[0:02] like to welcome everyone to global
[0:04] council work April 14th, 2026 at 12
[0:08] noon.
[0:10] We roll to a roll call of the elected
[0:12] officials
[0:14] started with councelor Rachel Whipple.
[0:18] >> Uh Jeff Wock, Craig Christensen,
[0:21] >> Katrice M, Becky Bogden,
[0:23] >> Gary Garrett.
[0:24] >> Although this is a public meeting, only
[0:26] the presenters and those invited by the
[0:27] council may speak or ask questions.
[0:29] Unless otherwise am by the chair. Please
[0:31] wait to speak until called on by the
[0:33] council chair. When speaking, please be
[0:35] sure to use a microphone so the record
[0:36] is clear and those attending virtually
[0:38] can hear you. Please also be sure to
[0:40] limit side conversations as they
[0:42] interfere with the audio recording. If
[0:44] you need to have a side conversation,
[0:45] please step out of the work meeting
[0:46] room. Is proposed that we approve the
[0:49] following minutes. March 24th, 2026 work
[0:52] meeting. Are there any objections or
[0:55] requested changes?
[0:57] Seeing no objection, I declare the
[0:58] minutes approved by unanimous consent.
[1:05] First item of business is a presentation
[1:07] regarding the 2027 budget airport. This
[1:10] is presented by Brian Torus, our airport
[1:12] director.
[1:15] >> All right, we're waiting for the door to
[1:16] open, but it looks like we got here just
[1:19] in time. So, thank you, council. Thanks
[1:22] for having us today. We're going to make
[1:23] this pretty quick unless there are
[1:25] questions. Um, pretty similar budget to
[1:28] what we had last year. Um, just with a
[1:31] few highlights,
[1:34] maybe
[1:36] Kevin, you want to just advance for me?
[1:41] >> I forgot.
[1:48] » All right, there we go. So, just just to
[1:51] recap um part of what's included in this
[1:53] year's budget, which is a change from
[1:56] last year's budget budget time anyway as
[1:58] we added the three full-time
[1:59] firefighters mid year and we appreciate
[2:02] that. Um we are fully compliant with our
[2:06] FA requirements for ARF at this point.
[2:10] In fact, our FAA inspector is here
[2:12] tomorrow and Thursday. So, uh putting us
[2:15] through the ringer on on our
[2:17] certification, but we we feel pretty
[2:19] good about the way things are going and we should be just fine. So, um, and
[2:24] then just some moderate increases to
[2:26] several line items in the budget. Just
[2:28] anticipating
[2:30] end of this budget year that we're we're
[2:33] working on is is essentially 18 months
[2:36] from now and we'll have some of the new
[2:39] terminal operational or or close to
[2:42] operational at that point. And so, we've
[2:44] increased a few line items. Uh, can't
[2:47] remember the exact amount, but it's in
[2:49] your packet. There's a supplemental
[2:51] request. And then I'm currently at the
[2:54] airport.
[2:54] >> Did you mean the end of this year or the
[2:56] end of next?
[2:57] >> So the end of FY27, right? Um
[2:59] >> cuz you're still way off.
[3:01] >> Yeah. It's it's the beauty of budgeting
[3:03] in February, March time frame is is
[3:06] we're looking way out there. So um
[3:09] >> you're saying the bottom two are the end
[3:11] of this year.
[3:12] >> No, I'm saying just we're planning for
[3:15] increased operations at the end of FY27.
[3:18] That's why we've increased those line
[3:20] item budgets for maintenance of
[3:22] equipment and and other things like that
[3:25] because again this budget year takes us
[3:26] clear till July of 207.
[3:30] >> Yes. Okay. So these are for this budget
[3:32] though.
[3:32] >> Yes. Yeah. Okay. Thank you.
[3:34] >> Um sorry to confuse you on that. Um
[3:37] full-time systems analyst. Um currently
[3:40] we split a an is employee between us and
[3:43] public works. um we're getting to the
[3:46] point with all the systems and
[3:47] technology at the airport um where we we
[3:50] need that person full-time. So, we're
[3:52] just adding that additional part-time
[3:56] uh budget amount halftime, not part-time
[4:00] budget amount to the budget. And then,
[4:02] >> so you'd be hiring a full just for the
[4:04] airport.
[4:05] >> Correct. Um I hope it's the same person
[4:08] we have. Um Gordon might not like that we take him from public works, but
[4:13] um we'll work that out with is who that
[4:14] person ends up being. But we will have a
[4:17] full-time dedicated is employee at the
[4:19] airport. Um and then
[4:23] uh again, this is IS's responsibility to
[4:25] staff it, but also providing backup. So
[4:28] when that person takes vacation or or
[4:30] whatever, they're also on call, right?
[4:32] So um we operate nearly 24 hours a day.
[4:37] And so um having that backup person is
[4:39] also important um in
[4:43] the last one we have a part-time
[4:45] administrative assistant that we're
[4:46] looking to move to full-time just uh do
[4:49] the activity at the airport and all the
[4:51] interruptions that our poor executive
[4:53] office assistant has to endure
[4:55] throughout the day and and still try and
[4:57] get get their work done. So that's the changes in in the uh in the
[5:03] budget. Um, a few minor fee changes is
[5:07] all. Uh, we found that we were missing
[5:09] one of our badges in our in our fee
[5:11] schedule. Um, this is just a general
[5:14] aviation badge for for anyone who has
[5:17] business inside the non-commercial part
[5:19] of the airport. It was just missing. Um,
[5:22] something we overlooked. And then
[5:24] landing fees and terminal use fees.
[5:26] Those are are fees that we um increase
[5:30] based on CPI, at least for the moment.
[5:33] We have um I think we're in our second
[5:36] to last year of being tied to that
[5:38] contractually with the airlines. Um and
[5:42] obviously as operations increase that's two of our main fees that we
[5:49] charge to the airlines um that also get
[5:52] waved um during incentive periods as
[5:54] well. So
[5:56] >> those numbers are so small it's hard to
[5:58] have like perspective on it. I was
[6:00] curious like what kind of are we talking
[6:02] thousands of increase, tens of thousands
[6:04] of increase like overall for the year?
[6:06] >> It's not a ton. Just just on order of
[6:08] magnitude landing fees, we get about
[6:10] 600,000 a year in landing fees. Okay.
[6:14] >> So, it's I mean 3% more. Again, right
[6:17] now
[6:19] >> when Breeze came in, they they tied us
[6:22] to some pretty low landing fees by
[6:24] contract and we had to match that with
[6:26] the other airlines. So we we did that
[6:28] for 5 years. Um so we're hoping to see
[6:31] in the next few years more moderate
[6:33] increase around the 10% range or
[6:36] something like that. Um again it's a
[6:38] fine line. The airlines will claim that that's going to break the bank and
[6:42] people aren't going to fly and all that
[6:44] sort of stuff. So it's it's a fine
[6:46] balance and what we charge the airlines.
[6:48] But it is of note that those two fees
[6:50] get waved um in incentive period. So for
[6:54] a new route it get waves it gets waved
[6:56] for two years.
[6:57] >> So an incentive period is a new route
[6:59] and every new route gets two years of
[7:01] >> so for new routes with zero service it's
[7:04] two years for an existing route that
[7:06] they're adding frequency to like if
[7:09] breeze decided to serve a market
[7:10] allegant was in um they get it for 12
[7:13] months is all.
[7:14] >> So
[7:16] >> how do we compare how do we compare to
[7:19] Salt Lake for example on our fees? Uh we
[7:22] are extremely low.
[7:23] >> Much lower.
[7:23] >> Much
[7:24] >> how about to other regional airports?
[7:26] >> Uh we're pretty low still. Um just
[7:28] perspective, I don't know exactly, but
[7:31] we're in the we're in the realm with
[7:33] Ogden and St. George. Um again, I think
[7:36] that's the expectation of of the users
[7:38] and the airlines that we'd be a little
[7:40] bit lower. We don't have quite the
[7:44] >> um facilities that those large airports
[7:46] have. That's also what makes us
[7:48] attractive, right? um because those fees
[7:51] get to be pretty expensive when you're looking at $35 tickets, right?
[7:57] So, um we don't we don't foresee us
[8:00] raising those a ton. We're about number
[8:03] six in uh Allegiance Network as far as
[8:08] um sixth lowest. So, there's only five
[8:11] that are lower than us in Allegiance
[8:12] entire network. We just learned that
[8:14] last week when we went to our Allegian
[8:16] conference. lower fees.
[8:19] >> There's only five airports that have
[8:20] lower
[8:22] >> they call these um Whoa, sorry about
[8:25] that.
[8:27] >> They use these to determine what's
[8:28] called a cost per implainment.
[8:31] >> Um and we are like I say number six,
[8:35] there's only five lower than us.
[8:38] >> It'd be great next year to have a graph
[8:39] on that comparison.
[8:40] >> You got it. is.
[8:42] >> And then we we've thrown this around
[8:45] several times, but we we are removing
[8:47] terminal advertising fees um in favor of negotiated market rates for that um
[8:53] as strategy and marketing. People always
[8:57] have a different idea of how they want
[8:59] to advertise in the in the terminal. And
[9:01] so it's kind of hard to pinpoint exactly
[9:04] what that rate should be um
[9:07] because it does vary so so much. So, um,
[9:11] one thing that that I want to make sure
[9:12] and mention, um, as we committed to last
[9:16] year in the budget season, um, we are
[9:18] planning to take over the payment that
[9:21] is currently coming from the general
[9:23] fund for the Durant property purchase.
[9:25] Um, there's three or four years left on
[9:28] that. Four years, Jimmy's telling me,
[9:30] thank you, Jimmy. um on that um as well.
