:36] Kevin, you want to just advance for me?

[1:41] >> I forgot.

[1:48] » All right, there we go. So, just just to

[1:51] recap um part of what's included in this

[1:53] year's budget, which is a change from

[1:56] last year's budget budget time anyway as

[1:58] we added the three full-time

[1:59] firefighters mid year and we appreciate

[2:02] that. Um we are fully compliant with our

[2:06] FA requirements for ARF at this point.

[2:10] In fact, our FAA inspector is here

[2:12] tomorrow and Thursday. So, uh putting us

[2:15] through the ringer on on our

[2:17] certification, but we we feel pretty

[2:19] good about the way things are going and we should be just fine. So, um, and

[2:24] then just some moderate increases to

[2:26] several line items in the budget. Just

[2:28] anticipating

[2:30] end of this budget year that we're we're

[2:33] working on is is essentially 18 months

[2:36] from now and we'll have some of the new

[2:39] terminal operational or or close to

[2:42] operational at that point. And so, we've

[2:44] increased a few line items. Uh, can't

[2:47] remember the exact amount, but it's in

[2:49] your packet. There's a supplemental

[2:51] request. And then I'm currently at the

[2:54] airport.

[2:54] >> Did you mean the end of this year or the

[2:56] end of next?

[2:57] >> So the end of FY27, right? Um

[2:59] >> cuz you're still way off.

[3:01] >> Yeah. It's it's the beauty of budgeting

[3:03] in February, March time frame is is

[3:06] we're looking way out there. So um

[3:09] >> you're saying the bottom two are the end

[3:11] of this year.

[3:12] >> No, I'm saying just we're planning for

[3:15] increased operations at the end of FY27.

[3:18] That's why we've increased those line

[3:20] item budgets for maintenance of

[3:22] equipment and and other things like that

[3:25] because again this budget year takes us

[3:26] clear till July of 207.

[3:30] >> Yes. Okay. So these are for this budget

[3:32] though.

[3:32] >> Yes. Yeah. Okay. Thank you.

[3:34] >> Um sorry to confuse you on that. Um

[3:37] full-time systems analyst. Um currently

[3:40] we split a an is employee between us and

[3:43] public works. um we're getting to the

[3:46] point with all the systems and

[3:47] technology at the airport um where we we

[3:50] need that person full-time. So, we're

[3:52] just adding that additional part-time

[3:56] uh budget amount halftime, not part-time

[4:00] budget amount to the budget. And then,

[4:02] >> so you'd be hiring a full just for the

[4:04] airport.

[4:05] >> Correct. Um I hope it's the same person

[4:08] we have. Um Gordon might not like that we take him from public works, but

[4:13] um we'll work that out with is who that

[4:14] person ends up being. But we will have a

[4:17] full-time dedicated is employee at the

[4:19] airport. Um and then

[4:23] uh again, this is IS's responsibility to

[4:25] staff it, but also providing backup. So

[4:28] when that person takes vacation or or

[4:30] whatever, they're also on call, right?

[4:32] So um we operate nearly 24 hours a day.

[4:37] And so um having that backup person is

[4:39] also important um in

[4:43] the last one we have a part-time

[4:45] administrative assistant that we're

[4:46] looking to move to full-time just uh do

[4:49] the activity at the airport and all the

[4:51] interruptions that our poor executive

[4:53] office assistant has to endure

[4:55] throughout the day and and still try and

[4:57] get get their work done. So that's the changes in in the uh in the

[5:03] budget. Um, a few minor fee changes is

[5:07] all. Uh, we found that we were missing

[5:09] one of our badges in our in our fee

[5:11] schedule. Um, this is just a general

[5:14] aviation badge for for anyone who has

[5:17] business inside the non-commercial part

[5:19] of the airport. It was just missing. Um,

[5:22] something we overlooked. And then

[5:24] landing fees and terminal use fees.

[5:26] Those are are fees that we um increase

[5:30] based on CPI, at least for the moment.

[5:33] We have um I think we're in our second

[5:36] to last year of being tied to that

[5:38] contractually with the airlines. Um and

[5:42] obviously as operations increase that's two of our main fees that we

[5:49] charge to the airlines um that also get

[5:52] waved um during incentive periods as

[5:54] well. So

[5:56] >> those numbers are so small it's hard to

[5:58] have like perspective on it. I was

[6:00] curious like what kind of are we talking

[6:02] thousands of increase, tens of thousands

[6:04] of increase like overall for the year?

[6:06] >> It's not a ton. Just just on order of

[6:08] magnitude landing fees, we get about

[6:10] 600,000 a year in landing fees. Okay.

[6:14] >> So, it's I mean 3% more. Again, right

[6:17] now

[6:19] >> when Breeze came in, they they tied us

[6:22] to some pretty low landing fees by

[6:24] contract and we had to match that with

[6:26] the other airlines. So we we did that

[6:28] for 5 years. Um so we're hoping to see

[6:31] in the next few years more moderate

[6:33] increase around the 10% range or

[6:36] something like that. Um again it's a

[6:38] fine line. The airlines will claim that that's going to break the bank and

[6:42] people aren't going to fly and all that

[6:44] sort of stuff. So it's it's a fine

[6:46] balance and what we charge the airlines.

[6:48] But it is of note that those two fees

[6:50] get waved um in incentive period. So for

[6:54] a new route it get waves it gets waved

[6:56] for two years.

[6:57] >> So an incentive period is a new route

[6:59] and every new route gets two years of

[7:01] >> so for new routes with zero service it's

[7:04] two years for an existing route that

[7:06] they're adding frequency to like if

[7:09] breeze decided to serve a market

[7:10] allegant was in um they get it for 12

[7:13] months is all.

[7:14] >> So

[7:16] >> how do we compare how do we compare to

[7:19] Salt Lake for example on our fees? Uh we

[7:22] are extremely low.

[7:23] >> Much lower.

[7:23] >> Much

[7:24] >> how about to other regional airports?

[7:26] >> Uh we're pretty low still. Um just

[7:28] perspective, I don't know exactly, but

[7:31] we're in the we're in the realm with

[7:33] Ogden and St. George. Um again, I think

[7:36] that's the expectation of of the users

[7:38] and the airlines that we'd be a little

[7:40] bit lower. We don't have quite the

[7:44] >> um facilities that those large airports

[7:46] have. That's also what makes us

[7:48] attractive, right? um because those fees

[7:51] get to be pretty expensive when you're looking at $35 tickets, right?

[7:57] So, um we don't we don't foresee us

[8:00] raising those a ton. We're about number

[8:03] six in uh Allegiance Network as far as

[8:08] um sixth lowest. So, there's only five

[8:11] that are lower than us in Allegiance

[8:12] entire network. We just learned that

[8:14] last week when we went to our Allegian

[8:16] conference. lower fees.

[8:19] >> There's only five airports that have

[8:20] lower

[8:22] >> they call these um Whoa, sorry about

[8:25] that.

[8:27] >> They use these to determine what's

[8:28] called a cost per implainment.

[8:31] >> Um and we are like I say number six,

[8:35] there's only five lower than us.

[8:38] >> It'd be great next year to have a graph

[8:39] on that comparison.

[8:40] >> You got it. is.

[8:42] >> And then we we've thrown this around

[8:45] several times, but we we are removing

[8:47] terminal advertising fees um in favor of negotiated market rates for that um

[8:53] as strategy and marketing. People always

[8:57] have a different idea of how they want

[8:59] to advertise in the in the terminal. And

[9:01] so it's kind of hard to pinpoint exactly

[9:04] what that rate should be um

[9:07] because it does vary so so much. So, um,

[9:11] one thing that that I want to make sure

[9:12] and mention, um, as we committed to last

[9:16] year in the budget season, um, we are

[9:18] planning to take over the payment that

[9:21] is currently coming from the general

[9:23] fund for the Durant property purchase.

[9:25] Um, there's three or four years left on

[9:28] that. Four years, Jimmy's telling me,

[9:30] thank you, Jimmy. um on that um as well.

[9:33] I believe as part of that finance is

[9:36] preparing that transaction for the for

[9:39] this current year. Um but just know when

[9:41] that does come, we will be planning on picking up that payment at the

[9:46] airport in 27 and beyond.

[9:50] >> Now, I know that was always our goal

[9:52] >> and but I just curious, so financially

[9:54] that's not an extra strain on you like

[9:56] it's it does work out well and it you're

[9:57] at the right place.

[10:00] It's tricky, right? Um, our revenues

[10:03] look really good. March was our busiest

[10:06] month ever. Um, we had over 103,000

[10:10] passengers through the terminal. Our

[10:12] parking revenue was the highest it's

[10:13] ever been. So, the trend is in the right

[10:16] direction, but we also have fuel prices

[10:18] that are going the same way. And that impacts our airlines significantly.

[10:22] So,

[10:24] >> we we feel like it's going to be okay.

[10:26] Um, and if everything continues where we

[10:29] are today and doesn't decline, then we

[10:31] should be just fine. We're not counting

[10:33] on on needing

[10:36] significant increases to make it work.

[10:39] Um, like I say, our revenues do look

[10:40] good. Um, and as long as things don't

[10:43] decline drastically.

[10:45] >> Can you remind us, Brian, what that

[10:47] annual payment has been and what it will

[10:49] be?

[10:49] >> I think total principal interest is 600

[10:52] and something thousand um year

[10:55] >> per year. Uh Jimmy could tell us

[10:57] exactly, but I want to say it's around

[11:00] 130 interest and 400 and something in in

[11:04] principal. So,

[11:08] and just some some key accomplishments.

[11:11] Um we did see over 540,000

[11:15] passenger inflamements. So again, double

[11:17] that's the number of passengers in 2020.

[11:21] That's calendar year 2025.

[11:24] Um we think um we've been saying this a

[11:27] long time that that we're that close to

[11:29] small hub status and based on those

[11:33] numbers that puts us well within

[11:36] actually up six or seven airports into

[11:38] that small hub status from from years

[11:41] past. Now employments could have

[11:44] increased nationwide and so we don't

[11:47] know exactly but if the employments

[11:49] nationwide were what they were a year

[11:51] ago and we would be well within that

[11:53] small hub status which doesn't mean a

[11:56] whole lot other than our our competition

[11:59] pool for grant money for certain grants

[12:01] becomes smaller. Um and so

[12:05] anyway and that traffic represents a

[12:09] 20.4% 4% increase from from previous

[12:12] year. So, we're not seeing the 100%

[12:14] increase that we did in 23 and 24, but a

[12:18] 20% increase is still pretty

[12:20] significant.

[12:21] >> I know this the small hub status is a

[12:23] big deal.

[12:24] >> Um, is it only in playments that

[12:26] determines that or is there a report

[12:28] card?

[12:29] >> Yeah, so the way it works is it's based

[12:32] off a percentage of nationwide

[12:34] employment. So for small hub, I want to

[12:36] say it's less than 0.5% of nationwide

[12:40] employments or 0.05 or something like

[12:42] that. I can't remember the exact number.

[12:45] Um and then medium hub is, you know, the

[12:48] next tier, but even the large hubs like

[12:50] Salt Lake and Atlanta, it's only like 1%

[12:53] of of nationwide employment. So, um, but

[12:58] again, we are in the top

[13:01] what, 300 airports in the country, um,

[13:04] as far as commercial service, and

[13:06] there's over 3,000 airports in the

[13:08] country. So,

[13:11] um, again, we added the three full-time

[13:13] firefighters. Um, and this next one's a

[13:15] bigger one. We completed construction of

[13:17] Terminal Apron, which has been amazing.

[13:21] um we don't have to cram aircraft on the ramp and uh crowd them in other

[13:26] places on the airport. Um we are

[13:31] beginning construction of the North

[13:33] Taxiway

[13:34] Charlie hanger development. So that will

[13:36] provide infrastructure for 12 additional

[13:39] private hangers. Um and so that's being

[13:42] we we sent that out to bid just last

[13:44] week. We've already got hangers under

[13:47] design being submitted for building

[13:48] permits to fill in those spaces. So, we

[13:51] have a waiting list of probably 25 for

[13:54] those 12 hangers. So, we feel pretty

[13:56] good that those will be be uh filled up

[13:59] pretty quickly and then that adds uh

[14:01] several hundred,000 a year to our our

[14:04] revenue for ground lease um just off of

[14:07] those 12 hangers. So,

[14:08] >> so do we own all the ground the all the

[14:11] hangers are on?

[14:12] >> Correct. So the airport,

[14:15] we have to retain control of the

[14:17] property in perpetuity because we've

[14:19] obligated it through federal funds. And

[14:22] so and that's typical of every airport.

[14:24] So all of the property at the airport

[14:27] remains the property of the city. We

[14:29] just have a long it's it's typically the

[14:31] FAA won't allow anything longer than 50

[14:34] years, but our standard ground lease um

[14:38] upon which sits the hanger is 30 years

[14:40] with two five-year extensions.

[14:45] And then there's escalation

[14:48] uh divisions to to increase the ground

[14:50] lease rate throughout the term of the

[14:52] lease as well.

[14:53] >> And so because we own the ground, we can

[14:55] have rules on

[14:58] Uh yes, we have rules and regulations as

[15:01] well as minimum standards. So if you're providing a a commercial uh

[15:07] yeah commercial service of any kind um

[15:09] at the airport, then then that would

[15:11] fall under minimum standards. So to do X

[15:14] activity, you have to comply with this

[15:16] list. And then rules and regulations is

[15:19] just uh you know, don't speed, don't

[15:22] litter, whatever other rules we might

[15:25] have. But every lease is is um

[15:28] subordinate to the FAA uh rules,

[15:31] regulations, federal law, and our grant

[15:33] asurances, which we um every time the

[15:37] mayor signs a grant agreement, we we

[15:39] commit to this list of 49 different

[15:42] things that the FA requires. So, all of

[15:44] our leases are subject to all of those

[15:46] federal provisions as well.

[15:48] >> Now, in the past, I know we've had

[15:49] issues with people not having planes in

[15:51] their hangers or so. Has that been

[15:53] worked out? that it's a perpetual

[15:55] problem. Um, and we we get the

[16:00] lowhanging fruit and then we we move on

[16:02] and we we try and make the situation

[16:04] better that we've got one that I know of

[16:06] that we're still dealing with. Um, and

[16:09] there's some history there that makes it

[16:11] even more difficult. But yes, we are

[16:13] obligated to ensure that the hangers are

[16:15] used for aeronautical purposes only.

[16:19] Um, we added three non-stop routes.

[16:22] Raleigh, North Carolina. Don't know if

[16:24] all of you heard about that, but that

[16:26] will start in October. Las Vegas and

[16:28] Burbank.

[16:30] Uh we already talked about RF index C.

[16:32] Um and the bond that you were all so

[16:35] gracious to approve. And then uh some

[16:39] funding through earmarks through our

[16:40] federal uh representatives.

[16:44] And

[16:45] we just finished the installation of an

[16:48] automatic exit lane door. So the kind

[16:50] you see at Salt Lake that you walk

[16:52] through and the door slam behind you and

[16:54] if you try and walk backwards it screams

[16:56] at you. Um so that that's huge. That

[16:58] actually eliminates

[17:00] um one of the things with the budget

[17:02] process back in Washington is a lot of

[17:05] the funding for TSA as you know is being

[17:08] eliminated. And one of the first things

[17:10] they did to eliminate even when they had

[17:12] a continuing resolution was the TSA

[17:15] historically at our airport has has

[17:18] monitored the exit lane so that people

[17:20] couldn't come back through the door once

[17:22] they had exited the sterile area. Well,

[17:25] that was day one of the Trump

[17:27] administration that was eliminated which

[17:30] necessitated our employees to be at that

[17:33] exit which was a huge drain on our

[17:36] resources. Um but now with this um we

[17:40] have an officer there that now provides

[17:43] this door provides the the uh the

[17:47] barrier so to speak so that the the

[17:49] police officers that are already there

[17:51] can respond appropriately and if there

[17:54] is an issue whereas before they may be

[17:57] helping TSA in the bag check room or

[17:59] whatever and they someone could sneak

[18:01] through. So that's a big one for us. Um,

[18:04] we have a second one. So, currently we

[18:07] have one lane. We have a second lane

[18:09] that will be delivered here in the next

[18:11] month or two to give us two of those

[18:13] exit lanes. Um, and we have space for

[18:16] future additions as well. And then um

[18:21] something that's probably less visible

[18:23] maybe um is working with our storm water

[18:26] division. Um we've in installed a new uh

[18:30] pump which allowed us to fill in a lot

[18:33] of the airport moat um provide for

[18:36] additional parking space for rental cars

[18:38] and the um but all of that drainage has

[18:41] to get lifted up over the dyke and into

[18:44] the lake. We've had an old pump station

[18:47] there since the 70s. Um, and with all of

[18:50] the development, not just at the

[18:52] airport, but again at the regional

[18:54] sports park and that whole west side

[18:57] drains to the airport, um, between the

[19:00] airport and storm water, we've we're

[19:03] about 75% complete on that on that

[19:07] facility that that pumps that storm

[19:09] drainage up and over into the lake.

[19:13] Uh, just some performance measures here.

[19:15] Um, this is one, it's again based on

[19:17] employments. So in 2024 we were at

[19:20] 448,000.

[19:22] Again I we talked about uh in the

[19:25] previous slide our target was looks like

[19:28] it was 505,000. We surpassed that um

[19:32] with 545,000

[19:34] with and then the FA will add some with

[19:37] charters. We don't know those numbers

[19:38] until about August or September what the

[19:40] final number is. But and then uh

[19:46] so we even surpassed 2026's target.

[19:50] And that's all I had if

[19:53] there are any questions.

[19:55] >> Any questions? Um Council Whitlock.

[19:58] >> Yeah, just um I know we a couple we

[20:01] asked a similar question, but I just

[20:02] want to make sure I understood. So do we

[20:04] estimate when we hit that 5 550k target

[20:07] we'll hit that uh status the hub status?

[20:09] >> Yeah. Again so if you look at at 2024's

[20:12] in plainment numbers yeah

[20:14] >> that 550,000 that we hit this year would

[20:17] have put us

[20:19] >> six or seven airports up into that small

[20:21] hub status list. Again, depending on

[20:24] what the nationwide employments did this

[20:28] year in 2025, we don't we don't know

[20:30] until September, August, September of

[20:32] what the actual numbers are, but just

[20:35] given that um we feel pretty confident

[20:39] we'll be in that list.

[20:40] >> Great.

[20:42] >> Another question I had is um there's

[20:44] like a 20% year-over-year growth and

[20:47] what has been primarily driving that?

[20:49] Has it been new routes, uh more more

[20:51] flights within existing routes? Could

[20:52] you just explain the breakdown there?

[20:54] >> Yeah, so Breeze is probably a lot of

[20:57] that um

[20:59] and obviously American Airlines, but

[21:01] Breeze has has almost doubled their

[21:03] employments in the last in the last year

[21:06] um with new routes. Uh they took over

[21:09] the Aello service into Burbank, which helps, right? So when Abello

[21:14] exited Burbank, uh, Breeze added

[21:18] essentially everything that Aello was flying out of Burbank. They added

[21:22] all of that to their network plus added

[21:24] us into that mix. Um, Allegent has

[21:29] actually retracted a little bit um where

[21:33] Breeze surpassed Allegent in in sorry

[21:37] February, January and February and

[21:40] that's never happened. So, um, March

[21:44] Allegant edged them out by just a

[21:46] thousand or so passengers, but, um, I

[21:49] think mainly it's Breeze and their

[21:50] expansion plans here in Provo and and

[21:53] new routes obviously um, and just

[21:56] popularity.

[21:57] the these airlines put these schedules

[21:59] out three months in advance and if if

[22:01] things are booking they add frequency

[22:03] and so um I think it's a lot of things

[22:06] people are

[22:08] awareness is going up that you can get

[22:10] on an airplane in Provo even though it's

[22:12] still really low um we find about six

[22:15] out of 10 people still don't know that

[22:17] you can get on an airplane in Provo um

[22:20] which is something we're working on but

[22:22] so yeah I think just everything together

[22:24] word of mouth people

[22:26] um once they use the airport and the

[22:29] options are there, why would you not use

[22:32] it? Um so we're getting a lot of re

[22:35] repeat passengers as well.

[22:39] >> Um if I can ask a couple more

[22:41] follow-ups. Uh how much more are we able

[22:44] to grow realistically within our

[22:47] existing footprint? I know we're doing

[22:48] the expansion but from the existing

[22:49] footprint.

[22:50] >> Yeah. So, we did an exercise early on if we were to max out every conceivable

[22:57] option for just for just apron space.

[23:00] Um, really we couldn't get past 12 what

[23:04] 12 gates without going out into the lake

[23:08] and all that sort of stuff. So, I mean

[23:12] forever is a long time, right? So, who

[23:15] knows what happens in the future, but realistically

[23:19] this expansion that we have is just

[23:21] about as big as we can get. Um,

[23:24] >> what I was asking with prior to the

[23:26] expansion on the existing kind of

[23:27] footprint, how much more can we go

[23:29] before we basically say that is at full

[23:30] capacity?

[23:32] >> Oh, we're there.

[23:33] >> We're there effective.

[23:34] >> Yeah. In fact, um when Breeze added

[23:37] Raleigh, I had to tell him, "Sorry, I

[23:40] can't accommodate you on that day

[23:42] because we're already full."

[23:44] >> Um now, that doesn't mean we're full 24

[23:46] hours a day, but we have three really

[23:48] busy times. First thing in the morning,

[23:50] around noon, and then at night. And

[23:53] that's that's similar with every

[23:54] airport. So, right now, we're at full

[23:57] five gate capacity in the morning, at

[23:59] noon, and at night.

[24:01] >> Yeah. Um, so and then so I saw that

[24:05] we're still we're still on a a deficit.

[24:10] Um, so it's like uh and and then we're

[24:14] using that we're using bonds to

[24:16] basically cover the current deficit.

[24:18] What's the plan? Like is the expansion

[24:19] going to hit us on re on revenue and

[24:22] costs? Is that not correct?

[24:24] >> I'm gonna let Jimmy

[24:25] >> right behind you.

[24:28] Jimmy Mcnite. Um we have included in the

[24:32] operating costs that you you saw in the

[24:34] packet. We have some bond payments that

[24:37] are being made from uh grant grant funds

[24:41] from the previous terminal that were

[24:43] loans from UD do. So, it's it's a little

[24:46] deceiving, I think, but I don't know how

[24:49] else to show it because

[24:51] >> it's it's previous year revenue that's

[24:53] paying off an existing debt payment and that comes out this year, maybe 27.

[24:58] So, going forward, that that should

[25:00] change and we'll have we'll have new

[25:02] loans, but it should it should line up

[25:03] better with with the revenues.

[25:07] >> Okay. We just had um a loan that had to

[25:11] be paid off by some mag money that is

[25:14] just taking some time. But we did we

[25:16] received the mag money. So it's just fun

[25:18] balance that's paying that or just a

[25:20] reserve

[25:22] from that revenue that was received

[25:23] that's still just paying off of them.

[25:25] >> Okay, that makes sense.

[25:27] >> When you have so many different sources

[25:29] of revenue from different agencies, the

[25:31] accounting of that gets pretty

[25:33] complicated. And I I really appreciate

[25:36] Jimmy and our finance team that that

[25:38] keeps it all straight. So literally it it is a mess when you're paying off

[25:44] different loans and at different times

[25:47] and and floating cash and and those sort

[25:49] of things. So um but to answer your

[25:51] question as far as the funding for the

[25:54] terminal um we are under construction or nearly under construction of phases

[25:59] two and three. So, um that that it

[26:02] builds the entire north side expansion.

[26:06] That gives us potentially eight total

[26:09] gates. Um after that, also this summer,

[26:13] we're going to uh do some work in the

[26:16] parking lot to pave the parking lot,

[26:18] which is becoming increasingly important

[26:21] just based on on public input.

[26:25] Obviously, gravel is not a great

[26:26] situation. So, um, we're looking to pave

[26:29] the parking lot. That's about as far as

[26:31] the money takes us. And so, for the

[26:34] southside expansion, we still have the

[26:37] county bond um that was

[26:41] approved by the county commission and

[26:42] also by by this council. Um, we don't

[26:47] feel like that bond will get us the

[26:50] entire southside expansion, what we're

[26:52] calling phase four. And so we're working

[26:55] again, we've we've made application to

[26:56] the FAA for more um AIP dollars as well

[27:01] as we're working with Congressman

[27:03] Kennedy and Senator Curtis again for for

[27:05] additional

[27:07] and those earmarks are it used to be

[27:11] that that pot of money that's being used

[27:13] for earmarks came out as a competitive

[27:15] process through the FAA. That's no

[27:18] longer the case. It's all being done

[27:20] through what's called congressionally

[27:21] designated spending. And so if our if

[27:24] our federal partners don't ask for that

[27:27] money, it will go to another airport.

[27:30] It's not taking away from any other

[27:32] program other than airports. And so um

[27:35] fortunately, they've been really good to recognize that um and help us with

[27:39] some funding. So um worst case, we have

[27:42] to pump the brakes on the Southside

[27:44] expansion for a little bit just to let

[27:46] the funding uh picture catch up,

[27:49] >> but we're we're really close. We we

[27:51] think we're probably 10 million short of

[27:54] finishing all all of the expansion

[27:56] that's that's been envisioned. So

[27:59] >> sorry I just want to make sure I

[28:00] understand this last thing. So the thing

[28:02] you're talking about is that what's

[28:03] listed as chargebacks here?

[28:04] >> Other Okay. What are chargebacks?

[28:07] >> So chargebacks are what airport pays for

[28:10] other city services. So for finance.

[28:12] Okay.

[28:12] >> Um pay payroll and everything like that.

[28:15] >> So then and and these are is this

[28:18] budgeted or actuals? That's budgeted for

[28:20] the current.

[28:21] >> Are we on are we how are we on tracking

[28:24] relative to the budget?

[28:25] >> Great. As you know, as Brian mentioned,

[28:27] as long as things continue to go well

[28:29] for the next two and a half months.

[28:30] >> Okay.

[28:32] >> So, effectively, I I'm just trying to

[28:34] get like the big picture. So,

[28:35] effectively, we're operating just above

[28:37] break even.

[28:39] >> Yes.

[28:41] Something that's helping us a lot

[28:44] right now is we have a lot of cash in

[28:46] the bank um that's generating a lot of

[28:48] interest. So those will go towards

[28:50] paying off the project that we're

[28:52] building. But right now we're enjoying

[28:53] some some interest revenue off of that

[28:55] away as well that's helping us in a

[28:57] significant way that shows up in our

[28:59] operating count. But but really that's

[29:01] going back into the project. So um we're

[29:05] trending well. The revenues historically

[29:08] last two years have come in well above

[29:09] budget and we don't see that changing

[29:11] this year at all.

[29:14] The thing I'm trying to understand is so

[29:16] if we're operating on the existing

[29:17] footprint at basically break even and

[29:19] then we're doing uh it sounds like maybe

[29:22] there's a bit more revenue coming in

[29:23] once we do these hanger expansions but

[29:25] effectively full capacity is break even

[29:28] then we're going to do some expansions.

[29:30] My question is is like is there a shared

[29:32] overhead cost that basically will make

[29:34] the expansions net uh accretive to our

[29:38] revenue or is that also going to be

[29:39] basically be at break even once that

[29:41] gets to

[29:42] >> So do you get what I'm saying? Does that

[29:44] make sense?

[29:45] >> It does. Um

[29:49] so our money really comes we we make

[29:52] about $11.75

[29:55] per passenger. And so as passenger goes

[29:58] up, that revenue is going to come up.

[29:59] And the majority of it's parking

[30:01] revenue, right? Rental cars probably the

[30:03] next big one. Um and so all of those

[30:06] things as as capacity increases and

[30:09] those operations increase, then that

[30:12] revenue is going to come up, right? Um

[30:14] to to help accommodate the growth. Right

[30:18] now, from staffing perspective, we're

[30:20] sitting pretty good. Um, I think the

[30:22] next thing that you'll see us come and

[30:25] ask for is potentially another police

[30:27] officer to be stationed at the airport.

[30:30] But operationally, we're in a pretty

[30:31] good spot that even with the the

[30:33] expansion, our firefighters are already

[30:35] staffed to again, we we've got to go a

[30:38] long long way. In fact, I don't even

[30:40] think we would make the next um fire

[30:44] requirement. So, we're already set for

[30:45] fire. Okay.

[30:46] >> Um, police again I think is we we did an

[30:49] evaluation of the overtime cost for

[30:52] police um at least at the time when we

[30:55] looked at it was still less than another

[30:56] full-time employee. So, it didn't make

[30:59] sense to add another full-time officer

[31:02] yet. Um, but the way things are

[31:04] changing, we may have to come back mid

[31:06] year or something like that. We don't

[31:08] know. Um, but we wanted to hold off on

[31:10] that. Um, and so I I again with the

[31:14] increased passenger

[31:16] volume then our revenues are going to

[31:18] come in um to mirror that.

[31:22] >> Thank you,

[31:24] >> Councelor Bogden. All right, just to

[31:27] help catch Jeff up,

[31:31] the airport, how I understand it, wasn't

[31:33] always this good, right? Um, wasn't fire

[31:36] paying some of that overtime like three

[31:38] or four years ago?

[31:40] So, Jimmy, you'll have to remind me the

[31:42] budget year. So, I think this is the

[31:45] third budget year that we have been

[31:48] completely self-sufficient. Prior to

[31:50] that, the general fund was was putting

[31:53] in about $800,000 in subsidy to the

[31:57] operations of the airport. And part of

[31:59] that was fire, obviously. Um, and then

[32:02] again, I think it was three years ago,

[32:04] um, we went ahead and and put all of the

[32:07] public safety costs into the airport,

[32:09] all of those operating costs, eliminated

[32:11] the subsidy from the general fund to

[32:13] where we are operating as the FAA

[32:15] mandates that we are self-sufficient.

[32:18] Um there are some administrative

[32:20] chargebacks that that uh apparently I

[32:25] wasn't aware but but were not included

[32:27] in the airport's budget but we but are

[32:29] moving forward. Um so is legal finance

[32:34] all those char administrative

[32:36] chargebacks are all now in in the

[32:38] airport's budget

[32:39] >> other than that one loan that they will

[32:41] pay back this year is 2027 that's so

[32:46] this year

[32:48] This this year was this year will

[32:50] subsidize them for that loan. Next year

[32:52] they're they're on target to subsidi to

[32:55] just and the FAA requires them. It's if they make an excess of funds, it

[33:01] cannot come back to the general fund. It

[33:02] has to stay there the airport. And so

[33:05] Brian's been able to do some a few

[33:08] things in the last few years that he's

[33:10] never been able to do repairs on his

[33:12] airport before. Right. There was

[33:14] >> there's just a whole bunch of different

[33:16] stuff that he's done. So barely above

[33:19] break even is a lot better than us

[33:21] subsidizing airports.

