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like to welcome everyone to global

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council work April 14th, 2026 at 12

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noon.

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We roll to a roll call of the elected

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officials

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started with councelor Rachel Whipple.

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>> Uh Jeff Wock, Craig Christensen,

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>> Katrice M, Becky Bogden,

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>> Gary Garrett.

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>> Although this is a public meeting, only

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the presenters and those invited by the

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council may speak or ask questions.

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Unless otherwise am by the chair. Please

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wait to speak until called on by the

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council chair. When speaking, please be

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sure to use a microphone so the record

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is clear and those attending virtually

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can hear you. Please also be sure to

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limit side conversations as they

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interfere with the audio recording. If

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you need to have a side conversation,

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please step out of the work meeting

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room. Is proposed that we approve the

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following minutes. March 24th, 2026 work

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meeting. Are there any objections or

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requested changes?

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Seeing no objection, I declare the

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minutes approved by unanimous consent.

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First item of business is a presentation

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regarding the 2027 budget airport. This

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is presented by Brian Torus, our airport

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director.

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>> All right, we're waiting for the door to

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open, but it looks like we got here just

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in time. So, thank you, council. Thanks

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for having us today. We're going to make

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this pretty quick unless there are

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questions. Um, pretty similar budget to

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what we had last year. Um, just with a

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few highlights,

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maybe

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Kevin, you want to just advance for me?

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>> I forgot.

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» All right, there we go. So, just just to

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recap um part of what's included in this

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year's budget, which is a change from

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last year's budget budget time anyway as

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we added the three full-time

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firefighters mid year and we appreciate

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that. Um we are fully compliant with our

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FA requirements for ARF at this point.

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In fact, our FAA inspector is here

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tomorrow and Thursday. So, uh putting us

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through the ringer on on our

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certification, but we we feel pretty

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good about the way things are going and we should be just fine. So, um, and

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then just some moderate increases to

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several line items in the budget. Just

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anticipating

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end of this budget year that we're we're

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working on is is essentially 18 months

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from now and we'll have some of the new

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terminal operational or or close to

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operational at that point. And so, we've

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increased a few line items. Uh, can't

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remember the exact amount, but it's in

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your packet. There's a supplemental

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request. And then I'm currently at the

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airport.

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>> Did you mean the end of this year or the

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end of next?

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>> So the end of FY27, right? Um

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>> cuz you're still way off.

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>> Yeah. It's it's the beauty of budgeting

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in February, March time frame is is

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we're looking way out there. So um

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>> you're saying the bottom two are the end

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of this year.

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>> No, I'm saying just we're planning for

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increased operations at the end of FY27.

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That's why we've increased those line

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item budgets for maintenance of

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equipment and and other things like that

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because again this budget year takes us

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clear till July of 207.

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>> Yes. Okay. So these are for this budget

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though.

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>> Yes. Yeah. Okay. Thank you.

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>> Um sorry to confuse you on that. Um

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full-time systems analyst. Um currently

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we split a an is employee between us and

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public works. um we're getting to the

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point with all the systems and

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technology at the airport um where we we

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need that person full-time. So, we're

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just adding that additional part-time

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uh budget amount halftime, not part-time

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budget amount to the budget. And then,

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>> so you'd be hiring a full just for the

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airport.

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>> Correct. Um I hope it's the same person

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we have. Um Gordon might not like that we take him from public works, but

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um we'll work that out with is who that

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person ends up being. But we will have a

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full-time dedicated is employee at the

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airport. Um and then

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uh again, this is IS's responsibility to

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staff it, but also providing backup. So

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when that person takes vacation or or

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whatever, they're also on call, right?

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So um we operate nearly 24 hours a day.

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And so um having that backup person is

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also important um in

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the last one we have a part-time

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administrative assistant that we're

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looking to move to full-time just uh do

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the activity at the airport and all the

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interruptions that our poor executive

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office assistant has to endure

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throughout the day and and still try and

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get get their work done. So that's the changes in in the uh in the

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budget. Um, a few minor fee changes is

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all. Uh, we found that we were missing

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one of our badges in our in our fee

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schedule. Um, this is just a general

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aviation badge for for anyone who has

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business inside the non-commercial part

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of the airport. It was just missing. Um,

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something we overlooked. And then

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landing fees and terminal use fees.

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Those are are fees that we um increase

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based on CPI, at least for the moment.

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We have um I think we're in our second

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to last year of being tied to that

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contractually with the airlines. Um and

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obviously as operations increase that's two of our main fees that we

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charge to the airlines um that also get

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waved um during incentive periods as

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well. So

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>> those numbers are so small it's hard to

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have like perspective on it. I was

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curious like what kind of are we talking

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thousands of increase, tens of thousands

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of increase like overall for the year?

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>> It's not a ton. Just just on order of

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magnitude landing fees, we get about

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600,000 a year in landing fees. Okay.

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>> So, it's I mean 3% more. Again, right

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now

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>> when Breeze came in, they they tied us

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to some pretty low landing fees by

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contract and we had to match that with

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the other airlines. So we we did that

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for 5 years. Um so we're hoping to see

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in the next few years more moderate

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increase around the 10% range or

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something like that. Um again it's a

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fine line. The airlines will claim that that's going to break the bank and

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people aren't going to fly and all that

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sort of stuff. So it's it's a fine

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balance and what we charge the airlines.

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But it is of note that those two fees

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get waved um in incentive period. So for

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a new route it get waves it gets waved

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for two years.

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>> So an incentive period is a new route

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and every new route gets two years of

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>> so for new routes with zero service it's

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two years for an existing route that

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they're adding frequency to like if

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breeze decided to serve a market

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allegant was in um they get it for 12

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months is all.

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>> So

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>> how do we compare how do we compare to

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Salt Lake for example on our fees? Uh we

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are extremely low.

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>> Much lower.

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>> Much

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>> how about to other regional airports?

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>> Uh we're pretty low still. Um just

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perspective, I don't know exactly, but

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we're in the we're in the realm with

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Ogden and St. George. Um again, I think

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that's the expectation of of the users

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and the airlines that we'd be a little

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bit lower. We don't have quite the

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>> um facilities that those large airports

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have. That's also what makes us

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attractive, right? um because those fees

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get to be pretty expensive when you're looking at $35 tickets, right?

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So, um we don't we don't foresee us

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raising those a ton. We're about number

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six in uh Allegiance Network as far as

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um sixth lowest. So, there's only five

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that are lower than us in Allegiance

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entire network. We just learned that

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last week when we went to our Allegian

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conference. lower fees.

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>> There's only five airports that have

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lower

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>> they call these um Whoa, sorry about

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that.

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>> They use these to determine what's

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called a cost per implainment.

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>> Um and we are like I say number six,

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there's only five lower than us.

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>> It'd be great next year to have a graph

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on that comparison.

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>> You got it. is.

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>> And then we we've thrown this around

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several times, but we we are removing

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terminal advertising fees um in favor of negotiated market rates for that um

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as strategy and marketing. People always

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have a different idea of how they want

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to advertise in the in the terminal. And

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so it's kind of hard to pinpoint exactly

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what that rate should be um

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because it does vary so so much. So, um,

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one thing that that I want to make sure

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and mention, um, as we committed to last

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year in the budget season, um, we are

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planning to take over the payment that

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is currently coming from the general

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fund for the Durant property purchase.

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Um, there's three or four years left on

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that. Four years, Jimmy's telling me,

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thank you, Jimmy. um on that um as well.

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I believe as part of that finance is

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preparing that transaction for the for

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this current year. Um but just know when

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that does come, we will be planning on picking up that payment at the

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airport in 27 and beyond.

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>> Now, I know that was always our goal

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>> and but I just curious, so financially

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that's not an extra strain on you like

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it's it does work out well and it you're

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at the right place.

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It's tricky, right? Um, our revenues

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look really good. March was our busiest

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month ever. Um, we had over 103,000

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passengers through the terminal. Our

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parking revenue was the highest it's

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ever been. So, the trend is in the right

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direction, but we also have fuel prices

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that are going the same way. And that impacts our airlines significantly.

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So,

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>> we we feel like it's going to be okay.

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Um, and if everything continues where we

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are today and doesn't decline, then we

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should be just fine. We're not counting

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on on needing

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significant increases to make it work.

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Um, like I say, our revenues do look

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good. Um, and as long as things don't

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decline drastically.

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>> Can you remind us, Brian, what that

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annual payment has been and what it will

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be?

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>> I think total principal interest is 600

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and something thousand um year

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>> per year. Uh Jimmy could tell us

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exactly, but I want to say it's around

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130 interest and 400 and something in in

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principal. So,

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and just some some key accomplishments.

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Um we did see over 540,000

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passenger inflamements. So again, double

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00:11:17,600 --> 00:11:21,200
that's the number of passengers in 2020.

270
00:11:21,200 --> 00:11:24,720
That's calendar year 2025.

271
00:11:24,720 --> 00:11:27,600
Um we think um we've been saying this a

272
00:11:27,600 --> 00:11:29,760
long time that that we're that close to

273
00:11:29,760 --> 00:11:33,519
small hub status and based on those

274
00:11:33,519 --> 00:11:36,399
numbers that puts us well within

275
00:11:36,399 --> 00:11:38,880
actually up six or seven airports into

276
00:11:38,880 --> 00:11:41,760
that small hub status from from years

277
00:11:41,760 --> 00:11:44,320
past. Now employments could have

278
00:11:44,320 --> 00:11:47,200
increased nationwide and so we don't

279
00:11:47,200 --> 00:11:49,839
know exactly but if the employments

280
00:11:49,839 --> 00:11:51,839
nationwide were what they were a year

281
00:11:51,839 --> 00:11:53,920
ago and we would be well within that

282
00:11:53,920 --> 00:11:56,399
small hub status which doesn't mean a

283
00:11:56,399 --> 00:11:59,040
whole lot other than our our competition

284
00:11:59,040 --> 00:12:01,839
pool for grant money for certain grants

285
00:12:01,839 --> 00:12:05,519
becomes smaller. Um and so

286
00:12:05,519 --> 00:12:09,760
anyway and that traffic represents a

287
00:12:09,760 --> 00:12:12,560
20.4% 4% increase from from previous

288
00:12:12,560 --> 00:12:14,959
year. So, we're not seeing the 100%

289
00:12:14,959 --> 00:12:18,560
increase that we did in 23 and 24, but a

290
00:12:18,560 --> 00:12:20,320
20% increase is still pretty

291
00:12:20,320 --> 00:12:21,519
significant.

292
00:12:21,519 --> 00:12:23,600
>> I know this the small hub status is a

293
00:12:23,600 --> 00:12:24,720
big deal.

294
00:12:24,720 --> 00:12:26,480
>> Um, is it only in playments that

295
00:12:26,480 --> 00:12:28,800
determines that or is there a report

296
00:12:28,800 --> 00:12:29,360
card?

297
00:12:29,360 --> 00:12:32,000
>> Yeah, so the way it works is it's based

298
00:12:32,000 --> 00:12:34,560
off a percentage of nationwide

299
00:12:34,560 --> 00:12:36,880
employment. So for small hub, I want to

300
00:12:36,880 --> 00:12:40,639
say it's less than 0.5% of nationwide

301
00:12:40,639 --> 00:12:42,959
employments or 0.05 or something like

302
00:12:42,959 --> 00:12:45,040
that. I can't remember the exact number.

303
00:12:45,040 --> 00:12:48,160
Um and then medium hub is, you know, the

304
00:12:48,160 --> 00:12:50,720
next tier, but even the large hubs like

305
00:12:50,720 --> 00:12:53,680
Salt Lake and Atlanta, it's only like 1%

306
00:12:53,680 --> 00:12:58,000
of of nationwide employment. So, um, but

307
00:12:58,000 --> 00:13:01,040
again, we are in the top

308
00:13:01,040 --> 00:13:04,320
what, 300 airports in the country, um,

309
00:13:04,320 --> 00:13:06,560
as far as commercial service, and

310
00:13:06,560 --> 00:13:08,399
there's over 3,000 airports in the

311
00:13:08,399 --> 00:13:11,440
country. So,

312
00:13:11,440 --> 00:13:13,360
um, again, we added the three full-time

313
00:13:13,360 --> 00:13:15,760
firefighters. Um, and this next one's a

314
00:13:15,760 --> 00:13:17,519
bigger one. We completed construction of

315
00:13:17,519 --> 00:13:21,120
Terminal Apron, which has been amazing.

316
00:13:21,120 --> 00:13:26,639
um we don't have to cram aircraft on the ramp and uh crowd them in other

317
00:13:26,639 --> 00:13:31,360
places on the airport. Um we are

318
00:13:31,360 --> 00:13:33,200
beginning construction of the North

319
00:13:33,200 --> 00:13:34,800
Taxiway

320
00:13:34,800 --> 00:13:36,800
Charlie hanger development. So that will

321
00:13:36,800 --> 00:13:39,040
provide infrastructure for 12 additional

322
00:13:39,040 --> 00:13:42,480
private hangers. Um and so that's being

323
00:13:42,480 --> 00:13:44,480
we we sent that out to bid just last

324
00:13:44,480 --> 00:13:47,040
week. We've already got hangers under

325
00:13:47,040 --> 00:13:48,639
design being submitted for building

326
00:13:48,639 --> 00:13:51,120
permits to fill in those spaces. So, we

327
00:13:51,120 --> 00:13:54,160
have a waiting list of probably 25 for

328
00:13:54,160 --> 00:13:56,240
those 12 hangers. So, we feel pretty

329
00:13:56,240 --> 00:13:59,199
good that those will be be uh filled up

330
00:13:59,199 --> 00:14:01,760
pretty quickly and then that adds uh

331
00:14:01,760 --> 00:14:04,160
several hundred,000 a year to our our

332
00:14:04,160 --> 00:14:07,199
revenue for ground lease um just off of

333
00:14:07,199 --> 00:14:08,639
those 12 hangers. So,

334
00:14:08,639 --> 00:14:11,120
>> so do we own all the ground the all the

335
00:14:11,120 --> 00:14:12,000
hangers are on?

336
00:14:12,000 --> 00:14:15,519
>> Correct. So the airport,

337
00:14:15,519 --> 00:14:17,839
we have to retain control of the

338
00:14:17,839 --> 00:14:19,680
property in perpetuity because we've

339
00:14:19,680 --> 00:14:22,639
obligated it through federal funds. And

340
00:14:22,639 --> 00:14:24,800
so and that's typical of every airport.

341
00:14:24,800 --> 00:14:27,519
So all of the property at the airport

342
00:14:27,519 --> 00:14:29,199
remains the property of the city. We

343
00:14:29,199 --> 00:14:31,920
just have a long it's it's typically the

344
00:14:31,920 --> 00:14:34,880
FAA won't allow anything longer than 50

345
00:14:34,880 --> 00:14:38,480
years, but our standard ground lease um

346
00:14:38,480 --> 00:14:40,959
upon which sits the hanger is 30 years

347
00:14:40,959 --> 00:14:45,110
with two five-year extensions.

348
00:14:45,120 --> 00:14:48,160
And then there's escalation

349
00:14:48,160 --> 00:14:50,320
uh divisions to to increase the ground

350
00:14:50,320 --> 00:14:52,560
lease rate throughout the term of the

351
00:14:52,560 --> 00:14:53,440
lease as well.

352
00:14:53,440 --> 00:14:55,440
>> And so because we own the ground, we can

353
00:14:55,440 --> 00:14:58,320
have rules on

354
00:14:58,320 --> 00:15:01,600
Uh yes, we have rules and regulations as

355
00:15:01,600 --> 00:15:07,120
well as minimum standards. So if you're providing a a commercial uh

356
00:15:07,120 --> 00:15:09,760
yeah commercial service of any kind um

357
00:15:09,760 --> 00:15:11,519
at the airport, then then that would

358
00:15:11,519 --> 00:15:14,800
fall under minimum standards. So to do X

359
00:15:14,800 --> 00:15:16,800
activity, you have to comply with this

360
00:15:16,800 --> 00:15:19,279
list. And then rules and regulations is

361
00:15:19,279 --> 00:15:22,560
just uh you know, don't speed, don't

362
00:15:22,560 --> 00:15:25,040
litter, whatever other rules we might

363
00:15:25,040 --> 00:15:28,320
have. But every lease is is um

364
00:15:28,320 --> 00:15:31,279
subordinate to the FAA uh rules,

365
00:15:31,279 --> 00:15:33,360
regulations, federal law, and our grant

366
00:15:33,360 --> 00:15:37,040
asurances, which we um every time the

367
00:15:37,040 --> 00:15:39,360
mayor signs a grant agreement, we we

368
00:15:39,360 --> 00:15:42,480
commit to this list of 49 different

369
00:15:42,480 --> 00:15:44,639
things that the FA requires. So, all of

370
00:15:44,639 --> 00:15:46,480
our leases are subject to all of those

371
00:15:46,480 --> 00:15:48,000
federal provisions as well.

372
00:15:48,000 --> 00:15:49,199
>> Now, in the past, I know we've had

373
00:15:49,199 --> 00:15:51,360
issues with people not having planes in

374
00:15:51,360 --> 00:15:53,040
their hangers or so. Has that been

375
00:15:53,040 --> 00:15:55,759
worked out? that it's a perpetual

376
00:15:55,759 --> 00:16:00,000
problem. Um, and we we get the

377
00:16:00,000 --> 00:16:02,639
lowhanging fruit and then we we move on

378
00:16:02,639 --> 00:16:04,560
and we we try and make the situation

379
00:16:04,560 --> 00:16:06,560
better that we've got one that I know of

380
00:16:06,560 --> 00:16:09,759
that we're still dealing with. Um, and

381
00:16:09,759 --> 00:16:11,920
there's some history there that makes it

382
00:16:11,920 --> 00:16:13,680
even more difficult. But yes, we are

383
00:16:13,680 --> 00:16:15,600
obligated to ensure that the hangers are

384
00:16:15,600 --> 00:16:19,680
used for aeronautical purposes only.

385
00:16:19,680 --> 00:16:22,079
Um, we added three non-stop routes.

386
00:16:22,079 --> 00:16:24,480
Raleigh, North Carolina. Don't know if

387
00:16:24,480 --> 00:16:26,000
all of you heard about that, but that

388
00:16:26,000 --> 00:16:28,480
will start in October. Las Vegas and

389
00:16:28,480 --> 00:16:30,000
Burbank.

390
00:16:30,000 --> 00:16:32,639
Uh we already talked about RF index C.

391
00:16:32,639 --> 00:16:35,040
Um and the bond that you were all so

392
00:16:35,040 --> 00:16:39,279
gracious to approve. And then uh some

393
00:16:39,279 --> 00:16:40,880
funding through earmarks through our

394
00:16:40,880 --> 00:16:44,079
federal uh representatives.

395
00:16:44,079 --> 00:16:45,759
And

396
00:16:45,759 --> 00:16:48,079
we just finished the installation of an

397
00:16:48,079 --> 00:16:50,639
automatic exit lane door. So the kind

398
00:16:50,639 --> 00:16:52,079
you see at Salt Lake that you walk

399
00:16:52,079 --> 00:16:54,160
through and the door slam behind you and

400
00:16:54,160 --> 00:16:56,320
if you try and walk backwards it screams

401
00:16:56,320 --> 00:16:58,720
at you. Um so that that's huge. That

402
00:16:58,720 --> 00:17:00,720
actually eliminates

403
00:17:00,720 --> 00:17:02,560
um one of the things with the budget

404
00:17:02,560 --> 00:17:05,360
process back in Washington is a lot of

405
00:17:05,360 --> 00:17:08,799
the funding for TSA as you know is being

406
00:17:08,799 --> 00:17:10,480
eliminated. And one of the first things

407
00:17:10,480 --> 00:17:12,400
they did to eliminate even when they had

408
00:17:12,400 --> 00:17:15,839
a continuing resolution was the TSA

409
00:17:15,839 --> 00:17:18,720
historically at our airport has has

410
00:17:18,720 --> 00:17:20,720
monitored the exit lane so that people

411
00:17:20,720 --> 00:17:22,559
couldn't come back through the door once

412
00:17:22,559 --> 00:17:25,199
they had exited the sterile area. Well,

413
00:17:25,199 --> 00:17:27,919
that was day one of the Trump

414
00:17:27,919 --> 00:17:30,480
administration that was eliminated which

415
00:17:30,480 --> 00:17:33,200
necessitated our employees to be at that

416
00:17:33,200 --> 00:17:36,080
exit which was a huge drain on our

417
00:17:36,080 --> 00:17:40,000
resources. Um but now with this um we

418
00:17:40,000 --> 00:17:43,360
have an officer there that now provides

419
00:17:43,360 --> 00:17:47,679
this door provides the the uh the

420
00:17:47,679 --> 00:17:49,760
barrier so to speak so that the the

421
00:17:49,760 --> 00:17:51,280
police officers that are already there

422
00:17:51,280 --> 00:17:54,400
can respond appropriately and if there

423
00:17:54,400 --> 00:17:57,200
is an issue whereas before they may be

424
00:17:57,200 --> 00:17:59,600
helping TSA in the bag check room or

425
00:17:59,600 --> 00:18:01,360
whatever and they someone could sneak

426
00:18:01,360 --> 00:18:04,880
through. So that's a big one for us. Um,

427
00:18:04,880 --> 00:18:07,360
we have a second one. So, currently we

428
00:18:07,360 --> 00:18:09,360
have one lane. We have a second lane

429
00:18:09,360 --> 00:18:11,039
that will be delivered here in the next

430
00:18:11,039 --> 00:18:13,760
month or two to give us two of those

431
00:18:13,760 --> 00:18:16,799
exit lanes. Um, and we have space for

432
00:18:16,799 --> 00:18:21,520
future additions as well. And then um

433
00:18:21,520 --> 00:18:23,679
something that's probably less visible

434
00:18:23,679 --> 00:18:26,400
maybe um is working with our storm water

435
00:18:26,400 --> 00:18:30,240
division. Um we've in installed a new uh

436
00:18:30,240 --> 00:18:33,440
pump which allowed us to fill in a lot

437
00:18:33,440 --> 00:18:36,320
of the airport moat um provide for

438
00:18:36,320 --> 00:18:38,320
additional parking space for rental cars

439
00:18:38,320 --> 00:18:41,760
and the um but all of that drainage has

440
00:18:41,760 --> 00:18:44,720
to get lifted up over the dyke and into

441
00:18:44,720 --> 00:18:47,120
the lake. We've had an old pump station

442
00:18:47,120 --> 00:18:50,480
there since the 70s. Um, and with all of

443
00:18:50,480 --> 00:18:52,559
the development, not just at the

444
00:18:52,559 --> 00:18:54,880
airport, but again at the regional

445
00:18:54,880 --> 00:18:57,440
sports park and that whole west side

446
00:18:57,440 --> 00:19:00,880
drains to the airport, um, between the

447
00:19:00,880 --> 00:19:03,840
airport and storm water, we've we're

448
00:19:03,840 --> 00:19:07,440
about 75% complete on that on that

449
00:19:07,440 --> 00:19:09,440
facility that that pumps that storm

450
00:19:09,440 --> 00:19:13,120
drainage up and over into the lake.

451
00:19:13,120 --> 00:19:15,360
Uh, just some performance measures here.

452
00:19:15,360 --> 00:19:17,760
Um, this is one, it's again based on

453
00:19:17,760 --> 00:19:20,320
employments. So in 2024 we were at

454
00:19:20,320 --> 00:19:22,480
448,000.

455
00:19:22,480 --> 00:19:25,200
Again I we talked about uh in the

456
00:19:25,200 --> 00:19:28,559
previous slide our target was looks like

457
00:19:28,559 --> 00:19:32,000
it was 505,000. We surpassed that um

458
00:19:32,000 --> 00:19:34,960
with 545,000

459
00:19:34,960 --> 00:19:37,360
with and then the FA will add some with

460
00:19:37,360 --> 00:19:38,799
charters. We don't know those numbers

461
00:19:38,799 --> 00:19:40,880
until about August or September what the

462
00:19:40,880 --> 00:19:46,160
final number is. But and then uh

463
00:19:46,160 --> 00:19:50,640
so we even surpassed 2026's target.

464
00:19:50,640 --> 00:19:53,600
And that's all I had if

465
00:19:53,600 --> 00:19:55,280
there are any questions.

466
00:19:55,280 --> 00:19:58,320
>> Any questions? Um Council Whitlock.

467
00:19:58,320 --> 00:20:01,200
>> Yeah, just um I know we a couple we

468
00:20:01,200 --> 00:20:02,799
asked a similar question, but I just

469
00:20:02,799 --> 00:20:04,559
want to make sure I understood. So do we

470
00:20:04,559 --> 00:20:07,039
estimate when we hit that 5 550k target

471
00:20:07,039 --> 00:20:09,919
we'll hit that uh status the hub status?

472
00:20:09,919 --> 00:20:12,799
>> Yeah. Again so if you look at at 2024's

473
00:20:12,799 --> 00:20:14,240
in plainment numbers yeah

474
00:20:14,240 --> 00:20:17,760
>> that 550,000 that we hit this year would

475
00:20:17,760 --> 00:20:19,039
have put us

476
00:20:19,039 --> 00:20:21,600
>> six or seven airports up into that small

477
00:20:21,600 --> 00:20:24,320
hub status list. Again, depending on

478
00:20:24,320 --> 00:20:28,000
what the nationwide employments did this

479
00:20:28,000 --> 00:20:30,240
year in 2025, we don't we don't know

480
00:20:30,240 --> 00:20:32,720
until September, August, September of

481
00:20:32,720 --> 00:20:35,200
what the actual numbers are, but just

482
00:20:35,200 --> 00:20:39,280
given that um we feel pretty confident

483
00:20:39,280 --> 00:20:40,960
we'll be in that list.

484
00:20:40,960 --> 00:20:42,159
>> Great.

485
00:20:42,159 --> 00:20:44,080
>> Another question I had is um there's

486
00:20:44,080 --> 00:20:47,520
like a 20% year-over-year growth and

487
00:20:47,520 --> 00:20:49,039
what has been primarily driving that?

488
00:20:49,039 --> 00:20:51,360
Has it been new routes, uh more more

489
00:20:51,360 --> 00:20:52,799
flights within existing routes? Could

490
00:20:52,799 --> 00:20:54,799
you just explain the breakdown there?

491
00:20:54,799 --> 00:20:57,360
>> Yeah, so Breeze is probably a lot of

492
00:20:57,360 --> 00:20:59,840
that um

493
00:20:59,840 --> 00:21:01,440
and obviously American Airlines, but

494
00:21:01,440 --> 00:21:03,840
Breeze has has almost doubled their

495
00:21:03,840 --> 00:21:06,720
employments in the last in the last year

496
00:21:06,720 --> 00:21:09,600
um with new routes. Uh they took over

497
00:21:09,600 --> 00:21:14,880
the Aello service into Burbank, which helps, right? So when Abello

498
00:21:14,880 --> 00:21:18,240
exited Burbank, uh, Breeze added

499
00:21:18,240 --> 00:21:22,480
essentially everything that Aello was flying out of Burbank. They added

500
00:21:22,480 --> 00:21:24,480
all of that to their network plus added

501
00:21:24,480 --> 00:21:29,200
us into that mix. Um, Allegent has

502
00:21:29,200 --> 00:21:33,039
actually retracted a little bit um where

503
00:21:33,039 --> 00:21:37,200
Breeze surpassed Allegent in in sorry

504
00:21:37,200 --> 00:21:40,400
February, January and February and

505
00:21:40,400 --> 00:21:44,159
that's never happened. So, um, March

506
00:21:44,159 --> 00:21:46,240
Allegant edged them out by just a

507
00:21:46,240 --> 00:21:49,200
thousand or so passengers, but, um, I

508
00:21:49,200 --> 00:21:50,720
think mainly it's Breeze and their

509
00:21:50,720 --> 00:21:53,600
expansion plans here in Provo and and

510
00:21:53,600 --> 00:21:56,000
new routes obviously um, and just

511
00:21:56,000 --> 00:21:57,520
popularity.

512
00:21:57,520 --> 00:21:59,120
the these airlines put these schedules

513
00:21:59,120 --> 00:22:01,360
out three months in advance and if if

514
00:22:01,360 --> 00:22:03,520
things are booking they add frequency

515
00:22:03,520 --> 00:22:06,320
and so um I think it's a lot of things

516
00:22:06,320 --> 00:22:08,320
people are

517
00:22:08,320 --> 00:22:10,080
awareness is going up that you can get

518
00:22:10,080 --> 00:22:12,159
on an airplane in Provo even though it's

519
00:22:12,159 --> 00:22:15,360
still really low um we find about six

520
00:22:15,360 --> 00:22:17,360
out of 10 people still don't know that

521
00:22:17,360 --> 00:22:20,640
you can get on an airplane in Provo um

522
00:22:20,640 --> 00:22:22,720
which is something we're working on but

523
00:22:22,720 --> 00:22:24,400
so yeah I think just everything together

524
00:22:24,400 --> 00:22:26,720
word of mouth people

525
00:22:26,720 --> 00:22:29,679
um once they use the airport and the

526
00:22:29,679 --> 00:22:32,320
options are there, why would you not use

527
00:22:32,320 --> 00:22:35,840
it? Um so we're getting a lot of re

528
00:22:35,840 --> 00:22:39,440
repeat passengers as well.

529
00:22:39,440 --> 00:22:41,200
>> Um if I can ask a couple more

530
00:22:41,200 --> 00:22:44,480
follow-ups. Uh how much more are we able

531
00:22:44,480 --> 00:22:47,039
to grow realistically within our

532
00:22:47,039 --> 00:22:48,159
existing footprint? I know we're doing

533
00:22:48,159 --> 00:22:49,440
the expansion but from the existing

534
00:22:49,440 --> 00:22:50,000
footprint.

535
00:22:50,000 --> 00:22:57,440
>> Yeah. So, we did an exercise early on if we were to max out every conceivable

536
00:22:57,440 --> 00:23:00,960
option for just for just apron space.

537
00:23:00,960 --> 00:23:04,880
Um, really we couldn't get past 12 what

538
00:23:04,880 --> 00:23:08,000
12 gates without going out into the lake

539
00:23:08,000 --> 00:23:12,240
and all that sort of stuff. So, I mean

540
00:23:12,240 --> 00:23:15,520
forever is a long time, right? So, who

541
00:23:15,520 --> 00:23:19,120
knows what happens in the future, but realistically

542
00:23:19,120 --> 00:23:21,120
this expansion that we have is just

543
00:23:21,120 --> 00:23:24,320
about as big as we can get. Um,

544
00:23:24,320 --> 00:23:26,080
>> what I was asking with prior to the

545
00:23:26,080 --> 00:23:27,679
expansion on the existing kind of

546
00:23:27,679 --> 00:23:29,360
footprint, how much more can we go

547
00:23:29,360 --> 00:23:30,960
before we basically say that is at full

548
00:23:30,960 --> 00:23:32,159
capacity?

549
00:23:32,159 --> 00:23:33,679
>> Oh, we're there.

550
00:23:33,679 --> 00:23:34,480
>> We're there effective.

551
00:23:34,480 --> 00:23:37,440
>> Yeah. In fact, um when Breeze added

552
00:23:37,440 --> 00:23:40,480
Raleigh, I had to tell him, "Sorry, I

553
00:23:40,480 --> 00:23:42,080
can't accommodate you on that day

554
00:23:42,080 --> 00:23:44,000
because we're already full."

555
00:23:44,000 --> 00:23:46,559
>> Um now, that doesn't mean we're full 24

556
00:23:46,559 --> 00:23:48,559
hours a day, but we have three really

557
00:23:48,559 --> 00:23:50,880
busy times. First thing in the morning,

558
00:23:50,880 --> 00:23:53,280
around noon, and then at night. And

559
00:23:53,280 --> 00:23:54,880
that's that's similar with every

560
00:23:54,880 --> 00:23:57,360
airport. So, right now, we're at full

561
00:23:57,360 --> 00:23:59,919
five gate capacity in the morning, at

562
00:23:59,919 --> 00:24:01,039
noon, and at night.

563
00:24:01,039 --> 00:24:05,679
>> Yeah. Um, so and then so I saw that

564
00:24:05,679 --> 00:24:10,720
we're still we're still on a a deficit.

565
00:24:10,720 --> 00:24:14,720
Um, so it's like uh and and then we're

566
00:24:14,720 --> 00:24:16,000
using that we're using bonds to

567
00:24:16,000 --> 00:24:18,000
basically cover the current deficit.

568
00:24:18,000 --> 00:24:19,760
What's the plan? Like is the expansion

569
00:24:19,760 --> 00:24:22,480
going to hit us on re on revenue and

570
00:24:22,480 --> 00:24:24,799
costs? Is that not correct?

571
00:24:24,799 --> 00:24:25,919
>> I'm gonna let Jimmy

572
00:24:25,919 --> 00:24:28,240
>> right behind you.

573
00:24:28,240 --> 00:24:32,400
Jimmy Mcnite. Um we have included in the

574
00:24:32,400 --> 00:24:34,799
operating costs that you you saw in the

575
00:24:34,799 --> 00:24:37,360
packet. We have some bond payments that

576
00:24:37,360 --> 00:24:41,120
are being made from uh grant grant funds

577
00:24:41,120 --> 00:24:43,360
from the previous terminal that were

578
00:24:43,360 --> 00:24:46,320
loans from UD do. So, it's it's a little

579
00:24:46,320 --> 00:24:49,600
deceiving, I think, but I don't know how

580
00:24:49,600 --> 00:24:51,440
else to show it because

581
00:24:51,440 --> 00:24:53,200
>> it's it's previous year revenue that's

582
00:24:53,200 --> 00:24:58,159
paying off an existing debt payment and that comes out this year, maybe 27.

583
00:24:58,159 --> 00:25:00,799
So, going forward, that that should

584
00:25:00,799 --> 00:25:02,159
change and we'll have we'll have new

585
00:25:02,159 --> 00:25:03,760
loans, but it should it should line up

586
00:25:03,760 --> 00:25:07,840
better with with the revenues.

587
00:25:07,840 --> 00:25:11,120
>> Okay. We just had um a loan that had to

588
00:25:11,120 --> 00:25:14,240
be paid off by some mag money that is

589
00:25:14,240 --> 00:25:16,400
just taking some time. But we did we

590
00:25:16,400 --> 00:25:18,000
received the mag money. So it's just fun

591
00:25:18,000 --> 00:25:20,480
balance that's paying that or just a

592
00:25:20,480 --> 00:25:22,320
reserve

593
00:25:22,320 --> 00:25:23,600
from that revenue that was received

594
00:25:23,600 --> 00:25:25,200
that's still just paying off of them.

595
00:25:25,200 --> 00:25:27,520
>> Okay, that makes sense.

596
00:25:27,520 --> 00:25:29,360
>> When you have so many different sources

597
00:25:29,360 --> 00:25:31,679
of revenue from different agencies, the

598
00:25:31,679 --> 00:25:33,120
accounting of that gets pretty

599
00:25:33,120 --> 00:25:36,240
complicated. And I I really appreciate

600
00:25:36,240 --> 00:25:38,320
Jimmy and our finance team that that

601
00:25:38,320 --> 00:25:44,960
keeps it all straight. So literally it it is a mess when you're paying off

602
00:25:44,960 --> 00:25:47,039
different loans and at different times

603
00:25:47,039 --> 00:25:49,840
and and floating cash and and those sort

604
00:25:49,840 --> 00:25:51,919
of things. So um but to answer your

605
00:25:51,919 --> 00:25:54,159
question as far as the funding for the

606
00:25:54,159 --> 00:25:59,600
terminal um we are under construction or nearly under construction of phases

607
00:25:59,600 --> 00:26:02,960
two and three. So, um that that it

608
00:26:02,960 --> 00:26:06,320
builds the entire north side expansion.

609
00:26:06,320 --> 00:26:09,360
That gives us potentially eight total

610
00:26:09,360 --> 00:26:13,760
gates. Um after that, also this summer,

611
00:26:13,760 --> 00:26:16,559
we're going to uh do some work in the

612
00:26:16,559 --> 00:26:18,559
parking lot to pave the parking lot,

613
00:26:18,559 --> 00:26:21,919
which is becoming increasingly important

614
00:26:21,919 --> 00:26:25,039
just based on on public input.

615
00:26:25,039 --> 00:26:26,559
Obviously, gravel is not a great

616
00:26:26,559 --> 00:26:29,120
situation. So, um, we're looking to pave

617
00:26:29,120 --> 00:26:31,840
the parking lot. That's about as far as

618
00:26:31,840 --> 00:26:34,720
the money takes us. And so, for the

619
00:26:34,720 --> 00:26:37,360
southside expansion, we still have the

620
00:26:37,360 --> 00:26:41,120
county bond um that was

621
00:26:41,120 --> 00:26:42,880
approved by the county commission and

622
00:26:42,880 --> 00:26:47,039
also by by this council. Um, we don't

623
00:26:47,039 --> 00:26:50,880
feel like that bond will get us the

624
00:26:50,880 --> 00:26:52,640
entire southside expansion, what we're

625
00:26:52,640 --> 00:26:55,200
calling phase four. And so we're working

626
00:26:55,200 --> 00:26:56,960
again, we've we've made application to

627
00:26:56,960 --> 00:27:01,039
the FAA for more um AIP dollars as well

628
00:27:01,039 --> 00:27:03,360
as we're working with Congressman

629
00:27:03,360 --> 00:27:05,600
Kennedy and Senator Curtis again for for

630
00:27:05,600 --> 00:27:07,520
additional

631
00:27:07,520 --> 00:27:11,200
and those earmarks are it used to be

632
00:27:11,200 --> 00:27:13,360
that that pot of money that's being used

633
00:27:13,360 --> 00:27:15,760
for earmarks came out as a competitive

634
00:27:15,760 --> 00:27:18,240
process through the FAA. That's no

635
00:27:18,240 --> 00:27:20,000
longer the case. It's all being done

636
00:27:20,000 --> 00:27:21,600
through what's called congressionally

637
00:27:21,600 --> 00:27:24,480
designated spending. And so if our if

638
00:27:24,480 --> 00:27:27,840
our federal partners don't ask for that

639
00:27:27,840 --> 00:27:30,240
money, it will go to another airport.

640
00:27:30,240 --> 00:27:32,240
It's not taking away from any other

641
00:27:32,240 --> 00:27:35,440
program other than airports. And so um

642
00:27:35,440 --> 00:27:39,760
fortunately, they've been really good to recognize that um and help us with

643
00:27:39,760 --> 00:27:42,960
some funding. So um worst case, we have

644
00:27:42,960 --> 00:27:44,559
to pump the brakes on the Southside

645
00:27:44,559 --> 00:27:46,559
expansion for a little bit just to let

646
00:27:46,559 --> 00:27:49,120
the funding uh picture catch up,

647
00:27:49,120 --> 00:27:51,279
>> but we're we're really close. We we

648
00:27:51,279 --> 00:27:54,399
think we're probably 10 million short of

649
00:27:54,399 --> 00:27:56,799
finishing all all of the expansion

650
00:27:56,799 --> 00:27:59,679
that's that's been envisioned. So

651
00:27:59,679 --> 00:28:00,640
>> sorry I just want to make sure I

652
00:28:00,640 --> 00:28:02,399
understand this last thing. So the thing

653
00:28:02,399 --> 00:28:03,360
you're talking about is that what's

654
00:28:03,360 --> 00:28:04,880
listed as chargebacks here?

655
00:28:04,880 --> 00:28:07,840
>> Other Okay. What are chargebacks?

656
00:28:07,840 --> 00:28:10,000
>> So chargebacks are what airport pays for

657
00:28:10,000 --> 00:28:12,399
other city services. So for finance.

658
00:28:12,399 --> 00:28:12,960
Okay.

659
00:28:12,960 --> 00:28:15,520
>> Um pay payroll and everything like that.

660
00:28:15,520 --> 00:28:18,320
>> So then and and these are is this

661
00:28:18,320 --> 00:28:20,720
budgeted or actuals? That's budgeted for

662
00:28:20,720 --> 00:28:21,600
the current.

663
00:28:21,600 --> 00:28:24,080
>> Are we on are we how are we on tracking

664
00:28:24,080 --> 00:28:25,520
relative to the budget?

665
00:28:25,520 --> 00:28:27,440
>> Great. As you know, as Brian mentioned,

666
00:28:27,440 --> 00:28:29,200
as long as things continue to go well

667
00:28:29,200 --> 00:28:30,880
for the next two and a half months.

668
00:28:30,880 --> 00:28:32,559
>> Okay.

669
00:28:32,559 --> 00:28:34,320
>> So, effectively, I I'm just trying to

670
00:28:34,320 --> 00:28:35,440
get like the big picture. So,

671
00:28:35,440 --> 00:28:37,440
effectively, we're operating just above

672
00:28:37,440 --> 00:28:39,919
break even.

673
00:28:39,919 --> 00:28:41,520
>> Yes.

674
00:28:41,520 --> 00:28:44,320
Something that's helping us a lot

675
00:28:44,320 --> 00:28:46,000
right now is we have a lot of cash in

676
00:28:46,000 --> 00:28:48,720
the bank um that's generating a lot of

677
00:28:48,720 --> 00:28:50,559
interest. So those will go towards

678
00:28:50,559 --> 00:28:52,080
paying off the project that we're

679
00:28:52,080 --> 00:28:53,520
building. But right now we're enjoying

680
00:28:53,520 --> 00:28:55,520
some some interest revenue off of that

681
00:28:55,520 --> 00:28:57,440
away as well that's helping us in a

682
00:28:57,440 --> 00:28:59,360
significant way that shows up in our

683
00:28:59,360 --> 00:29:01,760
operating count. But but really that's

684
00:29:01,760 --> 00:29:05,279
going back into the project. So um we're

685
00:29:05,279 --> 00:29:08,080
trending well. The revenues historically

686
00:29:08,080 --> 00:29:09,600
last two years have come in well above

687
00:29:09,600 --> 00:29:11,360
budget and we don't see that changing

688
00:29:11,360 --> 00:29:14,870
this year at all.

689
00:29:14,880 --> 00:29:16,399
The thing I'm trying to understand is so

690
00:29:16,399 --> 00:29:17,840
if we're operating on the existing

691
00:29:17,840 --> 00:29:19,679
footprint at basically break even and

692
00:29:19,679 --> 00:29:22,240
then we're doing uh it sounds like maybe

693
00:29:22,240 --> 00:29:23,360
there's a bit more revenue coming in

694
00:29:23,360 --> 00:29:25,120
once we do these hanger expansions but

695
00:29:25,120 --> 00:29:28,799
effectively full capacity is break even

696
00:29:28,799 --> 00:29:30,880
then we're going to do some expansions.

697
00:29:30,880 --> 00:29:32,640
My question is is like is there a shared

698
00:29:32,640 --> 00:29:34,240
overhead cost that basically will make

699
00:29:34,240 --> 00:29:38,000
the expansions net uh accretive to our

700
00:29:38,000 --> 00:29:39,600
revenue or is that also going to be

701
00:29:39,600 --> 00:29:41,039
basically be at break even once that

702
00:29:41,039 --> 00:29:42,159
gets to

703
00:29:42,159 --> 00:29:44,240
>> So do you get what I'm saying? Does that

704
00:29:44,240 --> 00:29:45,039
make sense?

705
00:29:45,039 --> 00:29:49,190
>> It does. Um

706
00:29:49,200 --> 00:29:52,480
so our money really comes we we make

707
00:29:52,480 --> 00:29:55,520
about $11.75

708
00:29:55,520 --> 00:29:58,480
per passenger. And so as passenger goes

709
00:29:58,480 --> 00:29:59,679
up, that revenue is going to come up.

710
00:29:59,679 --> 00:30:01,120
And the majority of it's parking

711
00:30:01,120 --> 00:30:03,440
revenue, right? Rental cars probably the

712
00:30:03,440 --> 00:30:06,960
next big one. Um and so all of those

713
00:30:06,960 --> 00:30:09,760
things as as capacity increases and

714
00:30:09,760 --> 00:30:12,000
those operations increase, then that

715
00:30:12,000 --> 00:30:14,720
revenue is going to come up, right? Um

716
00:30:14,720 --> 00:30:18,640
to to help accommodate the growth. Right

717
00:30:18,640 --> 00:30:20,640
now, from staffing perspective, we're

718
00:30:20,640 --> 00:30:22,799
sitting pretty good. Um, I think the

719
00:30:22,799 --> 00:30:25,120
next thing that you'll see us come and

720
00:30:25,120 --> 00:30:27,919
ask for is potentially another police

721
00:30:27,919 --> 00:30:30,240
officer to be stationed at the airport.

722
00:30:30,240 --> 00:30:31,679
But operationally, we're in a pretty

723
00:30:31,679 --> 00:30:33,600
good spot that even with the the

724
00:30:33,600 --> 00:30:35,600
expansion, our firefighters are already

725
00:30:35,600 --> 00:30:38,799
staffed to again, we we've got to go a

726
00:30:38,799 --> 00:30:40,320
long long way. In fact, I don't even

727
00:30:40,320 --> 00:30:44,000
think we would make the next um fire

728
00:30:44,000 --> 00:30:45,919
requirement. So, we're already set for

729
00:30:45,919 --> 00:30:46,960
fire. Okay.

730
00:30:46,960 --> 00:30:49,840
>> Um, police again I think is we we did an

731
00:30:49,840 --> 00:30:52,559
evaluation of the overtime cost for

732
00:30:52,559 --> 00:30:55,120
police um at least at the time when we

733
00:30:55,120 --> 00:30:56,799
looked at it was still less than another

734
00:30:56,799 --> 00:30:59,279
full-time employee. So, it didn't make

735
00:30:59,279 --> 00:31:02,159
sense to add another full-time officer

736
00:31:02,159 --> 00:31:04,880
yet. Um, but the way things are

737
00:31:04,880 --> 00:31:06,559
changing, we may have to come back mid

738
00:31:06,559 --> 00:31:08,000
year or something like that. We don't

739
00:31:08,000 --> 00:31:10,240
know. Um, but we wanted to hold off on

740
00:31:10,240 --> 00:31:14,559
that. Um, and so I I again with the

741
00:31:14,559 --> 00:31:16,640
increased passenger

742
00:31:16,640 --> 00:31:18,799
volume then our revenues are going to

743
00:31:18,799 --> 00:31:22,720
come in um to mirror that.

744
00:31:22,720 --> 00:31:24,480
>> Thank you,

745
00:31:24,480 --> 00:31:27,919
>> Councelor Bogden. All right, just to

746
00:31:27,919 --> 00:31:31,039
help catch Jeff up,

747
00:31:31,039 --> 00:31:33,440
the airport, how I understand it, wasn't

748
00:31:33,440 --> 00:31:36,640
always this good, right? Um, wasn't fire

749
00:31:36,640 --> 00:31:38,559
paying some of that overtime like three

750
00:31:38,559 --> 00:31:40,240
or four years ago?

751
00:31:40,240 --> 00:31:42,640
So, Jimmy, you'll have to remind me the

752
00:31:42,640 --> 00:31:45,200
budget year. So, I think this is the

753
00:31:45,200 --> 00:31:48,480
third budget year that we have been

754
00:31:48,480 --> 00:31:50,640
completely self-sufficient. Prior to

755
00:31:50,640 --> 00:31:53,679
that, the general fund was was putting

756
00:31:53,679 --> 00:31:57,840
in about $800,000 in subsidy to the

757
00:31:57,840 --> 00:31:59,679
operations of the airport. And part of

758
00:31:59,679 --> 00:32:02,480
that was fire, obviously. Um, and then

759
00:32:02,480 --> 00:32:04,960
again, I think it was three years ago,

760
00:32:04,960 --> 00:32:07,120
um, we went ahead and and put all of the

761
00:32:07,120 --> 00:32:09,360
public safety costs into the airport,

762
00:32:09,360 --> 00:32:11,440
all of those operating costs, eliminated

763
00:32:11,440 --> 00:32:13,600
the subsidy from the general fund to

764
00:32:13,600 --> 00:32:15,679
where we are operating as the FAA

765
00:32:15,679 --> 00:32:18,640
mandates that we are self-sufficient.

766
00:32:18,640 --> 00:32:20,640
Um there are some administrative

767
00:32:20,640 --> 00:32:25,200
chargebacks that that uh apparently I

768
00:32:25,200 --> 00:32:27,600
wasn't aware but but were not included

769
00:32:27,600 --> 00:32:29,919
in the airport's budget but we but are

770
00:32:29,919 --> 00:32:34,880
moving forward. Um so is legal finance

771
00:32:34,880 --> 00:32:36,480
all those char administrative

772
00:32:36,480 --> 00:32:38,240
chargebacks are all now in in the

773
00:32:38,240 --> 00:32:39,600
airport's budget

774
00:32:39,600 --> 00:32:41,919
>> other than that one loan that they will

775
00:32:41,919 --> 00:32:46,880
pay back this year is 2027 that's so

776
00:32:46,880 --> 00:32:48,399
this year

777
00:32:48,399 --> 00:32:50,080
This this year was this year will

778
00:32:50,080 --> 00:32:52,559
subsidize them for that loan. Next year

779
00:32:52,559 --> 00:32:55,760
they're they're on target to subsidi to

780
00:32:55,760 --> 00:33:01,200
just and the FAA requires them. It's if they make an excess of funds, it

781
00:33:01,200 --> 00:33:02,880
cannot come back to the general fund. It

782
00:33:02,880 --> 00:33:05,039
has to stay there the airport. And so

783
00:33:05,039 --> 00:33:08,559
Brian's been able to do some a few

784
00:33:08,559 --> 00:33:10,399
things in the last few years that he's

785
00:33:10,399 --> 00:33:12,480
never been able to do repairs on his

786
00:33:12,480 --> 00:33:14,960
airport before. Right. There was

787
00:33:14,960 --> 00:33:16,240
>> there's just a whole bunch of different

788
00:33:16,240 --> 00:33:19,919
stuff that he's done. So barely above

789
00:33:19,919 --> 00:33:21,519
break even is a lot better than us

790
00:33:21,519 --> 00:33:23,120
subsidizing airports.

791
00:33:23,120 --> 00:33:24,559
>> And we are government and we're not

792
00:33:24,559 --> 00:33:26,399
going to make a whole heck of a lot of

793
00:33:26,399 --> 00:33:28,320
money. That's not what we do.

794
00:33:28,320 --> 00:33:30,880
>> But we are

795
00:33:30,880 --> 00:33:32,960
>> break even is good for this.

796
00:33:32,960 --> 00:33:34,559
>> That's actually what the FAA requires,

797
00:33:34,559 --> 00:33:35,919
right? If you're making too much money,

798
00:33:35,919 --> 00:33:37,919
you're charging too much on your fees.

799
00:33:37,919 --> 00:33:39,840
Yeah. If you if you're being subsidized,

800
00:33:39,840 --> 00:33:43,519
you're not making enough. And so um so

801
00:33:43,519 --> 00:33:45,919
we're in a good spot.

802
00:33:45,919 --> 00:33:46,320
Okay,

803
00:33:46,320 --> 00:33:47,279
>> little more would be help.

804
00:33:47,279 --> 00:33:49,279
>> Councelor Christensen.

805
00:33:49,279 --> 00:33:51,919
>> So, uh, half a billion employments this

806
00:33:51,919 --> 00:33:56,399
year, uh, go to the full extended phase,

807
00:33:56,399 --> 00:33:58,320
uh, that we really maximize everything

808
00:33:58,320 --> 00:34:00,720
we can. What kind of employments do you

809
00:34:00,720 --> 00:34:03,039
project at full capacity?

810
00:34:03,039 --> 00:34:04,799
>> I think

811
00:34:04,799 --> 00:34:06,880
um, again,

812
00:34:06,880 --> 00:34:09,359
we're pretty close on five gates now.

813
00:34:09,359 --> 00:34:12,320
So, you're talking a million for sure.

814
00:34:12,320 --> 00:34:15,760
>> Yeah. Um but I think you you even get

815
00:34:15,760 --> 00:34:18,639
some some spread in schedule at that

816
00:34:18,639 --> 00:34:21,440
point to where I think we're close to a

817
00:34:21,440 --> 00:34:22,800
million and a half employments, three

818
00:34:22,800 --> 00:34:24,320
million total passengers.

819
00:34:24,320 --> 00:34:26,320
>> Yeah. And so I would think with that

820
00:34:26,320 --> 00:34:29,520
kind of marginal increment o over the

821
00:34:29,520 --> 00:34:31,679
fixed cost, I would think we're actually

822
00:34:31,679 --> 00:34:33,280
doing much better than just breaking

823
00:34:33,280 --> 00:34:34,560
even

824
00:34:34,560 --> 00:34:36,240
>> again at full capacity.

825
00:34:36,240 --> 00:34:36,560
>> Sure.

826
00:34:36,560 --> 00:34:38,240
>> Um and and you're right, the airport's

827
00:34:38,240 --> 00:34:39,919
not here to to make money. it's actually

828
00:34:39,919 --> 00:34:42,480
a public service. But in terms of its

829
00:34:42,480 --> 00:34:46,399
public funding and the success of this, is remarkable.

830
00:34:46,399 --> 00:34:48,320
>> Yeah. Especially based on where we've

831
00:34:48,320 --> 00:34:48,960
come from.

832
00:34:48,960 --> 00:34:50,720
>> So an important thing to remember is

833
00:34:50,720 --> 00:34:54,639
airports are economic drivers, right? So

834
00:34:54,639 --> 00:34:57,359
>> you look at the economic impact.

835
00:34:57,359 --> 00:35:00,640
Now this is 18 months to 24 months old.

836
00:35:00,640 --> 00:35:06,800
It was it was $250 million annually that what's happening at the airport

837
00:35:06,800 --> 00:35:09,119
just on the commercial service alone is

838
00:35:09,119 --> 00:35:12,079
bringing into our region with with $3.5

839
00:35:12,079 --> 00:35:15,839
million direct tax generation. So um

840
00:35:15,839 --> 00:35:19,200
again we're unfortunately we can't dump

841
00:35:19,200 --> 00:35:21,119
all that revenue into other city

842
00:35:21,119 --> 00:35:24,880
services but we are um just as an

843
00:35:24,880 --> 00:35:26,400
economic driver.

844
00:35:26,400 --> 00:35:28,960
>> It's huge. Yeah. So,

845
00:35:28,960 --> 00:35:31,440
>> um I'm curious what when is is the

846
00:35:31,440 --> 00:35:34,079
Hawaii non-stop flight still?

847
00:35:34,079 --> 00:35:35,520
>> When is Hawaii

848
00:35:35,520 --> 00:35:37,040
>> and when is international? Like what are

849
00:35:37,040 --> 00:35:38,720
those two things? What are we thinking?

850
00:35:38,720 --> 00:35:43,200
>> Yeah. So, Hawaii is when David Neilman

851
00:35:43,200 --> 00:35:45,040
came and met with with mayor for the

852
00:35:45,040 --> 00:35:47,599
first time. Um that's still on his

853
00:35:47,599 --> 00:35:49,440
target, but it's not their priority.

854
00:35:49,440 --> 00:35:51,359
There's some certifications to get

855
00:35:51,359 --> 00:35:54,400
there. Um, it's a long flight from

856
00:35:54,400 --> 00:35:56,640
Provo, uh, which is why there aren't

857
00:35:56,640 --> 00:36:00,640
many doing it from Salt Lake direct. Um,

858
00:36:00,640 --> 00:36:03,760
the Airbus that Breeze flies can do it.