[9:33] I believe as part of that finance is
[9:36] preparing that transaction for the for
[9:39] this current year. Um but just know when
[9:41] that does come, we will be planning on picking up that payment at the
[9:46] airport in 27 and beyond.
[9:50] >> Now, I know that was always our goal
[9:52] >> and but I just curious, so financially
[9:54] that's not an extra strain on you like
[9:56] it's it does work out well and it you're
[9:57] at the right place.
[10:00] It's tricky, right? Um, our revenues
[10:03] look really good. March was our busiest
[10:06] month ever. Um, we had over 103,000
[10:10] passengers through the terminal. Our
[10:12] parking revenue was the highest it's
[10:13] ever been. So, the trend is in the right
[10:16] direction, but we also have fuel prices
[10:18] that are going the same way. And that impacts our airlines significantly.
[10:22] So,
[10:24] >> we we feel like it's going to be okay.
[10:26] Um, and if everything continues where we
[10:29] are today and doesn't decline, then we
[10:31] should be just fine. We're not counting
[10:33] on on needing
[10:36] significant increases to make it work.
[10:39] Um, like I say, our revenues do look
[10:40] good. Um, and as long as things don't
[10:43] decline drastically.
[10:45] >> Can you remind us, Brian, what that
[10:47] annual payment has been and what it will
[10:49] be?
[10:49] >> I think total principal interest is 600
[10:52] and something thousand um year
[10:55] >> per year. Uh Jimmy could tell us
[10:57] exactly, but I want to say it's around
[11:00] 130 interest and 400 and something in in
[11:04] principal. So,
[11:08] and just some some key accomplishments.
[11:11] Um we did see over 540,000
[11:15] passenger inflamements. So again, double
[11:17] that's the number of passengers in 2020.
[11:21] That's calendar year 2025.
[11:24] Um we think um we've been saying this a
[11:27] long time that that we're that close to
[11:29] small hub status and based on those
[11:33] numbers that puts us well within
[11:36] actually up six or seven airports into
[11:38] that small hub status from from years
[11:41] past. Now employments could have
[11:44] increased nationwide and so we don't
[11:47] know exactly but if the employments
[11:49] nationwide were what they were a year
[11:51] ago and we would be well within that
[11:53] small hub status which doesn't mean a
[11:56] whole lot other than our our competition
[11:59] pool for grant money for certain grants
[12:01] becomes smaller. Um and so
[12:05] anyway and that traffic represents a
[12:09] 20.4% 4% increase from from previous
[12:12] year. So, we're not seeing the 100%
[12:14] increase that we did in 23 and 24, but a
[12:18] 20% increase is still pretty
[12:20] significant.
[12:21] >> I know this the small hub status is a
[12:23] big deal.
[12:24] >> Um, is it only in playments that
[12:26] determines that or is there a report
[12:28] card?
[12:29] >> Yeah, so the way it works is it's based
[12:32] off a percentage of nationwide
[12:34] employment. So for small hub, I want to
[12:36] say it's less than 0.5% of nationwide
[12:40] employments or 0.05 or something like
[12:42] that. I can't remember the exact number.
[12:45] Um and then medium hub is, you know, the
[12:48] next tier, but even the large hubs like
[12:50] Salt Lake and Atlanta, it's only like 1%
[12:53] of of nationwide employment. So, um, but
[12:58] again, we are in the top
[13:01] what, 300 airports in the country, um,
[13:04] as far as commercial service, and
[13:06] there's over 3,000 airports in the
[13:08] country. So,
[13:11] um, again, we added the three full-time
[13:13] firefighters. Um, and this next one's a
[13:15] bigger one. We completed construction of
[13:17] Terminal Apron, which has been amazing.
[13:21] um we don't have to cram aircraft on the ramp and uh crowd them in other
[13:26] places on the airport. Um we are
[13:31] beginning construction of the North
[13:33] Taxiway
[13:34] Charlie hanger development. So that will
[13:36] provide infrastructure for 12 additional
[13:39] private hangers. Um and so that's being
[13:42] we we sent that out to bid just last
[13:44] week. We've already got hangers under
[13:47] design being submitted for building
[13:48] permits to fill in those spaces. So, we
[13:51] have a waiting list of probably 25 for
[13:54] those 12 hangers. So, we feel pretty
[13:56] good that those will be be uh filled up
[13:59] pretty quickly and then that adds uh
[14:01] several hundred,000 a year to our our
[14:04] revenue for ground lease um just off of
[14:07] those 12 hangers. So,
[14:08] >> so do we own all the ground the all the
[14:11] hangers are on?
[14:12] >> Correct. So the airport,
[14:15] we have to retain control of the
[14:17] property in perpetuity because we've
[14:19] obligated it through federal funds. And
[14:22] so and that's typical of every airport.
[14:24] So all of the property at the airport
[14:27] remains the property of the city. We
[14:29] just have a long it's it's typically the
[14:31] FAA won't allow anything longer than 50
[14:34] years, but our standard ground lease um
[14:38] upon which sits the hanger is 30 years
[14:40] with two five-year extensions.
[14:45] And then there's escalation
[14:48] uh divisions to to increase the ground
[14:50] lease rate throughout the term of the
[14:52] lease as well.
[14:53] >> And so because we own the ground, we can
[14:55] have rules on
[14:58] Uh yes, we have rules and regulations as
[15:01] well as minimum standards. So if you're providing a a commercial uh
[15:07] yeah commercial service of any kind um
[15:09] at the airport, then then that would
[15:11] fall under minimum standards. So to do X
[15:14] activity, you have to comply with this
[15:16] list. And then rules and regulations is
[15:19] just uh you know, don't speed, don't
[15:22] litter, whatever other rules we might
[15:25] have. But every lease is is um
[15:28] subordinate to the FAA uh rules,
[15:31] regulations, federal law, and our grant
[15:33] asurances, which we um every time the
[15:37] mayor signs a grant agreement, we we
[15:39] commit to this list of 49 different
[15:42] things that the FA requires. So, all of
[15:44] our leases are subject to all of those
[15:46] federal provisions as well.
[15:48] >> Now, in the past, I know we've had
[15:49] issues with people not having planes in
[15:51] their hangers or so. Has that been
[15:53] worked out? that it's a perpetual
[15:55] problem. Um, and we we get the
[16:00] lowhanging fruit and then we we move on
[16:02] and we we try and make the situation
[16:04] better that we've got one that I know of
[16:06] that we're still dealing with. Um, and
[16:09] there's some history there that makes it
[16:11] even more difficult. But yes, we are
[16:13] obligated to ensure that the hangers are
[16:15] used for aeronautical purposes only.
[16:19] Um, we added three non-stop routes.
[16:22] Raleigh, North Carolina. Don't know if
[16:24] all of you heard about that, but that
[16:26] will start in October. Las Vegas and
[16:28] Burbank.
[16:30] Uh we already talked about RF index C.
[16:32] Um and the bond that you were all so
[16:35] gracious to approve. And then uh some
[16:39] funding through earmarks through our
[16:40] federal uh representatives.
[16:44] And
[16:45] we just finished the installation of an
[16:48] automatic exit lane door. So the kind
[16:50] you see at Salt Lake that you walk
[16:52] through and the door slam behind you and
[16:54] if you try and walk backwards it screams
[16:56] at you. Um so that that's huge. That
[16:58] actually eliminates
[17:00] um one of the things with the budget
[17:02] process back in Washington is a lot of
[17:05] the funding for TSA as you know is being
[17:08] eliminated. And one of the first things
[17:10] they did to eliminate even when they had
[17:12] a continuing resolution was the TSA
[17:15] historically at our airport has has
[17:18] monitored the exit lane so that people
[17:20] couldn't come back through the door once
[17:22] they had exited the sterile area. Well,
[17:25] that was day one of the Trump
[17:27] administration that was eliminated which
[17:30] necessitated our employees to be at that
[17:33] exit which was a huge drain on our
[17:36] resources. Um but now with this um we
[17:40] have an officer there that now provides
[17:43] this door provides the the uh the
[17:47] barrier so to speak so that the the
[17:49] police officers that are already there
[17:51] can respond appropriately and if there
[17:54] is an issue whereas before they may be
[17:57] helping TSA in the bag check room or
[17:59] whatever and they someone could sneak
[18:01] through. So that's a big one for us. Um,
[18:04] we have a second one. So, currently we
[18:07] have one lane. We have a second lane
[18:09] that will be delivered here in the next
[18:11] month or two to give us two of those
[18:13] exit lanes. Um, and we have space for
[18:16] future additions as well. And then um
[18:21] something that's probably less visible
[18:23] maybe um is working with our storm water
[18:26] division. Um we've in installed a new uh
[18:30] pump which allowed us to fill in a lot
[18:33] of the airport moat um provide for
[18:36] additional parking space for rental cars
[18:38] and the um but all of that drainage has
[18:41] to get lifted up over the dyke and into
[18:44] the lake. We've had an old pump station
[18:47] there since the 70s. Um, and with all of
[18:50] the development, not just at the
[18:52] airport, but again at the regional
[18:54] sports park and that whole west side
[18:57] drains to the airport, um, between the
[19:00] airport and storm water, we've we're
[19:03] about 75% complete on that on that
[19:07] facility that that pumps that storm
[19:09] drainage up and over into the lake.
[19:13] Uh, just some performance measures here.
[19:15] Um, this is one, it's again based on
[19:17] employments. So in 2024 we were at
[19:20] 448,000.
[19:22] Again I we talked about uh in the
[19:25] previous slide our target was looks like
[19:28] it was 505,000. We surpassed that um
[19:32] with 545,000
[19:34] with and then the FA will add some with
[19:37] charters. We don't know those numbers
[19:38] until about August or September what the
[19:40] final number is. But and then uh
[19:46] so we even surpassed 2026's target.