[33:23] >> And we are government and we're not

[33:24] going to make a whole heck of a lot of

[33:26] money. That's not what we do.

[33:28] >> But we are

[33:30] >> break even is good for this.

[33:32] >> That's actually what the FAA requires,

[33:34] right? If you're making too much money,

[33:35] you're charging too much on your fees.

[33:37] Yeah. If you if you're being subsidized,

[33:39] you're not making enough. And so um so

[33:43] we're in a good spot.

[33:45] Okay,

[33:46] >> little more would be help.

[33:47] >> Councelor Christensen.

[33:49] >> So, uh, half a billion employments this

[33:51] year, uh, go to the full extended phase,

[33:56] uh, that we really maximize everything

[33:58] we can. What kind of employments do you

[34:00] project at full capacity?

[34:03] >> I think

[34:04] um, again,

[34:06] we're pretty close on five gates now.

[34:09] So, you're talking a million for sure.

[34:12] >> Yeah. Um but I think you you even get

[34:15] some some spread in schedule at that

[34:18] point to where I think we're close to a

[34:21] million and a half employments, three

[34:22] million total passengers.

[34:24] >> Yeah. And so I would think with that

[34:26] kind of marginal increment o over the

[34:29] fixed cost, I would think we're actually

[34:31] doing much better than just breaking

[34:33] even

[34:34] >> again at full capacity.

[34:36] >> Sure.

[34:36] >> Um and and you're right, the airport's

[34:38] not here to to make money. it's actually

[34:39] a public service. But in terms of its

[34:42] public funding and the success of this, is remarkable.

[34:46] >> Yeah. Especially based on where we've

[34:48] come from.

[34:48] >> So an important thing to remember is

[34:50] airports are economic drivers, right? So

[34:54] >> you look at the economic impact.

[34:57] Now this is 18 months to 24 months old.

[35:00] It was it was $250 million annually that what's happening at the airport

[35:06] just on the commercial service alone is

[35:09] bringing into our region with with $3.5

[35:12] million direct tax generation. So um

[35:15] again we're unfortunately we can't dump

[35:19] all that revenue into other city

[35:21] services but we are um just as an

[35:24] economic driver.

[35:26] >> It's huge. Yeah. So,

[35:28] >> um I'm curious what when is is the

[35:31] Hawaii non-stop flight still?

[35:34] >> When is Hawaii

[35:35] >> and when is international? Like what are

[35:37] those two things? What are we thinking?

[35:38] >> Yeah. So, Hawaii is when David Neilman

[35:43] came and met with with mayor for the

[35:45] first time. Um that's still on his

[35:47] target, but it's not their priority.

[35:49] There's some certifications to get

[35:51] there. Um, it's a long flight from

[35:54] Provo, uh, which is why there aren't

[35:56] many doing it from Salt Lake direct. Um,

[36:00] the Airbus that Breeze flies can do it.

[36:03] Um, but they they have put that on the

[36:07] back seat as far as their priorities for

[36:09] certifications. They've they've brought

[36:11] international up in their priorities. In

[36:14] fact, they're starting to serve their

[36:16] first international markets out of

[36:20] I want to say I don't know which base um

[36:22] in the east coast. So, they are flying

[36:24] internationally. They would love to fly

[36:26] internationally out of Provo right now.

[36:29] Customs Border Patrol is quite a task.

[36:33] Um one for us to have international

[36:37] facilities, we have to cover the cost of

[36:40] that. So, as an airport that's not a

[36:43] port, like Salt Lake is a port, the

[36:45] airport's responsible for all of the

[36:47] operation costs of Customs Border

[36:49] Patrol. To clear a commercial aircraft

[36:52] in Provo, that's about five to six

[36:55] employees at minimum at 200,000. That's

[37:00] you're you're talking million and a half

[37:01] dollars. Um, how many international

[37:04] flights does it take to make that

[37:06] pencil, right? And so there's some

[37:08] economics related to that that make it

[37:10] difficult. But fortunately, we have we

[37:13] also have a corporate demand for

[37:16] international that we're working to

[37:18] hopefully make happen first. But across

[37:20] the board, CBP is in high demand with

[37:23] what's happening nationally at the

[37:24] borders and everything else. And so um

[37:28] it's going to be an uphill battle to get

[37:30] customs in Provo. We're building the

[37:32] terminal to accommodate at least the the

[37:35] shell space to accommodate an FIS or a

[37:37] federal inspection station. Um but we're

[37:40] not planning on finishing it out until

[37:43] we have um all of the international

[37:46] stuff in line. Um it's coming. It's just

[37:49] not happening maybe as immediately as we

[37:51] thought just because of the national

[37:55] landscape and and just the cost frankly.

[37:58] >> Okay. Thank you for that update.

[38:00] Anything else? We are over time.

[38:02] >> Oh, nice work.

[38:03] >> All right. Thanks so much, Brian.

[38:04] >> Much.

[38:07] >> All right. Um, next, a presentation

[38:11] regarding the 2027 budget for power

[38:14] presented by Charlie Little, our

[38:15] management analyst.

[38:16] >> And then Tan Smallcom, our interimm

[38:19] director.

[38:21] >> We tag chain.

[38:23] >> That's right.

[38:25] Like she said, I'm Tad Small. I'm the

[38:27] interim director of energy, also the

[38:29] full-time systems operations manager.

[38:32] Uh, and I'll be presenting the budget

[38:34] drivers for energy. And I'll turn the

[38:36] time over to Charlie Little, who's our

[38:38] business manager, who will be presenting

[38:40] the budget financials. And I'd like to

[38:42] thank uh Becky Hunt, our PIO and key

[38:45] accounts manager, and Jenna Lee, our

[38:48] executive office assistant, who will be

[38:49] helping us with the entertainment.

[38:54] Now let's look at it.

[38:59] All right. Why do we need money? We need

[39:02] money to be the most reliable provider

[39:04] of power in the country while providing

[39:07] a safe environment for employees and to

[39:10] be proactive stewards of the environment

[39:13] while maintaining our fiscal

[39:14] responsibility to the citizens of

[39:16] Pville.

[39:20] General budget questions. Basically, no.

[39:23] The only thing that we are pointing out

[39:26] is that we're re recommending some fee

[39:29] and rate increases to align with the

[39:32] costs of those fees and cost of service.

[39:38] Uh how do we measure uh how we're doing

[39:40] on the goals that you presented? Well,

[39:44] how safe are we? Well, this this fiscal

[39:46] year haven't had injuries or vehicle

[39:49] accidents, which is obviously wonderful.

[39:52] Um,

[39:54] a little bit on the fiscally

[39:56] responsible. Clearly, that will be

[39:58] covered a lot in what Charlie presents.

[40:00] But today's cash on hand, we're shooting

[40:02] for 180. We have 189. You can, and which

[40:06] represents our rate stabilization fund,

[40:08] which is healthy, and our fund balance

[40:10] currently healthy. And uh, everything

[40:12] looks good there.

[40:14] um

[40:16] provide citizens with sustainable. So we

[40:18] talked about sustainability. Um we have

[40:20] a green exchange, rooftop solar, shared

[40:23] solar, uh new trees. Hopefully you're

[40:26] all familiar with those programs that

[40:27] Provo offers. Uh Becky runs a lot a lot

[40:30] of those. She's with us here today. And

[40:33] finally, the reliable the reliability

[40:36] measurements are down at the bottom. Um

[40:39] you see at on Sadi that's the outer

[40:43] minutes average per customer in Provo.

[40:46] Uh we experienced two uh that was the

[40:50] most recent and uh the national average

[40:53] is closer to 12th puts us in about the

[40:56] 20 25th we're in the 75th percentile. Uh

[40:59] so we're up towards the top. We're not at the top which is our goal

[41:03] but we're working on it and we have

[41:04] we're spending more money to get there.

[41:08] uh and the other uh indices the outages

[41:12] per customer. You can see that the

[41:13] numbers are extremely favorable and

[41:16] healthy and indicate that we're having

[41:18] success as an energy department. Um

[41:22] some of the some of the main

[41:24] accomplishments uh we're building

[41:26] rebuilding the Gillespie substation

[41:30] uh and that's that's undergoing and

[41:32] we've started the Draper substation. Um,

[41:34] we've overhauled our our PO PO tracking

[41:37] procedures to tie Cayanta with uh our

[41:41] Millsoft uh software and that's

[41:44] completed. And then we have a new

[41:47] five-year strategic plan uh that we've

[41:50] got with the ontracking software now.

[41:52] So, it comes up every month whether you

[41:54] remember it or not. And and Charlie's

[41:57] been running that for us uh this last

[41:59] year.

[42:02] We've spent over $70 million in capital

[42:05] projects over the last 10 years

[42:09] and those are that's necessary to keep

[42:10] our system healthy. Um we what we do is

[42:14] a five-year budget. So we look at the

[42:16] plans five years out. I can tell you the

[42:17] Gillespie sub because of the difficulty

[42:20] in getting equipment used to take less

[42:21] than a year to do all that. I ordered

[42:24] the transformers for that project in

[42:25] 2022. Uh some of my grandkids weren't

[42:28] born yet. Um,

[42:30] >> and so, right, it's it's a it's

[42:32] extended. It's made a much more

[42:34] challenging uh planning, but uh it's

[42:37] under it's underway. If you want to get

[42:39] up to the north of Canyon Road there,

[42:41] it's it's a beautiful site. It's a lot

[42:42] of dirt with a couple of transformers

[42:44] and some concrete, but uh it's going to

[42:46] be even more beautiful um by the end of

[42:49] the year.

[42:50] >> That energy pen called beautiful.

[42:53] >> Well, when I drive my kids around

[42:56] Oh, look at that. Right. Okay.

[42:59] And then just to go over the Gillespie

[43:01] project, you can see where it is. It's

[43:03] up at the north end of Canyon Road.

[43:06] Yeah, more fun on TV. Uh but basically

[43:10] it included in increasing the capacity.

[43:12] So we replaced two for 1964, which is

[43:16] actually older than some of you, not

[43:18] just my grandkids. It's not it's not as

[43:20] it's actually my age, but um that's pretty old for transformers.

[43:25] We're replacing the 235 MBA transformers

[43:27] up there with 270s. So, we've

[43:30] drastically increased the capacity and they're expected to live 30 to 50

[43:35] years, but we have a good substation

[43:37] team who who protects it, right? And so,

[43:40] all of this contributes to the

[43:42] reliability of supplying power to Provo.

[43:45] Uh, and then we also put a distribution

[43:47] transformer up there that we didn't have

[43:48] before, 138 to 12 KB to help service the

[43:51] loads up here because you can see we got

[43:53] one transformer on this side of town.

[43:56] When we have to take one substation,

[43:58] when that substation goes down, it's pretty challenging. We can do it,

[44:02] but it's very challenging to try to get

[44:03] the power up. So, we've built we've

[44:05] added a transformer here, distribution.

[44:07] Sorry about the arrow

[44:09] to come to help fill that in back down

[44:13] south. All right,

[44:16] >> quick question.

[44:16] >> Yeah.

[44:17] >> So, sorry.

[44:18] >> Um, this

[44:19] >> did you work with parks on the GPS

[44:22] substation

[44:23] >> because in their presentation they

[44:24] mentioned excavating and grading for

[44:27] that substation?

[44:28] >> Yes.

[44:28] >> So, how did that partnership work?

[44:30] >> Yeah, park parks was fantastic for us.

[44:32] First, we went and talked to them before

[44:34] the project and said, "Hey, we need if

[44:36] you want to pull an arrow, you could,

[44:37] but we need part of your parking lot on

[44:39] the Indian trail head up there, Indian

[44:41] Road trail head." and they said, "Sure,

[44:43] you can have it." And then we extended

[44:44] it. We extended it a little bit to the

[44:46] north so they wouldn't lose too much

[44:48] parking. And so, so they allowed us to

[44:51] do that and worked with us on that. So,

[44:52] that was great. And then we had a lot of

[44:54] dirt to work with it to move. It's about

[44:57] a mountain right right there. And so, we actually talked with public works and

[45:01] parks and coordinated that because there

[45:03] was other projects going on and parks

[45:07] came in and moved the vast majority of

[45:09] that dirt for us. And that was a

[45:12] tremendous savings for for the city

[45:15] because we would had to go out and pay

[45:16] exorbitant prices to contractors

[45:19] otherwise. So so it was a we work with

[45:22] them. We work closely with them and they

[45:24] were they were g they were the givers in

[45:26] this project and we we really appreciate

[45:28] it.

[45:32] » All right. Now I'll turn the time over

[45:34] to Charlie who will talk us out some

[45:37] money.

[45:41] Thank you. We'll go over revenues are um

[45:44] projected revenues are expected

[45:46] expenditures,

[45:48] what that means for a surplus or deficit

[45:50] for the department and then the rate

[45:52] analysis to help prevent uh us running a

[45:54] deficit.

[45:57] uh based on growth over the past several

[46:00] years and implementing the rate increase

[46:03] that we are proposing in this budget

[46:05] cycle, we anticipate having three and a

[46:08] half million dollars more revenue this

[46:09] year than last year. Um if you'll

[46:13] remember last year we had some pretty

[46:15] big cost drivers hit us that

[46:17] necessitated a rate increase. Rather

[46:20] than do a big rate increase in one year,

[46:22] we decided to split it out over two

[46:24] years to try to make up for those

[46:26] increase increases in expenditures. Um,

[46:30] so although that looks like a big

[46:32] difference, it is making up for some

[46:35] pretty hefty increases from last year.

[46:38] Here you can see our revenues. Uh, the

[46:41] vast majority come from commercial and

[46:42] residential sales.

[46:44] That 12% industrial service sales,

[46:47] that's BYU, all by themselves. And then

[46:49] other operating revenue, that is all of

[46:51] our fees

[46:53] uh that we collect, our interest income,

[46:55] things like that that uh go toward our

[46:57] bottom line. But our main drivers are

[46:59] our residential and commercial sales.

[47:02] Next, it's time for your favorite time

[47:05] of the year

[47:07] where we show you how

[47:09] >> we love

[47:11] where we show you how our uh expenses

[47:13] break down by category for the

[47:15] department.

[47:16] So

[47:18] we have not submitted any supplemental

[47:20] >> approve this to

[47:22] >> they're trying to be more healthy health

[47:24] conscious.

[47:26] So

[47:29] we are not submitting any supplemental

[47:31] requests to increase our operating

[47:33] revenue. We do anticipate growth

[47:36] uh with raises and promotions uh for our

[47:40] uh salary costs and also we haven't

[47:43] received our final chargeback numbers

[47:45] but we anticipate growth within our our

[47:47] chargebacks. Um so we expect at least

[47:51] $845,000

[47:53] increase. Um

[47:55] >> so the oranges represented

[47:57] let's

[47:58] >> go to here.

[47:58] >> Okay. So the oranges represent what we

[48:01] pay to UMPA, UMPA, our joint action

[48:03] agency that we buy all of our power

[48:05] through. They represent 65% of our

[48:07] operating costs. We don't have control

[48:11] over those rates. We don't have control

[48:12] over that number, but we are really good

[48:15] partners with UMPA and they try to give

[48:18] us a heads up on stuff

[48:19] >> because they eat almond joys. And then

[48:21] 14% the Almond Joys, those are our

[48:24] personnel costs which account for 14% of

[48:28] our overall operating budget. Over the

[48:30] past several years, we've gone from over

[48:32] 100 employees down to 69. And that's

[48:35] taking on free employees from parks as

[48:37] part of our field cruise last year um

[48:41] for our tree trimming. We take we took

[48:43] over operating all the tree trimming

[48:45] throughout the city. So we run a pretty

[48:46] lean operation. We also have our 12 and

[48:51] a half% transfer that accounts for about

[48:54] 12% of our expenditures and a 5% 5% of

[48:59] our expenses. Where are you right now?

[49:01] Are you at You're You're at the

[49:04] transfer. Okay, good. We're at the

[49:07] All right. Now, chargebacks account for

[49:09] about 5% of our operating cost. Oranges

[49:13] are tricky.

[49:18] and

[49:23] » it'll be fun. And then um

[49:26] >> 2% uh that's the amount that we have

[49:28] control over. That's 2% of our operating

[49:31] is our operating costs. Uh what the

[49:33] departments need to function and then 2%

[49:36] is also our um bonding costs. So our

[49:41] loan and the interest on top of that. So

[49:45] you guys got that to work.

[49:51] » We have kept our operating costs flat

[49:54] this year. And um

[49:59] one thing I also want to point out going

[50:01] back to this, if you'll look right here

[50:04] under expenses, our power costs, we kept

[50:07] this flat from last year, but that is

[50:09] not what UMPA gave us in their budget.

[50:12] The market is currently changing for how

[50:15] power sales are handled in our region.

[50:19] It used to be that UNMPA could contract

[50:21] a year ahead of time uh for the sales

[50:24] that they were going to put off on the

[50:25] market. Excess power that we're not

[50:27] going to use in our little area that

[50:28] they can sell to on the market. And

[50:31] that's given us a good kickback at the

[50:33] beginning of every year for the past

[50:34] couple of years. Unfortunately, the way

[50:36] the market works now is that there's no

[50:39] long-term planning. Everything is

[50:41] happening either day before, hour

[50:44] before, 15 or five minutes before. It's

[50:47] a very fast market and they have no

[50:51] empirical data for what that's going to

[50:53] look like. So, they decided not to

[50:56] factor um market sales into their

[50:59] budget, which made it look like our

[51:01] budget was going to go up by 13 million.

[51:04] We don't think that's the case. They are

[51:06] going to be able to like sell off power.

[51:08] They just don't know how much. And I

[51:09] didn't want to build that into our rates

[51:12] or build it into our projections because

[51:15] it's artificially inflated and we'll

[51:18] really need a year of data before we can

[51:21] get back on track of building that back

[51:22] into the UMPA budget. That those oranges

[51:25] right there. If that were to go up 13

[51:27] million, it would basically fill up the

[51:29] entire base.

[51:32] So, we're leaving that flat. We do have

[51:34] our rate stabilization fund in case

[51:37] somehow they don't sell any power. very

[51:39] unlikely. Um we can dip into that to

[51:41] prevent huge increases on our customers,

[51:44] but that is something we're keeping in

[51:46] mind and looking at this year.

[51:49] So overall, we're looking at a $3.3

[51:52] million budget surplus between our

[51:54] estimated revenues and expenditures.

[51:57] And that may seem like a lot, but

[52:00] uh looking at last year, we only had a

[52:03] projected 663,

[52:05] which did not cover any much any of our

[52:08] capital costs for this current year that

[52:10] we're in. We're trying to make up for

[52:12] that again over the two-year plan. We're

[52:14] covering 2% revenue last year, well,

[52:16] this current year and 2% revenue of next

[52:18] year.

[52:20] >> So, just so I'm Yes.

[52:21] >> Just so I'm clear. So

[52:22] >> Mhm.

[52:23] >> this 3.3

[52:24] >> Mhm.

[52:25] >> this is the second year.

[52:27] >> Yes.

[52:27] >> So does that are we then even with I'm

[52:30] not sure how much the the uh the hole in

[52:33] the ground was that we're filling.

[52:34] >> Yeah. So um UMKA raised our rates by

[52:37] about four and a half% and then there

[52:39] was the increase to the general fund

[52:40] which basically uh increased our

[52:43] expenses by about 4 million.

[52:46] >> So rather than try to recoup all of that

[52:49] 4 million last year we're splitting it

[52:50] out over two years. We recouped 2

[52:52] million last year by a rate increase and

[52:54] then about 2 million this year through a

[52:56] rate increase.

[52:57] >> Thank you.

[52:57] >> Um

[53:00] again about 12 and a half% goes back to

[53:04] the general fund and our chargebacks

[53:07] help pay for the other uh departments in

[53:09] the city. And we're happy to do that

[53:12] because the city does provide us some

[53:14] really great services and it means that

[53:17] we could keep our personnel costs low

[53:19] because the city takes care of so much

[53:21] of the administrative functioning of the

[53:23] department. So

[53:26] we're um happy to add that in. We do

[53:29] have to factor it into the rates. So

[53:32] what's the rate analysis?

[53:35] Like I said, we're responding to rate

[53:37] increases from last year. Um if you look

[53:41] at this column, this is if we did not

[53:43] raise rates this year, what we would be

[53:45] looking like and this is if we do the

[53:48] rate increase proposed.

[53:52] In both columns, you'll see we have an

[53:54] operating surplus, but based on our CIP

[53:56] new budget spending that we budgeted

[53:59] back in January,

[54:01] we cannot cover those costs uh based on

[54:03] our operating revenue if we do not raise

[54:05] rates. And we are technically at

[54:07] basically a break even of our capital

[54:10] expenditures versus our operating

[54:12] revenue if we do the rate increase.

[54:15] So, how we've designed the rate

[54:16] increase, most of the 2 million that was

[54:18] recouped for this fiscal year came from

[54:21] the residential class. And based on

[54:24] feedback from the administration, we've

[54:25] decided to recover most well all of the

[54:30] um revenue increase from our commercial

[54:33] and industrial classes in the next rate

[54:36] plan. Oh, sorry. I got a little bit

[54:38] ahead of myself. This is looking at um

[54:42] this is the revenue projections I gave

[54:44] to our bonding agencies.

[54:47] Uh so this is based on our caffer.

[54:51] Uh the history is based on our caffer

[54:53] and then the revenue projections are

[54:55] based off of that.

[54:58] Because of the increases last year, we

[55:01] still saw a $2 million shortfall, which

[55:05] again we're going to try to make up in

[55:06] the next fiscal year. So if we are

[55:09] allowed to do our rate increase, we will

[55:12] have a surplus and our our change in net

[55:14] position. Um and we will continue if we

[55:17] do moderate increases down the line, we

[55:20] will continue to have a positive change

[55:23] in net position. However,

[55:26] if we do not do a rate increase this

[55:29] year, we will have a negative change in

[55:32] net position of about 1.2 million. And

[55:34] then even if we did a 2% rate increase,

[55:37] the three following years, we never

[55:38] catch up. We stay in the red. So it is

[55:42] imperative that we keep up with our

[55:43] costs to make sure that we are operating

[55:46] in a financially

[55:48] responsible way.

[55:51] >> Charlie,

[55:51] >> yes.

[55:52] >> So we're assuming that we'll need to do

[55:54] a 2% increase in the next three

[55:57] subsequent years.

[55:58] >> If costs continue to increase as we're

[56:01] seeing them, we will. We I will reassess

[56:03] every year just to make sure I'm not

[56:05] doing them just to do them. Um but it is

[56:09] possible. We've had I'll show a graph

[56:12] later, but basically since co all of our

[56:15] costs are going insane. Um but we're

[56:19] really hoping we won't have to have

[56:21] yearover-year 2% increases, but based on

[56:24] current projections, it might happen.

[56:27] Would you anticipate that to be

[56:30] distributed evenly for all customers or

[56:33] like this year focus on one class of

[56:35] customers?

[56:36] >> Um, it depends on the results of our

[56:39] cost of service study I'll be doing with

[56:40] Dave Berg. He's our consultant works

[56:42] with PA. Um, we'll be having our first

[56:45] meeting this week and he'll let us know

[56:48] between the classes, are we charging one

[56:51] class unfairly versus another class? and

[56:54] I would design future rate changes or

[56:56] rate increases based on that analysis.

[57:00] Um,

[57:03] overall I like to spread things out

[57:05] evenly among the customer classes just

[57:07] so that we're not hitting one super hard

[57:09] if we don't have to. Um, but again,

[57:12] it'll it'll be based on his

[57:13] recommendations of the cost of service

[57:15] study.

[57:15] >> Thank you.

[57:20] » So this these are our proposed rate

[57:23] increases.

[57:24] there no change to the residential

[57:27] class. Uh small commercial, I'm

[57:30] proposing a 4% rate increase. You can

[57:33] see the average. So based on our average

[57:35] small commercial usage, that looks like

[57:38] an increase of about $20 per month.

[57:41] For large commercial, we have about 20

[57:43] of these customers. These are the IHC's

[57:46] of the world, the Mega Diamonds. These

[57:48] are our very large customers you would

[57:51] think are industrial, but they don't own

[57:53] their own substations, so they are not.

[57:55] Um, we anticipate their average bills

[57:58] going up by about 1,700 per month, and

[58:00] that's a 7% increase. Industrial, this

[58:04] is just BYU. They have been given heads

[58:07] up from multiple

[58:09] areas that this is coming down the pike,

[58:11] but we are proposing a 10% increase on

[58:14] BYU, which would increase their monthly

[58:17] bill by about 71,000.

[58:19] And now, I know this seems like a lot

[58:22] perspective,

[58:23] >> but then I'm going to show you how we

[58:26] compare to other uh cities and how we

[58:31] compare historically. So that bottom

[58:33] yellow line, these are our rate

[58:34] increases over the past 20 years. Prior

[58:37] to 2011, we had a decadesl long policy

[58:40] of neverinccreasing rates. And this put

[58:43] us in a really dire financial situation

[58:46] when the market crashed in 2008.

[58:49] We were depleting our fund balance at an

[58:52] unsustainable rate. So we had to do a

[58:56] huge nearly 20% jump within one year. We

[58:59] never want to find ourselves in that

[59:00] position again. it's a shock to the

[59:01] customers and we don't want to bring the

[59:03] pitchforks.

[59:05] So they did moderate increases after

[59:08] that to 2016 and then based on a cost of

[59:11] service study we did a rate

[59:13] restructuring with no revenue increases

[59:15] over the next several years and that was

[59:17] just shifting how the rates were

[59:21] designed but it didn't actually increase

[59:23] our revenue. Then uh COVID happens and

[59:27] suddenly everything is much more

[59:28] expensive and our restructuring is not

[59:31] sufficient. So we institute policy back

[59:34] in 2022

[59:36] to do moderate increases to make sure

[59:38] we're keeping up with costs. But even

[59:41] still in 2025 over the past 20 years our

[59:44] rates have only gone up 30%.

[59:47] uh this black middle line that's the

[59:49] consumer price index has gone up 70%

[59:53] and the top gray line that is that are

[59:56] national power rates they've gone up by

[59:59] 110%.

[1:00:01] So, we are well below market trends,

[1:00:06] but inflation is real. Price increases

[1:00:09] are real. It's not sustainable to have a

[1:00:11] no rate increase policy.

[1:00:14] Here is how we compare with our

[1:00:16] residential customers through all of our

[1:00:18] comparable cities. And this is Rocky

[1:00:20] Mountain Power right here. Like I said,

[1:00:23] no increases to the residential

[1:00:24] customers. Uh we are the second cheapest

[1:00:27] residential of all of our comparators,

[1:00:30] which may be or use Rocky Mountain.

[1:00:32] >> Or uses Rocky Mountain.

[1:00:35] >> Um,

[1:00:36] was there another question?

[1:00:38] >> Say, whoops.

[1:00:39] >> Yeah.

[1:00:41] >> Um, this is actually the fact that we

[1:00:44] are the second cheapest is an indicator

[1:00:46] that we may be too conservative in our

[1:00:47] rate increases. I don't want to use this

[1:00:49] as like saying we need to pump up our

[1:00:51] rates, but it might be an indicator that

[1:00:54] we are lagging the market.

[1:00:57] Next is our small commercial comparison.

[1:01:00] Again, we used to be the cheapest. If we

[1:01:02] do the rate increase, I am proposing Oh,

[1:01:05] we would be the second cheapest.

[1:01:06] >> I'm just going to say in the previous

[1:01:09] slide, we're right between two of the

[1:01:11] people that we still buy power from

[1:01:14] with.

[1:01:14] >> Yeah.

[1:01:15] >> So, to me, it doesn't seem like we're

[1:01:18] too conservative if everybody else who's

[1:01:20] buying from AA is well, as low as we

[1:01:22] are. It just shows that we're really

[1:01:24] good with

[1:01:25] >> anda's really good at doing what they

[1:01:27] do.

[1:01:28] >> Yes. Like

[1:01:29] >> because if I saw Lean up here,

[1:01:33] >> Nephi clear up here, but we're in

[1:01:34] between Nephi and Spanish.

[1:01:36] >> Yes.

[1:01:37] >> And right here there's there's Nephi,

[1:01:39] Lehi, Lean, St. George, all all

[1:01:43] municipal power agencies, right?

[1:01:44] Springville, Spanish, and we're all fun

[1:01:48] together. And then there's Rocky

[1:01:50] Mountain, this big commoder.

[1:01:53] >> Exactly. We're much cheaper than the um

[1:01:58] investorowned utility option in the

[1:02:00] state and we are much cheaper than most

[1:02:04] u cities because UMPA has been able to

[1:02:06] do so well selling their power on the

[1:02:09] market. Um, and we just put good vibes

[1:02:14] out there that they can do that in this

[1:02:15] new this new uh environment.

[1:02:19] Uh,

[1:02:21] again, uh, small commercial customers

[1:02:23] with this rate increase, we would go

[1:02:24] from

[1:02:25] >> Yes, sir.

[1:02:26] >> Just want to double click on what you

[1:02:28] just said.

[1:02:29] >> Um, it sounded to me like it's not like

[1:02:32] there isn't demand, it's just

[1:02:34] unpredictable and forecastable demand.

[1:02:36] >> Yes. Exactly.

[1:02:37] >> Right. So it's not a matter can we sell,

[1:02:39] it's what margin can we sell it at.

[1:02:41] >> Yes. Exactly.

[1:02:42] >> Okay.

[1:02:42] >> And so they know they will make market

[1:02:44] sales, but they didn't want to put fake

[1:02:48] no data backed projections into their

[1:02:51] budget. And so I'm keeping us flat uh in

[1:02:54] response to that as well. I'm sure that

[1:02:57] they will be able to make market sales.

[1:03:01] Okay. So our large commercial

[1:03:03] comparison, we are in the bottom third

[1:03:05] again by Spanish Fork and Nephi and

[1:03:07] Salem. These are all UNMPA cities. Uh

[1:03:11] our position does not change and it is a

[1:03:14] significant jump up to our next highest

[1:03:18] comparator bountiful for large

[1:03:20] commercial rates

[1:03:24] and industrial rates. We would go from

[1:03:27] the cheapest to the second cheapest very close with Spanish Fork. And I will

[1:03:33] say we currently charge BYU one penny

[1:03:36] more per kilowatt hour than UMPA charges

[1:03:40] us in the overall dollars per kilowatt

[1:03:43] hour scheme of things. We're basically

[1:03:45] providing them power at cost. They are

[1:03:48] our biggest customer. We want to treat

[1:03:51] them well, but they also need to cover

[1:03:52] their cost of service.