859
00:36:03,760 --> 00:36:07,200
Um, but they they have put that on the

860
00:36:07,200 --> 00:36:09,119
back seat as far as their priorities for

861
00:36:09,119 --> 00:36:11,839
certifications. They've they've brought

862
00:36:11,839 --> 00:36:14,480
international up in their priorities. In

863
00:36:14,480 --> 00:36:16,480
fact, they're starting to serve their

864
00:36:16,480 --> 00:36:20,000
first international markets out of

865
00:36:20,000 --> 00:36:22,880
I want to say I don't know which base um

866
00:36:22,880 --> 00:36:24,560
in the east coast. So, they are flying

867
00:36:24,560 --> 00:36:26,160
internationally. They would love to fly

868
00:36:26,160 --> 00:36:29,200
internationally out of Provo right now.

869
00:36:29,200 --> 00:36:33,359
Customs Border Patrol is quite a task.

870
00:36:33,359 --> 00:36:37,599
Um one for us to have international

871
00:36:37,599 --> 00:36:40,400
facilities, we have to cover the cost of

872
00:36:40,400 --> 00:36:43,040
that. So, as an airport that's not a

873
00:36:43,040 --> 00:36:45,920
port, like Salt Lake is a port, the

874
00:36:45,920 --> 00:36:47,839
airport's responsible for all of the

875
00:36:47,839 --> 00:36:49,680
operation costs of Customs Border

876
00:36:49,680 --> 00:36:52,720
Patrol. To clear a commercial aircraft

877
00:36:52,720 --> 00:36:55,359
in Provo, that's about five to six

878
00:36:55,359 --> 00:37:00,000
employees at minimum at 200,000. That's

879
00:37:00,000 --> 00:37:01,520
you're you're talking million and a half

880
00:37:01,520 --> 00:37:04,880
dollars. Um, how many international

881
00:37:04,880 --> 00:37:06,480
flights does it take to make that

882
00:37:06,480 --> 00:37:08,720
pencil, right? And so there's some

883
00:37:08,720 --> 00:37:10,800
economics related to that that make it

884
00:37:10,800 --> 00:37:13,760
difficult. But fortunately, we have we

885
00:37:13,760 --> 00:37:16,320
also have a corporate demand for

886
00:37:16,320 --> 00:37:18,240
international that we're working to

887
00:37:18,240 --> 00:37:20,720
hopefully make happen first. But across

888
00:37:20,720 --> 00:37:23,280
the board, CBP is in high demand with

889
00:37:23,280 --> 00:37:24,880
what's happening nationally at the

890
00:37:24,880 --> 00:37:28,320
borders and everything else. And so um

891
00:37:28,320 --> 00:37:30,079
it's going to be an uphill battle to get

892
00:37:30,079 --> 00:37:32,640
customs in Provo. We're building the

893
00:37:32,640 --> 00:37:35,119
terminal to accommodate at least the the

894
00:37:35,119 --> 00:37:37,599
shell space to accommodate an FIS or a

895
00:37:37,599 --> 00:37:40,480
federal inspection station. Um but we're

896
00:37:40,480 --> 00:37:43,359
not planning on finishing it out until

897
00:37:43,359 --> 00:37:46,320
we have um all of the international

898
00:37:46,320 --> 00:37:49,200
stuff in line. Um it's coming. It's just

899
00:37:49,200 --> 00:37:51,680
not happening maybe as immediately as we

900
00:37:51,680 --> 00:37:55,040
thought just because of the national

901
00:37:55,040 --> 00:37:58,880
landscape and and just the cost frankly.

902
00:37:58,880 --> 00:38:00,320
>> Okay. Thank you for that update.

903
00:38:00,320 --> 00:38:02,560
Anything else? We are over time.

904
00:38:02,560 --> 00:38:03,440
>> Oh, nice work.

905
00:38:03,440 --> 00:38:04,640
>> All right. Thanks so much, Brian.

906
00:38:04,640 --> 00:38:07,599
>> Much.

907
00:38:07,599 --> 00:38:11,359
>> All right. Um, next, a presentation

908
00:38:11,359 --> 00:38:14,079
regarding the 2027 budget for power

909
00:38:14,079 --> 00:38:15,599
presented by Charlie Little, our

910
00:38:15,599 --> 00:38:16,960
management analyst.

911
00:38:16,960 --> 00:38:19,359
>> And then Tan Smallcom, our interimm

912
00:38:19,359 --> 00:38:21,839
director.

913
00:38:21,839 --> 00:38:23,839
>> We tag chain.

914
00:38:23,839 --> 00:38:25,440
>> That's right.

915
00:38:25,440 --> 00:38:27,599
Like she said, I'm Tad Small. I'm the

916
00:38:27,599 --> 00:38:29,680
interim director of energy, also the

917
00:38:29,680 --> 00:38:32,800
full-time systems operations manager.

918
00:38:32,800 --> 00:38:34,480
Uh, and I'll be presenting the budget

919
00:38:34,480 --> 00:38:36,640
drivers for energy. And I'll turn the

920
00:38:36,640 --> 00:38:38,240
time over to Charlie Little, who's our

921
00:38:38,240 --> 00:38:40,000
business manager, who will be presenting

922
00:38:40,000 --> 00:38:42,480
the budget financials. And I'd like to

923
00:38:42,480 --> 00:38:45,440
thank uh Becky Hunt, our PIO and key

924
00:38:45,440 --> 00:38:48,079
accounts manager, and Jenna Lee, our

925
00:38:48,079 --> 00:38:49,920
executive office assistant, who will be

926
00:38:49,920 --> 00:38:54,550
helping us with the entertainment.

927
00:38:54,560 --> 00:38:59,670
Now let's look at it.

928
00:38:59,680 --> 00:39:02,960
All right. Why do we need money? We need

929
00:39:02,960 --> 00:39:04,960
money to be the most reliable provider

930
00:39:04,960 --> 00:39:07,680
of power in the country while providing

931
00:39:07,680 --> 00:39:10,640
a safe environment for employees and to

932
00:39:10,640 --> 00:39:13,119
be proactive stewards of the environment

933
00:39:13,119 --> 00:39:14,480
while maintaining our fiscal

934
00:39:14,480 --> 00:39:16,560
responsibility to the citizens of

935
00:39:16,560 --> 00:39:20,790
Pville.

936
00:39:20,800 --> 00:39:23,599
General budget questions. Basically, no.

937
00:39:23,599 --> 00:39:26,640
The only thing that we are pointing out

938
00:39:26,640 --> 00:39:29,680
is that we're re recommending some fee

939
00:39:29,680 --> 00:39:32,400
and rate increases to align with the

940
00:39:32,400 --> 00:39:38,000
costs of those fees and cost of service.

941
00:39:38,000 --> 00:39:40,720
Uh how do we measure uh how we're doing

942
00:39:40,720 --> 00:39:44,160
on the goals that you presented? Well,

943
00:39:44,160 --> 00:39:46,560
how safe are we? Well, this this fiscal

944
00:39:46,560 --> 00:39:49,440
year haven't had injuries or vehicle

945
00:39:49,440 --> 00:39:52,240
accidents, which is obviously wonderful.

946
00:39:52,240 --> 00:39:54,079
Um,

947
00:39:54,079 --> 00:39:56,400
a little bit on the fiscally

948
00:39:56,400 --> 00:39:58,640
responsible. Clearly, that will be

949
00:39:58,640 --> 00:40:00,640
covered a lot in what Charlie presents.

950
00:40:00,640 --> 00:40:02,400
But today's cash on hand, we're shooting

951
00:40:02,400 --> 00:40:06,320
for 180. We have 189. You can, and which

952
00:40:06,320 --> 00:40:08,000
represents our rate stabilization fund,

953
00:40:08,000 --> 00:40:10,480
which is healthy, and our fund balance

954
00:40:10,480 --> 00:40:12,720
currently healthy. And uh, everything

955
00:40:12,720 --> 00:40:14,480
looks good there.

956
00:40:14,480 --> 00:40:16,160
um

957
00:40:16,160 --> 00:40:18,320
provide citizens with sustainable. So we

958
00:40:18,320 --> 00:40:20,480
talked about sustainability. Um we have

959
00:40:20,480 --> 00:40:23,760
a green exchange, rooftop solar, shared

960
00:40:23,760 --> 00:40:26,000
solar, uh new trees. Hopefully you're

961
00:40:26,000 --> 00:40:27,440
all familiar with those programs that

962
00:40:27,440 --> 00:40:30,560
Provo offers. Uh Becky runs a lot a lot

963
00:40:30,560 --> 00:40:33,040
of those. She's with us here today. And

964
00:40:33,040 --> 00:40:36,000
finally, the reliable the reliability

965
00:40:36,000 --> 00:40:39,839
measurements are down at the bottom. Um

966
00:40:39,839 --> 00:40:43,440
you see at on Sadi that's the outer

967
00:40:43,440 --> 00:40:46,079
minutes average per customer in Provo.

968
00:40:46,079 --> 00:40:50,960
Uh we experienced two uh that was the

969
00:40:50,960 --> 00:40:53,680
most recent and uh the national average

970
00:40:53,680 --> 00:40:56,560
is closer to 12th puts us in about the

971
00:40:56,560 --> 00:40:59,680
20 25th we're in the 75th percentile. Uh

972
00:40:59,680 --> 00:41:03,280
so we're up towards the top. We're not at the top which is our goal

973
00:41:03,280 --> 00:41:04,960
but we're working on it and we have

974
00:41:04,960 --> 00:41:08,000
we're spending more money to get there.

975
00:41:08,000 --> 00:41:12,079
uh and the other uh indices the outages

976
00:41:12,079 --> 00:41:13,760
per customer. You can see that the

977
00:41:13,760 --> 00:41:16,240
numbers are extremely favorable and

978
00:41:16,240 --> 00:41:18,079
healthy and indicate that we're having

979
00:41:18,079 --> 00:41:22,480
success as an energy department. Um

980
00:41:22,480 --> 00:41:24,160
some of the some of the main

981
00:41:24,160 --> 00:41:26,560
accomplishments uh we're building

982
00:41:26,560 --> 00:41:30,319
rebuilding the Gillespie substation

983
00:41:30,319 --> 00:41:32,079
uh and that's that's undergoing and

984
00:41:32,079 --> 00:41:34,880
we've started the Draper substation. Um,

985
00:41:34,880 --> 00:41:37,680
we've overhauled our our PO PO tracking

986
00:41:37,680 --> 00:41:41,040
procedures to tie Cayanta with uh our

987
00:41:41,040 --> 00:41:44,720
Millsoft uh software and that's

988
00:41:44,720 --> 00:41:47,200
completed. And then we have a new

989
00:41:47,200 --> 00:41:50,240
five-year strategic plan uh that we've

990
00:41:50,240 --> 00:41:52,319
got with the ontracking software now.

991
00:41:52,319 --> 00:41:54,720
So, it comes up every month whether you

992
00:41:54,720 --> 00:41:57,200
remember it or not. And and Charlie's

993
00:41:57,200 --> 00:41:59,839
been running that for us uh this last

994
00:41:59,839 --> 00:42:02,400
year.

995
00:42:02,400 --> 00:42:05,280
We've spent over $70 million in capital

996
00:42:05,280 --> 00:42:09,119
projects over the last 10 years

997
00:42:09,119 --> 00:42:10,800
and those are that's necessary to keep

998
00:42:10,800 --> 00:42:14,319
our system healthy. Um we what we do is

999
00:42:14,319 --> 00:42:16,480
a five-year budget. So we look at the

1000
00:42:16,480 --> 00:42:17,920
plans five years out. I can tell you the

1001
00:42:17,920 --> 00:42:20,079
Gillespie sub because of the difficulty

1002
00:42:20,079 --> 00:42:21,680
in getting equipment used to take less

1003
00:42:21,680 --> 00:42:24,079
than a year to do all that. I ordered

1004
00:42:24,079 --> 00:42:25,599
the transformers for that project in

1005
00:42:25,599 --> 00:42:28,319
2022. Uh some of my grandkids weren't

1006
00:42:28,319 --> 00:42:30,640
born yet. Um,

1007
00:42:30,640 --> 00:42:32,480
>> and so, right, it's it's a it's

1008
00:42:32,480 --> 00:42:34,160
extended. It's made a much more

1009
00:42:34,160 --> 00:42:37,520
challenging uh planning, but uh it's

1010
00:42:37,520 --> 00:42:39,200
under it's underway. If you want to get

1011
00:42:39,200 --> 00:42:41,440
up to the north of Canyon Road there,

1012
00:42:41,440 --> 00:42:42,960
it's it's a beautiful site. It's a lot

1013
00:42:42,960 --> 00:42:44,480
of dirt with a couple of transformers

1014
00:42:44,480 --> 00:42:46,560
and some concrete, but uh it's going to

1015
00:42:46,560 --> 00:42:49,680
be even more beautiful um by the end of

1016
00:42:49,680 --> 00:42:50,160
the year.

1017
00:42:50,160 --> 00:42:53,119
>> That energy pen called beautiful.

1018
00:42:53,119 --> 00:42:56,000
>> Well, when I drive my kids around

1019
00:42:56,000 --> 00:42:59,119
Oh, look at that. Right. Okay.

1020
00:42:59,119 --> 00:43:01,359
And then just to go over the Gillespie

1021
00:43:01,359 --> 00:43:03,280
project, you can see where it is. It's

1022
00:43:03,280 --> 00:43:06,720
up at the north end of Canyon Road.

1023
00:43:06,720 --> 00:43:10,319
Yeah, more fun on TV. Uh but basically

1024
00:43:10,319 --> 00:43:12,800
it included in increasing the capacity.

1025
00:43:12,800 --> 00:43:16,480
So we replaced two for 1964, which is

1026
00:43:16,480 --> 00:43:18,079
actually older than some of you, not

1027
00:43:18,079 --> 00:43:20,560
just my grandkids. It's not it's not as

1028
00:43:20,560 --> 00:43:25,040
it's actually my age, but um that's pretty old for transformers.

1029
00:43:25,040 --> 00:43:27,520
We're replacing the 235 MBA transformers

1030
00:43:27,520 --> 00:43:30,560
up there with 270s. So, we've

1031
00:43:30,560 --> 00:43:35,839
drastically increased the capacity and they're expected to live 30 to 50

1032
00:43:35,839 --> 00:43:37,440
years, but we have a good substation

1033
00:43:37,440 --> 00:43:40,560
team who who protects it, right? And so,

1034
00:43:40,560 --> 00:43:42,000
all of this contributes to the

1035
00:43:42,000 --> 00:43:45,200
reliability of supplying power to Provo.

1036
00:43:45,200 --> 00:43:47,200
Uh, and then we also put a distribution

1037
00:43:47,200 --> 00:43:48,400
transformer up there that we didn't have

1038
00:43:48,400 --> 00:43:51,760
before, 138 to 12 KB to help service the

1039
00:43:51,760 --> 00:43:53,839
loads up here because you can see we got

1040
00:43:53,839 --> 00:43:56,319
one transformer on this side of town.

1041
00:43:56,319 --> 00:43:58,319
When we have to take one substation,

1042
00:43:58,319 --> 00:44:02,160
when that substation goes down, it's pretty challenging. We can do it,

1043
00:44:02,160 --> 00:44:03,760
but it's very challenging to try to get

1044
00:44:03,760 --> 00:44:05,760
the power up. So, we've built we've

1045
00:44:05,760 --> 00:44:07,599
added a transformer here, distribution.

1046
00:44:07,599 --> 00:44:09,760
Sorry about the arrow

1047
00:44:09,760 --> 00:44:13,119
to come to help fill that in back down

1048
00:44:13,119 --> 00:44:16,000
south. All right,

1049
00:44:16,000 --> 00:44:16,640
>> quick question.

1050
00:44:16,640 --> 00:44:17,520
>> Yeah.

1051
00:44:17,520 --> 00:44:18,240
>> So, sorry.

1052
00:44:18,240 --> 00:44:19,680
>> Um, this

1053
00:44:19,680 --> 00:44:22,400
>> did you work with parks on the GPS

1054
00:44:22,400 --> 00:44:23,599
substation

1055
00:44:23,599 --> 00:44:24,960
>> because in their presentation they

1056
00:44:24,960 --> 00:44:27,119
mentioned excavating and grading for

1057
00:44:27,119 --> 00:44:28,319
that substation?

1058
00:44:28,319 --> 00:44:28,720
>> Yes.

1059
00:44:28,720 --> 00:44:30,319
>> So, how did that partnership work?

1060
00:44:30,319 --> 00:44:32,560
>> Yeah, park parks was fantastic for us.

1061
00:44:32,560 --> 00:44:34,000
First, we went and talked to them before

1062
00:44:34,000 --> 00:44:36,720
the project and said, "Hey, we need if

1063
00:44:36,720 --> 00:44:37,760
you want to pull an arrow, you could,

1064
00:44:37,760 --> 00:44:39,680
but we need part of your parking lot on

1065
00:44:39,680 --> 00:44:41,680
the Indian trail head up there, Indian

1066
00:44:41,680 --> 00:44:43,359
Road trail head." and they said, "Sure,

1067
00:44:43,359 --> 00:44:44,800
you can have it." And then we extended

1068
00:44:44,800 --> 00:44:46,640
it. We extended it a little bit to the

1069
00:44:46,640 --> 00:44:48,640
north so they wouldn't lose too much

1070
00:44:48,640 --> 00:44:51,040
parking. And so, so they allowed us to

1071
00:44:51,040 --> 00:44:52,560
do that and worked with us on that. So,

1072
00:44:52,560 --> 00:44:54,960
that was great. And then we had a lot of

1073
00:44:54,960 --> 00:44:57,440
dirt to work with it to move. It's about

1074
00:44:57,440 --> 00:45:01,760
a mountain right right there. And so, we actually talked with public works and

1075
00:45:01,760 --> 00:45:03,920
parks and coordinated that because there

1076
00:45:03,920 --> 00:45:07,119
was other projects going on and parks

1077
00:45:07,119 --> 00:45:09,440
came in and moved the vast majority of

1078
00:45:09,440 --> 00:45:12,319
that dirt for us. And that was a

1079
00:45:12,319 --> 00:45:15,440
tremendous savings for for the city

1080
00:45:15,440 --> 00:45:16,960
because we would had to go out and pay

1081
00:45:16,960 --> 00:45:19,839
exorbitant prices to contractors

1082
00:45:19,839 --> 00:45:22,480
otherwise. So so it was a we work with

1083
00:45:22,480 --> 00:45:24,560
them. We work closely with them and they

1084
00:45:24,560 --> 00:45:26,880
were they were g they were the givers in

1085
00:45:26,880 --> 00:45:28,960
this project and we we really appreciate

1086
00:45:28,960 --> 00:45:32,950
it.

1087
00:45:32,960 --> 00:45:34,240
» All right. Now I'll turn the time over

1088
00:45:34,240 --> 00:45:37,040
to Charlie who will talk us out some

1089
00:45:37,040 --> 00:45:41,349
money.

1090
00:45:41,359 --> 00:45:44,640
Thank you. We'll go over revenues are um

1091
00:45:44,640 --> 00:45:46,400
projected revenues are expected

1092
00:45:46,400 --> 00:45:48,000
expenditures,

1093
00:45:48,000 --> 00:45:50,079
what that means for a surplus or deficit

1094
00:45:50,079 --> 00:45:52,240
for the department and then the rate

1095
00:45:52,240 --> 00:45:54,480
analysis to help prevent uh us running a

1096
00:45:54,480 --> 00:45:57,589
deficit.

1097
00:45:57,599 --> 00:46:00,640
uh based on growth over the past several

1098
00:46:00,640 --> 00:46:03,280
years and implementing the rate increase

1099
00:46:03,280 --> 00:46:05,040
that we are proposing in this budget

1100
00:46:05,040 --> 00:46:08,160
cycle, we anticipate having three and a

1101
00:46:08,160 --> 00:46:09,760
half million dollars more revenue this

1102
00:46:09,760 --> 00:46:13,359
year than last year. Um if you'll

1103
00:46:13,359 --> 00:46:15,280
remember last year we had some pretty

1104
00:46:15,280 --> 00:46:17,839
big cost drivers hit us that

1105
00:46:17,839 --> 00:46:20,000
necessitated a rate increase. Rather

1106
00:46:20,000 --> 00:46:22,560
than do a big rate increase in one year,

1107
00:46:22,560 --> 00:46:24,319
we decided to split it out over two

1108
00:46:24,319 --> 00:46:26,880
years to try to make up for those

1109
00:46:26,880 --> 00:46:30,480
increase increases in expenditures. Um,

1110
00:46:30,480 --> 00:46:32,319
so although that looks like a big

1111
00:46:32,319 --> 00:46:35,119
difference, it is making up for some

1112
00:46:35,119 --> 00:46:38,240
pretty hefty increases from last year.

1113
00:46:38,240 --> 00:46:41,040
Here you can see our revenues. Uh, the

1114
00:46:41,040 --> 00:46:42,800
vast majority come from commercial and

1115
00:46:42,800 --> 00:46:44,960
residential sales.

1116
00:46:44,960 --> 00:46:47,119
That 12% industrial service sales,

1117
00:46:47,119 --> 00:46:49,839
that's BYU, all by themselves. And then

1118
00:46:49,839 --> 00:46:51,839
other operating revenue, that is all of

1119
00:46:51,839 --> 00:46:53,680
our fees

1120
00:46:53,680 --> 00:46:55,839
uh that we collect, our interest income,

1121
00:46:55,839 --> 00:46:57,599
things like that that uh go toward our

1122
00:46:57,599 --> 00:46:59,760
bottom line. But our main drivers are

1123
00:46:59,760 --> 00:47:02,640
our residential and commercial sales.

1124
00:47:02,640 --> 00:47:05,520
Next, it's time for your favorite time

1125
00:47:05,520 --> 00:47:07,760
of the year

1126
00:47:07,760 --> 00:47:09,040
where we show you how

1127
00:47:09,040 --> 00:47:11,200
>> we love

1128
00:47:11,200 --> 00:47:13,760
where we show you how our uh expenses

1129
00:47:13,760 --> 00:47:15,599
break down by category for the

1130
00:47:15,599 --> 00:47:16,800
department.

1131
00:47:16,800 --> 00:47:18,319
So

1132
00:47:18,319 --> 00:47:20,560
we have not submitted any supplemental

1133
00:47:20,560 --> 00:47:22,319
>> approve this to

1134
00:47:22,319 --> 00:47:24,960
>> they're trying to be more healthy health

1135
00:47:24,960 --> 00:47:26,720
conscious.

1136
00:47:26,720 --> 00:47:29,440
So

1137
00:47:29,440 --> 00:47:31,680
we are not submitting any supplemental

1138
00:47:31,680 --> 00:47:33,359
requests to increase our operating

1139
00:47:33,359 --> 00:47:36,240
revenue. We do anticipate growth

1140
00:47:36,240 --> 00:47:40,640
uh with raises and promotions uh for our

1141
00:47:40,640 --> 00:47:43,520
uh salary costs and also we haven't

1142
00:47:43,520 --> 00:47:45,040
received our final chargeback numbers

1143
00:47:45,040 --> 00:47:47,599
but we anticipate growth within our our

1144
00:47:47,599 --> 00:47:51,760
chargebacks. Um so we expect at least

1145
00:47:51,760 --> 00:47:53,440
$845,000

1146
00:47:53,440 --> 00:47:55,520
increase. Um

1147
00:47:55,520 --> 00:47:57,839
>> so the oranges represented

1148
00:47:57,839 --> 00:47:58,240
let's

1149
00:47:58,240 --> 00:47:58,960
>> go to here.

1150
00:47:58,960 --> 00:48:01,119
>> Okay. So the oranges represent what we

1151
00:48:01,119 --> 00:48:03,440
pay to UMPA, UMPA, our joint action

1152
00:48:03,440 --> 00:48:05,119
agency that we buy all of our power

1153
00:48:05,119 --> 00:48:07,680
through. They represent 65% of our

1154
00:48:07,680 --> 00:48:11,200
operating costs. We don't have control

1155
00:48:11,200 --> 00:48:12,880
over those rates. We don't have control

1156
00:48:12,880 --> 00:48:15,119
over that number, but we are really good

1157
00:48:15,119 --> 00:48:18,160
partners with UMPA and they try to give

1158
00:48:18,160 --> 00:48:19,440
us a heads up on stuff

1159
00:48:19,440 --> 00:48:21,040
>> because they eat almond joys. And then

1160
00:48:21,040 --> 00:48:24,640
14% the Almond Joys, those are our

1161
00:48:24,640 --> 00:48:28,319
personnel costs which account for 14% of

1162
00:48:28,319 --> 00:48:30,720
our overall operating budget. Over the

1163
00:48:30,720 --> 00:48:32,720
past several years, we've gone from over

1164
00:48:32,720 --> 00:48:35,200
100 employees down to 69. And that's

1165
00:48:35,200 --> 00:48:37,920
taking on free employees from parks as

1166
00:48:37,920 --> 00:48:41,359
part of our field cruise last year um

1167
00:48:41,359 --> 00:48:43,359
for our tree trimming. We take we took

1168
00:48:43,359 --> 00:48:45,040
over operating all the tree trimming

1169
00:48:45,040 --> 00:48:46,880
throughout the city. So we run a pretty

1170
00:48:46,880 --> 00:48:51,040
lean operation. We also have our 12 and

1171
00:48:51,040 --> 00:48:54,559
a half% transfer that accounts for about

1172
00:48:54,559 --> 00:48:59,520
12% of our expenditures and a 5% 5% of

1173
00:48:59,520 --> 00:49:01,920
our expenses. Where are you right now?

1174
00:49:01,920 --> 00:49:04,000
Are you at You're You're at the

1175
00:49:04,000 --> 00:49:07,280
transfer. Okay, good. We're at the

1176
00:49:07,280 --> 00:49:09,520
All right. Now, chargebacks account for

1177
00:49:09,520 --> 00:49:13,280
about 5% of our operating cost. Oranges

1178
00:49:13,280 --> 00:49:18,950
are tricky.

1179
00:49:18,960 --> 00:49:23,510
and

1180
00:49:23,520 --> 00:49:26,400
» it'll be fun. And then um

1181
00:49:26,400 --> 00:49:28,960
>> 2% uh that's the amount that we have

1182
00:49:28,960 --> 00:49:31,359
control over. That's 2% of our operating

1183
00:49:31,359 --> 00:49:33,920
is our operating costs. Uh what the

1184
00:49:33,920 --> 00:49:36,960
departments need to function and then 2%

1185
00:49:36,960 --> 00:49:41,760
is also our um bonding costs. So our

1186
00:49:41,760 --> 00:49:45,680
loan and the interest on top of that. So

1187
00:49:45,680 --> 00:49:51,910
you guys got that to work.

1188
00:49:51,920 --> 00:49:54,319
» We have kept our operating costs flat

1189
00:49:54,319 --> 00:49:59,589
this year. And um

1190
00:49:59,599 --> 00:50:01,599
one thing I also want to point out going

1191
00:50:01,599 --> 00:50:04,720
back to this, if you'll look right here

1192
00:50:04,720 --> 00:50:07,520
under expenses, our power costs, we kept

1193
00:50:07,520 --> 00:50:09,440
this flat from last year, but that is

1194
00:50:09,440 --> 00:50:12,559
not what UMPA gave us in their budget.

1195
00:50:12,559 --> 00:50:15,520
The market is currently changing for how

1196
00:50:15,520 --> 00:50:19,040
power sales are handled in our region.

1197
00:50:19,040 --> 00:50:21,280
It used to be that UNMPA could contract

1198
00:50:21,280 --> 00:50:24,480
a year ahead of time uh for the sales

1199
00:50:24,480 --> 00:50:25,599
that they were going to put off on the

1200
00:50:25,599 --> 00:50:27,040
market. Excess power that we're not

1201
00:50:27,040 --> 00:50:28,960
going to use in our little area that

1202
00:50:28,960 --> 00:50:31,520
they can sell to on the market. And

1203
00:50:31,520 --> 00:50:33,119
that's given us a good kickback at the

1204
00:50:33,119 --> 00:50:34,319
beginning of every year for the past

1205
00:50:34,319 --> 00:50:36,559
couple of years. Unfortunately, the way

1206
00:50:36,559 --> 00:50:39,520
the market works now is that there's no

1207
00:50:39,520 --> 00:50:41,920
long-term planning. Everything is

1208
00:50:41,920 --> 00:50:44,880
happening either day before, hour

1209
00:50:44,880 --> 00:50:47,760
before, 15 or five minutes before. It's

1210
00:50:47,760 --> 00:50:51,040
a very fast market and they have no

1211
00:50:51,040 --> 00:50:53,440
empirical data for what that's going to

1212
00:50:53,440 --> 00:50:56,400
look like. So, they decided not to

1213
00:50:56,400 --> 00:50:59,359
factor um market sales into their

1214
00:50:59,359 --> 00:51:01,599
budget, which made it look like our

1215
00:51:01,599 --> 00:51:04,640
budget was going to go up by 13 million.

1216
00:51:04,640 --> 00:51:06,240
We don't think that's the case. They are

1217
00:51:06,240 --> 00:51:08,480
going to be able to like sell off power.

1218
00:51:08,480 --> 00:51:09,920
They just don't know how much. And I

1219
00:51:09,920 --> 00:51:12,319
didn't want to build that into our rates

1220
00:51:12,319 --> 00:51:15,040
or build it into our projections because

1221
00:51:15,040 --> 00:51:18,079
it's artificially inflated and we'll

1222
00:51:18,079 --> 00:51:21,040
really need a year of data before we can

1223
00:51:21,040 --> 00:51:22,640
get back on track of building that back

1224
00:51:22,640 --> 00:51:25,440
into the UMPA budget. That those oranges

1225
00:51:25,440 --> 00:51:27,520
right there. If that were to go up 13

1226
00:51:27,520 --> 00:51:29,599
million, it would basically fill up the

1227
00:51:29,599 --> 00:51:32,000
entire base.

1228
00:51:32,000 --> 00:51:34,319
So, we're leaving that flat. We do have

1229
00:51:34,319 --> 00:51:37,119
our rate stabilization fund in case

1230
00:51:37,119 --> 00:51:39,200
somehow they don't sell any power. very

1231
00:51:39,200 --> 00:51:41,839
unlikely. Um we can dip into that to

1232
00:51:41,839 --> 00:51:44,800
prevent huge increases on our customers,

1233
00:51:44,800 --> 00:51:46,160
but that is something we're keeping in

1234
00:51:46,160 --> 00:51:49,920
mind and looking at this year.

1235
00:51:49,920 --> 00:51:52,640
So overall, we're looking at a $3.3

1236
00:51:52,640 --> 00:51:54,400
million budget surplus between our

1237
00:51:54,400 --> 00:51:57,280
estimated revenues and expenditures.

1238
00:51:57,280 --> 00:52:00,880
And that may seem like a lot, but

1239
00:52:00,880 --> 00:52:03,359
uh looking at last year, we only had a

1240
00:52:03,359 --> 00:52:05,920
projected 663,

1241
00:52:05,920 --> 00:52:08,480
which did not cover any much any of our

1242
00:52:08,480 --> 00:52:10,400
capital costs for this current year that

1243
00:52:10,400 --> 00:52:12,240
we're in. We're trying to make up for

1244
00:52:12,240 --> 00:52:14,319
that again over the two-year plan. We're

1245
00:52:14,319 --> 00:52:16,960
covering 2% revenue last year, well,

1246
00:52:16,960 --> 00:52:18,800
this current year and 2% revenue of next

1247
00:52:18,800 --> 00:52:20,079
year.

1248
00:52:20,079 --> 00:52:21,359
>> So, just so I'm Yes.

1249
00:52:21,359 --> 00:52:22,720
>> Just so I'm clear. So

1250
00:52:22,720 --> 00:52:23,440
>> Mhm.

1251
00:52:23,440 --> 00:52:24,880
>> this 3.3

1252
00:52:24,880 --> 00:52:25,599
>> Mhm.

1253
00:52:25,599 --> 00:52:27,200
>> this is the second year.

1254
00:52:27,200 --> 00:52:27,920
>> Yes.

1255
00:52:27,920 --> 00:52:30,640
>> So does that are we then even with I'm

1256
00:52:30,640 --> 00:52:33,280
not sure how much the the uh the hole in

1257
00:52:33,280 --> 00:52:34,720
the ground was that we're filling.

1258
00:52:34,720 --> 00:52:37,520
>> Yeah. So um UMKA raised our rates by

1259
00:52:37,520 --> 00:52:39,119
about four and a half% and then there

1260
00:52:39,119 --> 00:52:40,640
was the increase to the general fund

1261
00:52:40,640 --> 00:52:43,119
which basically uh increased our

1262
00:52:43,119 --> 00:52:46,400
expenses by about 4 million.

1263
00:52:46,400 --> 00:52:49,040
>> So rather than try to recoup all of that

1264
00:52:49,040 --> 00:52:50,559
4 million last year we're splitting it

1265
00:52:50,559 --> 00:52:52,319
out over two years. We recouped 2

1266
00:52:52,319 --> 00:52:54,559
million last year by a rate increase and

1267
00:52:54,559 --> 00:52:56,000
then about 2 million this year through a

1268
00:52:56,000 --> 00:52:57,040
rate increase.

1269
00:52:57,040 --> 00:52:57,760
>> Thank you.

1270
00:52:57,760 --> 00:53:00,240
>> Um

1271
00:53:00,240 --> 00:53:04,559
again about 12 and a half% goes back to

1272
00:53:04,559 --> 00:53:07,119
the general fund and our chargebacks

1273
00:53:07,119 --> 00:53:09,680
help pay for the other uh departments in

1274
00:53:09,680 --> 00:53:12,800
the city. And we're happy to do that

1275
00:53:12,800 --> 00:53:14,640
because the city does provide us some

1276
00:53:14,640 --> 00:53:17,440
really great services and it means that

1277
00:53:17,440 --> 00:53:19,599
we could keep our personnel costs low

1278
00:53:19,599 --> 00:53:21,359
because the city takes care of so much

1279
00:53:21,359 --> 00:53:23,359
of the administrative functioning of the

1280
00:53:23,359 --> 00:53:26,240
department. So

1281
00:53:26,240 --> 00:53:29,280
we're um happy to add that in. We do

1282
00:53:29,280 --> 00:53:32,640
have to factor it into the rates. So

1283
00:53:32,640 --> 00:53:35,599
what's the rate analysis?

1284
00:53:35,599 --> 00:53:37,520
Like I said, we're responding to rate

1285
00:53:37,520 --> 00:53:41,680
increases from last year. Um if you look

1286
00:53:41,680 --> 00:53:43,680
at this column, this is if we did not

1287
00:53:43,680 --> 00:53:45,440
raise rates this year, what we would be

1288
00:53:45,440 --> 00:53:48,400
looking like and this is if we do the

1289
00:53:48,400 --> 00:53:52,309
rate increase proposed.

1290
00:53:52,319 --> 00:53:54,160
In both columns, you'll see we have an

1291
00:53:54,160 --> 00:53:56,960
operating surplus, but based on our CIP

1292
00:53:56,960 --> 00:53:59,040
new budget spending that we budgeted

1293
00:53:59,040 --> 00:54:01,040
back in January,

1294
00:54:01,040 --> 00:54:03,599
we cannot cover those costs uh based on

1295
00:54:03,599 --> 00:54:05,599
our operating revenue if we do not raise

1296
00:54:05,599 --> 00:54:07,920
rates. And we are technically at

1297
00:54:07,920 --> 00:54:10,160
basically a break even of our capital

1298
00:54:10,160 --> 00:54:12,240
expenditures versus our operating

1299
00:54:12,240 --> 00:54:15,200
revenue if we do the rate increase.

1300
00:54:15,200 --> 00:54:16,800
So, how we've designed the rate

1301
00:54:16,800 --> 00:54:18,720
increase, most of the 2 million that was

1302
00:54:18,720 --> 00:54:21,760
recouped for this fiscal year came from

1303
00:54:21,760 --> 00:54:24,000
the residential class. And based on

1304
00:54:24,000 --> 00:54:25,680
feedback from the administration, we've

1305
00:54:25,680 --> 00:54:30,960
decided to recover most well all of the

1306
00:54:30,960 --> 00:54:33,280
um revenue increase from our commercial

1307
00:54:33,280 --> 00:54:36,319
and industrial classes in the next rate

1308
00:54:36,319 --> 00:54:38,319
plan. Oh, sorry. I got a little bit

1309
00:54:38,319 --> 00:54:42,559
ahead of myself. This is looking at um

1310
00:54:42,559 --> 00:54:44,720
this is the revenue projections I gave

1311
00:54:44,720 --> 00:54:47,920
to our bonding agencies.

1312
00:54:47,920 --> 00:54:51,760
Uh so this is based on our caffer.

1313
00:54:51,760 --> 00:54:53,599
Uh the history is based on our caffer

1314
00:54:53,599 --> 00:54:55,599
and then the revenue projections are

1315
00:54:55,599 --> 00:54:58,559
based off of that.

1316
00:54:58,559 --> 00:55:01,920
Because of the increases last year, we

1317
00:55:01,920 --> 00:55:05,440
still saw a $2 million shortfall, which

1318
00:55:05,440 --> 00:55:06,800
again we're going to try to make up in

1319
00:55:06,800 --> 00:55:09,839
the next fiscal year. So if we are

1320
00:55:09,839 --> 00:55:12,720
allowed to do our rate increase, we will

1321
00:55:12,720 --> 00:55:14,400
have a surplus and our our change in net

1322
00:55:14,400 --> 00:55:17,280
position. Um and we will continue if we

1323
00:55:17,280 --> 00:55:20,880
do moderate increases down the line, we

1324
00:55:20,880 --> 00:55:23,359
will continue to have a positive change

1325
00:55:23,359 --> 00:55:26,880
in net position. However,

1326
00:55:26,880 --> 00:55:29,119
if we do not do a rate increase this

1327
00:55:29,119 --> 00:55:32,240
year, we will have a negative change in

1328
00:55:32,240 --> 00:55:34,960
net position of about 1.2 million. And

1329
00:55:34,960 --> 00:55:37,119
then even if we did a 2% rate increase,

1330
00:55:37,119 --> 00:55:38,800
the three following years, we never

1331
00:55:38,800 --> 00:55:42,000
catch up. We stay in the red. So it is

1332
00:55:42,000 --> 00:55:43,440
imperative that we keep up with our

1333
00:55:43,440 --> 00:55:46,720
costs to make sure that we are operating

1334
00:55:46,720 --> 00:55:48,720
in a financially

1335
00:55:48,720 --> 00:55:51,119
responsible way.

1336
00:55:51,119 --> 00:55:51,839
>> Charlie,

1337
00:55:51,839 --> 00:55:52,640
>> yes.

1338
00:55:52,640 --> 00:55:54,559
>> So we're assuming that we'll need to do

1339
00:55:54,559 --> 00:55:57,040
a 2% increase in the next three

1340
00:55:57,040 --> 00:55:58,480
subsequent years.

1341
00:55:58,480 --> 00:56:01,119
>> If costs continue to increase as we're

1342
00:56:01,119 --> 00:56:03,680
seeing them, we will. We I will reassess

1343
00:56:03,680 --> 00:56:05,920
every year just to make sure I'm not

1344
00:56:05,920 --> 00:56:09,200
doing them just to do them. Um but it is

1345
00:56:09,200 --> 00:56:12,799
possible. We've had I'll show a graph

1346
00:56:12,799 --> 00:56:15,200
later, but basically since co all of our

1347
00:56:15,200 --> 00:56:19,040
costs are going insane. Um but we're

1348
00:56:19,040 --> 00:56:21,680
really hoping we won't have to have

1349
00:56:21,680 --> 00:56:24,960
yearover-year 2% increases, but based on

1350
00:56:24,960 --> 00:56:27,359
current projections, it might happen.

1351
00:56:27,359 --> 00:56:30,160
Would you anticipate that to be

1352
00:56:30,160 --> 00:56:33,520
distributed evenly for all customers or

1353
00:56:33,520 --> 00:56:35,520
like this year focus on one class of

1354
00:56:35,520 --> 00:56:36,720
customers?

1355
00:56:36,720 --> 00:56:39,119
>> Um, it depends on the results of our

1356
00:56:39,119 --> 00:56:40,640
cost of service study I'll be doing with

1357
00:56:40,640 --> 00:56:42,799
Dave Berg. He's our consultant works

1358
00:56:42,799 --> 00:56:45,520
with PA. Um, we'll be having our first

1359
00:56:45,520 --> 00:56:48,400
meeting this week and he'll let us know

1360
00:56:48,400 --> 00:56:51,200
between the classes, are we charging one

1361
00:56:51,200 --> 00:56:54,880
class unfairly versus another class? and

1362
00:56:54,880 --> 00:56:56,880
I would design future rate changes or

1363
00:56:56,880 --> 00:57:00,720
rate increases based on that analysis.

1364
00:57:00,720 --> 00:57:03,119
Um,

1365
00:57:03,119 --> 00:57:05,280
overall I like to spread things out

1366
00:57:05,280 --> 00:57:07,280
evenly among the customer classes just

1367
00:57:07,280 --> 00:57:09,280
so that we're not hitting one super hard

1368
00:57:09,280 --> 00:57:12,160
if we don't have to. Um, but again,

1369
00:57:12,160 --> 00:57:13,520
it'll it'll be based on his

1370
00:57:13,520 --> 00:57:15,040
recommendations of the cost of service

1371
00:57:15,040 --> 00:57:15,920
study.

1372
00:57:15,920 --> 00:57:19,990
>> Thank you.

1373
00:57:20,000 --> 00:57:23,280
» So this these are our proposed rate

1374
00:57:23,280 --> 00:57:24,960
increases.

1375
00:57:24,960 --> 00:57:27,520
there no change to the residential

1376
00:57:27,520 --> 00:57:30,880
class. Uh small commercial, I'm

1377
00:57:30,880 --> 00:57:33,520
proposing a 4% rate increase. You can

1378
00:57:33,520 --> 00:57:35,359
see the average. So based on our average

1379
00:57:35,359 --> 00:57:38,000
small commercial usage, that looks like

1380
00:57:38,000 --> 00:57:41,200
an increase of about $20 per month.

1381
00:57:41,200 --> 00:57:43,040
For large commercial, we have about 20

1382
00:57:43,040 --> 00:57:46,559
of these customers. These are the IHC's

1383
00:57:46,559 --> 00:57:48,799
of the world, the Mega Diamonds. These

1384
00:57:48,799 --> 00:57:51,200
are our very large customers you would

1385
00:57:51,200 --> 00:57:53,280
think are industrial, but they don't own

1386
00:57:53,280 --> 00:57:55,520
their own substations, so they are not.

1387
00:57:55,520 --> 00:57:58,640
Um, we anticipate their average bills

1388
00:57:58,640 --> 00:58:00,720
going up by about 1,700 per month, and

1389
00:58:00,720 --> 00:58:04,160
that's a 7% increase. Industrial, this

1390
00:58:04,160 --> 00:58:07,680
is just BYU. They have been given heads

1391
00:58:07,680 --> 00:58:09,599
up from multiple

1392
00:58:09,599 --> 00:58:11,760
areas that this is coming down the pike,

1393
00:58:11,760 --> 00:58:14,960
but we are proposing a 10% increase on

1394
00:58:14,960 --> 00:58:17,359
BYU, which would increase their monthly

1395
00:58:17,359 --> 00:58:19,680
bill by about 71,000.

1396
00:58:19,680 --> 00:58:22,079
And now, I know this seems like a lot

1397
00:58:22,079 --> 00:58:23,040
perspective,

1398
00:58:23,040 --> 00:58:26,960
>> but then I'm going to show you how we

1399
00:58:26,960 --> 00:58:31,200
compare to other uh cities and how we

1400
00:58:31,200 --> 00:58:33,040
compare historically. So that bottom

1401
00:58:33,040 --> 00:58:34,400
yellow line, these are our rate

1402
00:58:34,400 --> 00:58:37,520
increases over the past 20 years. Prior

1403
00:58:37,520 --> 00:58:40,319
to 2011, we had a decadesl long policy

1404
00:58:40,319 --> 00:58:43,119
of neverinccreasing rates. And this put

1405
00:58:43,119 --> 00:58:46,480
us in a really dire financial situation

1406
00:58:46,480 --> 00:58:49,760
when the market crashed in 2008.

1407
00:58:49,760 --> 00:58:52,799
We were depleting our fund balance at an

1408
00:58:52,799 --> 00:58:56,079
unsustainable rate. So we had to do a

1409
00:58:56,079 --> 00:58:59,119
huge nearly 20% jump within one year. We

1410
00:58:59,119 --> 00:59:00,400
never want to find ourselves in that

1411
00:59:00,400 --> 00:59:01,839
position again. it's a shock to the

1412
00:59:01,839 --> 00:59:03,839
customers and we don't want to bring the

1413
00:59:03,839 --> 00:59:05,920
pitchforks.

1414
00:59:05,920 --> 00:59:08,880
So they did moderate increases after

1415
00:59:08,880 --> 00:59:11,280
that to 2016 and then based on a cost of

1416
00:59:11,280 --> 00:59:13,440
service study we did a rate

1417
00:59:13,440 --> 00:59:15,440
restructuring with no revenue increases

1418
00:59:15,440 --> 00:59:17,920
over the next several years and that was

1419
00:59:17,920 --> 00:59:21,200
just shifting how the rates were

1420
00:59:21,200 --> 00:59:23,200
designed but it didn't actually increase

1421
00:59:23,200 --> 00:59:27,359
our revenue. Then uh COVID happens and

1422
00:59:27,359 --> 00:59:28,559
suddenly everything is much more

1423
00:59:28,559 --> 00:59:31,760
expensive and our restructuring is not

1424
00:59:31,760 --> 00:59:34,240
sufficient. So we institute policy back

1425
00:59:34,240 --> 00:59:36,480
in 2022

1426
00:59:36,480 --> 00:59:38,240
to do moderate increases to make sure

1427
00:59:38,240 --> 00:59:41,119
we're keeping up with costs. But even

1428
00:59:41,119 --> 00:59:44,400
still in 2025 over the past 20 years our

1429
00:59:44,400 --> 00:59:47,359
rates have only gone up 30%.

1430
00:59:47,359 --> 00:59:49,520
uh this black middle line that's the

1431
00:59:49,520 --> 00:59:53,599
consumer price index has gone up 70%

1432
00:59:53,599 --> 00:59:56,240
and the top gray line that is that are

1433
00:59:56,240 --> 00:59:59,839
national power rates they've gone up by

1434
00:59:59,839 --> 01:00:01,920
110%.

1435
01:00:01,920 --> 01:00:06,720
So, we are well below market trends,

1436
01:00:06,720 --> 01:00:09,440
but inflation is real. Price increases

1437
01:00:09,440 --> 01:00:11,520
are real. It's not sustainable to have a

1438
01:00:11,520 --> 01:00:14,559
no rate increase policy.

1439
01:00:14,559 --> 01:00:16,079
Here is how we compare with our

1440
01:00:16,079 --> 01:00:18,480
residential customers through all of our

1441
01:00:18,480 --> 01:00:20,960
comparable cities. And this is Rocky

1442
01:00:20,960 --> 01:00:23,359
Mountain Power right here. Like I said,

1443
01:00:23,359 --> 01:00:24,880
no increases to the residential

1444
01:00:24,880 --> 01:00:27,839
customers. Uh we are the second cheapest

1445
01:00:27,839 --> 01:00:30,160
residential of all of our comparators,

1446
01:00:30,160 --> 01:00:32,480
which may be or use Rocky Mountain.

1447
01:00:32,480 --> 01:00:35,200
>> Or uses Rocky Mountain.

1448
01:00:35,200 --> 01:00:36,799
>> Um,

1449
01:00:36,799 --> 01:00:38,319
was there another question?

1450
01:00:38,319 --> 01:00:39,839
>> Say, whoops.

1451
01:00:39,839 --> 01:00:41,359
>> Yeah.

1452
01:00:41,359 --> 01:00:44,400
>> Um, this is actually the fact that we

1453
01:00:44,400 --> 01:00:46,079
are the second cheapest is an indicator

1454
01:00:46,079 --> 01:00:47,920
that we may be too conservative in our

1455
01:00:47,920 --> 01:00:49,760
rate increases. I don't want to use this

1456
01:00:49,760 --> 01:00:51,920
as like saying we need to pump up our

1457
01:00:51,920 --> 01:00:54,720
rates, but it might be an indicator that

1458
01:00:54,720 --> 01:00:57,920
we are lagging the market.

1459
01:00:57,920 --> 01:01:00,720
Next is our small commercial comparison.

1460
01:01:00,720 --> 01:01:02,799
Again, we used to be the cheapest. If we

1461
01:01:02,799 --> 01:01:05,040
do the rate increase, I am proposing Oh,

1462
01:01:05,040 --> 01:01:06,720
we would be the second cheapest.

1463
01:01:06,720 --> 01:01:09,440
>> I'm just going to say in the previous

1464
01:01:09,440 --> 01:01:11,839
slide, we're right between two of the

1465
01:01:11,839 --> 01:01:14,480
people that we still buy power from

1466
01:01:14,480 --> 01:01:14,880
with.

1467
01:01:14,880 --> 01:01:15,280
>> Yeah.

1468
01:01:15,280 --> 01:01:18,559
>> So, to me, it doesn't seem like we're

1469
01:01:18,559 --> 01:01:20,480
too conservative if everybody else who's

1470
01:01:20,480 --> 01:01:22,400
buying from AA is well, as low as we

1471
01:01:22,400 --> 01:01:24,160
are. It just shows that we're really

1472
01:01:24,160 --> 01:01:25,440
good with

1473
01:01:25,440 --> 01:01:27,839
>> anda's really good at doing what they

1474
01:01:27,839 --> 01:01:28,400
do.

1475
01:01:28,400 --> 01:01:29,760
>> Yes. Like

1476
01:01:29,760 --> 01:01:33,040
>> because if I saw Lean up here,

1477
01:01:33,040 --> 01:01:34,799
>> Nephi clear up here, but we're in

1478
01:01:34,799 --> 01:01:36,960
between Nephi and Spanish.

1479
01:01:36,960 --> 01:01:37,359
>> Yes.

1480
01:01:37,359 --> 01:01:39,920
>> And right here there's there's Nephi,

1481
01:01:39,920 --> 01:01:43,280
Lehi, Lean, St. George, all all

1482
01:01:43,280 --> 01:01:44,880
municipal power agencies, right?

1483
01:01:44,880 --> 01:01:48,559
Springville, Spanish, and we're all fun

1484
01:01:48,559 --> 01:01:50,960
together. And then there's Rocky

1485
01:01:50,960 --> 01:01:53,599
Mountain, this big commoder.

1486
01:01:53,599 --> 01:01:58,000
>> Exactly. We're much cheaper than the um

1487
01:01:58,000 --> 01:02:00,559
investorowned utility option in the

1488
01:02:00,559 --> 01:02:04,000
state and we are much cheaper than most

1489
01:02:04,000 --> 01:02:06,960
u cities because UMPA has been able to

1490
01:02:06,960 --> 01:02:09,680
do so well selling their power on the

1491
01:02:09,680 --> 01:02:14,559
market. Um, and we just put good vibes

1492
01:02:14,559 --> 01:02:15,839
out there that they can do that in this

1493
01:02:15,839 --> 01:02:19,680
new this new uh environment.

1494
01:02:19,680 --> 01:02:21,200
Uh,

1495
01:02:21,200 --> 01:02:23,520
again, uh, small commercial customers

1496
01:02:23,520 --> 01:02:24,960
with this rate increase, we would go

1497
01:02:24,960 --> 01:02:25,440
from

1498
01:02:25,440 --> 01:02:26,880
>> Yes, sir.

1499
01:02:26,880 --> 01:02:28,160
>> Just want to double click on what you

1500
01:02:28,160 --> 01:02:29,599
just said.

1501
01:02:29,599 --> 01:02:32,559
>> Um, it sounded to me like it's not like

1502
01:02:32,559 --> 01:02:34,079
there isn't demand, it's just

1503
01:02:34,079 --> 01:02:36,319
unpredictable and forecastable demand.

1504
01:02:36,319 --> 01:02:37,200
>> Yes. Exactly.

1505
01:02:37,200 --> 01:02:39,040
>> Right. So it's not a matter can we sell,

1506
01:02:39,040 --> 01:02:41,040
it's what margin can we sell it at.

1507
01:02:41,040 --> 01:02:42,240
>> Yes. Exactly.

1508
01:02:42,240 --> 01:02:42,640
>> Okay.

1509
01:02:42,640 --> 01:02:44,640
>> And so they know they will make market

1510
01:02:44,640 --> 01:02:48,160
sales, but they didn't want to put fake

1511
01:02:48,160 --> 01:02:51,280
no data backed projections into their

1512
01:02:51,280 --> 01:02:54,960
budget. And so I'm keeping us flat uh in

1513
01:02:54,960 --> 01:02:57,520
response to that as well. I'm sure that

1514
01:02:57,520 --> 01:03:01,520
they will be able to make market sales.

1515
01:03:01,520 --> 01:03:03,440
Okay. So our large commercial

1516
01:03:03,440 --> 01:03:05,359
comparison, we are in the bottom third

1517
01:03:05,359 --> 01:03:07,839
again by Spanish Fork and Nephi and

1518
01:03:07,839 --> 01:03:11,920
Salem. These are all UNMPA cities. Uh

1519
01:03:11,920 --> 01:03:14,640
our position does not change and it is a

1520
01:03:14,640 --> 01:03:18,319
significant jump up to our next highest

1521
01:03:18,319 --> 01:03:20,720
comparator bountiful for large

1522
01:03:20,720 --> 01:03:24,950
commercial rates

1523
01:03:24,960 --> 01:03:27,760
and industrial rates. We would go from

1524
01:03:27,760 --> 01:03:33,440
the cheapest to the second cheapest very close with Spanish Fork. And I will

1525
01:03:33,440 --> 01:03:36,880
say we currently charge BYU one penny

1526
01:03:36,880 --> 01:03:40,480
more per kilowatt hour than UMPA charges

1527
01:03:40,480 --> 01:03:43,359
us in the overall dollars per kilowatt

1528
01:03:43,359 --> 01:03:45,599
hour scheme of things. We're basically

1529
01:03:45,599 --> 01:03:48,319
providing them power at cost. They are

1530
01:03:48,319 --> 01:03:51,039
our biggest customer. We want to treat

1531
01:03:51,039 --> 01:03:52,640
them well, but they also need to cover

1532
01:03:52,640 --> 01:03:56,230
their cost of service.

1533
01:03:56,240 --> 01:03:58,960
Uh so that is our rate comparison and

1534
01:03:58,960 --> 01:04:02,240
then the final these are are the fees

1535
01:04:02,240 --> 01:04:06,240
that we anticipate increasing in our um

1536
01:04:06,240 --> 01:04:08,960
consolidated fee schedule. The biggest

1537
01:04:08,960 --> 01:04:11,520
jump is from our forestry department

1538
01:04:11,520 --> 01:04:14,400
with banner installation and removal. Uh

1539
01:04:14,400 --> 01:04:19,200
it's a threeperson crew. It takes

1540
01:04:19,200 --> 01:04:22,400
uh almost an hour to install, almost an

1541
01:04:22,400 --> 01:04:24,880
hour hour to remove, and we're not

1542
01:04:24,880 --> 01:04:27,119
charging. This is 250 still isn't even

1543
01:04:27,119 --> 01:04:30,960
at cost. Um but we do feel that it's

1544
01:04:30,960 --> 01:04:33,359
kept artificially low. If you don't want

1545
01:04:33,359 --> 01:04:35,119
us to increase it and continue to cover

1546
01:04:35,119 --> 01:04:38,079
the deficit, that's fine. But um one

1547
01:04:38,079 --> 01:04:40,160
thing we definitely are asking for an

1548
01:04:40,160 --> 01:04:42,480
increase is the Parkway Strip Tree fee.