[19:50] And that's all I had if
[19:53] there are any questions.
[19:55] >> Any questions? Um Council Whitlock.
[19:58] >> Yeah, just um I know we a couple we
[20:01] asked a similar question, but I just
[20:02] want to make sure I understood. So do we
[20:04] estimate when we hit that 5 550k target
[20:07] we'll hit that uh status the hub status?
[20:09] >> Yeah. Again so if you look at at 2024's
[20:12] in plainment numbers yeah
[20:14] >> that 550,000 that we hit this year would
[20:17] have put us
[20:19] >> six or seven airports up into that small
[20:21] hub status list. Again, depending on
[20:24] what the nationwide employments did this
[20:28] year in 2025, we don't we don't know
[20:30] until September, August, September of
[20:32] what the actual numbers are, but just
[20:35] given that um we feel pretty confident
[20:39] we'll be in that list.
[20:40] >> Great.
[20:42] >> Another question I had is um there's
[20:44] like a 20% year-over-year growth and
[20:47] what has been primarily driving that?
[20:49] Has it been new routes, uh more more
[20:51] flights within existing routes? Could
[20:52] you just explain the breakdown there?
[20:54] >> Yeah, so Breeze is probably a lot of
[20:57] that um
[20:59] and obviously American Airlines, but
[21:01] Breeze has has almost doubled their
[21:03] employments in the last in the last year
[21:06] um with new routes. Uh they took over
[21:09] the Aello service into Burbank, which helps, right? So when Abello
[21:14] exited Burbank, uh, Breeze added
[21:18] essentially everything that Aello was flying out of Burbank. They added
[21:22] all of that to their network plus added
[21:24] us into that mix. Um, Allegent has
[21:29] actually retracted a little bit um where
[21:33] Breeze surpassed Allegent in in sorry
[21:37] February, January and February and
[21:40] that's never happened. So, um, March
[21:44] Allegant edged them out by just a
[21:46] thousand or so passengers, but, um, I
[21:49] think mainly it's Breeze and their
[21:50] expansion plans here in Provo and and
[21:53] new routes obviously um, and just
[21:56] popularity.
[21:57] the these airlines put these schedules
[21:59] out three months in advance and if if
[22:01] things are booking they add frequency
[22:03] and so um I think it's a lot of things
[22:06] people are
[22:08] awareness is going up that you can get
[22:10] on an airplane in Provo even though it's
[22:12] still really low um we find about six
[22:15] out of 10 people still don't know that
[22:17] you can get on an airplane in Provo um
[22:20] which is something we're working on but
[22:22] so yeah I think just everything together
[22:24] word of mouth people
[22:26] um once they use the airport and the
[22:29] options are there, why would you not use
[22:32] it? Um so we're getting a lot of re
[22:35] repeat passengers as well.
[22:39] >> Um if I can ask a couple more
[22:41] follow-ups. Uh how much more are we able
[22:44] to grow realistically within our
[22:47] existing footprint? I know we're doing
[22:48] the expansion but from the existing
[22:49] footprint.
[22:50] >> Yeah. So, we did an exercise early on if we were to max out every conceivable
[22:57] option for just for just apron space.
[23:00] Um, really we couldn't get past 12 what
[23:04] 12 gates without going out into the lake
[23:08] and all that sort of stuff. So, I mean
[23:12] forever is a long time, right? So, who
[23:15] knows what happens in the future, but realistically
[23:19] this expansion that we have is just
[23:21] about as big as we can get. Um,
[23:24] >> what I was asking with prior to the
[23:26] expansion on the existing kind of
[23:27] footprint, how much more can we go
[23:29] before we basically say that is at full
[23:30] capacity?
[23:32] >> Oh, we're there.
[23:33] >> We're there effective.
[23:34] >> Yeah. In fact, um when Breeze added
[23:37] Raleigh, I had to tell him, "Sorry, I
[23:40] can't accommodate you on that day
[23:42] because we're already full."
[23:44] >> Um now, that doesn't mean we're full 24
[23:46] hours a day, but we have three really
[23:48] busy times. First thing in the morning,
[23:50] around noon, and then at night. And
[23:53] that's that's similar with every
[23:54] airport. So, right now, we're at full
[23:57] five gate capacity in the morning, at
[23:59] noon, and at night.
[24:01] >> Yeah. Um, so and then so I saw that
[24:05] we're still we're still on a a deficit.
[24:10] Um, so it's like uh and and then we're
[24:14] using that we're using bonds to
[24:16] basically cover the current deficit.
[24:18] What's the plan? Like is the expansion
[24:19] going to hit us on re on revenue and
[24:22] costs? Is that not correct?
[24:24] >> I'm gonna let Jimmy
[24:25] >> right behind you.
[24:28] Jimmy Mcnite. Um we have included in the
[24:32] operating costs that you you saw in the
[24:34] packet. We have some bond payments that
[24:37] are being made from uh grant grant funds
[24:41] from the previous terminal that were
[24:43] loans from UD do. So, it's it's a little
[24:46] deceiving, I think, but I don't know how
[24:49] else to show it because
[24:51] >> it's it's previous year revenue that's
[24:53] paying off an existing debt payment and that comes out this year, maybe 27.
[24:58] So, going forward, that that should
[25:00] change and we'll have we'll have new
[25:02] loans, but it should it should line up
[25:03] better with with the revenues.
[25:07] >> Okay. We just had um a loan that had to
[25:11] be paid off by some mag money that is
[25:14] just taking some time. But we did we
[25:16] received the mag money. So it's just fun
[25:18] balance that's paying that or just a
[25:20] reserve
[25:22] from that revenue that was received
[25:23] that's still just paying off of them.
[25:25] >> Okay, that makes sense.
[25:27] >> When you have so many different sources
[25:29] of revenue from different agencies, the
[25:31] accounting of that gets pretty
[25:33] complicated. And I I really appreciate
[25:36] Jimmy and our finance team that that
[25:38] keeps it all straight. So literally it it is a mess when you're paying off
[25:44] different loans and at different times
[25:47] and and floating cash and and those sort
[25:49] of things. So um but to answer your
[25:51] question as far as the funding for the
[25:54] terminal um we are under construction or nearly under construction of phases
[25:59] two and three. So, um that that it
[26:02] builds the entire north side expansion.
[26:06] That gives us potentially eight total
[26:09] gates. Um after that, also this summer,
[26:13] we're going to uh do some work in the
[26:16] parking lot to pave the parking lot,
[26:18] which is becoming increasingly important
[26:21] just based on on public input.
[26:25] Obviously, gravel is not a great
[26:26] situation. So, um, we're looking to pave
[26:29] the parking lot. That's about as far as
[26:31] the money takes us. And so, for the
[26:34] southside expansion, we still have the
[26:37] county bond um that was
[26:41] approved by the county commission and
[26:42] also by by this council. Um, we don't
[26:47] feel like that bond will get us the
[26:50] entire southside expansion, what we're
[26:52] calling phase four. And so we're working
[26:55] again, we've we've made application to
[26:56] the FAA for more um AIP dollars as well
[27:01] as we're working with Congressman
[27:03] Kennedy and Senator Curtis again for for
[27:05] additional
[27:07] and those earmarks are it used to be
[27:11] that that pot of money that's being used
[27:13] for earmarks came out as a competitive
[27:15] process through the FAA. That's no
[27:18] longer the case. It's all being done
[27:20] through what's called congressionally
[27:21] designated spending. And so if our if
[27:24] our federal partners don't ask for that
[27:27] money, it will go to another airport.
[27:30] It's not taking away from any other
[27:32] program other than airports. And so um
[27:35] fortunately, they've been really good to recognize that um and help us with
[27:39] some funding. So um worst case, we have
[27:42] to pump the brakes on the Southside
[27:44] expansion for a little bit just to let
[27:46] the funding uh picture catch up,
[27:49] >> but we're we're really close. We we
[27:51] think we're probably 10 million short of
[27:54] finishing all all of the expansion
[27:56] that's that's been envisioned. So
[27:59] >> sorry I just want to make sure I
[28:00] understand this last thing. So the thing
[28:02] you're talking about is that what's
[28:03] listed as chargebacks here?
[28:04] >> Other Okay. What are chargebacks?
[28:07] >> So chargebacks are what airport pays for
[28:10] other city services. So for finance.
[28:12] Okay.
[28:12] >> Um pay payroll and everything like that.
[28:15] >> So then and and these are is this
[28:18] budgeted or actuals? That's budgeted for
[28:20] the current.
[28:21] >> Are we on are we how are we on tracking
[28:24] relative to the budget?
[28:25] >> Great. As you know, as Brian mentioned,
[28:27] as long as things continue to go well
[28:29] for the next two and a half months.
[28:30] >> Okay.
[28:32] >> So, effectively, I I'm just trying to
[28:34] get like the big picture. So,
[28:35] effectively, we're operating just above
[28:37] break even.
[28:39] >> Yes.
[28:41] Something that's helping us a lot
[28:44] right now is we have a lot of cash in
[28:46] the bank um that's generating a lot of
[28:48] interest. So those will go towards
[28:50] paying off the project that we're
[28:52] building. But right now we're enjoying
[28:53] some some interest revenue off of that
[28:55] away as well that's helping us in a
[28:57] significant way that shows up in our
[28:59] operating count. But but really that's
[29:01] going back into the project. So um we're
[29:05] trending well. The revenues historically
[29:08] last two years have come in well above
[29:09] budget and we don't see that changing
[29:11] this year at all.