[1:03:56] Uh so that is our rate comparison and

[1:03:58] then the final these are are the fees

[1:04:02] that we anticipate increasing in our um

[1:04:06] consolidated fee schedule. The biggest

[1:04:08] jump is from our forestry department

[1:04:11] with banner installation and removal. Uh

[1:04:14] it's a threeperson crew. It takes

[1:04:19] uh almost an hour to install, almost an

[1:04:22] hour hour to remove, and we're not

[1:04:24] charging. This is 250 still isn't even

[1:04:27] at cost. Um but we do feel that it's

[1:04:30] kept artificially low. If you don't want

[1:04:33] us to increase it and continue to cover

[1:04:35] the deficit, that's fine. But um one

[1:04:38] thing we definitely are asking for an

[1:04:40] increase is the Parkway Strip Tree fee.

[1:04:42] I said it, I trip over it every time I

[1:04:44] practice it.

[1:04:46] um uh 255 doesn't even cover the costs

[1:04:51] of the tree, let alone the cost of the

[1:04:54] labor associated with planting the trees

[1:04:56] um for the new developments.

[1:04:58] So, uh I have a a cost breakdown if you

[1:05:01] want to see it. Our forester Chaz did a

[1:05:04] great job explaining why he's asking for

[1:05:06] this uh increase, but we are proposing

[1:05:09] $510 per tree. Those are the biggest

[1:05:12] jumps um as far as our fees are

[1:05:15] concerned.

[1:05:17] Yes.

[1:05:18] >> How often do we have banners installed

[1:05:20] and what kind of banners are installed?

[1:05:24] >> Um there are the big banners like across

[1:05:26] 500 West,

[1:05:27] >> right?

[1:05:28] >> I I think we do a couple a month. It

[1:05:30] depends on how Oh, Jenna.

[1:05:32] >> So I I banners.

[1:05:35] >> Thank you, Jenn.

[1:05:38] So, I handle the banners when they come

[1:05:40] in and we do a few with BYU athletics

[1:05:42] every year um in the fall. So, I think

[1:05:46] it's one or two banners for all of

[1:05:48] football season and they're great to

[1:05:50] work with. They know what they're doing.

[1:05:51] Um there's a but they don't pay a fee.

[1:05:54] Thank you. Um, and then we have maybe

[1:05:58] five others who choose to use banners

[1:06:01] and that's scattered throughout the

[1:06:02] year, but other than that, there aren't

[1:06:04] really anyone using banners anymore.

[1:06:06] >> So, you don't do the light pole banners

[1:06:08] just across the street.

[1:06:09] >> Correct.

[1:06:12] >> Do they really

[1:06:13] >> I mean, if we're not even covering cost

[1:06:16] for those, I know there's not that many.

[1:06:19] Why are we even still offering the

[1:06:22] service? Is it even worth it?

[1:06:26] That is maybe a a city decision, a

[1:06:30] council decision. Um,

[1:06:33] we we're happy to continue to provide

[1:06:35] the service for the city. Um,

[1:06:38] >> and we're happy to stop

[1:06:40] >> to stop as well

[1:06:41] >> if the city the city doesn't deem it

[1:06:44] valuable anymore.

[1:06:46] >> Yes. Um just dumb questions here like is

[1:06:49] there a reason why power does that

[1:06:51] because of like are you have to are you

[1:06:53] the only people who do it safely?

[1:06:54] >> It's because we have the bucket trucks.

[1:06:55] Yeah.

[1:06:56] >> Oh yeah you have the bucket trucks.

[1:06:57] Okay. And similarly for the parkway

[1:06:58] strip fee. Why are you all the one doing

[1:07:01] that?

[1:07:01] >> Because we oversee all forestry.

[1:07:04] >> Okay. So forestry center.

[1:07:06] >> Yeah.

[1:07:08] >> If I could one one comment about the

[1:07:10] banner installation. Those are not

[1:07:13] um

[1:07:15] el eligible just for anybody to put up a

[1:07:17] banner and attend they want. It's

[1:07:19] essentially we've reserved it for first

[1:07:20] amendment reasons. We've reserved it for

[1:07:23] community events. And so I guess you

[1:07:26] could think of it as at least in the

[1:07:28] past the idea has been these are events

[1:07:30] that the city itself actually also wants

[1:07:32] to foster awareness of. So, it's not

[1:07:37] just a service where we're just saying

[1:07:39] if you want to put up a banner, we're

[1:07:41] exchanging money. It's when the city is

[1:07:43] also not I don't want to say

[1:07:45] co-sponsoring,

[1:07:47] but something that we also think is is

[1:07:49] important is the only reason they're

[1:07:50] going up in the first place.

[1:07:51] >> Well,

[1:07:52] >> which isn't to say you can't get rid of

[1:07:53] them. I just wanted to add that piece

[1:07:54] onto it.

[1:07:55] >> I mean, there's only five of them. We're

[1:07:57] not even covering costs. And advertising

[1:08:00] nowadays is so different than it was

[1:08:02] back in the 1970s. And I can't even tell

[1:08:05] you, and I drive up Fifth West every

[1:08:07] single day, multiple times. I can't even

[1:08:09] tell you the last time I saw a banner

[1:08:11] across there, nor nor what it was,

[1:08:13] right? Um

[1:08:17] I I just don't obviously the five people

[1:08:20] that do I wonder if BYU just does it out

[1:08:22] of tradition, honestly, and it's free.

[1:08:26] >> I would have to check. We have an we

[1:08:28] have an agreement with BYU that deals

[1:08:30] with some intersections that we paint

[1:08:33] and the banners on the flag poles. I

[1:08:35] can't remember if that agreement covers

[1:08:38] the banners on Fifth West as well. We'd

[1:08:40] have to look at that. We might be

[1:08:41] obligated to keep doing those based on

[1:08:45] this agreement. Um but I'd have to look.

[1:08:48] >> I'm I'm less inclined to say let's take

[1:08:50] it away. More inclined to say let's have

[1:08:52] them cover the costs.

[1:08:54] um doesn't seem like that big of a deal

[1:08:58] and it certainly is I think part of the

[1:08:59] tradition and so forth. So let's just

[1:09:01] have him cover the cost.

[1:09:04] >> Would that be a problem to have them

[1:09:05] cover the cost in the contract? Brian,

[1:09:08] >> I don't think so. I'll have to check.

[1:09:10] Well, see the the deal with the BYU

[1:09:12] agreement is that at least with regard

[1:09:14] to the streets, they were providing some

[1:09:15] of the materials and so that's where we

[1:09:17] were getting a benefit from it. So I'll

[1:09:19] just have to check the agreement and see

[1:09:20] what it says as far as the BYU. What is

[1:09:23] the cost of that completely if 250 is

[1:09:26] not even covering costs?

[1:09:28] >> Uh two hours at $70 per person for a

[1:09:34] threeperson crew. Yeah, it's close. It's

[1:09:37] like closer to 300, but

[1:09:40] >> be closer to 300.

[1:09:42] >> That's the equipment.

[1:09:44] >> Correct. That's just for the labor, not

[1:09:46] including the built-in costs of

[1:09:48] maintaining the vehicles that are used.

[1:09:50] How about we move it higher and then I

[1:09:52] think that would discourage it from

[1:09:53] coming

[1:09:55] if we don't want to do away with it. If

[1:09:57] we move it higher to cover costs, that

[1:10:01] might discourage people from actually

[1:10:02] doing it at all and just saying, "Hey,

[1:10:04] advertising on Facebook is cheaper."

[1:10:10] So, this was a an incremental increase.

[1:10:13] If you would like to see the full cost

[1:10:15] of what it takes to um install and

[1:10:17] remove the banners, I can provide that

[1:10:19] analysis for you.

[1:10:21] >> Five a year. We're subsidizing it to the

[1:10:23] 250 bucks. So

[1:10:24] >> yeah.

[1:10:26] >> No, it's a community thing.

[1:10:29] >> Yeah.

[1:10:31] >> Don't really care.

[1:10:35] >> If it was like 100 per year, then

[1:10:39] » do we have any questions?

[1:10:42] How we doing on time?

[1:10:45] >> We're over by like 11 minutes.

[1:10:50] >> But if you have you have questions, go

[1:10:52] ahead.

[1:10:53] >> Yeah, I had just a couple. So you

[1:10:55] mentioned increasing costs. Um, you

[1:10:58] know, based on what the numbers you

[1:10:59] provided like by far and away your

[1:11:01] biggest costs are power purchases for

[1:11:03] Ma. It's like 60% or something.

[1:11:05] >> Yes.

[1:11:05] >> And so is that the main driver? That is

[1:11:08] the main driver of this most recent

[1:11:10] increase. Also trying to recover our

[1:11:13] fund balance because we are spending

[1:11:15] down quite a bit of fund balance to

[1:11:17] cover the glass substation and um

[1:11:20] >> a huge thing is that our equipment is

[1:11:22] like crazy increased in pricing. So it's

[1:11:24] hurt the fund balance a ton.

[1:11:26] >> Yes. So, we're looking to do some fund

[1:11:28] balance recovery within the rate

[1:11:30] increases as well.

[1:11:31] >> And it's just all gone upside so much.

[1:11:34] And and the time amount, the turnaround

[1:11:38] time from the time you order it till the

[1:11:39] time you get here is years,

[1:11:42] literally years. So, it's just it's a

[1:11:44] whole thing.

[1:11:45] >> And they build um what do they call uh

[1:11:48] incre they build increases.

[1:11:50] >> They put incremental increases into the

[1:11:52] contract. So, and I bought these

[1:11:54] transformers for 1.5 million. By the

[1:11:56] time I paid for them, they added a 10%.

[1:12:02] » Do we like does UMPA give like a

[1:12:06] projected rate schedule? So, we plan

[1:12:08] against that. And so, this recent 4%

[1:12:10] increase we're like is not going to

[1:12:12] continue unforeseen.

[1:12:15] >> Um, we don't anticipate it going up by

[1:12:17] that much every year. Their average over

[1:12:20] the past

[1:12:22] five years is about 2% per year. So the

[1:12:25] 4 percent was a bigger jump than normal.

[1:12:28] >> Um but yeah, we'll have to see what they

[1:12:30] do with the market sales this year to

[1:12:31] see

[1:12:33] where we go from here.

[1:12:34] >> They only provide the rates in March,

[1:12:37] the end of March. They provide their

[1:12:39] budget for

[1:12:41] >> we get rates at the conference that we

[1:12:44] went to in March. Yeah.

[1:12:49] » Okay. Any other questions?

[1:12:51] >> No.

[1:12:52] >> Thanks so much.

[1:12:52] >> Nice work.

[1:12:53] >> Thank you.

[1:12:54] >> Yeah. Thank you.

[1:12:56] >> All right. We have a five minute break.

[1:12:59] So, we'll let's come back at 1:20.

[1:13:03] >> Enjoy your

[1:13:06] tangerines.

[1:13:07] >> Recording stopped.

[1:13:15] I want one of those oranges.

[1:13:16] >> Recording in progress.

[1:13:20] >> All right. Next, we're going to have a

[1:13:22] presentation regard the 2027 budget of

[1:13:24] the library presented by our library

[1:13:26] director, Carla Gordon.

[1:13:33] » Yeah. Fish through that middle.

[1:13:50] Okay,

[1:13:53] >> here we are.

[1:13:53] >> Go ahead.

[1:13:55] >> Here I am. J, congratulations on being

[1:13:58] within budget this year.

[1:14:02] » I do have to say I've been so proud. You

[1:14:06] should be having that black that black

[1:14:08] number on the bottom makes me really

[1:14:10] happy.

[1:14:10] >> You guys just did very nice work.

[1:14:12] >> Good.

[1:14:14] >> Glad everybody can that's we we've tried

[1:14:16] really hard and hopefully I can talk a

[1:14:18] little bit about some of the things that

[1:14:19] we're doing and kind of where we're

[1:14:21] going from here. But the number one

[1:14:23] thing is we have balanced our budget and

[1:14:25] it is balanced for next year as well. We

[1:14:28] um have the money that we needed.

[1:14:32] We have made just structurally like

[1:14:35] we're just we know more of where our

[1:14:37] money's coming. We've been watching

[1:14:38] closer. They are making some adjustments

[1:14:40] to our revenue projections to make them

[1:14:43] closer to what we're actually getting

[1:14:46] which makes it easier to budget. Of

[1:14:47] course, um

[1:14:50] we did end fiscal year 25 with 424,000

[1:14:55] in surplus.

[1:14:58] So we were careful in our spending. We

[1:15:00] also got extra revenues which was great.

[1:15:04] Um, but this has required delaying some

[1:15:07] building projects and careful careful

[1:15:09] budgeting all of that. So,

[1:15:12] I don't think I guess I just want to say

[1:15:13] I don't think I can have $425,000 in

[1:15:15] savings.

[1:15:17] But I was really happy when I was able

[1:15:19] to. So, we'll use it. Um, fund balances.

[1:15:25] So that you know we do have um our

[1:15:27] ending fund balance was down closer to

[1:15:31] 150,000 or 1.5 million which John

[1:15:34] Borgett that was kind of we didn't want

[1:15:36] to go below that under his leadership

[1:15:38] and so that's kind of what we were

[1:15:40] aiming to get it higher than that with

[1:15:42] the um surplus in fiscal year 25. We

[1:15:46] were able to bring it up almost to 2

[1:15:47] million which is about remembering the

[1:15:51] math like 36% of our operating budget.

[1:15:53] So, um, that feels a lot more

[1:15:56] comfortable. And our legacy endowment

[1:15:58] fund continues to grow. We haven't had

[1:15:59] to pull any of that out this year. We

[1:16:01] were saving that to help with the boiler

[1:16:03] next year and then we found out about

[1:16:06] elevators, but it's

[1:16:09] so just the building maintenance fund

[1:16:10] for fiscal year 27. We kind of talked

[1:16:12] about this in the CIP, but um, we do

[1:16:16] have the two projects coming up this

[1:16:18] year. We need to replace our one

[1:16:19] elevator and then we need to replace our

[1:16:23] boiler and we do plan on paying for that

[1:16:26] using the library legacy endowment of at

[1:16:28] least $140,000. You don't or you don't

[1:16:30] know exactly what that interest is going

[1:16:32] to build to but when we pull it out it

[1:16:33] should be at least $140,000 and then we

[1:16:36] would like an appropriation from the

[1:16:38] ending fund balance of 285,000 to cover

[1:16:42] those two projects in our nest. Carl

[1:16:44] bank has to stay about two million.

[1:16:47] >> That is the as far as I can tell verbal

[1:16:50] agreement that was made. So we are we

[1:16:53] have tried to keep it at at that and

[1:16:55] just pulled out the interest.

[1:16:58] Any questions about that at all?

[1:17:01] >> Um

[1:17:03] we do have unfunded future CIP needs.

[1:17:05] Again in our capital improvement plan

[1:17:06] presentation we kind of talked about

[1:17:08] those. We have projects coming up. Um

[1:17:12] the elevators in total about another

[1:17:14] $600,000.

[1:17:16] Air handlers are going to be need to be

[1:17:18] replaced. The parking structure does

[1:17:19] need to be upgraded some to keep the

[1:17:22] leaks to a minimum. And um the brick

[1:17:26] work still does need some attention. So

[1:17:27] that's about $1.8 million over the next

[1:17:30] five years that we will need to find a

[1:17:32] way to find that funding.

[1:17:35] But we have done some really good things

[1:17:37] this last year. So I just wanted to

[1:17:38] throw in some of that good news. Um, we

[1:17:42] continue to provide service. We had that

[1:17:45] $800,000 drop. You guys helped us back

[1:17:48] with that. So, we did drop $300,000, but

[1:17:50] I don't believe our patrons noticed that

[1:17:53] we had cut them some things back, which

[1:17:55] we worked really hard to do that to

[1:17:57] sustain our programming. Our hours

[1:17:59] didn't change, nothing like that. We

[1:18:00] kept all of our staff and we continue to

[1:18:03] provide quality services. Um

[1:18:08] some of the other things we have two

[1:18:10] years ago we didn't do hardly any

[1:18:12] fundraising. We have been building that.

[1:18:14] It is not budget changing necessarily

[1:18:19] >> but it is building and it does allow us

[1:18:21] to do some of the smaller building

[1:18:23] maintenance projects that we would

[1:18:24] really like to do. Next year we're

[1:18:26] hoping to raise money to replace some

[1:18:28] couches in the children's department

[1:18:29] that are cracking and being less

[1:18:31] comfortable to sit on. And it's just not

[1:18:33] part of our budget right now. So, we're

[1:18:34] hoping that some of that fundraising

[1:18:35] helps us do some of those upkeep

[1:18:38] projects. Um, we did an a comprehensive

[1:18:43] staff efficiency audit and I can't point

[1:18:45] to any huge again budget changing

[1:18:47] things, but we asked everybody to find

[1:18:49] just something they felt like they could

[1:18:50] do a little bit better and it was really

[1:18:54] good exercise for all of us. We found

[1:18:55] little things that we could do better,

[1:18:57] little ways. And it also actually

[1:18:59] brought out some training gaps that we

[1:19:01] had when like now why is this taking you

[1:19:03] that long? Oh, you didn't know we had

[1:19:04] this tool. Let's do this. And so with

[1:19:06] each individual, we were having those

[1:19:08] conversations and trying to find better

[1:19:09] ways to do things. Um, we're always

[1:19:12] trying to stay safety and prepared. Um,

[1:19:14] our library emergency communication plan

[1:19:16] was something we focused on last year.

[1:19:18] So, we've improved that and made sure

[1:19:19] that our staff all know how that would

[1:19:21] go where something to go down. And then

[1:19:24] we've launched a new ABC This book's for

[1:19:26] me, which was kind of a big initiative

[1:19:27] this last year, and we hope to continue

[1:19:28] that in the next few years to make sure

[1:19:30] that people are able to find things that

[1:19:32] match with their values. It's a big

[1:19:34] thing in libraries. Not every book is

[1:19:36] for every person, and we want to make

[1:19:37] sure we're communicating how to find the

[1:19:38] best books for your family. Um, we

[1:19:41] implemented an evaluation process for

[1:19:43] our programming just so that we're

[1:19:45] reviewing what we're doing and making

[1:19:46] sure everything is hitting the impact

[1:19:48] that we want it to. And um we started

[1:19:51] mailing new mover postcards out to new

[1:19:53] Provo residents to try to help them know

[1:19:55] that the library is there for them. They

[1:19:56] can come in and get a library card. And

[1:19:59] we went for some grants. And we kind of

[1:20:00] threw this in here because we really are

[1:20:02] just finding little pieces of money

[1:20:04] wherever we can. Even if it's a little

[1:20:05] $500 grant, we're going to go for it so

[1:20:08] that we can have a parent baby program

[1:20:10] that we didn't just have that $500 for

[1:20:12] the moment. Um, we improved some of our

[1:20:15] technology and um, council. We went for

[1:20:19] one of their grant

[1:20:19] >> question from council.

[1:20:21] >> What? You didn't cut her off. But um,

[1:20:24] who's doing the grant writing?

[1:20:25] >> All of us.

[1:20:26] >> Okay.

[1:20:27] >> I've done I've done some of it. A lot of

[1:20:28] it's through the state library. I do

[1:20:30] most of those. But the different

[1:20:31] departments, they keep their eyes out

[1:20:33] for grants that might fit a project they

[1:20:36] have or something they've had on the

[1:20:38] back burner that I don't feel like we

[1:20:39] have money for this. And this um, baby

[1:20:40] project was kind of one of that. They

[1:20:42] wanted to do that. they saw a grant from

[1:20:45] >> it's an early learning um organization

[1:20:47] that does those and so they got that

[1:20:49] money. So we kind of just put it out

[1:20:50] there and said everybody look for look

[1:20:52] for grants and we share the

[1:20:53] responsibility. If you want it for your

[1:20:55] things then

[1:20:57] >> we work together because not everybody's

[1:20:59] written a grant before.

[1:21:00] >> Yeah. Good use of resources. I'm

[1:21:01] curious, pardon my ignorance on this. Do

[1:21:04] we have a grant write up for the city

[1:21:05] that helps the various departments with

[1:21:08] different grants and

[1:21:10] something to consider maybe for the

[1:21:12] future? There's a concerted effort and

[1:21:16] focus and you can actually track an ROI

[1:21:19] pretty well on a grant writer, right?

[1:21:20] Like you paid X amount and you've

[1:21:22] generated X amount.

[1:21:25] So might be something

[1:21:27] >> they have. No, yeah,

[1:21:30] >> gone a lot the last few years.

[1:21:31] Everybody's I'm

[1:21:32] >> no

[1:21:33] >> not saying there's anything wrong with

[1:21:34] our grant writing, but it might be

[1:21:36] something to look at because usually you

[1:21:38] do get a pretty good ROI because it's

[1:21:40] something they're just steadily focused

[1:21:41] on, right?

[1:21:43] >> Yeah. I think the thing we just had to

[1:21:44] watch a little bit of we've had people

[1:21:46] find a grant and then try to shoehorn

[1:21:49] something into it and we've been trying

[1:21:51] really hard to make sure we're matching

[1:21:52] a community need to that. So we're not

[1:21:54] just doing a project because we have a

[1:21:56] grant that'll cover it, but we're

[1:21:58] projects and matching them with grants

[1:21:59] that can help.

[1:22:00] >> Free money. Yeah.

[1:22:01] >> Yeah.

[1:22:03] >> Thank you.

[1:22:04] >> I was going to say I had a

[1:22:06] former fire chief that said the same

[1:22:08] thing about a just a communal somebody

[1:22:11] that could help the different

[1:22:12] departments write these grants because I

[1:22:14] do know that the departments are experts

[1:22:16] in writing the grants they've written

[1:22:17] for years but sometimes they need help

[1:22:21] and can collaborate right with somebody

[1:22:27] » add it to the list.

[1:22:37] And that's pretty much it. We haven't

[1:22:38] changed our budget much the last year.

[1:22:40] We've found ways to cover the things

[1:22:41] that have increased. And again, when we

[1:22:44] looked at that surplus, wherever we

[1:22:46] weren't spending money, we used it to

[1:22:48] help balance our budget the next year.

[1:22:49] And we've adjusted some of the revenues.

[1:22:51] Great.

[1:22:52] >> Any questions for Carla? Yeah. Councilor

[1:22:54] Christensen.

[1:22:55] >> Mind putting up the CIP projects again?

[1:22:59] Um, I I just want to call out that the

[1:23:02] city made a decision years ago to save

[1:23:06] this building and anytime you do that,

[1:23:09] it's more expensive. It's easier to just

[1:23:11] level it, put up a steel girder

[1:23:12] building, maybe uh something inexpensive

[1:23:15] and made out of metal on the outside.

[1:23:18] The decision was to make this a

[1:23:19] remarkable place and it's just more

[1:23:23] expensive to do that. And so when we

[1:23:24] look at these expenses coming up, we do

[1:23:26] need to anticipate as a city

[1:23:29] um

[1:23:31] looking out for these things because

[1:23:33] we've already made the decision. You

[1:23:34] pick up one end of the stick, you pick

[1:23:35] up the other beautiful, iconic, you

[1:23:38] know, historical building. Well, the

[1:23:39] other end of the stick is just more

[1:23:41] expensive. And so I appreciate you

[1:23:43] calling out what's coming up because we

[1:23:45] need to anticipate this. Some of this,

[1:23:47] yes, you might be able to address your

[1:23:49] existing budget. Others just going to

[1:23:50] have to come uh from additional funds.

[1:23:52] But I just I just wanted to call out

[1:23:54] that we made this choice a long time ago

[1:23:58] and

[1:23:58] >> it was a good choice.

[1:23:59] >> Yeah.

[1:24:00] >> Um I was thinking about this too and I

[1:24:01] was wondering and this might be a Brian

[1:24:04] question but I was wondering

[1:24:08] we can use city funds. Can we use

[1:24:10] general fund funds at the library?

[1:24:13] >> Yeah.

[1:24:15] I I was thinking about that too

[1:24:18] because the library involved some

[1:24:21] private fundraising and everything to

[1:24:22] save that building. The cubby also

[1:24:24] involved a lot of private fundraising,

[1:24:26] but when you look at the wrap tax, which

[1:24:30] will be coming later, we're putting in

[1:24:33] like $1.3 million of wrap funds into the

[1:24:36] cubby for their fiveyear CIP, but we're

[1:24:39] not doing a similar thing for the

[1:24:42] library for very similar

[1:24:44] >> Yeah. That's not

[1:24:45] >> facility, but it's still not an arts

[1:24:47] building.

[1:24:49] >> Well,

[1:24:49] >> doesn't meet arts or parks.

[1:24:51] >> It it doesn't in some ways. They do lots

[1:24:54] of art programs at the library as well.

[1:24:56] But what I'm saying is, you know, these

[1:24:58] are both two kind of public institutions

[1:25:01] for culture and value and we have been

[1:25:04] treating them differently with the funds

[1:25:06] that we have. Um, and so looking looking

[1:25:10] at that and trying to address Craig's

[1:25:13] point that we we pay for the building

[1:25:16] that we asked for.

[1:25:17] >> Yeah,

[1:25:18] >> I think that's good.

[1:25:19] >> It's more expensive.

[1:25:20] >> Yeah,

[1:25:21] >> we Marca,

[1:25:22] >> we didn't acknowledge you. You came.

[1:25:24] You've been here a while.

[1:25:25] >> That's okay.

[1:25:26] >> And Travis, too. Um, so just just a

[1:25:29] couple of comments because I agree. We

[1:25:31] looked at the rap text to see but when

[1:25:33] you have the language that they voted on

[1:25:37] and we can't change the language. Right.

[1:25:41] >> The park tax.

[1:25:42] >> Well, there's a there's also a um

[1:25:44] library arts and parks tax. Yeah. So,

[1:25:46] there's a lap tax, but I think even if

[1:25:48] we had worded the wrap text in such a

[1:25:50] way, I I don't know that it could have

[1:25:52] gone to library, but we didn't. And then

[1:25:56] the other thing is that you're

[1:25:57] absolutely right about the building and

[1:26:00] it's more expensive to maintain and

[1:26:02] people it's a beautiful iconic building

[1:26:04] that we want to maintain

[1:26:05] >> but um but they also have a very stable

[1:26:09] funding source and that they have

[1:26:12] property tax that that can support them.

[1:26:14] And so one of the things that um Carla

[1:26:17] uh has found that like that I know with

[1:26:20] the board um they want to be do best

[1:26:23] practice and if if there is a need to um

[1:26:28] not wait until it's you know a big huge

[1:26:32] increase that they need but to you know

[1:26:34] build it up. Um I it's actually from me

[1:26:39] that that's not something that I don't

[1:26:41] think we need this year because there is

[1:26:43] money to cover

[1:26:45] >> the stuff right so that is something to

[1:26:47] look at in the future

[1:26:49] >> I think

[1:26:51] councelor Bogdan

[1:26:53] >> I'm glad you brought that up because

[1:26:54] that's what I was going to say to

[1:26:55] Rachel's counterpoint to Rachel's death

[1:26:57] is the library has a steady source of

[1:27:02] funding does and what I would rather see

[1:27:06] is a certain percentage of those tax

[1:27:08] funds set aside for her repairs because

[1:27:11] that's what you have. And so generally

[1:27:15] we've just been using it as operational

[1:27:17] budget and then you've been using what

[1:27:19] the endowment for repairs. But what

[1:27:22] needs to happen is you need to carve out

[1:27:25] a section of your taxes just for for

[1:27:28] repairs and then have your operational

[1:27:30] budget on the rest of it. So, I don't

[1:27:32] think it's fair comparison because they

[1:27:35] have had that ability for

[1:27:38] years.

[1:27:39] >> Well,

[1:27:41] I I think what we would need in order to

[1:27:43] do that is to raise the property taxes

[1:27:45] so that it would accommodate that

[1:27:47] because they've already had operations

[1:27:49] as as much as they can. Um, and the

[1:27:52] ability to raise those taxes lies with

[1:27:54] us, not the library.

[1:27:56] >> It does, but I haven't seen that from

[1:27:58] them in years. And so I think it's going

[1:28:00] to ever actually.

[1:28:02] >> So would you like to see a budget that

[1:28:04] says we want to be able to have this

[1:28:06] much money to put in for the repair fund

[1:28:09] and to do that we would need council to

[1:28:12] approve a property tax raise of x amount

[1:28:14] for this year. She probably not this

[1:28:17] year but look at it in the future for

[1:28:18] the future years.

[1:28:19] >> I think that makes sense.

[1:28:20] >> I would rather crew it than like let's

[1:28:23] wait till all this falls apart then got

[1:28:25] 1.8 million. Let's let's be smart and

[1:28:28] stay ahead. So yes, I I would agree with

[1:28:30] that point.

[1:28:30] >> But Ryan, how would we could we word

[1:28:32] that that she can't touch that for

[1:28:34] operational funds that she has to have a

[1:28:36] certain amount of that property tax only

[1:28:39] to go to forge repairs?

[1:28:41] >> Can I just jump in for a second? And

[1:28:44] with the revenue adjustments and some of

[1:28:46] the things that we are with this budget,

[1:28:48] I didn't go into the weeds into it, but

[1:28:49] it was about $300,000 more through the

[1:28:52] adjustments and new build and all that we got this year above what we got

[1:28:57] last year. and over half of it is being

[1:29:00] set aside for building things like so we

[1:29:03] are we are moving that way. We cut so

[1:29:06] much back that one year that every year

[1:29:08] I'm trying to put more money back. Like

[1:29:10] we had just zero maintenance money even.

[1:29:13] So I believe about 150,000 at least of

[1:29:18] the additional funds that we have. But

[1:29:20] we haven't seen our chargebacks. Like

[1:29:22] there's a lot of numbers I don't have

[1:29:23] yet for my overall budget, but I'm

[1:29:25] hoping at least half of it goes to and

[1:29:27] if every year I can just keep moving

[1:29:29] more of that over, I think we can get a

[1:29:31] lot of that. But I didn't want these

[1:29:35] costs to come out of nowhere.

[1:29:37] >> Yeah.

[1:29:38] >> And it's hard to know. Some of the

[1:29:41] adjustments were made to our revenue

[1:29:44] stream, which is great, but there are

[1:29:45] some years when it comes in below comes

[1:29:48] in when there's a surplus and there's

[1:29:49] some below. And um property taxes is a

[1:29:52] very stable revenue, but plus or minus 3

[1:29:55] or 4%, which is several hundred,000. So,

[1:29:59] I'm trying to build that in so that we

[1:30:02] aren't in the black. we still have that

[1:30:03] and that we are when we can putting

[1:30:05] money aside in the ending fund balance

[1:30:07] so that we can cover those building

[1:30:09] costs and keep building that up. So I

[1:30:11] don't want you to think that we're

[1:30:12] ignoring that because that was a big

[1:30:13] concern that you guys had years ago when

[1:30:15] you gave us the increase that building

[1:30:17] cost and it's not something I have

[1:30:19] forgotten. That's something that's

[1:30:20] really important. So it was important to

[1:30:22] community that we didn't cut services

[1:30:24] and I felt like it was important to you

[1:30:25] guys that we made sure and take care of

[1:30:26] our building and I've really tried to

[1:30:28] balance those two as we are going

[1:30:30] forward. So go ahead, councelor

[1:30:31] Woodlock.