1549
01:04:42,480 --> 01:04:44,880
I said it, I trip over it every time I

1550
01:04:44,880 --> 01:04:46,319
practice it.

1551
01:04:46,319 --> 01:04:51,359
um uh 255 doesn't even cover the costs

1552
01:04:51,359 --> 01:04:54,079
of the tree, let alone the cost of the

1553
01:04:54,079 --> 01:04:56,720
labor associated with planting the trees

1554
01:04:56,720 --> 01:04:58,880
um for the new developments.

1555
01:04:58,880 --> 01:05:01,920
So, uh I have a a cost breakdown if you

1556
01:05:01,920 --> 01:05:04,240
want to see it. Our forester Chaz did a

1557
01:05:04,240 --> 01:05:06,319
great job explaining why he's asking for

1558
01:05:06,319 --> 01:05:09,280
this uh increase, but we are proposing

1559
01:05:09,280 --> 01:05:12,559
$510 per tree. Those are the biggest

1560
01:05:12,559 --> 01:05:15,440
jumps um as far as our fees are

1561
01:05:15,440 --> 01:05:17,039
concerned.

1562
01:05:17,039 --> 01:05:18,640
Yes.

1563
01:05:18,640 --> 01:05:20,559
>> How often do we have banners installed

1564
01:05:20,559 --> 01:05:24,240
and what kind of banners are installed?

1565
01:05:24,240 --> 01:05:26,319
>> Um there are the big banners like across

1566
01:05:26,319 --> 01:05:27,280
500 West,

1567
01:05:27,280 --> 01:05:28,240
>> right?

1568
01:05:28,240 --> 01:05:30,400
>> I I think we do a couple a month. It

1569
01:05:30,400 --> 01:05:32,160
depends on how Oh, Jenna.

1570
01:05:32,160 --> 01:05:35,119
>> So I I banners.

1571
01:05:35,119 --> 01:05:38,470
>> Thank you, Jenn.

1572
01:05:38,480 --> 01:05:40,079
So, I handle the banners when they come

1573
01:05:40,079 --> 01:05:42,880
in and we do a few with BYU athletics

1574
01:05:42,880 --> 01:05:46,000
every year um in the fall. So, I think

1575
01:05:46,000 --> 01:05:48,000
it's one or two banners for all of

1576
01:05:48,000 --> 01:05:50,240
football season and they're great to

1577
01:05:50,240 --> 01:05:51,680
work with. They know what they're doing.

1578
01:05:51,680 --> 01:05:54,319
Um there's a but they don't pay a fee.

1579
01:05:54,319 --> 01:05:58,799
Thank you. Um, and then we have maybe

1580
01:05:58,799 --> 01:06:01,440
five others who choose to use banners

1581
01:06:01,440 --> 01:06:02,799
and that's scattered throughout the

1582
01:06:02,799 --> 01:06:04,400
year, but other than that, there aren't

1583
01:06:04,400 --> 01:06:06,319
really anyone using banners anymore.

1584
01:06:06,319 --> 01:06:08,240
>> So, you don't do the light pole banners

1585
01:06:08,240 --> 01:06:09,440
just across the street.

1586
01:06:09,440 --> 01:06:12,000
>> Correct.

1587
01:06:12,000 --> 01:06:13,440
>> Do they really

1588
01:06:13,440 --> 01:06:16,160
>> I mean, if we're not even covering cost

1589
01:06:16,160 --> 01:06:19,680
for those, I know there's not that many.

1590
01:06:19,680 --> 01:06:22,480
Why are we even still offering the

1591
01:06:22,480 --> 01:06:26,240
service? Is it even worth it?

1592
01:06:26,240 --> 01:06:30,000
That is maybe a a city decision, a

1593
01:06:30,000 --> 01:06:33,680
council decision. Um,

1594
01:06:33,680 --> 01:06:35,920
we we're happy to continue to provide

1595
01:06:35,920 --> 01:06:38,720
the service for the city. Um,

1596
01:06:38,720 --> 01:06:40,480
>> and we're happy to stop

1597
01:06:40,480 --> 01:06:41,920
>> to stop as well

1598
01:06:41,920 --> 01:06:44,000
>> if the city the city doesn't deem it

1599
01:06:44,000 --> 01:06:46,559
valuable anymore.

1600
01:06:46,559 --> 01:06:49,920
>> Yes. Um just dumb questions here like is

1601
01:06:49,920 --> 01:06:51,359
there a reason why power does that

1602
01:06:51,359 --> 01:06:53,280
because of like are you have to are you

1603
01:06:53,280 --> 01:06:54,480
the only people who do it safely?

1604
01:06:54,480 --> 01:06:55,920
>> It's because we have the bucket trucks.

1605
01:06:55,920 --> 01:06:56,160
Yeah.

1606
01:06:56,160 --> 01:06:57,119
>> Oh yeah you have the bucket trucks.

1607
01:06:57,119 --> 01:06:58,720
Okay. And similarly for the parkway

1608
01:06:58,720 --> 01:07:01,039
strip fee. Why are you all the one doing

1609
01:07:01,039 --> 01:07:01,520
that?

1610
01:07:01,520 --> 01:07:04,720
>> Because we oversee all forestry.

1611
01:07:04,720 --> 01:07:06,640
>> Okay. So forestry center.

1612
01:07:06,640 --> 01:07:08,480
>> Yeah.

1613
01:07:08,480 --> 01:07:10,559
>> If I could one one comment about the

1614
01:07:10,559 --> 01:07:13,599
banner installation. Those are not

1615
01:07:13,599 --> 01:07:15,440
um

1616
01:07:15,440 --> 01:07:17,839
el eligible just for anybody to put up a

1617
01:07:17,839 --> 01:07:19,119
banner and attend they want. It's

1618
01:07:19,119 --> 01:07:20,799
essentially we've reserved it for first

1619
01:07:20,799 --> 01:07:23,280
amendment reasons. We've reserved it for

1620
01:07:23,280 --> 01:07:26,400
community events. And so I guess you

1621
01:07:26,400 --> 01:07:28,000
could think of it as at least in the

1622
01:07:28,000 --> 01:07:30,240
past the idea has been these are events

1623
01:07:30,240 --> 01:07:32,720
that the city itself actually also wants

1624
01:07:32,720 --> 01:07:37,200
to foster awareness of. So, it's not

1625
01:07:37,200 --> 01:07:39,599
just a service where we're just saying

1626
01:07:39,599 --> 01:07:41,039
if you want to put up a banner, we're

1627
01:07:41,039 --> 01:07:43,520
exchanging money. It's when the city is

1628
01:07:43,520 --> 01:07:45,599
also not I don't want to say

1629
01:07:45,599 --> 01:07:47,200
co-sponsoring,

1630
01:07:47,200 --> 01:07:49,359
but something that we also think is is

1631
01:07:49,359 --> 01:07:50,480
important is the only reason they're

1632
01:07:50,480 --> 01:07:51,680
going up in the first place.

1633
01:07:51,680 --> 01:07:52,079
>> Well,

1634
01:07:52,079 --> 01:07:53,440
>> which isn't to say you can't get rid of

1635
01:07:53,440 --> 01:07:54,799
them. I just wanted to add that piece

1636
01:07:54,799 --> 01:07:55,440
onto it.

1637
01:07:55,440 --> 01:07:57,200
>> I mean, there's only five of them. We're

1638
01:07:57,200 --> 01:08:00,160
not even covering costs. And advertising

1639
01:08:00,160 --> 01:08:02,720
nowadays is so different than it was

1640
01:08:02,720 --> 01:08:05,520
back in the 1970s. And I can't even tell

1641
01:08:05,520 --> 01:08:07,200
you, and I drive up Fifth West every

1642
01:08:07,200 --> 01:08:09,039
single day, multiple times. I can't even

1643
01:08:09,039 --> 01:08:11,280
tell you the last time I saw a banner

1644
01:08:11,280 --> 01:08:13,599
across there, nor nor what it was,

1645
01:08:13,599 --> 01:08:17,910
right? Um

1646
01:08:17,920 --> 01:08:20,719
I I just don't obviously the five people

1647
01:08:20,719 --> 01:08:22,560
that do I wonder if BYU just does it out

1648
01:08:22,560 --> 01:08:26,400
of tradition, honestly, and it's free.

1649
01:08:26,400 --> 01:08:28,159
>> I would have to check. We have an we

1650
01:08:28,159 --> 01:08:30,799
have an agreement with BYU that deals

1651
01:08:30,799 --> 01:08:33,120
with some intersections that we paint

1652
01:08:33,120 --> 01:08:35,679
and the banners on the flag poles. I

1653
01:08:35,679 --> 01:08:38,239
can't remember if that agreement covers

1654
01:08:38,239 --> 01:08:40,239
the banners on Fifth West as well. We'd

1655
01:08:40,239 --> 01:08:41,759
have to look at that. We might be

1656
01:08:41,759 --> 01:08:45,279
obligated to keep doing those based on

1657
01:08:45,279 --> 01:08:48,159
this agreement. Um but I'd have to look.

1658
01:08:48,159 --> 01:08:50,000
>> I'm I'm less inclined to say let's take

1659
01:08:50,000 --> 01:08:52,159
it away. More inclined to say let's have

1660
01:08:52,159 --> 01:08:54,560
them cover the costs.

1661
01:08:54,560 --> 01:08:58,080
um doesn't seem like that big of a deal

1662
01:08:58,080 --> 01:08:59,839
and it certainly is I think part of the

1663
01:08:59,839 --> 01:09:01,839
tradition and so forth. So let's just

1664
01:09:01,839 --> 01:09:04,640
have him cover the cost.

1665
01:09:04,640 --> 01:09:05,839
>> Would that be a problem to have them

1666
01:09:05,839 --> 01:09:08,880
cover the cost in the contract? Brian,

1667
01:09:08,880 --> 01:09:10,159
>> I don't think so. I'll have to check.

1668
01:09:10,159 --> 01:09:12,080
Well, see the the deal with the BYU

1669
01:09:12,080 --> 01:09:14,000
agreement is that at least with regard

1670
01:09:14,000 --> 01:09:15,839
to the streets, they were providing some

1671
01:09:15,839 --> 01:09:17,359
of the materials and so that's where we

1672
01:09:17,359 --> 01:09:19,440
were getting a benefit from it. So I'll

1673
01:09:19,440 --> 01:09:20,960
just have to check the agreement and see

1674
01:09:20,960 --> 01:09:23,839
what it says as far as the BYU. What is

1675
01:09:23,839 --> 01:09:26,319
the cost of that completely if 250 is

1676
01:09:26,319 --> 01:09:28,799
not even covering costs?

1677
01:09:28,799 --> 01:09:34,960
>> Uh two hours at $70 per person for a

1678
01:09:34,960 --> 01:09:37,920
threeperson crew. Yeah, it's close. It's

1679
01:09:37,920 --> 01:09:40,640
like closer to 300, but

1680
01:09:40,640 --> 01:09:42,400
>> be closer to 300.

1681
01:09:42,400 --> 01:09:44,239
>> That's the equipment.

1682
01:09:44,239 --> 01:09:46,239
>> Correct. That's just for the labor, not

1683
01:09:46,239 --> 01:09:48,560
including the built-in costs of

1684
01:09:48,560 --> 01:09:50,799
maintaining the vehicles that are used.

1685
01:09:50,799 --> 01:09:52,719
How about we move it higher and then I

1686
01:09:52,719 --> 01:09:53,920
think that would discourage it from

1687
01:09:53,920 --> 01:09:55,600
coming

1688
01:09:55,600 --> 01:09:57,520
if we don't want to do away with it. If

1689
01:09:57,520 --> 01:10:01,120
we move it higher to cover costs, that

1690
01:10:01,120 --> 01:10:02,480
might discourage people from actually

1691
01:10:02,480 --> 01:10:04,400
doing it at all and just saying, "Hey,

1692
01:10:04,400 --> 01:10:10,229
advertising on Facebook is cheaper."

1693
01:10:10,239 --> 01:10:13,199
So, this was a an incremental increase.

1694
01:10:13,199 --> 01:10:15,120
If you would like to see the full cost

1695
01:10:15,120 --> 01:10:17,600
of what it takes to um install and

1696
01:10:17,600 --> 01:10:19,679
remove the banners, I can provide that

1697
01:10:19,679 --> 01:10:21,840
analysis for you.

1698
01:10:21,840 --> 01:10:23,679
>> Five a year. We're subsidizing it to the

1699
01:10:23,679 --> 01:10:24,640
250 bucks. So

1700
01:10:24,640 --> 01:10:26,560
>> yeah.

1701
01:10:26,560 --> 01:10:29,440
>> No, it's a community thing.

1702
01:10:29,440 --> 01:10:31,920
>> Yeah.

1703
01:10:31,920 --> 01:10:35,280
>> Don't really care.

1704
01:10:35,280 --> 01:10:39,510
>> If it was like 100 per year, then

1705
01:10:39,520 --> 01:10:42,320
» do we have any questions?

1706
01:10:42,320 --> 01:10:45,679
How we doing on time?

1707
01:10:45,679 --> 01:10:50,960
>> We're over by like 11 minutes.

1708
01:10:50,960 --> 01:10:52,640
>> But if you have you have questions, go

1709
01:10:52,640 --> 01:10:53,199
ahead.

1710
01:10:53,199 --> 01:10:55,199
>> Yeah, I had just a couple. So you

1711
01:10:55,199 --> 01:10:58,239
mentioned increasing costs. Um, you

1712
01:10:58,239 --> 01:10:59,440
know, based on what the numbers you

1713
01:10:59,440 --> 01:11:01,360
provided like by far and away your

1714
01:11:01,360 --> 01:11:03,520
biggest costs are power purchases for

1715
01:11:03,520 --> 01:11:05,360
Ma. It's like 60% or something.

1716
01:11:05,360 --> 01:11:05,920
>> Yes.

1717
01:11:05,920 --> 01:11:08,719
>> And so is that the main driver? That is

1718
01:11:08,719 --> 01:11:10,719
the main driver of this most recent

1719
01:11:10,719 --> 01:11:13,440
increase. Also trying to recover our

1720
01:11:13,440 --> 01:11:15,520
fund balance because we are spending

1721
01:11:15,520 --> 01:11:17,360
down quite a bit of fund balance to

1722
01:11:17,360 --> 01:11:20,560
cover the glass substation and um

1723
01:11:20,560 --> 01:11:22,719
>> a huge thing is that our equipment is

1724
01:11:22,719 --> 01:11:24,800
like crazy increased in pricing. So it's

1725
01:11:24,800 --> 01:11:26,400
hurt the fund balance a ton.

1726
01:11:26,400 --> 01:11:28,640
>> Yes. So, we're looking to do some fund

1727
01:11:28,640 --> 01:11:30,239
balance recovery within the rate

1728
01:11:30,239 --> 01:11:31,920
increases as well.

1729
01:11:31,920 --> 01:11:34,719
>> And it's just all gone upside so much.

1730
01:11:34,719 --> 01:11:38,159
And and the time amount, the turnaround

1731
01:11:38,159 --> 01:11:39,600
time from the time you order it till the

1732
01:11:39,600 --> 01:11:42,320
time you get here is years,

1733
01:11:42,320 --> 01:11:44,239
literally years. So, it's just it's a

1734
01:11:44,239 --> 01:11:45,199
whole thing.

1735
01:11:45,199 --> 01:11:48,560
>> And they build um what do they call uh

1736
01:11:48,560 --> 01:11:50,159
incre they build increases.

1737
01:11:50,159 --> 01:11:52,239
>> They put incremental increases into the

1738
01:11:52,239 --> 01:11:54,000
contract. So, and I bought these

1739
01:11:54,000 --> 01:11:56,320
transformers for 1.5 million. By the

1740
01:11:56,320 --> 01:12:02,070
time I paid for them, they added a 10%.

1741
01:12:02,080 --> 01:12:06,640
» Do we like does UMPA give like a

1742
01:12:06,640 --> 01:12:08,800
projected rate schedule? So, we plan

1743
01:12:08,800 --> 01:12:10,640
against that. And so, this recent 4%

1744
01:12:10,640 --> 01:12:12,880
increase we're like is not going to

1745
01:12:12,880 --> 01:12:15,199
continue unforeseen.

1746
01:12:15,199 --> 01:12:17,840
>> Um, we don't anticipate it going up by

1747
01:12:17,840 --> 01:12:20,080
that much every year. Their average over

1748
01:12:20,080 --> 01:12:22,239
the past

1749
01:12:22,239 --> 01:12:25,199
five years is about 2% per year. So the

1750
01:12:25,199 --> 01:12:28,800
4 percent was a bigger jump than normal.

1751
01:12:28,800 --> 01:12:30,239
>> Um but yeah, we'll have to see what they

1752
01:12:30,239 --> 01:12:31,679
do with the market sales this year to

1753
01:12:31,679 --> 01:12:33,760
see

1754
01:12:33,760 --> 01:12:34,880
where we go from here.

1755
01:12:34,880 --> 01:12:37,440
>> They only provide the rates in March,

1756
01:12:37,440 --> 01:12:39,280
the end of March. They provide their

1757
01:12:39,280 --> 01:12:41,679
budget for

1758
01:12:41,679 --> 01:12:44,239
>> we get rates at the conference that we

1759
01:12:44,239 --> 01:12:49,030
went to in March. Yeah.

1760
01:12:49,040 --> 01:12:51,600
» Okay. Any other questions?

1761
01:12:51,600 --> 01:12:52,000
>> No.

1762
01:12:52,000 --> 01:12:52,800
>> Thanks so much.

1763
01:12:52,800 --> 01:12:53,520
>> Nice work.

1764
01:12:53,520 --> 01:12:54,080
>> Thank you.

1765
01:12:54,080 --> 01:12:56,000
>> Yeah. Thank you.

1766
01:12:56,000 --> 01:12:59,600
>> All right. We have a five minute break.

1767
01:12:59,600 --> 01:13:03,040
So, we'll let's come back at 1:20.

1768
01:13:03,040 --> 01:13:06,630
>> Enjoy your

1769
01:13:06,640 --> 01:13:07,760
tangerines.

1770
01:13:07,760 --> 01:13:15,110
>> Recording stopped.

1771
01:13:15,120 --> 01:13:16,719
I want one of those oranges.

1772
01:13:16,719 --> 01:13:20,480
>> Recording in progress.

1773
01:13:20,480 --> 01:13:22,320
>> All right. Next, we're going to have a

1774
01:13:22,320 --> 01:13:24,400
presentation regard the 2027 budget of

1775
01:13:24,400 --> 01:13:26,719
the library presented by our library

1776
01:13:26,719 --> 01:13:33,510
director, Carla Gordon.

1777
01:13:33,520 --> 01:13:50,390
» Yeah. Fish through that middle.

1778
01:13:50,400 --> 01:13:53,280
Okay,

1779
01:13:53,280 --> 01:13:53,760
>> here we are.

1780
01:13:53,760 --> 01:13:55,120
>> Go ahead.

1781
01:13:55,120 --> 01:13:58,400
>> Here I am. J, congratulations on being

1782
01:13:58,400 --> 01:14:02,950
within budget this year.

1783
01:14:02,960 --> 01:14:06,080
» I do have to say I've been so proud. You

1784
01:14:06,080 --> 01:14:08,239
should be having that black that black

1785
01:14:08,239 --> 01:14:10,000
number on the bottom makes me really

1786
01:14:10,000 --> 01:14:10,320
happy.

1787
01:14:10,320 --> 01:14:12,080
>> You guys just did very nice work.

1788
01:14:12,080 --> 01:14:14,080
>> Good.

1789
01:14:14,080 --> 01:14:16,960
>> Glad everybody can that's we we've tried

1790
01:14:16,960 --> 01:14:18,640
really hard and hopefully I can talk a

1791
01:14:18,640 --> 01:14:19,679
little bit about some of the things that

1792
01:14:19,679 --> 01:14:21,600
we're doing and kind of where we're

1793
01:14:21,600 --> 01:14:23,760
going from here. But the number one

1794
01:14:23,760 --> 01:14:25,840
thing is we have balanced our budget and

1795
01:14:25,840 --> 01:14:28,960
it is balanced for next year as well. We

1796
01:14:28,960 --> 01:14:32,480
um have the money that we needed.

1797
01:14:32,480 --> 01:14:35,040
We have made just structurally like

1798
01:14:35,040 --> 01:14:37,120
we're just we know more of where our

1799
01:14:37,120 --> 01:14:38,560
money's coming. We've been watching

1800
01:14:38,560 --> 01:14:40,960
closer. They are making some adjustments

1801
01:14:40,960 --> 01:14:43,679
to our revenue projections to make them

1802
01:14:43,679 --> 01:14:46,000
closer to what we're actually getting

1803
01:14:46,000 --> 01:14:47,679
which makes it easier to budget. Of

1804
01:14:47,679 --> 01:14:50,800
course, um

1805
01:14:50,800 --> 01:14:55,920
we did end fiscal year 25 with 424,000

1806
01:14:55,920 --> 01:14:58,159
in surplus.

1807
01:14:58,159 --> 01:15:00,960
So we were careful in our spending. We

1808
01:15:00,960 --> 01:15:04,480
also got extra revenues which was great.

1809
01:15:04,480 --> 01:15:07,440
Um, but this has required delaying some

1810
01:15:07,440 --> 01:15:09,199
building projects and careful careful

1811
01:15:09,199 --> 01:15:12,000
budgeting all of that. So,

1812
01:15:12,000 --> 01:15:13,600
I don't think I guess I just want to say

1813
01:15:13,600 --> 01:15:15,840
I don't think I can have $425,000 in

1814
01:15:15,840 --> 01:15:17,840
savings.

1815
01:15:17,840 --> 01:15:19,520
But I was really happy when I was able

1816
01:15:19,520 --> 01:15:25,280
to. So, we'll use it. Um, fund balances.

1817
01:15:25,280 --> 01:15:27,760
So that you know we do have um our

1818
01:15:27,760 --> 01:15:31,120
ending fund balance was down closer to

1819
01:15:31,120 --> 01:15:34,719
150,000 or 1.5 million which John

1820
01:15:34,719 --> 01:15:36,000
Borgett that was kind of we didn't want

1821
01:15:36,000 --> 01:15:38,400
to go below that under his leadership

1822
01:15:38,400 --> 01:15:40,159
and so that's kind of what we were

1823
01:15:40,159 --> 01:15:42,719
aiming to get it higher than that with

1824
01:15:42,719 --> 01:15:46,480
the um surplus in fiscal year 25. We

1825
01:15:46,480 --> 01:15:47,920
were able to bring it up almost to 2

1826
01:15:47,920 --> 01:15:51,040
million which is about remembering the

1827
01:15:51,040 --> 01:15:53,760
math like 36% of our operating budget.

1828
01:15:53,760 --> 01:15:56,480
So, um, that feels a lot more

1829
01:15:56,480 --> 01:15:58,239
comfortable. And our legacy endowment

1830
01:15:58,239 --> 01:15:59,760
fund continues to grow. We haven't had

1831
01:15:59,760 --> 01:16:01,679
to pull any of that out this year. We

1832
01:16:01,679 --> 01:16:03,679
were saving that to help with the boiler

1833
01:16:03,679 --> 01:16:06,000
next year and then we found out about

1834
01:16:06,000 --> 01:16:09,199
elevators, but it's

1835
01:16:09,199 --> 01:16:10,640
so just the building maintenance fund

1836
01:16:10,640 --> 01:16:12,800
for fiscal year 27. We kind of talked

1837
01:16:12,800 --> 01:16:16,480
about this in the CIP, but um, we do

1838
01:16:16,480 --> 01:16:18,480
have the two projects coming up this

1839
01:16:18,480 --> 01:16:19,920
year. We need to replace our one

1840
01:16:19,920 --> 01:16:23,040
elevator and then we need to replace our

1841
01:16:23,040 --> 01:16:26,480
boiler and we do plan on paying for that

1842
01:16:26,480 --> 01:16:28,239
using the library legacy endowment of at

1843
01:16:28,239 --> 01:16:30,640
least $140,000. You don't or you don't

1844
01:16:30,640 --> 01:16:32,000
know exactly what that interest is going

1845
01:16:32,000 --> 01:16:33,760
to build to but when we pull it out it

1846
01:16:33,760 --> 01:16:36,480
should be at least $140,000 and then we

1847
01:16:36,480 --> 01:16:38,719
would like an appropriation from the

1848
01:16:38,719 --> 01:16:42,000
ending fund balance of 285,000 to cover

1849
01:16:42,000 --> 01:16:44,960
those two projects in our nest. Carl

1850
01:16:44,960 --> 01:16:47,600
bank has to stay about two million.

1851
01:16:47,600 --> 01:16:50,560
>> That is the as far as I can tell verbal

1852
01:16:50,560 --> 01:16:53,600
agreement that was made. So we are we

1853
01:16:53,600 --> 01:16:55,760
have tried to keep it at at that and

1854
01:16:55,760 --> 01:16:58,159
just pulled out the interest.

1855
01:16:58,159 --> 01:17:01,520
Any questions about that at all?

1856
01:17:01,520 --> 01:17:03,280
>> Um

1857
01:17:03,280 --> 01:17:05,520
we do have unfunded future CIP needs.

1858
01:17:05,520 --> 01:17:06,960
Again in our capital improvement plan

1859
01:17:06,960 --> 01:17:08,320
presentation we kind of talked about

1860
01:17:08,320 --> 01:17:12,560
those. We have projects coming up. Um

1861
01:17:12,560 --> 01:17:14,400
the elevators in total about another

1862
01:17:14,400 --> 01:17:16,400
$600,000.

1863
01:17:16,400 --> 01:17:18,080
Air handlers are going to be need to be

1864
01:17:18,080 --> 01:17:19,760
replaced. The parking structure does

1865
01:17:19,760 --> 01:17:22,960
need to be upgraded some to keep the

1866
01:17:22,960 --> 01:17:26,080
leaks to a minimum. And um the brick

1867
01:17:26,080 --> 01:17:27,520
work still does need some attention. So

1868
01:17:27,520 --> 01:17:30,239
that's about $1.8 million over the next

1869
01:17:30,239 --> 01:17:32,560
five years that we will need to find a

1870
01:17:32,560 --> 01:17:35,199
way to find that funding.

1871
01:17:35,199 --> 01:17:37,440
But we have done some really good things

1872
01:17:37,440 --> 01:17:38,880
this last year. So I just wanted to

1873
01:17:38,880 --> 01:17:42,320
throw in some of that good news. Um, we

1874
01:17:42,320 --> 01:17:45,360
continue to provide service. We had that

1875
01:17:45,360 --> 01:17:48,239
$800,000 drop. You guys helped us back

1876
01:17:48,239 --> 01:17:50,880
with that. So, we did drop $300,000, but

1877
01:17:50,880 --> 01:17:53,840
I don't believe our patrons noticed that

1878
01:17:53,840 --> 01:17:55,840
we had cut them some things back, which

1879
01:17:55,840 --> 01:17:57,600
we worked really hard to do that to

1880
01:17:57,600 --> 01:17:59,199
sustain our programming. Our hours

1881
01:17:59,199 --> 01:18:00,480
didn't change, nothing like that. We

1882
01:18:00,480 --> 01:18:03,600
kept all of our staff and we continue to

1883
01:18:03,600 --> 01:18:08,719
provide quality services. Um

1884
01:18:08,719 --> 01:18:10,640
some of the other things we have two

1885
01:18:10,640 --> 01:18:12,000
years ago we didn't do hardly any

1886
01:18:12,000 --> 01:18:14,080
fundraising. We have been building that.

1887
01:18:14,080 --> 01:18:19,199
It is not budget changing necessarily

1888
01:18:19,199 --> 01:18:21,280
>> but it is building and it does allow us

1889
01:18:21,280 --> 01:18:23,360
to do some of the smaller building

1890
01:18:23,360 --> 01:18:24,560
maintenance projects that we would

1891
01:18:24,560 --> 01:18:26,000
really like to do. Next year we're

1892
01:18:26,000 --> 01:18:28,239
hoping to raise money to replace some

1893
01:18:28,239 --> 01:18:29,600
couches in the children's department

1894
01:18:29,600 --> 01:18:31,199
that are cracking and being less

1895
01:18:31,199 --> 01:18:33,280
comfortable to sit on. And it's just not

1896
01:18:33,280 --> 01:18:34,800
part of our budget right now. So, we're

1897
01:18:34,800 --> 01:18:35,920
hoping that some of that fundraising

1898
01:18:35,920 --> 01:18:38,159
helps us do some of those upkeep

1899
01:18:38,159 --> 01:18:43,040
projects. Um, we did an a comprehensive

1900
01:18:43,040 --> 01:18:45,120
staff efficiency audit and I can't point

1901
01:18:45,120 --> 01:18:47,280
to any huge again budget changing

1902
01:18:47,280 --> 01:18:49,600
things, but we asked everybody to find

1903
01:18:49,600 --> 01:18:50,880
just something they felt like they could

1904
01:18:50,880 --> 01:18:54,000
do a little bit better and it was really

1905
01:18:54,000 --> 01:18:55,760
good exercise for all of us. We found

1906
01:18:55,760 --> 01:18:57,840
little things that we could do better,

1907
01:18:57,840 --> 01:18:59,280
little ways. And it also actually

1908
01:18:59,280 --> 01:19:01,920
brought out some training gaps that we

1909
01:19:01,920 --> 01:19:03,600
had when like now why is this taking you

1910
01:19:03,600 --> 01:19:04,880
that long? Oh, you didn't know we had

1911
01:19:04,880 --> 01:19:06,719
this tool. Let's do this. And so with

1912
01:19:06,719 --> 01:19:08,080
each individual, we were having those

1913
01:19:08,080 --> 01:19:09,360
conversations and trying to find better

1914
01:19:09,360 --> 01:19:12,159
ways to do things. Um, we're always

1915
01:19:12,159 --> 01:19:14,800
trying to stay safety and prepared. Um,

1916
01:19:14,800 --> 01:19:16,640
our library emergency communication plan

1917
01:19:16,640 --> 01:19:18,239
was something we focused on last year.

1918
01:19:18,239 --> 01:19:19,840
So, we've improved that and made sure

1919
01:19:19,840 --> 01:19:21,760
that our staff all know how that would

1920
01:19:21,760 --> 01:19:24,320
go where something to go down. And then

1921
01:19:24,320 --> 01:19:26,000
we've launched a new ABC This book's for

1922
01:19:26,000 --> 01:19:27,440
me, which was kind of a big initiative

1923
01:19:27,440 --> 01:19:28,960
this last year, and we hope to continue

1924
01:19:28,960 --> 01:19:30,560
that in the next few years to make sure

1925
01:19:30,560 --> 01:19:32,560
that people are able to find things that

1926
01:19:32,560 --> 01:19:34,400
match with their values. It's a big

1927
01:19:34,400 --> 01:19:36,000
thing in libraries. Not every book is

1928
01:19:36,000 --> 01:19:37,120
for every person, and we want to make

1929
01:19:37,120 --> 01:19:38,719
sure we're communicating how to find the

1930
01:19:38,719 --> 01:19:41,199
best books for your family. Um, we

1931
01:19:41,199 --> 01:19:43,120
implemented an evaluation process for

1932
01:19:43,120 --> 01:19:45,120
our programming just so that we're

1933
01:19:45,120 --> 01:19:46,480
reviewing what we're doing and making

1934
01:19:46,480 --> 01:19:48,400
sure everything is hitting the impact

1935
01:19:48,400 --> 01:19:51,040
that we want it to. And um we started

1936
01:19:51,040 --> 01:19:53,920
mailing new mover postcards out to new

1937
01:19:53,920 --> 01:19:55,600
Provo residents to try to help them know

1938
01:19:55,600 --> 01:19:56,800
that the library is there for them. They

1939
01:19:56,800 --> 01:19:59,280
can come in and get a library card. And

1940
01:19:59,280 --> 01:20:00,880
we went for some grants. And we kind of

1941
01:20:00,880 --> 01:20:02,480
threw this in here because we really are

1942
01:20:02,480 --> 01:20:04,239
just finding little pieces of money

1943
01:20:04,239 --> 01:20:05,840
wherever we can. Even if it's a little

1944
01:20:05,840 --> 01:20:08,480
$500 grant, we're going to go for it so

1945
01:20:08,480 --> 01:20:10,800
that we can have a parent baby program

1946
01:20:10,800 --> 01:20:12,960
that we didn't just have that $500 for

1947
01:20:12,960 --> 01:20:15,199
the moment. Um, we improved some of our

1948
01:20:15,199 --> 01:20:19,040
technology and um, council. We went for

1949
01:20:19,040 --> 01:20:19,840
one of their grant

1950
01:20:19,840 --> 01:20:21,600
>> question from council.

1951
01:20:21,600 --> 01:20:24,159
>> What? You didn't cut her off. But um,

1952
01:20:24,159 --> 01:20:25,920
who's doing the grant writing?

1953
01:20:25,920 --> 01:20:26,880
>> All of us.

1954
01:20:26,880 --> 01:20:27,199
>> Okay.

1955
01:20:27,199 --> 01:20:28,880
>> I've done I've done some of it. A lot of

1956
01:20:28,880 --> 01:20:30,159
it's through the state library. I do

1957
01:20:30,159 --> 01:20:31,760
most of those. But the different

1958
01:20:31,760 --> 01:20:33,600
departments, they keep their eyes out

1959
01:20:33,600 --> 01:20:36,480
for grants that might fit a project they

1960
01:20:36,480 --> 01:20:38,159
have or something they've had on the

1961
01:20:38,159 --> 01:20:39,360
back burner that I don't feel like we

1962
01:20:39,360 --> 01:20:40,960
have money for this. And this um, baby

1963
01:20:40,960 --> 01:20:42,239
project was kind of one of that. They

1964
01:20:42,239 --> 01:20:45,199
wanted to do that. they saw a grant from

1965
01:20:45,199 --> 01:20:47,679
>> it's an early learning um organization

1966
01:20:47,679 --> 01:20:49,360
that does those and so they got that

1967
01:20:49,360 --> 01:20:50,719
money. So we kind of just put it out

1968
01:20:50,719 --> 01:20:52,159
there and said everybody look for look

1969
01:20:52,159 --> 01:20:53,920
for grants and we share the

1970
01:20:53,920 --> 01:20:55,840
responsibility. If you want it for your

1971
01:20:55,840 --> 01:20:57,120
things then

1972
01:20:57,120 --> 01:20:59,120
>> we work together because not everybody's

1973
01:20:59,120 --> 01:21:00,080
written a grant before.

1974
01:21:00,080 --> 01:21:01,600
>> Yeah. Good use of resources. I'm

1975
01:21:01,600 --> 01:21:04,080
curious, pardon my ignorance on this. Do

1976
01:21:04,080 --> 01:21:05,920
we have a grant write up for the city

1977
01:21:05,920 --> 01:21:08,719
that helps the various departments with

1978
01:21:08,719 --> 01:21:10,960
different grants and

1979
01:21:10,960 --> 01:21:12,480
something to consider maybe for the

1980
01:21:12,480 --> 01:21:16,159
future? There's a concerted effort and

1981
01:21:16,159 --> 01:21:19,280
focus and you can actually track an ROI

1982
01:21:19,280 --> 01:21:20,800
pretty well on a grant writer, right?

1983
01:21:20,800 --> 01:21:22,480
Like you paid X amount and you've

1984
01:21:22,480 --> 01:21:25,360
generated X amount.

1985
01:21:25,360 --> 01:21:27,679
So might be something

1986
01:21:27,679 --> 01:21:30,320
>> they have. No, yeah,

1987
01:21:30,320 --> 01:21:31,360
>> gone a lot the last few years.

1988
01:21:31,360 --> 01:21:32,560
Everybody's I'm

1989
01:21:32,560 --> 01:21:33,440
>> no

1990
01:21:33,440 --> 01:21:34,719
>> not saying there's anything wrong with

1991
01:21:34,719 --> 01:21:36,560
our grant writing, but it might be

1992
01:21:36,560 --> 01:21:38,239
something to look at because usually you

1993
01:21:38,239 --> 01:21:40,000
do get a pretty good ROI because it's

1994
01:21:40,000 --> 01:21:41,760
something they're just steadily focused

1995
01:21:41,760 --> 01:21:43,360
on, right?

1996
01:21:43,360 --> 01:21:44,719
>> Yeah. I think the thing we just had to

1997
01:21:44,719 --> 01:21:46,640
watch a little bit of we've had people

1998
01:21:46,640 --> 01:21:49,040
find a grant and then try to shoehorn

1999
01:21:49,040 --> 01:21:51,280
something into it and we've been trying

2000
01:21:51,280 --> 01:21:52,560
really hard to make sure we're matching

2001
01:21:52,560 --> 01:21:54,960
a community need to that. So we're not

2002
01:21:54,960 --> 01:21:56,320
just doing a project because we have a

2003
01:21:56,320 --> 01:21:58,080
grant that'll cover it, but we're

2004
01:21:58,080 --> 01:21:59,520
projects and matching them with grants

2005
01:21:59,520 --> 01:22:00,080
that can help.

2006
01:22:00,080 --> 01:22:01,040
>> Free money. Yeah.

2007
01:22:01,040 --> 01:22:03,120
>> Yeah.

2008
01:22:03,120 --> 01:22:04,000
>> Thank you.

2009
01:22:04,000 --> 01:22:06,639
>> I was going to say I had a

2010
01:22:06,639 --> 01:22:08,480
former fire chief that said the same

2011
01:22:08,480 --> 01:22:11,840
thing about a just a communal somebody

2012
01:22:11,840 --> 01:22:12,880
that could help the different

2013
01:22:12,880 --> 01:22:14,800
departments write these grants because I

2014
01:22:14,800 --> 01:22:16,480
do know that the departments are experts

2015
01:22:16,480 --> 01:22:17,920
in writing the grants they've written

2016
01:22:17,920 --> 01:22:21,520
for years but sometimes they need help

2017
01:22:21,520 --> 01:22:27,830
and can collaborate right with somebody

2018
01:22:27,840 --> 01:22:37,189
» add it to the list.

2019
01:22:37,199 --> 01:22:38,639
And that's pretty much it. We haven't

2020
01:22:38,639 --> 01:22:40,080
changed our budget much the last year.

2021
01:22:40,080 --> 01:22:41,920
We've found ways to cover the things

2022
01:22:41,920 --> 01:22:44,639
that have increased. And again, when we

2023
01:22:44,639 --> 01:22:46,960
looked at that surplus, wherever we

2024
01:22:46,960 --> 01:22:48,480
weren't spending money, we used it to

2025
01:22:48,480 --> 01:22:49,840
help balance our budget the next year.

2026
01:22:49,840 --> 01:22:51,760
And we've adjusted some of the revenues.

2027
01:22:51,760 --> 01:22:52,159
Great.

2028
01:22:52,159 --> 01:22:54,719
>> Any questions for Carla? Yeah. Councilor

2029
01:22:54,719 --> 01:22:55,520
Christensen.

2030
01:22:55,520 --> 01:22:59,679
>> Mind putting up the CIP projects again?

2031
01:22:59,679 --> 01:23:02,560
Um, I I just want to call out that the

2032
01:23:02,560 --> 01:23:06,560
city made a decision years ago to save

2033
01:23:06,560 --> 01:23:09,280
this building and anytime you do that,

2034
01:23:09,280 --> 01:23:11,120
it's more expensive. It's easier to just

2035
01:23:11,120 --> 01:23:12,719
level it, put up a steel girder

2036
01:23:12,719 --> 01:23:15,600
building, maybe uh something inexpensive

2037
01:23:15,600 --> 01:23:18,159
and made out of metal on the outside.

2038
01:23:18,159 --> 01:23:19,920
The decision was to make this a

2039
01:23:19,920 --> 01:23:23,040
remarkable place and it's just more

2040
01:23:23,040 --> 01:23:24,639
expensive to do that. And so when we

2041
01:23:24,639 --> 01:23:26,719
look at these expenses coming up, we do

2042
01:23:26,719 --> 01:23:29,600
need to anticipate as a city

2043
01:23:29,600 --> 01:23:31,120
um

2044
01:23:31,120 --> 01:23:33,600
looking out for these things because

2045
01:23:33,600 --> 01:23:34,880
we've already made the decision. You

2046
01:23:34,880 --> 01:23:35,920
pick up one end of the stick, you pick

2047
01:23:35,920 --> 01:23:38,239
up the other beautiful, iconic, you

2048
01:23:38,239 --> 01:23:39,760
know, historical building. Well, the

2049
01:23:39,760 --> 01:23:41,360
other end of the stick is just more

2050
01:23:41,360 --> 01:23:43,440
expensive. And so I appreciate you

2051
01:23:43,440 --> 01:23:45,440
calling out what's coming up because we

2052
01:23:45,440 --> 01:23:47,760
need to anticipate this. Some of this,

2053
01:23:47,760 --> 01:23:49,199
yes, you might be able to address your

2054
01:23:49,199 --> 01:23:50,560
existing budget. Others just going to

2055
01:23:50,560 --> 01:23:52,960
have to come uh from additional funds.

2056
01:23:52,960 --> 01:23:54,960
But I just I just wanted to call out

2057
01:23:54,960 --> 01:23:58,080
that we made this choice a long time ago

2058
01:23:58,080 --> 01:23:58,560
and

2059
01:23:58,560 --> 01:23:59,440
>> it was a good choice.

2060
01:23:59,440 --> 01:24:00,239
>> Yeah.

2061
01:24:00,239 --> 01:24:01,840
>> Um I was thinking about this too and I

2062
01:24:01,840 --> 01:24:04,560
was wondering and this might be a Brian

2063
01:24:04,560 --> 01:24:08,000
question but I was wondering

2064
01:24:08,000 --> 01:24:10,080
we can use city funds. Can we use

2065
01:24:10,080 --> 01:24:13,520
general fund funds at the library?

2066
01:24:13,520 --> 01:24:15,120
>> Yeah.

2067
01:24:15,120 --> 01:24:18,480
I I was thinking about that too

2068
01:24:18,480 --> 01:24:21,120
because the library involved some

2069
01:24:21,120 --> 01:24:22,560
private fundraising and everything to

2070
01:24:22,560 --> 01:24:24,480
save that building. The cubby also

2071
01:24:24,480 --> 01:24:26,719
involved a lot of private fundraising,

2072
01:24:26,719 --> 01:24:30,480
but when you look at the wrap tax, which

2073
01:24:30,480 --> 01:24:33,520
will be coming later, we're putting in

2074
01:24:33,520 --> 01:24:36,880
like $1.3 million of wrap funds into the

2075
01:24:36,880 --> 01:24:39,840
cubby for their fiveyear CIP, but we're

2076
01:24:39,840 --> 01:24:42,320
not doing a similar thing for the

2077
01:24:42,320 --> 01:24:44,639
library for very similar

2078
01:24:44,639 --> 01:24:45,440
>> Yeah. That's not

2079
01:24:45,440 --> 01:24:47,679
>> facility, but it's still not an arts

2080
01:24:47,679 --> 01:24:49,280
building.

2081
01:24:49,280 --> 01:24:49,760
>> Well,

2082
01:24:49,760 --> 01:24:51,600
>> doesn't meet arts or parks.

2083
01:24:51,600 --> 01:24:54,000
>> It it doesn't in some ways. They do lots

2084
01:24:54,000 --> 01:24:56,480
of art programs at the library as well.

2085
01:24:56,480 --> 01:24:58,239
But what I'm saying is, you know, these

2086
01:24:58,239 --> 01:25:01,679
are both two kind of public institutions

2087
01:25:01,679 --> 01:25:04,639
for culture and value and we have been

2088
01:25:04,639 --> 01:25:06,400
treating them differently with the funds

2089
01:25:06,400 --> 01:25:10,639
that we have. Um, and so looking looking

2090
01:25:10,639 --> 01:25:13,840
at that and trying to address Craig's

2091
01:25:13,840 --> 01:25:16,880
point that we we pay for the building

2092
01:25:16,880 --> 01:25:17,920
that we asked for.

2093
01:25:17,920 --> 01:25:18,320
>> Yeah,

2094
01:25:18,320 --> 01:25:19,440
>> I think that's good.

2095
01:25:19,440 --> 01:25:20,480
>> It's more expensive.

2096
01:25:20,480 --> 01:25:21,120
>> Yeah,

2097
01:25:21,120 --> 01:25:22,719
>> we Marca,

2098
01:25:22,719 --> 01:25:24,159
>> we didn't acknowledge you. You came.

2099
01:25:24,159 --> 01:25:25,360
You've been here a while.

2100
01:25:25,360 --> 01:25:26,239
>> That's okay.

2101
01:25:26,239 --> 01:25:29,679
>> And Travis, too. Um, so just just a

2102
01:25:29,679 --> 01:25:31,360
couple of comments because I agree. We

2103
01:25:31,360 --> 01:25:33,920
looked at the rap text to see but when

2104
01:25:33,920 --> 01:25:37,920
you have the language that they voted on

2105
01:25:37,920 --> 01:25:41,199
and we can't change the language. Right.

2106
01:25:41,199 --> 01:25:42,159
>> The park tax.

2107
01:25:42,159 --> 01:25:44,159
>> Well, there's a there's also a um

2108
01:25:44,159 --> 01:25:46,080
library arts and parks tax. Yeah. So,

2109
01:25:46,080 --> 01:25:48,400
there's a lap tax, but I think even if

2110
01:25:48,400 --> 01:25:50,159
we had worded the wrap text in such a

2111
01:25:50,159 --> 01:25:52,719
way, I I don't know that it could have

2112
01:25:52,719 --> 01:25:56,080
gone to library, but we didn't. And then

2113
01:25:56,080 --> 01:25:57,920
the other thing is that you're

2114
01:25:57,920 --> 01:26:00,480
absolutely right about the building and

2115
01:26:00,480 --> 01:26:02,159
it's more expensive to maintain and

2116
01:26:02,159 --> 01:26:04,080
people it's a beautiful iconic building

2117
01:26:04,080 --> 01:26:05,760
that we want to maintain

2118
01:26:05,760 --> 01:26:09,760
>> but um but they also have a very stable

2119
01:26:09,760 --> 01:26:12,080
funding source and that they have

2120
01:26:12,080 --> 01:26:14,400
property tax that that can support them.

2121
01:26:14,400 --> 01:26:17,840
And so one of the things that um Carla

2122
01:26:17,840 --> 01:26:20,320
uh has found that like that I know with

2123
01:26:20,320 --> 01:26:23,120
the board um they want to be do best

2124
01:26:23,120 --> 01:26:28,880
practice and if if there is a need to um

2125
01:26:28,880 --> 01:26:32,639
not wait until it's you know a big huge

2126
01:26:32,639 --> 01:26:34,560
increase that they need but to you know

2127
01:26:34,560 --> 01:26:39,040
build it up. Um I it's actually from me

2128
01:26:39,040 --> 01:26:41,040
that that's not something that I don't

2129
01:26:41,040 --> 01:26:43,920
think we need this year because there is

2130
01:26:43,920 --> 01:26:45,840
money to cover

2131
01:26:45,840 --> 01:26:47,920
>> the stuff right so that is something to

2132
01:26:47,920 --> 01:26:49,920
look at in the future

2133
01:26:49,920 --> 01:26:51,760
>> I think

2134
01:26:51,760 --> 01:26:53,600
councelor Bogdan

2135
01:26:53,600 --> 01:26:54,719
>> I'm glad you brought that up because

2136
01:26:54,719 --> 01:26:55,840
that's what I was going to say to

2137
01:26:55,840 --> 01:26:57,840
Rachel's counterpoint to Rachel's death

2138
01:26:57,840 --> 01:27:02,239
is the library has a steady source of

2139
01:27:02,239 --> 01:27:06,639
funding does and what I would rather see

2140
01:27:06,639 --> 01:27:08,719
is a certain percentage of those tax

2141
01:27:08,719 --> 01:27:11,920
funds set aside for her repairs because

2142
01:27:11,920 --> 01:27:15,360
that's what you have. And so generally

2143
01:27:15,360 --> 01:27:17,199
we've just been using it as operational

2144
01:27:17,199 --> 01:27:19,520
budget and then you've been using what

2145
01:27:19,520 --> 01:27:22,400
the endowment for repairs. But what

2146
01:27:22,400 --> 01:27:25,280
needs to happen is you need to carve out

2147
01:27:25,280 --> 01:27:28,320
a section of your taxes just for for

2148
01:27:28,320 --> 01:27:30,400
repairs and then have your operational

2149
01:27:30,400 --> 01:27:32,320
budget on the rest of it. So, I don't

2150
01:27:32,320 --> 01:27:35,360
think it's fair comparison because they

2151
01:27:35,360 --> 01:27:38,320
have had that ability for

2152
01:27:38,320 --> 01:27:39,920
years.

2153
01:27:39,920 --> 01:27:41,600
>> Well,

2154
01:27:41,600 --> 01:27:43,440
I I think what we would need in order to

2155
01:27:43,440 --> 01:27:45,360
do that is to raise the property taxes

2156
01:27:45,360 --> 01:27:47,760
so that it would accommodate that

2157
01:27:47,760 --> 01:27:49,440
because they've already had operations

2158
01:27:49,440 --> 01:27:52,480
as as much as they can. Um, and the

2159
01:27:52,480 --> 01:27:54,960
ability to raise those taxes lies with

2160
01:27:54,960 --> 01:27:56,320
us, not the library.

2161
01:27:56,320 --> 01:27:58,719
>> It does, but I haven't seen that from

2162
01:27:58,719 --> 01:28:00,800
them in years. And so I think it's going

2163
01:28:00,800 --> 01:28:02,480
to ever actually.

2164
01:28:02,480 --> 01:28:04,639
>> So would you like to see a budget that

2165
01:28:04,639 --> 01:28:06,719
says we want to be able to have this

2166
01:28:06,719 --> 01:28:09,280
much money to put in for the repair fund

2167
01:28:09,280 --> 01:28:12,719
and to do that we would need council to

2168
01:28:12,719 --> 01:28:14,960
approve a property tax raise of x amount

2169
01:28:14,960 --> 01:28:17,120
for this year. She probably not this

2170
01:28:17,120 --> 01:28:18,719
year but look at it in the future for

2171
01:28:18,719 --> 01:28:19,280
the future years.

2172
01:28:19,280 --> 01:28:20,880
>> I think that makes sense.

2173
01:28:20,880 --> 01:28:23,199
>> I would rather crew it than like let's

2174
01:28:23,199 --> 01:28:25,360
wait till all this falls apart then got

2175
01:28:25,360 --> 01:28:28,480
1.8 million. Let's let's be smart and

2176
01:28:28,480 --> 01:28:30,239
stay ahead. So yes, I I would agree with

2177
01:28:30,239 --> 01:28:30,639
that point.

2178
01:28:30,639 --> 01:28:32,880
>> But Ryan, how would we could we word

2179
01:28:32,880 --> 01:28:34,480
that that she can't touch that for

2180
01:28:34,480 --> 01:28:36,320
operational funds that she has to have a

2181
01:28:36,320 --> 01:28:39,280
certain amount of that property tax only

2182
01:28:39,280 --> 01:28:41,120
to go to forge repairs?

2183
01:28:41,120 --> 01:28:44,000
>> Can I just jump in for a second? And

2184
01:28:44,000 --> 01:28:46,159
with the revenue adjustments and some of

2185
01:28:46,159 --> 01:28:48,239
the things that we are with this budget,

2186
01:28:48,239 --> 01:28:49,840
I didn't go into the weeds into it, but

2187
01:28:49,840 --> 01:28:52,960
it was about $300,000 more through the

2188
01:28:52,960 --> 01:28:57,520
adjustments and new build and all that we got this year above what we got

2189
01:28:57,520 --> 01:29:00,320
last year. and over half of it is being

2190
01:29:00,320 --> 01:29:03,600
set aside for building things like so we

2191
01:29:03,600 --> 01:29:06,159
are we are moving that way. We cut so

2192
01:29:06,159 --> 01:29:08,960
much back that one year that every year

2193
01:29:08,960 --> 01:29:10,800
I'm trying to put more money back. Like

2194
01:29:10,800 --> 01:29:13,920
we had just zero maintenance money even.

2195
01:29:13,920 --> 01:29:18,800
So I believe about 150,000 at least of

2196
01:29:18,800 --> 01:29:20,639
the additional funds that we have. But

2197
01:29:20,639 --> 01:29:22,159
we haven't seen our chargebacks. Like

2198
01:29:22,159 --> 01:29:23,440
there's a lot of numbers I don't have

2199
01:29:23,440 --> 01:29:25,280
yet for my overall budget, but I'm

2200
01:29:25,280 --> 01:29:27,679
hoping at least half of it goes to and

2201
01:29:27,679 --> 01:29:29,520
if every year I can just keep moving

2202
01:29:29,520 --> 01:29:31,920
more of that over, I think we can get a

2203
01:29:31,920 --> 01:29:35,920
lot of that. But I didn't want these

2204
01:29:35,920 --> 01:29:37,920
costs to come out of nowhere.

2205
01:29:37,920 --> 01:29:38,480
>> Yeah.

2206
01:29:38,480 --> 01:29:41,199
>> And it's hard to know. Some of the

2207
01:29:41,199 --> 01:29:44,080
adjustments were made to our revenue

2208
01:29:44,080 --> 01:29:45,920
stream, which is great, but there are

2209
01:29:45,920 --> 01:29:48,400
some years when it comes in below comes

2210
01:29:48,400 --> 01:29:49,679
in when there's a surplus and there's

2211
01:29:49,679 --> 01:29:52,480
some below. And um property taxes is a

2212
01:29:52,480 --> 01:29:55,520
very stable revenue, but plus or minus 3

2213
01:29:55,520 --> 01:29:59,600
or 4%, which is several hundred,000. So,

2214
01:29:59,600 --> 01:30:02,000
I'm trying to build that in so that we

2215
01:30:02,000 --> 01:30:03,840
aren't in the black. we still have that

2216
01:30:03,840 --> 01:30:05,679
and that we are when we can putting

2217
01:30:05,679 --> 01:30:07,600
money aside in the ending fund balance

2218
01:30:07,600 --> 01:30:09,600
so that we can cover those building

2219
01:30:09,600 --> 01:30:11,679
costs and keep building that up. So I

2220
01:30:11,679 --> 01:30:12,639
don't want you to think that we're

2221
01:30:12,639 --> 01:30:13,840
ignoring that because that was a big

2222
01:30:13,840 --> 01:30:15,760
concern that you guys had years ago when

2223
01:30:15,760 --> 01:30:17,760
you gave us the increase that building

2224
01:30:17,760 --> 01:30:19,280
cost and it's not something I have

2225
01:30:19,280 --> 01:30:20,239
forgotten. That's something that's

2226
01:30:20,239 --> 01:30:22,800
really important. So it was important to

2227
01:30:22,800 --> 01:30:24,239
community that we didn't cut services

2228
01:30:24,239 --> 01:30:25,600
and I felt like it was important to you

2229
01:30:25,600 --> 01:30:26,800
guys that we made sure and take care of

2230
01:30:26,800 --> 01:30:28,320
our building and I've really tried to

2231
01:30:28,320 --> 01:30:30,400
balance those two as we are going

2232
01:30:30,400 --> 01:30:31,840
forward. So go ahead, councelor

2233
01:30:31,840 --> 01:30:32,719
Woodlock.