[29:14] The thing I'm trying to understand is so
[29:16] if we're operating on the existing
[29:17] footprint at basically break even and
[29:19] then we're doing uh it sounds like maybe
[29:22] there's a bit more revenue coming in
[29:23] once we do these hanger expansions but
[29:25] effectively full capacity is break even
[29:28] then we're going to do some expansions.
[29:30] My question is is like is there a shared
[29:32] overhead cost that basically will make
[29:34] the expansions net uh accretive to our
[29:38] revenue or is that also going to be
[29:39] basically be at break even once that
[29:41] gets to
[29:42] >> So do you get what I'm saying? Does that
[29:44] make sense?
[29:45] >> It does. Um
[29:49] so our money really comes we we make
[29:52] about $11.75
[29:55] per passenger. And so as passenger goes
[29:58] up, that revenue is going to come up.
[29:59] And the majority of it's parking
[30:01] revenue, right? Rental cars probably the
[30:03] next big one. Um and so all of those
[30:06] things as as capacity increases and
[30:09] those operations increase, then that
[30:12] revenue is going to come up, right? Um
[30:14] to to help accommodate the growth. Right
[30:18] now, from staffing perspective, we're
[30:20] sitting pretty good. Um, I think the
[30:22] next thing that you'll see us come and
[30:25] ask for is potentially another police
[30:27] officer to be stationed at the airport.
[30:30] But operationally, we're in a pretty
[30:31] good spot that even with the the
[30:33] expansion, our firefighters are already
[30:35] staffed to again, we we've got to go a
[30:38] long long way. In fact, I don't even
[30:40] think we would make the next um fire
[30:44] requirement. So, we're already set for
[30:45] fire. Okay.
[30:46] >> Um, police again I think is we we did an
[30:49] evaluation of the overtime cost for
[30:52] police um at least at the time when we
[30:55] looked at it was still less than another
[30:56] full-time employee. So, it didn't make
[30:59] sense to add another full-time officer
[31:02] yet. Um, but the way things are
[31:04] changing, we may have to come back mid
[31:06] year or something like that. We don't
[31:08] know. Um, but we wanted to hold off on
[31:10] that. Um, and so I I again with the
[31:14] increased passenger
[31:16] volume then our revenues are going to
[31:18] come in um to mirror that.
[31:22] >> Thank you,
[31:24] >> Councelor Bogden. All right, just to
[31:27] help catch Jeff up,
[31:31] the airport, how I understand it, wasn't
[31:33] always this good, right? Um, wasn't fire
[31:36] paying some of that overtime like three
[31:38] or four years ago?
[31:40] So, Jimmy, you'll have to remind me the
[31:42] budget year. So, I think this is the
[31:45] third budget year that we have been
[31:48] completely self-sufficient. Prior to
[31:50] that, the general fund was was putting
[31:53] in about $800,000 in subsidy to the
[31:57] operations of the airport. And part of
[31:59] that was fire, obviously. Um, and then
[32:02] again, I think it was three years ago,
[32:04] um, we went ahead and and put all of the
[32:07] public safety costs into the airport,
[32:09] all of those operating costs, eliminated
[32:11] the subsidy from the general fund to
[32:13] where we are operating as the FAA
[32:15] mandates that we are self-sufficient.
[32:18] Um there are some administrative
[32:20] chargebacks that that uh apparently I
[32:25] wasn't aware but but were not included
[32:27] in the airport's budget but we but are
[32:29] moving forward. Um so is legal finance
[32:34] all those char administrative
[32:36] chargebacks are all now in in the
[32:38] airport's budget
[32:39] >> other than that one loan that they will
[32:41] pay back this year is 2027 that's so
[32:46] this year
[32:48] This this year was this year will
[32:50] subsidize them for that loan. Next year
[32:52] they're they're on target to subsidi to
[32:55] just and the FAA requires them. It's if they make an excess of funds, it
[33:01] cannot come back to the general fund. It
[33:02] has to stay there the airport. And so
[33:05] Brian's been able to do some a few
[33:08] things in the last few years that he's
[33:10] never been able to do repairs on his
[33:12] airport before. Right. There was
[33:14] >> there's just a whole bunch of different
[33:16] stuff that he's done. So barely above
[33:19] break even is a lot better than us
[33:21] subsidizing airports.
[33:23] >> And we are government and we're not
[33:24] going to make a whole heck of a lot of
[33:26] money. That's not what we do.
[33:28] >> But we are
[33:30] >> break even is good for this.
[33:32] >> That's actually what the FAA requires,
[33:34] right? If you're making too much money,
[33:35] you're charging too much on your fees.
[33:37] Yeah. If you if you're being subsidized,
[33:39] you're not making enough. And so um so
[33:43] we're in a good spot.
[33:45] Okay,
[33:46] >> little more would be help.
[33:47] >> Councelor Christensen.
[33:49] >> So, uh, half a billion employments this
[33:51] year, uh, go to the full extended phase,
[33:56] uh, that we really maximize everything
[33:58] we can. What kind of employments do you
[34:00] project at full capacity?
[34:03] >> I think
[34:04] um, again,
[34:06] we're pretty close on five gates now.
[34:09] So, you're talking a million for sure.
[34:12] >> Yeah. Um but I think you you even get
[34:15] some some spread in schedule at that
[34:18] point to where I think we're close to a
[34:21] million and a half employments, three
[34:22] million total passengers.
[34:24] >> Yeah. And so I would think with that
[34:26] kind of marginal increment o over the
[34:29] fixed cost, I would think we're actually
[34:31] doing much better than just breaking
[34:33] even
[34:34] >> again at full capacity.
[34:36] >> Sure.
[34:36] >> Um and and you're right, the airport's
[34:38] not here to to make money. it's actually
[34:39] a public service. But in terms of its
[34:42] public funding and the success of this, is remarkable.
[34:46] >> Yeah. Especially based on where we've
[34:48] come from.
[34:48] >> So an important thing to remember is
[34:50] airports are economic drivers, right? So
[34:54] >> you look at the economic impact.
[34:57] Now this is 18 months to 24 months old.
[35:00] It was it was $250 million annually that what's happening at the airport
[35:06] just on the commercial service alone is
[35:09] bringing into our region with with $3.5
[35:12] million direct tax generation. So um
[35:15] again we're unfortunately we can't dump
[35:19] all that revenue into other city
[35:21] services but we are um just as an
[35:24] economic driver.
[35:26] >> It's huge. Yeah. So,
[35:28] >> um I'm curious what when is is the
[35:31] Hawaii non-stop flight still?
[35:34] >> When is Hawaii
[35:35] >> and when is international? Like what are
[35:37] those two things? What are we thinking?
[35:38] >> Yeah. So, Hawaii is when David Neilman
[35:43] came and met with with mayor for the
[35:45] first time. Um that's still on his
[35:47] target, but it's not their priority.
[35:49] There's some certifications to get
[35:51] there. Um, it's a long flight from
[35:54] Provo, uh, which is why there aren't
[35:56] many doing it from Salt Lake direct. Um,
[36:00] the Airbus that Breeze flies can do it.
[36:03] Um, but they they have put that on the
[36:07] back seat as far as their priorities for
[36:09] certifications. They've they've brought
[36:11] international up in their priorities. In
[36:14] fact, they're starting to serve their
[36:16] first international markets out of
[36:20] I want to say I don't know which base um
[36:22] in the east coast. So, they are flying
[36:24] internationally. They would love to fly
[36:26] internationally out of Provo right now.
[36:29] Customs Border Patrol is quite a task.
[36:33] Um one for us to have international
[36:37] facilities, we have to cover the cost of
[36:40] that. So, as an airport that's not a
[36:43] port, like Salt Lake is a port, the
[36:45] airport's responsible for all of the
[36:47] operation costs of Customs Border
[36:49] Patrol. To clear a commercial aircraft
[36:52] in Provo, that's about five to six
[36:55] employees at minimum at 200,000. That's
[37:00] you're you're talking million and a half
[37:01] dollars. Um, how many international
[37:04] flights does it take to make that
[37:06] pencil, right? And so there's some
[37:08] economics related to that that make it
[37:10] difficult. But fortunately, we have we
[37:13] also have a corporate demand for
[37:16] international that we're working to
[37:18] hopefully make happen first. But across
[37:20] the board, CBP is in high demand with
[37:23] what's happening nationally at the
[37:24] borders and everything else. And so um
[37:28] it's going to be an uphill battle to get
[37:30] customs in Provo. We're building the
[37:32] terminal to accommodate at least the the
[37:35] shell space to accommodate an FIS or a
[37:37] federal inspection station. Um but we're
[37:40] not planning on finishing it out until
[37:43] we have um all of the international
[37:46] stuff in line. Um it's coming. It's just
[37:49] not happening maybe as immediately as we
[37:51] thought just because of the national
[37:55] landscape and and just the cost frankly.
[37:58] >> Okay. Thank you for that update.
[38:00] Anything else? We are over time.
[38:02] >> Oh, nice work.
[38:03] >> All right. Thanks so much, Brian.
[38:04] >> Much.
[38:07] >> All right. Um, next, a presentation
[38:11] regarding the 2027 budget for power
[38:14] presented by Charlie Little, our
[38:15] management analyst.
[38:16] >> And then Tan Smallcom, our interimm
[38:19] director.
[38:21] >> We tag chain.
[38:23] >> That's right.
[38:25] Like she said, I'm Tad Small. I'm the
[38:27] interim director of energy, also the
[38:29] full-time systems operations manager.
[38:32] Uh, and I'll be presenting the budget
[38:34] drivers for energy. And I'll turn the
[38:36] time over to Charlie Little, who's our
[38:38] business manager, who will be presenting
[38:40] the budget financials. And I'd like to
[38:42] thank uh Becky Hunt, our PIO and key
[38:45] accounts manager, and Jenna Lee, our
[38:48] executive office assistant, who will be
[38:49] helping us with the entertainment.