[1:30:32] >> So I just want to make sure I

[1:30:33] understand. So for this 1.8 million of

[1:30:35] needs, you're saying some of these you

[1:30:38] expect to be able to chip away with

[1:30:40] operating surplus, but is there a plan

[1:30:43] for the gap? How much do you think that

[1:30:44] gap is? Because I think that's what

[1:30:45] we're talking about, like how do we meet

[1:30:46] that gap? Is it a transfer from the

[1:30:48] general fund? Is it a property tax

[1:30:49] adjustment?

[1:30:51] >> Those are all options. And I just don't

[1:30:54] know based on our I just I don't know if

[1:30:57] we'll have surpluses or deficits in our

[1:31:00] revenues. I I can't tell you. I would

[1:31:02] love to say that every year we'll have a

[1:31:04] couple hundred thousand that we are able

[1:31:05] to put aside for that. Though it's more

[1:31:09] like $400,000 a year to cover these. So

[1:31:12] there is a gap and that's kind of what

[1:31:14] I'm bringing to you is there is going to

[1:31:15] be a gap. I've got it covered next year.

[1:31:17] I feel like we're in a really good

[1:31:18] place. I think our budget again trying

[1:31:20] to set money aside for the building and

[1:31:22] if if um new build continues to more

[1:31:26] than cover what our personnel like merit

[1:31:29] increase and all that like that's a big

[1:31:30] chunk of where a lot of that goes. If

[1:31:32] that covers that and we're able to

[1:31:33] continue to stash away 500 100,000 every

[1:31:36] year into that building fund so that

[1:31:38] we're building that that is what I would

[1:31:39] love. I just can't guarantee that that's

[1:31:41] going to happen again because while that

[1:31:44] revenue stream is very constant, it

[1:31:46] isn't 100%.

[1:31:50] >> For sure. So, councelor Bogen, in answer

[1:31:52] to your question, just to go back to

[1:31:53] that, no, you can't bind future

[1:31:56] councils. And so, I now having said

[1:31:58] that, city budgets have a lot of inertia

[1:32:01] and it's pretty rare for things to go

[1:32:04] out of where they want them to be. But

[1:32:05] to answer your question directly, if you

[1:32:07] raised property taxes enough to generate

[1:32:10] $200,000 more a year with the idea that $200,000 goes into a CIP budget for

[1:32:16] the library, the only thing that forces

[1:32:19] that money to stay in that CIP budget is

[1:32:21] the council every year putting that

[1:32:23] money into the CIP budget. If 10 years

[1:32:26] from now a new director and a new

[1:32:28] council says, "We want to host rock

[1:32:32] concerts at the at the library and we

[1:32:34] want to take all the money out of CIP to

[1:32:36] fund it." There's nothing to prevent

[1:32:38] them from doing that.

[1:32:40] >> But isn't also my library board is the

[1:32:43] one that approves my budget. They are the ones

[1:32:47] >> that technically have the yes or no for

[1:32:49] where the money goes.

[1:32:50] >> Us.

[1:32:53] >> We're the ones that approve your budget.

[1:32:54] No, we do the tax increase, but her

[1:32:57] board

[1:32:58] >> decides where

[1:32:59] >> we don't approve her.

[1:33:00] >> Well, it's

[1:33:02] >> Sorry, Jean and I have some differences

[1:33:05] of opinion about this. Actually, state

[1:33:06] code is a little bit in my view

[1:33:08] ambiguous. State code gives a lot of

[1:33:10] power to the library board. Um the

[1:33:16] my personal opinion is that it's a mix

[1:33:17] of the two because uh the library is

[1:33:21] still part of the city. I I don't

[1:33:23] necessarily think that the library board

[1:33:25] could do something that the city council

[1:33:28] could not change, but

[1:33:32] the state code on it is in my view not

[1:33:34] completely clear and it does grant a lot

[1:33:36] of power to the library board. So, it's

[1:33:38] a different institution than any other

[1:33:41] part of the city because of that.

[1:33:45] Councelor Whitlock,

[1:33:46] >> I just wanted to follow up on a few

[1:33:48] things in the budget report that to get

[1:33:50] your perspective on them. Um, so you

[1:33:52] said it says that like there's been a

[1:33:54] decline in circulation and that's made

[1:33:57] fewer items built for checkout and

[1:33:59] basically this I kind of get the sense

[1:34:01] maybe it's leading to like a negative

[1:34:02] cycle a little bit where it's like

[1:34:04] because things are not available, we're

[1:34:05] not getting as much um circulation.

[1:34:09] Can you just speak more to that?

[1:34:10] >> Yeah. Yeah. when we two years ago when

[1:34:12] we had big budget cuts, we cut 10% of

[1:34:14] our of our material buying budget. So,

[1:34:17] we were buying fewer things and we have

[1:34:18] seen about a 10% decrease in our

[1:34:20] checkouts.

[1:34:22] So, I do feel like those things are

[1:34:23] linked and that's one place where we're

[1:34:25] putting every year one or two% like

[1:34:27] trying to get it back up to that because

[1:34:30] if you have fewer items that people want

[1:34:32] to check out, people will check out

[1:34:33] fewer things. So, we want to get back to

[1:34:35] where we're supplying the community what

[1:34:37] they need so they're not waiting on hold

[1:34:39] for a really long time.

[1:34:42] And then another thing I wanted to

[1:34:43] double click on is we cut the streaming

[1:34:46] services and we're getting a lot of

[1:34:48] community feedback from that. Can you

[1:34:50] say more to that? And like how much did

[1:34:51] we save by cutting it? How much have we

[1:34:53] quantified the demand of people wanting

[1:34:54] it back?

[1:34:55] >> Yeah, we cut um the music streaming was

[1:34:57] 20,000 and also the video streaming was

[1:35:00] $20,000 a year. The music streaming we

[1:35:03] have had less feedback that people care

[1:35:06] about that as much. Um, but the movie

[1:35:08] streaming we have, we actually found

[1:35:10] about $5,000 to do a very limited

[1:35:12] streaming account. But, um, they would

[1:35:14] like, we have received quite a bit of

[1:35:16] feedback. They would like full thing

[1:35:17] back. And nobody

[1:35:19] was enraged. Like, everybody understood

[1:35:20] that we were cutting and this is kind of

[1:35:23] a place where we could cut a whole

[1:35:25] bunch. Um, that is something that we

[1:35:27] really want to put back in the next

[1:35:28] couple years as we hopefully find

[1:35:31] additional um, new build revenue and

[1:35:34] stuff like that. That's just slowly

[1:35:35] we're building to try to put put that

[1:35:37] back because it's something that

[1:35:38] libraries more and more are being

[1:35:40] expected to to provide.

[1:35:43] >> Thank you. And then one last question is

[1:35:46] and and maybe I I just want to make sure

[1:35:48] I got my numbers here is basically the endowment's generating about 100k

[1:35:51] per year. Correct.

[1:35:52] >> If we have good interest rates, which we

[1:35:55] do,

[1:35:56] >> right,

[1:35:56] >> until we don't,

[1:35:57] >> right? But then we're drawing like 140k

[1:36:00] from it.

[1:36:01] >> Uh we didn't touch it at all this year.

[1:36:03] So it's in the past we have

[1:36:05] >> we have

[1:36:06] >> we did the last the two years before

[1:36:08] that um when it was only earning like

[1:36:11] one or two% a year um it was much less

[1:36:14] and we let it build up for several years

[1:36:16] I think it helped pay for carpet and

[1:36:18] then we let it build up for five years

[1:36:19] it helped pay for um roofing and stuff

[1:36:21] like that. So it just kind of depends on

[1:36:22] what our needs are and

[1:36:24] >> and so there's not like a plan to

[1:36:25] continue drawing from it or it just kind

[1:36:27] of as as needed.

[1:36:28] >> It's been as needed which has been

[1:36:31] needed a lot.

[1:36:32] >> Right. So just if we've had a project

[1:36:35] that came up, we weren't sure where that

[1:36:36] money was coming from. We looked to see

[1:36:38] how much would we be drawing out if we

[1:36:40] left it at two million and just brought

[1:36:41] out that interest. So we have used it

[1:36:44] pretty regularly over the last three

[1:36:47] years, but not this.

[1:36:49] >> What's been like the secular trend of

[1:36:50] the balance beyond the window provided

[1:36:52] in this report?

[1:36:56] >> Uh that's a good question. I haven't

[1:37:00] been watching it more than for the last

[1:37:01] four years. So, I'm not sure. I know

[1:37:03] that it took about 15 years to get to 2

[1:37:06] million. So, it took quite a while

[1:37:08] because the endowment originally was, I

[1:37:12] think, closer to 1.5 million. And so,

[1:37:14] they let it grow over a whole bunch of

[1:37:16] years until it reached that 2 million.

[1:37:19] And then the only draws that I know of

[1:37:22] were again the carpet and the roofing.

[1:37:24] And then I've drawn it out um for some

[1:37:27] parking structure repair and then

[1:37:31] uh the gutters. We used it for the

[1:37:33] gutters the year before and then hoping

[1:37:35] to let it build up again so we could

[1:37:36] help it pay for the boiler.

[1:37:38] >> Okay. Thank you.

[1:37:39] >> We had we saw that on the horizon and

[1:37:40] knew that we would need that money.

[1:37:42] >> Yeah.

[1:37:43] >> Just wanted to build on the um

[1:37:45] circulation question. So you've seen it

[1:37:47] go down a little bit. How does it trend

[1:37:48] with other libraries in the state?

[1:37:51] Um,

[1:37:53] I haven't looked at them this year.

[1:37:55] Overall, circulation has been nationally

[1:37:59] going down. People are using libraries

[1:38:02] less. Um, we've always been really proud

[1:38:05] because ours continues to grow. Our

[1:38:07] print checkouts do go down, but our

[1:38:09] digital checkouts go up. And we have

[1:38:13] overall gone up until the last couple of

[1:38:15] years

[1:38:18] » because I think people are are checking

[1:38:20] out pure print books, but everybody

[1:38:22] likes downloadable ebooks.

[1:38:26] » Yeah, that's what I'm hoping.

[1:38:27] >> I was just curious how it's going with

[1:38:28] the ballroom rentals. We had increased

[1:38:30] price. We're trying to find an

[1:38:32] equilibrium of like what people would

[1:38:33] pay but not pay, you know, not charge

[1:38:35] too much. I know it's not a huge,

[1:38:38] >> you know, budget breaker or anything,

[1:38:39] but I was just curious how that went.

[1:38:41] >> Yeah, it's our usage has not gone down.

[1:38:43] In fact, I was just told the last couple

[1:38:45] of months have been our highest months

[1:38:47] ever for revenue brought in by our

[1:38:50] meeting rooms. We did, and maybe I

[1:38:52] should put this in the report, but it's

[1:38:53] in the um consolidated fee schedule, but

[1:38:56] we did increase it again another 5% for

[1:38:58] almost all of our meeting rooms and

[1:39:00] included that in our in our revenues as

[1:39:02] well. at 5% up and I kind of like that

[1:39:06] just in incremental we did do we did

[1:39:08] compare it to the other meeting spaces

[1:39:10] in the community just to make sure and

[1:39:12] they were all doing between a three and

[1:39:14] 10% increase this last year too so it

[1:39:16] stayed in

[1:39:17] >> okay it makes sense to just kind of keep

[1:39:20] pinching it and seeing you know what the

[1:39:23] elasticity is right the price elasticity

[1:39:26] and such go econ 101

[1:39:29] >> also looking to make sure that it's

[1:39:31] covering the cost of the staff that make

[1:39:33] it run because that was kind of a big

[1:39:36] moment for us that that it is and so

[1:39:38] we're we're watching that as well.

[1:39:39] >> Thanks for that update.

[1:39:40] >> Yeah.

[1:39:41] >> All right. Anything else for Carla?

[1:39:43] >> Hey, thanks so much.

[1:39:44] >> We are one last little thing. It's our

[1:39:46] 25th year in the building.

[1:39:48] >> Oh,

[1:39:50] we have some little goodie bags. These

[1:39:51] are actually um prizes that we're giving

[1:39:53] out for a anniversary challenge at the

[1:39:56] library. So, if they do six challenges,

[1:39:57] they get these. But, I bought one for

[1:39:59] each of you.

[1:39:59] >> Love it. help us celebrate. It's now an

[1:40:02] extensive building

[1:40:04] >> because it's 25 years old. Thank you

[1:40:06] guys so much.

[1:40:06] >> Thanks, Carla.

[1:40:07] >> You guys put the banner over the street.

[1:40:11] >> All right.

[1:40:14] >> Next, we have a presentation for the

[1:40:15] 2027 budget parks and wreck. This will

[1:40:19] be presented by our interimm director of

[1:40:20] parks recy.

[1:40:31] Hey,

[1:40:42] » sorry I got to wait for the riff raff to

[1:40:44] get into the room. So, appreciate your

[1:40:46] time.

[1:40:48] Um,

[1:40:51] thanks for having us out. We're the

[1:40:52] parks and recreation department. Uh I'm Foster in the department

[1:41:00] currently uh but we've brought some of

[1:41:02] our division staff members. So uh many

[1:41:04] of our managers that are here that if we

[1:41:06] have questions uh specifically to speak

[1:41:07] to that they can. Um,

[1:41:10] as always, we've approached this budget

[1:41:12] with a deep sense of responsibility,

[1:41:14] recognizing that every dollar entrusted

[1:41:16] to us is precious and then and that it

[1:41:20] represents the hard work um of our

[1:41:22] residents and the priorities of this

[1:41:23] council. So, this budget year is very

[1:41:26] simple. It resembles very closely uh

[1:41:29] years previously, and we only have two

[1:41:30] supplemental requests. So, we'll go over

[1:41:32] those when we get to those and then I'll

[1:41:34] point those out. Um, just as a general

[1:41:37] outline, if you want Oh, this is it,

[1:41:39] isn't it? Just as a general outline. Um,

[1:41:42] we've answered all the questions as far

[1:41:43] as needs and and other uh appropriations

[1:41:46] here. And then we'll talk about the

[1:41:49] performance measures and then we'll go

[1:41:50] over key accomplishments as we as as we

[1:41:53] do for each of our different divisions.

[1:41:55] We've got about eight of them. So,

[1:41:57] starting at the Peace Ice Arena,

[1:41:59] um the ice arena continues to operate

[1:42:02] effectively with no uh additional under

[1:42:04] un unfunded or underfunded needs.

[1:42:07] Services or initiatives that need to be

[1:42:08] funded are none and appropriations as

[1:42:10] well none. Uh the only thing to note

[1:42:12] here is that um the Peaks Iceize Arena

[1:42:15] will host will be a host venue for the

[1:42:16] 2034 Olympics and because of that we're

[1:42:19] planning uh for needed upgrades

[1:42:22] and uh but we are doing this very

[1:42:24] responsibly and with the assistance from

[1:42:25] the state and we just wanted to note

[1:42:27] that for future obligations it says on

[1:42:29] there long-term visions. So that's one

[1:42:31] for the Peaks Ice Arena. So many of you

[1:42:32] know about

[1:42:35] uh the performance measures for the ice

[1:42:36] arena. uh we have a good balance of

[1:42:39] programming and public activities,

[1:42:41] rentals, tournaments uh that diversify

[1:42:44] uh our offerings and currently we're at

[1:42:46] 98% booking capacity. So that's very

[1:42:48] high. Um almost every free hour is used

[1:42:51] that we have of ice and turf

[1:42:53] availability. Uh it's 100%

[1:42:56] self-sustaining operation with no

[1:42:58] operational subsidy and we return about

[1:43:00] uh it's about 109% total cost recovery.

[1:43:03] Public skating is very popular still in

[1:43:06] Provo. And the ice arena tracks uh

[1:43:09] numbers of the ice arena tracks the

[1:43:12] number of ice resurfaces every year. And

[1:43:14] while that might seem like an

[1:43:15] insignificant number, it's the number of

[1:43:17] zams we do every year. But that also

[1:43:19] tells us it's an indicator of how

[1:43:20] popular and how busy they are in Provo.

[1:43:22] Uh and then according to the visitors

[1:43:24] bureau with the tournaments that we do

[1:43:26] run, we we generate about $5 million of

[1:43:28] economic impact.

[1:43:31] Some of the key accomplishments this

[1:43:32] year we hosted the Olympic listening

[1:43:34] tour. So some of you may have heard

[1:43:35] about that. We had um uh those from the

[1:43:38] commission from uh the parolympic winter

[1:43:41] games organizing committee that came in

[1:43:43] uh and then they also at the peak ice

[1:43:45] arena funded a chiller replacement

[1:43:46] completely on their own about half

[1:43:48] million dollars turf replacement and

[1:43:50] then they are 100% self-sustaining and

[1:43:52] they host about seven tournaments. So,

[1:43:53] we talked about $5 million of economic

[1:43:55] impact and these are just some of the

[1:43:58] Olympic preparations that they're getting ready for.

[1:44:01] Um,

[1:44:04] yeah, one of the other amazing things to

[1:44:06] note here at the ice arena is that

[1:44:08] they're having a record setting year.

[1:44:09] Uh, just very bannered year as far as uh

[1:44:12] their revenues are concerned. So, this

[1:44:14] purple line is the one that we're

[1:44:15] following here forations.

[1:44:18] >> Oh, nice.

[1:44:19] >> So, um many of these numbers like these

[1:44:22] are their banner months. Some of these

[1:44:23] months right here are historic months

[1:44:25] that they have up there which are really

[1:44:26] cool to see. So this year I think

[1:44:28] they'll have a record setting revenue

[1:44:29] years. They've got a couple months left

[1:44:31] uh to bank that out. But they do put

[1:44:33] away a lot of that and we plan on doing

[1:44:35] a lot of those renovations ourselves if

[1:44:37] we can and then as we go into the

[1:44:39] Olympics we'll see some of that.

[1:44:41] >> What do you attribute the revenue to?

[1:44:43] >> There's a huge increase. Well, we are

[1:44:45] the only ice arena in Utah County. So

[1:44:46] that's one. You kind of have the

[1:44:47] monopoly there as well as the increase.

[1:44:50] It's an Olympic year. So that's always

[1:44:52] drives more ice winter related sports as

[1:44:56] well as we have the mammoth here

[1:44:58] >> which is our NHL hockey team. So those

[1:45:01] two things are just

[1:45:02] >> so just interest generally is higher due

[1:45:04] to

[1:45:04] >> in ice sports and

[1:45:06] >> have we has has our pricing gone up at

[1:45:08] all or

[1:45:09] >> uh for rentals or

[1:45:12] >> we are we have put

[1:45:13] >> the little the little uh push things

[1:45:16] that I use to keep myself from falling

[1:45:18] >> the walkers.

[1:45:19] used to all those walkways even though

[1:45:21] they're skating.

[1:45:22] >> Uh we do have a few uh fee increases

[1:45:24] that you'll you'll probably see in the

[1:45:26] consolidated fee schedule. So we're

[1:45:28] looking at raising ice costs there. Um

[1:45:30] this is even with u let's see the new

[1:45:33] mammoth practice facility that's online

[1:45:36] there. There is plenty of need I think

[1:45:38] in the county and some of the county

[1:45:39] commissioners have have mentioned that

[1:45:40] there's need this here and I think Lehi

[1:45:43] had a a feasibility study for ice.

[1:45:45] >> Yes.

[1:45:45] >> Well, they they denied it but

[1:45:48] >> Right. Right. They were talking about

[1:45:49] doing that.

[1:45:50] >> Um, is there still talk about possibly

[1:45:53] expanding the ice like doing an ice rink

[1:45:56] or ice ribbon or something just because

[1:45:58] it is so popular?

[1:45:59] >> Uh, we can always dream. We we don't

[1:46:02] have anything currently in the CIP. Uh,

[1:46:05] we we would Yes, there is a need. So, if there's any opportunities there, uh

[1:46:10] there's things that we could do. Yeah,

[1:46:11] >> that was what I wrote for the big idea

[1:46:14] for getting the regional funding speed

[1:46:16] skate rivet showing.

[1:46:18] >> Yeah, we've done some concepts. We've

[1:46:20] looked at it before of of ways to

[1:46:22] incorporate this. One of the things that

[1:46:23] we thought of is maybe creating a plaza

[1:46:25] out front of the facility where we could

[1:46:27] have the a watch party so others could participate in Olympic type

[1:46:33] activities but still be close enough to

[1:46:35] the venue if they can't get in. So,

[1:46:36] those are some things that we've talked

[1:46:37] about. Yeah.

[1:46:39] >> Okay. Okay, so that's the ice arena uh

[1:46:41] sports and epic sports park complex. Uh

[1:46:43] this is just one of our first uh

[1:46:45] supplementals that I wanted to point

[1:46:46] out. Uh sports is requesting a part-time

[1:46:49] sports coordinator to run the additional

[1:46:51] programming. We're looking at adding

[1:46:52] pickle ball, ultimate frisbee, and rugby

[1:46:54] uh are a couple of them. And but as far

[1:46:57] as everything else, they're not asking

[1:46:58] for any any other appropriations or

[1:47:00] anything else. The fees to the to to run

[1:47:02] these programs would essentially cover

[1:47:03] the cost of that employee. So there's no

[1:47:05] net or any increase there. Yeah. Are we

[1:47:07] increasing fees for this too?

[1:47:09] >> So the fees would just be built in. So

[1:47:11] we we calculate within sports about a

[1:47:13] 25% buffer 15 to 25% buffer and that

[1:47:17] covers the cost of the employees wages.

[1:47:18] >> Right. Right. But this next year for

[1:47:22] budgets in 27 are we increasing the fees

[1:47:25] here too

[1:47:26] >> for sports programming?

[1:47:27] >> Yes.

[1:47:27] >> I don't think we have anything. Do you

[1:47:29] >> for the

[1:47:32] may asking

[1:47:32] >> well for for all of it because I didn't

[1:47:34] see any any increases here. So that's in

[1:47:37] the consolidated fee schedule which we I

[1:47:39] think we submit submit.

[1:47:41] >> We haven't seen any of that. Have you

[1:47:42] not seen that?

[1:47:42] >> Yeah. And normally when we're seeing

[1:47:44] these these presentations will be

[1:47:47] >> we Yeah, we we like energy just showed

[1:47:49] us theirs. Um the airport just showed us

[1:47:52] theirs, but I haven't seen anything from

[1:47:54] yours yet.

[1:47:54] >> Got it. So separately we do we do the

[1:47:57] consolidated fee schedule which we put

[1:47:59] together the different fees. That's

[1:48:01] never been part of our budget

[1:48:02] presentation, but we'd be happy to speak

[1:48:03] to it. Currently in sports, I don't

[1:48:05] think they are adding any additional

[1:48:07] fees to any of the sports programming or

[1:48:08] the rentals at the IC or sorry at the

[1:48:11] Epic Sport. So, does that help answer

[1:48:13] that?

[1:48:14] >> Yeah.

[1:48:15] >> All right. Um, no underfunded needs or

[1:48:17] anything else in sports. Um, and we'll

[1:48:20] move to their performance measures. Uh,

[1:48:23] their performance measures here. One one

[1:48:25] thing that I did want to note is that

[1:48:26] they use an MPS score uh in their

[1:48:29] performance measures which just

[1:48:30] basically tracks um it's a metric to see

[1:48:33] the satisfaction of the participants

[1:48:35] included and a average score would be

[1:48:38] around a 30 and their performance

[1:48:39] metrics are generally around a 45 to 55

[1:48:42] score and so they do have high

[1:48:44] engagement and satisfaction from the

[1:48:46] different participants that are in their

[1:48:47] programs. So that's always fun to see.

[1:48:50] Uh as far as key accomplishments in the

[1:48:52] sports and epic sports park this year,

[1:48:55] uh the economic impact is looking to be

[1:48:57] close to 18.5 million in actual local

[1:49:00] spending. And so that's also come this

[1:49:02] number we've uh help been helped by the

[1:49:06] uh visitors bureau to help put these

[1:49:08] numbers together. Uh as you know they

[1:49:11] were awarded the sports complex of the

[1:49:12] year and this July they're hosting the

[1:49:15] US youth soccer premier tournament. And

[1:49:18] then we've also seen an uptick in

[1:49:20] programming such as girls softball at

[1:49:22] Fort Utah. They've seen multiple team

[1:49:23] growth. So that's been fun to see.

[1:49:25] >> Yeah.

[1:49:28] >> Um on the just a couple questions on the

[1:49:31] Epic Sports Park. So you list out

[1:49:34] numbers for like economic impact, but I

[1:49:36] didn't see numbers on like the actual

[1:49:39] performance of the park. Can you share

[1:49:42] anything on that?

[1:49:43] >> Yes. What specifically would you like to

[1:49:44] know about? um how's it have fees and is

[1:49:47] it self- sustaining from that

[1:49:49] perspective and just yeah financial

[1:49:50] performance.

[1:49:51] >> So good questions. So financially the

[1:49:54] operations are covered they budget and

[1:49:55] they fall within their budget. So if

[1:49:57] they don't hit their revenues they still

[1:49:58] won't spend up to them that that amount

[1:49:59] they'll balance their budgets internally

[1:50:02] uh if they don't hit their revenues but

[1:50:03] they are on track to hit their revenues.

[1:50:05] It's close to half a million I think in

[1:50:06] revenue that the Epic Sports Park brings

[1:50:08] in. uh and they are uh their booking

[1:50:12] window is also very high meaning the

[1:50:13] hours that they have aotted to book not

[1:50:15] very many and not much interest I guess

[1:50:17] during the early and afternoon parts of

[1:50:20] the day but in the evening time uh when

[1:50:22] coaches are available they are booked

[1:50:23] out most of the time so yes

[1:50:26] >> what's the rough utilization

[1:50:28] >> uh it's 80 to 90% in the evening time

[1:50:31] >> in the within the hours

[1:50:32] >> within yes and then we have that one

[1:50:35] designated field that we have open for

[1:50:36] local play so we've been keeping that

[1:50:38] um so that neighbors and others can come

[1:50:41] through and use that field. Yeah. Does

[1:50:43] that answer your question? And I can get

[1:50:45] you more specific numbers if you'd like

[1:50:46] to see.

[1:50:46] >> Yeah, I'd be interested to see those.

[1:50:48] Yeah.

[1:50:48] >> Okay.

[1:50:48] >> Could you send those to the council?

[1:50:50] >> Okay. Yeah. Can John, can you make a

[1:50:53] note of that?

[1:50:53] >> Okay. Thanks,

[1:50:55] >> counselor.

[1:50:57] >> Um has there been any negative impact to

[1:50:59] the quality of the fields that the field

[1:51:01] that is open for community?

[1:51:03] >> Certainly, we haven't seen much. Right.

[1:51:05] And I think

[1:51:06] >> how the usage been on that

[1:51:08] >> of the field, the open field that we

[1:51:10] have, it's minimal. It has been minimal.

[1:51:12] I don't think there's been a major

[1:51:13] announcement that it's been open. And I

[1:51:16] think maybe that's strategic to make

[1:51:17] sure that the local people know about it

[1:51:19] instead of just massively letting

[1:51:21] everybody know, but um it hasn't been

[1:51:24] overly utilized and there hasn't been

[1:51:27] any major damage to the fields that we

[1:51:29] know of yet. Yeah.

[1:51:32] >> Yeah. So, how many fields are

[1:51:34] operational right now?

[1:51:36] >> We have 15 15 fields.

[1:51:37] >> Okay. So, a tournament can use up to 15

[1:51:39] at one time.

[1:51:40] >> Correct.

[1:51:40] >> And how much is it again once it's

[1:51:42] totally done?

[1:51:43] >> 21 fields is the goal is the target.

[1:51:45] >> Are we finding there's a lot of

[1:51:48] tournaments where we don't have enough

[1:51:49] space for them?

[1:51:50] >> Correct. So, this US youth soccer

[1:51:53] premier tournament that we're hosting,

[1:51:54] we are splitting that with Salt Lake.

[1:51:56] So, part of it will be up at the rack

[1:51:58] and part of it will be here. Oh,

[1:51:59] >> okay. So, yes. If we had 21, could we

[1:52:01] host the whole thing?

[1:52:03] >> Most likely. Yes.

[1:52:05] >> And how often does that happen?

[1:52:06] >> So, they're looking at to contract with

[1:52:08] us for two years. So, this may be this

[1:52:10] year and the next, although we don't

[1:52:12] have an official uh contract agreement

[1:52:14] with them yet,

[1:52:14] >> but there's lots of other tournaments.

[1:52:16] >> Oh, yes. Yes.

[1:52:18] >> That's just one weekend out of the year,

[1:52:19] right?

[1:52:19] >> Yeah. This is actually one month out of

[1:52:21] the year. This is this will be a big one

[1:52:22] that we've booked aside for about a

[1:52:24] month for the year. So, yeah.

[1:52:26] >> Yeah.

[1:52:27] >> Sorry, random question. um flies,

[1:52:31] mosquitoes. Have we had any complaints

[1:52:33] from you know

[1:52:35] >> actually very little

[1:52:36] >> participants about those types? I know

[1:52:37] there was a lot of concern around that

[1:52:40] deterrent.

[1:52:41] >> No, I would say the bigger challenge for

[1:52:43] us out there is actually wind just

[1:52:44] because it's so open and where it's at

[1:52:46] on

[1:52:47] >> complaints about wind.

[1:52:48] >> Yeah, wind. Wind will come. It'll affect

[1:52:49] our sprinklers. It will do some other

[1:52:51] things to us. Wind wind has been the the

[1:52:53] bigger factor. I don't think there's a

[1:52:54] lot that draws the flies and mosquitoes

[1:52:56] there. We don't have any lights there

[1:52:57] and so we very conscientious of that uh

[1:53:00] in the initial design of that. So,

[1:53:01] >> and tournaments don't have a desire to

[1:53:03] have night play.

[1:53:04] >> I'm sure they would. We just don't have

[1:53:06] lights. And then it also allows us to

[1:53:08] kind of cap the time that they're able

[1:53:10] to use so that we don't ruin or destroy

[1:53:12] fields. We need some growback time in

[1:53:13] there as well.

[1:53:15] >> So, yeah. Uh well, another question is

[1:53:18] on these economic impact numbers. Could

[1:53:21] you just give us a summary of like the

[1:53:22] key assumptions that go into that?