2234
01:30:32,719 --> 01:30:33,760
>> So I just want to make sure I

2235
01:30:33,760 --> 01:30:35,840
understand. So for this 1.8 million of

2236
01:30:35,840 --> 01:30:38,080
needs, you're saying some of these you

2237
01:30:38,080 --> 01:30:40,239
expect to be able to chip away with

2238
01:30:40,239 --> 01:30:43,040
operating surplus, but is there a plan

2239
01:30:43,040 --> 01:30:44,480
for the gap? How much do you think that

2240
01:30:44,480 --> 01:30:45,520
gap is? Because I think that's what

2241
01:30:45,520 --> 01:30:46,800
we're talking about, like how do we meet

2242
01:30:46,800 --> 01:30:48,320
that gap? Is it a transfer from the

2243
01:30:48,320 --> 01:30:49,679
general fund? Is it a property tax

2244
01:30:49,679 --> 01:30:51,440
adjustment?

2245
01:30:51,440 --> 01:30:54,400
>> Those are all options. And I just don't

2246
01:30:54,400 --> 01:30:57,360
know based on our I just I don't know if

2247
01:30:57,360 --> 01:31:00,560
we'll have surpluses or deficits in our

2248
01:31:00,560 --> 01:31:02,480
revenues. I I can't tell you. I would

2249
01:31:02,480 --> 01:31:04,080
love to say that every year we'll have a

2250
01:31:04,080 --> 01:31:05,600
couple hundred thousand that we are able

2251
01:31:05,600 --> 01:31:09,360
to put aside for that. Though it's more

2252
01:31:09,360 --> 01:31:12,239
like $400,000 a year to cover these. So

2253
01:31:12,239 --> 01:31:14,480
there is a gap and that's kind of what

2254
01:31:14,480 --> 01:31:15,920
I'm bringing to you is there is going to

2255
01:31:15,920 --> 01:31:17,440
be a gap. I've got it covered next year.

2256
01:31:17,440 --> 01:31:18,560
I feel like we're in a really good

2257
01:31:18,560 --> 01:31:20,480
place. I think our budget again trying

2258
01:31:20,480 --> 01:31:22,400
to set money aside for the building and

2259
01:31:22,400 --> 01:31:26,560
if if um new build continues to more

2260
01:31:26,560 --> 01:31:29,520
than cover what our personnel like merit

2261
01:31:29,520 --> 01:31:30,719
increase and all that like that's a big

2262
01:31:30,719 --> 01:31:32,480
chunk of where a lot of that goes. If

2263
01:31:32,480 --> 01:31:33,920
that covers that and we're able to

2264
01:31:33,920 --> 01:31:36,719
continue to stash away 500 100,000 every

2265
01:31:36,719 --> 01:31:38,320
year into that building fund so that

2266
01:31:38,320 --> 01:31:39,920
we're building that that is what I would

2267
01:31:39,920 --> 01:31:41,760
love. I just can't guarantee that that's

2268
01:31:41,760 --> 01:31:44,400
going to happen again because while that

2269
01:31:44,400 --> 01:31:46,800
revenue stream is very constant, it

2270
01:31:46,800 --> 01:31:50,080
isn't 100%.

2271
01:31:50,080 --> 01:31:52,080
>> For sure. So, councelor Bogen, in answer

2272
01:31:52,080 --> 01:31:53,679
to your question, just to go back to

2273
01:31:53,679 --> 01:31:56,400
that, no, you can't bind future

2274
01:31:56,400 --> 01:31:58,400
councils. And so, I now having said

2275
01:31:58,400 --> 01:32:01,280
that, city budgets have a lot of inertia

2276
01:32:01,280 --> 01:32:04,080
and it's pretty rare for things to go

2277
01:32:04,080 --> 01:32:05,679
out of where they want them to be. But

2278
01:32:05,679 --> 01:32:07,360
to answer your question directly, if you

2279
01:32:07,360 --> 01:32:10,239
raised property taxes enough to generate

2280
01:32:10,239 --> 01:32:16,000
$200,000 more a year with the idea that $200,000 goes into a CIP budget for

2281
01:32:16,000 --> 01:32:19,040
the library, the only thing that forces

2282
01:32:19,040 --> 01:32:21,280
that money to stay in that CIP budget is

2283
01:32:21,280 --> 01:32:23,679
the council every year putting that

2284
01:32:23,679 --> 01:32:26,480
money into the CIP budget. If 10 years

2285
01:32:26,480 --> 01:32:28,560
from now a new director and a new

2286
01:32:28,560 --> 01:32:32,480
council says, "We want to host rock

2287
01:32:32,480 --> 01:32:34,639
concerts at the at the library and we

2288
01:32:34,639 --> 01:32:36,400
want to take all the money out of CIP to

2289
01:32:36,400 --> 01:32:38,159
fund it." There's nothing to prevent

2290
01:32:38,159 --> 01:32:40,719
them from doing that.

2291
01:32:40,719 --> 01:32:43,679
>> But isn't also my library board is the

2292
01:32:43,679 --> 01:32:47,040
one that approves my budget. They are the ones

2293
01:32:47,040 --> 01:32:49,520
>> that technically have the yes or no for

2294
01:32:49,520 --> 01:32:50,960
where the money goes.

2295
01:32:50,960 --> 01:32:53,120
>> Us.

2296
01:32:53,120 --> 01:32:54,719
>> We're the ones that approve your budget.

2297
01:32:54,719 --> 01:32:57,520
No, we do the tax increase, but her

2298
01:32:57,520 --> 01:32:58,880
board

2299
01:32:58,880 --> 01:32:59,760
>> decides where

2300
01:32:59,760 --> 01:33:00,880
>> we don't approve her.

2301
01:33:00,880 --> 01:33:02,560
>> Well, it's

2302
01:33:02,560 --> 01:33:05,199
>> Sorry, Jean and I have some differences

2303
01:33:05,199 --> 01:33:06,800
of opinion about this. Actually, state

2304
01:33:06,800 --> 01:33:08,480
code is a little bit in my view

2305
01:33:08,480 --> 01:33:10,400
ambiguous. State code gives a lot of

2306
01:33:10,400 --> 01:33:16,000
power to the library board. Um the

2307
01:33:16,000 --> 01:33:17,840
my personal opinion is that it's a mix

2308
01:33:17,840 --> 01:33:21,040
of the two because uh the library is

2309
01:33:21,040 --> 01:33:23,280
still part of the city. I I don't

2310
01:33:23,280 --> 01:33:25,360
necessarily think that the library board

2311
01:33:25,360 --> 01:33:28,800
could do something that the city council

2312
01:33:28,800 --> 01:33:32,639
could not change, but

2313
01:33:32,639 --> 01:33:34,880
the state code on it is in my view not

2314
01:33:34,880 --> 01:33:36,800
completely clear and it does grant a lot

2315
01:33:36,800 --> 01:33:38,320
of power to the library board. So, it's

2316
01:33:38,320 --> 01:33:41,040
a different institution than any other

2317
01:33:41,040 --> 01:33:45,350
part of the city because of that.

2318
01:33:45,360 --> 01:33:46,800
Councelor Whitlock,

2319
01:33:46,800 --> 01:33:48,080
>> I just wanted to follow up on a few

2320
01:33:48,080 --> 01:33:50,000
things in the budget report that to get

2321
01:33:50,000 --> 01:33:52,560
your perspective on them. Um, so you

2322
01:33:52,560 --> 01:33:54,639
said it says that like there's been a

2323
01:33:54,639 --> 01:33:57,440
decline in circulation and that's made

2324
01:33:57,440 --> 01:33:59,280
fewer items built for checkout and

2325
01:33:59,280 --> 01:34:01,280
basically this I kind of get the sense

2326
01:34:01,280 --> 01:34:02,880
maybe it's leading to like a negative

2327
01:34:02,880 --> 01:34:04,159
cycle a little bit where it's like

2328
01:34:04,159 --> 01:34:05,840
because things are not available, we're

2329
01:34:05,840 --> 01:34:09,520
not getting as much um circulation.

2330
01:34:09,520 --> 01:34:10,800
Can you just speak more to that?

2331
01:34:10,800 --> 01:34:12,960
>> Yeah. Yeah. when we two years ago when

2332
01:34:12,960 --> 01:34:14,880
we had big budget cuts, we cut 10% of

2333
01:34:14,880 --> 01:34:17,120
our of our material buying budget. So,

2334
01:34:17,120 --> 01:34:18,560
we were buying fewer things and we have

2335
01:34:18,560 --> 01:34:20,320
seen about a 10% decrease in our

2336
01:34:20,320 --> 01:34:22,000
checkouts.

2337
01:34:22,000 --> 01:34:23,679
So, I do feel like those things are

2338
01:34:23,679 --> 01:34:25,600
linked and that's one place where we're

2339
01:34:25,600 --> 01:34:27,840
putting every year one or two% like

2340
01:34:27,840 --> 01:34:30,880
trying to get it back up to that because

2341
01:34:30,880 --> 01:34:32,560
if you have fewer items that people want

2342
01:34:32,560 --> 01:34:33,920
to check out, people will check out

2343
01:34:33,920 --> 01:34:35,280
fewer things. So, we want to get back to

2344
01:34:35,280 --> 01:34:37,760
where we're supplying the community what

2345
01:34:37,760 --> 01:34:39,280
they need so they're not waiting on hold

2346
01:34:39,280 --> 01:34:42,000
for a really long time.

2347
01:34:42,000 --> 01:34:43,520
And then another thing I wanted to

2348
01:34:43,520 --> 01:34:46,560
double click on is we cut the streaming

2349
01:34:46,560 --> 01:34:48,880
services and we're getting a lot of

2350
01:34:48,880 --> 01:34:50,000
community feedback from that. Can you

2351
01:34:50,000 --> 01:34:51,360
say more to that? And like how much did

2352
01:34:51,360 --> 01:34:53,440
we save by cutting it? How much have we

2353
01:34:53,440 --> 01:34:54,880
quantified the demand of people wanting

2354
01:34:54,880 --> 01:34:55,600
it back?

2355
01:34:55,600 --> 01:34:57,920
>> Yeah, we cut um the music streaming was

2356
01:34:57,920 --> 01:35:00,480
20,000 and also the video streaming was

2357
01:35:00,480 --> 01:35:03,440
$20,000 a year. The music streaming we

2358
01:35:03,440 --> 01:35:06,159
have had less feedback that people care

2359
01:35:06,159 --> 01:35:08,480
about that as much. Um, but the movie

2360
01:35:08,480 --> 01:35:10,320
streaming we have, we actually found

2361
01:35:10,320 --> 01:35:12,320
about $5,000 to do a very limited

2362
01:35:12,320 --> 01:35:14,400
streaming account. But, um, they would

2363
01:35:14,400 --> 01:35:16,159
like, we have received quite a bit of

2364
01:35:16,159 --> 01:35:17,280
feedback. They would like full thing

2365
01:35:17,280 --> 01:35:19,199
back. And nobody

2366
01:35:19,199 --> 01:35:20,880
was enraged. Like, everybody understood

2367
01:35:20,880 --> 01:35:23,520
that we were cutting and this is kind of

2368
01:35:23,520 --> 01:35:25,040
a place where we could cut a whole

2369
01:35:25,040 --> 01:35:27,360
bunch. Um, that is something that we

2370
01:35:27,360 --> 01:35:28,719
really want to put back in the next

2371
01:35:28,719 --> 01:35:31,600
couple years as we hopefully find

2372
01:35:31,600 --> 01:35:34,000
additional um, new build revenue and

2373
01:35:34,000 --> 01:35:35,840
stuff like that. That's just slowly

2374
01:35:35,840 --> 01:35:37,520
we're building to try to put put that

2375
01:35:37,520 --> 01:35:38,639
back because it's something that

2376
01:35:38,639 --> 01:35:40,320
libraries more and more are being

2377
01:35:40,320 --> 01:35:43,600
expected to to provide.

2378
01:35:43,600 --> 01:35:46,080
>> Thank you. And then one last question is

2379
01:35:46,080 --> 01:35:48,080
and and maybe I I just want to make sure

2380
01:35:48,080 --> 01:35:51,120
I got my numbers here is basically the endowment's generating about 100k

2381
01:35:51,120 --> 01:35:52,320
per year. Correct.

2382
01:35:52,320 --> 01:35:55,440
>> If we have good interest rates, which we

2383
01:35:55,440 --> 01:35:56,480
do,

2384
01:35:56,480 --> 01:35:56,719
>> right,

2385
01:35:56,719 --> 01:35:57,920
>> until we don't,

2386
01:35:57,920 --> 01:36:00,480
>> right? But then we're drawing like 140k

2387
01:36:00,480 --> 01:36:01,120
from it.

2388
01:36:01,120 --> 01:36:03,360
>> Uh we didn't touch it at all this year.

2389
01:36:03,360 --> 01:36:05,199
So it's in the past we have

2390
01:36:05,199 --> 01:36:06,639
>> we have

2391
01:36:06,639 --> 01:36:08,880
>> we did the last the two years before

2392
01:36:08,880 --> 01:36:11,679
that um when it was only earning like

2393
01:36:11,679 --> 01:36:14,960
one or two% a year um it was much less

2394
01:36:14,960 --> 01:36:16,560
and we let it build up for several years

2395
01:36:16,560 --> 01:36:18,000
I think it helped pay for carpet and

2396
01:36:18,000 --> 01:36:19,360
then we let it build up for five years

2397
01:36:19,360 --> 01:36:21,440
it helped pay for um roofing and stuff

2398
01:36:21,440 --> 01:36:22,960
like that. So it just kind of depends on

2399
01:36:22,960 --> 01:36:24,239
what our needs are and

2400
01:36:24,239 --> 01:36:25,679
>> and so there's not like a plan to

2401
01:36:25,679 --> 01:36:27,600
continue drawing from it or it just kind

2402
01:36:27,600 --> 01:36:28,800
of as as needed.

2403
01:36:28,800 --> 01:36:31,120
>> It's been as needed which has been

2404
01:36:31,120 --> 01:36:32,480
needed a lot.

2405
01:36:32,480 --> 01:36:35,440
>> Right. So just if we've had a project

2406
01:36:35,440 --> 01:36:36,719
that came up, we weren't sure where that

2407
01:36:36,719 --> 01:36:38,800
money was coming from. We looked to see

2408
01:36:38,800 --> 01:36:40,560
how much would we be drawing out if we

2409
01:36:40,560 --> 01:36:41,920
left it at two million and just brought

2410
01:36:41,920 --> 01:36:44,000
out that interest. So we have used it

2411
01:36:44,000 --> 01:36:47,520
pretty regularly over the last three

2412
01:36:47,520 --> 01:36:49,199
years, but not this.

2413
01:36:49,199 --> 01:36:50,560
>> What's been like the secular trend of

2414
01:36:50,560 --> 01:36:52,560
the balance beyond the window provided

2415
01:36:52,560 --> 01:36:56,320
in this report?

2416
01:36:56,320 --> 01:37:00,000
>> Uh that's a good question. I haven't

2417
01:37:00,000 --> 01:37:01,679
been watching it more than for the last

2418
01:37:01,679 --> 01:37:03,840
four years. So, I'm not sure. I know

2419
01:37:03,840 --> 01:37:06,800
that it took about 15 years to get to 2

2420
01:37:06,800 --> 01:37:08,880
million. So, it took quite a while

2421
01:37:08,880 --> 01:37:12,719
because the endowment originally was, I

2422
01:37:12,719 --> 01:37:14,800
think, closer to 1.5 million. And so,

2423
01:37:14,800 --> 01:37:16,960
they let it grow over a whole bunch of

2424
01:37:16,960 --> 01:37:19,199
years until it reached that 2 million.

2425
01:37:19,199 --> 01:37:22,560
And then the only draws that I know of

2426
01:37:22,560 --> 01:37:24,400
were again the carpet and the roofing.

2427
01:37:24,400 --> 01:37:27,360
And then I've drawn it out um for some

2428
01:37:27,360 --> 01:37:31,280
parking structure repair and then

2429
01:37:31,280 --> 01:37:33,199
uh the gutters. We used it for the

2430
01:37:33,199 --> 01:37:35,600
gutters the year before and then hoping

2431
01:37:35,600 --> 01:37:36,960
to let it build up again so we could

2432
01:37:36,960 --> 01:37:38,480
help it pay for the boiler.

2433
01:37:38,480 --> 01:37:39,119
>> Okay. Thank you.

2434
01:37:39,119 --> 01:37:40,480
>> We had we saw that on the horizon and

2435
01:37:40,480 --> 01:37:42,960
knew that we would need that money.

2436
01:37:42,960 --> 01:37:43,760
>> Yeah.

2437
01:37:43,760 --> 01:37:45,520
>> Just wanted to build on the um

2438
01:37:45,520 --> 01:37:47,040
circulation question. So you've seen it

2439
01:37:47,040 --> 01:37:48,480
go down a little bit. How does it trend

2440
01:37:48,480 --> 01:37:51,040
with other libraries in the state?

2441
01:37:51,040 --> 01:37:53,440
Um,

2442
01:37:53,440 --> 01:37:55,760
I haven't looked at them this year.

2443
01:37:55,760 --> 01:37:59,040
Overall, circulation has been nationally

2444
01:37:59,040 --> 01:38:02,080
going down. People are using libraries

2445
01:38:02,080 --> 01:38:05,040
less. Um, we've always been really proud

2446
01:38:05,040 --> 01:38:07,280
because ours continues to grow. Our

2447
01:38:07,280 --> 01:38:09,920
print checkouts do go down, but our

2448
01:38:09,920 --> 01:38:13,280
digital checkouts go up. And we have

2449
01:38:13,280 --> 01:38:15,679
overall gone up until the last couple of

2450
01:38:15,679 --> 01:38:18,709
years

2451
01:38:18,719 --> 01:38:20,159
» because I think people are are checking

2452
01:38:20,159 --> 01:38:22,080
out pure print books, but everybody

2453
01:38:22,080 --> 01:38:26,470
likes downloadable ebooks.

2454
01:38:26,480 --> 01:38:27,760
» Yeah, that's what I'm hoping.

2455
01:38:27,760 --> 01:38:28,960
>> I was just curious how it's going with

2456
01:38:28,960 --> 01:38:30,800
the ballroom rentals. We had increased

2457
01:38:30,800 --> 01:38:32,159
price. We're trying to find an

2458
01:38:32,159 --> 01:38:33,679
equilibrium of like what people would

2459
01:38:33,679 --> 01:38:35,440
pay but not pay, you know, not charge

2460
01:38:35,440 --> 01:38:38,239
too much. I know it's not a huge,

2461
01:38:38,239 --> 01:38:39,679
>> you know, budget breaker or anything,

2462
01:38:39,679 --> 01:38:41,520
but I was just curious how that went.

2463
01:38:41,520 --> 01:38:43,920
>> Yeah, it's our usage has not gone down.

2464
01:38:43,920 --> 01:38:45,440
In fact, I was just told the last couple

2465
01:38:45,440 --> 01:38:47,520
of months have been our highest months

2466
01:38:47,520 --> 01:38:50,239
ever for revenue brought in by our

2467
01:38:50,239 --> 01:38:52,400
meeting rooms. We did, and maybe I

2468
01:38:52,400 --> 01:38:53,679
should put this in the report, but it's

2469
01:38:53,679 --> 01:38:56,480
in the um consolidated fee schedule, but

2470
01:38:56,480 --> 01:38:58,800
we did increase it again another 5% for

2471
01:38:58,800 --> 01:39:00,639
almost all of our meeting rooms and

2472
01:39:00,639 --> 01:39:02,560
included that in our in our revenues as

2473
01:39:02,560 --> 01:39:06,159
well. at 5% up and I kind of like that

2474
01:39:06,159 --> 01:39:08,639
just in incremental we did do we did

2475
01:39:08,639 --> 01:39:10,639
compare it to the other meeting spaces

2476
01:39:10,639 --> 01:39:12,239
in the community just to make sure and

2477
01:39:12,239 --> 01:39:14,000
they were all doing between a three and

2478
01:39:14,000 --> 01:39:16,080
10% increase this last year too so it

2479
01:39:16,080 --> 01:39:17,600
stayed in

2480
01:39:17,600 --> 01:39:20,080
>> okay it makes sense to just kind of keep

2481
01:39:20,080 --> 01:39:23,920
pinching it and seeing you know what the

2482
01:39:23,920 --> 01:39:26,159
elasticity is right the price elasticity

2483
01:39:26,159 --> 01:39:29,440
and such go econ 101

2484
01:39:29,440 --> 01:39:31,360
>> also looking to make sure that it's

2485
01:39:31,360 --> 01:39:33,199
covering the cost of the staff that make

2486
01:39:33,199 --> 01:39:36,000
it run because that was kind of a big

2487
01:39:36,000 --> 01:39:38,000
moment for us that that it is and so

2488
01:39:38,000 --> 01:39:39,199
we're we're watching that as well.

2489
01:39:39,199 --> 01:39:40,159
>> Thanks for that update.

2490
01:39:40,159 --> 01:39:41,119
>> Yeah.

2491
01:39:41,119 --> 01:39:43,280
>> All right. Anything else for Carla?

2492
01:39:43,280 --> 01:39:44,800
>> Hey, thanks so much.

2493
01:39:44,800 --> 01:39:46,639
>> We are one last little thing. It's our

2494
01:39:46,639 --> 01:39:48,080
25th year in the building.

2495
01:39:48,080 --> 01:39:50,159
>> Oh,

2496
01:39:50,159 --> 01:39:51,920
we have some little goodie bags. These

2497
01:39:51,920 --> 01:39:53,600
are actually um prizes that we're giving

2498
01:39:53,600 --> 01:39:56,239
out for a anniversary challenge at the

2499
01:39:56,239 --> 01:39:57,840
library. So, if they do six challenges,

2500
01:39:57,840 --> 01:39:59,119
they get these. But, I bought one for

2501
01:39:59,119 --> 01:39:59,920
each of you.

2502
01:39:59,920 --> 01:40:02,560
>> Love it. help us celebrate. It's now an

2503
01:40:02,560 --> 01:40:04,320
extensive building

2504
01:40:04,320 --> 01:40:06,080
>> because it's 25 years old. Thank you

2505
01:40:06,080 --> 01:40:06,880
guys so much.

2506
01:40:06,880 --> 01:40:07,760
>> Thanks, Carla.

2507
01:40:07,760 --> 01:40:11,280
>> You guys put the banner over the street.

2508
01:40:11,280 --> 01:40:14,320
>> All right.

2509
01:40:14,320 --> 01:40:15,920
>> Next, we have a presentation for the

2510
01:40:15,920 --> 01:40:19,040
2027 budget parks and wreck. This will

2511
01:40:19,040 --> 01:40:20,800
be presented by our interimm director of

2512
01:40:20,800 --> 01:40:31,350
parks recy.

2513
01:40:31,360 --> 01:40:42,709
Hey,

2514
01:40:42,719 --> 01:40:44,159
» sorry I got to wait for the riff raff to

2515
01:40:44,159 --> 01:40:46,080
get into the room. So, appreciate your

2516
01:40:46,080 --> 01:40:48,000
time.

2517
01:40:48,000 --> 01:40:51,590
Um,

2518
01:40:51,600 --> 01:40:52,960
thanks for having us out. We're the

2519
01:40:52,960 --> 01:41:00,000
parks and recreation department. Uh I'm Foster in the department

2520
01:41:00,000 --> 01:41:02,000
currently uh but we've brought some of

2521
01:41:02,000 --> 01:41:04,239
our division staff members. So uh many

2522
01:41:04,239 --> 01:41:06,080
of our managers that are here that if we

2523
01:41:06,080 --> 01:41:07,760
have questions uh specifically to speak

2524
01:41:07,760 --> 01:41:10,880
to that they can. Um,

2525
01:41:10,880 --> 01:41:12,639
as always, we've approached this budget

2526
01:41:12,639 --> 01:41:14,080
with a deep sense of responsibility,

2527
01:41:14,080 --> 01:41:16,320
recognizing that every dollar entrusted

2528
01:41:16,320 --> 01:41:20,159
to us is precious and then and that it

2529
01:41:20,159 --> 01:41:22,480
represents the hard work um of our

2530
01:41:22,480 --> 01:41:23,840
residents and the priorities of this

2531
01:41:23,840 --> 01:41:26,400
council. So, this budget year is very

2532
01:41:26,400 --> 01:41:29,280
simple. It resembles very closely uh

2533
01:41:29,280 --> 01:41:30,880
years previously, and we only have two

2534
01:41:30,880 --> 01:41:32,400
supplemental requests. So, we'll go over

2535
01:41:32,400 --> 01:41:34,480
those when we get to those and then I'll

2536
01:41:34,480 --> 01:41:37,119
point those out. Um, just as a general

2537
01:41:37,119 --> 01:41:39,199
outline, if you want Oh, this is it,

2538
01:41:39,199 --> 01:41:42,159
isn't it? Just as a general outline. Um,

2539
01:41:42,159 --> 01:41:43,840
we've answered all the questions as far

2540
01:41:43,840 --> 01:41:46,960
as needs and and other uh appropriations

2541
01:41:46,960 --> 01:41:49,280
here. And then we'll talk about the

2542
01:41:49,280 --> 01:41:50,880
performance measures and then we'll go

2543
01:41:50,880 --> 01:41:53,360
over key accomplishments as we as as we

2544
01:41:53,360 --> 01:41:55,040
do for each of our different divisions.

2545
01:41:55,040 --> 01:41:57,040
We've got about eight of them. So,

2546
01:41:57,040 --> 01:41:59,920
starting at the Peace Ice Arena,

2547
01:41:59,920 --> 01:42:02,239
um the ice arena continues to operate

2548
01:42:02,239 --> 01:42:04,800
effectively with no uh additional under

2549
01:42:04,800 --> 01:42:07,119
un unfunded or underfunded needs.

2550
01:42:07,119 --> 01:42:08,639
Services or initiatives that need to be

2551
01:42:08,639 --> 01:42:10,560
funded are none and appropriations as

2552
01:42:10,560 --> 01:42:12,719
well none. Uh the only thing to note

2553
01:42:12,719 --> 01:42:15,199
here is that um the Peaks Iceize Arena

2554
01:42:15,199 --> 01:42:16,880
will host will be a host venue for the

2555
01:42:16,880 --> 01:42:19,440
2034 Olympics and because of that we're

2556
01:42:19,440 --> 01:42:22,400
planning uh for needed upgrades

2557
01:42:22,400 --> 01:42:24,239
and uh but we are doing this very

2558
01:42:24,239 --> 01:42:25,679
responsibly and with the assistance from

2559
01:42:25,679 --> 01:42:27,679
the state and we just wanted to note

2560
01:42:27,679 --> 01:42:29,520
that for future obligations it says on

2561
01:42:29,520 --> 01:42:31,119
there long-term visions. So that's one

2562
01:42:31,119 --> 01:42:32,880
for the Peaks Ice Arena. So many of you

2563
01:42:32,880 --> 01:42:35,199
know about

2564
01:42:35,199 --> 01:42:36,960
uh the performance measures for the ice

2565
01:42:36,960 --> 01:42:39,679
arena. uh we have a good balance of

2566
01:42:39,679 --> 01:42:41,280
programming and public activities,

2567
01:42:41,280 --> 01:42:44,080
rentals, tournaments uh that diversify

2568
01:42:44,080 --> 01:42:46,400
uh our offerings and currently we're at

2569
01:42:46,400 --> 01:42:48,880
98% booking capacity. So that's very

2570
01:42:48,880 --> 01:42:51,840
high. Um almost every free hour is used

2571
01:42:51,840 --> 01:42:53,360
that we have of ice and turf

2572
01:42:53,360 --> 01:42:56,880
availability. Uh it's 100%

2573
01:42:56,880 --> 01:42:58,400
self-sustaining operation with no

2574
01:42:58,400 --> 01:43:00,719
operational subsidy and we return about

2575
01:43:00,719 --> 01:43:03,920
uh it's about 109% total cost recovery.

2576
01:43:03,920 --> 01:43:06,320
Public skating is very popular still in

2577
01:43:06,320 --> 01:43:09,280
Provo. And the ice arena tracks uh

2578
01:43:09,280 --> 01:43:12,320
numbers of the ice arena tracks the

2579
01:43:12,320 --> 01:43:14,560
number of ice resurfaces every year. And

2580
01:43:14,560 --> 01:43:15,840
while that might seem like an

2581
01:43:15,840 --> 01:43:17,360
insignificant number, it's the number of

2582
01:43:17,360 --> 01:43:19,040
zams we do every year. But that also

2583
01:43:19,040 --> 01:43:20,320
tells us it's an indicator of how

2584
01:43:20,320 --> 01:43:22,880
popular and how busy they are in Provo.

2585
01:43:22,880 --> 01:43:24,400
Uh and then according to the visitors

2586
01:43:24,400 --> 01:43:26,239
bureau with the tournaments that we do

2587
01:43:26,239 --> 01:43:28,320
run, we we generate about $5 million of

2588
01:43:28,320 --> 01:43:31,040
economic impact.

2589
01:43:31,040 --> 01:43:32,639
Some of the key accomplishments this

2590
01:43:32,639 --> 01:43:34,400
year we hosted the Olympic listening

2591
01:43:34,400 --> 01:43:35,840
tour. So some of you may have heard

2592
01:43:35,840 --> 01:43:38,560
about that. We had um uh those from the

2593
01:43:38,560 --> 01:43:41,040
commission from uh the parolympic winter

2594
01:43:41,040 --> 01:43:43,440
games organizing committee that came in

2595
01:43:43,440 --> 01:43:45,280
uh and then they also at the peak ice

2596
01:43:45,280 --> 01:43:46,880
arena funded a chiller replacement

2597
01:43:46,880 --> 01:43:48,239
completely on their own about half

2598
01:43:48,239 --> 01:43:50,400
million dollars turf replacement and

2599
01:43:50,400 --> 01:43:52,560
then they are 100% self-sustaining and

2600
01:43:52,560 --> 01:43:53,920
they host about seven tournaments. So,

2601
01:43:53,920 --> 01:43:55,679
we talked about $5 million of economic

2602
01:43:55,679 --> 01:43:58,000
impact and these are just some of the

2603
01:43:58,000 --> 01:44:01,840
Olympic preparations that they're getting ready for.

2604
01:44:01,840 --> 01:44:04,080
Um,

2605
01:44:04,080 --> 01:44:06,639
yeah, one of the other amazing things to

2606
01:44:06,639 --> 01:44:08,000
note here at the ice arena is that

2607
01:44:08,000 --> 01:44:09,600
they're having a record setting year.

2608
01:44:09,600 --> 01:44:12,159
Uh, just very bannered year as far as uh

2609
01:44:12,159 --> 01:44:14,000
their revenues are concerned. So, this

2610
01:44:14,000 --> 01:44:15,199
purple line is the one that we're

2611
01:44:15,199 --> 01:44:18,080
following here forations.

2612
01:44:18,080 --> 01:44:19,040
>> Oh, nice.

2613
01:44:19,040 --> 01:44:22,000
>> So, um many of these numbers like these

2614
01:44:22,000 --> 01:44:23,520
are their banner months. Some of these

2615
01:44:23,520 --> 01:44:25,119
months right here are historic months

2616
01:44:25,119 --> 01:44:26,480
that they have up there which are really

2617
01:44:26,480 --> 01:44:28,159
cool to see. So this year I think

2618
01:44:28,159 --> 01:44:29,520
they'll have a record setting revenue

2619
01:44:29,520 --> 01:44:31,520
years. They've got a couple months left

2620
01:44:31,520 --> 01:44:33,520
uh to bank that out. But they do put

2621
01:44:33,520 --> 01:44:35,760
away a lot of that and we plan on doing

2622
01:44:35,760 --> 01:44:37,440
a lot of those renovations ourselves if

2623
01:44:37,440 --> 01:44:39,600
we can and then as we go into the

2624
01:44:39,600 --> 01:44:41,199
Olympics we'll see some of that.

2625
01:44:41,199 --> 01:44:43,440
>> What do you attribute the revenue to?

2626
01:44:43,440 --> 01:44:45,119
>> There's a huge increase. Well, we are

2627
01:44:45,119 --> 01:44:46,880
the only ice arena in Utah County. So

2628
01:44:46,880 --> 01:44:47,920
that's one. You kind of have the

2629
01:44:47,920 --> 01:44:50,159
monopoly there as well as the increase.

2630
01:44:50,159 --> 01:44:52,239
It's an Olympic year. So that's always

2631
01:44:52,239 --> 01:44:56,000
drives more ice winter related sports as

2632
01:44:56,000 --> 01:44:58,719
well as we have the mammoth here

2633
01:44:58,719 --> 01:45:01,119
>> which is our NHL hockey team. So those

2634
01:45:01,119 --> 01:45:02,000
two things are just

2635
01:45:02,000 --> 01:45:04,000
>> so just interest generally is higher due

2636
01:45:04,000 --> 01:45:04,400
to

2637
01:45:04,400 --> 01:45:06,080
>> in ice sports and

2638
01:45:06,080 --> 01:45:08,320
>> have we has has our pricing gone up at

2639
01:45:08,320 --> 01:45:09,920
all or

2640
01:45:09,920 --> 01:45:12,239
>> uh for rentals or

2641
01:45:12,239 --> 01:45:13,440
>> we are we have put

2642
01:45:13,440 --> 01:45:16,320
>> the little the little uh push things

2643
01:45:16,320 --> 01:45:18,159
that I use to keep myself from falling

2644
01:45:18,159 --> 01:45:19,760
>> the walkers.

2645
01:45:19,760 --> 01:45:21,119
used to all those walkways even though

2646
01:45:21,119 --> 01:45:22,159
they're skating.

2647
01:45:22,159 --> 01:45:24,880
>> Uh we do have a few uh fee increases

2648
01:45:24,880 --> 01:45:26,800
that you'll you'll probably see in the

2649
01:45:26,800 --> 01:45:28,320
consolidated fee schedule. So we're

2650
01:45:28,320 --> 01:45:30,719
looking at raising ice costs there. Um

2651
01:45:30,719 --> 01:45:33,920
this is even with u let's see the new

2652
01:45:33,920 --> 01:45:36,000
mammoth practice facility that's online

2653
01:45:36,000 --> 01:45:38,000
there. There is plenty of need I think

2654
01:45:38,000 --> 01:45:39,280
in the county and some of the county

2655
01:45:39,280 --> 01:45:40,639
commissioners have have mentioned that

2656
01:45:40,639 --> 01:45:43,119
there's need this here and I think Lehi

2657
01:45:43,119 --> 01:45:45,520
had a a feasibility study for ice.

2658
01:45:45,520 --> 01:45:45,840
>> Yes.

2659
01:45:45,840 --> 01:45:48,080
>> Well, they they denied it but

2660
01:45:48,080 --> 01:45:49,600
>> Right. Right. They were talking about

2661
01:45:49,600 --> 01:45:50,400
doing that.

2662
01:45:50,400 --> 01:45:53,199
>> Um, is there still talk about possibly

2663
01:45:53,199 --> 01:45:56,480
expanding the ice like doing an ice rink

2664
01:45:56,480 --> 01:45:58,320
or ice ribbon or something just because

2665
01:45:58,320 --> 01:45:59,840
it is so popular?

2666
01:45:59,840 --> 01:46:02,159
>> Uh, we can always dream. We we don't

2667
01:46:02,159 --> 01:46:05,840
have anything currently in the CIP. Uh,

2668
01:46:05,840 --> 01:46:10,560
we we would Yes, there is a need. So, if there's any opportunities there, uh

2669
01:46:10,560 --> 01:46:11,840
there's things that we could do. Yeah,

2670
01:46:11,840 --> 01:46:14,080
>> that was what I wrote for the big idea

2671
01:46:14,080 --> 01:46:16,480
for getting the regional funding speed

2672
01:46:16,480 --> 01:46:18,400
skate rivet showing.

2673
01:46:18,400 --> 01:46:20,400
>> Yeah, we've done some concepts. We've

2674
01:46:20,400 --> 01:46:22,480
looked at it before of of ways to

2675
01:46:22,480 --> 01:46:23,840
incorporate this. One of the things that

2676
01:46:23,840 --> 01:46:25,760
we thought of is maybe creating a plaza

2677
01:46:25,760 --> 01:46:27,760
out front of the facility where we could

2678
01:46:27,760 --> 01:46:33,119
have the a watch party so others could participate in Olympic type

2679
01:46:33,119 --> 01:46:35,360
activities but still be close enough to

2680
01:46:35,360 --> 01:46:36,639
the venue if they can't get in. So,

2681
01:46:36,639 --> 01:46:37,760
those are some things that we've talked

2682
01:46:37,760 --> 01:46:39,679
about. Yeah.

2683
01:46:39,679 --> 01:46:41,760
>> Okay. Okay, so that's the ice arena uh

2684
01:46:41,760 --> 01:46:43,920
sports and epic sports park complex. Uh

2685
01:46:43,920 --> 01:46:45,679
this is just one of our first uh

2686
01:46:45,679 --> 01:46:46,960
supplementals that I wanted to point

2687
01:46:46,960 --> 01:46:49,119
out. Uh sports is requesting a part-time

2688
01:46:49,119 --> 01:46:51,040
sports coordinator to run the additional

2689
01:46:51,040 --> 01:46:52,320
programming. We're looking at adding

2690
01:46:52,320 --> 01:46:54,560
pickle ball, ultimate frisbee, and rugby

2691
01:46:54,560 --> 01:46:57,199
uh are a couple of them. And but as far

2692
01:46:57,199 --> 01:46:58,320
as everything else, they're not asking

2693
01:46:58,320 --> 01:47:00,000
for any any other appropriations or

2694
01:47:00,000 --> 01:47:02,320
anything else. The fees to the to to run

2695
01:47:02,320 --> 01:47:03,679
these programs would essentially cover

2696
01:47:03,679 --> 01:47:05,520
the cost of that employee. So there's no

2697
01:47:05,520 --> 01:47:07,840
net or any increase there. Yeah. Are we

2698
01:47:07,840 --> 01:47:09,600
increasing fees for this too?

2699
01:47:09,600 --> 01:47:11,360
>> So the fees would just be built in. So

2700
01:47:11,360 --> 01:47:13,119
we we calculate within sports about a

2701
01:47:13,119 --> 01:47:17,119
25% buffer 15 to 25% buffer and that

2702
01:47:17,119 --> 01:47:18,880
covers the cost of the employees wages.

2703
01:47:18,880 --> 01:47:22,000
>> Right. Right. But this next year for

2704
01:47:22,000 --> 01:47:25,119
budgets in 27 are we increasing the fees

2705
01:47:25,119 --> 01:47:26,080
here too

2706
01:47:26,080 --> 01:47:27,360
>> for sports programming?

2707
01:47:27,360 --> 01:47:27,760
>> Yes.

2708
01:47:27,760 --> 01:47:29,760
>> I don't think we have anything. Do you

2709
01:47:29,760 --> 01:47:32,080
>> for the

2710
01:47:32,080 --> 01:47:32,960
may asking

2711
01:47:32,960 --> 01:47:34,880
>> well for for all of it because I didn't

2712
01:47:34,880 --> 01:47:37,199
see any any increases here. So that's in

2713
01:47:37,199 --> 01:47:39,199
the consolidated fee schedule which we I

2714
01:47:39,199 --> 01:47:41,119
think we submit submit.

2715
01:47:41,119 --> 01:47:42,400
>> We haven't seen any of that. Have you

2716
01:47:42,400 --> 01:47:42,960
not seen that?

2717
01:47:42,960 --> 01:47:44,159
>> Yeah. And normally when we're seeing

2718
01:47:44,159 --> 01:47:47,440
these these presentations will be

2719
01:47:47,440 --> 01:47:49,760
>> we Yeah, we we like energy just showed

2720
01:47:49,760 --> 01:47:52,480
us theirs. Um the airport just showed us

2721
01:47:52,480 --> 01:47:54,320
theirs, but I haven't seen anything from

2722
01:47:54,320 --> 01:47:54,960
yours yet.

2723
01:47:54,960 --> 01:47:57,520
>> Got it. So separately we do we do the

2724
01:47:57,520 --> 01:47:59,440
consolidated fee schedule which we put

2725
01:47:59,440 --> 01:48:01,040
together the different fees. That's

2726
01:48:01,040 --> 01:48:02,080
never been part of our budget

2727
01:48:02,080 --> 01:48:03,679
presentation, but we'd be happy to speak

2728
01:48:03,679 --> 01:48:05,760
to it. Currently in sports, I don't

2729
01:48:05,760 --> 01:48:07,199
think they are adding any additional

2730
01:48:07,199 --> 01:48:08,960
fees to any of the sports programming or

2731
01:48:08,960 --> 01:48:11,119
the rentals at the IC or sorry at the

2732
01:48:11,119 --> 01:48:13,679
Epic Sport. So, does that help answer

2733
01:48:13,679 --> 01:48:14,080
that?

2734
01:48:14,080 --> 01:48:15,040
>> Yeah.

2735
01:48:15,040 --> 01:48:17,360
>> All right. Um, no underfunded needs or

2736
01:48:17,360 --> 01:48:20,719
anything else in sports. Um, and we'll

2737
01:48:20,719 --> 01:48:23,119
move to their performance measures. Uh,

2738
01:48:23,119 --> 01:48:25,520
their performance measures here. One one

2739
01:48:25,520 --> 01:48:26,960
thing that I did want to note is that

2740
01:48:26,960 --> 01:48:29,199
they use an MPS score uh in their

2741
01:48:29,199 --> 01:48:30,400
performance measures which just

2742
01:48:30,400 --> 01:48:33,360
basically tracks um it's a metric to see

2743
01:48:33,360 --> 01:48:35,440
the satisfaction of the participants

2744
01:48:35,440 --> 01:48:38,080
included and a average score would be

2745
01:48:38,080 --> 01:48:39,840
around a 30 and their performance

2746
01:48:39,840 --> 01:48:42,480
metrics are generally around a 45 to 55

2747
01:48:42,480 --> 01:48:44,080
score and so they do have high

2748
01:48:44,080 --> 01:48:46,320
engagement and satisfaction from the

2749
01:48:46,320 --> 01:48:47,600
different participants that are in their

2750
01:48:47,600 --> 01:48:50,480
programs. So that's always fun to see.

2751
01:48:50,480 --> 01:48:52,960
Uh as far as key accomplishments in the

2752
01:48:52,960 --> 01:48:55,840
sports and epic sports park this year,

2753
01:48:55,840 --> 01:48:57,920
uh the economic impact is looking to be

2754
01:48:57,920 --> 01:49:00,560
close to 18.5 million in actual local

2755
01:49:00,560 --> 01:49:02,480
spending. And so that's also come this

2756
01:49:02,480 --> 01:49:06,800
number we've uh help been helped by the

2757
01:49:06,800 --> 01:49:08,560
uh visitors bureau to help put these

2758
01:49:08,560 --> 01:49:11,360
numbers together. Uh as you know they

2759
01:49:11,360 --> 01:49:12,960
were awarded the sports complex of the

2760
01:49:12,960 --> 01:49:15,920
year and this July they're hosting the

2761
01:49:15,920 --> 01:49:18,800
US youth soccer premier tournament. And

2762
01:49:18,800 --> 01:49:20,480
then we've also seen an uptick in

2763
01:49:20,480 --> 01:49:22,159
programming such as girls softball at

2764
01:49:22,159 --> 01:49:23,840
Fort Utah. They've seen multiple team

2765
01:49:23,840 --> 01:49:25,600
growth. So that's been fun to see.

2766
01:49:25,600 --> 01:49:28,239
>> Yeah.

2767
01:49:28,239 --> 01:49:31,040
>> Um on the just a couple questions on the

2768
01:49:31,040 --> 01:49:34,080
Epic Sports Park. So you list out

2769
01:49:34,080 --> 01:49:36,639
numbers for like economic impact, but I

2770
01:49:36,639 --> 01:49:39,520
didn't see numbers on like the actual

2771
01:49:39,520 --> 01:49:42,080
performance of the park. Can you share

2772
01:49:42,080 --> 01:49:43,040
anything on that?

2773
01:49:43,040 --> 01:49:44,560
>> Yes. What specifically would you like to

2774
01:49:44,560 --> 01:49:47,679
know about? um how's it have fees and is

2775
01:49:47,679 --> 01:49:49,119
it self- sustaining from that

2776
01:49:49,119 --> 01:49:50,800
perspective and just yeah financial

2777
01:49:50,800 --> 01:49:51,600
performance.

2778
01:49:51,600 --> 01:49:54,080
>> So good questions. So financially the

2779
01:49:54,080 --> 01:49:55,840
operations are covered they budget and

2780
01:49:55,840 --> 01:49:57,119
they fall within their budget. So if

2781
01:49:57,119 --> 01:49:58,320
they don't hit their revenues they still

2782
01:49:58,320 --> 01:49:59,840
won't spend up to them that that amount

2783
01:49:59,840 --> 01:50:02,000
they'll balance their budgets internally

2784
01:50:02,000 --> 01:50:03,440
uh if they don't hit their revenues but

2785
01:50:03,440 --> 01:50:05,040
they are on track to hit their revenues.

2786
01:50:05,040 --> 01:50:06,480
It's close to half a million I think in

2787
01:50:06,480 --> 01:50:08,400
revenue that the Epic Sports Park brings

2788
01:50:08,400 --> 01:50:12,080
in. uh and they are uh their booking

2789
01:50:12,080 --> 01:50:13,840
window is also very high meaning the

2790
01:50:13,840 --> 01:50:15,520
hours that they have aotted to book not

2791
01:50:15,520 --> 01:50:17,679
very many and not much interest I guess

2792
01:50:17,679 --> 01:50:20,080
during the early and afternoon parts of

2793
01:50:20,080 --> 01:50:22,320
the day but in the evening time uh when

2794
01:50:22,320 --> 01:50:23,840
coaches are available they are booked

2795
01:50:23,840 --> 01:50:26,320
out most of the time so yes

2796
01:50:26,320 --> 01:50:28,480
>> what's the rough utilization

2797
01:50:28,480 --> 01:50:31,760
>> uh it's 80 to 90% in the evening time

2798
01:50:31,760 --> 01:50:32,960
>> in the within the hours

2799
01:50:32,960 --> 01:50:35,040
>> within yes and then we have that one

2800
01:50:35,040 --> 01:50:36,480
designated field that we have open for

2801
01:50:36,480 --> 01:50:38,960
local play so we've been keeping that

2802
01:50:38,960 --> 01:50:41,280
um so that neighbors and others can come

2803
01:50:41,280 --> 01:50:43,920
through and use that field. Yeah. Does

2804
01:50:43,920 --> 01:50:45,199
that answer your question? And I can get

2805
01:50:45,199 --> 01:50:46,480
you more specific numbers if you'd like

2806
01:50:46,480 --> 01:50:46,880
to see.

2807
01:50:46,880 --> 01:50:48,080
>> Yeah, I'd be interested to see those.

2808
01:50:48,080 --> 01:50:48,400
Yeah.

2809
01:50:48,400 --> 01:50:48,800
>> Okay.

2810
01:50:48,800 --> 01:50:50,480
>> Could you send those to the council?

2811
01:50:50,480 --> 01:50:53,040
>> Okay. Yeah. Can John, can you make a

2812
01:50:53,040 --> 01:50:53,920
note of that?

2813
01:50:53,920 --> 01:50:55,440
>> Okay. Thanks,

2814
01:50:55,440 --> 01:50:57,360
>> counselor.

2815
01:50:57,360 --> 01:50:59,520
>> Um has there been any negative impact to

2816
01:50:59,520 --> 01:51:01,760
the quality of the fields that the field

2817
01:51:01,760 --> 01:51:03,600
that is open for community?

2818
01:51:03,600 --> 01:51:05,199
>> Certainly, we haven't seen much. Right.

2819
01:51:05,199 --> 01:51:06,000
And I think

2820
01:51:06,000 --> 01:51:08,000
>> how the usage been on that

2821
01:51:08,000 --> 01:51:10,000
>> of the field, the open field that we

2822
01:51:10,000 --> 01:51:12,239
have, it's minimal. It has been minimal.

2823
01:51:12,239 --> 01:51:13,360
I don't think there's been a major

2824
01:51:13,360 --> 01:51:16,000
announcement that it's been open. And I

2825
01:51:16,000 --> 01:51:17,280
think maybe that's strategic to make

2826
01:51:17,280 --> 01:51:19,360
sure that the local people know about it

2827
01:51:19,360 --> 01:51:21,360
instead of just massively letting

2828
01:51:21,360 --> 01:51:24,960
everybody know, but um it hasn't been

2829
01:51:24,960 --> 01:51:27,840
overly utilized and there hasn't been

2830
01:51:27,840 --> 01:51:29,679
any major damage to the fields that we

2831
01:51:29,679 --> 01:51:32,880
know of yet. Yeah.

2832
01:51:32,880 --> 01:51:34,880
>> Yeah. So, how many fields are

2833
01:51:34,880 --> 01:51:36,080
operational right now?

2834
01:51:36,080 --> 01:51:37,840
>> We have 15 15 fields.

2835
01:51:37,840 --> 01:51:39,520
>> Okay. So, a tournament can use up to 15

2836
01:51:39,520 --> 01:51:40,159
at one time.

2837
01:51:40,159 --> 01:51:40,480
>> Correct.

2838
01:51:40,480 --> 01:51:42,000
>> And how much is it again once it's

2839
01:51:42,000 --> 01:51:43,360
totally done?

2840
01:51:43,360 --> 01:51:45,920
>> 21 fields is the goal is the target.

2841
01:51:45,920 --> 01:51:48,639
>> Are we finding there's a lot of

2842
01:51:48,639 --> 01:51:49,920
tournaments where we don't have enough

2843
01:51:49,920 --> 01:51:50,639
space for them?

2844
01:51:50,639 --> 01:51:53,360
>> Correct. So, this US youth soccer

2845
01:51:53,360 --> 01:51:54,719
premier tournament that we're hosting,

2846
01:51:54,719 --> 01:51:56,320
we are splitting that with Salt Lake.

2847
01:51:56,320 --> 01:51:58,000
So, part of it will be up at the rack

2848
01:51:58,000 --> 01:51:59,440
and part of it will be here. Oh,

2849
01:51:59,440 --> 01:52:01,760
>> okay. So, yes. If we had 21, could we

2850
01:52:01,760 --> 01:52:03,119
host the whole thing?

2851
01:52:03,119 --> 01:52:05,040
>> Most likely. Yes.

2852
01:52:05,040 --> 01:52:06,880
>> And how often does that happen?

2853
01:52:06,880 --> 01:52:08,880
>> So, they're looking at to contract with

2854
01:52:08,880 --> 01:52:10,639
us for two years. So, this may be this

2855
01:52:10,639 --> 01:52:12,239
year and the next, although we don't

2856
01:52:12,239 --> 01:52:14,400
have an official uh contract agreement

2857
01:52:14,400 --> 01:52:14,960
with them yet,

2858
01:52:14,960 --> 01:52:16,480
>> but there's lots of other tournaments.

2859
01:52:16,480 --> 01:52:18,000
>> Oh, yes. Yes.

2860
01:52:18,000 --> 01:52:19,520
>> That's just one weekend out of the year,

2861
01:52:19,520 --> 01:52:19,679
right?

2862
01:52:19,679 --> 01:52:21,040
>> Yeah. This is actually one month out of

2863
01:52:21,040 --> 01:52:22,880
the year. This is this will be a big one

2864
01:52:22,880 --> 01:52:24,719
that we've booked aside for about a

2865
01:52:24,719 --> 01:52:26,560
month for the year. So, yeah.

2866
01:52:26,560 --> 01:52:27,199
>> Yeah.

2867
01:52:27,199 --> 01:52:31,360
>> Sorry, random question. um flies,

2868
01:52:31,360 --> 01:52:33,360
mosquitoes. Have we had any complaints

2869
01:52:33,360 --> 01:52:35,119
from you know

2870
01:52:35,119 --> 01:52:36,000
>> actually very little

2871
01:52:36,000 --> 01:52:37,920
>> participants about those types? I know

2872
01:52:37,920 --> 01:52:40,880
there was a lot of concern around that

2873
01:52:40,880 --> 01:52:41,679
deterrent.

2874
01:52:41,679 --> 01:52:43,360
>> No, I would say the bigger challenge for

2875
01:52:43,360 --> 01:52:44,960
us out there is actually wind just

2876
01:52:44,960 --> 01:52:46,560
because it's so open and where it's at

2877
01:52:46,560 --> 01:52:47,280
on

2878
01:52:47,280 --> 01:52:48,320
>> complaints about wind.

2879
01:52:48,320 --> 01:52:49,920
>> Yeah, wind. Wind will come. It'll affect

2880
01:52:49,920 --> 01:52:51,280
our sprinklers. It will do some other

2881
01:52:51,280 --> 01:52:53,360
things to us. Wind wind has been the the

2882
01:52:53,360 --> 01:52:54,880
bigger factor. I don't think there's a

2883
01:52:54,880 --> 01:52:56,480
lot that draws the flies and mosquitoes

2884
01:52:56,480 --> 01:52:57,520
there. We don't have any lights there

2885
01:52:57,520 --> 01:53:00,000
and so we very conscientious of that uh

2886
01:53:00,000 --> 01:53:01,599
in the initial design of that. So,

2887
01:53:01,599 --> 01:53:03,280
>> and tournaments don't have a desire to

2888
01:53:03,280 --> 01:53:04,800
have night play.

2889
01:53:04,800 --> 01:53:06,800
>> I'm sure they would. We just don't have

2890
01:53:06,800 --> 01:53:08,960
lights. And then it also allows us to

2891
01:53:08,960 --> 01:53:10,719
kind of cap the time that they're able

2892
01:53:10,719 --> 01:53:12,480
to use so that we don't ruin or destroy

2893
01:53:12,480 --> 01:53:13,920
fields. We need some growback time in

2894
01:53:13,920 --> 01:53:15,119
there as well.

2895
01:53:15,119 --> 01:53:18,480
>> So, yeah. Uh well, another question is

2896
01:53:18,480 --> 01:53:21,040
on these economic impact numbers. Could

2897
01:53:21,040 --> 01:53:22,960
you just give us a summary of like the

2898
01:53:22,960 --> 01:53:26,320
key assumptions that go into that?

2899
01:53:26,320 --> 01:53:29,119
the economic impact numbers that go into

2900
01:53:29,119 --> 01:53:30,960
>> the for specifically on your sports

2901
01:53:30,960 --> 01:53:32,159
performance measures. I think they're

2902
01:53:32,159 --> 01:53:33,920
specifically epic sports park related

2903
01:53:33,920 --> 01:53:37,669
economic impacts.