[38:54] Now let's look at it.
[38:59] All right. Why do we need money? We need
[39:02] money to be the most reliable provider
[39:04] of power in the country while providing
[39:07] a safe environment for employees and to
[39:10] be proactive stewards of the environment
[39:13] while maintaining our fiscal
[39:14] responsibility to the citizens of
[39:16] Pville.
[39:20] General budget questions. Basically, no.
[39:23] The only thing that we are pointing out
[39:26] is that we're re recommending some fee
[39:29] and rate increases to align with the
[39:32] costs of those fees and cost of service.
[39:38] Uh how do we measure uh how we're doing
[39:40] on the goals that you presented? Well,
[39:44] how safe are we? Well, this this fiscal
[39:46] year haven't had injuries or vehicle
[39:49] accidents, which is obviously wonderful.
[39:52] Um,
[39:54] a little bit on the fiscally
[39:56] responsible. Clearly, that will be
[39:58] covered a lot in what Charlie presents.
[40:00] But today's cash on hand, we're shooting
[40:02] for 180. We have 189. You can, and which
[40:06] represents our rate stabilization fund,
[40:08] which is healthy, and our fund balance
[40:10] currently healthy. And uh, everything
[40:12] looks good there.
[40:14] um
[40:16] provide citizens with sustainable. So we
[40:18] talked about sustainability. Um we have
[40:20] a green exchange, rooftop solar, shared
[40:23] solar, uh new trees. Hopefully you're
[40:26] all familiar with those programs that
[40:27] Provo offers. Uh Becky runs a lot a lot
[40:30] of those. She's with us here today. And
[40:33] finally, the reliable the reliability
[40:36] measurements are down at the bottom. Um
[40:39] you see at on Sadi that's the outer
[40:43] minutes average per customer in Provo.
[40:46] Uh we experienced two uh that was the
[40:50] most recent and uh the national average
[40:53] is closer to 12th puts us in about the
[40:56] 20 25th we're in the 75th percentile. Uh
[40:59] so we're up towards the top. We're not at the top which is our goal
[41:03] but we're working on it and we have
[41:04] we're spending more money to get there.
[41:08] uh and the other uh indices the outages
[41:12] per customer. You can see that the
[41:13] numbers are extremely favorable and
[41:16] healthy and indicate that we're having
[41:18] success as an energy department. Um
[41:22] some of the some of the main
[41:24] accomplishments uh we're building
[41:26] rebuilding the Gillespie substation
[41:30] uh and that's that's undergoing and
[41:32] we've started the Draper substation. Um,
[41:34] we've overhauled our our PO PO tracking
[41:37] procedures to tie Cayanta with uh our
[41:41] Millsoft uh software and that's
[41:44] completed. And then we have a new
[41:47] five-year strategic plan uh that we've
[41:50] got with the ontracking software now.
[41:52] So, it comes up every month whether you
[41:54] remember it or not. And and Charlie's
[41:57] been running that for us uh this last
[41:59] year.
[42:02] We've spent over $70 million in capital
[42:05] projects over the last 10 years
[42:09] and those are that's necessary to keep
[42:10] our system healthy. Um we what we do is
[42:14] a five-year budget. So we look at the
[42:16] plans five years out. I can tell you the
[42:17] Gillespie sub because of the difficulty
[42:20] in getting equipment used to take less
[42:21] than a year to do all that. I ordered
[42:24] the transformers for that project in
[42:25] 2022. Uh some of my grandkids weren't
[42:28] born yet. Um,
[42:30] >> and so, right, it's it's a it's
[42:32] extended. It's made a much more
[42:34] challenging uh planning, but uh it's
[42:37] under it's underway. If you want to get
[42:39] up to the north of Canyon Road there,
[42:41] it's it's a beautiful site. It's a lot
[42:42] of dirt with a couple of transformers
[42:44] and some concrete, but uh it's going to
[42:46] be even more beautiful um by the end of
[42:49] the year.
[42:50] >> That energy pen called beautiful.
[42:53] >> Well, when I drive my kids around
[42:56] Oh, look at that. Right. Okay.
[42:59] And then just to go over the Gillespie
[43:01] project, you can see where it is. It's
[43:03] up at the north end of Canyon Road.
[43:06] Yeah, more fun on TV. Uh but basically
[43:10] it included in increasing the capacity.
[43:12] So we replaced two for 1964, which is
[43:16] actually older than some of you, not
[43:18] just my grandkids. It's not it's not as
[43:20] it's actually my age, but um that's pretty old for transformers.
[43:25] We're replacing the 235 MBA transformers
[43:27] up there with 270s. So, we've
[43:30] drastically increased the capacity and they're expected to live 30 to 50
[43:35] years, but we have a good substation
[43:37] team who who protects it, right? And so,
[43:40] all of this contributes to the
[43:42] reliability of supplying power to Provo.
[43:45] Uh, and then we also put a distribution
[43:47] transformer up there that we didn't have
[43:48] before, 138 to 12 KB to help service the
[43:51] loads up here because you can see we got
[43:53] one transformer on this side of town.
[43:56] When we have to take one substation,
[43:58] when that substation goes down, it's pretty challenging. We can do it,
[44:02] but it's very challenging to try to get
[44:03] the power up. So, we've built we've
[44:05] added a transformer here, distribution.
[44:07] Sorry about the arrow
[44:09] to come to help fill that in back down
[44:13] south. All right,
[44:16] >> quick question.
[44:16] >> Yeah.
[44:17] >> So, sorry.
[44:18] >> Um, this
[44:19] >> did you work with parks on the GPS
[44:22] substation
[44:23] >> because in their presentation they
[44:24] mentioned excavating and grading for
[44:27] that substation?
[44:28] >> Yes.
[44:28] >> So, how did that partnership work?
[44:30] >> Yeah, park parks was fantastic for us.
[44:32] First, we went and talked to them before
[44:34] the project and said, "Hey, we need if
[44:36] you want to pull an arrow, you could,
[44:37] but we need part of your parking lot on
[44:39] the Indian trail head up there, Indian
[44:41] Road trail head." and they said, "Sure,
[44:43] you can have it." And then we extended
[44:44] it. We extended it a little bit to the
[44:46] north so they wouldn't lose too much
[44:48] parking. And so, so they allowed us to
[44:51] do that and worked with us on that. So,
[44:52] that was great. And then we had a lot of
[44:54] dirt to work with it to move. It's about
[44:57] a mountain right right there. And so, we actually talked with public works and
[45:01] parks and coordinated that because there
[45:03] was other projects going on and parks
[45:07] came in and moved the vast majority of
[45:09] that dirt for us. And that was a
[45:12] tremendous savings for for the city
[45:15] because we would had to go out and pay
[45:16] exorbitant prices to contractors
[45:19] otherwise. So so it was a we work with
[45:22] them. We work closely with them and they
[45:24] were they were g they were the givers in
[45:26] this project and we we really appreciate
[45:28] it.
[45:32] » All right. Now I'll turn the time over
[45:34] to Charlie who will talk us out some
[45:37] money.
[45:41] Thank you. We'll go over revenues are um
[45:44] projected revenues are expected
[45:46] expenditures,
[45:48] what that means for a surplus or deficit
[45:50] for the department and then the rate
[45:52] analysis to help prevent uh us running a
[45:54] deficit.
[45:57] uh based on growth over the past several
[46:00] years and implementing the rate increase
[46:03] that we are proposing in this budget
[46:05] cycle, we anticipate having three and a
[46:08] half million dollars more revenue this
[46:09] year than last year. Um if you'll
[46:13] remember last year we had some pretty
[46:15] big cost drivers hit us that
[46:17] necessitated a rate increase. Rather
[46:20] than do a big rate increase in one year,
[46:22] we decided to split it out over two
[46:24] years to try to make up for those
[46:26] increase increases in expenditures. Um,
[46:30] so although that looks like a big
[46:32] difference, it is making up for some
[46:35] pretty hefty increases from last year.
[46:38] Here you can see our revenues. Uh, the
[46:41] vast majority come from commercial and
[46:42] residential sales.
[46:44] That 12% industrial service sales,
[46:47] that's BYU, all by themselves. And then
[46:49] other operating revenue, that is all of
[46:51] our fees
[46:53] uh that we collect, our interest income,
[46:55] things like that that uh go toward our
[46:57] bottom line. But our main drivers are
[46:59] our residential and commercial sales.
[47:02] Next, it's time for your favorite time
[47:05] of the year
[47:07] where we show you how
[47:09] >> we love
[47:11] where we show you how our uh expenses
[47:13] break down by category for the
[47:15] department.
[47:16] So
[47:18] we have not submitted any supplemental
[47:20] >> approve this to
[47:22] >> they're trying to be more healthy health
[47:24] conscious.
[47:26] So
[47:29] we are not submitting any supplemental
[47:31] requests to increase our operating
[47:33] revenue. We do anticipate growth
[47:36] uh with raises and promotions uh for our
[47:40] uh salary costs and also we haven't
[47:43] received our final chargeback numbers
[47:45] but we anticipate growth within our our
[47:47] chargebacks. Um so we expect at least
[47:51] $845,000
[47:53] increase. Um
[47:55] >> so the oranges represented
[47:57] let's
[47:58] >> go to here.