[1:53:26] the economic impact numbers that go into

[1:53:29] >> the for specifically on your sports

[1:53:30] performance measures. I think they're

[1:53:32] specifically epic sports park related

[1:53:33] economic impacts.

[1:53:37] » Yes. Um

[1:53:40] is there one specific that you're

[1:53:43] >> is that row where it's had 3.5 million

[1:53:45] in 2025 12.5 million this year and then

[1:53:49] a and then an assumption of 24.5

[1:53:51] million. I'm just curious if you could

[1:53:52] like kind of walk us through the

[1:53:54] assumptions to

[1:53:54] >> So the first year that we opened we

[1:53:56] opened in the fall and so that's why you

[1:53:58] only saw 3.5 million so it wasn't a full

[1:54:00] season worth of of usage and then this

[1:54:03] uh 12.5 uh was our is our current rate

[1:54:07] and then that that's our target for this

[1:54:08] year. So with the additional turns that

[1:54:10] we have spring of this year into right

[1:54:13] before July that will add to the 18.5

[1:54:15] that we're projecting and then 24.5 is

[1:54:18] our target for 27 is what we want to

[1:54:21] accomplish in 27.

[1:54:22] >> Yeah. What what

[1:54:23] >> we're asking though is that that's

[1:54:24] helpful context but kind of like what

[1:54:25] are the assumptions in the model that to

[1:54:28] come up with those numbers?

[1:54:30] >> What goes into making that number?

[1:54:32] >> Right. So the way that uh there's two

[1:54:36] things we've been using placer AI data

[1:54:38] one to to calculate these numbers and

[1:54:39] the second thing is also um we're kind

[1:54:42] of corroborating that with the numbers

[1:54:45] that we get from the visitors bureau and

[1:54:46] the visitors bureau's model from what I

[1:54:49] understand from uh explore Utah Valley

[1:54:51] is that they get their numbers based on

[1:54:52] hotel room nights and so there's a calculation that goes in that

[1:54:56] says if you stay overnight then this is

[1:54:58] the amount that you would spend in food

[1:55:00] hotel lodging rental are and so that

[1:55:03] those are the assumptions that go into

[1:55:05] those numbers is that calculation and I

[1:55:07] don't have the exact numbers in that

[1:55:08] calculation but I know that theirs is

[1:55:10] based there's one calculation that's

[1:55:12] based on hotel room nights and there are

[1:55:14] others that we pull based on economic

[1:55:16] impact from placer AI and we kind of

[1:55:18] compare those two to make sure that

[1:55:19] they're pretty similar

[1:55:22] >> yeah okay

[1:55:26] » so last year I didn't know I noticed

[1:55:28] that there was quite a few weekends

[1:55:30] without tournaments are we more filling

[1:55:34] that role. So, we have tournaments more

[1:55:36] there or are we still vacant for quite a

[1:55:38] bit of this season?

[1:55:39] >> We're more full. And I guess that goes

[1:55:40] back to the previous question as well.

[1:55:42] Almost all of our bookable times are

[1:55:45] full, meaning that good weekends, where other sports don't

[1:55:49] conflict. And there are some weekends

[1:55:50] that other tournaments are happening in

[1:55:52] other locations and so they're not as

[1:55:54] popular. Or it if it's a more Memorial

[1:55:56] Day tournament or things like that, it

[1:55:58] might be a more heavily soughtafter

[1:56:00] weekend. And so they calculate all of

[1:56:01] that in uh for the ice world it's

[1:56:03] President's Day, right? Certain certain

[1:56:05] times they'll have certain tournaments

[1:56:07] that happen. Those that have kids in

[1:56:08] sports probably recognize that there are

[1:56:10] certain times that they definitely have

[1:56:12] certain

[1:56:14] uh set tournaments that happen. And ours

[1:56:17] for those tournament weekends are

[1:56:18] generally booked. So we don't have every

[1:56:20] weekend booked, but it's almost one a

[1:56:22] month uh at the Epic Sports Park.

[1:56:24] >> One weekend a month.

[1:56:25] >> Almost one a month. Yeah. If not more

[1:56:27] for those times. Yeah. Okay.

[1:56:31] Uh recreation center recreation center

[1:56:34] has no uh asks. Um

[1:56:38] and uh our recreation center performance

[1:56:41] measures uh are currently

[1:56:45] down uh compared to current years just

[1:56:47] to be completely honest. Uh several

[1:56:50] factors that go into that. Um

[1:56:53] uh but we're hopeful. There is our

[1:56:55] upcoming season. So, their busy season

[1:56:57] has kind of broken into two with the

[1:56:58] summertime. So, we're coming into that

[1:57:00] busy season as the summer goes along.

[1:57:02] They've always been a self-sustaining

[1:57:03] facility. We're looking to hopefully uh

[1:57:05] accomplish that again this year. Um

[1:57:09] and uh the other thing to note is that

[1:57:12] our weekly and our fitness classes and

[1:57:14] class attendance and our programs have

[1:57:15] been up. So, those are a couple of our

[1:57:17] performance measures.

[1:57:18] >> So, so what is down then? Memberships.

[1:57:21] >> Memberships are down and revenue looks

[1:57:23] like it's a little down compared to

[1:57:24] previous years. Um, did we implement

[1:57:26] automatic renewal on memberships?

[1:57:30] >> Yes and no. Yes.

[1:57:34] >> Just trying to think.

[1:57:35] >> Okay. What do you mean yes and no and

[1:57:37] yes?

[1:57:37] >> So we switched to a new software explore

[1:57:39] software and that's one of our key

[1:57:40] metrics.

[1:57:41] >> And so that now does automatic renewals.

[1:57:43] >> It will. But we have

[1:57:44] >> that might help.

[1:57:45] >> We have different memberships that don't

[1:57:46] do automatic. So we have various

[1:57:48] memberships. So ones that we do have

[1:57:50] memberships that roll over. Yes, they do

[1:57:52] continue in memberships that don't that

[1:57:53] are just month-to-month. And we

[1:57:54] >> So, it looks like day passes sold is way

[1:57:56] down.

[1:57:57] >> Day passes are also a little low. Yeah.

[1:58:00] >> Uh to that to that point, which one?

[1:58:02] Because I I know historically your

[1:58:04] monthly has autorenewed, but your

[1:58:05] annually have not autorenewed. Has that

[1:58:08] been corrected?

[1:58:08] >> We've just made a change. So, you can

[1:58:10] get a monthtomonth you can. And then

[1:58:12] we've got a three-month and a yearly

[1:58:13] membership. And for the yearly

[1:58:15] membership, it's like paid in full when

[1:58:17] you start and a three-month is paid in

[1:58:19] full uh for the three months. And

[1:58:21] there's different price breaks and

[1:58:22] discounts that come along with those

[1:58:24] different um fees that are associated

[1:58:26] with that. The ones that will roll over

[1:58:28] were our yearly ones, our annual ones

[1:58:30] that we would continue to roll over.

[1:58:32] >> Okay. I have a question just I think in

[1:58:34] general, what is the time period on the

[1:58:37] current column in all these charts?

[1:58:39] >> It's as current as meaning year to date.

[1:58:42] >> It's like last month.

[1:58:43] >> It's is it is it the year of 2026 or is

[1:58:46] the budget year of 2026? It's this year

[1:58:49] of 26. So budget

[1:58:51] >> January to December.

[1:58:53] >> Sorry.

[1:58:53] >> Budget.

[1:58:55] >> It's the fiscal year.

[1:58:58] >> Okay.

[1:58:59] >> We've been going.

[1:59:00] >> Sorry. Are we We're compare. I assume we

[1:59:01] were comparing year to date.

[1:59:03] >> No, it's I don't I think that was the

[1:59:05] question.

[1:59:06] >> 2025. That's all of 2025, but 2026 is

[1:59:09] how much?

[1:59:10] >> Correct. So that's up to this last

[1:59:12] month. So this would be February of this

[1:59:14] year for this budget for this fiscal

[1:59:16] year. still July. So

[1:59:18] >> So we're way behind run rate to get to

[1:59:20] 100% cost recovery. That's correct.

[1:59:22] >> Yes.

[1:59:23] >> But most of your most of most of the

[1:59:26] action happens in the summer, right?

[1:59:28] Isn't that what we're talking about?

[1:59:29] >> Correct. Okay.

[1:59:30] >> But does the month Oh, sorry. Sorry.

[1:59:32] >> Go ahead.

[1:59:33] >> Um I was just going to say and so we are

[1:59:35] going to raise fees across the board for

[1:59:37] this one as well.

[1:59:38] >> These we're looking at for our

[1:59:39] consolidated fee. We've suggested some

[1:59:41] fee changes there at the recreation

[1:59:43] center. Can we can we get just your

[1:59:47] consolidated fee stages? Sure.

[1:59:48] >> I would like to see those in the budget

[1:59:51] presentations

[1:59:52] >> because we're we're the ones that have

[1:59:54] to

[1:59:54] >> absolutely

[1:59:55] >> approve that. Absolutely.

[1:59:56] >> And we're the ones that are accountable

[1:59:58] to our residents and so when these

[2:00:00] things start going up, we need to know

[2:00:01] what we're improving and why.

[2:00:03] >> Yeah.

[2:00:03] Let's make a note of that, Justin,

[2:00:05] for next year.

[2:00:07] >> Absolutely.

[2:00:08] >> Thanks.

[2:00:09] >> Yeah. Um so fiscal year on this year-to-

[2:00:12] date current ends in end of June.

[2:00:15] >> Correct.

[2:00:15] >> So it does not count July.

[2:00:17] >> Correct.

[2:00:17] >> So we have effectively

[2:00:20] Mar is March in this numbers because I I

[2:00:21] know like for example the golf course

[2:00:23] was halfway through March. So that

[2:00:25] >> is not in the numbers yet.

[2:00:26] >> So it's February

[2:00:27] >> right?

[2:00:28] >> So we have March, April, May, June. So

[2:00:30] we have four months to recover 60% of

[2:00:32] cost. Seems like that might not happen.

[2:00:35] >> Correct. Now these are based on recovery

[2:00:38] of hitting 100%.

[2:00:41] There is a way that if our revenues

[2:00:43] don't hit that much we bal we self

[2:00:44] balance right so which means we spend

[2:00:46] less we we um we balance that budget

[2:00:49] based on the amount of revenues that we

[2:00:50] bring in. So even though it might

[2:00:54] >> So what we working specifically what

[2:00:56] would you balance that with? Take us

[2:00:57] through what that looks like.

[2:01:00] Uh so for instance if um

[2:01:04] uh we've recognized that there is a

[2:01:07] trend that we are not making as much as

[2:01:09] we as we have in previous years. So we

[2:01:11] would recognize that and then spend

[2:01:13] less. So our expenses don't utilize the

[2:01:16] necessarily what was budgeted before if

[2:01:18] the revenues do not make the amount that

[2:01:20] we could spend towards those budgeted

[2:01:22] items.

[2:01:23] >> And that would assume that you have a

[2:01:25] very high variable cost instead of a

[2:01:27] high fixed cost.

[2:01:29] Correct.

[2:01:30] >> Is that accurate?

[2:01:31] >> Yeah, I think so. Yeah.

[2:01:35] » Um I'd just be interested to see the

[2:01:37] numbers in terms of how you make up that

[2:01:39] kind of balance.

[2:01:42] Yes, it it will be tough and we may need

[2:01:44] to balance some of this throughout the

[2:01:46] department. We're hopeful that that can

[2:01:47] happen. Uh we've been very responsible

[2:01:50] in some of the things that we've been

[2:01:51] doing. Um and hopefully uh we don't need

[2:01:55] to ask for anything anything

[2:01:56] additionally, but that we can pounce

[2:01:57] that. Yeah.

[2:01:59] Well, I was just going like on the day

[2:02:01] passes, what percentage of your day

[2:02:04] passes end up getting sold in the months

[2:02:06] of like May and June? Like how much do

[2:02:09] you think you're going to be able to

[2:02:10] catch up with the start of summer on

[2:02:13] that portion?

[2:02:14] >> Day passes and memberships make up a

[2:02:16] majority of what we do. So memberships

[2:02:18] is the high amount. I think that's John,

[2:02:20] do you remember the numbers on that?

[2:02:25] I think that's over 40 or 50% of our our revenues and then day passes is

[2:02:30] follows that up very heavily with the

[2:02:32] amount of revenues that we bring in. So

[2:02:34] that is very high. So we are

[2:02:35] anticipating and hoping that our day

[2:02:36] passes will help uh catch us up

[2:02:39] >> and I I've had numbers last or neighbors

[2:02:42] last year talk about you know you can

[2:02:43] get just a three-month pass for the

[2:02:46] summertime and so there may be you know

[2:02:49] those sales that we have coming up

[2:02:52] pretty soon. I'm just wondering like how

[2:02:54] close we anticipate we'll be by the the

[2:02:57] end of the fiscal year because we have

[2:02:59] these seasonal demand issues.

[2:03:04] » We are also wondering the same thing.

[2:03:06] >> Okay,

[2:03:07] >> there are there are a lot of variables

[2:03:08] and a lot of new nuances here. Uh Provo

[2:03:11] has done an amazing job and our

[2:03:13] recreation center is amazing and I think

[2:03:15] there's an appetite for many that we've

[2:03:17] seen throughout the years to duplicate

[2:03:19] and replicate this. So there are um

[2:03:24] there are additional pressures that I

[2:03:26] that we see outside of here that are

[2:03:28] drawing patrons to other areas. Right.

[2:03:30] Spanish Fork has a new recreation

[2:03:31] center. Springville has come online

[2:03:32] since then. Right. We've got Vasa's

[2:03:35] 24-hour fitnesses, things that are

[2:03:37] attracting patrons in other directions

[2:03:39] that we are Yes. managing. And this

[2:03:40] looks like it's the first year that

[2:03:42] we're looking to see maybe an

[2:03:43] interesting uh effect of those types of challenges that we have.

[2:03:49] >> Yeah. just, you know, that's that's

[2:03:50] where what's behind my questions is like

[2:03:52] the competitive landscape has clearly

[2:03:54] changed and as we're seeing it in the

[2:03:56] early indicators and I just want to make

[2:03:58] sure that we have like a plan so that

[2:04:00] this doesn't become a cost center for

[2:04:01] the city.

[2:04:02] >> Correct. Correct.

[2:04:03] >> Yeah. In fact, what I would find helpful

[2:04:06] is to actually see what your projections

[2:04:09] are.

[2:04:09] >> Yeah.

[2:04:10] >> Um consolidated fee schedule and then

[2:04:12] also to break down what you're seeing

[2:04:14] the trends and what you plan to do.

[2:04:17] >> Correct. Um again I don't think anyone

[2:04:19] questions that it's a tremendous asset

[2:04:21] to the city. It it it's absolutely a

[2:04:24] wonderful asset

[2:04:25] >> right

[2:04:26] >> and um I just still have maybe others I

[2:04:28] don't know if others feel the same but I

[2:04:30] would find it helpful to have more data

[2:04:32] especially in terms of what you're

[2:04:33] seeing and what you're planning and what

[2:04:35] the contingencies are.

[2:04:37] >> Right. So I' I'd love to see

[2:04:38] >> so Foster if you could come back again

[2:04:40] before budget time like arrange it with

[2:04:42] Justin

[2:04:43] >> but see your c your CIP stuff or your

[2:04:46] consolidate schedule with it

[2:04:48] >> and then to see more of your forecasting

[2:04:50] and compare those percentages of how

[2:04:51] much did you make up the last three

[2:04:53] months historically or that kind of a

[2:04:55] thing and stats maybe on like what

[2:04:57] you've lost to I know I talked to

[2:04:59] Spanish Fork too they said

[2:05:01] >> they they opened one too. Yeah.

[2:05:03] >> And they said, "You guys are very

[2:05:04] helpful and a huge asset to them." But

[2:05:06] they

[2:05:06] >> stop helping these guys.

[2:05:08] >> I know. But they know that some of their

[2:05:09] residents use art, which seems crazy to

[2:05:11] me to drive that far for a gym. But

[2:05:14] >> we have the nicest pool. I mean, I've

[2:05:17] >> My kids love to swim and I've driven

[2:05:19] this whole state looking for good pools

[2:05:20] for these kids. And we have the nicest

[2:05:23] rec center.

[2:05:24] >> People came from Spanishport and

[2:05:25] Springville regularly and now they

[2:05:26] don't. So,

[2:05:26] >> correct. I'm saying that's what I'm

[2:05:27] saying.

[2:05:28] >> The secret sauce is out, right? people

[2:05:30] have known that we've I mean years past

[2:05:32] we've always contributed back to the

[2:05:34] general fund right from our recreation

[2:05:36] center. So these are things that we are

[2:05:38] very much aware of. We're trying to

[2:05:39] mitigate and I can get you more details.

[2:05:41] We we actually do talk and we have very in-depth conversations on these.

[2:05:45] Great.

[2:05:45] >> I heard there was a measles outbreak in

[2:05:47] Springville. So

[2:05:48] >> I I absolutely

[2:05:49] >> just start spreading those rumors.

[2:05:54] » Oh shoot. That is hot mics.

[2:06:01] Hey, I'm still here.

[2:06:05] » Uh, some of the amazing things that

[2:06:07] we've done, uh, we did transition to

[2:06:08] explore software, uh, and we repl our

[2:06:11] outdoor wave pool. So, those are some

[2:06:12] cool things at the rec center. Special

[2:06:14] events. Special events continue to be,

[2:06:17] uh, some of our high highest, uh, most

[2:06:19] valued city services as as part of our

[2:06:22] surveys. Uh, connecting residents and

[2:06:24] promoting civic pride, bringing the

[2:06:25] community together in meaningful ways.

[2:06:27] Um the uh the fees that are involved

[2:06:30] with special events don't completely

[2:06:32] cover the cost. We have many free events

[2:06:33] that we do, but we use every efficiency

[2:06:35] possible uh to make sure that they're as

[2:06:37] affordable as possible to residents.

[2:06:42] Cubby Center for the Arts. Uh there are

[2:06:43] no asks or needs for the CVY Center. Uh

[2:06:46] these are their performance measures. Um

[2:06:49] and some of their key accomplishments

[2:06:52] are I think some of their great lineups

[2:06:55] that they have this year. Mrs.

[2:06:56] Doubtfire, Tony Ganza, Colani Pa uh were

[2:06:58] some of the few to speak about. Uh but

[2:07:01] they have had an amazing time. Any

[2:07:03] questions? Yeah,

[2:07:04] >> just overall economic health of the CVY.

[2:07:07] >> Yes,

[2:07:08] >> we making money. Is it a cost center?

[2:07:10] You know, just give me a high level

[2:07:11] overview.

[2:07:12] >> Yes. So, the CVY center does have a have

[2:07:14] a subsidy. I think it's close to

[2:07:15] $500,000 subsidy. Um and also, uh wrap

[2:07:20] tax funding goes to that through the

[2:07:21] arts. Uh the CVY Center is doing well,

[2:07:24] healthy operationally. they've never

[2:07:25] been better. Uh they probably have seen

[2:07:28] would have liked to see more uh or

[2:07:32] better attendance or ticket sales as far

[2:07:34] as the bigger shows that they

[2:07:35] >> So so that's the main. It's not like we

[2:07:37] don't have enough programming. It's that

[2:07:38] the programming isn't attended well

[2:07:40] enough.

[2:07:41] >> It there isn't there the way

[2:07:44] >> or do we have open slots throughout the

[2:07:46] year?

[2:07:47] >> No, the booking is very competitive.

[2:07:49] Right. So if you're a dance company or

[2:07:50] if you're people come here I think

[2:07:53] historically we've seen the CVY as as

[2:07:55] >> half my year is spent at the CVY.

[2:07:56] >> Yes.

[2:07:57] >> Personal programming doesn't fill.

[2:07:59] >> That is correct.

[2:07:59] >> Doesn't sell seats.

[2:08:00] >> So a lot of time and everybody sees the

[2:08:02] CVY center programs as the CVY center.

[2:08:04] So anything that we do produce or how it

[2:08:06] comes in is seen as the Cubby Center

[2:08:08] regardless of whether or not that's a

[2:08:09] rental or something that we've invited

[2:08:11] to come in. And so there's a difference

[2:08:12] there. And then some of the bigger shows

[2:08:14] that we've had, we just haven't seen the

[2:08:15] ticket sales that maybe some other

[2:08:17] places do. Like it's weird because like

[2:08:19] I watched Mrs. Doubtfire at Eckles in

[2:08:21] Salt Lake last year. Sold out like for a

[2:08:23] whole week.

[2:08:24] >> Exactly.

[2:08:24] >> I went to the one here in Cubby. It was

[2:08:27] better than the one at Eckles and it was

[2:08:28] like half empty. Like I can't figure it

[2:08:30] out.

[2:08:31] >> Then Tony Danza was amazing. Yes.

[2:08:33] >> And he wasn't full.

[2:08:34] >> Yes.

[2:08:35] >> But it's interesting.

[2:08:37] >> Was it Oh, counselor Bogdan. Just to

[2:08:40] make sure I understand the reason why

[2:08:41] it's being subsidized is because these

[2:08:43] shows are not selling out.

[2:08:45] >> No, it's always carried a sub. In fact,

[2:08:47] that's come down. Actually, our

[2:08:48] subsidies come down. So, the subsidies

[2:08:50] always

[2:08:51] >> So, what would it take just for my my

[2:08:53] brain wave to make that thing net zero?

[2:08:57] >> Uh,

[2:08:58] >> these types of shows need to sell out,

[2:09:00] right?

[2:09:00] >> Yes.

[2:09:01] >> So, it is not attendance having any

[2:09:03] shows that is making this

[2:09:06] >> right now. I think from the CVY Center's

[2:09:08] perspective, it might be seen as a

[2:09:10] rental hall. Your children perform

[2:09:12] there. You get to see the Nutcracker in

[2:09:14] the winter time and things like that.

[2:09:15] But it's is it a performance hall? Those

[2:09:17] were some of the things that we've been

[2:09:18] diving into. So in dabbling through

[2:09:20] there, we've seen we just haven't seen

[2:09:22] the ticket sales that we were hoping to

[2:09:24] see.

[2:09:24] >> So what are we doing to better that?

[2:09:27] >> We're making sure that we balance those

[2:09:29] evenly. So we'll have some rentals,

[2:09:31] we'll have some performances, and we'll

[2:09:32] make sure that we uh we anticipate we

[2:09:35] make sure that we cover those costs

[2:09:36] responsibly. meaning that if we need to

[2:09:39] diversify more so that we don't send all

[2:09:42] our eggs in one basket with a

[2:09:44] performance or show that we're still

[2:09:45] covered with the rentals that we have.

[2:09:46] >> It's also important to acknowledge that

[2:09:49] none of them make money. They're all

[2:09:50] subsidized. All all performing arts

[2:09:55] centers are subsidized in the whole

[2:09:57] country. They're all subsidized

[2:09:59] and ours gets way less subsidy than

[2:10:01] most.

[2:10:02] >> Yeah, that's legit. But we are looking

[2:10:05] at that and trying to

[2:10:08] >> up our programming and down fees. Then

[2:10:11] >> the cost of having arts is that you do

[2:10:12] support it. It's not something that

[2:10:14] covers itself.

[2:10:15] >> Right. We get as close to coming to to

[2:10:17] covering those with our fees as

[2:10:18] possible. Just like

[2:10:19] >> Right. But what I'm asking is are we

[2:10:22] looking at doing more rentals and less

[2:10:24] of these shows?

[2:10:27] >> Yes.

[2:10:27] >> That's what we did this year.

[2:10:28] >> Yes.

[2:10:29] >> That's what we did this year and we're

[2:10:30] looking at more of that next year. So,

[2:10:32] we're being very strategic on the ones

[2:10:33] that we plan to bring in, the cost that would be, as well as weighing that

[2:10:37] against the cost of bringing a rental

[2:10:38] in, and then we would evaluate those two

[2:10:40] and see whether or not we would make

[2:10:42] money. We're always or break even. We're

[2:10:44] always trying to make sure that we're

[2:10:45] fiscally responsible there.

[2:10:47] >> Okay.

[2:10:48] >> For sure. Stephen, did you want to add

[2:10:49] anything?

[2:10:50] >> Good.

[2:10:51] >> Okay.

[2:10:51] >> Council Whitlock.

[2:10:53] >> Yeah. um kind of a similar line of

[2:10:56] questioning, but I just what would you

[2:10:57] say were some of our and the key lessons

[2:11:00] we learned from this last season?

[2:11:02] >> Yeah, you want to speak to that?

[2:11:04] >> Sure. Um

[2:11:05] >> Mike,

[2:11:12] » um certainly uh having

[2:11:16] sponsor and donor support is going to be

[2:11:19] important. That's what we spent the last

[2:11:21] three four months working almost

[2:11:23] exclusively on is bringing in

[2:11:26] sponsorships and donors to support this

[2:11:28] kind of programming. As uh Foster said,

[2:11:31] we were very disappointed in the and the

[2:11:33] ticket sales um and Patrice said um Mrs.

[2:11:37] Dfire and other shows because it's such

[2:11:40] an intimate space. People enjoy it so

[2:11:43] much more. We had one of the big theater

[2:11:45] bloggers, video vloggers, I guess. um in

[2:11:49] the state came and was just raving over

[2:11:52] the fact that she got to see this big

[2:11:54] show in this really intimate little

[2:11:56] space. But for next year, for instance,

[2:11:59] we are focusing almost entirely on

[2:12:02] rentals. That's been our bread and

[2:12:04] butter for for many many years. And even

[2:12:06] our season that we're putting together

[2:12:08] next year is a partnership with key

[2:12:11] rentals. So, we're not putting any

[2:12:15] of the city's money into next year's

[2:12:17] season. We're putting uh we're not

[2:12:20] putting any city money into it. We're

[2:12:22] looking at partnerships with renters,

[2:12:25] clients that we will provide additional

[2:12:28] marketing for, and additional support

[2:12:29] for, but we won't have the spending that

[2:12:32] we did this year.

[2:12:33] >> Could you give an example of a renter?

[2:12:36] Well, for like for instance like Utah

[2:12:38] Metropolitan Ballet, it's a big

[2:12:41] professional ballet company. They come

[2:12:42] in four times a year. Their biggest show

[2:12:44] is Nutcracker. In December, they come in

[2:12:46] for 13 performances.

[2:12:48] >> Um they might bring in uh half million

[2:12:51] dollars with Nutcracker.

[2:12:53] >> And we take um an 11% cut of all ticket

[2:12:58] sales. And we also uh charge rental fees

[2:13:01] and labor fees. So those things uh

[2:13:04] really do turn out to be rather

[2:13:07] profitable for us. It's great. And we

[2:13:11] have we have next to no I believe we

[2:13:14] have

[2:13:16] five or six open dates next year. We're

[2:13:19] that booked. You know, if you're a dance

[2:13:22] company and we turn people away all the

[2:13:24] time, unfortunately they're happy to go

[2:13:26] to high schools. They're happy to go to

[2:13:29] wherever. There are really we are the

[2:13:32] only professionally run venue in Yuakan.

[2:13:35] There is no other place where a dance

[2:13:37] studio or an academy can come and get

[2:13:40] completely professional support on a

[2:13:42] completely professional stage of

[2:13:44] professional ushers and uh front of

[2:13:48] house, back of house. So we're very

[2:13:52] popular. It's it's it's hard to get a

[2:13:54] date there. We get phone calls all the

[2:13:56] time people wanting to get a date. But

[2:13:59] we're fortunate in that we are almost

[2:14:02] full.

[2:14:04] >> Um,

[2:14:05] none of us are performing arts

[2:14:07] management, you know, uh, graduates

[2:14:10] here, I don't think. But I'm just

[2:14:11] curious, what about like high-end

[2:14:13] incremental sales, high margin

[2:14:14] incremental sales, like concessions? Are

[2:14:16] we thinking about adding concessions at

[2:14:19] all?

[2:14:20] >> Sure.

[2:14:21] >> Okay. It was

[2:14:22] >> looking very well.

[2:14:24] >> Where where was that? Where were the

[2:14:26] concessions? Just on the side there

[2:14:27] where they were out on the kids.

[2:14:30] >> They probably worked at the dance stage

[2:14:31] he went to, right?

[2:14:32] >> Well, no, they wouldn't be at the dance

[2:14:33] things like But Mrs. Doire, where was

[2:14:37] it?

[2:14:39] >> On the side.

[2:14:40] >> Candy bars and stuff.

[2:14:41] >> When you're looking at the the

[2:14:43] ticket window,

[2:14:44] >> I kind of remember just some candy bars

[2:14:46] pretty much.

[2:14:47] >> Candy bars.

[2:14:48] >> Yes.

[2:14:48] >> Okay. How did that do?

[2:14:50] >> It's done very well.

[2:14:51] >> Okay. Would you look to expand that and

[2:14:53] offer more offerings or

[2:14:55] >> Yeah, we're actually um thinking about

[2:14:58] having an upstairs because the people

[2:15:01] that come up the other thing the other

[2:15:03] thing we're looking at is is requiring.

[2:15:06] >> Yes.

[2:15:07] >> For our clients

[2:15:07] >> 100%. Yeah. People get really frustrated

[2:15:11] that there is nothing a 90minut

[2:15:13] performance but for some of our elders

[2:15:16] >> or guys like me.

[2:15:19] >> Yeah. Um, so that's when you sell the

[2:15:22] majority of your concession,

[2:15:25] not before the show, certainly not after

[2:15:27] the show.

[2:15:28] >> Okay.

[2:15:28] >> So, we imagine that with that policy in

[2:15:30] place next year,

[2:15:31] >> we'll do a lot better even better than

[2:15:33] we did this year, which was quite good.

[2:15:35] >> Were you were you asking about alcohol

[2:15:37] sales or were I just wondering that is

[2:15:40] topic that we want to approach. Okay.

[2:15:41] Thank you. Uh, the Cubby, just so you

[2:15:44] know, the CVY has brought in an

[2:15:45] additional $55,000 this year in grants

[2:15:48] and sponsorships. So, they've really

[2:15:49] been hustling, bringing a lot into the

[2:15:51] table. Okay. Cemetery. Um, this is the

[2:15:54] second of the supplemental requests for

[2:15:56] the cemetery. The cemetery is asking for

[2:15:58] $14,000 uh in their waterline item

[2:16:01] budget. Uh, that's just one supplemental

[2:16:02] that they are asking for. Everything

[2:16:04] else is covered. If you want more

[2:16:05] details about that, I'm happy to to

[2:16:07] oblige. Uh, there's just a financial

[2:16:10] mistake that happened there. Questions?