2904
01:53:37,679 --> 01:53:40,480
» Yes. Um

2905
01:53:40,480 --> 01:53:43,040
is there one specific that you're

2906
01:53:43,040 --> 01:53:45,520
>> is that row where it's had 3.5 million

2907
01:53:45,520 --> 01:53:49,280
in 2025 12.5 million this year and then

2908
01:53:49,280 --> 01:53:51,920
a and then an assumption of 24.5

2909
01:53:51,920 --> 01:53:52,960
million. I'm just curious if you could

2910
01:53:52,960 --> 01:53:54,000
like kind of walk us through the

2911
01:53:54,000 --> 01:53:54,800
assumptions to

2912
01:53:54,800 --> 01:53:56,000
>> So the first year that we opened we

2913
01:53:56,000 --> 01:53:58,080
opened in the fall and so that's why you

2914
01:53:58,080 --> 01:54:00,800
only saw 3.5 million so it wasn't a full

2915
01:54:00,800 --> 01:54:03,599
season worth of of usage and then this

2916
01:54:03,599 --> 01:54:07,199
uh 12.5 uh was our is our current rate

2917
01:54:07,199 --> 01:54:08,719
and then that that's our target for this

2918
01:54:08,719 --> 01:54:10,560
year. So with the additional turns that

2919
01:54:10,560 --> 01:54:13,440
we have spring of this year into right

2920
01:54:13,440 --> 01:54:15,920
before July that will add to the 18.5

2921
01:54:15,920 --> 01:54:18,880
that we're projecting and then 24.5 is

2922
01:54:18,880 --> 01:54:21,040
our target for 27 is what we want to

2923
01:54:21,040 --> 01:54:22,320
accomplish in 27.

2924
01:54:22,320 --> 01:54:23,360
>> Yeah. What what

2925
01:54:23,360 --> 01:54:24,560
>> we're asking though is that that's

2926
01:54:24,560 --> 01:54:25,920
helpful context but kind of like what

2927
01:54:25,920 --> 01:54:28,960
are the assumptions in the model that to

2928
01:54:28,960 --> 01:54:30,560
come up with those numbers?

2929
01:54:30,560 --> 01:54:32,960
>> What goes into making that number?

2930
01:54:32,960 --> 01:54:36,239
>> Right. So the way that uh there's two

2931
01:54:36,239 --> 01:54:38,000
things we've been using placer AI data

2932
01:54:38,000 --> 01:54:39,920
one to to calculate these numbers and

2933
01:54:39,920 --> 01:54:42,880
the second thing is also um we're kind

2934
01:54:42,880 --> 01:54:45,199
of corroborating that with the numbers

2935
01:54:45,199 --> 01:54:46,960
that we get from the visitors bureau and

2936
01:54:46,960 --> 01:54:49,119
the visitors bureau's model from what I

2937
01:54:49,119 --> 01:54:51,199
understand from uh explore Utah Valley

2938
01:54:51,199 --> 01:54:52,960
is that they get their numbers based on

2939
01:54:52,960 --> 01:54:56,960
hotel room nights and so there's a calculation that goes in that

2940
01:54:56,960 --> 01:54:58,800
says if you stay overnight then this is

2941
01:54:58,800 --> 01:55:00,960
the amount that you would spend in food

2942
01:55:00,960 --> 01:55:03,760
hotel lodging rental are and so that

2943
01:55:03,760 --> 01:55:05,280
those are the assumptions that go into

2944
01:55:05,280 --> 01:55:07,119
those numbers is that calculation and I

2945
01:55:07,119 --> 01:55:08,719
don't have the exact numbers in that

2946
01:55:08,719 --> 01:55:10,320
calculation but I know that theirs is

2947
01:55:10,320 --> 01:55:12,080
based there's one calculation that's

2948
01:55:12,080 --> 01:55:14,239
based on hotel room nights and there are

2949
01:55:14,239 --> 01:55:16,639
others that we pull based on economic

2950
01:55:16,639 --> 01:55:18,880
impact from placer AI and we kind of

2951
01:55:18,880 --> 01:55:19,920
compare those two to make sure that

2952
01:55:19,920 --> 01:55:22,000
they're pretty similar

2953
01:55:22,000 --> 01:55:26,470
>> yeah okay

2954
01:55:26,480 --> 01:55:28,480
» so last year I didn't know I noticed

2955
01:55:28,480 --> 01:55:30,080
that there was quite a few weekends

2956
01:55:30,080 --> 01:55:34,480
without tournaments are we more filling

2957
01:55:34,480 --> 01:55:36,480
that role. So, we have tournaments more

2958
01:55:36,480 --> 01:55:38,719
there or are we still vacant for quite a

2959
01:55:38,719 --> 01:55:39,679
bit of this season?

2960
01:55:39,679 --> 01:55:40,960
>> We're more full. And I guess that goes

2961
01:55:40,960 --> 01:55:42,480
back to the previous question as well.

2962
01:55:42,480 --> 01:55:45,760
Almost all of our bookable times are

2963
01:55:45,760 --> 01:55:49,599
full, meaning that good weekends, where other sports don't

2964
01:55:49,599 --> 01:55:50,960
conflict. And there are some weekends

2965
01:55:50,960 --> 01:55:52,719
that other tournaments are happening in

2966
01:55:52,719 --> 01:55:54,400
other locations and so they're not as

2967
01:55:54,400 --> 01:55:56,560
popular. Or it if it's a more Memorial

2968
01:55:56,560 --> 01:55:58,000
Day tournament or things like that, it

2969
01:55:58,000 --> 01:56:00,000
might be a more heavily soughtafter

2970
01:56:00,000 --> 01:56:01,840
weekend. And so they calculate all of

2971
01:56:01,840 --> 01:56:03,840
that in uh for the ice world it's

2972
01:56:03,840 --> 01:56:05,599
President's Day, right? Certain certain

2973
01:56:05,599 --> 01:56:07,119
times they'll have certain tournaments

2974
01:56:07,119 --> 01:56:08,800
that happen. Those that have kids in

2975
01:56:08,800 --> 01:56:10,159
sports probably recognize that there are

2976
01:56:10,159 --> 01:56:12,080
certain times that they definitely have

2977
01:56:12,080 --> 01:56:14,800
certain

2978
01:56:14,800 --> 01:56:17,360
uh set tournaments that happen. And ours

2979
01:56:17,360 --> 01:56:18,719
for those tournament weekends are

2980
01:56:18,719 --> 01:56:20,639
generally booked. So we don't have every

2981
01:56:20,639 --> 01:56:22,320
weekend booked, but it's almost one a

2982
01:56:22,320 --> 01:56:24,800
month uh at the Epic Sports Park.

2983
01:56:24,800 --> 01:56:25,920
>> One weekend a month.

2984
01:56:25,920 --> 01:56:27,920
>> Almost one a month. Yeah. If not more

2985
01:56:27,920 --> 01:56:31,840
for those times. Yeah. Okay.

2986
01:56:31,840 --> 01:56:34,080
Uh recreation center recreation center

2987
01:56:34,080 --> 01:56:38,400
has no uh asks. Um

2988
01:56:38,400 --> 01:56:41,280
and uh our recreation center performance

2989
01:56:41,280 --> 01:56:45,679
measures uh are currently

2990
01:56:45,679 --> 01:56:47,679
down uh compared to current years just

2991
01:56:47,679 --> 01:56:50,080
to be completely honest. Uh several

2992
01:56:50,080 --> 01:56:53,199
factors that go into that. Um

2993
01:56:53,199 --> 01:56:55,040
uh but we're hopeful. There is our

2994
01:56:55,040 --> 01:56:57,520
upcoming season. So, their busy season

2995
01:56:57,520 --> 01:56:58,960
has kind of broken into two with the

2996
01:56:58,960 --> 01:57:00,239
summertime. So, we're coming into that

2997
01:57:00,239 --> 01:57:02,159
busy season as the summer goes along.

2998
01:57:02,159 --> 01:57:03,840
They've always been a self-sustaining

2999
01:57:03,840 --> 01:57:05,840
facility. We're looking to hopefully uh

3000
01:57:05,840 --> 01:57:09,840
accomplish that again this year. Um

3001
01:57:09,840 --> 01:57:12,159
and uh the other thing to note is that

3002
01:57:12,159 --> 01:57:14,080
our weekly and our fitness classes and

3003
01:57:14,080 --> 01:57:15,679
class attendance and our programs have

3004
01:57:15,679 --> 01:57:17,360
been up. So, those are a couple of our

3005
01:57:17,360 --> 01:57:18,400
performance measures.

3006
01:57:18,400 --> 01:57:21,040
>> So, so what is down then? Memberships.

3007
01:57:21,040 --> 01:57:23,119
>> Memberships are down and revenue looks

3008
01:57:23,119 --> 01:57:24,400
like it's a little down compared to

3009
01:57:24,400 --> 01:57:26,960
previous years. Um, did we implement

3010
01:57:26,960 --> 01:57:30,639
automatic renewal on memberships?

3011
01:57:30,639 --> 01:57:34,080
>> Yes and no. Yes.

3012
01:57:34,080 --> 01:57:35,920
>> Just trying to think.

3013
01:57:35,920 --> 01:57:37,360
>> Okay. What do you mean yes and no and

3014
01:57:37,360 --> 01:57:37,679
yes?

3015
01:57:37,679 --> 01:57:39,520
>> So we switched to a new software explore

3016
01:57:39,520 --> 01:57:40,800
software and that's one of our key

3017
01:57:40,800 --> 01:57:41,280
metrics.

3018
01:57:41,280 --> 01:57:43,119
>> And so that now does automatic renewals.

3019
01:57:43,119 --> 01:57:44,400
>> It will. But we have

3020
01:57:44,400 --> 01:57:45,199
>> that might help.

3021
01:57:45,199 --> 01:57:46,639
>> We have different memberships that don't

3022
01:57:46,639 --> 01:57:48,400
do automatic. So we have various

3023
01:57:48,400 --> 01:57:50,159
memberships. So ones that we do have

3024
01:57:50,159 --> 01:57:52,320
memberships that roll over. Yes, they do

3025
01:57:52,320 --> 01:57:53,920
continue in memberships that don't that

3026
01:57:53,920 --> 01:57:54,960
are just month-to-month. And we

3027
01:57:54,960 --> 01:57:56,960
>> So, it looks like day passes sold is way

3028
01:57:56,960 --> 01:57:57,360
down.

3029
01:57:57,360 --> 01:58:00,080
>> Day passes are also a little low. Yeah.

3030
01:58:00,080 --> 01:58:02,639
>> Uh to that to that point, which one?

3031
01:58:02,639 --> 01:58:04,320
Because I I know historically your

3032
01:58:04,320 --> 01:58:05,679
monthly has autorenewed, but your

3033
01:58:05,679 --> 01:58:08,000
annually have not autorenewed. Has that

3034
01:58:08,000 --> 01:58:08,800
been corrected?

3035
01:58:08,800 --> 01:58:10,320
>> We've just made a change. So, you can

3036
01:58:10,320 --> 01:58:12,239
get a monthtomonth you can. And then

3037
01:58:12,239 --> 01:58:13,599
we've got a three-month and a yearly

3038
01:58:13,599 --> 01:58:15,440
membership. And for the yearly

3039
01:58:15,440 --> 01:58:17,280
membership, it's like paid in full when

3040
01:58:17,280 --> 01:58:19,360
you start and a three-month is paid in

3041
01:58:19,360 --> 01:58:21,040
full uh for the three months. And

3042
01:58:21,040 --> 01:58:22,560
there's different price breaks and

3043
01:58:22,560 --> 01:58:24,159
discounts that come along with those

3044
01:58:24,159 --> 01:58:26,560
different um fees that are associated

3045
01:58:26,560 --> 01:58:28,400
with that. The ones that will roll over

3046
01:58:28,400 --> 01:58:30,080
were our yearly ones, our annual ones

3047
01:58:30,080 --> 01:58:32,239
that we would continue to roll over.

3048
01:58:32,239 --> 01:58:34,639
>> Okay. I have a question just I think in

3049
01:58:34,639 --> 01:58:37,280
general, what is the time period on the

3050
01:58:37,280 --> 01:58:39,679
current column in all these charts?

3051
01:58:39,679 --> 01:58:42,639
>> It's as current as meaning year to date.

3052
01:58:42,639 --> 01:58:43,679
>> It's like last month.

3053
01:58:43,679 --> 01:58:46,159
>> It's is it is it the year of 2026 or is

3054
01:58:46,159 --> 01:58:49,760
the budget year of 2026? It's this year

3055
01:58:49,760 --> 01:58:51,280
of 26. So budget

3056
01:58:51,280 --> 01:58:53,440
>> January to December.

3057
01:58:53,440 --> 01:58:53,920
>> Sorry.

3058
01:58:53,920 --> 01:58:55,040
>> Budget.

3059
01:58:55,040 --> 01:58:58,800
>> It's the fiscal year.

3060
01:58:58,800 --> 01:58:59,119
>> Okay.

3061
01:58:59,119 --> 01:59:00,000
>> We've been going.

3062
01:59:00,000 --> 01:59:01,920
>> Sorry. Are we We're compare. I assume we

3063
01:59:01,920 --> 01:59:03,280
were comparing year to date.

3064
01:59:03,280 --> 01:59:05,040
>> No, it's I don't I think that was the

3065
01:59:05,040 --> 01:59:06,239
question.

3066
01:59:06,239 --> 01:59:09,440
>> 2025. That's all of 2025, but 2026 is

3067
01:59:09,440 --> 01:59:10,080
how much?

3068
01:59:10,080 --> 01:59:12,400
>> Correct. So that's up to this last

3069
01:59:12,400 --> 01:59:14,320
month. So this would be February of this

3070
01:59:14,320 --> 01:59:16,719
year for this budget for this fiscal

3071
01:59:16,719 --> 01:59:18,320
year. still July. So

3072
01:59:18,320 --> 01:59:20,239
>> So we're way behind run rate to get to

3073
01:59:20,239 --> 01:59:22,400
100% cost recovery. That's correct.

3074
01:59:22,400 --> 01:59:23,280
>> Yes.

3075
01:59:23,280 --> 01:59:26,719
>> But most of your most of most of the

3076
01:59:26,719 --> 01:59:28,159
action happens in the summer, right?

3077
01:59:28,159 --> 01:59:29,760
Isn't that what we're talking about?

3078
01:59:29,760 --> 01:59:30,560
>> Correct. Okay.

3079
01:59:30,560 --> 01:59:32,080
>> But does the month Oh, sorry. Sorry.

3080
01:59:32,080 --> 01:59:33,440
>> Go ahead.

3081
01:59:33,440 --> 01:59:35,679
>> Um I was just going to say and so we are

3082
01:59:35,679 --> 01:59:37,840
going to raise fees across the board for

3083
01:59:37,840 --> 01:59:38,639
this one as well.

3084
01:59:38,639 --> 01:59:39,760
>> These we're looking at for our

3085
01:59:39,760 --> 01:59:41,840
consolidated fee. We've suggested some

3086
01:59:41,840 --> 01:59:43,599
fee changes there at the recreation

3087
01:59:43,599 --> 01:59:47,040
center. Can we can we get just your

3088
01:59:47,040 --> 01:59:48,719
consolidated fee stages? Sure.

3089
01:59:48,719 --> 01:59:51,199
>> I would like to see those in the budget

3090
01:59:51,199 --> 01:59:52,480
presentations

3091
01:59:52,480 --> 01:59:54,159
>> because we're we're the ones that have

3092
01:59:54,159 --> 01:59:54,880
to

3093
01:59:54,880 --> 01:59:55,360
>> absolutely

3094
01:59:55,360 --> 01:59:56,639
>> approve that. Absolutely.

3095
01:59:56,639 --> 01:59:58,080
>> And we're the ones that are accountable

3096
01:59:58,080 --> 02:00:00,159
to our residents and so when these

3097
02:00:00,159 --> 02:00:01,679
things start going up, we need to know

3098
02:00:01,679 --> 02:00:03,360
what we're improving and why.

3099
02:00:03,360 --> 02:00:03,760
>> Yeah.

3100
02:00:03,760 --> 02:00:05,520
Let's make a note of that, Justin,

3101
02:00:05,520 --> 02:00:07,760
for next year.

3102
02:00:07,760 --> 02:00:08,400
>> Absolutely.

3103
02:00:08,400 --> 02:00:09,119
>> Thanks.

3104
02:00:09,119 --> 02:00:12,800
>> Yeah. Um so fiscal year on this year-to-

3105
02:00:12,800 --> 02:00:15,119
date current ends in end of June.

3106
02:00:15,119 --> 02:00:15,440
>> Correct.

3107
02:00:15,440 --> 02:00:17,040
>> So it does not count July.

3108
02:00:17,040 --> 02:00:17,520
>> Correct.

3109
02:00:17,520 --> 02:00:20,000
>> So we have effectively

3110
02:00:20,000 --> 02:00:21,840
Mar is March in this numbers because I I

3111
02:00:21,840 --> 02:00:23,119
know like for example the golf course

3112
02:00:23,119 --> 02:00:25,520
was halfway through March. So that

3113
02:00:25,520 --> 02:00:26,719
>> is not in the numbers yet.

3114
02:00:26,719 --> 02:00:27,840
>> So it's February

3115
02:00:27,840 --> 02:00:28,400
>> right?

3116
02:00:28,400 --> 02:00:30,400
>> So we have March, April, May, June. So

3117
02:00:30,400 --> 02:00:32,400
we have four months to recover 60% of

3118
02:00:32,400 --> 02:00:35,760
cost. Seems like that might not happen.

3119
02:00:35,760 --> 02:00:38,719
>> Correct. Now these are based on recovery

3120
02:00:38,719 --> 02:00:41,119
of hitting 100%.

3121
02:00:41,119 --> 02:00:43,119
There is a way that if our revenues

3122
02:00:43,119 --> 02:00:44,639
don't hit that much we bal we self

3123
02:00:44,639 --> 02:00:46,239
balance right so which means we spend

3124
02:00:46,239 --> 02:00:49,360
less we we um we balance that budget

3125
02:00:49,360 --> 02:00:50,960
based on the amount of revenues that we

3126
02:00:50,960 --> 02:00:54,719
bring in. So even though it might

3127
02:00:54,719 --> 02:00:56,400
>> So what we working specifically what

3128
02:00:56,400 --> 02:00:57,920
would you balance that with? Take us

3129
02:00:57,920 --> 02:01:00,480
through what that looks like.

3130
02:01:00,480 --> 02:01:04,800
Uh so for instance if um

3131
02:01:04,800 --> 02:01:07,520
uh we've recognized that there is a

3132
02:01:07,520 --> 02:01:09,119
trend that we are not making as much as

3133
02:01:09,119 --> 02:01:11,520
we as we have in previous years. So we

3134
02:01:11,520 --> 02:01:13,040
would recognize that and then spend

3135
02:01:13,040 --> 02:01:16,880
less. So our expenses don't utilize the

3136
02:01:16,880 --> 02:01:18,800
necessarily what was budgeted before if

3137
02:01:18,800 --> 02:01:20,800
the revenues do not make the amount that

3138
02:01:20,800 --> 02:01:22,400
we could spend towards those budgeted

3139
02:01:22,400 --> 02:01:23,520
items.

3140
02:01:23,520 --> 02:01:25,280
>> And that would assume that you have a

3141
02:01:25,280 --> 02:01:27,679
very high variable cost instead of a

3142
02:01:27,679 --> 02:01:29,599
high fixed cost.

3143
02:01:29,599 --> 02:01:30,320
Correct.

3144
02:01:30,320 --> 02:01:31,199
>> Is that accurate?

3145
02:01:31,199 --> 02:01:35,350
>> Yeah, I think so. Yeah.

3146
02:01:35,360 --> 02:01:37,360
» Um I'd just be interested to see the

3147
02:01:37,360 --> 02:01:39,440
numbers in terms of how you make up that

3148
02:01:39,440 --> 02:01:42,320
kind of balance.

3149
02:01:42,320 --> 02:01:44,800
Yes, it it will be tough and we may need

3150
02:01:44,800 --> 02:01:46,239
to balance some of this throughout the

3151
02:01:46,239 --> 02:01:47,920
department. We're hopeful that that can

3152
02:01:47,920 --> 02:01:50,159
happen. Uh we've been very responsible

3153
02:01:50,159 --> 02:01:51,679
in some of the things that we've been

3154
02:01:51,679 --> 02:01:55,040
doing. Um and hopefully uh we don't need

3155
02:01:55,040 --> 02:01:56,320
to ask for anything anything

3156
02:01:56,320 --> 02:01:57,679
additionally, but that we can pounce

3157
02:01:57,679 --> 02:01:59,440
that. Yeah.

3158
02:01:59,440 --> 02:02:01,440
Well, I was just going like on the day

3159
02:02:01,440 --> 02:02:04,080
passes, what percentage of your day

3160
02:02:04,080 --> 02:02:06,480
passes end up getting sold in the months

3161
02:02:06,480 --> 02:02:09,040
of like May and June? Like how much do

3162
02:02:09,040 --> 02:02:10,480
you think you're going to be able to

3163
02:02:10,480 --> 02:02:13,119
catch up with the start of summer on

3164
02:02:13,119 --> 02:02:14,400
that portion?

3165
02:02:14,400 --> 02:02:16,159
>> Day passes and memberships make up a

3166
02:02:16,159 --> 02:02:18,080
majority of what we do. So memberships

3167
02:02:18,080 --> 02:02:20,080
is the high amount. I think that's John,

3168
02:02:20,080 --> 02:02:25,109
do you remember the numbers on that?

3169
02:02:25,119 --> 02:02:30,719
I think that's over 40 or 50% of our our revenues and then day passes is

3170
02:02:30,719 --> 02:02:32,320
follows that up very heavily with the

3171
02:02:32,320 --> 02:02:34,080
amount of revenues that we bring in. So

3172
02:02:34,080 --> 02:02:35,360
that is very high. So we are

3173
02:02:35,360 --> 02:02:36,800
anticipating and hoping that our day

3174
02:02:36,800 --> 02:02:39,360
passes will help uh catch us up

3175
02:02:39,360 --> 02:02:42,159
>> and I I've had numbers last or neighbors

3176
02:02:42,159 --> 02:02:43,920
last year talk about you know you can

3177
02:02:43,920 --> 02:02:46,000
get just a three-month pass for the

3178
02:02:46,000 --> 02:02:49,199
summertime and so there may be you know

3179
02:02:49,199 --> 02:02:52,000
those sales that we have coming up

3180
02:02:52,000 --> 02:02:54,480
pretty soon. I'm just wondering like how

3181
02:02:54,480 --> 02:02:57,520
close we anticipate we'll be by the the

3182
02:02:57,520 --> 02:02:59,280
end of the fiscal year because we have

3183
02:02:59,280 --> 02:03:03,990
these seasonal demand issues.

3184
02:03:04,000 --> 02:03:06,000
» We are also wondering the same thing.

3185
02:03:06,000 --> 02:03:07,119
>> Okay,

3186
02:03:07,119 --> 02:03:08,960
>> there are there are a lot of variables

3187
02:03:08,960 --> 02:03:11,920
and a lot of new nuances here. Uh Provo

3188
02:03:11,920 --> 02:03:13,440
has done an amazing job and our

3189
02:03:13,440 --> 02:03:15,920
recreation center is amazing and I think

3190
02:03:15,920 --> 02:03:17,920
there's an appetite for many that we've

3191
02:03:17,920 --> 02:03:19,679
seen throughout the years to duplicate

3192
02:03:19,679 --> 02:03:24,080
and replicate this. So there are um

3193
02:03:24,080 --> 02:03:26,000
there are additional pressures that I

3194
02:03:26,000 --> 02:03:28,320
that we see outside of here that are

3195
02:03:28,320 --> 02:03:30,239
drawing patrons to other areas. Right.

3196
02:03:30,239 --> 02:03:31,599
Spanish Fork has a new recreation

3197
02:03:31,599 --> 02:03:32,960
center. Springville has come online

3198
02:03:32,960 --> 02:03:35,360
since then. Right. We've got Vasa's

3199
02:03:35,360 --> 02:03:37,599
24-hour fitnesses, things that are

3200
02:03:37,599 --> 02:03:39,199
attracting patrons in other directions

3201
02:03:39,199 --> 02:03:40,960
that we are Yes. managing. And this

3202
02:03:40,960 --> 02:03:42,239
looks like it's the first year that

3203
02:03:42,239 --> 02:03:43,840
we're looking to see maybe an

3204
02:03:43,840 --> 02:03:49,360
interesting uh effect of those types of challenges that we have.

3205
02:03:49,360 --> 02:03:50,719
>> Yeah. just, you know, that's that's

3206
02:03:50,719 --> 02:03:52,560
where what's behind my questions is like

3207
02:03:52,560 --> 02:03:54,239
the competitive landscape has clearly

3208
02:03:54,239 --> 02:03:56,960
changed and as we're seeing it in the

3209
02:03:56,960 --> 02:03:58,639
early indicators and I just want to make

3210
02:03:58,639 --> 02:04:00,560
sure that we have like a plan so that

3211
02:04:00,560 --> 02:04:01,920
this doesn't become a cost center for

3212
02:04:01,920 --> 02:04:02,560
the city.

3213
02:04:02,560 --> 02:04:03,599
>> Correct. Correct.

3214
02:04:03,599 --> 02:04:06,320
>> Yeah. In fact, what I would find helpful

3215
02:04:06,320 --> 02:04:09,119
is to actually see what your projections

3216
02:04:09,119 --> 02:04:09,760
are.

3217
02:04:09,760 --> 02:04:10,159
>> Yeah.

3218
02:04:10,159 --> 02:04:12,639
>> Um consolidated fee schedule and then

3219
02:04:12,639 --> 02:04:14,880
also to break down what you're seeing

3220
02:04:14,880 --> 02:04:17,360
the trends and what you plan to do.

3221
02:04:17,360 --> 02:04:19,920
>> Correct. Um again I don't think anyone

3222
02:04:19,920 --> 02:04:21,679
questions that it's a tremendous asset

3223
02:04:21,679 --> 02:04:24,639
to the city. It it it's absolutely a

3224
02:04:24,639 --> 02:04:25,599
wonderful asset

3225
02:04:25,599 --> 02:04:26,159
>> right

3226
02:04:26,159 --> 02:04:28,800
>> and um I just still have maybe others I

3227
02:04:28,800 --> 02:04:30,159
don't know if others feel the same but I

3228
02:04:30,159 --> 02:04:32,480
would find it helpful to have more data

3229
02:04:32,480 --> 02:04:33,840
especially in terms of what you're

3230
02:04:33,840 --> 02:04:35,599
seeing and what you're planning and what

3231
02:04:35,599 --> 02:04:37,040
the contingencies are.

3232
02:04:37,040 --> 02:04:38,639
>> Right. So I' I'd love to see

3233
02:04:38,639 --> 02:04:40,560
>> so Foster if you could come back again

3234
02:04:40,560 --> 02:04:42,880
before budget time like arrange it with

3235
02:04:42,880 --> 02:04:43,840
Justin

3236
02:04:43,840 --> 02:04:46,960
>> but see your c your CIP stuff or your

3237
02:04:46,960 --> 02:04:48,480
consolidate schedule with it

3238
02:04:48,480 --> 02:04:50,239
>> and then to see more of your forecasting

3239
02:04:50,239 --> 02:04:51,920
and compare those percentages of how

3240
02:04:51,920 --> 02:04:53,119
much did you make up the last three

3241
02:04:53,119 --> 02:04:55,040
months historically or that kind of a

3242
02:04:55,040 --> 02:04:57,840
thing and stats maybe on like what

3243
02:04:57,840 --> 02:04:59,920
you've lost to I know I talked to

3244
02:04:59,920 --> 02:05:01,760
Spanish Fork too they said

3245
02:05:01,760 --> 02:05:03,599
>> they they opened one too. Yeah.

3246
02:05:03,599 --> 02:05:04,560
>> And they said, "You guys are very

3247
02:05:04,560 --> 02:05:06,080
helpful and a huge asset to them." But

3248
02:05:06,080 --> 02:05:06,560
they

3249
02:05:06,560 --> 02:05:08,080
>> stop helping these guys.

3250
02:05:08,080 --> 02:05:09,760
>> I know. But they know that some of their

3251
02:05:09,760 --> 02:05:11,679
residents use art, which seems crazy to

3252
02:05:11,679 --> 02:05:14,639
me to drive that far for a gym. But

3253
02:05:14,639 --> 02:05:17,679
>> we have the nicest pool. I mean, I've

3254
02:05:17,679 --> 02:05:19,280
>> My kids love to swim and I've driven

3255
02:05:19,280 --> 02:05:20,960
this whole state looking for good pools

3256
02:05:20,960 --> 02:05:23,440
for these kids. And we have the nicest

3257
02:05:23,440 --> 02:05:24,080
rec center.

3258
02:05:24,080 --> 02:05:25,040
>> People came from Spanishport and

3259
02:05:25,040 --> 02:05:26,159
Springville regularly and now they

3260
02:05:26,159 --> 02:05:26,719
don't. So,

3261
02:05:26,719 --> 02:05:27,920
>> correct. I'm saying that's what I'm

3262
02:05:27,920 --> 02:05:28,960
saying.

3263
02:05:28,960 --> 02:05:30,639
>> The secret sauce is out, right? people

3264
02:05:30,639 --> 02:05:32,560
have known that we've I mean years past

3265
02:05:32,560 --> 02:05:34,480
we've always contributed back to the

3266
02:05:34,480 --> 02:05:36,000
general fund right from our recreation

3267
02:05:36,000 --> 02:05:38,320
center. So these are things that we are

3268
02:05:38,320 --> 02:05:39,840
very much aware of. We're trying to

3269
02:05:39,840 --> 02:05:41,360
mitigate and I can get you more details.

3270
02:05:41,360 --> 02:05:45,599
We we actually do talk and we have very in-depth conversations on these.

3271
02:05:45,599 --> 02:05:45,840
Great.

3272
02:05:45,840 --> 02:05:47,520
>> I heard there was a measles outbreak in

3273
02:05:47,520 --> 02:05:48,320
Springville. So

3274
02:05:48,320 --> 02:05:49,280
>> I I absolutely

3275
02:05:49,280 --> 02:05:54,790
>> just start spreading those rumors.

3276
02:05:54,800 --> 02:06:01,430
» Oh shoot. That is hot mics.

3277
02:06:01,440 --> 02:06:05,830
Hey, I'm still here.

3278
02:06:05,840 --> 02:06:07,199
» Uh, some of the amazing things that

3279
02:06:07,199 --> 02:06:08,960
we've done, uh, we did transition to

3280
02:06:08,960 --> 02:06:11,440
explore software, uh, and we repl our

3281
02:06:11,440 --> 02:06:12,960
outdoor wave pool. So, those are some

3282
02:06:12,960 --> 02:06:14,960
cool things at the rec center. Special

3283
02:06:14,960 --> 02:06:17,040
events. Special events continue to be,

3284
02:06:17,040 --> 02:06:19,840
uh, some of our high highest, uh, most

3285
02:06:19,840 --> 02:06:22,000
valued city services as as part of our

3286
02:06:22,000 --> 02:06:24,239
surveys. Uh, connecting residents and

3287
02:06:24,239 --> 02:06:25,679
promoting civic pride, bringing the

3288
02:06:25,679 --> 02:06:27,599
community together in meaningful ways.

3289
02:06:27,599 --> 02:06:30,800
Um the uh the fees that are involved

3290
02:06:30,800 --> 02:06:32,159
with special events don't completely

3291
02:06:32,159 --> 02:06:33,920
cover the cost. We have many free events

3292
02:06:33,920 --> 02:06:35,840
that we do, but we use every efficiency

3293
02:06:35,840 --> 02:06:37,840
possible uh to make sure that they're as

3294
02:06:37,840 --> 02:06:42,000
affordable as possible to residents.

3295
02:06:42,000 --> 02:06:43,920
Cubby Center for the Arts. Uh there are

3296
02:06:43,920 --> 02:06:46,159
no asks or needs for the CVY Center. Uh

3297
02:06:46,159 --> 02:06:49,840
these are their performance measures. Um

3298
02:06:49,840 --> 02:06:52,719
and some of their key accomplishments

3299
02:06:52,719 --> 02:06:55,280
are I think some of their great lineups

3300
02:06:55,280 --> 02:06:56,400
that they have this year. Mrs.

3301
02:06:56,400 --> 02:06:58,880
Doubtfire, Tony Ganza, Colani Pa uh were

3302
02:06:58,880 --> 02:07:01,440
some of the few to speak about. Uh but

3303
02:07:01,440 --> 02:07:03,440
they have had an amazing time. Any

3304
02:07:03,440 --> 02:07:04,719
questions? Yeah,

3305
02:07:04,719 --> 02:07:07,280
>> just overall economic health of the CVY.

3306
02:07:07,280 --> 02:07:08,000
>> Yes,

3307
02:07:08,000 --> 02:07:10,320
>> we making money. Is it a cost center?

3308
02:07:10,320 --> 02:07:11,760
You know, just give me a high level

3309
02:07:11,760 --> 02:07:12,560
overview.

3310
02:07:12,560 --> 02:07:14,320
>> Yes. So, the CVY center does have a have

3311
02:07:14,320 --> 02:07:15,920
a subsidy. I think it's close to

3312
02:07:15,920 --> 02:07:20,079
$500,000 subsidy. Um and also, uh wrap

3313
02:07:20,079 --> 02:07:21,440
tax funding goes to that through the

3314
02:07:21,440 --> 02:07:24,000
arts. Uh the CVY Center is doing well,

3315
02:07:24,000 --> 02:07:25,520
healthy operationally. they've never

3316
02:07:25,520 --> 02:07:28,320
been better. Uh they probably have seen

3317
02:07:28,320 --> 02:07:32,400
would have liked to see more uh or

3318
02:07:32,400 --> 02:07:34,320
better attendance or ticket sales as far

3319
02:07:34,320 --> 02:07:35,599
as the bigger shows that they

3320
02:07:35,599 --> 02:07:37,360
>> So so that's the main. It's not like we

3321
02:07:37,360 --> 02:07:38,960
don't have enough programming. It's that

3322
02:07:38,960 --> 02:07:40,800
the programming isn't attended well

3323
02:07:40,800 --> 02:07:41,360
enough.

3324
02:07:41,360 --> 02:07:44,000
>> It there isn't there the way

3325
02:07:44,000 --> 02:07:46,560
>> or do we have open slots throughout the

3326
02:07:46,560 --> 02:07:47,040
year?

3327
02:07:47,040 --> 02:07:49,360
>> No, the booking is very competitive.

3328
02:07:49,360 --> 02:07:50,880
Right. So if you're a dance company or

3329
02:07:50,880 --> 02:07:53,040
if you're people come here I think

3330
02:07:53,040 --> 02:07:55,440
historically we've seen the CVY as as

3331
02:07:55,440 --> 02:07:56,960
>> half my year is spent at the CVY.

3332
02:07:56,960 --> 02:07:57,520
>> Yes.

3333
02:07:57,520 --> 02:07:59,199
>> Personal programming doesn't fill.

3334
02:07:59,199 --> 02:07:59,840
>> That is correct.

3335
02:07:59,840 --> 02:08:00,560
>> Doesn't sell seats.

3336
02:08:00,560 --> 02:08:02,400
>> So a lot of time and everybody sees the

3337
02:08:02,400 --> 02:08:04,480
CVY center programs as the CVY center.

3338
02:08:04,480 --> 02:08:06,480
So anything that we do produce or how it

3339
02:08:06,480 --> 02:08:08,079
comes in is seen as the Cubby Center

3340
02:08:08,079 --> 02:08:09,520
regardless of whether or not that's a

3341
02:08:09,520 --> 02:08:11,280
rental or something that we've invited

3342
02:08:11,280 --> 02:08:12,639
to come in. And so there's a difference

3343
02:08:12,639 --> 02:08:14,400
there. And then some of the bigger shows

3344
02:08:14,400 --> 02:08:15,760
that we've had, we just haven't seen the

3345
02:08:15,760 --> 02:08:17,360
ticket sales that maybe some other

3346
02:08:17,360 --> 02:08:19,199
places do. Like it's weird because like

3347
02:08:19,199 --> 02:08:21,679
I watched Mrs. Doubtfire at Eckles in

3348
02:08:21,679 --> 02:08:23,760
Salt Lake last year. Sold out like for a

3349
02:08:23,760 --> 02:08:24,159
whole week.

3350
02:08:24,159 --> 02:08:24,560
>> Exactly.

3351
02:08:24,560 --> 02:08:27,280
>> I went to the one here in Cubby. It was

3352
02:08:27,280 --> 02:08:28,719
better than the one at Eckles and it was

3353
02:08:28,719 --> 02:08:30,639
like half empty. Like I can't figure it

3354
02:08:30,639 --> 02:08:31,199
out.

3355
02:08:31,199 --> 02:08:33,360
>> Then Tony Danza was amazing. Yes.

3356
02:08:33,360 --> 02:08:34,639
>> And he wasn't full.

3357
02:08:34,639 --> 02:08:35,199
>> Yes.

3358
02:08:35,199 --> 02:08:37,440
>> But it's interesting.

3359
02:08:37,440 --> 02:08:40,000
>> Was it Oh, counselor Bogdan. Just to

3360
02:08:40,000 --> 02:08:41,920
make sure I understand the reason why

3361
02:08:41,920 --> 02:08:43,679
it's being subsidized is because these

3362
02:08:43,679 --> 02:08:45,280
shows are not selling out.

3363
02:08:45,280 --> 02:08:47,440
>> No, it's always carried a sub. In fact,

3364
02:08:47,440 --> 02:08:48,800
that's come down. Actually, our

3365
02:08:48,800 --> 02:08:50,639
subsidies come down. So, the subsidies

3366
02:08:50,639 --> 02:08:51,119
always

3367
02:08:51,119 --> 02:08:53,840
>> So, what would it take just for my my

3368
02:08:53,840 --> 02:08:57,760
brain wave to make that thing net zero?

3369
02:08:57,760 --> 02:08:58,800
>> Uh,

3370
02:08:58,800 --> 02:09:00,480
>> these types of shows need to sell out,

3371
02:09:00,480 --> 02:09:00,800
right?

3372
02:09:00,800 --> 02:09:01,679
>> Yes.

3373
02:09:01,679 --> 02:09:03,920
>> So, it is not attendance having any

3374
02:09:03,920 --> 02:09:06,719
shows that is making this

3375
02:09:06,719 --> 02:09:08,639
>> right now. I think from the CVY Center's

3376
02:09:08,639 --> 02:09:10,079
perspective, it might be seen as a

3377
02:09:10,079 --> 02:09:12,239
rental hall. Your children perform

3378
02:09:12,239 --> 02:09:14,000
there. You get to see the Nutcracker in

3379
02:09:14,000 --> 02:09:15,520
the winter time and things like that.

3380
02:09:15,520 --> 02:09:17,599
But it's is it a performance hall? Those

3381
02:09:17,599 --> 02:09:18,639
were some of the things that we've been

3382
02:09:18,639 --> 02:09:20,719
diving into. So in dabbling through

3383
02:09:20,719 --> 02:09:22,719
there, we've seen we just haven't seen

3384
02:09:22,719 --> 02:09:24,159
the ticket sales that we were hoping to

3385
02:09:24,159 --> 02:09:24,639
see.

3386
02:09:24,639 --> 02:09:27,840
>> So what are we doing to better that?

3387
02:09:27,840 --> 02:09:29,599
>> We're making sure that we balance those

3388
02:09:29,599 --> 02:09:31,520
evenly. So we'll have some rentals,

3389
02:09:31,520 --> 02:09:32,960
we'll have some performances, and we'll

3390
02:09:32,960 --> 02:09:35,760
make sure that we uh we anticipate we

3391
02:09:35,760 --> 02:09:36,960
make sure that we cover those costs

3392
02:09:36,960 --> 02:09:39,599
responsibly. meaning that if we need to

3393
02:09:39,599 --> 02:09:42,480
diversify more so that we don't send all

3394
02:09:42,480 --> 02:09:44,079
our eggs in one basket with a

3395
02:09:44,079 --> 02:09:45,360
performance or show that we're still

3396
02:09:45,360 --> 02:09:46,880
covered with the rentals that we have.

3397
02:09:46,880 --> 02:09:49,119
>> It's also important to acknowledge that

3398
02:09:49,119 --> 02:09:50,400
none of them make money. They're all

3399
02:09:50,400 --> 02:09:55,119
subsidized. All all performing arts

3400
02:09:55,119 --> 02:09:57,119
centers are subsidized in the whole

3401
02:09:57,119 --> 02:09:59,360
country. They're all subsidized

3402
02:09:59,360 --> 02:10:01,760
and ours gets way less subsidy than

3403
02:10:01,760 --> 02:10:02,480
most.

3404
02:10:02,480 --> 02:10:05,199
>> Yeah, that's legit. But we are looking

3405
02:10:05,199 --> 02:10:08,079
at that and trying to

3406
02:10:08,079 --> 02:10:11,040
>> up our programming and down fees. Then

3407
02:10:11,040 --> 02:10:12,639
>> the cost of having arts is that you do

3408
02:10:12,639 --> 02:10:14,079
support it. It's not something that

3409
02:10:14,079 --> 02:10:15,040
covers itself.

3410
02:10:15,040 --> 02:10:17,440
>> Right. We get as close to coming to to

3411
02:10:17,440 --> 02:10:18,639
covering those with our fees as

3412
02:10:18,639 --> 02:10:19,440
possible. Just like

3413
02:10:19,440 --> 02:10:22,400
>> Right. But what I'm asking is are we

3414
02:10:22,400 --> 02:10:24,560
looking at doing more rentals and less

3415
02:10:24,560 --> 02:10:27,040
of these shows?

3416
02:10:27,040 --> 02:10:27,760
>> Yes.

3417
02:10:27,760 --> 02:10:28,960
>> That's what we did this year.

3418
02:10:28,960 --> 02:10:29,599
>> Yes.

3419
02:10:29,599 --> 02:10:30,800
>> That's what we did this year and we're

3420
02:10:30,800 --> 02:10:32,159
looking at more of that next year. So,

3421
02:10:32,159 --> 02:10:33,679
we're being very strategic on the ones

3422
02:10:33,679 --> 02:10:37,119
that we plan to bring in, the cost that would be, as well as weighing that

3423
02:10:37,119 --> 02:10:38,480
against the cost of bringing a rental

3424
02:10:38,480 --> 02:10:40,719
in, and then we would evaluate those two

3425
02:10:40,719 --> 02:10:42,079
and see whether or not we would make

3426
02:10:42,079 --> 02:10:44,159
money. We're always or break even. We're

3427
02:10:44,159 --> 02:10:45,280
always trying to make sure that we're

3428
02:10:45,280 --> 02:10:47,119
fiscally responsible there.

3429
02:10:47,119 --> 02:10:48,239
>> Okay.

3430
02:10:48,239 --> 02:10:49,679
>> For sure. Stephen, did you want to add

3431
02:10:49,679 --> 02:10:50,320
anything?

3432
02:10:50,320 --> 02:10:51,520
>> Good.

3433
02:10:51,520 --> 02:10:51,840
>> Okay.

3434
02:10:51,840 --> 02:10:53,440
>> Council Whitlock.

3435
02:10:53,440 --> 02:10:56,000
>> Yeah. um kind of a similar line of

3436
02:10:56,000 --> 02:10:57,760
questioning, but I just what would you

3437
02:10:57,760 --> 02:11:00,000
say were some of our and the key lessons

3438
02:11:00,000 --> 02:11:02,719
we learned from this last season?

3439
02:11:02,719 --> 02:11:04,880
>> Yeah, you want to speak to that?

3440
02:11:04,880 --> 02:11:05,760
>> Sure. Um

3441
02:11:05,760 --> 02:11:12,550
>> Mike,

3442
02:11:12,560 --> 02:11:16,400
» um certainly uh having

3443
02:11:16,400 --> 02:11:19,360
sponsor and donor support is going to be

3444
02:11:19,360 --> 02:11:21,599
important. That's what we spent the last

3445
02:11:21,599 --> 02:11:23,920
three four months working almost

3446
02:11:23,920 --> 02:11:26,079
exclusively on is bringing in

3447
02:11:26,079 --> 02:11:28,400
sponsorships and donors to support this

3448
02:11:28,400 --> 02:11:31,040
kind of programming. As uh Foster said,

3449
02:11:31,040 --> 02:11:33,360
we were very disappointed in the and the

3450
02:11:33,360 --> 02:11:37,599
ticket sales um and Patrice said um Mrs.

3451
02:11:37,599 --> 02:11:40,480
Dfire and other shows because it's such

3452
02:11:40,480 --> 02:11:43,199
an intimate space. People enjoy it so

3453
02:11:43,199 --> 02:11:45,840
much more. We had one of the big theater

3454
02:11:45,840 --> 02:11:49,760
bloggers, video vloggers, I guess. um in

3455
02:11:49,760 --> 02:11:52,560
the state came and was just raving over

3456
02:11:52,560 --> 02:11:54,639
the fact that she got to see this big

3457
02:11:54,639 --> 02:11:56,400
show in this really intimate little

3458
02:11:56,400 --> 02:11:59,760
space. But for next year, for instance,

3459
02:11:59,760 --> 02:12:02,639
we are focusing almost entirely on

3460
02:12:02,639 --> 02:12:04,000
rentals. That's been our bread and

3461
02:12:04,000 --> 02:12:06,960
butter for for many many years. And even

3462
02:12:06,960 --> 02:12:08,800
our season that we're putting together

3463
02:12:08,800 --> 02:12:11,440
next year is a partnership with key

3464
02:12:11,440 --> 02:12:15,360
rentals. So, we're not putting any

3465
02:12:15,360 --> 02:12:17,920
of the city's money into next year's

3466
02:12:17,920 --> 02:12:20,159
season. We're putting uh we're not

3467
02:12:20,159 --> 02:12:22,000
putting any city money into it. We're

3468
02:12:22,000 --> 02:12:25,040
looking at partnerships with renters,

3469
02:12:25,040 --> 02:12:28,159
clients that we will provide additional

3470
02:12:28,159 --> 02:12:29,760
marketing for, and additional support

3471
02:12:29,760 --> 02:12:32,400
for, but we won't have the spending that

3472
02:12:32,400 --> 02:12:33,599
we did this year.

3473
02:12:33,599 --> 02:12:36,880
>> Could you give an example of a renter?

3474
02:12:36,880 --> 02:12:38,960
Well, for like for instance like Utah

3475
02:12:38,960 --> 02:12:41,440
Metropolitan Ballet, it's a big

3476
02:12:41,440 --> 02:12:42,880
professional ballet company. They come

3477
02:12:42,880 --> 02:12:44,880
in four times a year. Their biggest show

3478
02:12:44,880 --> 02:12:46,960
is Nutcracker. In December, they come in

3479
02:12:46,960 --> 02:12:48,960
for 13 performances.

3480
02:12:48,960 --> 02:12:51,599
>> Um they might bring in uh half million

3481
02:12:51,599 --> 02:12:53,760
dollars with Nutcracker.

3482
02:12:53,760 --> 02:12:58,560
>> And we take um an 11% cut of all ticket

3483
02:12:58,560 --> 02:13:01,520
sales. And we also uh charge rental fees

3484
02:13:01,520 --> 02:13:04,800
and labor fees. So those things uh

3485
02:13:04,800 --> 02:13:07,199
really do turn out to be rather

3486
02:13:07,199 --> 02:13:11,440
profitable for us. It's great. And we

3487
02:13:11,440 --> 02:13:14,400
have we have next to no I believe we

3488
02:13:14,400 --> 02:13:16,320
have

3489
02:13:16,320 --> 02:13:19,679
five or six open dates next year. We're

3490
02:13:19,679 --> 02:13:22,159
that booked. You know, if you're a dance

3491
02:13:22,159 --> 02:13:24,159
company and we turn people away all the

3492
02:13:24,159 --> 02:13:26,000
time, unfortunately they're happy to go

3493
02:13:26,000 --> 02:13:29,920
to high schools. They're happy to go to

3494
02:13:29,920 --> 02:13:32,320
wherever. There are really we are the

3495
02:13:32,320 --> 02:13:35,360
only professionally run venue in Yuakan.

3496
02:13:35,360 --> 02:13:37,679
There is no other place where a dance

3497
02:13:37,679 --> 02:13:40,639
studio or an academy can come and get

3498
02:13:40,639 --> 02:13:42,880
completely professional support on a

3499
02:13:42,880 --> 02:13:44,880
completely professional stage of

3500
02:13:44,880 --> 02:13:48,719
professional ushers and uh front of

3501
02:13:48,719 --> 02:13:52,639
house, back of house. So we're very

3502
02:13:52,639 --> 02:13:54,960
popular. It's it's it's hard to get a

3503
02:13:54,960 --> 02:13:56,719
date there. We get phone calls all the

3504
02:13:56,719 --> 02:13:59,760
time people wanting to get a date. But

3505
02:13:59,760 --> 02:14:02,239
we're fortunate in that we are almost

3506
02:14:02,239 --> 02:14:04,000
full.

3507
02:14:04,000 --> 02:14:05,760
>> Um,

3508
02:14:05,760 --> 02:14:07,199
none of us are performing arts

3509
02:14:07,199 --> 02:14:10,000
management, you know, uh, graduates

3510
02:14:10,000 --> 02:14:11,360
here, I don't think. But I'm just

3511
02:14:11,360 --> 02:14:13,199
curious, what about like high-end

3512
02:14:13,199 --> 02:14:14,719
incremental sales, high margin

3513
02:14:14,719 --> 02:14:16,400
incremental sales, like concessions? Are

3514
02:14:16,400 --> 02:14:19,040
we thinking about adding concessions at

3515
02:14:19,040 --> 02:14:20,400
all?

3516
02:14:20,400 --> 02:14:21,119
>> Sure.

3517
02:14:21,119 --> 02:14:22,639
>> Okay. It was

3518
02:14:22,639 --> 02:14:24,159
>> looking very well.

3519
02:14:24,159 --> 02:14:26,159
>> Where where was that? Where were the

3520
02:14:26,159 --> 02:14:27,920
concessions? Just on the side there

3521
02:14:27,920 --> 02:14:30,079
where they were out on the kids.

3522
02:14:30,079 --> 02:14:31,679
>> They probably worked at the dance stage

3523
02:14:31,679 --> 02:14:32,560
he went to, right?

3524
02:14:32,560 --> 02:14:33,920
>> Well, no, they wouldn't be at the dance

3525
02:14:33,920 --> 02:14:37,040
things like But Mrs. Doire, where was

3526
02:14:37,040 --> 02:14:39,199
it?

3527
02:14:39,199 --> 02:14:40,239
>> On the side.

3528
02:14:40,239 --> 02:14:41,119
>> Candy bars and stuff.

3529
02:14:41,119 --> 02:14:43,760
>> When you're looking at the the

3530
02:14:43,760 --> 02:14:44,800
ticket window,

3531
02:14:44,800 --> 02:14:46,719
>> I kind of remember just some candy bars

3532
02:14:46,719 --> 02:14:47,360
pretty much.

3533
02:14:47,360 --> 02:14:48,560
>> Candy bars.

3534
02:14:48,560 --> 02:14:48,960
>> Yes.

3535
02:14:48,960 --> 02:14:50,400
>> Okay. How did that do?

3536
02:14:50,400 --> 02:14:51,599
>> It's done very well.

3537
02:14:51,599 --> 02:14:53,360
>> Okay. Would you look to expand that and

3538
02:14:53,360 --> 02:14:55,040
offer more offerings or

3539
02:14:55,040 --> 02:14:58,639
>> Yeah, we're actually um thinking about

3540
02:14:58,639 --> 02:15:01,119
having an upstairs because the people

3541
02:15:01,119 --> 02:15:03,119
that come up the other thing the other

3542
02:15:03,119 --> 02:15:06,719
thing we're looking at is is requiring.

3543
02:15:06,719 --> 02:15:07,040
>> Yes.

3544
02:15:07,040 --> 02:15:07,840
>> For our clients

3545
02:15:07,840 --> 02:15:11,199
>> 100%. Yeah. People get really frustrated

3546
02:15:11,199 --> 02:15:13,520
that there is nothing a 90minut

3547
02:15:13,520 --> 02:15:16,480
performance but for some of our elders

3548
02:15:16,480 --> 02:15:19,199
>> or guys like me.

3549
02:15:19,199 --> 02:15:22,239
>> Yeah. Um, so that's when you sell the

3550
02:15:22,239 --> 02:15:25,199
majority of your concession,

3551
02:15:25,199 --> 02:15:27,119
not before the show, certainly not after

3552
02:15:27,119 --> 02:15:28,000
the show.

3553
02:15:28,000 --> 02:15:28,320
>> Okay.

3554
02:15:28,320 --> 02:15:30,079
>> So, we imagine that with that policy in

3555
02:15:30,079 --> 02:15:31,280
place next year,

3556
02:15:31,280 --> 02:15:33,119
>> we'll do a lot better even better than

3557
02:15:33,119 --> 02:15:35,440
we did this year, which was quite good.

3558
02:15:35,440 --> 02:15:37,280
>> Were you were you asking about alcohol

3559
02:15:37,280 --> 02:15:40,000
sales or were I just wondering that is

3560
02:15:40,000 --> 02:15:41,760
topic that we want to approach. Okay.

3561
02:15:41,760 --> 02:15:44,320
Thank you. Uh, the Cubby, just so you

3562
02:15:44,320 --> 02:15:45,679
know, the CVY has brought in an

3563
02:15:45,679 --> 02:15:48,239
additional $55,000 this year in grants

3564
02:15:48,239 --> 02:15:49,840
and sponsorships. So, they've really

3565
02:15:49,840 --> 02:15:51,840
been hustling, bringing a lot into the

3566
02:15:51,840 --> 02:15:54,800
table. Okay. Cemetery. Um, this is the

3567
02:15:54,800 --> 02:15:56,719
second of the supplemental requests for

3568
02:15:56,719 --> 02:15:58,480
the cemetery. The cemetery is asking for

3569
02:15:58,480 --> 02:16:01,119
$14,000 uh in their waterline item

3570
02:16:01,119 --> 02:16:02,960
budget. Uh, that's just one supplemental

3571
02:16:02,960 --> 02:16:04,239
that they are asking for. Everything

3572
02:16:04,239 --> 02:16:05,840
else is covered. If you want more

3573
02:16:05,840 --> 02:16:07,679
details about that, I'm happy to to

3574
02:16:07,679 --> 02:16:10,159
oblige. Uh, there's just a financial

3575
02:16:10,159 --> 02:16:12,719
mistake that happened there. Questions?

3576
02:16:12,719 --> 02:16:14,800
Okay, moving on. Cemetery

3577
02:16:14,800 --> 02:16:16,639
accomplishments uh and performance

3578
02:16:16,639 --> 02:16:18,239
measures. We're going to skip through

3579
02:16:18,239 --> 02:16:19,840
some of those unless somebody has any

3580
02:16:19,840 --> 02:16:21,679
questions. Cemetery key accomplishments

3581
02:16:21,679 --> 02:16:24,000
this year. Uh they installed the second

3582
02:16:24,000 --> 02:16:25,599
phase of their internment options at the

3583
02:16:25,599 --> 02:16:27,760
cremation garden. Respectfully conducted

3584
02:16:27,760 --> 02:16:29,920
311 internments and then partnered with

3585
02:16:29,920 --> 02:16:31,679
Provo Veterans Council at American Pria

3586
02:16:31,679 --> 02:16:33,280
Festival to host the memorial day

3587
02:16:33,280 --> 02:16:34,719
celebrations that we do that annual

3588
02:16:34,719 --> 02:16:37,200
annually. That's a an amazing tribute.