[47:58] >> Okay. So the oranges represent what we
[48:01] pay to UMPA, UMPA, our joint action
[48:03] agency that we buy all of our power
[48:05] through. They represent 65% of our
[48:07] operating costs. We don't have control
[48:11] over those rates. We don't have control
[48:12] over that number, but we are really good
[48:15] partners with UMPA and they try to give
[48:18] us a heads up on stuff
[48:19] >> because they eat almond joys. And then
[48:21] 14% the Almond Joys, those are our
[48:24] personnel costs which account for 14% of
[48:28] our overall operating budget. Over the
[48:30] past several years, we've gone from over
[48:32] 100 employees down to 69. And that's
[48:35] taking on free employees from parks as
[48:37] part of our field cruise last year um
[48:41] for our tree trimming. We take we took
[48:43] over operating all the tree trimming
[48:45] throughout the city. So we run a pretty
[48:46] lean operation. We also have our 12 and
[48:51] a half% transfer that accounts for about
[48:54] 12% of our expenditures and a 5% 5% of
[48:59] our expenses. Where are you right now?
[49:01] Are you at You're You're at the
[49:04] transfer. Okay, good. We're at the
[49:07] All right. Now, chargebacks account for
[49:09] about 5% of our operating cost. Oranges
[49:13] are tricky.
[49:18] and
[49:23] » it'll be fun. And then um
[49:26] >> 2% uh that's the amount that we have
[49:28] control over. That's 2% of our operating
[49:31] is our operating costs. Uh what the
[49:33] departments need to function and then 2%
[49:36] is also our um bonding costs. So our
[49:41] loan and the interest on top of that. So
[49:45] you guys got that to work.
[49:51] » We have kept our operating costs flat
[49:54] this year. And um
[49:59] one thing I also want to point out going
[50:01] back to this, if you'll look right here
[50:04] under expenses, our power costs, we kept
[50:07] this flat from last year, but that is
[50:09] not what UMPA gave us in their budget.
[50:12] The market is currently changing for how
[50:15] power sales are handled in our region.
[50:19] It used to be that UNMPA could contract
[50:21] a year ahead of time uh for the sales
[50:24] that they were going to put off on the
[50:25] market. Excess power that we're not
[50:27] going to use in our little area that
[50:28] they can sell to on the market. And
[50:31] that's given us a good kickback at the
[50:33] beginning of every year for the past
[50:34] couple of years. Unfortunately, the way
[50:36] the market works now is that there's no
[50:39] long-term planning. Everything is
[50:41] happening either day before, hour
[50:44] before, 15 or five minutes before. It's
[50:47] a very fast market and they have no
[50:51] empirical data for what that's going to
[50:53] look like. So, they decided not to
[50:56] factor um market sales into their
[50:59] budget, which made it look like our
[51:01] budget was going to go up by 13 million.
[51:04] We don't think that's the case. They are
[51:06] going to be able to like sell off power.
[51:08] They just don't know how much. And I
[51:09] didn't want to build that into our rates
[51:12] or build it into our projections because
[51:15] it's artificially inflated and we'll
[51:18] really need a year of data before we can
[51:21] get back on track of building that back
[51:22] into the UMPA budget. That those oranges
[51:25] right there. If that were to go up 13
[51:27] million, it would basically fill up the
[51:29] entire base.
[51:32] So, we're leaving that flat. We do have
[51:34] our rate stabilization fund in case
[51:37] somehow they don't sell any power. very
[51:39] unlikely. Um we can dip into that to
[51:41] prevent huge increases on our customers,
[51:44] but that is something we're keeping in
[51:46] mind and looking at this year.
[51:49] So overall, we're looking at a $3.3
[51:52] million budget surplus between our
[51:54] estimated revenues and expenditures.
[51:57] And that may seem like a lot, but
[52:00] uh looking at last year, we only had a
[52:03] projected 663,
[52:05] which did not cover any much any of our
[52:08] capital costs for this current year that
[52:10] we're in. We're trying to make up for
[52:12] that again over the two-year plan. We're
[52:14] covering 2% revenue last year, well,
[52:16] this current year and 2% revenue of next
[52:18] year.
[52:20] >> So, just so I'm Yes.
[52:21] >> Just so I'm clear. So
[52:22] >> Mhm.
[52:23] >> this 3.3
[52:24] >> Mhm.
[52:25] >> this is the second year.
[52:27] >> Yes.
[52:27] >> So does that are we then even with I'm
[52:30] not sure how much the the uh the hole in
[52:33] the ground was that we're filling.
[52:34] >> Yeah. So um UMKA raised our rates by
[52:37] about four and a half% and then there
[52:39] was the increase to the general fund
[52:40] which basically uh increased our
[52:43] expenses by about 4 million.
[52:46] >> So rather than try to recoup all of that
[52:49] 4 million last year we're splitting it
[52:50] out over two years. We recouped 2
[52:52] million last year by a rate increase and
[52:54] then about 2 million this year through a
[52:56] rate increase.
[52:57] >> Thank you.
[52:57] >> Um
[53:00] again about 12 and a half% goes back to
[53:04] the general fund and our chargebacks
[53:07] help pay for the other uh departments in
[53:09] the city. And we're happy to do that
[53:12] because the city does provide us some
[53:14] really great services and it means that
[53:17] we could keep our personnel costs low
[53:19] because the city takes care of so much
[53:21] of the administrative functioning of the
[53:23] department. So
[53:26] we're um happy to add that in. We do
[53:29] have to factor it into the rates. So
[53:32] what's the rate analysis?
[53:35] Like I said, we're responding to rate
[53:37] increases from last year. Um if you look
[53:41] at this column, this is if we did not
[53:43] raise rates this year, what we would be
[53:45] looking like and this is if we do the
[53:48] rate increase proposed.
[53:52] In both columns, you'll see we have an
[53:54] operating surplus, but based on our CIP
[53:56] new budget spending that we budgeted
[53:59] back in January,
[54:01] we cannot cover those costs uh based on
[54:03] our operating revenue if we do not raise
[54:05] rates. And we are technically at
[54:07] basically a break even of our capital
[54:10] expenditures versus our operating
[54:12] revenue if we do the rate increase.
[54:15] So, how we've designed the rate
[54:16] increase, most of the 2 million that was
[54:18] recouped for this fiscal year came from
[54:21] the residential class. And based on
[54:24] feedback from the administration, we've
[54:25] decided to recover most well all of the
[54:30] um revenue increase from our commercial
[54:33] and industrial classes in the next rate
[54:36] plan. Oh, sorry. I got a little bit
[54:38] ahead of myself. This is looking at um
[54:42] this is the revenue projections I gave
[54:44] to our bonding agencies.
[54:47] Uh so this is based on our caffer.
[54:51] Uh the history is based on our caffer
[54:53] and then the revenue projections are
[54:55] based off of that.
[54:58] Because of the increases last year, we
[55:01] still saw a $2 million shortfall, which
[55:05] again we're going to try to make up in
[55:06] the next fiscal year. So if we are
[55:09] allowed to do our rate increase, we will
[55:12] have a surplus and our our change in net
[55:14] position. Um and we will continue if we
[55:17] do moderate increases down the line, we
[55:20] will continue to have a positive change
[55:23] in net position. However,
[55:26] if we do not do a rate increase this
[55:29] year, we will have a negative change in
[55:32] net position of about 1.2 million. And
[55:34] then even if we did a 2% rate increase,
[55:37] the three following years, we never
[55:38] catch up. We stay in the red. So it is
[55:42] imperative that we keep up with our
[55:43] costs to make sure that we are operating
[55:46] in a financially
[55:48] responsible way.
[55:51] >> Charlie,
[55:51] >> yes.
[55:52] >> So we're assuming that we'll need to do
[55:54] a 2% increase in the next three
[55:57] subsequent years.
[55:58] >> If costs continue to increase as we're
[56:01] seeing them, we will. We I will reassess
[56:03] every year just to make sure I'm not
[56:05] doing them just to do them. Um but it is
[56:09] possible. We've had I'll show a graph
[56:12] later, but basically since co all of our
[56:15] costs are going insane. Um but we're
[56:19] really hoping we won't have to have
[56:21] yearover-year 2% increases, but based on
[56:24] current projections, it might happen.
[56:27] Would you anticipate that to be
[56:30] distributed evenly for all customers or
[56:33] like this year focus on one class of
[56:35] customers?
[56:36] >> Um, it depends on the results of our
[56:39] cost of service study I'll be doing with
[56:40] Dave Berg. He's our consultant works
[56:42] with PA. Um, we'll be having our first
[56:45] meeting this week and he'll let us know
[56:48] between the classes, are we charging one
[56:51] class unfairly versus another class? and
[56:54] I would design future rate changes or
[56:56] rate increases based on that analysis.
[57:00] Um,
[57:03] overall I like to spread things out
[57:05] evenly among the customer classes just
[57:07] so that we're not hitting one super hard
[57:09] if we don't have to. Um, but again,
[57:12] it'll it'll be based on his
[57:13] recommendations of the cost of service
[57:15] study.
[57:15] >> Thank you.
[57:20] » So this these are our proposed rate
[57:23] increases.
[57:24] there no change to the residential
[57:27] class. Uh small commercial, I'm
[57:30] proposing a 4% rate increase. You can
[57:33] see the average. So based on our average
[57:35] small commercial usage, that looks like
[57:38] an increase of about $20 per month.
[57:41] For large commercial, we have about 20
[57:43] of these customers. These are the IHC's
[57:46] of the world, the Mega Diamonds. These
[57:48] are our very large customers you would
[57:51] think are industrial, but they don't own
[57:53] their own substations, so they are not.
[57:55] Um, we anticipate their average bills
[57:58] going up by about 1,700 per month, and
[58:00] that's a 7% increase. Industrial, this
[58:04] is just BYU. They have been given heads
[58:07] up from multiple
[58:09] areas that this is coming down the pike,
[58:11] but we are proposing a 10% increase on
[58:14] BYU, which would increase their monthly
[58:17] bill by about 71,000.