[2:16:12] Okay, moving on. Cemetery

[2:16:14] accomplishments uh and performance

[2:16:16] measures. We're going to skip through

[2:16:18] some of those unless somebody has any

[2:16:19] questions. Cemetery key accomplishments

[2:16:21] this year. Uh they installed the second

[2:16:24] phase of their internment options at the

[2:16:25] cremation garden. Respectfully conducted

[2:16:27] 311 internments and then partnered with

[2:16:29] Provo Veterans Council at American Pria

[2:16:31] Festival to host the memorial day

[2:16:33] celebrations that we do that annual

[2:16:34] annually. That's a an amazing tribute.

[2:16:37] Uh in December they collaborated with

[2:16:38] the Daughters of the American Revolution

[2:16:39] and they hosted the wreath laying

[2:16:41] ceremony and another tradition that they

[2:16:43] uh proudly continue. Uh the golf course is doing well uh really

[2:16:48] well. Uh almost 100,000 rounds of golf

[2:16:51] being played there uh this year

[2:16:53] hopefully uh and with this warm weather

[2:16:55] only only looking upwards. Uh they're

[2:16:58] asking for no appropriations. No

[2:16:59] additional uh budget needs there. Uh

[2:17:01] total rounds of of golf. So hopefully

[2:17:03] they'll hit theirund uh thousand,000

[2:17:06] played rounds target. Uh they they

[2:17:09] tracked the number of range balls. Youth

[2:17:10] participation has been up. Cost recovery

[2:17:12] has been over expectations. This is

[2:17:15] another U enterprise fund. Uh and then

[2:17:18] oh another good note is their economic

[2:17:20] impact on their tournaments that they

[2:17:21] hold about $4.5 million worth of

[2:17:24] economic impact there.

[2:17:26] Uh Temponos Golf Club uh some of the key

[2:17:28] performance uh key accomplishments that

[2:17:30] they had uh they replaced uh the driving

[2:17:33] net the driving range netting that goes

[2:17:35] around the driving range converted to

[2:17:36] 100% electrical golf carts. I don't know

[2:17:38] if you know, but they finished their

[2:17:40] golf shack last year and then they

[2:17:41] converted this year to 100% fleet uh

[2:17:44] 100% uh self-sustaining operation and on

[2:17:47] pace to over 100,000 rounds and they

[2:17:49] renovated 13 sand bunkers this year and

[2:17:51] they used zero gallons of potable or

[2:17:54] culinary water. So,

[2:17:57] good job. Uh parks and grounds uh parks

[2:18:00] and grounds is not uh asking for

[2:18:02] anything in addition. Um although it

[2:18:04] should just be noted uh with parks and

[2:18:06] grounds that as we do put on new parks

[2:18:08] and as we do put on new areas uh we use

[2:18:11] every opportunity um uh and every

[2:18:14] efficiency possible to maintain what we

[2:18:16] do and what we gain. So we're constantly

[2:18:18] adding acreages to our parks as you know

[2:18:20] Delta Gateway and some of these other

[2:18:21] parks that come online. Um and it that

[2:18:23] brings challenges with it. Um but the

[2:18:25] parks department does a good job of

[2:18:26] balancing the additional workload. Um,

[2:18:28] again, utilizing all those efficiencies.

[2:18:31] Some of their performance measures that

[2:18:32] they have this year, uh, trail use

[2:18:34] continues to rise with over about 10,000

[2:18:37] additional trips to the back country and

[2:18:39] Rock Canyon and other local trails. Uh,

[2:18:41] which also highlights the strong

[2:18:42] utilization of our parks. Uh, and the

[2:18:45] other, I think, key feature to note here

[2:18:47] is their volunteer hours. Uh, volunteer

[2:18:50] hours are very critical for them.

[2:18:51] Thousands of residents contribute dozens

[2:18:53] uh to projects each year and they play a

[2:18:55] vital role in maintaining and improving

[2:18:57] the parks and trails and public spaces.

[2:18:59] And then key accomplishments within the

[2:19:02] parks uh department. They've organized

[2:19:05] over 3,500 volunteers receiving uh the

[2:19:08] monetary value would be $184,000 in

[2:19:10] value. And they approved over one mile

[2:19:13] natural surface trails with three acres

[2:19:15] of native grasses and wildflower seating

[2:19:16] and over 460,000 trips to the Palmetrop

[2:19:19] River Trail. love that

[2:19:21] >> we this they are amazing. The amount of

[2:19:25] acreage that they can cover with the

[2:19:27] same amount of employees that they have

[2:19:29] is phenomenal. Okay, our projects and

[2:19:31] we'll get into a little bit of projects

[2:19:33] as we talked about the wraps as well. Uh

[2:19:35] the wrap tax uh no significant needs or

[2:19:37] asks, no additional costs or

[2:19:39] supplemental requests. These up here are

[2:19:41] all the grants that they have been

[2:19:42] awarded this past year. Uh and with the

[2:19:44] exception of the Utah County grant, all

[2:19:46] the others uh do require matching funds.

[2:19:49] uh the recreation park arts parks tax

[2:19:52] revenue and parks de development impact

[2:19:54] fees are primarily what we use uh to

[2:19:57] replace parks and recreational admin

[2:19:58] amenities.

[2:20:00] Um, and then some of the key department

[2:20:03] features, key accomplishments, uh, or

[2:20:05] sorry, this is again from, uh, the

[2:20:07] project's team. Rap tax renewal was

[2:20:09] amazing for us. Beaks ice arena. They

[2:20:12] improved the ADA parking out front of

[2:20:13] the ice arena. Made improvements to that

[2:20:15] entrance way. They regraded landscaped

[2:20:17] around the entrance to Tibonogus Golf

[2:20:19] Club and excavated and graded the

[2:20:21] Gillespie substation. That was kind of a

[2:20:22] one privile project that we worked on.

[2:20:25] Departmentwide, some of our

[2:20:26] accomplishments. Agency accreditation.

[2:20:28] every five years we apply for agency

[2:20:30] accreditation uh in order to be part of

[2:20:33] our uh national accreditation and we

[2:20:36] applied for that and awarded last uh

[2:20:38] this this year. Um and then the other is

[2:20:41] our wrap tax renewal. So 85% voter

[2:20:44] support which we think is amazing and a

[2:20:46] good um uh sense of community support

[2:20:49] that we put there. Any questions? Any

[2:20:52] other questions?

[2:20:53] >> Okay. And we're we're gonna see you

[2:20:55] again. You're good.

[2:20:55] >> Yeah. Okay.

[2:20:57] >> Yes.

[2:20:58] So, it's just asked of me, are we still

[2:21:00] charging for parking at the Epic?

[2:21:02] >> Only during certain tournaments.

[2:21:04] Actually, I don't know. Ryland's out in

[2:21:05] the hallway. Let me He's probably

[2:21:06] listening right here on a delay. Let me

[2:21:08] have him come in. And

[2:21:09] >> my understanding is just certain

[2:21:10] tournaments that it's a contract. It's

[2:21:12] part of their contract and they that's

[2:21:15] the profit share thing.

[2:21:16] >> Yeah, he's right here. Do we have any

[2:21:17] this year that have

[2:21:19] >> We have uh two tournaments right now in

[2:21:21] the fall

[2:21:22] >> that will have parking.

[2:21:24] Yeah.

[2:21:25] >> Yeah.

[2:21:28] Yes,

[2:21:31] >> we have just two tournaments in the fall

[2:21:33] that have contracted as part of their

[2:21:35] event.

[2:21:36] >> What is our portion of that?

[2:21:40] >> Uh that's negotiated groupto group. So

[2:21:43] it depends on uh their size of their

[2:21:45] event, how many cars we expect uh and

[2:21:48] how much uh overhead we'd have to cover

[2:21:51] with the employees that help implement

[2:21:53] that process. So, it's not always the

[2:21:55] same.

[2:21:58] >> It's not always the same and that's why

[2:21:59] we don't have standard rates for it.

[2:22:02] >> Yeah, it varies based on the event. So,

[2:22:03] in our contract, we have verbiage that

[2:22:05] just allows us to negotiate that because

[2:22:07] it depends on um the group is

[2:22:10] determining whether or not that's

[2:22:12] something they want to impose on their

[2:22:13] um participants as well. So, the price

[2:22:17] might change, the number of people might

[2:22:19] change, the percentage might change.

[2:22:20] It's all dependent on the group and

[2:22:22] whether or not we allow them to do it

[2:22:24] based on how many uh local teams versus

[2:22:27] out of state teams are coming to the

[2:22:29] event.

[2:22:29] >> Are we still selling things like ice

[2:22:32] pops and stuff like that out there?

[2:22:34] >> We have not done that yet ourselves. Uh

[2:22:36] we do have local food truck vendors that

[2:22:39] come for all the events that we

[2:22:40] coordinate that come and sell any food

[2:22:43] concessions at the park.

[2:22:45] >> That's good to know. Thanks.

[2:22:49] Right. Thank you so much, Foster.

[2:22:51] >> Thank you.

[2:22:53] >> All right. Next, a presentation

[2:22:55] regarding the wrap packs. Oh, Foster,

[2:22:58] this is you, too.

[2:22:58] >> It is.

[2:23:10] » So, we watched through uh the previous C

[2:23:12] uh work meeting where the question was

[2:23:15] asked, do we have a breakdown of what

[2:23:16] where everything is going for the wrap

[2:23:18] taxes? That was the major question that

[2:23:20] wanted to be answered. And so, do you

[2:23:21] want to bring up the Excel spreadsheet?

[2:23:24] >> Yes. So, if you can bring up the

[2:23:26] spreadsheet. Let's start there.

[2:23:30] » The Excel spreadsheet.

[2:23:32] >> Do you have the ex is this? This is

[2:23:34] >> This is the Excel. I made a little for

[2:23:36] you.

[2:23:37] >> Okay. Go ahead, John.

[2:23:42] » Thank you for

[2:23:44] having us here to talk more about the

[2:23:46] wrap tax. We did have our capital

[2:23:49] improvement plan 5-year uh outlook

[2:23:52] presented a couple months ago, but as a

[2:23:55] reminder, parks and recreation has over

[2:23:57] $200 million in identified capital

[2:23:59] projects.

[2:24:01] Historically, the department relied on

[2:24:03] $500,000 annual appropriations to

[2:24:06] address the aging infrastructure and

[2:24:08] build new parks.

[2:24:10] Uh the department of city went to work a

[2:24:12] little over 10 years ago to build a

[2:24:14] better funding sources to address the

[2:24:16] funding gaps. First source of funding is

[2:24:18] impact fees. These are dedicated to

[2:24:21] increasing the amount of park space and

[2:24:24] trails and cannot be used for existing

[2:24:26] facilities.

[2:24:28] The second funding source, the wrap tax,

[2:24:31] fills the gaps in what impact fees and

[2:24:33] other funding sources can't get. Um, I'm

[2:24:37] going to give some highlights of what

[2:24:39] the RAP tax has been able to do. Uh, the

[2:24:42] last 10 years it averaged 1.5 million a

[2:24:46] year in revenues. So, initially that was

[2:24:49] a little less and towards the end of

[2:24:50] that 10 years a little more, but it was

[2:24:53] about $15 million in revenues over the

[2:24:55] 10 years and it helped to make over 100

[2:24:59] park capital improvements. That includes

[2:25:02] over 21 existing parks um that were

[2:25:05] impacted by these funds. Five new parks,

[2:25:09] 10 playgrounds uh were replaced, 10 new

[2:25:12] playgrounds added, 15 restrooms replaced

[2:25:14] or improved,

[2:25:16] six new restrooms added, nine miles of

[2:25:19] trails and pathways resurfaced or

[2:25:20] widened, six tennis courts replaced, 16

[2:25:24] new pickle ball courts added, and arts

[2:25:29] projects and grants given to the CVY

[2:25:31] Center, the library, and local arts um

[2:25:35] groups.

[2:25:40] So

[2:25:42] this last year RAP tax was renewed for

[2:25:44] another 10 years and the current funding

[2:25:47] is around 2 million a year. We expect

[2:25:50] that to increase over time because if

[2:25:53] Provo does well economically, the WAP

[2:25:56] tax does well. It's a nice balance.

[2:26:01] So, our third source of funding, you

[2:26:04] know, let's see what's on slide two

[2:26:06] here.

[2:26:06] >> Y I'd like to go to the grants. You have

[2:26:09] the grants.

[2:26:10] >> These are the only two in the

[2:26:13] spreadsheet.

[2:26:14] >> Okay.

[2:26:14] >> I have to say available.

[2:26:17] >> No, I'll just cover verbally if that's

[2:26:18] okay. Um, so using these two internal

[2:26:22] funding sources of impact fees and wrap

[2:26:24] tax, we use that to go out and get

[2:26:27] grants, source more money because

[2:26:29] remember we've got a $200 million nut

[2:26:31] that we're trying to crack every year

[2:26:33] and uh whittle at. So we've been very

[2:26:36] successful in the last uh couple years

[2:26:40] of pairing that money with grant funds

[2:26:42] that are strategically placed with the

[2:26:45] projects that are selected.

[2:26:49] So, with the approximately $13 million

[2:26:52] in the last six years since I've been

[2:26:54] here, we've been able to contribute an

[2:26:56] additional $27 million in grant funds,

[2:27:00] accomplishing over $40 million in

[2:27:02] projects.

[2:27:07] » And it and it all happens because of the

[2:27:09] team that Provo has uh in within the

[2:27:11] department, within the city government,

[2:27:13] and we all work together to make this

[2:27:15] better than what we have today.

[2:27:18] So when we select these projects

[2:27:20] strategically, we go back to our parks

[2:27:23] and recreation master plan that has

[2:27:25] identified over 200 different projects

[2:27:28] throughout the city that community

[2:27:30] surveys have contributed to prioritizing

[2:27:33] this. It's a document that comes before

[2:27:35] the council for approval as well. And

[2:27:39] each year when we put together our CIP,

[2:27:42] we're adjusting slightly based on

[2:27:44] current world conditions of what those

[2:27:46] projects will be for that upcoming

[2:27:48] fiscal year, as well as looking into the

[2:27:51] future so that we're strategically

[2:27:54] sourcing grants and external funding

[2:27:57] sources to be able to move these things

[2:27:59] forward faster.

[2:28:02] And

[2:28:06] so these are ranked annually

[2:28:08] and that's what we have here. This just

[2:28:12] represents the wrap tax funds that we

[2:28:15] are proposing to move these projects

[2:28:18] forward. Some are paired with grant

[2:28:21] funds

[2:28:22] such as

[2:28:25] the Fort Utah all wheels park, the Provo

[2:28:27] River Trail Central, Harmon Park

[2:28:30] playground and field lighting and the

[2:28:32] parks and recreation master plan with

[2:28:34] the recreational trails component.

[2:28:37] The others are the funding source for

[2:28:40] that project are coming from RAP tax.

[2:28:44] So with that

[2:28:47] I wanted to start our discussion.

[2:28:52] » All right.

[2:28:55] Any questions on the wrap tax?

[2:28:58] I know I've got a lot of feedback from

[2:29:00] citizens and a common thread that I hear

[2:29:04] is using the wrap tax for um shade sales

[2:29:10] and especially shade at existing parks,

[2:29:14] you know, that aren't going to be redone

[2:29:15] anytime soon. But that's something I've

[2:29:18] heard. Just an FYI.

[2:29:22] » Yes,

[2:29:25] >> I do have a question. So, can we go to

[2:29:27] the arts part of it? Instead, we're just

[2:29:30] looking at the part, right?

[2:29:32] >> Yeah. So, you have to we make that

[2:29:34] bigger.

[2:29:35] >> Yeah. So, these dollar amounts here are

[2:29:38] reflected in this more granular

[2:29:41] breakdown up here.

[2:29:43] >> So, they're the same numbers year to

[2:29:44] year.

[2:29:45] >> Can we zoom up on that, Kevin?

[2:29:47] >> Yeah.

[2:29:48] >> So, why do we have so much money going

[2:29:50] to the library? We talked about the

[2:29:51] library having their own funding source.

[2:29:54] Yeah,

[2:29:55] >> that's a great question. Um,

[2:29:57] >> why are we subsidizing the library here?

[2:30:00] >> The library has historically been

[2:30:03] applying for the local arts grant funds.

[2:30:06] So, let me back up just a little bit.

[2:30:08] Um,

[2:30:09] >> RAP doesn't just do our capital

[2:30:11] projects, it also supports our local

[2:30:14] arts programs. And as part of that, we

[2:30:17] have uh put funding set aside for um

[2:30:23] local arts projects. So external to

[2:30:25] Provo City projects, local arts projects

[2:30:28] of 25,000 a year has historically been

[2:30:31] the amount of funds set aside. And there

[2:30:33] was a competitive or is a competitive

[2:30:35] grant process where people apply for

[2:30:38] those funds. and the library was one of

[2:30:40] those applicants um for and my

[2:30:44] understanding is is that there's art

[2:30:46] exhibits within the library that they

[2:30:48] would apply for those funds and in

[2:30:52] recent discussions with between the

[2:30:54] directors to save the effort of the

[2:30:57] library applying for those funds. There

[2:31:00] was an agreement that there would be a

[2:31:02] set aside amount to go to those art

[2:31:04] exhibits within the library.

[2:31:07] >> Right. But the library was only getting

[2:31:08] only 2,000 a year through those grant

[2:31:10] programs. This is five times the amount.

[2:31:13] This is 10,000 instead of 2,000 set

[2:31:15] aside.

[2:31:16] >> Oh, so and it was purposely set aside by

[2:31:18] us as opposed to the art board picking

[2:31:20] it.

[2:31:21] >> Yes.

[2:31:23] >> And

[2:31:25] there there may have been an award of

[2:31:27] 2,00 there's oftent times a request for

[2:31:29] more and it's whittleled down because of

[2:31:32] the limiting available funds. So, also

[2:31:35] with the renewal of the wrap tax, we

[2:31:37] have tripled the amount of arts grants

[2:31:40] that we're setting aside each year. So,

[2:31:42] going from 25,000 a year to 75,000 a

[2:31:45] year for local arts grants to help fill

[2:31:47] the need that of requests that are

[2:31:50] coming in.

[2:31:51] >> I think it's too much. I I think that's

[2:31:53] too much for the library.

[2:31:55] Um, honestly, if you even tripled it,

[2:31:59] that's 6,000 versus 10,000. This is five

[2:32:01] times the amount that they were getting

[2:32:03] previous.

[2:32:05] I So I I don't agree with that one.

[2:32:08] What's music festivals? What's that? Why

[2:32:10] is that up there?

[2:32:12] >> There's no money in it.

[2:32:13] >> Okay.

[2:32:15] >> Um

[2:32:17] with the

[2:32:19] wrap tax funding availability.

[2:32:22] Make sure I've got my note on this.

[2:32:25] the

[2:32:27] ability to appropriate funds for uh

[2:32:31] musical performances or or cultural

[2:32:35] uh performances within the city is an

[2:32:37] allowable usage of the arts funds with

[2:32:40] within the realm of the RAP tax write up

[2:32:43] for the uh

[2:32:48] it's not a bond that everybody voted on

[2:32:50] but the uh

[2:32:50] >> it could be but it's that there's

[2:32:52] nothing in it for the next

[2:32:53] >> Well, I realize there's nothing in it

[2:32:54] but it's still a a category on there.

[2:32:56] >> I'm assuming it's like the rooftop

[2:32:57] concert series or things like that. I'm

[2:33:00] saying it could be that could be a music

[2:33:02] festival.

[2:33:02] >> So, can I ask a question? Um, we have an

[2:33:05] arts council and don't don't they get

[2:33:07] together and talk about this kind of

[2:33:09] thing, right? I mean,

[2:33:12] >> so the arts council will get together

[2:33:14] and approve the applications for those

[2:33:16] arts grants as they are. So, the set

[2:33:19] aside amount that we have and John will

[2:33:21] show there's an increasing amount for

[2:33:23] the community art grants. Those are seen and heard by that Rex,

[2:33:27] >> right? So I guess there is a process by

[2:33:29] how

[2:33:30] >> right that's what the 75,000

[2:33:32] >> has to be.

[2:33:32] >> But this 10,000's new that was done

[2:33:34] purposely just for them as opposed to

[2:33:37] council dipping it out like it's usually

[2:33:39] been done in the past.

[2:33:40] >> Thank you.

[2:33:41] >> And there had been lots of community

[2:33:44] feedback and support during the campaign

[2:33:46] for the wrap tax indicating that the

[2:33:48] community wanted to have more funds

[2:33:50] going for arts. you know, parks has been

[2:33:53] using it well, but they wanted a a

[2:33:56] greater percentage to go to art specific

[2:33:59] things. So, tripling the community art

[2:34:02] grants and adding for the library art

[2:34:04] gallery is part of that response to the

[2:34:07] public feedback. That was

[2:34:09] >> that's definitely not the feedback I've

[2:34:11] heard.

[2:34:12] >> I've heard parks is all they care about.

[2:34:14] >> Yep. Parks. That's me, too. So in in

[2:34:17] general that's the way that we have used

[2:34:18] our wrap tax funding uh is for capital

[2:34:21] improvement projects something that will

[2:34:23] last for a long time and be able to

[2:34:24] benefit the community as a whole over

[2:34:26] time. That's kind of been the philosophy

[2:34:27] that we've been using up until now that

[2:34:30] it is there are approved uses of it.

[2:34:32] Yeah.

[2:34:33] >> So what percentage of the art tax of the

[2:34:36] bra tax goes to the arts and how do we

[2:34:39] break that out? In the past, the the

[2:34:41] prior 10 years, I believe it was 12% was

[2:34:45] our target for the full distribution. So

[2:34:48] that $15 million, 12% was what we were

[2:34:51] targeting to the arts and trying to hit

[2:34:54] that every year. That's where the 330

[2:34:57] well was 330,000. It's increase this

[2:35:00] year um each year for both the arts

[2:35:04] grants and the CVY Center for the Arts.

[2:35:07] Um, that's where those funds were

[2:35:09] targeted for that. Now we're targeting

[2:35:11] 18%.

[2:35:14] >> I I do think in our code it can't be

[2:35:16] divvied out. The arts council has to

[2:35:18] vote on that 10,000. It has to be done

[2:35:20] all by the arts council. I think in our

[2:35:22] code, do you know if that's the case?

[2:35:26] >> Well, wrap tax perhaps not the percent

[2:35:30] for the arts fund which is separate.

[2:35:32] Okay.

[2:35:32] >> And comes from CIP internal CIP

[2:35:35] projects. Okay,

[2:35:37] >> that is money strictly dedicated to arts

[2:35:40] projects which is then has to go through

[2:35:42] the arts council and can only be spent

[2:35:44] on art as

[2:35:46] >> okay so that's different than this

[2:35:47] >> but it's overlaps because it overlaps

[2:35:51] with wrath tax because wrap tax is also

[2:35:54] art funding and then percent for the

[2:35:56] arts is another fund that is just arts

[2:35:58] fun

[2:35:58] >> so there is an overlap

[2:36:01] not the same funds

[2:36:03] >> where's a percent do we have a percent

[2:36:05] of the arts

[2:36:06] breakdown of where that's been going.

[2:36:08] Can we get that emailed to us?

[2:36:12] >> From my understanding that it is in the

[2:36:14] capital improvement plan. It's one of

[2:36:16] the line items on each project.

[2:36:18] >> But Becky, are you asking about the

[2:36:21] percent for the arts program that Malia

[2:36:23] just mentioned or the percent in the

[2:36:24] wrap?

[2:36:24] >> The percent of the arts that Malia just

[2:36:26] mentioned because it's going somewhere.

[2:36:28] It'd be nice to get where that is going

[2:36:31] to because I realize that

[2:36:34] you it it happens when capital

[2:36:37] improvement programs are uh construction

[2:36:40] happens. It's a percent of the project.

[2:36:43] >> I don't know that we've had this current

[2:36:45] fiscal year first year that we've paid

[2:36:48] into it. So FY26 there should be fund

[2:36:50] balance that the arts council is then

[2:36:52] looking at and figuring out how to

[2:36:54] spend. FY27 also has I believe Justin

[2:36:57] sent out a report on the finance when we

[2:37:00] went over CIP over the next five years

[2:37:03] how much funding will go into the

[2:37:05] percent for the arts fund but then the

[2:37:07] arts council will need to divide up

[2:37:09] among arts projects

[2:37:12] across the city but I think this fiscal

[2:37:14] year was the first one that money got

[2:37:16] added

[2:37:17] >> 26

[2:37:17] >> yes money got added into that fund

[2:37:20] balance

[2:37:21] >> so is it just sitting in the fund

[2:37:22] balance or has it been distributed

[2:37:24] Hey, that's a great question. I had

[2:37:26] understood that the funds needed to

[2:37:29] either be used on the project for art

[2:37:31] enhancements on the project to that

[2:37:33] amount or it went into an account.

[2:37:40] » So, it's it's sitting in an account at

[2:37:41] this point in time and it has not been

[2:37:43] used towards anything else

[2:37:45] >> or it's still in the project account.

[2:37:48] >> Yeah. So, this is the first year that a

[2:37:49] project is available for that funding.

[2:37:52] So, it hasn't been

[2:37:55] started yet. Um, and it's just the new

[2:37:58] city street lighting.

[2:37:59] >> So, it is still sitting in an arts

[2:38:01] account and it hasn't been busy yet.

[2:38:03] >> Well, it technically isn't anywhere yet

[2:38:06] because we haven't even started this

[2:38:07] week.

[2:38:08] >> Oh, so it's for 27, not 26.

[2:38:11] >> Okay, I got it. I thought it was 26, not

[2:38:13] 27.

[2:38:14] >> Okay, so this right here is is accounts

[2:38:17] for 18% of the RAV tax.

[2:38:20] >> Yes. And this is how it's

[2:38:23] going to be spent.

[2:38:26] Okay. And we we've traditionally used it

[2:38:28] for maintenance for the cubby as well.

[2:38:30] >> Yes. For capital improvements around the

[2:38:33] that either increase efficiencies of the

[2:38:35] facility or our safety uh things that

[2:38:38] need to be addressed.

[2:38:39] >> So is a portion of this also going to

[2:38:41] that percent for the arts because it is

[2:38:43] a capital improvement?

[2:38:44] >> Yes, it is considered part of that

[2:38:45] percent for the arts.

[2:38:48] >> Okay. the 18% from raft tax not from the

[2:38:52] project

[2:38:54] specific account

[2:38:56] >> but but this is in CIP so is this a

[2:39:00] percent of the arts

[2:39:02] is a percentage of this

[2:39:04] >> we have we have overlapping terms here

[2:39:07] >> the yeah the percent for the arts is a line item in the capital

[2:39:11] improvement plan that is specific to

[2:39:13] every project in the capital improvement

[2:39:15] plan this is wrap tax allocation

[2:39:19] for the arts out of rap tax only.

[2:39:23] >> Right.

[2:39:23] >> So this this is that 18% that we are

[2:39:26] targeting of the overall revenues of rap

[2:39:29] tax to be used for art.

[2:39:31] >> But it's not going to overlap in and a

[2:39:33] percentage of this go back. Right.

[2:39:34] >> Correct.

[2:39:35] >> It's just going to be used for this only

[2:39:37] and no percent for the arts.

[2:39:40] >> Thank you.

[2:39:42] >> Council Hoben.

[2:39:43] >> So what's the dollar amount difference

[2:39:45] between the 12% and the 18% like

[2:39:47] year-over-year? How much more is going

[2:39:49] to arts?

[2:39:50] >> Well, you have an increase of revenue.

[2:39:52] >> Sure.

[2:39:53] >> Is one thing. So, we averaged 1.5

[2:39:56] million a year the past 10 years. So,

[2:39:58] that's where the $330,000

[2:40:02] a year for arts comes from. This next

[2:40:05] forecast is we're going to be somewhere

[2:40:06] about 2.5 million is our estimate on

[2:40:10] average for the next 10 years. Um, you

[2:40:13] know, part of that's just inflation and

[2:40:15] part of that's just Provo doing well

[2:40:16] economically.

[2:40:18] So that's that's where this number

[2:40:21] incrementally just keeps growing with

[2:40:22] it.

[2:40:24] >> I would say the average there about 375.

[2:40:26] >> So maybe we went up 100 to 150K for

[2:40:29] arts.

[2:40:30] >> Yes.

[2:40:31] >> And um can is are there uh new line

[2:40:35] items on here? I mean the maybe the

[2:40:38] library art gallery might be new might

[2:40:39] be part of that 150 additional

[2:40:42] >> and the increase the library art grants

[2:40:44] by 25,000 to 75,000.

[2:40:47] Okay. I'm just curious maybe like a side

[2:40:50] by side like what has been added?

[2:40:54] Could we see that

[2:40:56] like highlight what's new? What are we

[2:40:58] spending that extra 150k on?

[2:41:02] >> Is that easy to provide?

[2:41:04] >> I this this is the projected use. So

[2:41:07] you're asking for prior years. Well, so

[2:41:10] if if we were to see something like this

[2:41:12] from a prior year, what's the variance

[2:41:14] between that year and what you're

[2:41:16] projecting now? And what is different?

[2:41:19] You know, what have you added?

[2:41:20] >> Like how much more is being used at the

[2:41:22] cubby or how much more is in a library

[2:41:24] in the community arts grants?

[2:41:26] >> Yeah, the majority of the increase is

[2:41:28] those um

[2:41:31] can be going on percentage for the arts,

[2:41:33] but it's the um

[2:41:35] >> I got you messed up.

[2:41:35] >> You've got an community arts grants.

[2:41:38] That's that's 50,000 increase

[2:41:40] >> and then the 10,000

[2:41:41] >> 10,000 increase for library that's

[2:41:42] 60,000 and then there's um the CVY

[2:41:46] center program

[2:41:46] >> and the rest would be

[2:41:48] >> probably okay

[2:41:49] >> so it's about half

[2:41:50] >> all right thank you

[2:41:53] >> um councelor Christensen

[2:41:54] >> I'm sorry to be sorry to be slow

[2:41:58] I can see exactly what we're talking

[2:41:59] about when you talk about the CVY center

[2:42:02] because it's listed right there

[2:42:05] I I don't know what community arts

[2:42:07] grants and the library specifically what that's being spent on. Can you tell

[2:42:13] me that? Is it just not listed or you

[2:42:15] don't?

[2:42:15] >> No. No. I'm going to start with the

[2:42:16] library because my understanding is they

[2:42:18] have art displays exhibits in a room or

[2:42:22] two in the library that can be walked by

[2:42:24] the public

[2:42:25] >> like the National Geographic thing

[2:42:26] >> like the attic.

[2:42:27] >> Yeah, they have the attic. Okay.

[2:42:29] >> And so this this funds the u artist or

[2:42:34] the the use of the room for that period

[2:42:36] of time. Got it. Okay. Now,

[2:42:38] >> and a quick note on that is they like to

[2:42:40] be able to bring in shows from outside

[2:42:42] artists and they've had to cut back on

[2:42:44] that with the budget cut and so they've

[2:42:46] only done local artists for the most

[2:42:49] recent one, but in order to bring in art

[2:42:52] shows for the community, that's part of

[2:42:54] what this

[2:42:54] >> Okay. So, the library art gallery is

[2:42:57] Yes.