3589
02:16:37,200 --> 02:16:38,719
Uh in December they collaborated with

3590
02:16:38,719 --> 02:16:39,920
the Daughters of the American Revolution

3591
02:16:39,920 --> 02:16:41,280
and they hosted the wreath laying

3592
02:16:41,280 --> 02:16:43,359
ceremony and another tradition that they

3593
02:16:43,359 --> 02:16:48,800
uh proudly continue. Uh the golf course is doing well uh really

3594
02:16:48,800 --> 02:16:51,120
well. Uh almost 100,000 rounds of golf

3595
02:16:51,120 --> 02:16:53,120
being played there uh this year

3596
02:16:53,120 --> 02:16:55,359
hopefully uh and with this warm weather

3597
02:16:55,359 --> 02:16:58,240
only only looking upwards. Uh they're

3598
02:16:58,240 --> 02:16:59,760
asking for no appropriations. No

3599
02:16:59,760 --> 02:17:01,920
additional uh budget needs there. Uh

3600
02:17:01,920 --> 02:17:03,599
total rounds of of golf. So hopefully

3601
02:17:03,599 --> 02:17:06,399
they'll hit theirund uh thousand,000

3602
02:17:06,399 --> 02:17:09,439
played rounds target. Uh they they

3603
02:17:09,439 --> 02:17:10,880
tracked the number of range balls. Youth

3604
02:17:10,880 --> 02:17:12,639
participation has been up. Cost recovery

3605
02:17:12,639 --> 02:17:15,120
has been over expectations. This is

3606
02:17:15,120 --> 02:17:18,160
another U enterprise fund. Uh and then

3607
02:17:18,160 --> 02:17:20,639
oh another good note is their economic

3608
02:17:20,639 --> 02:17:21,920
impact on their tournaments that they

3609
02:17:21,920 --> 02:17:24,080
hold about $4.5 million worth of

3610
02:17:24,080 --> 02:17:26,800
economic impact there.

3611
02:17:26,800 --> 02:17:28,960
Uh Temponos Golf Club uh some of the key

3612
02:17:28,960 --> 02:17:30,559
performance uh key accomplishments that

3613
02:17:30,559 --> 02:17:33,040
they had uh they replaced uh the driving

3614
02:17:33,040 --> 02:17:35,200
net the driving range netting that goes

3615
02:17:35,200 --> 02:17:36,800
around the driving range converted to

3616
02:17:36,800 --> 02:17:38,479
100% electrical golf carts. I don't know

3617
02:17:38,479 --> 02:17:40,080
if you know, but they finished their

3618
02:17:40,080 --> 02:17:41,599
golf shack last year and then they

3619
02:17:41,599 --> 02:17:44,319
converted this year to 100% fleet uh

3620
02:17:44,319 --> 02:17:47,200
100% uh self-sustaining operation and on

3621
02:17:47,200 --> 02:17:49,120
pace to over 100,000 rounds and they

3622
02:17:49,120 --> 02:17:51,519
renovated 13 sand bunkers this year and

3623
02:17:51,519 --> 02:17:54,479
they used zero gallons of potable or

3624
02:17:54,479 --> 02:17:57,760
culinary water. So,

3625
02:17:57,760 --> 02:18:00,880
good job. Uh parks and grounds uh parks

3626
02:18:00,880 --> 02:18:02,559
and grounds is not uh asking for

3627
02:18:02,559 --> 02:18:04,559
anything in addition. Um although it

3628
02:18:04,559 --> 02:18:06,399
should just be noted uh with parks and

3629
02:18:06,399 --> 02:18:08,000
grounds that as we do put on new parks

3630
02:18:08,000 --> 02:18:11,120
and as we do put on new areas uh we use

3631
02:18:11,120 --> 02:18:14,399
every opportunity um uh and every

3632
02:18:14,399 --> 02:18:16,240
efficiency possible to maintain what we

3633
02:18:16,240 --> 02:18:18,000
do and what we gain. So we're constantly

3634
02:18:18,000 --> 02:18:20,000
adding acreages to our parks as you know

3635
02:18:20,000 --> 02:18:21,280
Delta Gateway and some of these other

3636
02:18:21,280 --> 02:18:23,599
parks that come online. Um and it that

3637
02:18:23,599 --> 02:18:25,599
brings challenges with it. Um but the

3638
02:18:25,599 --> 02:18:26,880
parks department does a good job of

3639
02:18:26,880 --> 02:18:28,960
balancing the additional workload. Um,

3640
02:18:28,960 --> 02:18:31,280
again, utilizing all those efficiencies.

3641
02:18:31,280 --> 02:18:32,719
Some of their performance measures that

3642
02:18:32,719 --> 02:18:34,960
they have this year, uh, trail use

3643
02:18:34,960 --> 02:18:37,439
continues to rise with over about 10,000

3644
02:18:37,439 --> 02:18:39,120
additional trips to the back country and

3645
02:18:39,120 --> 02:18:41,280
Rock Canyon and other local trails. Uh,

3646
02:18:41,280 --> 02:18:42,800
which also highlights the strong

3647
02:18:42,800 --> 02:18:45,519
utilization of our parks. Uh, and the

3648
02:18:45,519 --> 02:18:47,439
other, I think, key feature to note here

3649
02:18:47,439 --> 02:18:50,319
is their volunteer hours. Uh, volunteer

3650
02:18:50,319 --> 02:18:51,519
hours are very critical for them.

3651
02:18:51,519 --> 02:18:53,679
Thousands of residents contribute dozens

3652
02:18:53,679 --> 02:18:55,920
uh to projects each year and they play a

3653
02:18:55,920 --> 02:18:57,439
vital role in maintaining and improving

3654
02:18:57,439 --> 02:18:59,840
the parks and trails and public spaces.

3655
02:18:59,840 --> 02:19:02,240
And then key accomplishments within the

3656
02:19:02,240 --> 02:19:05,359
parks uh department. They've organized

3657
02:19:05,359 --> 02:19:08,479
over 3,500 volunteers receiving uh the

3658
02:19:08,479 --> 02:19:10,880
monetary value would be $184,000 in

3659
02:19:10,880 --> 02:19:13,359
value. And they approved over one mile

3660
02:19:13,359 --> 02:19:15,040
natural surface trails with three acres

3661
02:19:15,040 --> 02:19:16,719
of native grasses and wildflower seating

3662
02:19:16,719 --> 02:19:19,599
and over 460,000 trips to the Palmetrop

3663
02:19:19,599 --> 02:19:21,920
River Trail. love that

3664
02:19:21,920 --> 02:19:25,120
>> we this they are amazing. The amount of

3665
02:19:25,120 --> 02:19:27,280
acreage that they can cover with the

3666
02:19:27,280 --> 02:19:29,439
same amount of employees that they have

3667
02:19:29,439 --> 02:19:31,760
is phenomenal. Okay, our projects and

3668
02:19:31,760 --> 02:19:33,120
we'll get into a little bit of projects

3669
02:19:33,120 --> 02:19:35,200
as we talked about the wraps as well. Uh

3670
02:19:35,200 --> 02:19:37,519
the wrap tax uh no significant needs or

3671
02:19:37,519 --> 02:19:39,120
asks, no additional costs or

3672
02:19:39,120 --> 02:19:41,599
supplemental requests. These up here are

3673
02:19:41,599 --> 02:19:42,800
all the grants that they have been

3674
02:19:42,800 --> 02:19:44,960
awarded this past year. Uh and with the

3675
02:19:44,960 --> 02:19:46,559
exception of the Utah County grant, all

3676
02:19:46,559 --> 02:19:49,680
the others uh do require matching funds.

3677
02:19:49,680 --> 02:19:52,000
uh the recreation park arts parks tax

3678
02:19:52,000 --> 02:19:54,640
revenue and parks de development impact

3679
02:19:54,640 --> 02:19:57,040
fees are primarily what we use uh to

3680
02:19:57,040 --> 02:19:58,960
replace parks and recreational admin

3681
02:19:58,960 --> 02:20:00,479
amenities.

3682
02:20:00,479 --> 02:20:03,040
Um, and then some of the key department

3683
02:20:03,040 --> 02:20:05,600
features, key accomplishments, uh, or

3684
02:20:05,600 --> 02:20:07,359
sorry, this is again from, uh, the

3685
02:20:07,359 --> 02:20:09,439
project's team. Rap tax renewal was

3686
02:20:09,439 --> 02:20:12,000
amazing for us. Beaks ice arena. They

3687
02:20:12,000 --> 02:20:13,840
improved the ADA parking out front of

3688
02:20:13,840 --> 02:20:15,760
the ice arena. Made improvements to that

3689
02:20:15,760 --> 02:20:17,760
entrance way. They regraded landscaped

3690
02:20:17,760 --> 02:20:19,280
around the entrance to Tibonogus Golf

3691
02:20:19,280 --> 02:20:21,200
Club and excavated and graded the

3692
02:20:21,200 --> 02:20:22,800
Gillespie substation. That was kind of a

3693
02:20:22,800 --> 02:20:25,520
one privile project that we worked on.

3694
02:20:25,520 --> 02:20:26,640
Departmentwide, some of our

3695
02:20:26,640 --> 02:20:28,800
accomplishments. Agency accreditation.

3696
02:20:28,800 --> 02:20:30,720
every five years we apply for agency

3697
02:20:30,720 --> 02:20:33,439
accreditation uh in order to be part of

3698
02:20:33,439 --> 02:20:36,080
our uh national accreditation and we

3699
02:20:36,080 --> 02:20:38,560
applied for that and awarded last uh

3700
02:20:38,560 --> 02:20:41,840
this this year. Um and then the other is

3701
02:20:41,840 --> 02:20:44,560
our wrap tax renewal. So 85% voter

3702
02:20:44,560 --> 02:20:46,640
support which we think is amazing and a

3703
02:20:46,640 --> 02:20:49,840
good um uh sense of community support

3704
02:20:49,840 --> 02:20:52,720
that we put there. Any questions? Any

3705
02:20:52,720 --> 02:20:53,600
other questions?

3706
02:20:53,600 --> 02:20:55,200
>> Okay. And we're we're gonna see you

3707
02:20:55,200 --> 02:20:55,920
again. You're good.

3708
02:20:55,920 --> 02:20:57,439
>> Yeah. Okay.

3709
02:20:57,439 --> 02:20:58,479
>> Yes.

3710
02:20:58,479 --> 02:21:00,479
So, it's just asked of me, are we still

3711
02:21:00,479 --> 02:21:02,720
charging for parking at the Epic?

3712
02:21:02,720 --> 02:21:04,080
>> Only during certain tournaments.

3713
02:21:04,080 --> 02:21:05,520
Actually, I don't know. Ryland's out in

3714
02:21:05,520 --> 02:21:06,880
the hallway. Let me He's probably

3715
02:21:06,880 --> 02:21:08,560
listening right here on a delay. Let me

3716
02:21:08,560 --> 02:21:09,600
have him come in. And

3717
02:21:09,600 --> 02:21:10,800
>> my understanding is just certain

3718
02:21:10,800 --> 02:21:12,720
tournaments that it's a contract. It's

3719
02:21:12,720 --> 02:21:15,200
part of their contract and they that's

3720
02:21:15,200 --> 02:21:16,399
the profit share thing.

3721
02:21:16,399 --> 02:21:17,920
>> Yeah, he's right here. Do we have any

3722
02:21:17,920 --> 02:21:19,280
this year that have

3723
02:21:19,280 --> 02:21:21,680
>> We have uh two tournaments right now in

3724
02:21:21,680 --> 02:21:22,479
the fall

3725
02:21:22,479 --> 02:21:24,960
>> that will have parking.

3726
02:21:24,960 --> 02:21:25,760
Yeah.

3727
02:21:25,760 --> 02:21:28,399
>> Yeah.

3728
02:21:28,399 --> 02:21:31,280
Yes,

3729
02:21:31,280 --> 02:21:33,359
>> we have just two tournaments in the fall

3730
02:21:33,359 --> 02:21:35,760
that have contracted as part of their

3731
02:21:35,760 --> 02:21:36,560
event.

3732
02:21:36,560 --> 02:21:40,160
>> What is our portion of that?

3733
02:21:40,160 --> 02:21:43,600
>> Uh that's negotiated groupto group. So

3734
02:21:43,600 --> 02:21:45,840
it depends on uh their size of their

3735
02:21:45,840 --> 02:21:48,399
event, how many cars we expect uh and

3736
02:21:48,399 --> 02:21:51,040
how much uh overhead we'd have to cover

3737
02:21:51,040 --> 02:21:53,280
with the employees that help implement

3738
02:21:53,280 --> 02:21:55,920
that process. So, it's not always the

3739
02:21:55,920 --> 02:21:58,000
same.

3740
02:21:58,000 --> 02:21:59,359
>> It's not always the same and that's why

3741
02:21:59,359 --> 02:22:02,000
we don't have standard rates for it.

3742
02:22:02,000 --> 02:22:03,760
>> Yeah, it varies based on the event. So,

3743
02:22:03,760 --> 02:22:05,920
in our contract, we have verbiage that

3744
02:22:05,920 --> 02:22:07,439
just allows us to negotiate that because

3745
02:22:07,439 --> 02:22:10,479
it depends on um the group is

3746
02:22:10,479 --> 02:22:12,080
determining whether or not that's

3747
02:22:12,080 --> 02:22:13,920
something they want to impose on their

3748
02:22:13,920 --> 02:22:17,120
um participants as well. So, the price

3749
02:22:17,120 --> 02:22:19,200
might change, the number of people might

3750
02:22:19,200 --> 02:22:20,720
change, the percentage might change.

3751
02:22:20,720 --> 02:22:22,880
It's all dependent on the group and

3752
02:22:22,880 --> 02:22:24,399
whether or not we allow them to do it

3753
02:22:24,399 --> 02:22:27,920
based on how many uh local teams versus

3754
02:22:27,920 --> 02:22:29,359
out of state teams are coming to the

3755
02:22:29,359 --> 02:22:29,760
event.

3756
02:22:29,760 --> 02:22:32,319
>> Are we still selling things like ice

3757
02:22:32,319 --> 02:22:34,479
pops and stuff like that out there?

3758
02:22:34,479 --> 02:22:36,640
>> We have not done that yet ourselves. Uh

3759
02:22:36,640 --> 02:22:39,359
we do have local food truck vendors that

3760
02:22:39,359 --> 02:22:40,720
come for all the events that we

3761
02:22:40,720 --> 02:22:43,359
coordinate that come and sell any food

3762
02:22:43,359 --> 02:22:45,439
concessions at the park.

3763
02:22:45,439 --> 02:22:49,520
>> That's good to know. Thanks.

3764
02:22:49,520 --> 02:22:51,040
Right. Thank you so much, Foster.

3765
02:22:51,040 --> 02:22:53,600
>> Thank you.

3766
02:22:53,600 --> 02:22:55,600
>> All right. Next, a presentation

3767
02:22:55,600 --> 02:22:58,000
regarding the wrap packs. Oh, Foster,

3768
02:22:58,000 --> 02:22:58,640
this is you, too.

3769
02:22:58,640 --> 02:23:09,990
>> It is.

3770
02:23:10,000 --> 02:23:12,960
» So, we watched through uh the previous C

3771
02:23:12,960 --> 02:23:15,439
uh work meeting where the question was

3772
02:23:15,439 --> 02:23:16,960
asked, do we have a breakdown of what

3773
02:23:16,960 --> 02:23:18,479
where everything is going for the wrap

3774
02:23:18,479 --> 02:23:20,000
taxes? That was the major question that

3775
02:23:20,000 --> 02:23:21,760
wanted to be answered. And so, do you

3776
02:23:21,760 --> 02:23:24,720
want to bring up the Excel spreadsheet?

3777
02:23:24,720 --> 02:23:26,000
>> Yes. So, if you can bring up the

3778
02:23:26,000 --> 02:23:30,230
spreadsheet. Let's start there.

3779
02:23:30,240 --> 02:23:32,640
» The Excel spreadsheet.

3780
02:23:32,640 --> 02:23:34,960
>> Do you have the ex is this? This is

3781
02:23:34,960 --> 02:23:36,800
>> This is the Excel. I made a little for

3782
02:23:36,800 --> 02:23:37,200
you.

3783
02:23:37,200 --> 02:23:42,469
>> Okay. Go ahead, John.

3784
02:23:42,479 --> 02:23:44,800
» Thank you for

3785
02:23:44,800 --> 02:23:46,640
having us here to talk more about the

3786
02:23:46,640 --> 02:23:49,280
wrap tax. We did have our capital

3787
02:23:49,280 --> 02:23:52,560
improvement plan 5-year uh outlook

3788
02:23:52,560 --> 02:23:55,040
presented a couple months ago, but as a

3789
02:23:55,040 --> 02:23:57,040
reminder, parks and recreation has over

3790
02:23:57,040 --> 02:23:59,439
$200 million in identified capital

3791
02:23:59,439 --> 02:24:01,200
projects.

3792
02:24:01,200 --> 02:24:03,200
Historically, the department relied on

3793
02:24:03,200 --> 02:24:06,160
$500,000 annual appropriations to

3794
02:24:06,160 --> 02:24:08,800
address the aging infrastructure and

3795
02:24:08,800 --> 02:24:10,800
build new parks.

3796
02:24:10,800 --> 02:24:12,640
Uh the department of city went to work a

3797
02:24:12,640 --> 02:24:14,560
little over 10 years ago to build a

3798
02:24:14,560 --> 02:24:16,240
better funding sources to address the

3799
02:24:16,240 --> 02:24:18,880
funding gaps. First source of funding is

3800
02:24:18,880 --> 02:24:21,840
impact fees. These are dedicated to

3801
02:24:21,840 --> 02:24:24,479
increasing the amount of park space and

3802
02:24:24,479 --> 02:24:26,560
trails and cannot be used for existing

3803
02:24:26,560 --> 02:24:28,240
facilities.

3804
02:24:28,240 --> 02:24:31,200
The second funding source, the wrap tax,

3805
02:24:31,200 --> 02:24:33,920
fills the gaps in what impact fees and

3806
02:24:33,920 --> 02:24:37,760
other funding sources can't get. Um, I'm

3807
02:24:37,760 --> 02:24:39,120
going to give some highlights of what

3808
02:24:39,120 --> 02:24:42,560
the RAP tax has been able to do. Uh, the

3809
02:24:42,560 --> 02:24:46,880
last 10 years it averaged 1.5 million a

3810
02:24:46,880 --> 02:24:49,200
year in revenues. So, initially that was

3811
02:24:49,200 --> 02:24:50,720
a little less and towards the end of

3812
02:24:50,720 --> 02:24:53,280
that 10 years a little more, but it was

3813
02:24:53,280 --> 02:24:55,280
about $15 million in revenues over the

3814
02:24:55,280 --> 02:24:59,040
10 years and it helped to make over 100

3815
02:24:59,040 --> 02:25:02,000
park capital improvements. That includes

3816
02:25:02,000 --> 02:25:05,439
over 21 existing parks um that were

3817
02:25:05,439 --> 02:25:09,040
impacted by these funds. Five new parks,

3818
02:25:09,040 --> 02:25:12,160
10 playgrounds uh were replaced, 10 new

3819
02:25:12,160 --> 02:25:14,479
playgrounds added, 15 restrooms replaced

3820
02:25:14,479 --> 02:25:16,399
or improved,

3821
02:25:16,399 --> 02:25:19,120
six new restrooms added, nine miles of

3822
02:25:19,120 --> 02:25:20,960
trails and pathways resurfaced or

3823
02:25:20,960 --> 02:25:24,880
widened, six tennis courts replaced, 16

3824
02:25:24,880 --> 02:25:29,520
new pickle ball courts added, and arts

3825
02:25:29,520 --> 02:25:31,680
projects and grants given to the CVY

3826
02:25:31,680 --> 02:25:35,040
Center, the library, and local arts um

3827
02:25:35,040 --> 02:25:40,070
groups.

3828
02:25:40,080 --> 02:25:42,160
So

3829
02:25:42,160 --> 02:25:44,160
this last year RAP tax was renewed for

3830
02:25:44,160 --> 02:25:47,120
another 10 years and the current funding

3831
02:25:47,120 --> 02:25:50,160
is around 2 million a year. We expect

3832
02:25:50,160 --> 02:25:53,120
that to increase over time because if

3833
02:25:53,120 --> 02:25:56,000
Provo does well economically, the WAP

3834
02:25:56,000 --> 02:26:01,040
tax does well. It's a nice balance.

3835
02:26:01,040 --> 02:26:04,240
So, our third source of funding, you

3836
02:26:04,240 --> 02:26:06,160
know, let's see what's on slide two

3837
02:26:06,160 --> 02:26:06,479
here.

3838
02:26:06,479 --> 02:26:09,040
>> Y I'd like to go to the grants. You have

3839
02:26:09,040 --> 02:26:10,880
the grants.

3840
02:26:10,880 --> 02:26:13,760
>> These are the only two in the

3841
02:26:13,760 --> 02:26:14,399
spreadsheet.

3842
02:26:14,399 --> 02:26:14,640
>> Okay.

3843
02:26:14,640 --> 02:26:17,280
>> I have to say available.

3844
02:26:17,280 --> 02:26:18,880
>> No, I'll just cover verbally if that's

3845
02:26:18,880 --> 02:26:22,160
okay. Um, so using these two internal

3846
02:26:22,160 --> 02:26:24,160
funding sources of impact fees and wrap

3847
02:26:24,160 --> 02:26:27,280
tax, we use that to go out and get

3848
02:26:27,280 --> 02:26:29,040
grants, source more money because

3849
02:26:29,040 --> 02:26:31,439
remember we've got a $200 million nut

3850
02:26:31,439 --> 02:26:33,439
that we're trying to crack every year

3851
02:26:33,439 --> 02:26:36,479
and uh whittle at. So we've been very

3852
02:26:36,479 --> 02:26:40,080
successful in the last uh couple years

3853
02:26:40,080 --> 02:26:42,640
of pairing that money with grant funds

3854
02:26:42,640 --> 02:26:45,520
that are strategically placed with the

3855
02:26:45,520 --> 02:26:49,359
projects that are selected.

3856
02:26:49,359 --> 02:26:52,880
So, with the approximately $13 million

3857
02:26:52,880 --> 02:26:54,319
in the last six years since I've been

3858
02:26:54,319 --> 02:26:56,880
here, we've been able to contribute an

3859
02:26:56,880 --> 02:27:00,319
additional $27 million in grant funds,

3860
02:27:00,319 --> 02:27:02,560
accomplishing over $40 million in

3861
02:27:02,560 --> 02:27:07,510
projects.

3862
02:27:07,520 --> 02:27:09,520
» And it and it all happens because of the

3863
02:27:09,520 --> 02:27:11,840
team that Provo has uh in within the

3864
02:27:11,840 --> 02:27:13,600
department, within the city government,

3865
02:27:13,600 --> 02:27:15,840
and we all work together to make this

3866
02:27:15,840 --> 02:27:18,399
better than what we have today.

3867
02:27:18,399 --> 02:27:20,960
So when we select these projects

3868
02:27:20,960 --> 02:27:23,760
strategically, we go back to our parks

3869
02:27:23,760 --> 02:27:25,600
and recreation master plan that has

3870
02:27:25,600 --> 02:27:28,399
identified over 200 different projects

3871
02:27:28,399 --> 02:27:30,560
throughout the city that community

3872
02:27:30,560 --> 02:27:33,040
surveys have contributed to prioritizing

3873
02:27:33,040 --> 02:27:35,200
this. It's a document that comes before

3874
02:27:35,200 --> 02:27:39,120
the council for approval as well. And

3875
02:27:39,120 --> 02:27:42,080
each year when we put together our CIP,

3876
02:27:42,080 --> 02:27:44,720
we're adjusting slightly based on

3877
02:27:44,720 --> 02:27:46,960
current world conditions of what those

3878
02:27:46,960 --> 02:27:48,880
projects will be for that upcoming

3879
02:27:48,880 --> 02:27:51,439
fiscal year, as well as looking into the

3880
02:27:51,439 --> 02:27:54,640
future so that we're strategically

3881
02:27:54,640 --> 02:27:57,359
sourcing grants and external funding

3882
02:27:57,359 --> 02:27:59,600
sources to be able to move these things

3883
02:27:59,600 --> 02:28:02,240
forward faster.

3884
02:28:02,240 --> 02:28:06,230
And

3885
02:28:06,240 --> 02:28:08,880
so these are ranked annually

3886
02:28:08,880 --> 02:28:12,319
and that's what we have here. This just

3887
02:28:12,319 --> 02:28:15,680
represents the wrap tax funds that we

3888
02:28:15,680 --> 02:28:18,319
are proposing to move these projects

3889
02:28:18,319 --> 02:28:21,280
forward. Some are paired with grant

3890
02:28:21,280 --> 02:28:22,960
funds

3891
02:28:22,960 --> 02:28:25,200
such as

3892
02:28:25,200 --> 02:28:27,920
the Fort Utah all wheels park, the Provo

3893
02:28:27,920 --> 02:28:30,319
River Trail Central, Harmon Park

3894
02:28:30,319 --> 02:28:32,960
playground and field lighting and the

3895
02:28:32,960 --> 02:28:34,960
parks and recreation master plan with

3896
02:28:34,960 --> 02:28:37,760
the recreational trails component.

3897
02:28:37,760 --> 02:28:40,960
The others are the funding source for

3898
02:28:40,960 --> 02:28:44,479
that project are coming from RAP tax.

3899
02:28:44,479 --> 02:28:47,680
So with that

3900
02:28:47,680 --> 02:28:52,950
I wanted to start our discussion.

3901
02:28:52,960 --> 02:28:55,040
» All right.

3902
02:28:55,040 --> 02:28:58,800
Any questions on the wrap tax?

3903
02:28:58,800 --> 02:29:00,800
I know I've got a lot of feedback from

3904
02:29:00,800 --> 02:29:04,960
citizens and a common thread that I hear

3905
02:29:04,960 --> 02:29:10,880
is using the wrap tax for um shade sales

3906
02:29:10,880 --> 02:29:14,319
and especially shade at existing parks,

3907
02:29:14,319 --> 02:29:15,840
you know, that aren't going to be redone

3908
02:29:15,840 --> 02:29:18,160
anytime soon. But that's something I've

3909
02:29:18,160 --> 02:29:22,550
heard. Just an FYI.

3910
02:29:22,560 --> 02:29:25,280
» Yes,

3911
02:29:25,280 --> 02:29:27,760
>> I do have a question. So, can we go to

3912
02:29:27,760 --> 02:29:30,160
the arts part of it? Instead, we're just

3913
02:29:30,160 --> 02:29:32,399
looking at the part, right?

3914
02:29:32,399 --> 02:29:34,240
>> Yeah. So, you have to we make that

3915
02:29:34,240 --> 02:29:35,680
bigger.

3916
02:29:35,680 --> 02:29:38,960
>> Yeah. So, these dollar amounts here are

3917
02:29:38,960 --> 02:29:41,120
reflected in this more granular

3918
02:29:41,120 --> 02:29:43,200
breakdown up here.

3919
02:29:43,200 --> 02:29:44,800
>> So, they're the same numbers year to

3920
02:29:44,800 --> 02:29:45,120
year.

3921
02:29:45,120 --> 02:29:47,280
>> Can we zoom up on that, Kevin?

3922
02:29:47,280 --> 02:29:48,319
>> Yeah.

3923
02:29:48,319 --> 02:29:50,080
>> So, why do we have so much money going

3924
02:29:50,080 --> 02:29:51,840
to the library? We talked about the

3925
02:29:51,840 --> 02:29:54,800
library having their own funding source.

3926
02:29:54,800 --> 02:29:55,120
Yeah,

3927
02:29:55,120 --> 02:29:57,600
>> that's a great question. Um,

3928
02:29:57,600 --> 02:30:00,000
>> why are we subsidizing the library here?

3929
02:30:00,000 --> 02:30:03,120
>> The library has historically been

3930
02:30:03,120 --> 02:30:06,720
applying for the local arts grant funds.

3931
02:30:06,720 --> 02:30:08,560
So, let me back up just a little bit.

3932
02:30:08,560 --> 02:30:09,840
Um,

3933
02:30:09,840 --> 02:30:11,760
>> RAP doesn't just do our capital

3934
02:30:11,760 --> 02:30:14,319
projects, it also supports our local

3935
02:30:14,319 --> 02:30:17,120
arts programs. And as part of that, we

3936
02:30:17,120 --> 02:30:23,280
have uh put funding set aside for um

3937
02:30:23,280 --> 02:30:25,520
local arts projects. So external to

3938
02:30:25,520 --> 02:30:28,720
Provo City projects, local arts projects

3939
02:30:28,720 --> 02:30:31,359
of 25,000 a year has historically been

3940
02:30:31,359 --> 02:30:33,920
the amount of funds set aside. And there

3941
02:30:33,920 --> 02:30:35,760
was a competitive or is a competitive

3942
02:30:35,760 --> 02:30:38,240
grant process where people apply for

3943
02:30:38,240 --> 02:30:40,560
those funds. and the library was one of

3944
02:30:40,560 --> 02:30:44,880
those applicants um for and my

3945
02:30:44,880 --> 02:30:46,240
understanding is is that there's art

3946
02:30:46,240 --> 02:30:48,960
exhibits within the library that they

3947
02:30:48,960 --> 02:30:52,240
would apply for those funds and in

3948
02:30:52,240 --> 02:30:54,080
recent discussions with between the

3949
02:30:54,080 --> 02:30:57,600
directors to save the effort of the

3950
02:30:57,600 --> 02:31:00,720
library applying for those funds. There

3951
02:31:00,720 --> 02:31:02,080
was an agreement that there would be a

3952
02:31:02,080 --> 02:31:04,960
set aside amount to go to those art

3953
02:31:04,960 --> 02:31:07,120
exhibits within the library.

3954
02:31:07,120 --> 02:31:08,720
>> Right. But the library was only getting

3955
02:31:08,720 --> 02:31:10,640
only 2,000 a year through those grant

3956
02:31:10,640 --> 02:31:13,520
programs. This is five times the amount.

3957
02:31:13,520 --> 02:31:15,760
This is 10,000 instead of 2,000 set

3958
02:31:15,760 --> 02:31:16,319
aside.

3959
02:31:16,319 --> 02:31:18,319
>> Oh, so and it was purposely set aside by

3960
02:31:18,319 --> 02:31:20,160
us as opposed to the art board picking

3961
02:31:20,160 --> 02:31:21,600
it.

3962
02:31:21,600 --> 02:31:23,040
>> Yes.

3963
02:31:23,040 --> 02:31:25,359
>> And

3964
02:31:25,359 --> 02:31:27,040
there there may have been an award of

3965
02:31:27,040 --> 02:31:29,840
2,00 there's oftent times a request for

3966
02:31:29,840 --> 02:31:32,080
more and it's whittleled down because of

3967
02:31:32,080 --> 02:31:35,439
the limiting available funds. So, also

3968
02:31:35,439 --> 02:31:37,920
with the renewal of the wrap tax, we

3969
02:31:37,920 --> 02:31:40,640
have tripled the amount of arts grants

3970
02:31:40,640 --> 02:31:42,160
that we're setting aside each year. So,

3971
02:31:42,160 --> 02:31:45,040
going from 25,000 a year to 75,000 a

3972
02:31:45,040 --> 02:31:47,920
year for local arts grants to help fill

3973
02:31:47,920 --> 02:31:50,160
the need that of requests that are

3974
02:31:50,160 --> 02:31:51,120
coming in.

3975
02:31:51,120 --> 02:31:53,600
>> I think it's too much. I I think that's

3976
02:31:53,600 --> 02:31:55,840
too much for the library.

3977
02:31:55,840 --> 02:31:59,359
Um, honestly, if you even tripled it,

3978
02:31:59,359 --> 02:32:01,680
that's 6,000 versus 10,000. This is five

3979
02:32:01,680 --> 02:32:03,439
times the amount that they were getting

3980
02:32:03,439 --> 02:32:05,439
previous.

3981
02:32:05,439 --> 02:32:08,319
I So I I don't agree with that one.

3982
02:32:08,319 --> 02:32:10,960
What's music festivals? What's that? Why

3983
02:32:10,960 --> 02:32:12,160
is that up there?

3984
02:32:12,160 --> 02:32:13,600
>> There's no money in it.

3985
02:32:13,600 --> 02:32:15,439
>> Okay.

3986
02:32:15,439 --> 02:32:17,680
>> Um

3987
02:32:17,680 --> 02:32:19,760
with the

3988
02:32:19,760 --> 02:32:22,880
wrap tax funding availability.

3989
02:32:22,880 --> 02:32:25,760
Make sure I've got my note on this.

3990
02:32:25,760 --> 02:32:27,680
the

3991
02:32:27,680 --> 02:32:31,680
ability to appropriate funds for uh

3992
02:32:31,680 --> 02:32:35,200
musical performances or or cultural

3993
02:32:35,200 --> 02:32:37,439
uh performances within the city is an

3994
02:32:37,439 --> 02:32:40,479
allowable usage of the arts funds with

3995
02:32:40,479 --> 02:32:43,680
within the realm of the RAP tax write up

3996
02:32:43,680 --> 02:32:48,389
for the uh

3997
02:32:48,399 --> 02:32:50,080
it's not a bond that everybody voted on

3998
02:32:50,080 --> 02:32:50,800
but the uh

3999
02:32:50,800 --> 02:32:52,399
>> it could be but it's that there's

4000
02:32:52,399 --> 02:32:53,359
nothing in it for the next

4001
02:32:53,359 --> 02:32:54,560
>> Well, I realize there's nothing in it

4002
02:32:54,560 --> 02:32:56,479
but it's still a a category on there.

4003
02:32:56,479 --> 02:32:57,680
>> I'm assuming it's like the rooftop

4004
02:32:57,680 --> 02:33:00,160
concert series or things like that. I'm

4005
02:33:00,160 --> 02:33:02,080
saying it could be that could be a music

4006
02:33:02,080 --> 02:33:02,800
festival.

4007
02:33:02,800 --> 02:33:05,760
>> So, can I ask a question? Um, we have an

4008
02:33:05,760 --> 02:33:07,840
arts council and don't don't they get

4009
02:33:07,840 --> 02:33:09,840
together and talk about this kind of

4010
02:33:09,840 --> 02:33:12,479
thing, right? I mean,

4011
02:33:12,479 --> 02:33:14,240
>> so the arts council will get together

4012
02:33:14,240 --> 02:33:16,880
and approve the applications for those

4013
02:33:16,880 --> 02:33:19,359
arts grants as they are. So, the set

4014
02:33:19,359 --> 02:33:21,359
aside amount that we have and John will

4015
02:33:21,359 --> 02:33:23,040
show there's an increasing amount for

4016
02:33:23,040 --> 02:33:27,520
the community art grants. Those are seen and heard by that Rex,

4017
02:33:27,520 --> 02:33:29,600
>> right? So I guess there is a process by

4018
02:33:29,600 --> 02:33:30,000
how

4019
02:33:30,000 --> 02:33:32,000
>> right that's what the 75,000

4020
02:33:32,000 --> 02:33:32,560
>> has to be.

4021
02:33:32,560 --> 02:33:34,880
>> But this 10,000's new that was done

4022
02:33:34,880 --> 02:33:37,439
purposely just for them as opposed to

4023
02:33:37,439 --> 02:33:39,040
council dipping it out like it's usually

4024
02:33:39,040 --> 02:33:40,399
been done in the past.

4025
02:33:40,399 --> 02:33:41,120
>> Thank you.

4026
02:33:41,120 --> 02:33:44,080
>> And there had been lots of community

4027
02:33:44,080 --> 02:33:46,319
feedback and support during the campaign

4028
02:33:46,319 --> 02:33:48,560
for the wrap tax indicating that the

4029
02:33:48,560 --> 02:33:50,960
community wanted to have more funds

4030
02:33:50,960 --> 02:33:53,840
going for arts. you know, parks has been

4031
02:33:53,840 --> 02:33:56,640
using it well, but they wanted a a

4032
02:33:56,640 --> 02:33:59,600
greater percentage to go to art specific

4033
02:33:59,600 --> 02:34:02,000
things. So, tripling the community art

4034
02:34:02,000 --> 02:34:04,399
grants and adding for the library art

4035
02:34:04,399 --> 02:34:07,359
gallery is part of that response to the

4036
02:34:07,359 --> 02:34:09,520
public feedback. That was

4037
02:34:09,520 --> 02:34:11,200
>> that's definitely not the feedback I've

4038
02:34:11,200 --> 02:34:12,319
heard.

4039
02:34:12,319 --> 02:34:14,479
>> I've heard parks is all they care about.

4040
02:34:14,479 --> 02:34:17,439
>> Yep. Parks. That's me, too. So in in

4041
02:34:17,439 --> 02:34:18,960
general that's the way that we have used

4042
02:34:18,960 --> 02:34:21,760
our wrap tax funding uh is for capital

4043
02:34:21,760 --> 02:34:23,200
improvement projects something that will

4044
02:34:23,200 --> 02:34:24,720
last for a long time and be able to

4045
02:34:24,720 --> 02:34:26,160
benefit the community as a whole over

4046
02:34:26,160 --> 02:34:27,600
time. That's kind of been the philosophy

4047
02:34:27,600 --> 02:34:30,399
that we've been using up until now that

4048
02:34:30,399 --> 02:34:32,640
it is there are approved uses of it.

4049
02:34:32,640 --> 02:34:33,120
Yeah.

4050
02:34:33,120 --> 02:34:36,160
>> So what percentage of the art tax of the

4051
02:34:36,160 --> 02:34:39,040
bra tax goes to the arts and how do we

4052
02:34:39,040 --> 02:34:41,120
break that out? In the past, the the

4053
02:34:41,120 --> 02:34:45,439
prior 10 years, I believe it was 12% was

4054
02:34:45,439 --> 02:34:48,399
our target for the full distribution. So

4055
02:34:48,399 --> 02:34:51,600
that $15 million, 12% was what we were

4056
02:34:51,600 --> 02:34:54,080
targeting to the arts and trying to hit

4057
02:34:54,080 --> 02:34:57,840
that every year. That's where the 330

4058
02:34:57,840 --> 02:35:00,399
well was 330,000. It's increase this

4059
02:35:00,399 --> 02:35:04,800
year um each year for both the arts

4060
02:35:04,800 --> 02:35:07,520
grants and the CVY Center for the Arts.

4061
02:35:07,520 --> 02:35:09,280
Um, that's where those funds were

4062
02:35:09,280 --> 02:35:11,920
targeted for that. Now we're targeting

4063
02:35:11,920 --> 02:35:14,080
18%.

4064
02:35:14,080 --> 02:35:16,560
>> I I do think in our code it can't be

4065
02:35:16,560 --> 02:35:18,240
divvied out. The arts council has to

4066
02:35:18,240 --> 02:35:20,319
vote on that 10,000. It has to be done

4067
02:35:20,319 --> 02:35:22,399
all by the arts council. I think in our

4068
02:35:22,399 --> 02:35:26,800
code, do you know if that's the case?

4069
02:35:26,800 --> 02:35:30,080
>> Well, wrap tax perhaps not the percent

4070
02:35:30,080 --> 02:35:32,399
for the arts fund which is separate.

4071
02:35:32,399 --> 02:35:32,880
Okay.

4072
02:35:32,880 --> 02:35:35,760
>> And comes from CIP internal CIP

4073
02:35:35,760 --> 02:35:37,200
projects. Okay,

4074
02:35:37,200 --> 02:35:40,080
>> that is money strictly dedicated to arts

4075
02:35:40,080 --> 02:35:42,640
projects which is then has to go through

4076
02:35:42,640 --> 02:35:44,720
the arts council and can only be spent

4077
02:35:44,720 --> 02:35:46,399
on art as

4078
02:35:46,399 --> 02:35:47,920
>> okay so that's different than this

4079
02:35:47,920 --> 02:35:51,760
>> but it's overlaps because it overlaps

4080
02:35:51,760 --> 02:35:54,479
with wrath tax because wrap tax is also

4081
02:35:54,479 --> 02:35:56,160
art funding and then percent for the

4082
02:35:56,160 --> 02:35:58,319
arts is another fund that is just arts

4083
02:35:58,319 --> 02:35:58,960
fun

4084
02:35:58,960 --> 02:36:01,920
>> so there is an overlap

4085
02:36:01,920 --> 02:36:03,520
not the same funds

4086
02:36:03,520 --> 02:36:05,439
>> where's a percent do we have a percent

4087
02:36:05,439 --> 02:36:06,720
of the arts

4088
02:36:06,720 --> 02:36:08,880
breakdown of where that's been going.

4089
02:36:08,880 --> 02:36:12,240
Can we get that emailed to us?

4090
02:36:12,240 --> 02:36:14,960
>> From my understanding that it is in the

4091
02:36:14,960 --> 02:36:16,640
capital improvement plan. It's one of

4092
02:36:16,640 --> 02:36:18,960
the line items on each project.

4093
02:36:18,960 --> 02:36:21,040
>> But Becky, are you asking about the

4094
02:36:21,040 --> 02:36:23,040
percent for the arts program that Malia

4095
02:36:23,040 --> 02:36:24,479
just mentioned or the percent in the

4096
02:36:24,479 --> 02:36:24,960
wrap?

4097
02:36:24,960 --> 02:36:26,880
>> The percent of the arts that Malia just

4098
02:36:26,880 --> 02:36:28,800
mentioned because it's going somewhere.

4099
02:36:28,800 --> 02:36:31,040
It'd be nice to get where that is going

4100
02:36:31,040 --> 02:36:34,720
to because I realize that

4101
02:36:34,720 --> 02:36:37,280
you it it happens when capital

4102
02:36:37,280 --> 02:36:40,800
improvement programs are uh construction

4103
02:36:40,800 --> 02:36:43,439
happens. It's a percent of the project.

4104
02:36:43,439 --> 02:36:45,359
>> I don't know that we've had this current

4105
02:36:45,359 --> 02:36:48,240
fiscal year first year that we've paid

4106
02:36:48,240 --> 02:36:50,720
into it. So FY26 there should be fund

4107
02:36:50,720 --> 02:36:52,880
balance that the arts council is then

4108
02:36:52,880 --> 02:36:54,399
looking at and figuring out how to

4109
02:36:54,399 --> 02:36:57,920
spend. FY27 also has I believe Justin

4110
02:36:57,920 --> 02:37:00,800
sent out a report on the finance when we

4111
02:37:00,800 --> 02:37:03,680
went over CIP over the next five years

4112
02:37:03,680 --> 02:37:05,439
how much funding will go into the

4113
02:37:05,439 --> 02:37:07,600
percent for the arts fund but then the

4114
02:37:07,600 --> 02:37:09,359
arts council will need to divide up

4115
02:37:09,359 --> 02:37:12,000
among arts projects

4116
02:37:12,000 --> 02:37:14,560
across the city but I think this fiscal

4117
02:37:14,560 --> 02:37:16,640
year was the first one that money got

4118
02:37:16,640 --> 02:37:17,200
added

4119
02:37:17,200 --> 02:37:17,920
>> 26

4120
02:37:17,920 --> 02:37:20,560
>> yes money got added into that fund

4121
02:37:20,560 --> 02:37:21,200
balance

4122
02:37:21,200 --> 02:37:22,640
>> so is it just sitting in the fund

4123
02:37:22,640 --> 02:37:24,800
balance or has it been distributed

4124
02:37:24,800 --> 02:37:26,640
Hey, that's a great question. I had

4125
02:37:26,640 --> 02:37:29,359
understood that the funds needed to

4126
02:37:29,359 --> 02:37:31,920
either be used on the project for art

4127
02:37:31,920 --> 02:37:33,680
enhancements on the project to that

4128
02:37:33,680 --> 02:37:39,990
amount or it went into an account.

4129
02:37:40,000 --> 02:37:41,680
» So, it's it's sitting in an account at

4130
02:37:41,680 --> 02:37:43,200
this point in time and it has not been

4131
02:37:43,200 --> 02:37:45,200
used towards anything else

4132
02:37:45,200 --> 02:37:48,000
>> or it's still in the project account.

4133
02:37:48,000 --> 02:37:49,920
>> Yeah. So, this is the first year that a

4134
02:37:49,920 --> 02:37:52,560
project is available for that funding.

4135
02:37:52,560 --> 02:37:55,280
So, it hasn't been

4136
02:37:55,280 --> 02:37:58,240
started yet. Um, and it's just the new

4137
02:37:58,240 --> 02:37:59,439
city street lighting.

4138
02:37:59,439 --> 02:38:01,439
>> So, it is still sitting in an arts

4139
02:38:01,439 --> 02:38:03,439
account and it hasn't been busy yet.

4140
02:38:03,439 --> 02:38:06,080
>> Well, it technically isn't anywhere yet

4141
02:38:06,080 --> 02:38:07,520
because we haven't even started this

4142
02:38:07,520 --> 02:38:08,080
week.

4143
02:38:08,080 --> 02:38:11,520
>> Oh, so it's for 27, not 26.

4144
02:38:11,520 --> 02:38:13,680
>> Okay, I got it. I thought it was 26, not

4145
02:38:13,680 --> 02:38:14,720
27.

4146
02:38:14,720 --> 02:38:17,280
>> Okay, so this right here is is accounts

4147
02:38:17,280 --> 02:38:20,080
for 18% of the RAV tax.

4148
02:38:20,080 --> 02:38:23,760
>> Yes. And this is how it's

4149
02:38:23,760 --> 02:38:26,399
going to be spent.

4150
02:38:26,399 --> 02:38:28,479
Okay. And we we've traditionally used it

4151
02:38:28,479 --> 02:38:30,399
for maintenance for the cubby as well.

4152
02:38:30,399 --> 02:38:33,120
>> Yes. For capital improvements around the

4153
02:38:33,120 --> 02:38:35,200
that either increase efficiencies of the

4154
02:38:35,200 --> 02:38:38,800
facility or our safety uh things that

4155
02:38:38,800 --> 02:38:39,680
need to be addressed.

4156
02:38:39,680 --> 02:38:41,439
>> So is a portion of this also going to

4157
02:38:41,439 --> 02:38:43,280
that percent for the arts because it is

4158
02:38:43,280 --> 02:38:44,399
a capital improvement?

4159
02:38:44,399 --> 02:38:45,680
>> Yes, it is considered part of that

4160
02:38:45,680 --> 02:38:48,880
percent for the arts.

4161
02:38:48,880 --> 02:38:52,880
>> Okay. the 18% from raft tax not from the

4162
02:38:52,880 --> 02:38:54,560
project

4163
02:38:54,560 --> 02:38:56,399
specific account

4164
02:38:56,399 --> 02:39:00,000
>> but but this is in CIP so is this a

4165
02:39:00,000 --> 02:39:02,960
percent of the arts

4166
02:39:02,960 --> 02:39:04,720
is a percentage of this

4167
02:39:04,720 --> 02:39:07,120
>> we have we have overlapping terms here

4168
02:39:07,120 --> 02:39:11,200
>> the yeah the percent for the arts is a line item in the capital

4169
02:39:11,200 --> 02:39:13,040
improvement plan that is specific to

4170
02:39:13,040 --> 02:39:15,680
every project in the capital improvement

4171
02:39:15,680 --> 02:39:19,680
plan this is wrap tax allocation

4172
02:39:19,680 --> 02:39:23,359
for the arts out of rap tax only.

4173
02:39:23,359 --> 02:39:23,760
>> Right.

4174
02:39:23,760 --> 02:39:26,880
>> So this this is that 18% that we are

4175
02:39:26,880 --> 02:39:29,760
targeting of the overall revenues of rap

4176
02:39:29,760 --> 02:39:31,600
tax to be used for art.

4177
02:39:31,600 --> 02:39:33,520
>> But it's not going to overlap in and a

4178
02:39:33,520 --> 02:39:34,960
percentage of this go back. Right.

4179
02:39:34,960 --> 02:39:35,760
>> Correct.

4180
02:39:35,760 --> 02:39:37,359
>> It's just going to be used for this only

4181
02:39:37,359 --> 02:39:40,800
and no percent for the arts.

4182
02:39:40,800 --> 02:39:42,560
>> Thank you.

4183
02:39:42,560 --> 02:39:43,520
>> Council Hoben.

4184
02:39:43,520 --> 02:39:45,200
>> So what's the dollar amount difference

4185
02:39:45,200 --> 02:39:47,359
between the 12% and the 18% like

4186
02:39:47,359 --> 02:39:49,520
year-over-year? How much more is going

4187
02:39:49,520 --> 02:39:50,640
to arts?

4188
02:39:50,640 --> 02:39:52,880
>> Well, you have an increase of revenue.

4189
02:39:52,880 --> 02:39:53,280
>> Sure.

4190
02:39:53,280 --> 02:39:56,319
>> Is one thing. So, we averaged 1.5

4191
02:39:56,319 --> 02:39:58,880
million a year the past 10 years. So,

4192
02:39:58,880 --> 02:40:02,000
that's where the $330,000

4193
02:40:02,000 --> 02:40:05,120
a year for arts comes from. This next

4194
02:40:05,120 --> 02:40:06,880
forecast is we're going to be somewhere

4195
02:40:06,880 --> 02:40:10,800
about 2.5 million is our estimate on

4196
02:40:10,800 --> 02:40:13,359
average for the next 10 years. Um, you

4197
02:40:13,359 --> 02:40:15,200
know, part of that's just inflation and

4198
02:40:15,200 --> 02:40:16,800
part of that's just Provo doing well

4199
02:40:16,800 --> 02:40:18,160
economically.

4200
02:40:18,160 --> 02:40:21,040
So that's that's where this number

4201
02:40:21,040 --> 02:40:22,800
incrementally just keeps growing with

4202
02:40:22,800 --> 02:40:24,560
it.

4203
02:40:24,560 --> 02:40:26,880
>> I would say the average there about 375.

4204
02:40:26,880 --> 02:40:29,920
>> So maybe we went up 100 to 150K for

4205
02:40:29,920 --> 02:40:30,720
arts.

4206
02:40:30,720 --> 02:40:31,520
>> Yes.

4207
02:40:31,520 --> 02:40:35,920
>> And um can is are there uh new line

4208
02:40:35,920 --> 02:40:38,080
items on here? I mean the maybe the

4209
02:40:38,080 --> 02:40:39,920
library art gallery might be new might

4210
02:40:39,920 --> 02:40:42,080
be part of that 150 additional

4211
02:40:42,080 --> 02:40:44,319
>> and the increase the library art grants

4212
02:40:44,319 --> 02:40:47,840
by 25,000 to 75,000.

4213
02:40:47,840 --> 02:40:50,960
Okay. I'm just curious maybe like a side

4214
02:40:50,960 --> 02:40:54,000
by side like what has been added?

4215
02:40:54,000 --> 02:40:56,319
Could we see that

4216
02:40:56,319 --> 02:40:58,880
like highlight what's new? What are we

4217
02:40:58,880 --> 02:41:02,479
spending that extra 150k on?

4218
02:41:02,479 --> 02:41:04,720
>> Is that easy to provide?

4219
02:41:04,720 --> 02:41:07,760
>> I this this is the projected use. So

4220
02:41:07,760 --> 02:41:10,240
you're asking for prior years. Well, so

4221
02:41:10,240 --> 02:41:12,160
if if we were to see something like this

4222
02:41:12,160 --> 02:41:14,319
from a prior year, what's the variance

4223
02:41:14,319 --> 02:41:16,000
between that year and what you're

4224
02:41:16,000 --> 02:41:19,040
projecting now? And what is different?

4225
02:41:19,040 --> 02:41:20,880
You know, what have you added?

4226
02:41:20,880 --> 02:41:22,560
>> Like how much more is being used at the

4227
02:41:22,560 --> 02:41:24,960
cubby or how much more is in a library

4228
02:41:24,960 --> 02:41:26,560
in the community arts grants?

4229
02:41:26,560 --> 02:41:28,640
>> Yeah, the majority of the increase is

4230
02:41:28,640 --> 02:41:31,920
those um

4231
02:41:31,920 --> 02:41:33,439
can be going on percentage for the arts,

4232
02:41:33,439 --> 02:41:35,200
but it's the um

4233
02:41:35,200 --> 02:41:35,920
>> I got you messed up.

4234
02:41:35,920 --> 02:41:38,160
>> You've got an community arts grants.

4235
02:41:38,160 --> 02:41:40,000
That's that's 50,000 increase

4236
02:41:40,000 --> 02:41:41,120
>> and then the 10,000

4237
02:41:41,120 --> 02:41:42,560
>> 10,000 increase for library that's

4238
02:41:42,560 --> 02:41:46,399
60,000 and then there's um the CVY

4239
02:41:46,399 --> 02:41:46,960
center program

4240
02:41:46,960 --> 02:41:48,160
>> and the rest would be

4241
02:41:48,160 --> 02:41:49,600
>> probably okay

4242
02:41:49,600 --> 02:41:50,880
>> so it's about half

4243
02:41:50,880 --> 02:41:53,439
>> all right thank you

4244
02:41:53,439 --> 02:41:54,960
>> um councelor Christensen

4245
02:41:54,960 --> 02:41:58,080
>> I'm sorry to be sorry to be slow

4246
02:41:58,080 --> 02:41:59,840
I can see exactly what we're talking

4247
02:41:59,840 --> 02:42:02,240
about when you talk about the CVY center

4248
02:42:02,240 --> 02:42:05,200
because it's listed right there

4249
02:42:05,200 --> 02:42:07,840
I I don't know what community arts

4250
02:42:07,840 --> 02:42:13,040
grants and the library specifically what that's being spent on. Can you tell

4251
02:42:13,040 --> 02:42:15,120
me that? Is it just not listed or you

4252
02:42:15,120 --> 02:42:15,359
don't?

4253
02:42:15,359 --> 02:42:16,960
>> No. No. I'm going to start with the

4254
02:42:16,960 --> 02:42:18,720
library because my understanding is they

4255
02:42:18,720 --> 02:42:22,399
have art displays exhibits in a room or

4256
02:42:22,399 --> 02:42:24,479
two in the library that can be walked by

4257
02:42:24,479 --> 02:42:25,120
the public

4258
02:42:25,120 --> 02:42:26,640
>> like the National Geographic thing

4259
02:42:26,640 --> 02:42:27,600
>> like the attic.

4260
02:42:27,600 --> 02:42:29,680
>> Yeah, they have the attic. Okay.

4261
02:42:29,680 --> 02:42:34,800
>> And so this this funds the u artist or

4262
02:42:34,800 --> 02:42:36,640
the the use of the room for that period

4263
02:42:36,640 --> 02:42:38,160
of time. Got it. Okay. Now,

4264
02:42:38,160 --> 02:42:40,479
>> and a quick note on that is they like to

4265
02:42:40,479 --> 02:42:42,720
be able to bring in shows from outside

4266
02:42:42,720 --> 02:42:44,240
artists and they've had to cut back on

4267
02:42:44,240 --> 02:42:46,960
that with the budget cut and so they've

4268
02:42:46,960 --> 02:42:49,120
only done local artists for the most

4269
02:42:49,120 --> 02:42:52,240
recent one, but in order to bring in art

4270
02:42:52,240 --> 02:42:54,160
shows for the community, that's part of

4271
02:42:54,160 --> 02:42:54,720
what this

4272
02:42:54,720 --> 02:42:57,040
>> Okay. So, the library art gallery is

4273
02:42:57,040 --> 02:42:57,439
Yes.