[58:19] And now, I know this seems like a lot
[58:22] perspective,
[58:23] >> but then I'm going to show you how we
[58:26] compare to other uh cities and how we
[58:31] compare historically. So that bottom
[58:33] yellow line, these are our rate
[58:34] increases over the past 20 years. Prior
[58:37] to 2011, we had a decadesl long policy
[58:40] of neverinccreasing rates. And this put
[58:43] us in a really dire financial situation
[58:46] when the market crashed in 2008.
[58:49] We were depleting our fund balance at an
[58:52] unsustainable rate. So we had to do a
[58:56] huge nearly 20% jump within one year. We
[58:59] never want to find ourselves in that
[59:00] position again. it's a shock to the
[59:01] customers and we don't want to bring the
[59:03] pitchforks.
[59:05] So they did moderate increases after
[59:08] that to 2016 and then based on a cost of
[59:11] service study we did a rate
[59:13] restructuring with no revenue increases
[59:15] over the next several years and that was
[59:17] just shifting how the rates were
[59:21] designed but it didn't actually increase
[59:23] our revenue. Then uh COVID happens and
[59:27] suddenly everything is much more
[59:28] expensive and our restructuring is not
[59:31] sufficient. So we institute policy back
[59:34] in 2022
[59:36] to do moderate increases to make sure
[59:38] we're keeping up with costs. But even
[59:41] still in 2025 over the past 20 years our
[59:44] rates have only gone up 30%.
[59:47] uh this black middle line that's the
[59:49] consumer price index has gone up 70%
[59:53] and the top gray line that is that are
[59:56] national power rates they've gone up by
[59:59] 110%.
[1:00:01] So, we are well below market trends,
[1:00:06] but inflation is real. Price increases
[1:00:09] are real. It's not sustainable to have a
[1:00:11] no rate increase policy.
[1:00:14] Here is how we compare with our
[1:00:16] residential customers through all of our
[1:00:18] comparable cities. And this is Rocky
[1:00:20] Mountain Power right here. Like I said,
[1:00:23] no increases to the residential
[1:00:24] customers. Uh we are the second cheapest
[1:00:27] residential of all of our comparators,
[1:00:30] which may be or use Rocky Mountain.
[1:00:32] >> Or uses Rocky Mountain.
[1:00:35] >> Um,
[1:00:36] was there another question?
[1:00:38] >> Say, whoops.
[1:00:39] >> Yeah.
[1:00:41] >> Um, this is actually the fact that we
[1:00:44] are the second cheapest is an indicator
[1:00:46] that we may be too conservative in our
[1:00:47] rate increases. I don't want to use this
[1:00:49] as like saying we need to pump up our
[1:00:51] rates, but it might be an indicator that
[1:00:54] we are lagging the market.
[1:00:57] Next is our small commercial comparison.
[1:01:00] Again, we used to be the cheapest. If we
[1:01:02] do the rate increase, I am proposing Oh,
[1:01:05] we would be the second cheapest.
[1:01:06] >> I'm just going to say in the previous
[1:01:09] slide, we're right between two of the
[1:01:11] people that we still buy power from
[1:01:14] with.
[1:01:14] >> Yeah.
[1:01:15] >> So, to me, it doesn't seem like we're
[1:01:18] too conservative if everybody else who's
[1:01:20] buying from AA is well, as low as we
[1:01:22] are. It just shows that we're really
[1:01:24] good with
[1:01:25] >> anda's really good at doing what they
[1:01:27] do.
[1:01:28] >> Yes. Like
[1:01:29] >> because if I saw Lean up here,
[1:01:33] >> Nephi clear up here, but we're in
[1:01:34] between Nephi and Spanish.
[1:01:36] >> Yes.
[1:01:37] >> And right here there's there's Nephi,
[1:01:39] Lehi, Lean, St. George, all all
[1:01:43] municipal power agencies, right?
[1:01:44] Springville, Spanish, and we're all fun
[1:01:48] together. And then there's Rocky
[1:01:50] Mountain, this big commoder.
[1:01:53] >> Exactly. We're much cheaper than the um
[1:01:58] investorowned utility option in the
[1:02:00] state and we are much cheaper than most
[1:02:04] u cities because UMPA has been able to
[1:02:06] do so well selling their power on the
[1:02:09] market. Um, and we just put good vibes
[1:02:14] out there that they can do that in this
[1:02:15] new this new uh environment.
[1:02:19] Uh,
[1:02:21] again, uh, small commercial customers
[1:02:23] with this rate increase, we would go
[1:02:24] from
[1:02:25] >> Yes, sir.
[1:02:26] >> Just want to double click on what you
[1:02:28] just said.
[1:02:29] >> Um, it sounded to me like it's not like
[1:02:32] there isn't demand, it's just
[1:02:34] unpredictable and forecastable demand.
[1:02:36] >> Yes. Exactly.
[1:02:37] >> Right. So it's not a matter can we sell,
[1:02:39] it's what margin can we sell it at.
[1:02:41] >> Yes. Exactly.
[1:02:42] >> Okay.
[1:02:42] >> And so they know they will make market
[1:02:44] sales, but they didn't want to put fake
[1:02:48] no data backed projections into their
[1:02:51] budget. And so I'm keeping us flat uh in
[1:02:54] response to that as well. I'm sure that
[1:02:57] they will be able to make market sales.
[1:03:01] Okay. So our large commercial
[1:03:03] comparison, we are in the bottom third
[1:03:05] again by Spanish Fork and Nephi and
[1:03:07] Salem. These are all UNMPA cities. Uh
[1:03:11] our position does not change and it is a
[1:03:14] significant jump up to our next highest
[1:03:18] comparator bountiful for large
[1:03:20] commercial rates
[1:03:24] and industrial rates. We would go from
[1:03:27] the cheapest to the second cheapest very close with Spanish Fork. And I will
[1:03:33] say we currently charge BYU one penny
[1:03:36] more per kilowatt hour than UMPA charges
[1:03:40] us in the overall dollars per kilowatt
[1:03:43] hour scheme of things. We're basically
[1:03:45] providing them power at cost. They are
[1:03:48] our biggest customer. We want to treat
[1:03:51] them well, but they also need to cover
[1:03:52] their cost of service.
[1:03:56] Uh so that is our rate comparison and
[1:03:58] then the final these are are the fees
[1:04:02] that we anticipate increasing in our um
[1:04:06] consolidated fee schedule. The biggest
[1:04:08] jump is from our forestry department
[1:04:11] with banner installation and removal. Uh
[1:04:14] it's a threeperson crew. It takes
[1:04:19] uh almost an hour to install, almost an
[1:04:22] hour hour to remove, and we're not
[1:04:24] charging. This is 250 still isn't even
[1:04:27] at cost. Um but we do feel that it's
[1:04:30] kept artificially low. If you don't want
[1:04:33] us to increase it and continue to cover
[1:04:35] the deficit, that's fine. But um one
[1:04:38] thing we definitely are asking for an
[1:04:40] increase is the Parkway Strip Tree fee.
[1:04:42] I said it, I trip over it every time I
[1:04:44] practice it.
[1:04:46] um uh 255 doesn't even cover the costs
[1:04:51] of the tree, let alone the cost of the
[1:04:54] labor associated with planting the trees
[1:04:56] um for the new developments.
[1:04:58] So, uh I have a a cost breakdown if you
[1:05:01] want to see it. Our forester Chaz did a
[1:05:04] great job explaining why he's asking for
[1:05:06] this uh increase, but we are proposing
[1:05:09] $510 per tree. Those are the biggest
[1:05:12] jumps um as far as our fees are
[1:05:15] concerned.
[1:05:17] Yes.
[1:05:18] >> How often do we have banners installed
[1:05:20] and what kind of banners are installed?
[1:05:24] >> Um there are the big banners like across
[1:05:26] 500 West,
[1:05:27] >> right?
[1:05:28] >> I I think we do a couple a month. It
[1:05:30] depends on how Oh, Jenna.
[1:05:32] >> So I I banners.
[1:05:35] >> Thank you, Jenn.
[1:05:38] So, I handle the banners when they come
[1:05:40] in and we do a few with BYU athletics
[1:05:42] every year um in the fall. So, I think
[1:05:46] it's one or two banners for all of
[1:05:48] football season and they're great to
[1:05:50] work with. They know what they're doing.
[1:05:51] Um there's a but they don't pay a fee.
[1:05:54] Thank you. Um, and then we have maybe
[1:05:58] five others who choose to use banners
[1:06:01] and that's scattered throughout the
[1:06:02] year, but other than that, there aren't
[1:06:04] really anyone using banners anymore.
[1:06:06] >> So, you don't do the light pole banners
[1:06:08] just across the street.
[1:06:09] >> Correct.
[1:06:12] >> Do they really
[1:06:13] >> I mean, if we're not even covering cost
[1:06:16] for those, I know there's not that many.
[1:06:19] Why are we even still offering the
[1:06:22] service? Is it even worth it?
[1:06:26] That is maybe a a city decision, a
[1:06:30] council decision. Um,
[1:06:33] we we're happy to continue to provide
[1:06:35] the service for the city. Um,
[1:06:38] >> and we're happy to stop
[1:06:40] >> to stop as well
[1:06:41] >> if the city the city doesn't deem it
[1:06:44] valuable anymore.
[1:06:46] >> Yes. Um just dumb questions here like is
[1:06:49] there a reason why power does that
[1:06:51] because of like are you have to are you
[1:06:53] the only people who do it safely?
[1:06:54] >> It's because we have the bucket trucks.
[1:06:55] Yeah.
[1:06:56] >> Oh yeah you have the bucket trucks.