[2:42:57] >> bring in uh shows or exhibits.

[2:43:00] >> Yes.

[2:43:00] >> Okay. Um how about the community arts

[2:43:03] grants?

[2:43:04] >> Yes. It varies. The submissions come

[2:43:08] from the community and they have

[2:43:10] historically been up to $5,000 awards

[2:43:13] for grants. These could go towards

[2:43:15] performing arts um like dance or um

[2:43:21] people who can't afford tickets to the

[2:43:22] Nutcracker. They would cover the cost of

[2:43:25] entry for those people in it. They

[2:43:27] specifically asked for that in their

[2:43:29] grant application.

[2:43:30] >> Downtown Murals.

[2:43:31] I've got another

[2:43:34] >> Bear in the Park. This is what the arts

[2:43:36] council is deciding on.

[2:43:38] >> Yes. From the grand.

[2:43:40] It's like CDBG.

[2:43:41] >> Yeah. Yeah.

[2:43:43] >> We have the last say in SBG

[2:43:46] >> and we don't ours.

[2:43:48] >> Yeah. Got that. Thank you. That's

[2:43:49] helpful.

[2:43:52] >> I also want to point out that there's

[2:43:54] also an art gallery and exhibits that

[2:43:57] happen in the CVY center. So very

[2:44:00] similar uh between the library and the

[2:44:04] cubby center for those displays. Please

[2:44:06] say one or the other.

[2:44:07] >> Thank you.

[2:44:10] >> All right. Any more questions?

[2:44:13] Okay. Thanks you guys.

[2:44:16] >> Thank you.

[2:44:16] >> All right. Are you guys okay if we forgo

[2:44:18] the break?

[2:44:21] >> But you're okay. Five minutes then. Five

[2:44:24] minutes. Otherwise, keep going. We'll

[2:44:26] >> see you.

[2:44:30] Recording stopped.

[2:44:32] >> All right, we're going to start.

[2:44:36] >> Recording in progress.

[2:44:39] >> All right, next we have a presentation

[2:44:40] regarding debts and revenues. And this

[2:44:42] be presented by Dan Flet, our

[2:44:44] administrative services interimm

[2:44:45] director.

[2:44:49] » Welcome, Dan.

[2:44:50] >> Thank you, councel. Um, I'm going to

[2:44:54] talk about debt first and then Kelsey's

[2:44:56] going to talk a little bit about

[2:44:57] revenue. Can you bring up the

[2:45:03] » This is one of my favorite spreadsheets

[2:45:05] and every year I apologize to the

[2:45:08] council for how small it is. I'll um

[2:45:12] I'll I'll let me just start and I'm

[2:45:14] going to talk about each column first

[2:45:16] and then um we can look at some of the

[2:45:18] details. But in the lefth hand column is

[2:45:20] a description of the debt and and uh it

[2:45:24] we've tried to include in the

[2:45:26] description um what the debt was

[2:45:28] utilized for. So for instance these

[2:45:31] first two items here are general obl

[2:45:33] obligation bonds. The city has two sets

[2:45:36] of general obligation bonds. One was for

[2:45:40] um the rec center one set of bonds and

[2:45:42] the other is for city hall and fire two

[2:45:45] for instance. Um the the first set of

[2:45:49] bonds listed here, rec center

[2:45:50] refinancing bond for instance, it says

[2:45:54] uh series 2017.

[2:45:56] Uh most of you know that the rec center

[2:45:59] came online much before that. That's

[2:46:02] this was a refinancing that was done. It

[2:46:05] saved the taxpayers

[2:46:08] approximately $2.8 million when we

[2:46:10] refinanced them in 2017.

[2:46:13] What I'll mention along those lines is

[2:46:16] as we move across, we'll see interest

[2:46:18] rates and I'll talk about those, but we

[2:46:20] continually monitor

[2:46:23] uh what the interest rates are on all of

[2:46:25] our debt and how that compares to the

[2:46:27] market and whether or not it would make

[2:46:29] sense to refinance the debt at any point

[2:46:32] in time. Unfortunately, as you can

[2:46:34] imagine, right now, um the interest rate

[2:46:37] environment is not necessarily in our

[2:46:39] favor for refinancing. That's the bad

[2:46:41] news. The good news is if you look at

[2:46:43] our interest rates um they're all very competitive uh in today's market.

[2:46:49] Um so moving down the list um the next

[2:46:52] one I'll mention uh is telecom 2004

[2:46:56] sales tax bonds. These were the bonds

[2:46:58] that were issued uh 20 years ago to

[2:47:01] finance uh the fiber network that

[2:47:04] ultimately was acquired by and operated

[2:47:07] by Google Fiber. The good news is um

[2:47:11] those bonds,

[2:47:13] the other thing I should mention is all

[2:47:15] of these numbers are as of June 30th,

[2:47:17] 2025, the date of our last audited

[2:47:20] financial statements. They tie to those

[2:47:22] audited financial statements. Uh when

[2:47:25] you go across, you can see the final

[2:47:27] maturity date, uh the telecom bonds,

[2:47:30] final maturity date, February 15th,

[2:47:33] 2026. Those are paid off. Um now there

[2:47:37] are no more payments on those. So that's

[2:47:39] kind of exciting to have um debt drop

[2:47:41] off. Um moving down, we have cemetery

[2:47:45] bonds that were were issued to expand

[2:47:48] the cemetery uh several years ago. Uh

[2:47:52] and then um we move into notes payable.

[2:47:56] We have a section 108 note payable that

[2:47:59] was utilized um for airport

[2:48:02] improvements. We have leases. These

[2:48:04] leases are the first two fire apparatus

[2:48:08] leases are taxexempt leases.

[2:48:11] Um, and they're utilized to

[2:48:15] they're leases under the Internal

[2:48:17] Revenue Code. Think of them as the

[2:48:20] reason they're leases is so that they

[2:48:22] can be taxexempt. Um, meaning the

[2:48:24] investor is willing to accept a lower

[2:48:26] interest rate, meaning Provo City pays a

[2:48:29] lower interest rate and it's more

[2:48:31] cost-effective. Um, but they're not

[2:48:33] leases like a car lease where you turn

[2:48:36] the car in at the end of the lease.

[2:48:38] They're really financing leases where we

[2:48:41] own the fire trucks at the end of of the

[2:48:44] lease. And so we have two of those. And

[2:48:47] then we have just a regular lease. We

[2:48:49] pay monthtomonth. We commit uh several

[2:48:52] years at a time for the justice court

[2:48:55] building premises. Moving down into the

[2:48:58] business type activities,

[2:49:00] um you can see that most of these are

[2:49:02] utilities or they're the airport or

[2:49:05] they're the golf course. And these are

[2:49:08] what are known as revenue bonds. They're

[2:49:10] repaid with revenues from uh the various

[2:49:13] systems. Um and if you look across, we

[2:49:18] uh again the principal balance as of

[2:49:20] June 30th, 2025

[2:49:22] is listed um for each one of them. The

[2:49:25] annual payment is principal and interest

[2:49:29] um that we pay on an annual basis for

[2:49:32] each of these debt um items that are

[2:49:35] issued. And then um you can see the

[2:49:38] original issue amount um and that gives

[2:49:41] you an idea of what we originally

[2:49:43] borrowed, what we've paid down to at

[2:49:45] this point in time. The next column is

[2:49:48] interest rate and then the next column

[2:49:51] is repayment terms. uh the the long so

[2:49:55] we have uh 20 years uh on each one of

[2:49:59] those is the longest on this schedule.

[2:50:02] The final maturity date meaning the date

[2:50:05] that we make the last payment. And then

[2:50:07] the next column is uh where is the

[2:50:11] payment funding source derived from as

[2:50:13] you can see for the utility revenue

[2:50:15] bonds um they come from the various

[2:50:18] systems. Um the U dot airport bonds uh

[2:50:21] will receive MAG revenues to repay those

[2:50:25] and then um golf course revenues for

[2:50:27] both the golf carts uh and the golf

[2:50:30] course maintenance equipment.

[2:50:31] >> Wait, Dan.

[2:50:32] >> Yes.

[2:50:32] >> Did you say that there were revenue

[2:50:34] bonds for the golf course?

[2:50:36] >> The the golf course ones

[2:50:39] >> leases

[2:50:40] >> are um they're actually leases,

[2:50:42] >> right?

[2:50:43] >> And there's two types of leases here.

[2:50:45] The golf course maintenance equipment

[2:50:47] lease. We own the equipment at the end

[2:50:49] of the lease. It's a taxexempt lease as

[2:50:52] you can see in the next column. The next

[2:50:55] one is just a regular lease. And I'll

[2:50:57] compare it to like if you lease a car.

[2:50:59] We've leased the golf carts uh for

[2:51:04] essentially 5 years and then at the end

[2:51:06] of at the end of the lease we turn them

[2:51:10] back in and start a new lease on new

[2:51:13] golf carts is how we've done that. And

[2:51:14] that way um it's been more cost

[2:51:17] effective to do it that way and it

[2:51:19] ensures that we keep um reasonably new

[2:51:23] equipment available for golf carts. It

[2:51:26] also has enabled us to move from gas to

[2:51:30] electric uh to where the fleet's all

[2:51:32] electric at this point in time.

[2:51:34] >> So that is very helpful. But there are

[2:51:36] no revenue bonds for the golf.

[2:51:38] >> There's no revenue bonds for the golf

[2:51:40] course. you know, it's strictly the

[2:51:42] maintenance equipment and the golf

[2:51:44] carts. Uh, it's all that's there. And

[2:51:46] then the last uh I mean the second to

[2:51:48] last column is the tax status. And I'll

[2:51:51] just highlight a couple of items there.

[2:51:53] So, as I mentioned, um, in most cases,

[2:51:58] we're eligible as a city to issue debt

[2:52:01] on a tax exempt basis, meaning um that

[2:52:04] the investor does not pay uh income tax

[2:52:08] on the interest income they receive um

[2:52:12] from buying these bonds. And and because

[2:52:15] they don't pay tax, they're willing to

[2:52:16] accept a lower rate and therefore the

[2:52:18] city pays a lower rate in some cases. So

[2:52:23] you'll see three wastewater well these

[2:52:25] two wastewater revenue bonds and the

[2:52:28] water revenue bonds

[2:52:30] um are taxable

[2:52:33] and um the reason that those are taxable

[2:52:37] is they the investor is the department

[2:52:40] of water quality and so when we issued

[2:52:43] those bonds because the department of

[2:52:45] water quality doesn't pay income tax

[2:52:47] they're indifferent as to whether or not

[2:52:50] it's taxexempt or Uh and from our

[2:52:53] perspective because they were

[2:52:54] indifferent and it didn't it didn't have

[2:52:57] any impact on the rate uh because they

[2:52:59] don't plan on selling those bonds. They

[2:53:01] can't sell those bonds. Um we asked that

[2:53:05] they be taxable

[2:53:07] uh because

[2:53:09] um you have a much lower likelihood of

[2:53:13] an IRS audit on a taxable bond versus a

[2:53:16] tax exempt bond. I think since I've been

[2:53:20] at Provo, we've had three different

[2:53:21] audits of our taxexempt issuances. Um,

[2:53:25] and so it's fairly common that the IRS

[2:53:28] looks at those and so we structure them

[2:53:29] that way because there was um not a

[2:53:32] benefit to the investor and only a

[2:53:35] detriment to us and it didn't change the

[2:53:37] overall interest rate. As you can see,

[2:53:39] two of them are one half of 1% and the

[2:53:42] other's at 1%. So um it was the

[2:53:44] department of water quality

[2:53:46] incentivizing the city to make

[2:53:48] improvements to the wastewater system

[2:53:50] and also uh the water system.

[2:53:53] Um the one column I think I miss missed

[2:53:56] is the call date call feature. Um,

[2:53:59] generally when you issue publicly traded

[2:54:01] debt, um, the investor wants to know

[2:54:06] that they'll get, if it's a 20-year

[2:54:08] issuance, that they'll get at least 10

[2:54:09] years, um, before you refinance the bond

[2:54:14] away from them. And so we, um, when we

[2:54:18] issue debt, um, generally there's a call feature that's 10 years

[2:54:23] down the road. So, we can't refinance

[2:54:25] the debt during the first 10 years, but

[2:54:28] during the second 10 years, we can. And

[2:54:30] that's where we analyze all the time.

[2:54:32] Uh, if there um is an opportunity to

[2:54:35] refinance at a lower rate when there's

[2:54:38] no prepayment penalty, we could actually

[2:54:41] do it at any point in time. Um, I I

[2:54:45] doubt we're going to be refinancing

[2:54:47] these two at one half of 1%, you know.

[2:54:50] um that would be a very different

[2:54:52] environment than we're in today.

[2:54:54] Finally, the last column is the the

[2:54:56] ratings on each of the bonds that are

[2:54:59] publicly issued, publicly traded, um

[2:55:02] sold in the public markets. And there's

[2:55:04] three rating agencies. Uh S&P, standard

[2:55:07] and pores, Moody's, and Fitch. And you

[2:55:09] can see for each of our issuances

[2:55:12] um what the ratings are. Um, AAA is the

[2:55:15] top rating. Um, and and um the we've

[2:55:20] received AAA ratings on most of our

[2:55:23] sales tax related bonds. These airport

[2:55:26] sales tax bonds, they're backed by

[2:55:29] collateralized by sales tax. Uh, and so

[2:55:32] overall, Provo's ratings um are

[2:55:35] excellent. They're considered investment

[2:55:37] grade or above. Um and it just reflects

[2:55:41] u the overall management of the city um

[2:55:44] from the administration and councils

[2:55:46] over time. So that's uh a very high

[2:55:50] level overview of of where the debt is.

[2:55:54] I'd be happy to answer any questions.

[2:55:57] >> Thanks Dan. And I think an important

[2:55:59] thing to your mind, I think we talked

[2:56:00] about this last year, but this the state

[2:56:05] controls how much debt we're even

[2:56:06] allowed to have based on our assessed

[2:56:07] value. And we are like roughly 10% of

[2:56:10] what the state would allow us in debt.

[2:56:12] And that's huge.

[2:56:13] >> And I should have brought that. But we

[2:56:14] are very very low very low

[2:56:17] >> in terms of what we could legally issue.

[2:56:19] We could issue hundreds of millions of

[2:56:21] dollars more than we've issued uh in

[2:56:24] debt. Um but um that's not how Provo has

[2:56:28] been managed. So

[2:56:29] >> yeah, which is how we like it. Um any

[2:56:31] questions for Dan?

[2:56:34] Delta uh is going to I think

[2:56:37] >> oh present

[2:56:38] >> councelor Bogdan has a question for you.

[2:56:40] No I just I just wanted to make a point

[2:56:41] to we're also

[2:56:44] have a limit on how much we can tax the

[2:56:47] public too and we're very low on that

[2:56:48] too, aren't we?

[2:56:49] >> We are.

[2:56:50] >> very very low.

[2:56:51] >> So that means that we're running pretty

[2:56:52] efficiently, right?

[2:56:53] >> We are.

[2:56:54] >> Yes.

[2:56:55] >> We're not going to go bankrupt in 10

[2:56:56] years or anything. Um, I can tell you so

[2:57:00] we meet generally um at least once a

[2:57:04] year if not twice a year with the rating

[2:57:06] agencies um on all of these ratings and

[2:57:09] they reanalyze whether or not um the

[2:57:13] rating should be maintained

[2:57:15] uh um decreased or improved or whether

[2:57:20] um they should issue any kind of

[2:57:21] warnings or anything like that. And the

[2:57:24] comments are consistently

[2:57:26] positive about

[2:57:29] um they usually run along the lines of

[2:57:34] Utah overall. Um the municipalities in

[2:57:38] Utah are wellmanaged and conservatively

[2:57:43] operated

[2:57:45] and Provo kind of leads uh in that in within Utah. Provo is considered

[2:57:53] um a very very good and safe

[2:57:58] uh investment risk for investors. So and our ratings reflect that. I mean the

[2:58:05] in general the only reason that we don't

[2:58:07] have AAA ratings across the board is

[2:58:11] just the overall size of our

[2:58:13] municipality.

[2:58:15] But as as our population grows and as um

[2:58:19] our our economic environment diversifies

[2:58:24] um I think the day will come that we'll

[2:58:26] start to see more AAA ratings for non-

[2:58:29] sales tax backed issuances.

[2:58:32] Um but that'll just take some time.

[2:58:35] Right now, Salt Lake City is really um

[2:58:39] is the only city I'm aware of in Utah

[2:58:42] that for non- sales tax issuances has

[2:58:45] received AAA ratings. So,

[2:58:47] >> Oh, wow.

[2:58:48] >> Um the state of Utah, of course, is huge

[2:58:51] and they've um historically been AAA

[2:58:54] rating.

[2:58:54] >> Do they have like B's and Fs?

[2:58:57] Um, it goes down to

[2:59:01] um I should have the full ratings, but

[2:59:03] it's like C's and D's, you know, um that

[2:59:06] go down, but you're in junk bonds, you

[2:59:09] know, you get below like B minus and you

[2:59:13] start to move into

[2:59:15] uh questionable

[2:59:17] um investment grades. Uh, and then you

[2:59:20] get down to like D and you're, you know,

[2:59:23] you're you're gambling from an investor

[2:59:26] perspective, it's it's considered junk

[2:59:28] bonds.

[2:59:29] >> Yeah. But if you repackage those and

[2:59:30] sell them as a group, you can sell them

[2:59:32] as Triple A.

[2:59:32] >> Yeah.

[2:59:34] >> Remember when that was done?

[2:59:35] >> Yeah,

[2:59:35] >> that ended up well.

[2:59:36] >> That didn't work out well in in 0809.

[2:59:39] >> I got a movie to show you.

[2:59:43] >> Any other questions?

[2:59:45] >> Thank you.

[2:59:49] diversification.

[2:59:50] >> Yeah,

[2:59:53] you

[2:59:53] >> mind pulling up the other PDF?

[2:59:55] >> I'm definitely not getting after all

[2:59:57] these comments today.

[3:00:00] >> Oh, good.

[3:00:02] >> I had some slides.

[3:00:05] >> I missed it at one point.

[3:00:10] » Okay, I can tell you give you a revenue

[3:00:13] update without some slides. Um,

[3:00:16] this is just a preview of how the FY27

[3:00:19] budgeted revenues are looking for the

[3:00:21] upcoming budget. So, this is giving you

[3:00:23] a little sneak peek. And I will say it's

[3:00:25] preliminary. We are not sure exactly

[3:00:28] where everything's going to land, but

[3:00:29] we're getting a lot closer. Um,

[3:00:33] basically the takeaway is that, sorry, I

[3:00:37] wish I had some numbers for you up here,

[3:00:38] but the takeaway is that the FY27

[3:00:41] budgeted revenues are looking strong.

[3:00:43] Um, it's not like the past two years.

[3:00:45] >> We actually have a thought. Yeah. Do you

[3:00:47] want to reschedule this and bring back

[3:00:48] what the numbers next? We didn't have

[3:00:49] this in our packet either.

[3:00:51] >> Yeah. I'm sorry. I I know I had spent it

[3:00:54] might have been. We're running behind

[3:00:56] anyway.

[3:00:56] >> Okay, great.

[3:00:58] >> So, Justin, could we have rescheduled

[3:00:59] Kelsey?

[3:01:00] >> I'd almost at this point recommend just

[3:01:02] doing after the tenative budget just

[3:01:04] because we'll have better numbers and

[3:01:06] >> we'll be that much closer to it if if

[3:01:09] that's okay.

[3:01:10] >> What is that? May

[3:01:16] weeks or

[3:01:18] >> Yeah, just in two weeks.

[3:01:19] >> Okay, we can. Thank you. Thanks, Kelsey.

[3:01:21] >> Thanks.

[3:01:23] >> All right. Um, next a presentation

[3:01:25] regarding property tax presented by

[3:01:27] Justin Harrison.

[3:01:32] » All right. Thanks, council. Sorry to go

[3:01:35] from

[3:01:37] um

[3:01:39] what could have been a cheery

[3:01:41] presentation from Kelsey to talking

[3:01:42] about taxes, but

[3:01:45] it's what you got.

[3:01:49] » Okay, you're good.

[3:01:52] >> Um

[3:01:53] there's quite a few slides here. I'm not

[3:01:55] going to go through all of them in

[3:01:57] depth. you all read read through them,

[3:01:58] but if there are

[3:01:59] >> like just general overview, this is

[3:02:01] mostly

[3:02:02] >> for since he's new and just anyone if

[3:02:05] they have any questions, pipe up. But

[3:02:07] >> if there are any questions, feel free

[3:02:09] jump in whenever. Um if you really have

[3:02:13] a sleepless night, want to read about

[3:02:14] the history of property tax, I encourage

[3:02:16] you to look at this historical thought

[3:02:18] was implemented 130 years ago when Utah

[3:02:20] became a state. Um I'm waiting for the

[3:02:23] Netflix documentary, but hasn't happened

[3:02:26] yet. Um, property tax reg is regulated

[3:02:29] by the state um, as far as what

[3:02:32] municipalities can do under Utah State

[3:02:35] Code Chapter 59. Um, but really what you

[3:02:39] need to know for our purposes is how are

[3:02:43] certified tax rates created? Uh, the

[3:02:45] simple equation is prior year revenue

[3:02:48] divided by taxable property values gives

[3:02:50] you your property tax rate. Um and we'll

[3:02:53] go through a little little scenario on

[3:02:55] this. Um but in order to get that

[3:02:59] equation, um what many citizens or

[3:03:03] property owners or property taxpayers

[3:03:05] don't know is is how that equation is

[3:03:08] created and it starts with the

[3:03:10] valuation. So valuation is assessed

[3:03:13] locally by county assessors. Um

[3:03:20] and that valuation is determined at

[3:03:22] least in Utah County in this way. So by

[3:03:24] sales in the market, income that could

[3:03:26] be generated by the property or cost of

[3:03:29] replacement.

[3:03:35] Uh other determining factors that they

[3:03:37] take in when determining the valuation

[3:03:40] of residential or commercial property

[3:03:42] are things such as land use, uh the

[3:03:44] location of the property, the size, and

[3:03:47] also the property condition.

[3:03:55] This is from Utah County, so I feel

[3:03:57] comfortable saying this. Um but there

[3:04:00] are bound to be heirs

[3:04:03] Um

[3:04:03] >> in fairness in fairness to

[3:04:06] the assessor less less than 1% of

[3:04:10] properties are challenged. Assessments are

[3:04:14] challenged, right? So it's

[3:04:16] >> and I don't just mean the errors like last year

[3:04:21] » I'm just saying from an assessor

[3:04:23] standpoint that's this is a high

[3:04:25] percentage and I I've tal I have I I do

[3:04:28] think that's shockingly high that if you

[3:04:29] do appeal you're almost certainly you

[3:04:31] know especially if you have an appraisal

[3:04:33] >> last year was was a little different but

[3:04:35] to kind of put it in perspective so

[3:04:38] there's over 200,000 parcels in Utah

[3:04:41] County um

[3:04:42] >> 800 or something

[3:04:44] >> they have said part uh appeal success

[3:04:46] rate is about 70% that's of those who

[3:04:49] appeal.

[3:04:50] >> Now kind of their rule of thumb that

[3:04:53] Utah County has given is to for you as a

[3:04:56] property owner to ask yourself could I

[3:04:57] sell this property for what it has been

[3:04:59] assessed at. Now

[3:05:04] I would argue well I would encourage you

[3:05:06] all to look at your property tax

[3:05:07] assessments.

[3:05:09] I personally think they're all very low,

[3:05:10] but

[3:05:12] >> I think they're generous and I will take

[3:05:13] that. Thank you, Utah County. Um, but

[3:05:16] that's just kind of general rule of

[3:05:17] thumb as you're talking to constituents.

[3:05:19] If they're wondering, you know, about

[3:05:21] their property taxes, about their

[3:05:22] valuation, that's a simple question to

[3:05:24] ask yourself, could I sell this property

[3:05:26] for the assessed value?

[3:05:29] Um,

[3:05:32] now kind of going back to the equation,

[3:05:34] back to the the property tax rate

[3:05:36] making. Um so this chart sorry this is a

[3:05:40] little difficult to see. You see our

[3:05:42] general operations rate in the city and

[3:05:44] how it has gone down. You see the the

[3:05:46] bottom chart and average average average

[3:05:48] residential property value and this is

[3:05:51] specific to Provo City has gone up and

[3:05:53] you see how those trend lines are

[3:05:55] inverse. So as valuations go up, rates

[3:05:58] go down. And just the opposite, as

[3:06:00] valuations go down, rates would go up

[3:06:02] because um the whole

[3:06:06] policy argument

[3:06:09] um that has been created in Utah for

[3:06:11] property taxes is that revenue stays the

[3:06:14] same. It stays flat minus new growth.

[3:06:17] We'll pretend we didn't talk about that.

[3:06:19] Um but revenue stays the same and it

[3:06:21] forces um taxing entities,

[3:06:25] municipalities, school districts, water

[3:06:27] districts to go before the taxpayers and

[3:06:30] give a reason for the rate increase.

[3:06:34] Um this is my favorite chart in the

[3:06:37] world. It's going to be framed on the

[3:06:38] wall one day.

[3:06:40] Um,

[3:06:43] this is the breakdown of a dollar in

[3:06:45] property taxes on a Provo citizen

[3:06:48] citizens property tax bill. 60% of every

[3:06:51] dollar that they pay in property taxes

[3:06:53] goes to the school district. So, love

[3:06:56] the school district, but take their

[3:06:58] anger elsewhere, I promise. Um, that's

[3:07:01] where a majority of those funds go to.

[3:07:03] Uh, just under 15% of every dollar or 15

[3:07:06] cents of every dollar goes to the city.

[3:07:09] uh 13% to the state, about nine to the

[3:07:12] county, and then 3 and a.5% to central

[3:07:16] Utah water.

[3:07:20] Uh broken down a little further, and

[3:07:22] we'll get into this. So, Provo City's

[3:07:24] rate is broken up into three specific

[3:07:28] categories. So, we've got a specific

[3:07:31] line item for library, a specific line

[3:07:35] item for general operations or what

[3:07:37] funds the general fund, and then bonds.

[3:07:40] It's listed on the state tax commission

[3:07:43] website as interest in syncing. Um, and

[3:07:46] that's not a rate that the city can

[3:07:47] adjust. That's adjusted based off of

[3:07:50] that principal amount that Dan talked

[3:07:52] about on our general obligation bonds.

[3:07:54] So, that is automatically updated each

[3:07:56] year. Um, and any way to have that

[3:08:00] increased would be to go before the the

[3:08:02] voters for general obligation bonds. Um,

[3:08:06] and so it's

[3:08:07] >> they choose that piece.

[3:08:09] >> What's that?

[3:08:09] >> They choose that piece.

[3:08:10] >> Yes, they choose that piece. They also

[3:08:12] choose all use.

[3:08:14] >> They have choice on everything.

[3:08:17] >> Yeah. Um

[3:08:19] this is not as scary as it looks, but

[3:08:21] this is the um the state um Utah tax

[3:08:25] commission certified tax rate system. Um

[3:08:27] it's very small, so we'll skip through

[3:08:29] this, but you'll see um so this was

[3:08:34] maybe I'll I'll touch on this before. So

[3:08:35] you've got fiscal year and tax year. Um

[3:08:38] so we're going into fiscal year 2027.

[3:08:41] That'll be tax year 2026. So you'll see

[3:08:44] a couple of numbers on here that say

[3:08:45] FY26 referring to the current fiscal

[3:08:48] year and tax year 2025.

[3:08:51] So

[3:08:53] this shows how rates went down, but

[3:08:57] property taxes actually revenue stayed

[3:08:59] about the same minus growth. And this is

[3:09:02] where if the city chooses to um to

[3:09:06] increase property taxes or any taxing

[3:09:08] entity, they would input these rates in

[3:09:09] this system. Um,

[3:09:13] jumping into

[3:09:17] our specific breakdown in Provo City on

[3:09:20] how our our rates are broken up. Not all

[3:09:22] cities have a library and have a

[3:09:24] specific library tax line item. There

[3:09:27] are a few um, but this is this is the

[3:09:31] FY26 revenue projections from the

[3:09:34] current year budget for the library. So

[3:09:36] you can see almost well over 91% of

[3:09:39] their revenue comes from property tax.

[3:09:41] They're very uh property tax reliant. Um

[3:09:45] their other revenues come from charges

[3:09:48] for service and then they've got a

[3:09:49] couple miscellaneous and then their

[3:09:51] investment income that we talked about

[3:09:53] earlier today.

[3:09:56] This is what their rate breakdown looks

[3:09:58] like currently. So their property their

[3:10:01] mill rate is 0.0000419.

[3:10:05] There's a state capped rate of 0.001. So

[3:10:08] they're at about 42% of their state

[3:10:11] capped rate. So that's the green is what

[3:10:14] they've used up. The orange is what they

[3:10:16] have available. Um and so current

[3:10:18] property tax revenue brings in about

[3:10:20] $4.6 million. Um that maximum allowable

[3:10:24] rate would bring in roughly $11 million

[3:10:27] just to kind of give you some

[3:10:28] perspective on what what that looks

[3:10:30] like.

[3:10:32] Um,

[3:10:34] and this is what the rate has looked

[3:10:36] like over the last 25ish years. So, as

[3:10:41] um, Carla mentioned earlier, they're

[3:10:43] celebrating 25 years of the building.

[3:10:46] When the library moved to Academy

[3:10:48] Square, did the renovation,

[3:10:51] they brought the mill rate up to not

[3:10:53] quite the maximum, but close in order to

[3:10:56] do a lot of those renovations and to

[3:10:58] bring the library there. And as

[3:11:00] valuations have consistently gone up

[3:11:02] over the last 25 years, the rates come

[3:11:04] down other than a couple of times where

[3:11:08] uh tax rates have been adjusted.

[3:11:12] Shifting over to our general operations

[3:11:15] rate. Um this is a comparison of our

[3:11:20] general operations rate to other like cities in both Utah and Salt

[3:11:28] Lake County. You see us

[3:11:30] >> right down here.

[3:11:33] >> There's Provo. As far as general

[3:11:35] operations rate or the property taxes

[3:11:37] that go to fund the general fund in

[3:11:40] Provo City,

[3:11:44] this is our general property tax or our general fund revenue breakdown from

[3:11:49] the current fiscal year.

[3:11:51] >> Hold on a second.

[3:11:52] >> Yep.

[3:11:53] >> Trying to get my head around Woodland

[3:11:54] Hills. Can you go back?