4274
02:42:57,439 --> 02:43:00,240
>> bring in uh shows or exhibits.

4275
02:43:00,240 --> 02:43:00,800
>> Yes.

4276
02:43:00,800 --> 02:43:03,520
>> Okay. Um how about the community arts

4277
02:43:03,520 --> 02:43:04,640
grants?

4278
02:43:04,640 --> 02:43:08,160
>> Yes. It varies. The submissions come

4279
02:43:08,160 --> 02:43:10,479
from the community and they have

4280
02:43:10,479 --> 02:43:13,200
historically been up to $5,000 awards

4281
02:43:13,200 --> 02:43:15,359
for grants. These could go towards

4282
02:43:15,359 --> 02:43:21,120
performing arts um like dance or um

4283
02:43:21,120 --> 02:43:22,800
people who can't afford tickets to the

4284
02:43:22,800 --> 02:43:25,840
Nutcracker. They would cover the cost of

4285
02:43:25,840 --> 02:43:27,760
entry for those people in it. They

4286
02:43:27,760 --> 02:43:29,600
specifically asked for that in their

4287
02:43:29,600 --> 02:43:30,800
grant application.

4288
02:43:30,800 --> 02:43:31,760
>> Downtown Murals.

4289
02:43:31,760 --> 02:43:34,399
I've got another

4290
02:43:34,399 --> 02:43:36,319
>> Bear in the Park. This is what the arts

4291
02:43:36,319 --> 02:43:38,160
council is deciding on.

4292
02:43:38,160 --> 02:43:40,399
>> Yes. From the grand.

4293
02:43:40,399 --> 02:43:41,680
It's like CDBG.

4294
02:43:41,680 --> 02:43:43,120
>> Yeah. Yeah.

4295
02:43:43,120 --> 02:43:46,880
>> We have the last say in SBG

4296
02:43:46,880 --> 02:43:48,000
>> and we don't ours.

4297
02:43:48,000 --> 02:43:49,600
>> Yeah. Got that. Thank you. That's

4298
02:43:49,600 --> 02:43:52,240
helpful.

4299
02:43:52,240 --> 02:43:54,640
>> I also want to point out that there's

4300
02:43:54,640 --> 02:43:57,359
also an art gallery and exhibits that

4301
02:43:57,359 --> 02:44:00,160
happen in the CVY center. So very

4302
02:44:00,160 --> 02:44:04,479
similar uh between the library and the

4303
02:44:04,479 --> 02:44:06,160
cubby center for those displays. Please

4304
02:44:06,160 --> 02:44:07,680
say one or the other.

4305
02:44:07,680 --> 02:44:10,479
>> Thank you.

4306
02:44:10,479 --> 02:44:13,600
>> All right. Any more questions?

4307
02:44:13,600 --> 02:44:16,000
Okay. Thanks you guys.

4308
02:44:16,000 --> 02:44:16,800
>> Thank you.

4309
02:44:16,800 --> 02:44:18,240
>> All right. Are you guys okay if we forgo

4310
02:44:18,240 --> 02:44:21,120
the break?

4311
02:44:21,120 --> 02:44:24,319
>> But you're okay. Five minutes then. Five

4312
02:44:24,319 --> 02:44:26,319
minutes. Otherwise, keep going. We'll

4313
02:44:26,319 --> 02:44:30,790
>> see you.

4314
02:44:30,800 --> 02:44:32,960
Recording stopped.

4315
02:44:32,960 --> 02:44:36,319
>> All right, we're going to start.

4316
02:44:36,319 --> 02:44:39,120
>> Recording in progress.

4317
02:44:39,120 --> 02:44:40,720
>> All right, next we have a presentation

4318
02:44:40,720 --> 02:44:42,800
regarding debts and revenues. And this

4319
02:44:42,800 --> 02:44:44,160
be presented by Dan Flet, our

4320
02:44:44,160 --> 02:44:45,680
administrative services interimm

4321
02:44:45,680 --> 02:44:49,030
director.

4322
02:44:49,040 --> 02:44:50,800
» Welcome, Dan.

4323
02:44:50,800 --> 02:44:54,560
>> Thank you, councel. Um, I'm going to

4324
02:44:54,560 --> 02:44:56,399
talk about debt first and then Kelsey's

4325
02:44:56,399 --> 02:44:57,359
going to talk a little bit about

4326
02:44:57,359 --> 02:45:03,349
revenue. Can you bring up the

4327
02:45:03,359 --> 02:45:05,600
» This is one of my favorite spreadsheets

4328
02:45:05,600 --> 02:45:08,080
and every year I apologize to the

4329
02:45:08,080 --> 02:45:12,000
council for how small it is. I'll um

4330
02:45:12,000 --> 02:45:14,080
I'll I'll let me just start and I'm

4331
02:45:14,080 --> 02:45:16,000
going to talk about each column first

4332
02:45:16,000 --> 02:45:18,160
and then um we can look at some of the

4333
02:45:18,160 --> 02:45:20,880
details. But in the lefth hand column is

4334
02:45:20,880 --> 02:45:24,720
a description of the debt and and uh it

4335
02:45:24,720 --> 02:45:26,160
we've tried to include in the

4336
02:45:26,160 --> 02:45:28,880
description um what the debt was

4337
02:45:28,880 --> 02:45:31,520
utilized for. So for instance these

4338
02:45:31,520 --> 02:45:33,600
first two items here are general obl

4339
02:45:33,600 --> 02:45:36,560
obligation bonds. The city has two sets

4340
02:45:36,560 --> 02:45:40,399
of general obligation bonds. One was for

4341
02:45:40,399 --> 02:45:42,880
um the rec center one set of bonds and

4342
02:45:42,880 --> 02:45:45,680
the other is for city hall and fire two

4343
02:45:45,680 --> 02:45:49,439
for instance. Um the the first set of

4344
02:45:49,439 --> 02:45:50,960
bonds listed here, rec center

4345
02:45:50,960 --> 02:45:54,160
refinancing bond for instance, it says

4346
02:45:54,160 --> 02:45:56,960
uh series 2017.

4347
02:45:56,960 --> 02:45:59,920
Uh most of you know that the rec center

4348
02:45:59,920 --> 02:46:02,560
came online much before that. That's

4349
02:46:02,560 --> 02:46:05,600
this was a refinancing that was done. It

4350
02:46:05,600 --> 02:46:08,000
saved the taxpayers

4351
02:46:08,000 --> 02:46:10,640
approximately $2.8 million when we

4352
02:46:10,640 --> 02:46:13,439
refinanced them in 2017.

4353
02:46:13,439 --> 02:46:16,319
What I'll mention along those lines is

4354
02:46:16,319 --> 02:46:18,240
as we move across, we'll see interest

4355
02:46:18,240 --> 02:46:20,800
rates and I'll talk about those, but we

4356
02:46:20,800 --> 02:46:23,120
continually monitor

4357
02:46:23,120 --> 02:46:25,359
uh what the interest rates are on all of

4358
02:46:25,359 --> 02:46:27,920
our debt and how that compares to the

4359
02:46:27,920 --> 02:46:29,760
market and whether or not it would make

4360
02:46:29,760 --> 02:46:32,640
sense to refinance the debt at any point

4361
02:46:32,640 --> 02:46:34,800
in time. Unfortunately, as you can

4362
02:46:34,800 --> 02:46:37,359
imagine, right now, um the interest rate

4363
02:46:37,359 --> 02:46:39,200
environment is not necessarily in our

4364
02:46:39,200 --> 02:46:41,760
favor for refinancing. That's the bad

4365
02:46:41,760 --> 02:46:43,439
news. The good news is if you look at

4366
02:46:43,439 --> 02:46:49,520
our interest rates um they're all very competitive uh in today's market.

4367
02:46:49,520 --> 02:46:52,080
Um so moving down the list um the next

4368
02:46:52,080 --> 02:46:56,479
one I'll mention uh is telecom 2004

4369
02:46:56,479 --> 02:46:58,720
sales tax bonds. These were the bonds

4370
02:46:58,720 --> 02:47:01,680
that were issued uh 20 years ago to

4371
02:47:01,680 --> 02:47:04,319
finance uh the fiber network that

4372
02:47:04,319 --> 02:47:07,200
ultimately was acquired by and operated

4373
02:47:07,200 --> 02:47:11,600
by Google Fiber. The good news is um

4374
02:47:11,600 --> 02:47:13,600
those bonds,

4375
02:47:13,600 --> 02:47:15,439
the other thing I should mention is all

4376
02:47:15,439 --> 02:47:17,439
of these numbers are as of June 30th,

4377
02:47:17,439 --> 02:47:20,240
2025, the date of our last audited

4378
02:47:20,240 --> 02:47:22,880
financial statements. They tie to those

4379
02:47:22,880 --> 02:47:25,359
audited financial statements. Uh when

4380
02:47:25,359 --> 02:47:27,200
you go across, you can see the final

4381
02:47:27,200 --> 02:47:30,240
maturity date, uh the telecom bonds,

4382
02:47:30,240 --> 02:47:33,520
final maturity date, February 15th,

4383
02:47:33,520 --> 02:47:37,279
2026. Those are paid off. Um now there

4384
02:47:37,279 --> 02:47:39,680
are no more payments on those. So that's

4385
02:47:39,680 --> 02:47:41,920
kind of exciting to have um debt drop

4386
02:47:41,920 --> 02:47:45,040
off. Um moving down, we have cemetery

4387
02:47:45,040 --> 02:47:48,399
bonds that were were issued to expand

4388
02:47:48,399 --> 02:47:52,160
the cemetery uh several years ago. Uh

4389
02:47:52,160 --> 02:47:56,800
and then um we move into notes payable.

4390
02:47:56,800 --> 02:47:59,680
We have a section 108 note payable that

4391
02:47:59,680 --> 02:48:02,000
was utilized um for airport

4392
02:48:02,000 --> 02:48:04,880
improvements. We have leases. These

4393
02:48:04,880 --> 02:48:08,080
leases are the first two fire apparatus

4394
02:48:08,080 --> 02:48:11,840
leases are taxexempt leases.

4395
02:48:11,840 --> 02:48:15,680
Um, and they're utilized to

4396
02:48:15,680 --> 02:48:17,439
they're leases under the Internal

4397
02:48:17,439 --> 02:48:20,240
Revenue Code. Think of them as the

4398
02:48:20,240 --> 02:48:22,000
reason they're leases is so that they

4399
02:48:22,000 --> 02:48:24,720
can be taxexempt. Um, meaning the

4400
02:48:24,720 --> 02:48:26,640
investor is willing to accept a lower

4401
02:48:26,640 --> 02:48:29,680
interest rate, meaning Provo City pays a

4402
02:48:29,680 --> 02:48:31,200
lower interest rate and it's more

4403
02:48:31,200 --> 02:48:33,760
cost-effective. Um, but they're not

4404
02:48:33,760 --> 02:48:36,720
leases like a car lease where you turn

4405
02:48:36,720 --> 02:48:38,640
the car in at the end of the lease.

4406
02:48:38,640 --> 02:48:41,520
They're really financing leases where we

4407
02:48:41,520 --> 02:48:44,720
own the fire trucks at the end of of the

4408
02:48:44,720 --> 02:48:47,680
lease. And so we have two of those. And

4409
02:48:47,680 --> 02:48:49,680
then we have just a regular lease. We

4410
02:48:49,680 --> 02:48:52,720
pay monthtomonth. We commit uh several

4411
02:48:52,720 --> 02:48:55,359
years at a time for the justice court

4412
02:48:55,359 --> 02:48:58,240
building premises. Moving down into the

4413
02:48:58,240 --> 02:49:00,560
business type activities,

4414
02:49:00,560 --> 02:49:02,479
um you can see that most of these are

4415
02:49:02,479 --> 02:49:05,439
utilities or they're the airport or

4416
02:49:05,439 --> 02:49:08,800
they're the golf course. And these are

4417
02:49:08,800 --> 02:49:10,640
what are known as revenue bonds. They're

4418
02:49:10,640 --> 02:49:13,840
repaid with revenues from uh the various

4419
02:49:13,840 --> 02:49:18,399
systems. Um and if you look across, we

4420
02:49:18,399 --> 02:49:20,399
uh again the principal balance as of

4421
02:49:20,399 --> 02:49:22,720
June 30th, 2025

4422
02:49:22,720 --> 02:49:25,840
is listed um for each one of them. The

4423
02:49:25,840 --> 02:49:29,920
annual payment is principal and interest

4424
02:49:29,920 --> 02:49:32,880
um that we pay on an annual basis for

4425
02:49:32,880 --> 02:49:35,760
each of these debt um items that are

4426
02:49:35,760 --> 02:49:38,560
issued. And then um you can see the

4427
02:49:38,560 --> 02:49:41,920
original issue amount um and that gives

4428
02:49:41,920 --> 02:49:43,680
you an idea of what we originally

4429
02:49:43,680 --> 02:49:45,439
borrowed, what we've paid down to at

4430
02:49:45,439 --> 02:49:48,720
this point in time. The next column is

4431
02:49:48,720 --> 02:49:51,520
interest rate and then the next column

4432
02:49:51,520 --> 02:49:55,439
is repayment terms. uh the the long so

4433
02:49:55,439 --> 02:49:59,520
we have uh 20 years uh on each one of

4434
02:49:59,520 --> 02:50:02,880
those is the longest on this schedule.

4435
02:50:02,880 --> 02:50:05,200
The final maturity date meaning the date

4436
02:50:05,200 --> 02:50:07,760
that we make the last payment. And then

4437
02:50:07,760 --> 02:50:11,040
the next column is uh where is the

4438
02:50:11,040 --> 02:50:13,840
payment funding source derived from as

4439
02:50:13,840 --> 02:50:15,840
you can see for the utility revenue

4440
02:50:15,840 --> 02:50:18,160
bonds um they come from the various

4441
02:50:18,160 --> 02:50:21,840
systems. Um the U dot airport bonds uh

4442
02:50:21,840 --> 02:50:25,040
will receive MAG revenues to repay those

4443
02:50:25,040 --> 02:50:27,520
and then um golf course revenues for

4444
02:50:27,520 --> 02:50:30,000
both the golf carts uh and the golf

4445
02:50:30,000 --> 02:50:31,760
course maintenance equipment.

4446
02:50:31,760 --> 02:50:32,560
>> Wait, Dan.

4447
02:50:32,560 --> 02:50:32,880
>> Yes.

4448
02:50:32,880 --> 02:50:34,479
>> Did you say that there were revenue

4449
02:50:34,479 --> 02:50:36,720
bonds for the golf course?

4450
02:50:36,720 --> 02:50:39,040
>> The the golf course ones

4451
02:50:39,040 --> 02:50:40,000
>> leases

4452
02:50:40,000 --> 02:50:42,640
>> are um they're actually leases,

4453
02:50:42,640 --> 02:50:43,040
>> right?

4454
02:50:43,040 --> 02:50:45,279
>> And there's two types of leases here.

4455
02:50:45,279 --> 02:50:47,200
The golf course maintenance equipment

4456
02:50:47,200 --> 02:50:49,760
lease. We own the equipment at the end

4457
02:50:49,760 --> 02:50:52,640
of the lease. It's a taxexempt lease as

4458
02:50:52,640 --> 02:50:55,120
you can see in the next column. The next

4459
02:50:55,120 --> 02:50:57,600
one is just a regular lease. And I'll

4460
02:50:57,600 --> 02:50:59,920
compare it to like if you lease a car.

4461
02:50:59,920 --> 02:51:04,000
We've leased the golf carts uh for

4462
02:51:04,000 --> 02:51:06,560
essentially 5 years and then at the end

4463
02:51:06,560 --> 02:51:10,080
of at the end of the lease we turn them

4464
02:51:10,080 --> 02:51:13,040
back in and start a new lease on new

4465
02:51:13,040 --> 02:51:14,640
golf carts is how we've done that. And

4466
02:51:14,640 --> 02:51:17,120
that way um it's been more cost

4467
02:51:17,120 --> 02:51:19,359
effective to do it that way and it

4468
02:51:19,359 --> 02:51:23,359
ensures that we keep um reasonably new

4469
02:51:23,359 --> 02:51:26,640
equipment available for golf carts. It

4470
02:51:26,640 --> 02:51:30,399
also has enabled us to move from gas to

4471
02:51:30,399 --> 02:51:32,640
electric uh to where the fleet's all

4472
02:51:32,640 --> 02:51:34,880
electric at this point in time.

4473
02:51:34,880 --> 02:51:36,720
>> So that is very helpful. But there are

4474
02:51:36,720 --> 02:51:38,960
no revenue bonds for the golf.

4475
02:51:38,960 --> 02:51:40,560
>> There's no revenue bonds for the golf

4476
02:51:40,560 --> 02:51:42,479
course. you know, it's strictly the

4477
02:51:42,479 --> 02:51:44,160
maintenance equipment and the golf

4478
02:51:44,160 --> 02:51:46,720
carts. Uh, it's all that's there. And

4479
02:51:46,720 --> 02:51:48,880
then the last uh I mean the second to

4480
02:51:48,880 --> 02:51:51,760
last column is the tax status. And I'll

4481
02:51:51,760 --> 02:51:53,680
just highlight a couple of items there.

4482
02:51:53,680 --> 02:51:58,080
So, as I mentioned, um, in most cases,

4483
02:51:58,080 --> 02:52:01,200
we're eligible as a city to issue debt

4484
02:52:01,200 --> 02:52:04,319
on a tax exempt basis, meaning um that

4485
02:52:04,319 --> 02:52:08,000
the investor does not pay uh income tax

4486
02:52:08,000 --> 02:52:12,000
on the interest income they receive um

4487
02:52:12,000 --> 02:52:15,040
from buying these bonds. And and because

4488
02:52:15,040 --> 02:52:16,640
they don't pay tax, they're willing to

4489
02:52:16,640 --> 02:52:18,880
accept a lower rate and therefore the

4490
02:52:18,880 --> 02:52:23,279
city pays a lower rate in some cases. So

4491
02:52:23,279 --> 02:52:25,920
you'll see three wastewater well these

4492
02:52:25,920 --> 02:52:28,319
two wastewater revenue bonds and the

4493
02:52:28,319 --> 02:52:30,720
water revenue bonds

4494
02:52:30,720 --> 02:52:33,760
um are taxable

4495
02:52:33,760 --> 02:52:37,840
and um the reason that those are taxable

4496
02:52:37,840 --> 02:52:40,399
is they the investor is the department

4497
02:52:40,399 --> 02:52:43,040
of water quality and so when we issued

4498
02:52:43,040 --> 02:52:45,359
those bonds because the department of

4499
02:52:45,359 --> 02:52:47,920
water quality doesn't pay income tax

4500
02:52:47,920 --> 02:52:50,399
they're indifferent as to whether or not

4501
02:52:50,399 --> 02:52:53,279
it's taxexempt or Uh and from our

4502
02:52:53,279 --> 02:52:54,880
perspective because they were

4503
02:52:54,880 --> 02:52:57,200
indifferent and it didn't it didn't have

4504
02:52:57,200 --> 02:52:59,760
any impact on the rate uh because they

4505
02:52:59,760 --> 02:53:01,439
don't plan on selling those bonds. They

4506
02:53:01,439 --> 02:53:05,120
can't sell those bonds. Um we asked that

4507
02:53:05,120 --> 02:53:07,680
they be taxable

4508
02:53:07,680 --> 02:53:09,439
uh because

4509
02:53:09,439 --> 02:53:13,760
um you have a much lower likelihood of

4510
02:53:13,760 --> 02:53:16,960
an IRS audit on a taxable bond versus a

4511
02:53:16,960 --> 02:53:20,160
tax exempt bond. I think since I've been

4512
02:53:20,160 --> 02:53:21,680
at Provo, we've had three different

4513
02:53:21,680 --> 02:53:25,600
audits of our taxexempt issuances. Um,

4514
02:53:25,600 --> 02:53:28,399
and so it's fairly common that the IRS

4515
02:53:28,399 --> 02:53:29,920
looks at those and so we structure them

4516
02:53:29,920 --> 02:53:32,560
that way because there was um not a

4517
02:53:32,560 --> 02:53:35,439
benefit to the investor and only a

4518
02:53:35,439 --> 02:53:37,120
detriment to us and it didn't change the

4519
02:53:37,120 --> 02:53:39,279
overall interest rate. As you can see,

4520
02:53:39,279 --> 02:53:42,080
two of them are one half of 1% and the

4521
02:53:42,080 --> 02:53:44,880
other's at 1%. So um it was the

4522
02:53:44,880 --> 02:53:46,080
department of water quality

4523
02:53:46,080 --> 02:53:48,160
incentivizing the city to make

4524
02:53:48,160 --> 02:53:50,160
improvements to the wastewater system

4525
02:53:50,160 --> 02:53:53,840
and also uh the water system.

4526
02:53:53,840 --> 02:53:56,560
Um the one column I think I miss missed

4527
02:53:56,560 --> 02:53:59,520
is the call date call feature. Um,

4528
02:53:59,520 --> 02:54:01,920
generally when you issue publicly traded

4529
02:54:01,920 --> 02:54:06,160
debt, um, the investor wants to know

4530
02:54:06,160 --> 02:54:08,160
that they'll get, if it's a 20-year

4531
02:54:08,160 --> 02:54:09,840
issuance, that they'll get at least 10

4532
02:54:09,840 --> 02:54:14,240
years, um, before you refinance the bond

4533
02:54:14,240 --> 02:54:18,240
away from them. And so we, um, when we

4534
02:54:18,240 --> 02:54:23,040
issue debt, um, generally there's a call feature that's 10 years

4535
02:54:23,040 --> 02:54:25,680
down the road. So, we can't refinance

4536
02:54:25,680 --> 02:54:28,160
the debt during the first 10 years, but

4537
02:54:28,160 --> 02:54:30,080
during the second 10 years, we can. And

4538
02:54:30,080 --> 02:54:32,560
that's where we analyze all the time.

4539
02:54:32,560 --> 02:54:35,520
Uh, if there um is an opportunity to

4540
02:54:35,520 --> 02:54:38,560
refinance at a lower rate when there's

4541
02:54:38,560 --> 02:54:41,120
no prepayment penalty, we could actually

4542
02:54:41,120 --> 02:54:45,520
do it at any point in time. Um, I I

4543
02:54:45,520 --> 02:54:47,680
doubt we're going to be refinancing

4544
02:54:47,680 --> 02:54:50,960
these two at one half of 1%, you know.

4545
02:54:50,960 --> 02:54:52,160
um that would be a very different

4546
02:54:52,160 --> 02:54:54,000
environment than we're in today.

4547
02:54:54,000 --> 02:54:56,800
Finally, the last column is the the

4548
02:54:56,800 --> 02:54:59,120
ratings on each of the bonds that are

4549
02:54:59,120 --> 02:55:02,160
publicly issued, publicly traded, um

4550
02:55:02,160 --> 02:55:04,319
sold in the public markets. And there's

4551
02:55:04,319 --> 02:55:07,200
three rating agencies. Uh S&P, standard

4552
02:55:07,200 --> 02:55:09,680
and pores, Moody's, and Fitch. And you

4553
02:55:09,680 --> 02:55:12,800
can see for each of our issuances

4554
02:55:12,800 --> 02:55:15,600
um what the ratings are. Um, AAA is the

4555
02:55:15,600 --> 02:55:20,160
top rating. Um, and and um the we've

4556
02:55:20,160 --> 02:55:23,359
received AAA ratings on most of our

4557
02:55:23,359 --> 02:55:26,319
sales tax related bonds. These airport

4558
02:55:26,319 --> 02:55:29,040
sales tax bonds, they're backed by

4559
02:55:29,040 --> 02:55:32,560
collateralized by sales tax. Uh, and so

4560
02:55:32,560 --> 02:55:35,840
overall, Provo's ratings um are

4561
02:55:35,840 --> 02:55:37,680
excellent. They're considered investment

4562
02:55:37,680 --> 02:55:41,359
grade or above. Um and it just reflects

4563
02:55:41,359 --> 02:55:44,720
u the overall management of the city um

4564
02:55:44,720 --> 02:55:46,880
from the administration and councils

4565
02:55:46,880 --> 02:55:50,880
over time. So that's uh a very high

4566
02:55:50,880 --> 02:55:54,319
level overview of of where the debt is.

4567
02:55:54,319 --> 02:55:57,120
I'd be happy to answer any questions.

4568
02:55:57,120 --> 02:55:59,120
>> Thanks Dan. And I think an important

4569
02:55:59,120 --> 02:56:00,479
thing to your mind, I think we talked

4570
02:56:00,479 --> 02:56:05,120
about this last year, but this the state

4571
02:56:05,120 --> 02:56:06,319
controls how much debt we're even

4572
02:56:06,319 --> 02:56:07,920
allowed to have based on our assessed

4573
02:56:07,920 --> 02:56:10,800
value. And we are like roughly 10% of

4574
02:56:10,800 --> 02:56:12,960
what the state would allow us in debt.

4575
02:56:12,960 --> 02:56:13,760
And that's huge.

4576
02:56:13,760 --> 02:56:14,960
>> And I should have brought that. But we

4577
02:56:14,960 --> 02:56:17,040
are very very low very low

4578
02:56:17,040 --> 02:56:19,200
>> in terms of what we could legally issue.

4579
02:56:19,200 --> 02:56:21,680
We could issue hundreds of millions of

4580
02:56:21,680 --> 02:56:24,640
dollars more than we've issued uh in

4581
02:56:24,640 --> 02:56:28,560
debt. Um but um that's not how Provo has

4582
02:56:28,560 --> 02:56:29,279
been managed. So

4583
02:56:29,279 --> 02:56:31,600
>> yeah, which is how we like it. Um any

4584
02:56:31,600 --> 02:56:34,800
questions for Dan?

4585
02:56:34,800 --> 02:56:37,600
Delta uh is going to I think

4586
02:56:37,600 --> 02:56:38,560
>> oh present

4587
02:56:38,560 --> 02:56:40,080
>> councelor Bogdan has a question for you.

4588
02:56:40,080 --> 02:56:41,840
No I just I just wanted to make a point

4589
02:56:41,840 --> 02:56:44,720
to we're also

4590
02:56:44,720 --> 02:56:47,120
have a limit on how much we can tax the

4591
02:56:47,120 --> 02:56:48,800
public too and we're very low on that

4592
02:56:48,800 --> 02:56:49,439
too, aren't we?

4593
02:56:49,439 --> 02:56:50,399
>> We are.

4594
02:56:50,399 --> 02:56:51,359
>> very very low.

4595
02:56:51,359 --> 02:56:52,880
>> So that means that we're running pretty

4596
02:56:52,880 --> 02:56:53,840
efficiently, right?

4597
02:56:53,840 --> 02:56:54,880
>> We are.

4598
02:56:54,880 --> 02:56:55,359
>> Yes.

4599
02:56:55,359 --> 02:56:56,880
>> We're not going to go bankrupt in 10

4600
02:56:56,880 --> 02:57:00,720
years or anything. Um, I can tell you so

4601
02:57:00,720 --> 02:57:04,160
we meet generally um at least once a

4602
02:57:04,160 --> 02:57:06,720
year if not twice a year with the rating

4603
02:57:06,720 --> 02:57:09,840
agencies um on all of these ratings and

4604
02:57:09,840 --> 02:57:13,359
they reanalyze whether or not um the

4605
02:57:13,359 --> 02:57:15,760
rating should be maintained

4606
02:57:15,760 --> 02:57:20,160
uh um decreased or improved or whether

4607
02:57:20,160 --> 02:57:21,600
um they should issue any kind of

4608
02:57:21,600 --> 02:57:24,319
warnings or anything like that. And the

4609
02:57:24,319 --> 02:57:26,880
comments are consistently

4610
02:57:26,880 --> 02:57:29,279
positive about

4611
02:57:29,279 --> 02:57:34,399
um they usually run along the lines of

4612
02:57:34,399 --> 02:57:38,000
Utah overall. Um the municipalities in

4613
02:57:38,000 --> 02:57:43,600
Utah are wellmanaged and conservatively

4614
02:57:43,600 --> 02:57:45,359
operated

4615
02:57:45,359 --> 02:57:53,600
and Provo kind of leads uh in that in within Utah. Provo is considered

4616
02:57:53,600 --> 02:57:58,399
um a very very good and safe

4617
02:57:58,399 --> 02:58:05,200
uh investment risk for investors. So and our ratings reflect that. I mean the

4618
02:58:05,200 --> 02:58:07,600
in general the only reason that we don't

4619
02:58:07,600 --> 02:58:11,920
have AAA ratings across the board is

4620
02:58:11,920 --> 02:58:13,600
just the overall size of our

4621
02:58:13,600 --> 02:58:15,200
municipality.

4622
02:58:15,200 --> 02:58:19,600
But as as our population grows and as um

4623
02:58:19,600 --> 02:58:24,080
our our economic environment diversifies

4624
02:58:24,080 --> 02:58:26,080
um I think the day will come that we'll

4625
02:58:26,080 --> 02:58:29,439
start to see more AAA ratings for non-

4626
02:58:29,439 --> 02:58:32,960
sales tax backed issuances.

4627
02:58:32,960 --> 02:58:35,120
Um but that'll just take some time.

4628
02:58:35,120 --> 02:58:39,279
Right now, Salt Lake City is really um

4629
02:58:39,279 --> 02:58:42,640
is the only city I'm aware of in Utah

4630
02:58:42,640 --> 02:58:45,920
that for non- sales tax issuances has

4631
02:58:45,920 --> 02:58:47,680
received AAA ratings. So,

4632
02:58:47,680 --> 02:58:48,399
>> Oh, wow.

4633
02:58:48,399 --> 02:58:51,040
>> Um the state of Utah, of course, is huge

4634
02:58:51,040 --> 02:58:54,319
and they've um historically been AAA

4635
02:58:54,319 --> 02:58:54,640
rating.

4636
02:58:54,640 --> 02:58:57,279
>> Do they have like B's and Fs?

4637
02:58:57,279 --> 02:59:01,520
Um, it goes down to

4638
02:59:01,520 --> 02:59:03,680
um I should have the full ratings, but

4639
02:59:03,680 --> 02:59:06,399
it's like C's and D's, you know, um that

4640
02:59:06,399 --> 02:59:09,279
go down, but you're in junk bonds, you

4641
02:59:09,279 --> 02:59:13,359
know, you get below like B minus and you

4642
02:59:13,359 --> 02:59:15,359
start to move into

4643
02:59:15,359 --> 02:59:17,200
uh questionable

4644
02:59:17,200 --> 02:59:20,640
um investment grades. Uh, and then you

4645
02:59:20,640 --> 02:59:23,600
get down to like D and you're, you know,

4646
02:59:23,600 --> 02:59:26,000
you're you're gambling from an investor

4647
02:59:26,000 --> 02:59:28,080
perspective, it's it's considered junk

4648
02:59:28,080 --> 02:59:29,040
bonds.

4649
02:59:29,040 --> 02:59:30,720
>> Yeah. But if you repackage those and

4650
02:59:30,720 --> 02:59:32,160
sell them as a group, you can sell them

4651
02:59:32,160 --> 02:59:32,960
as Triple A.

4652
02:59:32,960 --> 02:59:34,000
>> Yeah.

4653
02:59:34,000 --> 02:59:35,200
>> Remember when that was done?

4654
02:59:35,200 --> 02:59:35,520
>> Yeah,

4655
02:59:35,520 --> 02:59:36,399
>> that ended up well.

4656
02:59:36,399 --> 02:59:39,520
>> That didn't work out well in in 0809.

4657
02:59:39,520 --> 02:59:43,200
>> I got a movie to show you.

4658
02:59:43,200 --> 02:59:45,680
>> Any other questions?

4659
02:59:45,680 --> 02:59:49,190
>> Thank you.

4660
02:59:49,200 --> 02:59:50,640
diversification.

4661
02:59:50,640 --> 02:59:53,600
>> Yeah,

4662
02:59:53,600 --> 02:59:53,680
you

4663
02:59:53,680 --> 02:59:55,680
>> mind pulling up the other PDF?

4664
02:59:55,680 --> 02:59:57,520
>> I'm definitely not getting after all

4665
02:59:57,520 --> 03:00:00,240
these comments today.

4666
03:00:00,240 --> 03:00:02,399
>> Oh, good.

4667
03:00:02,399 --> 03:00:05,920
>> I had some slides.

4668
03:00:05,920 --> 03:00:10,550
>> I missed it at one point.

4669
03:00:10,560 --> 03:00:13,279
» Okay, I can tell you give you a revenue

4670
03:00:13,279 --> 03:00:16,319
update without some slides. Um,

4671
03:00:16,319 --> 03:00:19,040
this is just a preview of how the FY27

4672
03:00:19,040 --> 03:00:21,200
budgeted revenues are looking for the

4673
03:00:21,200 --> 03:00:23,600
upcoming budget. So, this is giving you

4674
03:00:23,600 --> 03:00:25,359
a little sneak peek. And I will say it's

4675
03:00:25,359 --> 03:00:28,319
preliminary. We are not sure exactly

4676
03:00:28,319 --> 03:00:29,439
where everything's going to land, but

4677
03:00:29,439 --> 03:00:33,520
we're getting a lot closer. Um,

4678
03:00:33,520 --> 03:00:37,040
basically the takeaway is that, sorry, I

4679
03:00:37,040 --> 03:00:38,640
wish I had some numbers for you up here,

4680
03:00:38,640 --> 03:00:41,120
but the takeaway is that the FY27

4681
03:00:41,120 --> 03:00:43,760
budgeted revenues are looking strong.

4682
03:00:43,760 --> 03:00:45,600
Um, it's not like the past two years.

4683
03:00:45,600 --> 03:00:47,120
>> We actually have a thought. Yeah. Do you

4684
03:00:47,120 --> 03:00:48,800
want to reschedule this and bring back

4685
03:00:48,800 --> 03:00:49,920
what the numbers next? We didn't have

4686
03:00:49,920 --> 03:00:51,120
this in our packet either.

4687
03:00:51,120 --> 03:00:54,399
>> Yeah. I'm sorry. I I know I had spent it

4688
03:00:54,399 --> 03:00:56,399
might have been. We're running behind

4689
03:00:56,399 --> 03:00:56,800
anyway.

4690
03:00:56,800 --> 03:00:58,160
>> Okay, great.

4691
03:00:58,160 --> 03:00:59,920
>> So, Justin, could we have rescheduled

4692
03:00:59,920 --> 03:01:00,319
Kelsey?

4693
03:01:00,319 --> 03:01:02,319
>> I'd almost at this point recommend just

4694
03:01:02,319 --> 03:01:04,160
doing after the tenative budget just

4695
03:01:04,160 --> 03:01:06,720
because we'll have better numbers and

4696
03:01:06,720 --> 03:01:09,359
>> we'll be that much closer to it if if

4697
03:01:09,359 --> 03:01:10,560
that's okay.

4698
03:01:10,560 --> 03:01:16,950
>> What is that? May

4699
03:01:16,960 --> 03:01:18,000
weeks or

4700
03:01:18,000 --> 03:01:19,439
>> Yeah, just in two weeks.

4701
03:01:19,439 --> 03:01:21,840
>> Okay, we can. Thank you. Thanks, Kelsey.

4702
03:01:21,840 --> 03:01:23,760
>> Thanks.

4703
03:01:23,760 --> 03:01:25,439
>> All right. Um, next a presentation

4704
03:01:25,439 --> 03:01:27,279
regarding property tax presented by

4705
03:01:27,279 --> 03:01:32,710
Justin Harrison.

4706
03:01:32,720 --> 03:01:35,680
» All right. Thanks, council. Sorry to go

4707
03:01:35,680 --> 03:01:37,200
from

4708
03:01:37,200 --> 03:01:39,680
um

4709
03:01:39,680 --> 03:01:41,040
what could have been a cheery

4710
03:01:41,040 --> 03:01:42,720
presentation from Kelsey to talking

4711
03:01:42,720 --> 03:01:45,520
about taxes, but

4712
03:01:45,520 --> 03:01:49,349
it's what you got.

4713
03:01:49,359 --> 03:01:52,160
» Okay, you're good.

4714
03:01:52,160 --> 03:01:53,680
>> Um

4715
03:01:53,680 --> 03:01:55,680
there's quite a few slides here. I'm not

4716
03:01:55,680 --> 03:01:57,279
going to go through all of them in

4717
03:01:57,279 --> 03:01:58,880
depth. you all read read through them,

4718
03:01:58,880 --> 03:01:59,680
but if there are

4719
03:01:59,680 --> 03:02:01,200
>> like just general overview, this is

4720
03:02:01,200 --> 03:02:02,240
mostly

4721
03:02:02,240 --> 03:02:05,920
>> for since he's new and just anyone if

4722
03:02:05,920 --> 03:02:07,600
they have any questions, pipe up. But

4723
03:02:07,600 --> 03:02:09,520
>> if there are any questions, feel free

4724
03:02:09,520 --> 03:02:13,439
jump in whenever. Um if you really have

4725
03:02:13,439 --> 03:02:14,640
a sleepless night, want to read about

4726
03:02:14,640 --> 03:02:16,399
the history of property tax, I encourage

4727
03:02:16,399 --> 03:02:18,640
you to look at this historical thought

4728
03:02:18,640 --> 03:02:20,880
was implemented 130 years ago when Utah

4729
03:02:20,880 --> 03:02:23,520
became a state. Um I'm waiting for the

4730
03:02:23,520 --> 03:02:26,560
Netflix documentary, but hasn't happened

4731
03:02:26,560 --> 03:02:29,760
yet. Um, property tax reg is regulated

4732
03:02:29,760 --> 03:02:32,720
by the state um, as far as what

4733
03:02:32,720 --> 03:02:35,359
municipalities can do under Utah State

4734
03:02:35,359 --> 03:02:39,600
Code Chapter 59. Um, but really what you

4735
03:02:39,600 --> 03:02:43,279
need to know for our purposes is how are

4736
03:02:43,279 --> 03:02:45,359
certified tax rates created? Uh, the

4737
03:02:45,359 --> 03:02:48,160
simple equation is prior year revenue

4738
03:02:48,160 --> 03:02:50,640
divided by taxable property values gives

4739
03:02:50,640 --> 03:02:53,840
you your property tax rate. Um and we'll

4740
03:02:53,840 --> 03:02:55,840
go through a little little scenario on

4741
03:02:55,840 --> 03:02:59,040
this. Um but in order to get that

4742
03:02:59,040 --> 03:03:03,760
equation, um what many citizens or

4743
03:03:03,760 --> 03:03:05,600
property owners or property taxpayers

4744
03:03:05,600 --> 03:03:08,880
don't know is is how that equation is

4745
03:03:08,880 --> 03:03:10,319
created and it starts with the

4746
03:03:10,319 --> 03:03:13,120
valuation. So valuation is assessed

4747
03:03:13,120 --> 03:03:20,309
locally by county assessors. Um

4748
03:03:20,319 --> 03:03:22,240
and that valuation is determined at

4749
03:03:22,240 --> 03:03:24,640
least in Utah County in this way. So by

4750
03:03:24,640 --> 03:03:26,880
sales in the market, income that could

4751
03:03:26,880 --> 03:03:29,840
be generated by the property or cost of

4752
03:03:29,840 --> 03:03:35,590
replacement.

4753
03:03:35,600 --> 03:03:37,680
Uh other determining factors that they

4754
03:03:37,680 --> 03:03:40,800
take in when determining the valuation

4755
03:03:40,800 --> 03:03:42,720
of residential or commercial property

4756
03:03:42,720 --> 03:03:44,960
are things such as land use, uh the

4757
03:03:44,960 --> 03:03:47,760
location of the property, the size, and

4758
03:03:47,760 --> 03:03:55,670
also the property condition.

4759
03:03:55,680 --> 03:03:57,279
This is from Utah County, so I feel

4760
03:03:57,279 --> 03:04:00,640
comfortable saying this. Um but there

4761
03:04:00,640 --> 03:04:03,040
are bound to be heirs

4762
03:04:03,040 --> 03:04:03,680
Um

4763
03:04:03,680 --> 03:04:06,800
>> in fairness in fairness to

4764
03:04:06,800 --> 03:04:10,720
the assessor less less than 1% of

4765
03:04:10,720 --> 03:04:14,560
properties are challenged. Assessments are

4766
03:04:14,560 --> 03:04:16,080
challenged, right? So it's

4767
03:04:16,080 --> 03:04:21,910
>> and I don't just mean the errors like last year

4768
03:04:21,920 --> 03:04:23,520
» I'm just saying from an assessor

4769
03:04:23,520 --> 03:04:25,680
standpoint that's this is a high

4770
03:04:25,680 --> 03:04:28,240
percentage and I I've tal I have I I do

4771
03:04:28,240 --> 03:04:29,760
think that's shockingly high that if you

4772
03:04:29,760 --> 03:04:31,439
do appeal you're almost certainly you

4773
03:04:31,439 --> 03:04:33,840
know especially if you have an appraisal

4774
03:04:33,840 --> 03:04:35,920
>> last year was was a little different but

4775
03:04:35,920 --> 03:04:38,000
to kind of put it in perspective so

4776
03:04:38,000 --> 03:04:41,040
there's over 200,000 parcels in Utah

4777
03:04:41,040 --> 03:04:42,720
County um

4778
03:04:42,720 --> 03:04:44,000
>> 800 or something

4779
03:04:44,000 --> 03:04:46,880
>> they have said part uh appeal success

4780
03:04:46,880 --> 03:04:49,359
rate is about 70% that's of those who

4781
03:04:49,359 --> 03:04:50,479
appeal.

4782
03:04:50,479 --> 03:04:53,439
>> Now kind of their rule of thumb that

4783
03:04:53,439 --> 03:04:56,000
Utah County has given is to for you as a

4784
03:04:56,000 --> 03:04:57,520
property owner to ask yourself could I

4785
03:04:57,520 --> 03:04:59,840
sell this property for what it has been

4786
03:04:59,840 --> 03:05:04,469
assessed at. Now

4787
03:05:04,479 --> 03:05:06,479
I would argue well I would encourage you

4788
03:05:06,479 --> 03:05:07,760
all to look at your property tax

4789
03:05:07,760 --> 03:05:09,279
assessments.

4790
03:05:09,279 --> 03:05:10,880
I personally think they're all very low,

4791
03:05:10,880 --> 03:05:12,160
but

4792
03:05:12,160 --> 03:05:13,840
>> I think they're generous and I will take

4793
03:05:13,840 --> 03:05:16,000
that. Thank you, Utah County. Um, but

4794
03:05:16,000 --> 03:05:17,600
that's just kind of general rule of

4795
03:05:17,600 --> 03:05:19,200
thumb as you're talking to constituents.

4796
03:05:19,200 --> 03:05:21,040
If they're wondering, you know, about

4797
03:05:21,040 --> 03:05:22,399
their property taxes, about their

4798
03:05:22,399 --> 03:05:24,399
valuation, that's a simple question to

4799
03:05:24,399 --> 03:05:26,800
ask yourself, could I sell this property

4800
03:05:26,800 --> 03:05:29,760
for the assessed value?

4801
03:05:29,760 --> 03:05:32,080
Um,

4802
03:05:32,080 --> 03:05:34,319
now kind of going back to the equation,

4803
03:05:34,319 --> 03:05:36,319
back to the the property tax rate

4804
03:05:36,319 --> 03:05:40,560
making. Um so this chart sorry this is a

4805
03:05:40,560 --> 03:05:42,080
little difficult to see. You see our

4806
03:05:42,080 --> 03:05:44,640
general operations rate in the city and

4807
03:05:44,640 --> 03:05:46,560
how it has gone down. You see the the

4808
03:05:46,560 --> 03:05:48,800
bottom chart and average average average

4809
03:05:48,800 --> 03:05:51,040
residential property value and this is

4810
03:05:51,040 --> 03:05:53,840
specific to Provo City has gone up and

4811
03:05:53,840 --> 03:05:55,760
you see how those trend lines are

4812
03:05:55,760 --> 03:05:58,240
inverse. So as valuations go up, rates

4813
03:05:58,240 --> 03:06:00,880
go down. And just the opposite, as

4814
03:06:00,880 --> 03:06:02,880
valuations go down, rates would go up

4815
03:06:02,880 --> 03:06:06,800
because um the whole

4816
03:06:06,800 --> 03:06:09,040
policy argument

4817
03:06:09,040 --> 03:06:11,840
um that has been created in Utah for

4818
03:06:11,840 --> 03:06:14,160
property taxes is that revenue stays the

4819
03:06:14,160 --> 03:06:17,279
same. It stays flat minus new growth.

4820
03:06:17,279 --> 03:06:19,279
We'll pretend we didn't talk about that.

4821
03:06:19,279 --> 03:06:21,840
Um but revenue stays the same and it

4822
03:06:21,840 --> 03:06:25,279
forces um taxing entities,

4823
03:06:25,279 --> 03:06:27,279
municipalities, school districts, water

4824
03:06:27,279 --> 03:06:30,560
districts to go before the taxpayers and

4825
03:06:30,560 --> 03:06:34,640
give a reason for the rate increase.

4826
03:06:34,640 --> 03:06:37,439
Um this is my favorite chart in the

4827
03:06:37,439 --> 03:06:38,960
world. It's going to be framed on the

4828
03:06:38,960 --> 03:06:40,960
wall one day.

4829
03:06:40,960 --> 03:06:43,200
Um,

4830
03:06:43,200 --> 03:06:45,760
this is the breakdown of a dollar in

4831
03:06:45,760 --> 03:06:48,399
property taxes on a Provo citizen

4832
03:06:48,399 --> 03:06:51,680
citizens property tax bill. 60% of every

4833
03:06:51,680 --> 03:06:53,520
dollar that they pay in property taxes

4834
03:06:53,520 --> 03:06:56,080
goes to the school district. So, love

4835
03:06:56,080 --> 03:06:58,640
the school district, but take their

4836
03:06:58,640 --> 03:07:01,439
anger elsewhere, I promise. Um, that's

4837
03:07:01,439 --> 03:07:03,680
where a majority of those funds go to.

4838
03:07:03,680 --> 03:07:06,800
Uh, just under 15% of every dollar or 15

4839
03:07:06,800 --> 03:07:09,600
cents of every dollar goes to the city.

4840
03:07:09,600 --> 03:07:12,640
uh 13% to the state, about nine to the

4841
03:07:12,640 --> 03:07:16,080
county, and then 3 and a.5% to central

4842
03:07:16,080 --> 03:07:20,150
Utah water.

4843
03:07:20,160 --> 03:07:22,160
Uh broken down a little further, and

4844
03:07:22,160 --> 03:07:24,479
we'll get into this. So, Provo City's

4845
03:07:24,479 --> 03:07:28,399
rate is broken up into three specific

4846
03:07:28,399 --> 03:07:31,840
categories. So, we've got a specific

4847
03:07:31,840 --> 03:07:35,120
line item for library, a specific line

4848
03:07:35,120 --> 03:07:37,040
item for general operations or what

4849
03:07:37,040 --> 03:07:40,240
funds the general fund, and then bonds.

4850
03:07:40,240 --> 03:07:43,120
It's listed on the state tax commission

4851
03:07:43,120 --> 03:07:46,240
website as interest in syncing. Um, and

4852
03:07:46,240 --> 03:07:47,920
that's not a rate that the city can

4853
03:07:47,920 --> 03:07:50,880
adjust. That's adjusted based off of

4854
03:07:50,880 --> 03:07:52,640
that principal amount that Dan talked

4855
03:07:52,640 --> 03:07:54,960
about on our general obligation bonds.

4856
03:07:54,960 --> 03:07:56,800
So, that is automatically updated each

4857
03:07:56,800 --> 03:08:00,479
year. Um, and any way to have that

4858
03:08:00,479 --> 03:08:02,720
increased would be to go before the the

4859
03:08:02,720 --> 03:08:06,479
voters for general obligation bonds. Um,

4860
03:08:06,479 --> 03:08:07,760
and so it's

4861
03:08:07,760 --> 03:08:09,120
>> they choose that piece.

4862
03:08:09,120 --> 03:08:09,760
>> What's that?

4863
03:08:09,760 --> 03:08:10,640
>> They choose that piece.

4864
03:08:10,640 --> 03:08:12,800
>> Yes, they choose that piece. They also

4865
03:08:12,800 --> 03:08:14,319
choose all use.

4866
03:08:14,319 --> 03:08:17,279
>> They have choice on everything.

4867
03:08:17,279 --> 03:08:19,520
>> Yeah. Um

4868
03:08:19,520 --> 03:08:21,439
this is not as scary as it looks, but

4869
03:08:21,439 --> 03:08:25,040
this is the um the state um Utah tax

4870
03:08:25,040 --> 03:08:27,520
commission certified tax rate system. Um

4871
03:08:27,520 --> 03:08:29,359
it's very small, so we'll skip through

4872
03:08:29,359 --> 03:08:34,160
this, but you'll see um so this was

4873
03:08:34,160 --> 03:08:35,760
maybe I'll I'll touch on this before. So

4874
03:08:35,760 --> 03:08:38,880
you've got fiscal year and tax year. Um

4875
03:08:38,880 --> 03:08:41,600
so we're going into fiscal year 2027.

4876
03:08:41,600 --> 03:08:44,319
That'll be tax year 2026. So you'll see

4877
03:08:44,319 --> 03:08:45,760
a couple of numbers on here that say

4878
03:08:45,760 --> 03:08:48,160
FY26 referring to the current fiscal

4879
03:08:48,160 --> 03:08:51,520
year and tax year 2025.

4880
03:08:51,520 --> 03:08:53,040
So

4881
03:08:53,040 --> 03:08:57,279
this shows how rates went down, but

4882
03:08:57,279 --> 03:08:59,920
property taxes actually revenue stayed

4883
03:08:59,920 --> 03:09:02,240
about the same minus growth. And this is

4884
03:09:02,240 --> 03:09:06,479
where if the city chooses to um to

4885
03:09:06,479 --> 03:09:08,160
increase property taxes or any taxing

4886
03:09:08,160 --> 03:09:09,840
entity, they would input these rates in

4887
03:09:09,840 --> 03:09:13,760
this system. Um,

4888
03:09:13,760 --> 03:09:17,429
jumping into

4889
03:09:17,439 --> 03:09:20,640
our specific breakdown in Provo City on

4890
03:09:20,640 --> 03:09:22,960
how our our rates are broken up. Not all

4891
03:09:22,960 --> 03:09:24,960
cities have a library and have a

4892
03:09:24,960 --> 03:09:27,600
specific library tax line item. There

4893
03:09:27,600 --> 03:09:31,840
are a few um, but this is this is the

4894
03:09:31,840 --> 03:09:34,479
FY26 revenue projections from the

4895
03:09:34,479 --> 03:09:36,640
current year budget for the library. So

4896
03:09:36,640 --> 03:09:39,760
you can see almost well over 91% of

4897
03:09:39,760 --> 03:09:41,680
their revenue comes from property tax.

4898
03:09:41,680 --> 03:09:45,439
They're very uh property tax reliant. Um

4899
03:09:45,439 --> 03:09:48,160
their other revenues come from charges

4900
03:09:48,160 --> 03:09:49,760
for service and then they've got a

4901
03:09:49,760 --> 03:09:51,760
couple miscellaneous and then their

4902
03:09:51,760 --> 03:09:53,200
investment income that we talked about

4903
03:09:53,200 --> 03:09:56,710
earlier today.

4904
03:09:56,720 --> 03:09:58,640
This is what their rate breakdown looks

4905
03:09:58,640 --> 03:10:01,279
like currently. So their property their

4906
03:10:01,279 --> 03:10:05,349
mill rate is 0.0000419.

4907
03:10:05,359 --> 03:10:08,800
There's a state capped rate of 0.001. So

4908
03:10:08,800 --> 03:10:11,680
they're at about 42% of their state

4909
03:10:11,680 --> 03:10:14,640
capped rate. So that's the green is what

4910
03:10:14,640 --> 03:10:16,399
they've used up. The orange is what they

4911
03:10:16,399 --> 03:10:18,800
have available. Um and so current

4912
03:10:18,800 --> 03:10:20,399
property tax revenue brings in about

4913
03:10:20,399 --> 03:10:24,720
$4.6 million. Um that maximum allowable

4914
03:10:24,720 --> 03:10:27,439
rate would bring in roughly $11 million

4915
03:10:27,439 --> 03:10:28,399
just to kind of give you some

4916
03:10:28,399 --> 03:10:30,479
perspective on what what that looks

4917
03:10:30,479 --> 03:10:32,319
like.

4918
03:10:32,319 --> 03:10:34,800
Um,

4919
03:10:34,800 --> 03:10:36,640
and this is what the rate has looked

4920
03:10:36,640 --> 03:10:41,680
like over the last 25ish years. So, as

4921
03:10:41,680 --> 03:10:43,920
um, Carla mentioned earlier, they're

4922
03:10:43,920 --> 03:10:46,080
celebrating 25 years of the building.

4923
03:10:46,080 --> 03:10:48,720
When the library moved to Academy

4924
03:10:48,720 --> 03:10:51,439
Square, did the renovation,

4925
03:10:51,439 --> 03:10:53,840
they brought the mill rate up to not

4926
03:10:53,840 --> 03:10:56,960
quite the maximum, but close in order to

4927
03:10:56,960 --> 03:10:58,560
do a lot of those renovations and to

4928
03:10:58,560 --> 03:11:00,160
bring the library there. And as

4929
03:11:00,160 --> 03:11:02,560
valuations have consistently gone up

4930
03:11:02,560 --> 03:11:04,960
over the last 25 years, the rates come

4931
03:11:04,960 --> 03:11:08,080
down other than a couple of times where

4932
03:11:08,080 --> 03:11:12,950
uh tax rates have been adjusted.

4933
03:11:12,960 --> 03:11:15,279
Shifting over to our general operations

4934
03:11:15,279 --> 03:11:20,000
rate. Um this is a comparison of our

4935
03:11:20,000 --> 03:11:28,240
general operations rate to other like cities in both Utah and Salt

4936
03:11:28,240 --> 03:11:30,479
Lake County. You see us

4937
03:11:30,479 --> 03:11:33,200
>> right down here.

4938
03:11:33,200 --> 03:11:35,040
>> There's Provo. As far as general

4939
03:11:35,040 --> 03:11:37,600
operations rate or the property taxes

4940
03:11:37,600 --> 03:11:40,240
that go to fund the general fund in

4941
03:11:40,240 --> 03:11:44,389
Provo City,

4942
03:11:44,399 --> 03:11:49,680
this is our general property tax or our general fund revenue breakdown from

4943
03:11:49,680 --> 03:11:51,600
the current fiscal year.

4944
03:11:51,600 --> 03:11:52,399
>> Hold on a second.

4945
03:11:52,399 --> 03:11:53,279
>> Yep.

4946
03:11:53,279 --> 03:11:54,560
>> Trying to get my head around Woodland

4947
03:11:54,560 --> 03:11:56,000
Hills. Can you go back?