[3:11:56] >> You want to move? So, but does that

[3:11:58] reflect that instead of like bonding for

[3:12:01] something, they raise rates to do

[3:12:03] something? It

[3:12:04] >> it could um

[3:12:05] >> because this could be I'm not sure that

[3:12:07] this is

[3:12:07] >> Well, they also have no commercial.

[3:12:10] They're just big houses. They're just

[3:12:12] mansions,

[3:12:12] >> but they're not that.

[3:12:14] >> Yeah. I guess what I'm saying is there

[3:12:16] could be a lot of factors that go into

[3:12:18] that.

[3:12:18] >> There are.

[3:12:19] >> Because we could like Heramman may be

[3:12:21] amazing and they've got a bajillion

[3:12:24] dollars in bonds.

[3:12:25] >> Yes. Yes. Right.

[3:12:27] >> Yep.

[3:12:27] >> Okay.

[3:12:27] >> All I know is we're doing terrible. We

[3:12:29] got to get to the top of that list,

[3:12:30] guys.

[3:12:31] >> So, you helping yourself.

[3:12:34] >> Lots of quotes.

[3:12:35] >> You can make any graph, babe.

[3:12:40] » I would say to that point, councelor

[3:12:43] Christensen, take this with a grain of

[3:12:44] salt. You can make it say what you want

[3:12:46] to say. You can say,

[3:12:47] >> um, you know, look, look how great we're

[3:12:49] doing. We don't bring any revenue in.

[3:12:52] >> Salt Lake City has a lot of commercial.

[3:12:53] >> Yes. And it's it's very different based

[3:12:56] off the municipality and what your you

[3:12:58] know are you a bedroom community? Do you

[3:12:59] have a lot of commercial? How much sales

[3:13:00] tax do you bring in? Do you bring in no

[3:13:02] sales tax? That's going to be very

[3:13:04] dependent on what you do with your your

[3:13:06] property tax.

[3:13:08] >> Um

[3:13:09] but if you look at the pie chart, um

[3:13:12] you'll see this is current fiscal year

[3:13:15] from from the budget. Uh what our

[3:13:18] projected revenues were. Uh you'll see

[3:13:21] the largest kind of light green square

[3:13:24] sales tax at 30%. That's our largest

[3:13:27] income stream in the general fund. The

[3:13:29] light blue is property tax at 8%. Now um

[3:13:34] it's not to say any of this is is good

[3:13:37] or bad or indifferent. Uh but generally

[3:13:40] sales taxes are more um

[3:13:46] there is more variable there. They are

[3:13:50] what do I want to call them?

[3:13:53] >> They are.

[3:13:54] >> Yes.

[3:13:56] Yeah, they're they're more volatile. Um

[3:13:58] where property tax is more stable.

[3:14:02] >> So just something to to think about and

[3:14:04] keep in mind. But it is it's a balance

[3:14:06] of all these different revenues that

[3:14:07] make up that pie of our roughly $90

[3:14:11] million general fund.

[3:14:13] >> Justin, can I ask a question on that?

[3:14:14] >> Y on this chart. So uh for example like

[3:14:19] um Provo Powers transfers to the general

[3:14:22] fund. Does that categorize as franchise

[3:14:23] fees or transfers in?

[3:14:24] >> Nope. Transfers in.

[3:14:26] >> Okay.

[3:14:26] >> So yeah.

[3:14:28] >> And that's one way to look at it.

[3:14:33] » Yeah. Different people who use our our

[3:14:37] you probably have some breakdown. The

[3:14:39] other

[3:14:41] >> at 10% that would be $30 million. That's

[3:14:44] fairly

[3:14:46] I don't have that offhand, but I can get

[3:14:48] it. That's just from the the budget

[3:14:50] book, so we can we can look into that.

[3:14:54] >> A lot of that's fees and charges, isn't

[3:14:56] it?

[3:14:57] >> Oh, you've got fees already listed at

[3:14:59] 14%.

[3:15:00] >> Yeah.

[3:15:00] >> Okay.

[3:15:01] >> So, we can get a breakdown of that

[3:15:03] though.

[3:15:03] >> I would love to see a breakdown of each

[3:15:05] of those subcategories at some point. Be

[3:15:08] really useful.

[3:15:09] >> As far as the the

[3:15:11] >> dollar amount or No, for example, like

[3:15:13] transfers in. Yep.

[3:15:14] >> Obviously, we know proto power is a huge

[3:15:16] component of that.

[3:15:17] >> That's largely banners.

[3:15:20] >> That's our big revenue.

[3:15:22] We need to sell more banners.

[3:15:24] >> Yeah. Subsidiz

[3:15:27] fees would be another interesting one to

[3:15:28] see how that's broken down. And then and

[3:15:30] then franchise fees.

[3:15:32] >> So, just do a pie chart of each one of

[3:15:34] these.

[3:15:34] >> Pretty much

[3:15:37] >> you just love pie charts.

[3:15:38] >> I love pie charts. There you go.

[3:15:40] >> I love pie.

[3:15:41] >> I think you should do a graph, you know.

[3:15:43] Oh boy.

[3:15:46] >> All right. Um, and then similar to

[3:15:48] library, so this is our breakdown of

[3:15:52] >> that general operations rate. So the

[3:15:54] state caps this rate as well.

[3:15:57] >> Uh, but it's capped at 0.007

[3:16:00] and we're at 0.00534.

[3:16:03] So less than 8% 7 and a half% of what is be feasible. So, anytime anyone

[3:16:12] complains about property tax, just say

[3:16:14] we could charge 700 or $77 million.

[3:16:18] >> So, there's a separate mill rate for

[3:16:19] each of the categories.

[3:16:20] >> There is. Yep. Separate mill rate and

[3:16:23] then that's combined. That's what gets

[3:16:24] that big 14% piece on that dollar

[3:16:29] breakdown. Um, but they are broken down

[3:16:31] individually.

[3:16:33] Um

[3:16:34] >> I and just I just can't remember each

[3:16:37] chart but this is the lowest

[3:16:40] >> of all them

[3:16:41] >> uh percent as a percent of the possible

[3:16:46] >> of each.

[3:16:49] Yeah. Is that right?

[3:16:50] >> Of our mill rates which is the lowest.

[3:16:53] >> It is

[3:17:01] I want to say it's the library.

[3:17:14] Yeah. Library is 0419.

[3:17:18] Um,

[3:17:21] general operations is 534 and then

[3:17:27] our our bonds is the highest.

[3:17:31] So,

[3:17:31] >> and the double question, but the mill

[3:17:33] rate are set by state law, right?

[3:17:35] >> Um,

[3:17:35] >> the high max

[3:17:37] >> the cath is set by by the state. Yep.

[3:17:39] >> And is that is that like is it set as a

[3:17:42] percent or is it set as a

[3:17:46] >> No, it's not. It's set as as the mill

[3:17:48] rate. I don't know. I don't know what

[3:17:50] got them there, but we do.

[3:17:52] >> Does it like does it say periodically

[3:17:55] we'll reset we'll change that or is it

[3:17:57] just like forever

[3:17:58] >> that that I'm not sure. I will look into

[3:18:00] some history on that.

[3:18:01] >> It changes.

[3:18:05] » That's why the the um graph we go down

[3:18:09] so much.

[3:18:11] >> I thought it was a mistake go up.

[3:18:12] >> I was going to say just to be popular

[3:18:14] like Travis, it probably just keep moves

[3:18:16] up. So Salt Lake City doesn't look like

[3:18:17] it's getting too close to it.

[3:18:24] » Race to the top, baby.

[3:18:27] >> You got some in trouble.

[3:18:29] >> Uh this is just kind of historical look

[3:18:31] the last 25 years on the general

[3:18:34] operations motor rate. So again, as

[3:18:36] values have gone up, rate um

[3:18:39] automatically goes down. There have been

[3:18:41] a few times where rates have been

[3:18:43] increased, but generally it's built in

[3:18:46] that way so that revenue stays flat

[3:18:49] minus new growth.

[3:18:51] Um,

[3:18:53] and then this last slide, this is just a

[3:18:55] couple of of truth and taxation changes

[3:18:57] that came out of this legislative

[3:18:58] session out of HB 236. Um, so

[3:19:04] there were a number of of changes that

[3:19:07] were instituted last legislative

[3:19:08] session. These are additional, we'll

[3:19:10] call them new new changes um because

[3:19:13] many people didn't get the memo on the

[3:19:15] new changes um and had some had some

[3:19:17] trouble. So those are all still in

[3:19:19] effect. Um but the goal of this was to

[3:19:22] increase again some transparency for um

[3:19:26] for taxpayers. So again, when the when

[3:19:28] the tenative budget is presented, if

[3:19:30] there is a request or in the tenative

[3:19:34] budget, there's a there's an increase

[3:19:36] proposed to property tax, um

[3:19:40] that has to be stated by the budget

[3:19:42] officer, the mayor in in that meeting.

[3:19:46] Um an impact schedule has to be

[3:19:51] presented. Now, what impact schedule is

[3:19:54] defined as is not super clear. And so

[3:19:56] that's being kind of worked on um with

[3:19:59] municipalities, but essentially what the

[3:20:02] intent of the state was to show

[3:20:04] taxpayers what that increase is being

[3:20:07] used for instead of just we're

[3:20:09] increasing taxes, however little or or

[3:20:13] much as it may be, the intent is for

[3:20:15] that to be public on what that

[3:20:17] additional

[3:20:19] um money is going to be used for. Um

[3:20:22] there also has to be a separate agenda

[3:20:23] item included. Uh so it can't just be

[3:20:26] you know presentation and adoption of

[3:20:28] the tenative budget but there has to be

[3:20:29] a separate agenda item. Um

[3:20:34] also has to be an announcement of the

[3:20:35] approximate dollar amount of the

[3:20:37] increase the percentage of the increase.

[3:20:40] It gets into quite a few of these

[3:20:41] specifics. Um and hearing information um

[3:20:46] that that happens between May 1st and

[3:20:48] June 13th. Um and then adoption of the

[3:20:51] interim budget um is done. This is where

[3:20:54] it gets a little weird. Um, with a

[3:20:57] restricted

[3:20:59] account for those potential dollars that

[3:21:02] could be passed um if truth and taxation

[3:21:05] were approved. So um and likewise um

[3:21:11] this was contemplated um

[3:21:15] for those presenting the budget. So

[3:21:17] whether that's that's our form of

[3:21:19] government in a council mayor form where

[3:21:21] you got a budget officer or mayor

[3:21:22] presenting the same things would need to

[3:21:24] be done should the legislative body or

[3:21:27] the council choose to increase those

[3:21:28] rates. These would then need to be

[3:21:31] followed if there were no proposed

[3:21:34] increase and the council chose to do so.

[3:21:35] just some

[3:21:38] new requirements to be aware of. Um

[3:21:40] >> we'll expect you to stay on top of that.

[3:21:43] >> We got it. Um, councelor,

[3:21:46] >> a few years ago, we did very modest

[3:21:48] increases, but we weren't sure the exact

[3:21:51] amount that we were increasing. So, we

[3:21:53] noticed the maximum that we would and

[3:21:55] then as we went through the process, we

[3:21:58] settled on kind of a lower number or we

[3:22:00] could settle on a lower number. Do we

[3:22:03] still have that flexibility with this

[3:22:05] new law?

[3:22:06] >> Yes. Yeah. Still able to to change that

[3:22:08] amount um

[3:22:10] >> downward, not upward.

[3:22:11] >> Not upward. Yeah.

[3:22:12] >> Okay. And so if I don't know that we

[3:22:16] want to do that this year, but if we

[3:22:17] were doing it another year, then we

[3:22:20] would have a counselor or you present

[3:22:24] the thing

[3:22:25] >> dependent whoever it came from. If it

[3:22:27] came from um the administration

[3:22:30] in their tenative budget, it would need

[3:22:32] to be presented. If it was presented to

[3:22:34] the council and you said

[3:22:36] >> there's not a rate increase, but we want

[3:22:38] to do one or there's not enough of one,

[3:22:39] it would need to come from from that

[3:22:41] body as well. Do the timelines apply too

[3:22:43] because we may not know if we wanted to

[3:22:46] do that kind of supplemental thing when

[3:22:48] we're presented that tentative budget in

[3:22:50] May.

[3:22:51] >> Yes. Um so you would have until

[3:22:55] June 13.

[3:23:01] Not much time but

[3:23:03] >> Okay.

[3:23:04] >> So we don't have to do the property

[3:23:07] impact schedule at the first meeting in

[3:23:09] May. No.

[3:23:10] >> Okay.

[3:23:11] All right. Again, I don't know that we

[3:23:13] want to do this this year, but I want to

[3:23:15] understand what would happen in a future

[3:23:17] year if we needed to do it.

[3:23:18] >> All right. Well, thanks, Justin. Any

[3:23:20] other questions for Justin?

[3:23:23] >> All right. Thank you.

[3:23:23] >> Yep. Thanks, Justin.

[3:23:25] >> Okay. Um, a resolution appropriating

[3:23:29] 75,000 general fund for an economic

[3:23:30] development study for the fiscal year

[3:23:32] ending June 30, 2026.

[3:23:37] and they'll be presented by Cody Hill,

[3:23:39] the division director of economic

[3:23:41] development.

[3:23:45] » Is the home consortium ready? Who's

[3:23:47] presenting?

[3:23:53] » You're up. You're up.

[3:23:58] » No notes, huh? Wow. Just going to wing

[3:24:01] it.

[3:24:02] We've discussed it at length, so I think

[3:24:04] we're all pretty well informed about

[3:24:05] this item. Cody Hill, uh, Pro City

[3:24:08] Economic Development Division Director.

[3:24:09] So, this appropriation request is for

[3:24:11] 75,000 to fund a citywide economic

[3:24:14] development strategy and that has been

[3:24:18] from the beginning of the year a high

[3:24:20] priority that has been clearly

[3:24:22] identified by city council and supported

[3:24:25] by administration. We have met with um

[3:24:28] several council members and

[3:24:29] administration to craft the request for

[3:24:31] proposals that is out right now. It

[3:24:34] closes in 4 days on the 18th. Um as of

[3:24:37] now we have one complete application

[3:24:39] submitted. 26 entities have downloaded

[3:24:43] the RFP, the request for proposal, and

[3:24:46] I've heard from uh another group that

[3:24:48] they're intending to uh respond to it.

[3:24:51] And so that is looking good. But yeah,

[3:24:53] the the request is for $75,000 for for

[3:24:56] that study and it's coming from general

[3:24:58] fund uh money for a onetime

[3:25:00] appropriation.

[3:25:02] >> Can you remind me what we how we

[3:25:03] evaluate those who submit RFPs or

[3:25:06] respond to RFPs?

[3:25:08] >> That's a great question. So, we have a a

[3:25:10] set of criteria that are outlined in the

[3:25:14] request for proposals. And um Caitlyn,

[3:25:18] who's sitting behind you, she actually

[3:25:19] just sent out an email reminder to

[3:25:22] everyone that's on the selection

[3:25:23] committee to provide weights for all of

[3:25:25] the different criteria. Um but it's

[3:25:27] basically how long has this entity

[3:25:30] existed? What is their experience? Um

[3:25:32] >> there is some qualitative stuff.

[3:25:34] >> Oh yeah. Yeah. Absolutely.

[3:25:35] >> Okay.

[3:25:36] >> Right.

[3:25:38] How do do we how do we feel about the

[3:25:39] response so far? It's still early, but

[3:25:42] >> yeah, in speaking with Stephanie Green

[3:25:44] in finance, who who kind of overlooks

[3:25:46] the request for proposal, she says

[3:25:48] you'll get the most all of your

[3:25:51] responses the last day and a handful of

[3:25:53] them the last minute.

[3:25:56] >> And as a former consultant, I can attest

[3:25:58] to that. That's

[3:25:59] >> okay.

[3:26:00] >> You said there's there's a total of 20

[3:26:02] >> 26 downloaded completed.

[3:26:05] >> Yes. No, 26 downloaded. So, just

[3:26:08] basically 26 have shown interest in it.

[3:26:10] >> Yeah. And then one has been submitted

[3:26:12] and then

[3:26:14] >> another entity that I've spoken with

[3:26:15] said they're planning on joining with

[3:26:16] another consulting group and kind of

[3:26:18] working on it together.

[3:26:19] >> Well, I doubt

[3:26:20] >> and they haven't submitted. So,

[3:26:21] >> yeah,

[3:26:22] >> we won't get off. But

[3:26:24] >> what would you consider a good number of

[3:26:25] responses?

[3:26:28] >> Any any more than 10 I'll be very happy

[3:26:31] with. If we get all 26, I'll be a little

[3:26:33] overwhelmed. That's a lot of RFPs to go

[3:26:36] through. Yeah, that that would be great.

[3:26:40] >> All right. Um, any discussion on the

[3:26:43] item?

[3:26:44] >> Thank you for

[3:26:45] >> Go, go, go. Yes.

[3:26:46] >> Perfect. Thank you so much.

[3:26:48] >> Well, there's only one go-getter so far.

[3:26:50] >> Stop it.

[3:26:52] >> Not the last day either.

[3:26:54] >> Well, those are the ones that are

[3:26:57] procrastinators, right?

[3:26:58] >> All right. Next, I have a presentation

[3:26:59] regarding the Provo City and Utah Valley

[3:27:01] Home Consortium Program.

[3:27:03] 2026 annual action plan presented by

[3:27:05] Melissa McN, our community grants

[3:27:07] administrator.

[3:27:16] » Hey, good afternoon everyone.

[3:27:19] Um so this year our annual action plan

[3:27:23] um and since I submitted this we did get

[3:27:25] our final um numbers from HUD. So some

[3:27:28] of these numbers have changed a little

[3:27:29] bit. So I did bring um updated

[3:27:33] numbers for you. Um

[3:27:40] maybe.

[3:27:44] » Okay. So, in our community development

[3:27:46] block grant, um we have so it went down

[3:27:51] a little bit. We have $1,130,200

[3:27:56] um available. And for our home funding,

[3:27:58] we have 1,528,425

[3:28:03] um so that went up a little. So um our

[3:28:07] total funding um combined is about just

[3:28:11] over 3.9 million.

[3:28:15] And let's see.

[3:28:20] Okay. Um and this just goes over the the

[3:28:23] process. So, we do have new council

[3:28:27] members um who maybe have not done this

[3:28:30] or been through this process before, but

[3:28:32] so just a brief reminder is in the fall

[3:28:35] we put out a notice of funding available

[3:28:37] so that we have um entities that come um

[3:28:40] we have like a little workshop where we

[3:28:43] educate them on how how to access the

[3:28:46] application and then what to expect. We

[3:28:48] have a pre-application and then an

[3:28:50] application. Um the pre-application is

[3:28:53] to make sure that their pro project

[3:28:56] proposed project is um meeting HUD

[3:28:59] guidelines and can move forward. Um then

[3:29:02] they come and and submit their

[3:29:05] applications and then we have um staff

[3:29:08] does on-site interviews with them um to

[3:29:12] just kind of determine their um capacity

[3:29:14] and ability to um deliver the projects.

[3:29:18] And then we have scoring. So, we have um

[3:29:21] and we just finished this part up. We

[3:29:23] have um citizen committees um that come

[3:29:27] and listen to all the presentations

[3:29:30] and some of that some of our counselors

[3:29:32] were able to come to these

[3:29:33] presentations. Um I think it's always

[3:29:36] interesting to see how many just how

[3:29:39] much good is done with not a whole lot

[3:29:41] of money in our um in our community. Um,

[3:29:45] so we have our committees um rank all of

[3:29:48] the all of the projects and then they

[3:29:50] come up with funding recommendations

[3:29:52] which um you'll see in the annual action

[3:29:55] plan and then um today I'm just here to

[3:29:58] talk about our public comment period.

[3:30:00] So, there is a draft of the annual

[3:30:02] action plan available on our website.

[3:30:04] Um, and we um invite all interested

[3:30:08] parties to to review it and leave

[3:30:11] comments about what we're doing, what

[3:30:13] you maybe what you'd like to see

[3:30:14] different. Um, and then we'll have a

[3:30:17] public hearing. I have one scheduled on

[3:30:20] the 28th of this month and then another

[3:30:22] one um in June. And the June um public

[3:30:27] hearing is when we'll we'll close the

[3:30:29] comment period and and council will um

[3:30:31] make a final vote um by resolution on

[3:30:34] adopting the plan or making any um

[3:30:37] adjustments to funding that they might um deem necessary. And then um I

[3:30:44] will submit everything to HUD and then

[3:30:46] we wait for our little um award

[3:30:49] contracts from HUD and then move forward

[3:30:51] into the year.

[3:30:53] Um, and so this is just kind of a an

[3:30:56] overall um what we do for our citizen

[3:30:59] engagement. We have regional meetings.

[3:31:01] That's when we get together um up in the

[3:31:04] MAG offices in ORM. We work with ORM. Um

[3:31:08] Utah County uh is doing something

[3:31:11] different. So, we're hoping that they

[3:31:13] will um start participating again next

[3:31:15] year in the in the regional um

[3:31:20] process because that just kind of makes

[3:31:21] it easier on our applicants um so that

[3:31:25] so they go to one place to apply for all

[3:31:29] of these all of us that provide CDBG

[3:31:31] funding. Um then we had local meetings.

[3:31:34] So those are just for our Provo only

[3:31:36] projects. Um and we have our um provo

[3:31:40] citizens committee that's uh made up of

[3:31:43] um neighborhood representatives from uh

[3:31:45] mostly our CDBG eligible neighborhoods.

[3:31:48] Um and then we have our home consortion

[3:31:50] board. So um our home consortium we uh

[3:31:53] administer that program. It is for the

[3:31:56] entire county. So the consortion board

[3:31:58] is made up of um other entities within

[3:32:01] the county um that come and do decide on

[3:32:04] funding um throughout the county.

[3:32:09] Um and this is just kind of describes um

[3:32:12] our role um in in the regional process.

[3:32:16] Um we are the lead entity in the Utah

[3:32:18] Valley Home Consortium. So we um

[3:32:23] help make the um funding decisions for

[3:32:26] the home dollars and then we are

[3:32:28] responsible for all the administration

[3:32:30] of um of the home of the home dollars.

[3:32:35] Um, and we are a a member of the

[3:32:38] Mountainland Continuum of Care. Um, this

[3:32:40] is just like a little um just to bring

[3:32:44] to your attention this this these are

[3:32:46] the numbers from 2025. We don't have the

[3:32:48] 2026 point in time count and I don't

[3:32:50] know if you are familiar with the point

[3:32:52] in time count. I I imagine some of you

[3:32:54] are. Um, and that's just to uh count our

[3:32:59] the the people who are experiencing

[3:33:01] homelessness. Um last year we had a rise

[3:33:05] in of 34% and I'm told by the in the

[3:33:08] last continuum of care meeting that

[3:33:09] they're seeing more um unhoused families

[3:33:12] than they have ever before. So um a lot

[3:33:16] of work to do with with our HUD funding

[3:33:19] and um especially with our our home

[3:33:21] dollars to to try and keep people housed

[3:33:24] and uh and taken care of. Um

[3:33:30] uh and this is the summary of where all

[3:33:31] of the the funding comes from for each

[3:33:34] year. Um again, these numbers are are a

[3:33:36] little bit different because

[3:33:38] um of our funding adjustment. So the

[3:33:41] program income, that's money that we get

[3:33:43] from loans that are repaid. Um we put

[3:33:46] them back into the system to be used

[3:33:48] again. and reprogram funds. That's when

[3:33:50] if a project finishes up and they

[3:33:52] haven't used all the funding, we put it

[3:33:54] back in to be used um by some other

[3:33:57] project. Um our public services cap is

[3:34:00] 15%. So 12 we um obligate about 12% to

[3:34:04] the regional process and we keep 3% just

[3:34:08] for organizations that are doing work

[3:34:10] only in Provo City.

[3:34:14] Um okay. And this is our home funding.

[3:34:18] Um so and again we have our our program

[3:34:22] income and the home um receipts. This is

[3:34:26] another these are both pro considered

[3:34:28] program income. They're just kind of

[3:34:30] different different buckets. So they're

[3:34:32] just separated so that HUD can see those

[3:34:34] different buckets. Um and then we had

[3:34:37] reprogrammed funds come back in. Um and

[3:34:40] so this year this is kind of the

[3:34:41] breakdown of where all of that's going.

[3:34:43] Um the the CHTO set aside is a 15% that we um it's automatically assigned

[3:34:52] to a CHTO. We have one CHTO organization

[3:34:55] which stands for community housing

[3:34:57] development organization. Um and so that

[3:35:01] money automatically goes to that

[3:35:03] organization every year. Um and then we

[3:35:06] have

[3:35:06] >> which organization is it?

[3:35:07] >> Um it is self-help homes.

[3:35:10] So, are is does anyone need um

[3:35:13] clarification on what self-help homes

[3:35:14] is? Because they're pretty fabulous.

[3:35:17] They're they um get together and in

[3:35:20] groups and build each other's homes. Um

[3:35:22] and they're doing a lot of work. Yeah. A

[3:35:24] lot of work um down in PAC and the Salem

[3:35:27] area right now. So, um this year we have

[3:35:30] our our loan to own

[3:35:33] was given the the largest amount of

[3:35:35] money. We've changed our down payment

[3:35:37] assistance programs. um a little bit to

[3:35:40] allow for more down payment assistance

[3:35:41] to help um those families get into their

[3:35:44] first home. Um so a lot more money was

[3:35:47] dedicated to that. And Home Purchase

[3:35:49] Plus, so Loan to own is a countywide

[3:35:51] program. Home Purchase Plus is strictly

[3:35:54] Provo. Um and the Home Purchase Plus

[3:35:58] does allow um for a larger down payment

[3:36:02] um because we really want to incentivize

[3:36:03] people to live in Provo. It's pretty

[3:36:05] great. So

[3:36:06] >> it's the 60 now, right? Yes, it is

[3:36:08] 60,000 um down payment assistance for

[3:36:11] first-time home buyers. And then

[3:36:12] Building Beginnings um does the TBR

[3:36:16] stands for tenant based rental

[3:36:17] assistance. So they uh do a lot of work

[3:36:20] for people who are transitioning back

[3:36:23] into housing. Um some a lot of their

[3:36:26] clientele are exiting the um

[3:36:29] correctional facilities and going into

[3:36:32] their program. um they're they only take

[3:36:35] um certain um offenders um non-violent

[3:36:39] offenders into their program um and help

[3:36:42] them um build skills to succeed and um

[3:36:46] and provide that rental assistance while

[3:36:48] they're building those skills, those

[3:36:50] life skills.

[3:36:51] Um and then this is this is the

[3:36:54] breakdown of all of our um everything

[3:36:56] that was awarded in CDBG. And again,

[3:36:59] these are um going to be a little bit

[3:37:01] different. the refuge and mountain

[3:37:03] community or Mountlands Community Health

[3:37:05] Center are both um less than that and

[3:37:09] that's based on contingency plans that

[3:37:12] our citizen committees come up with in

[3:37:15] case the funding is lower or higher.

[3:37:17] They decide where those adjustments are

[3:37:19] going to be made. So, those two are

[3:37:21] going to be a little bit lower and the

[3:37:22] community garden uh is a little bit

[3:37:25] lower. And then in the um and down here

[3:37:30] in the United Way, that's also a little

[3:37:32] bit lower because of the the reduced

[3:37:34] CDBG funding that we got. And then over

[3:37:37] here in the home awards, they um opted

[3:37:40] to put the excess any excess that we

[3:37:43] got, which was yay, we did get some this

[3:37:45] year um in the loan to own um pod. So

[3:37:49] those are the differences here.

[3:37:53] Um so the next steps are um

[3:37:58] uh well this is probably a later step

[3:38:01] but um you will um potentially adopt the

[3:38:05] annual action plan in June. Um, we do

[3:38:08] have the public comment period that will

[3:38:10] end um in that June public hearing and

[3:38:15] then we will have certifications that um

[3:38:19] the mayor gets to sign for us and then

[3:38:21] we submit everything um to HUD in the in

[3:38:24] the HUD in the federal reporting system

[3:38:27] which is what the IDIS is. Um then

[3:38:29] they'll review and either say this is

[3:38:32] great or um this needs some revisions or

[3:38:36] um and then our new uh program year

[3:38:39] begins July 1st.

[3:38:42] >> All right.

[3:38:44] >> And I think that's it. And Kevin, did

[3:38:48] you get that? Okay. Okay.

[3:38:50] >> Yeah, that'd be great. Okay. And just in

[3:38:53] case somebody's viewing and wants to see

[3:38:54] it, this is the so we I had Kristen just

[3:38:58] posted the new um annual action plan.

[3:39:01] This is the one that council got updated

[3:39:04] since um last week. So this is the this

[3:39:08] is a link to the new annual action plan

[3:39:10] with the new numbers and all those

[3:39:11] revisions um are within there. Um it

[3:39:14] goes right to the website so you can

[3:39:15] look at the action plan and there is a

[3:39:17] comment box um just to make leaving a

[3:39:20] comment easier. And there's also

[3:39:22] information on um on the website on if

[3:39:26] you don't want to do a comment box, if

[3:39:28] you want to email me or call me or mail,

[3:39:30] all that information is on the website.

[3:39:32] Great.

[3:39:33] >> So, do you guys have any any questions

[3:39:35] for me at this point?

[3:39:39] >> All right.

[3:39:40] >> Fantastic. Good job.

[3:39:42] >> Thank you.

[3:39:45] >> All right. You uh municipal council will

[3:39:47] consider a motion for closed meeting.

[3:39:48] Brian

[3:39:51] There are a handful of matters uh or to

[3:39:54] be discussed in closed meeting. They all

[3:39:55] deal with character and competence of

[3:39:57] individuals which is one they approved

[3:39:58] recently. Be appropriate to move to

[3:40:00] close the meeting like this.

[3:40:01] >> Great. Do you have a motion for a closed

[3:40:03] meeting?

[3:40:04] >> Motion to post.

[3:40:05] >> Second.

[3:40:07] >> Great. Um

[3:40:09] that we take a vote on motion to close

[3:40:12] the meeting. Councelor Gary Garrett.

[3:40:13] >> Yes.

[3:40:14] >> Councelor Bogd. Yes. Councelor Hogan.

[3:40:16] >> Yes.

[3:40:16] >> Councelor McKay. Yes. Councelor

[3:40:18] Christensen.

[3:40:19] >> Yes. Ma'am. Councelor Whitlock.

[3:40:20] >> Yes.

[3:40:21] >> Councelor Whipple.

[3:40:22] >> Yes.

[3:40:23] >> That passes 70. Um, we will now recess

[3:40:26] appointment council work meeting and

[3:40:28] reconvene in the pre-unction room for

[3:40:30] the closed meeting.

[3:40:36] » Recording stopped.

Provo City Council Work Meeting | April 14, 2026

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