4948
03:11:56,000 --> 03:11:58,800
>> You want to move? So, but does that

4949
03:11:58,800 --> 03:12:01,840
reflect that instead of like bonding for

4950
03:12:01,840 --> 03:12:03,359
something, they raise rates to do

4951
03:12:03,359 --> 03:12:04,479
something? It

4952
03:12:04,479 --> 03:12:05,600
>> it could um

4953
03:12:05,600 --> 03:12:07,439
>> because this could be I'm not sure that

4954
03:12:07,439 --> 03:12:07,760
this is

4955
03:12:07,760 --> 03:12:10,000
>> Well, they also have no commercial.

4956
03:12:10,000 --> 03:12:12,000
They're just big houses. They're just

4957
03:12:12,000 --> 03:12:12,399
mansions,

4958
03:12:12,399 --> 03:12:14,080
>> but they're not that.

4959
03:12:14,080 --> 03:12:16,800
>> Yeah. I guess what I'm saying is there

4960
03:12:16,800 --> 03:12:18,319
could be a lot of factors that go into

4961
03:12:18,319 --> 03:12:18,720
that.

4962
03:12:18,720 --> 03:12:19,359
>> There are.

4963
03:12:19,359 --> 03:12:21,520
>> Because we could like Heramman may be

4964
03:12:21,520 --> 03:12:24,080
amazing and they've got a bajillion

4965
03:12:24,080 --> 03:12:25,359
dollars in bonds.

4966
03:12:25,359 --> 03:12:27,120
>> Yes. Yes. Right.

4967
03:12:27,120 --> 03:12:27,359
>> Yep.

4968
03:12:27,359 --> 03:12:27,840
>> Okay.

4969
03:12:27,840 --> 03:12:29,279
>> All I know is we're doing terrible. We

4970
03:12:29,279 --> 03:12:30,479
got to get to the top of that list,

4971
03:12:30,479 --> 03:12:31,279
guys.

4972
03:12:31,279 --> 03:12:34,240
>> So, you helping yourself.

4973
03:12:34,240 --> 03:12:35,200
>> Lots of quotes.

4974
03:12:35,200 --> 03:12:40,870
>> You can make any graph, babe.

4975
03:12:40,880 --> 03:12:43,520
» I would say to that point, councelor

4976
03:12:43,520 --> 03:12:44,880
Christensen, take this with a grain of

4977
03:12:44,880 --> 03:12:46,000
salt. You can make it say what you want

4978
03:12:46,000 --> 03:12:47,920
to say. You can say,

4979
03:12:47,920 --> 03:12:49,840
>> um, you know, look, look how great we're

4980
03:12:49,840 --> 03:12:52,399
doing. We don't bring any revenue in.

4981
03:12:52,399 --> 03:12:53,840
>> Salt Lake City has a lot of commercial.

4982
03:12:53,840 --> 03:12:56,000
>> Yes. And it's it's very different based

4983
03:12:56,000 --> 03:12:58,080
off the municipality and what your you

4984
03:12:58,080 --> 03:12:59,600
know are you a bedroom community? Do you

4985
03:12:59,600 --> 03:13:00,960
have a lot of commercial? How much sales

4986
03:13:00,960 --> 03:13:02,800
tax do you bring in? Do you bring in no

4987
03:13:02,800 --> 03:13:04,640
sales tax? That's going to be very

4988
03:13:04,640 --> 03:13:06,640
dependent on what you do with your your

4989
03:13:06,640 --> 03:13:08,080
property tax.

4990
03:13:08,080 --> 03:13:09,840
>> Um

4991
03:13:09,840 --> 03:13:12,640
but if you look at the pie chart, um

4992
03:13:12,640 --> 03:13:15,680
you'll see this is current fiscal year

4993
03:13:15,680 --> 03:13:18,399
from from the budget. Uh what our

4994
03:13:18,399 --> 03:13:21,840
projected revenues were. Uh you'll see

4995
03:13:21,840 --> 03:13:24,479
the largest kind of light green square

4996
03:13:24,479 --> 03:13:27,279
sales tax at 30%. That's our largest

4997
03:13:27,279 --> 03:13:29,680
income stream in the general fund. The

4998
03:13:29,680 --> 03:13:34,960
light blue is property tax at 8%. Now um

4999
03:13:34,960 --> 03:13:37,680
it's not to say any of this is is good

5000
03:13:37,680 --> 03:13:40,880
or bad or indifferent. Uh but generally

5001
03:13:40,880 --> 03:13:46,800
sales taxes are more um

5002
03:13:46,800 --> 03:13:50,640
there is more variable there. They are

5003
03:13:50,640 --> 03:13:53,840
what do I want to call them?

5004
03:13:53,840 --> 03:13:54,560
>> They are.

5005
03:13:54,560 --> 03:13:56,080
>> Yes.

5006
03:13:56,080 --> 03:13:58,960
Yeah, they're they're more volatile. Um

5007
03:13:58,960 --> 03:14:02,160
where property tax is more stable.

5008
03:14:02,160 --> 03:14:04,640
>> So just something to to think about and

5009
03:14:04,640 --> 03:14:06,399
keep in mind. But it is it's a balance

5010
03:14:06,399 --> 03:14:07,840
of all these different revenues that

5011
03:14:07,840 --> 03:14:11,120
make up that pie of our roughly $90

5012
03:14:11,120 --> 03:14:13,279
million general fund.

5013
03:14:13,279 --> 03:14:14,560
>> Justin, can I ask a question on that?

5014
03:14:14,560 --> 03:14:19,120
>> Y on this chart. So uh for example like

5015
03:14:19,120 --> 03:14:22,239
um Provo Powers transfers to the general

5016
03:14:22,239 --> 03:14:23,840
fund. Does that categorize as franchise

5017
03:14:23,840 --> 03:14:24,960
fees or transfers in?

5018
03:14:24,960 --> 03:14:26,080
>> Nope. Transfers in.

5019
03:14:26,080 --> 03:14:26,640
>> Okay.

5020
03:14:26,640 --> 03:14:28,800
>> So yeah.

5021
03:14:28,800 --> 03:14:33,269
>> And that's one way to look at it.

5022
03:14:33,279 --> 03:14:37,920
» Yeah. Different people who use our our

5023
03:14:37,920 --> 03:14:39,680
you probably have some breakdown. The

5024
03:14:39,680 --> 03:14:41,200
other

5025
03:14:41,200 --> 03:14:44,399
>> at 10% that would be $30 million. That's

5026
03:14:44,399 --> 03:14:46,319
fairly

5027
03:14:46,319 --> 03:14:48,479
I don't have that offhand, but I can get

5028
03:14:48,479 --> 03:14:50,960
it. That's just from the the budget

5029
03:14:50,960 --> 03:14:54,239
book, so we can we can look into that.

5030
03:14:54,239 --> 03:14:56,080
>> A lot of that's fees and charges, isn't

5031
03:14:56,080 --> 03:14:57,359
it?

5032
03:14:57,359 --> 03:14:59,439
>> Oh, you've got fees already listed at

5033
03:14:59,439 --> 03:15:00,160
14%.

5034
03:15:00,160 --> 03:15:00,640
>> Yeah.

5035
03:15:00,640 --> 03:15:01,920
>> Okay.

5036
03:15:01,920 --> 03:15:03,439
>> So, we can get a breakdown of that

5037
03:15:03,439 --> 03:15:03,760
though.

5038
03:15:03,760 --> 03:15:05,359
>> I would love to see a breakdown of each

5039
03:15:05,359 --> 03:15:08,000
of those subcategories at some point. Be

5040
03:15:08,000 --> 03:15:09,760
really useful.

5041
03:15:09,760 --> 03:15:11,600
>> As far as the the

5042
03:15:11,600 --> 03:15:13,600
>> dollar amount or No, for example, like

5043
03:15:13,600 --> 03:15:14,640
transfers in. Yep.

5044
03:15:14,640 --> 03:15:16,960
>> Obviously, we know proto power is a huge

5045
03:15:16,960 --> 03:15:17,600
component of that.

5046
03:15:17,600 --> 03:15:20,080
>> That's largely banners.

5047
03:15:20,080 --> 03:15:22,160
>> That's our big revenue.

5048
03:15:22,160 --> 03:15:24,800
We need to sell more banners.

5049
03:15:24,800 --> 03:15:27,040
>> Yeah. Subsidiz

5050
03:15:27,040 --> 03:15:28,720
fees would be another interesting one to

5051
03:15:28,720 --> 03:15:30,080
see how that's broken down. And then and

5052
03:15:30,080 --> 03:15:32,239
then franchise fees.

5053
03:15:32,239 --> 03:15:34,000
>> So, just do a pie chart of each one of

5054
03:15:34,000 --> 03:15:34,399
these.

5055
03:15:34,399 --> 03:15:37,439
>> Pretty much

5056
03:15:37,439 --> 03:15:38,560
>> you just love pie charts.

5057
03:15:38,560 --> 03:15:40,160
>> I love pie charts. There you go.

5058
03:15:40,160 --> 03:15:41,120
>> I love pie.

5059
03:15:41,120 --> 03:15:43,439
>> I think you should do a graph, you know.

5060
03:15:43,439 --> 03:15:46,160
Oh boy.

5061
03:15:46,160 --> 03:15:48,880
>> All right. Um, and then similar to

5062
03:15:48,880 --> 03:15:52,319
library, so this is our breakdown of

5063
03:15:52,319 --> 03:15:54,880
>> that general operations rate. So the

5064
03:15:54,880 --> 03:15:57,200
state caps this rate as well.

5065
03:15:57,200 --> 03:16:00,000
>> Uh, but it's capped at 0.007

5066
03:16:00,000 --> 03:16:03,120
and we're at 0.00534.

5067
03:16:03,120 --> 03:16:12,479
So less than 8% 7 and a half% of what is be feasible. So, anytime anyone

5068
03:16:12,479 --> 03:16:14,239
complains about property tax, just say

5069
03:16:14,239 --> 03:16:18,239
we could charge 700 or $77 million.

5070
03:16:18,239 --> 03:16:19,680
>> So, there's a separate mill rate for

5071
03:16:19,680 --> 03:16:20,800
each of the categories.

5072
03:16:20,800 --> 03:16:23,120
>> There is. Yep. Separate mill rate and

5073
03:16:23,120 --> 03:16:24,800
then that's combined. That's what gets

5074
03:16:24,800 --> 03:16:29,040
that big 14% piece on that dollar

5075
03:16:29,040 --> 03:16:31,359
breakdown. Um, but they are broken down

5076
03:16:31,359 --> 03:16:33,439
individually.

5077
03:16:33,439 --> 03:16:34,960
Um

5078
03:16:34,960 --> 03:16:37,439
>> I and just I just can't remember each

5079
03:16:37,439 --> 03:16:40,000
chart but this is the lowest

5080
03:16:40,000 --> 03:16:41,040
>> of all them

5081
03:16:41,040 --> 03:16:46,160
>> uh percent as a percent of the possible

5082
03:16:46,160 --> 03:16:49,429
>> of each.

5083
03:16:49,439 --> 03:16:50,080
Yeah. Is that right?

5084
03:16:50,080 --> 03:16:53,120
>> Of our mill rates which is the lowest.

5085
03:16:53,120 --> 03:17:01,110
>> It is

5086
03:17:01,120 --> 03:17:14,389
I want to say it's the library.

5087
03:17:14,399 --> 03:17:18,560
Yeah. Library is 0419.

5088
03:17:18,560 --> 03:17:21,830
Um,

5089
03:17:21,840 --> 03:17:27,680
general operations is 534 and then

5090
03:17:27,680 --> 03:17:31,200
our our bonds is the highest.

5091
03:17:31,200 --> 03:17:31,840
So,

5092
03:17:31,840 --> 03:17:33,279
>> and the double question, but the mill

5093
03:17:33,279 --> 03:17:35,279
rate are set by state law, right?

5094
03:17:35,279 --> 03:17:35,840
>> Um,

5095
03:17:35,840 --> 03:17:37,200
>> the high max

5096
03:17:37,200 --> 03:17:39,520
>> the cath is set by by the state. Yep.

5097
03:17:39,520 --> 03:17:42,720
>> And is that is that like is it set as a

5098
03:17:42,720 --> 03:17:46,160
percent or is it set as a

5099
03:17:46,160 --> 03:17:48,319
>> No, it's not. It's set as as the mill

5100
03:17:48,319 --> 03:17:50,560
rate. I don't know. I don't know what

5101
03:17:50,560 --> 03:17:52,800
got them there, but we do.

5102
03:17:52,800 --> 03:17:55,760
>> Does it like does it say periodically

5103
03:17:55,760 --> 03:17:57,680
we'll reset we'll change that or is it

5104
03:17:57,680 --> 03:17:58,720
just like forever

5105
03:17:58,720 --> 03:18:00,720
>> that that I'm not sure. I will look into

5106
03:18:00,720 --> 03:18:01,680
some history on that.

5107
03:18:01,680 --> 03:18:05,750
>> It changes.

5108
03:18:05,760 --> 03:18:09,200
» That's why the the um graph we go down

5109
03:18:09,200 --> 03:18:11,120
so much.

5110
03:18:11,120 --> 03:18:12,880
>> I thought it was a mistake go up.

5111
03:18:12,880 --> 03:18:14,080
>> I was going to say just to be popular

5112
03:18:14,080 --> 03:18:16,239
like Travis, it probably just keep moves

5113
03:18:16,239 --> 03:18:17,920
up. So Salt Lake City doesn't look like

5114
03:18:17,920 --> 03:18:23,990
it's getting too close to it.

5115
03:18:24,000 --> 03:18:27,040
» Race to the top, baby.

5116
03:18:27,040 --> 03:18:29,200
>> You got some in trouble.

5117
03:18:29,200 --> 03:18:31,520
>> Uh this is just kind of historical look

5118
03:18:31,520 --> 03:18:34,080
the last 25 years on the general

5119
03:18:34,080 --> 03:18:36,239
operations motor rate. So again, as

5120
03:18:36,239 --> 03:18:39,520
values have gone up, rate um

5121
03:18:39,520 --> 03:18:41,279
automatically goes down. There have been

5122
03:18:41,279 --> 03:18:43,439
a few times where rates have been

5123
03:18:43,439 --> 03:18:46,560
increased, but generally it's built in

5124
03:18:46,560 --> 03:18:49,120
that way so that revenue stays flat

5125
03:18:49,120 --> 03:18:51,439
minus new growth.

5126
03:18:51,439 --> 03:18:53,200
Um,

5127
03:18:53,200 --> 03:18:55,040
and then this last slide, this is just a

5128
03:18:55,040 --> 03:18:57,520
couple of of truth and taxation changes

5129
03:18:57,520 --> 03:18:58,880
that came out of this legislative

5130
03:18:58,880 --> 03:19:04,800
session out of HB 236. Um, so

5131
03:19:04,800 --> 03:19:07,600
there were a number of of changes that

5132
03:19:07,600 --> 03:19:08,960
were instituted last legislative

5133
03:19:08,960 --> 03:19:10,960
session. These are additional, we'll

5134
03:19:10,960 --> 03:19:13,040
call them new new changes um because

5135
03:19:13,040 --> 03:19:15,120
many people didn't get the memo on the

5136
03:19:15,120 --> 03:19:17,680
new changes um and had some had some

5137
03:19:17,680 --> 03:19:19,279
trouble. So those are all still in

5138
03:19:19,279 --> 03:19:22,640
effect. Um but the goal of this was to

5139
03:19:22,640 --> 03:19:26,000
increase again some transparency for um

5140
03:19:26,000 --> 03:19:28,800
for taxpayers. So again, when the when

5141
03:19:28,800 --> 03:19:30,800
the tenative budget is presented, if

5142
03:19:30,800 --> 03:19:34,239
there is a request or in the tenative

5143
03:19:34,239 --> 03:19:36,080
budget, there's a there's an increase

5144
03:19:36,080 --> 03:19:40,560
proposed to property tax, um

5145
03:19:40,560 --> 03:19:42,880
that has to be stated by the budget

5146
03:19:42,880 --> 03:19:46,160
officer, the mayor in in that meeting.

5147
03:19:46,160 --> 03:19:51,920
Um an impact schedule has to be

5148
03:19:51,920 --> 03:19:54,720
presented. Now, what impact schedule is

5149
03:19:54,720 --> 03:19:56,800
defined as is not super clear. And so

5150
03:19:56,800 --> 03:19:59,600
that's being kind of worked on um with

5151
03:19:59,600 --> 03:20:02,640
municipalities, but essentially what the

5152
03:20:02,640 --> 03:20:04,800
intent of the state was to show

5153
03:20:04,800 --> 03:20:07,439
taxpayers what that increase is being

5154
03:20:07,439 --> 03:20:09,359
used for instead of just we're

5155
03:20:09,359 --> 03:20:13,120
increasing taxes, however little or or

5156
03:20:13,120 --> 03:20:15,760
much as it may be, the intent is for

5157
03:20:15,760 --> 03:20:17,840
that to be public on what that

5158
03:20:17,840 --> 03:20:19,520
additional

5159
03:20:19,520 --> 03:20:22,239
um money is going to be used for. Um

5160
03:20:22,239 --> 03:20:23,920
there also has to be a separate agenda

5161
03:20:23,920 --> 03:20:26,800
item included. Uh so it can't just be

5162
03:20:26,800 --> 03:20:28,239
you know presentation and adoption of

5163
03:20:28,239 --> 03:20:29,600
the tenative budget but there has to be

5164
03:20:29,600 --> 03:20:34,550
a separate agenda item. Um

5165
03:20:34,560 --> 03:20:35,920
also has to be an announcement of the

5166
03:20:35,920 --> 03:20:37,359
approximate dollar amount of the

5167
03:20:37,359 --> 03:20:40,319
increase the percentage of the increase.

5168
03:20:40,319 --> 03:20:41,680
It gets into quite a few of these

5169
03:20:41,680 --> 03:20:46,560
specifics. Um and hearing information um

5170
03:20:46,560 --> 03:20:48,560
that that happens between May 1st and

5171
03:20:48,560 --> 03:20:51,359
June 13th. Um and then adoption of the

5172
03:20:51,359 --> 03:20:54,800
interim budget um is done. This is where

5173
03:20:54,800 --> 03:20:57,040
it gets a little weird. Um, with a

5174
03:20:57,040 --> 03:20:59,040
restricted

5175
03:20:59,040 --> 03:21:02,160
account for those potential dollars that

5176
03:21:02,160 --> 03:21:05,200
could be passed um if truth and taxation

5177
03:21:05,200 --> 03:21:11,910
were approved. So um and likewise um

5178
03:21:11,920 --> 03:21:15,359
this was contemplated um

5179
03:21:15,359 --> 03:21:17,439
for those presenting the budget. So

5180
03:21:17,439 --> 03:21:19,120
whether that's that's our form of

5181
03:21:19,120 --> 03:21:21,279
government in a council mayor form where

5182
03:21:21,279 --> 03:21:22,720
you got a budget officer or mayor

5183
03:21:22,720 --> 03:21:24,640
presenting the same things would need to

5184
03:21:24,640 --> 03:21:27,200
be done should the legislative body or

5185
03:21:27,200 --> 03:21:28,960
the council choose to increase those

5186
03:21:28,960 --> 03:21:31,279
rates. These would then need to be

5187
03:21:31,279 --> 03:21:34,160
followed if there were no proposed

5188
03:21:34,160 --> 03:21:35,920
increase and the council chose to do so.

5189
03:21:35,920 --> 03:21:38,479
just some

5190
03:21:38,479 --> 03:21:40,800
new requirements to be aware of. Um

5191
03:21:40,800 --> 03:21:43,200
>> we'll expect you to stay on top of that.

5192
03:21:43,200 --> 03:21:46,800
>> We got it. Um, councelor,

5193
03:21:46,800 --> 03:21:48,960
>> a few years ago, we did very modest

5194
03:21:48,960 --> 03:21:51,439
increases, but we weren't sure the exact

5195
03:21:51,439 --> 03:21:53,120
amount that we were increasing. So, we

5196
03:21:53,120 --> 03:21:55,840
noticed the maximum that we would and

5197
03:21:55,840 --> 03:21:58,880
then as we went through the process, we

5198
03:21:58,880 --> 03:22:00,960
settled on kind of a lower number or we

5199
03:22:00,960 --> 03:22:03,040
could settle on a lower number. Do we

5200
03:22:03,040 --> 03:22:05,040
still have that flexibility with this

5201
03:22:05,040 --> 03:22:06,000
new law?

5202
03:22:06,000 --> 03:22:08,560
>> Yes. Yeah. Still able to to change that

5203
03:22:08,560 --> 03:22:10,239
amount um

5204
03:22:10,239 --> 03:22:11,680
>> downward, not upward.

5205
03:22:11,680 --> 03:22:12,640
>> Not upward. Yeah.

5206
03:22:12,640 --> 03:22:16,160
>> Okay. And so if I don't know that we

5207
03:22:16,160 --> 03:22:17,680
want to do that this year, but if we

5208
03:22:17,680 --> 03:22:20,479
were doing it another year, then we

5209
03:22:20,479 --> 03:22:24,560
would have a counselor or you present

5210
03:22:24,560 --> 03:22:25,439
the thing

5211
03:22:25,439 --> 03:22:27,600
>> dependent whoever it came from. If it

5212
03:22:27,600 --> 03:22:30,640
came from um the administration

5213
03:22:30,640 --> 03:22:32,399
in their tenative budget, it would need

5214
03:22:32,399 --> 03:22:34,319
to be presented. If it was presented to

5215
03:22:34,319 --> 03:22:36,239
the council and you said

5216
03:22:36,239 --> 03:22:38,160
>> there's not a rate increase, but we want

5217
03:22:38,160 --> 03:22:39,760
to do one or there's not enough of one,

5218
03:22:39,760 --> 03:22:41,200
it would need to come from from that

5219
03:22:41,200 --> 03:22:43,439
body as well. Do the timelines apply too

5220
03:22:43,439 --> 03:22:46,000
because we may not know if we wanted to

5221
03:22:46,000 --> 03:22:48,399
do that kind of supplemental thing when

5222
03:22:48,399 --> 03:22:50,800
we're presented that tentative budget in

5223
03:22:50,800 --> 03:22:51,840
May.

5224
03:22:51,840 --> 03:22:55,840
>> Yes. Um so you would have until

5225
03:22:55,840 --> 03:23:01,439
June 13.

5226
03:23:01,439 --> 03:23:03,279
Not much time but

5227
03:23:03,279 --> 03:23:04,319
>> Okay.

5228
03:23:04,319 --> 03:23:07,120
>> So we don't have to do the property

5229
03:23:07,120 --> 03:23:09,279
impact schedule at the first meeting in

5230
03:23:09,279 --> 03:23:10,080
May. No.

5231
03:23:10,080 --> 03:23:11,840
>> Okay.

5232
03:23:11,840 --> 03:23:13,680
All right. Again, I don't know that we

5233
03:23:13,680 --> 03:23:15,359
want to do this this year, but I want to

5234
03:23:15,359 --> 03:23:17,120
understand what would happen in a future

5235
03:23:17,120 --> 03:23:18,960
year if we needed to do it.

5236
03:23:18,960 --> 03:23:20,479
>> All right. Well, thanks, Justin. Any

5237
03:23:20,479 --> 03:23:23,279
other questions for Justin?

5238
03:23:23,279 --> 03:23:23,920
>> All right. Thank you.

5239
03:23:23,920 --> 03:23:25,359
>> Yep. Thanks, Justin.

5240
03:23:25,359 --> 03:23:29,200
>> Okay. Um, a resolution appropriating

5241
03:23:29,200 --> 03:23:30,960
75,000 general fund for an economic

5242
03:23:30,960 --> 03:23:32,399
development study for the fiscal year

5243
03:23:32,399 --> 03:23:37,269
ending June 30, 2026.

5244
03:23:37,279 --> 03:23:39,520
and they'll be presented by Cody Hill,

5245
03:23:39,520 --> 03:23:41,200
the division director of economic

5246
03:23:41,200 --> 03:23:45,750
development.

5247
03:23:45,760 --> 03:23:47,920
» Is the home consortium ready? Who's

5248
03:23:47,920 --> 03:23:53,190
presenting?

5249
03:23:53,200 --> 03:23:58,710
» You're up. You're up.

5250
03:23:58,720 --> 03:24:01,040
» No notes, huh? Wow. Just going to wing

5251
03:24:01,040 --> 03:24:02,319
it.

5252
03:24:02,319 --> 03:24:04,640
We've discussed it at length, so I think

5253
03:24:04,640 --> 03:24:05,920
we're all pretty well informed about

5254
03:24:05,920 --> 03:24:08,239
this item. Cody Hill, uh, Pro City

5255
03:24:08,239 --> 03:24:09,920
Economic Development Division Director.

5256
03:24:09,920 --> 03:24:11,680
So, this appropriation request is for

5257
03:24:11,680 --> 03:24:14,560
75,000 to fund a citywide economic

5258
03:24:14,560 --> 03:24:18,080
development strategy and that has been

5259
03:24:18,080 --> 03:24:20,560
from the beginning of the year a high

5260
03:24:20,560 --> 03:24:22,560
priority that has been clearly

5261
03:24:22,560 --> 03:24:25,040
identified by city council and supported

5262
03:24:25,040 --> 03:24:28,239
by administration. We have met with um

5263
03:24:28,239 --> 03:24:29,439
several council members and

5264
03:24:29,439 --> 03:24:31,920
administration to craft the request for

5265
03:24:31,920 --> 03:24:34,239
proposals that is out right now. It

5266
03:24:34,239 --> 03:24:37,760
closes in 4 days on the 18th. Um as of

5267
03:24:37,760 --> 03:24:39,680
now we have one complete application

5268
03:24:39,680 --> 03:24:43,279
submitted. 26 entities have downloaded

5269
03:24:43,279 --> 03:24:46,080
the RFP, the request for proposal, and

5270
03:24:46,080 --> 03:24:48,560
I've heard from uh another group that

5271
03:24:48,560 --> 03:24:51,279
they're intending to uh respond to it.

5272
03:24:51,279 --> 03:24:53,120
And so that is looking good. But yeah,

5273
03:24:53,120 --> 03:24:56,880
the the request is for $75,000 for for

5274
03:24:56,880 --> 03:24:58,960
that study and it's coming from general

5275
03:24:58,960 --> 03:25:00,960
fund uh money for a onetime

5276
03:25:00,960 --> 03:25:02,160
appropriation.

5277
03:25:02,160 --> 03:25:03,920
>> Can you remind me what we how we

5278
03:25:03,920 --> 03:25:06,720
evaluate those who submit RFPs or

5279
03:25:06,720 --> 03:25:08,000
respond to RFPs?

5280
03:25:08,000 --> 03:25:10,640
>> That's a great question. So, we have a a

5281
03:25:10,640 --> 03:25:14,080
set of criteria that are outlined in the

5282
03:25:14,080 --> 03:25:18,319
request for proposals. And um Caitlyn,

5283
03:25:18,319 --> 03:25:19,920
who's sitting behind you, she actually

5284
03:25:19,920 --> 03:25:22,080
just sent out an email reminder to

5285
03:25:22,080 --> 03:25:23,359
everyone that's on the selection

5286
03:25:23,359 --> 03:25:25,520
committee to provide weights for all of

5287
03:25:25,520 --> 03:25:27,600
the different criteria. Um but it's

5288
03:25:27,600 --> 03:25:30,239
basically how long has this entity

5289
03:25:30,239 --> 03:25:32,880
existed? What is their experience? Um

5290
03:25:32,880 --> 03:25:34,080
>> there is some qualitative stuff.

5291
03:25:34,080 --> 03:25:35,200
>> Oh yeah. Yeah. Absolutely.

5292
03:25:35,200 --> 03:25:36,560
>> Okay.

5293
03:25:36,560 --> 03:25:38,000
>> Right.

5294
03:25:38,000 --> 03:25:39,840
How do do we how do we feel about the

5295
03:25:39,840 --> 03:25:42,560
response so far? It's still early, but

5296
03:25:42,560 --> 03:25:44,560
>> yeah, in speaking with Stephanie Green

5297
03:25:44,560 --> 03:25:46,720
in finance, who who kind of overlooks

5298
03:25:46,720 --> 03:25:48,160
the request for proposal, she says

5299
03:25:48,160 --> 03:25:51,040
you'll get the most all of your

5300
03:25:51,040 --> 03:25:53,920
responses the last day and a handful of

5301
03:25:53,920 --> 03:25:56,319
them the last minute.

5302
03:25:56,319 --> 03:25:58,800
>> And as a former consultant, I can attest

5303
03:25:58,800 --> 03:25:59,920
to that. That's

5304
03:25:59,920 --> 03:26:00,560
>> okay.

5305
03:26:00,560 --> 03:26:02,640
>> You said there's there's a total of 20

5306
03:26:02,640 --> 03:26:05,359
>> 26 downloaded completed.

5307
03:26:05,359 --> 03:26:08,319
>> Yes. No, 26 downloaded. So, just

5308
03:26:08,319 --> 03:26:10,399
basically 26 have shown interest in it.

5309
03:26:10,399 --> 03:26:12,080
>> Yeah. And then one has been submitted

5310
03:26:12,080 --> 03:26:14,000
and then

5311
03:26:14,000 --> 03:26:15,600
>> another entity that I've spoken with

5312
03:26:15,600 --> 03:26:16,880
said they're planning on joining with

5313
03:26:16,880 --> 03:26:18,800
another consulting group and kind of

5314
03:26:18,800 --> 03:26:19,920
working on it together.

5315
03:26:19,920 --> 03:26:20,560
>> Well, I doubt

5316
03:26:20,560 --> 03:26:21,840
>> and they haven't submitted. So,

5317
03:26:21,840 --> 03:26:22,080
>> yeah,

5318
03:26:22,080 --> 03:26:24,479
>> we won't get off. But

5319
03:26:24,479 --> 03:26:25,840
>> what would you consider a good number of

5320
03:26:25,840 --> 03:26:28,720
responses?

5321
03:26:28,720 --> 03:26:31,520
>> Any any more than 10 I'll be very happy

5322
03:26:31,520 --> 03:26:33,439
with. If we get all 26, I'll be a little

5323
03:26:33,439 --> 03:26:36,080
overwhelmed. That's a lot of RFPs to go

5324
03:26:36,080 --> 03:26:40,000
through. Yeah, that that would be great.

5325
03:26:40,000 --> 03:26:43,520
>> All right. Um, any discussion on the

5326
03:26:43,520 --> 03:26:44,640
item?

5327
03:26:44,640 --> 03:26:45,279
>> Thank you for

5328
03:26:45,279 --> 03:26:46,720
>> Go, go, go. Yes.

5329
03:26:46,720 --> 03:26:48,080
>> Perfect. Thank you so much.

5330
03:26:48,080 --> 03:26:50,720
>> Well, there's only one go-getter so far.

5331
03:26:50,720 --> 03:26:52,640
>> Stop it.

5332
03:26:52,640 --> 03:26:54,640
>> Not the last day either.

5333
03:26:54,640 --> 03:26:57,040
>> Well, those are the ones that are

5334
03:26:57,040 --> 03:26:58,319
procrastinators, right?

5335
03:26:58,319 --> 03:26:59,520
>> All right. Next, I have a presentation

5336
03:26:59,520 --> 03:27:01,120
regarding the Provo City and Utah Valley

5337
03:27:01,120 --> 03:27:03,520
Home Consortium Program.

5338
03:27:03,520 --> 03:27:05,680
2026 annual action plan presented by

5339
03:27:05,680 --> 03:27:07,439
Melissa McN, our community grants

5340
03:27:07,439 --> 03:27:16,469
administrator.

5341
03:27:16,479 --> 03:27:19,279
» Hey, good afternoon everyone.

5342
03:27:19,279 --> 03:27:23,040
Um so this year our annual action plan

5343
03:27:23,040 --> 03:27:25,040
um and since I submitted this we did get

5344
03:27:25,040 --> 03:27:28,239
our final um numbers from HUD. So some

5345
03:27:28,239 --> 03:27:29,439
of these numbers have changed a little

5346
03:27:29,439 --> 03:27:33,600
bit. So I did bring um updated

5347
03:27:33,600 --> 03:27:40,070
numbers for you. Um

5348
03:27:40,080 --> 03:27:43,990
maybe.

5349
03:27:44,000 --> 03:27:46,880
» Okay. So, in our community development

5350
03:27:46,880 --> 03:27:51,279
block grant, um we have so it went down

5351
03:27:51,279 --> 03:27:55,990
a little bit. We have $1,130,200

5352
03:27:56,000 --> 03:27:58,880
um available. And for our home funding,

5353
03:27:58,880 --> 03:28:03,750
we have 1,528,425

5354
03:28:03,760 --> 03:28:07,680
um so that went up a little. So um our

5355
03:28:07,680 --> 03:28:11,520
total funding um combined is about just

5356
03:28:11,520 --> 03:28:15,510
over 3.9 million.

5357
03:28:15,520 --> 03:28:20,550
And let's see.

5358
03:28:20,560 --> 03:28:23,920
Okay. Um and this just goes over the the

5359
03:28:23,920 --> 03:28:27,680
process. So, we do have new council

5360
03:28:27,680 --> 03:28:30,319
members um who maybe have not done this

5361
03:28:30,319 --> 03:28:32,239
or been through this process before, but

5362
03:28:32,239 --> 03:28:35,040
so just a brief reminder is in the fall

5363
03:28:35,040 --> 03:28:37,120
we put out a notice of funding available

5364
03:28:37,120 --> 03:28:40,960
so that we have um entities that come um

5365
03:28:40,960 --> 03:28:43,200
we have like a little workshop where we

5366
03:28:43,200 --> 03:28:46,160
educate them on how how to access the

5367
03:28:46,160 --> 03:28:48,960
application and then what to expect. We

5368
03:28:48,960 --> 03:28:50,640
have a pre-application and then an

5369
03:28:50,640 --> 03:28:53,040
application. Um the pre-application is

5370
03:28:53,040 --> 03:28:56,080
to make sure that their pro project

5371
03:28:56,080 --> 03:28:59,520
proposed project is um meeting HUD

5372
03:28:59,520 --> 03:29:02,800
guidelines and can move forward. Um then

5373
03:29:02,800 --> 03:29:05,040
they come and and submit their

5374
03:29:05,040 --> 03:29:08,319
applications and then we have um staff

5375
03:29:08,319 --> 03:29:12,000
does on-site interviews with them um to

5376
03:29:12,000 --> 03:29:14,800
just kind of determine their um capacity

5377
03:29:14,800 --> 03:29:18,880
and ability to um deliver the projects.

5378
03:29:18,880 --> 03:29:21,439
And then we have scoring. So, we have um

5379
03:29:21,439 --> 03:29:23,359
and we just finished this part up. We

5380
03:29:23,359 --> 03:29:27,520
have um citizen committees um that come

5381
03:29:27,520 --> 03:29:30,319
and listen to all the presentations

5382
03:29:30,319 --> 03:29:32,399
and some of that some of our counselors

5383
03:29:32,399 --> 03:29:33,920
were able to come to these

5384
03:29:33,920 --> 03:29:36,720
presentations. Um I think it's always

5385
03:29:36,720 --> 03:29:39,120
interesting to see how many just how

5386
03:29:39,120 --> 03:29:41,520
much good is done with not a whole lot

5387
03:29:41,520 --> 03:29:45,200
of money in our um in our community. Um,

5388
03:29:45,200 --> 03:29:48,399
so we have our committees um rank all of

5389
03:29:48,399 --> 03:29:50,720
the all of the projects and then they

5390
03:29:50,720 --> 03:29:52,560
come up with funding recommendations

5391
03:29:52,560 --> 03:29:55,439
which um you'll see in the annual action

5392
03:29:55,439 --> 03:29:58,640
plan and then um today I'm just here to

5393
03:29:58,640 --> 03:30:00,319
talk about our public comment period.

5394
03:30:00,319 --> 03:30:02,000
So, there is a draft of the annual

5395
03:30:02,000 --> 03:30:04,720
action plan available on our website.

5396
03:30:04,720 --> 03:30:08,000
Um, and we um invite all interested

5397
03:30:08,000 --> 03:30:11,439
parties to to review it and leave

5398
03:30:11,439 --> 03:30:13,279
comments about what we're doing, what

5399
03:30:13,279 --> 03:30:14,640
you maybe what you'd like to see

5400
03:30:14,640 --> 03:30:17,840
different. Um, and then we'll have a

5401
03:30:17,840 --> 03:30:20,080
public hearing. I have one scheduled on

5402
03:30:20,080 --> 03:30:22,239
the 28th of this month and then another

5403
03:30:22,239 --> 03:30:27,680
one um in June. And the June um public

5404
03:30:27,680 --> 03:30:29,200
hearing is when we'll we'll close the

5405
03:30:29,200 --> 03:30:31,840
comment period and and council will um

5406
03:30:31,840 --> 03:30:34,640
make a final vote um by resolution on

5407
03:30:34,640 --> 03:30:37,760
adopting the plan or making any um

5408
03:30:37,760 --> 03:30:44,080
adjustments to funding that they might um deem necessary. And then um I

5409
03:30:44,080 --> 03:30:46,640
will submit everything to HUD and then

5410
03:30:46,640 --> 03:30:49,040
we wait for our little um award

5411
03:30:49,040 --> 03:30:51,040
contracts from HUD and then move forward

5412
03:30:51,040 --> 03:30:53,680
into the year.

5413
03:30:53,680 --> 03:30:56,000
Um, and so this is just kind of a an

5414
03:30:56,000 --> 03:30:59,359
overall um what we do for our citizen

5415
03:30:59,359 --> 03:31:01,920
engagement. We have regional meetings.

5416
03:31:01,920 --> 03:31:04,640
That's when we get together um up in the

5417
03:31:04,640 --> 03:31:08,800
MAG offices in ORM. We work with ORM. Um

5418
03:31:08,800 --> 03:31:11,920
Utah County uh is doing something

5419
03:31:11,920 --> 03:31:13,600
different. So, we're hoping that they

5420
03:31:13,600 --> 03:31:15,760
will um start participating again next

5421
03:31:15,760 --> 03:31:20,160
year in the in the regional um

5422
03:31:20,160 --> 03:31:21,840
process because that just kind of makes

5423
03:31:21,840 --> 03:31:25,120
it easier on our applicants um so that

5424
03:31:25,120 --> 03:31:29,040
so they go to one place to apply for all

5425
03:31:29,040 --> 03:31:31,520
of these all of us that provide CDBG

5426
03:31:31,520 --> 03:31:34,239
funding. Um then we had local meetings.

5427
03:31:34,239 --> 03:31:36,640
So those are just for our Provo only

5428
03:31:36,640 --> 03:31:40,160
projects. Um and we have our um provo

5429
03:31:40,160 --> 03:31:43,040
citizens committee that's uh made up of

5430
03:31:43,040 --> 03:31:45,680
um neighborhood representatives from uh

5431
03:31:45,680 --> 03:31:48,479
mostly our CDBG eligible neighborhoods.

5432
03:31:48,479 --> 03:31:50,479
Um and then we have our home consortion

5433
03:31:50,479 --> 03:31:53,920
board. So um our home consortium we uh

5434
03:31:53,920 --> 03:31:56,399
administer that program. It is for the

5435
03:31:56,399 --> 03:31:58,720
entire county. So the consortion board

5436
03:31:58,720 --> 03:32:01,600
is made up of um other entities within

5437
03:32:01,600 --> 03:32:04,399
the county um that come and do decide on

5438
03:32:04,399 --> 03:32:09,910
funding um throughout the county.

5439
03:32:09,920 --> 03:32:12,319
Um and this is just kind of describes um

5440
03:32:12,319 --> 03:32:16,720
our role um in in the regional process.

5441
03:32:16,720 --> 03:32:18,720
Um we are the lead entity in the Utah

5442
03:32:18,720 --> 03:32:23,680
Valley Home Consortium. So we um

5443
03:32:23,680 --> 03:32:26,560
help make the um funding decisions for

5444
03:32:26,560 --> 03:32:28,720
the home dollars and then we are

5445
03:32:28,720 --> 03:32:30,960
responsible for all the administration

5446
03:32:30,960 --> 03:32:35,600
of um of the home of the home dollars.

5447
03:32:35,600 --> 03:32:38,560
Um, and we are a a member of the

5448
03:32:38,560 --> 03:32:40,880
Mountainland Continuum of Care. Um, this

5449
03:32:40,880 --> 03:32:44,479
is just like a little um just to bring

5450
03:32:44,479 --> 03:32:46,239
to your attention this this these are

5451
03:32:46,239 --> 03:32:48,800
the numbers from 2025. We don't have the

5452
03:32:48,800 --> 03:32:50,800
2026 point in time count and I don't

5453
03:32:50,800 --> 03:32:52,239
know if you are familiar with the point

5454
03:32:52,239 --> 03:32:54,960
in time count. I I imagine some of you

5455
03:32:54,960 --> 03:32:59,840
are. Um, and that's just to uh count our

5456
03:32:59,840 --> 03:33:01,840
the the people who are experiencing

5457
03:33:01,840 --> 03:33:05,040
homelessness. Um last year we had a rise

5458
03:33:05,040 --> 03:33:08,160
in of 34% and I'm told by the in the

5459
03:33:08,160 --> 03:33:09,680
last continuum of care meeting that

5460
03:33:09,680 --> 03:33:12,880
they're seeing more um unhoused families

5461
03:33:12,880 --> 03:33:16,560
than they have ever before. So um a lot

5462
03:33:16,560 --> 03:33:19,279
of work to do with with our HUD funding

5463
03:33:19,279 --> 03:33:21,840
and um especially with our our home

5464
03:33:21,840 --> 03:33:24,160
dollars to to try and keep people housed

5465
03:33:24,160 --> 03:33:29,990
and uh and taken care of. Um

5466
03:33:30,000 --> 03:33:31,760
uh and this is the summary of where all

5467
03:33:31,760 --> 03:33:34,479
of the the funding comes from for each

5468
03:33:34,479 --> 03:33:36,720
year. Um again, these numbers are are a

5469
03:33:36,720 --> 03:33:38,960
little bit different because

5470
03:33:38,960 --> 03:33:41,760
um of our funding adjustment. So the

5471
03:33:41,760 --> 03:33:43,760
program income, that's money that we get

5472
03:33:43,760 --> 03:33:46,239
from loans that are repaid. Um we put

5473
03:33:46,239 --> 03:33:48,319
them back into the system to be used

5474
03:33:48,319 --> 03:33:50,720
again. and reprogram funds. That's when

5475
03:33:50,720 --> 03:33:52,479
if a project finishes up and they

5476
03:33:52,479 --> 03:33:54,080
haven't used all the funding, we put it

5477
03:33:54,080 --> 03:33:57,120
back in to be used um by some other

5478
03:33:57,120 --> 03:34:00,560
project. Um our public services cap is

5479
03:34:00,560 --> 03:34:04,960
15%. So 12 we um obligate about 12% to

5480
03:34:04,960 --> 03:34:08,000
the regional process and we keep 3% just

5481
03:34:08,000 --> 03:34:10,080
for organizations that are doing work

5482
03:34:10,080 --> 03:34:14,080
only in Provo City.

5483
03:34:14,080 --> 03:34:18,640
Um okay. And this is our home funding.

5484
03:34:18,640 --> 03:34:22,319
Um so and again we have our our program

5485
03:34:22,319 --> 03:34:26,640
income and the home um receipts. This is

5486
03:34:26,640 --> 03:34:28,800
another these are both pro considered

5487
03:34:28,800 --> 03:34:30,319
program income. They're just kind of

5488
03:34:30,319 --> 03:34:32,479
different different buckets. So they're

5489
03:34:32,479 --> 03:34:34,960
just separated so that HUD can see those

5490
03:34:34,960 --> 03:34:37,120
different buckets. Um and then we had

5491
03:34:37,120 --> 03:34:40,080
reprogrammed funds come back in. Um and

5492
03:34:40,080 --> 03:34:41,520
so this year this is kind of the

5493
03:34:41,520 --> 03:34:43,200
breakdown of where all of that's going.

5494
03:34:43,200 --> 03:34:52,640
Um the the CHTO set aside is a 15% that we um it's automatically assigned

5495
03:34:52,640 --> 03:34:55,760
to a CHTO. We have one CHTO organization

5496
03:34:55,760 --> 03:34:57,359
which stands for community housing

5497
03:34:57,359 --> 03:35:01,760
development organization. Um and so that

5498
03:35:01,760 --> 03:35:03,680
money automatically goes to that

5499
03:35:03,680 --> 03:35:06,000
organization every year. Um and then we

5500
03:35:06,000 --> 03:35:06,239
have

5501
03:35:06,239 --> 03:35:07,920
>> which organization is it?

5502
03:35:07,920 --> 03:35:10,160
>> Um it is self-help homes.

5503
03:35:10,160 --> 03:35:13,359
So, are is does anyone need um

5504
03:35:13,359 --> 03:35:14,960
clarification on what self-help homes

5505
03:35:14,960 --> 03:35:17,359
is? Because they're pretty fabulous.

5506
03:35:17,359 --> 03:35:20,720
They're they um get together and in

5507
03:35:20,720 --> 03:35:22,560
groups and build each other's homes. Um

5508
03:35:22,560 --> 03:35:24,800
and they're doing a lot of work. Yeah. A

5509
03:35:24,800 --> 03:35:27,680
lot of work um down in PAC and the Salem

5510
03:35:27,680 --> 03:35:30,960
area right now. So, um this year we have

5511
03:35:30,960 --> 03:35:33,920
our our loan to own

5512
03:35:33,920 --> 03:35:35,760
was given the the largest amount of

5513
03:35:35,760 --> 03:35:37,840
money. We've changed our down payment

5514
03:35:37,840 --> 03:35:40,239
assistance programs. um a little bit to

5515
03:35:40,239 --> 03:35:41,840
allow for more down payment assistance

5516
03:35:41,840 --> 03:35:44,239
to help um those families get into their

5517
03:35:44,239 --> 03:35:47,439
first home. Um so a lot more money was

5518
03:35:47,439 --> 03:35:49,040
dedicated to that. And Home Purchase

5519
03:35:49,040 --> 03:35:51,920
Plus, so Loan to own is a countywide

5520
03:35:51,920 --> 03:35:54,800
program. Home Purchase Plus is strictly

5521
03:35:54,800 --> 03:35:58,720
Provo. Um and the Home Purchase Plus

5522
03:35:58,720 --> 03:36:02,239
does allow um for a larger down payment

5523
03:36:02,239 --> 03:36:03,920
um because we really want to incentivize

5524
03:36:03,920 --> 03:36:05,439
people to live in Provo. It's pretty

5525
03:36:05,439 --> 03:36:06,160
great. So

5526
03:36:06,160 --> 03:36:08,160
>> it's the 60 now, right? Yes, it is

5527
03:36:08,160 --> 03:36:11,120
60,000 um down payment assistance for

5528
03:36:11,120 --> 03:36:12,720
first-time home buyers. And then

5529
03:36:12,720 --> 03:36:16,080
Building Beginnings um does the TBR

5530
03:36:16,080 --> 03:36:17,600
stands for tenant based rental

5531
03:36:17,600 --> 03:36:20,880
assistance. So they uh do a lot of work

5532
03:36:20,880 --> 03:36:23,200
for people who are transitioning back

5533
03:36:23,200 --> 03:36:26,160
into housing. Um some a lot of their

5534
03:36:26,160 --> 03:36:29,520
clientele are exiting the um

5535
03:36:29,520 --> 03:36:32,319
correctional facilities and going into

5536
03:36:32,319 --> 03:36:35,520
their program. um they're they only take

5537
03:36:35,520 --> 03:36:39,520
um certain um offenders um non-violent

5538
03:36:39,520 --> 03:36:42,000
offenders into their program um and help

5539
03:36:42,000 --> 03:36:46,479
them um build skills to succeed and um

5540
03:36:46,479 --> 03:36:48,399
and provide that rental assistance while

5541
03:36:48,399 --> 03:36:50,000
they're building those skills, those

5542
03:36:50,000 --> 03:36:51,760
life skills.

5543
03:36:51,760 --> 03:36:54,239
Um and then this is this is the

5544
03:36:54,239 --> 03:36:56,960
breakdown of all of our um everything

5545
03:36:56,960 --> 03:36:59,040
that was awarded in CDBG. And again,

5546
03:36:59,040 --> 03:37:01,279
these are um going to be a little bit

5547
03:37:01,279 --> 03:37:03,279
different. the refuge and mountain

5548
03:37:03,279 --> 03:37:05,600
community or Mountlands Community Health

5549
03:37:05,600 --> 03:37:09,040
Center are both um less than that and

5550
03:37:09,040 --> 03:37:12,080
that's based on contingency plans that

5551
03:37:12,080 --> 03:37:15,120
our citizen committees come up with in

5552
03:37:15,120 --> 03:37:17,840
case the funding is lower or higher.

5553
03:37:17,840 --> 03:37:19,520
They decide where those adjustments are

5554
03:37:19,520 --> 03:37:21,359
going to be made. So, those two are

5555
03:37:21,359 --> 03:37:22,880
going to be a little bit lower and the

5556
03:37:22,880 --> 03:37:25,359
community garden uh is a little bit

5557
03:37:25,359 --> 03:37:30,080
lower. And then in the um and down here

5558
03:37:30,080 --> 03:37:32,479
in the United Way, that's also a little

5559
03:37:32,479 --> 03:37:34,239
bit lower because of the the reduced

5560
03:37:34,239 --> 03:37:37,120
CDBG funding that we got. And then over

5561
03:37:37,120 --> 03:37:40,399
here in the home awards, they um opted

5562
03:37:40,399 --> 03:37:43,439
to put the excess any excess that we

5563
03:37:43,439 --> 03:37:45,439
got, which was yay, we did get some this

5564
03:37:45,439 --> 03:37:49,439
year um in the loan to own um pod. So

5565
03:37:49,439 --> 03:37:53,439
those are the differences here.

5566
03:37:53,439 --> 03:37:58,800
Um so the next steps are um

5567
03:37:58,800 --> 03:38:01,359
uh well this is probably a later step

5568
03:38:01,359 --> 03:38:05,520
but um you will um potentially adopt the

5569
03:38:05,520 --> 03:38:08,560
annual action plan in June. Um, we do

5570
03:38:08,560 --> 03:38:10,640
have the public comment period that will

5571
03:38:10,640 --> 03:38:15,840
end um in that June public hearing and

5572
03:38:15,840 --> 03:38:19,439
then we will have certifications that um

5573
03:38:19,439 --> 03:38:21,680
the mayor gets to sign for us and then

5574
03:38:21,680 --> 03:38:24,880
we submit everything um to HUD in the in

5575
03:38:24,880 --> 03:38:27,040
the HUD in the federal reporting system

5576
03:38:27,040 --> 03:38:29,520
which is what the IDIS is. Um then

5577
03:38:29,520 --> 03:38:32,399
they'll review and either say this is

5578
03:38:32,399 --> 03:38:36,479
great or um this needs some revisions or

5579
03:38:36,479 --> 03:38:39,359
um and then our new uh program year

5580
03:38:39,359 --> 03:38:42,560
begins July 1st.

5581
03:38:42,560 --> 03:38:44,399
>> All right.

5582
03:38:44,399 --> 03:38:48,000
>> And I think that's it. And Kevin, did

5583
03:38:48,000 --> 03:38:50,640
you get that? Okay. Okay.

5584
03:38:50,640 --> 03:38:53,279
>> Yeah, that'd be great. Okay. And just in

5585
03:38:53,279 --> 03:38:54,880
case somebody's viewing and wants to see

5586
03:38:54,880 --> 03:38:58,080
it, this is the so we I had Kristen just

5587
03:38:58,080 --> 03:39:01,120
posted the new um annual action plan.

5588
03:39:01,120 --> 03:39:04,479
This is the one that council got updated

5589
03:39:04,479 --> 03:39:08,160
since um last week. So this is the this

5590
03:39:08,160 --> 03:39:10,239
is a link to the new annual action plan

5591
03:39:10,239 --> 03:39:11,840
with the new numbers and all those

5592
03:39:11,840 --> 03:39:14,399
revisions um are within there. Um it

5593
03:39:14,399 --> 03:39:15,840
goes right to the website so you can

5594
03:39:15,840 --> 03:39:17,760
look at the action plan and there is a

5595
03:39:17,760 --> 03:39:20,479
comment box um just to make leaving a

5596
03:39:20,479 --> 03:39:22,720
comment easier. And there's also

5597
03:39:22,720 --> 03:39:26,800
information on um on the website on if

5598
03:39:26,800 --> 03:39:28,160
you don't want to do a comment box, if

5599
03:39:28,160 --> 03:39:30,399
you want to email me or call me or mail,

5600
03:39:30,399 --> 03:39:32,880
all that information is on the website.

5601
03:39:32,880 --> 03:39:33,120
Great.

5602
03:39:33,120 --> 03:39:35,840
>> So, do you guys have any any questions

5603
03:39:35,840 --> 03:39:39,120
for me at this point?

5604
03:39:39,120 --> 03:39:40,800
>> All right.

5605
03:39:40,800 --> 03:39:42,160
>> Fantastic. Good job.

5606
03:39:42,160 --> 03:39:45,120
>> Thank you.

5607
03:39:45,120 --> 03:39:47,120
>> All right. You uh municipal council will

5608
03:39:47,120 --> 03:39:48,960
consider a motion for closed meeting.

5609
03:39:48,960 --> 03:39:51,840
Brian

5610
03:39:51,840 --> 03:39:54,319
There are a handful of matters uh or to

5611
03:39:54,319 --> 03:39:55,760
be discussed in closed meeting. They all

5612
03:39:55,760 --> 03:39:57,279
deal with character and competence of

5613
03:39:57,279 --> 03:39:58,800
individuals which is one they approved

5614
03:39:58,800 --> 03:40:00,800
recently. Be appropriate to move to

5615
03:40:00,800 --> 03:40:01,760
close the meeting like this.

5616
03:40:01,760 --> 03:40:03,040
>> Great. Do you have a motion for a closed

5617
03:40:03,040 --> 03:40:04,000
meeting?

5618
03:40:04,000 --> 03:40:05,840
>> Motion to post.

5619
03:40:05,840 --> 03:40:07,200
>> Second.

5620
03:40:07,200 --> 03:40:09,600
>> Great. Um

5621
03:40:09,600 --> 03:40:12,000
that we take a vote on motion to close

5622
03:40:12,000 --> 03:40:13,680
the meeting. Councelor Gary Garrett.

5623
03:40:13,680 --> 03:40:14,319
>> Yes.

5624
03:40:14,319 --> 03:40:16,560
>> Councelor Bogd. Yes. Councelor Hogan.

5625
03:40:16,560 --> 03:40:16,880
>> Yes.

5626
03:40:16,880 --> 03:40:18,399
>> Councelor McKay. Yes. Councelor

5627
03:40:18,399 --> 03:40:19,040
Christensen.

5628
03:40:19,040 --> 03:40:20,960
>> Yes. Ma'am. Councelor Whitlock.

5629
03:40:20,960 --> 03:40:21,439
>> Yes.

5630
03:40:21,439 --> 03:40:22,479
>> Councelor Whipple.

5631
03:40:22,479 --> 03:40:23,279
>> Yes.

5632
03:40:23,279 --> 03:40:26,880
>> That passes 70. Um, we will now recess

5633
03:40:26,880 --> 03:40:28,479
appointment council work meeting and

5634
03:40:28,479 --> 03:40:30,000
reconvene in the pre-unction room for

5635
03:40:30,000 --> 03:40:36,389
the closed meeting.

5636
03:40:36,399 --> 03:40:39,920
» Recording stopped.