[1:06:57] Okay. And similarly for the parkway
[1:06:58] strip fee. Why are you all the one doing
[1:07:01] that?
[1:07:01] >> Because we oversee all forestry.
[1:07:04] >> Okay. So forestry center.
[1:07:06] >> Yeah.
[1:07:08] >> If I could one one comment about the
[1:07:10] banner installation. Those are not
[1:07:13] um
[1:07:15] el eligible just for anybody to put up a
[1:07:17] banner and attend they want. It's
[1:07:19] essentially we've reserved it for first
[1:07:20] amendment reasons. We've reserved it for
[1:07:23] community events. And so I guess you
[1:07:26] could think of it as at least in the
[1:07:28] past the idea has been these are events
[1:07:30] that the city itself actually also wants
[1:07:32] to foster awareness of. So, it's not
[1:07:37] just a service where we're just saying
[1:07:39] if you want to put up a banner, we're
[1:07:41] exchanging money. It's when the city is
[1:07:43] also not I don't want to say
[1:07:45] co-sponsoring,
[1:07:47] but something that we also think is is
[1:07:49] important is the only reason they're
[1:07:50] going up in the first place.
[1:07:51] >> Well,
[1:07:52] >> which isn't to say you can't get rid of
[1:07:53] them. I just wanted to add that piece
[1:07:54] onto it.
[1:07:55] >> I mean, there's only five of them. We're
[1:07:57] not even covering costs. And advertising
[1:08:00] nowadays is so different than it was
[1:08:02] back in the 1970s. And I can't even tell
[1:08:05] you, and I drive up Fifth West every
[1:08:07] single day, multiple times. I can't even
[1:08:09] tell you the last time I saw a banner
[1:08:11] across there, nor nor what it was,
[1:08:13] right? Um
[1:08:17] I I just don't obviously the five people
[1:08:20] that do I wonder if BYU just does it out
[1:08:22] of tradition, honestly, and it's free.
[1:08:26] >> I would have to check. We have an we
[1:08:28] have an agreement with BYU that deals
[1:08:30] with some intersections that we paint
[1:08:33] and the banners on the flag poles. I
[1:08:35] can't remember if that agreement covers
[1:08:38] the banners on Fifth West as well. We'd
[1:08:40] have to look at that. We might be
[1:08:41] obligated to keep doing those based on
[1:08:45] this agreement. Um but I'd have to look.
[1:08:48] >> I'm I'm less inclined to say let's take
[1:08:50] it away. More inclined to say let's have
[1:08:52] them cover the costs.
[1:08:54] um doesn't seem like that big of a deal
[1:08:58] and it certainly is I think part of the
[1:08:59] tradition and so forth. So let's just
[1:09:01] have him cover the cost.
[1:09:04] >> Would that be a problem to have them
[1:09:05] cover the cost in the contract? Brian,
[1:09:08] >> I don't think so. I'll have to check.
[1:09:10] Well, see the the deal with the BYU
[1:09:12] agreement is that at least with regard
[1:09:14] to the streets, they were providing some
[1:09:15] of the materials and so that's where we
[1:09:17] were getting a benefit from it. So I'll
[1:09:19] just have to check the agreement and see
[1:09:20] what it says as far as the BYU. What is
[1:09:23] the cost of that completely if 250 is
[1:09:26] not even covering costs?
[1:09:28] >> Uh two hours at $70 per person for a
[1:09:34] threeperson crew. Yeah, it's close. It's
[1:09:37] like closer to 300, but
[1:09:40] >> be closer to 300.
[1:09:42] >> That's the equipment.
[1:09:44] >> Correct. That's just for the labor, not
[1:09:46] including the built-in costs of
[1:09:48] maintaining the vehicles that are used.
[1:09:50] How about we move it higher and then I
[1:09:52] think that would discourage it from
[1:09:53] coming
[1:09:55] if we don't want to do away with it. If
[1:09:57] we move it higher to cover costs, that
[1:10:01] might discourage people from actually
[1:10:02] doing it at all and just saying, "Hey,
[1:10:04] advertising on Facebook is cheaper."
[1:10:10] So, this was a an incremental increase.
[1:10:13] If you would like to see the full cost
[1:10:15] of what it takes to um install and
[1:10:17] remove the banners, I can provide that
[1:10:19] analysis for you.
[1:10:21] >> Five a year. We're subsidizing it to the
[1:10:23] 250 bucks. So
[1:10:24] >> yeah.
[1:10:26] >> No, it's a community thing.
[1:10:29] >> Yeah.
[1:10:31] >> Don't really care.
[1:10:35] >> If it was like 100 per year, then
[1:10:39] » do we have any questions?
[1:10:42] How we doing on time?
[1:10:45] >> We're over by like 11 minutes.
[1:10:50] >> But if you have you have questions, go
[1:10:52] ahead.
[1:10:53] >> Yeah, I had just a couple. So you
[1:10:55] mentioned increasing costs. Um, you
[1:10:58] know, based on what the numbers you
[1:10:59] provided like by far and away your
[1:11:01] biggest costs are power purchases for
[1:11:03] Ma. It's like 60% or something.
[1:11:05] >> Yes.
[1:11:05] >> And so is that the main driver? That is
[1:11:08] the main driver of this most recent
[1:11:10] increase. Also trying to recover our
[1:11:13] fund balance because we are spending
[1:11:15] down quite a bit of fund balance to
[1:11:17] cover the glass substation and um
[1:11:20] >> a huge thing is that our equipment is
[1:11:22] like crazy increased in pricing. So it's
[1:11:24] hurt the fund balance a ton.
[1:11:26] >> Yes. So, we're looking to do some fund
[1:11:28] balance recovery within the rate
[1:11:30] increases as well.
[1:11:31] >> And it's just all gone upside so much.
[1:11:34] And and the time amount, the turnaround
[1:11:38] time from the time you order it till the
[1:11:39] time you get here is years,
[1:11:42] literally years. So, it's just it's a
[1:11:44] whole thing.
[1:11:45] >> And they build um what do they call uh
[1:11:48] incre they build increases.
[1:11:50] >> They put incremental increases into the
[1:11:52] contract. So, and I bought these
[1:11:54] transformers for 1.5 million. By the
[1:11:56] time I paid for them, they added a 10%.
[1:12:02] » Do we like does UMPA give like a
[1:12:06] projected rate schedule? So, we plan
[1:12:08] against that. And so, this recent 4%
[1:12:10] increase we're like is not going to
[1:12:12] continue unforeseen.
[1:12:15] >> Um, we don't anticipate it going up by
[1:12:17] that much every year. Their average over
[1:12:20] the past
[1:12:22] five years is about 2% per year. So the
[1:12:25] 4 percent was a bigger jump than normal.
[1:12:28] >> Um but yeah, we'll have to see what they
[1:12:30] do with the market sales this year to
[1:12:31] see
[1:12:33] where we go from here.
[1:12:34] >> They only provide the rates in March,
[1:12:37] the end of March. They provide their
[1:12:39] budget for
[1:12:41] >> we get rates at the conference that we
[1:12:44] went to in March. Yeah.
[1:12:49] » Okay. Any other questions?
[1:12:51] >> No.
[1:12:52] >> Thanks so much.
[1:12:52] >> Nice work.
[1:12:53] >> Thank you.
[1:12:54] >> Yeah. Thank you.
[1:12:56] >> All right. We have a five minute break.
[1:12:59] So, we'll let's come back at 1:20.
[1:13:03] >> Enjoy your
[1:13:06] tangerines.
[1:13:07] >> Recording stopped.
[1:13:15] I want one of those oranges.
[1:13:16] >> Recording in progress.
[1:13:20] >> All right. Next, we're going to have a
[1:13:22] presentation regard the 2027 budget of
[1:13:24] the library presented by our library
[1:13:26] director, Carla Gordon.
[1:13:33] » Yeah. Fish through that middle.
[1:13:50] Okay,
[1:13:53] >> here we are.
[1:13:53] >> Go ahead.
[1:13:55] >> Here I am. J, congratulations on being
[1:13:58] within budget this year.
[1:14:02] » I do have to say I've been so proud. You
[1:14:06] should be having that black that black
[1:14:08] number on the bottom makes me really
[1:14:10] happy.
[1:14:10] >> You guys just did very nice work.
[1:14:12] >> Good.
[1:14:14] >> Glad everybody can that's we we've tried
[1:14:16] really hard and hopefully I can talk a
[1:14:18] little bit about some of the things that
[1:14:19] we're doing and kind of where we're
[1:14:21] going from here. But the number one
[1:14:23] thing is we have balanced our budget and
[1:14:25] it is balanced for next year as well. We
[1:14:28] um have the money that we needed.
[1:14:32] We have made just structurally like
[1:14:35] we're just we know more of where our
[1:14:37] money's coming. We've been watching
[1:14:38] closer. They are making some adjustments
[1:14:40] to our revenue projections to make them
[1:14:43] closer to what we're actually getting
[1:14:46] which makes it easier to budget. Of
[1:14:47] course, um
[1:14:50] we did end fiscal year 25 with 424,000
[1:14:55] in surplus.
[1:14:58] So we were careful in our spending. We
[1:15:00] also got extra revenues which was great.
[1:15:04] Um, but this has required delaying some
[1:15:07] building projects and careful careful
[1:15:09] budgeting all of that. So,
[1:15:12] I don't think I guess I just want to say
[1:15:13] I don't think I can have $425,000 in
[1:15:15] savings.
[1:15:17] But I was really happy when I was able
[1:15:19] to. So, we'll use it. Um, fund balances.
[1:15:25] So that you know we do have um our
[1:15:27] ending fund balance was down closer to
[1:15:31] 150,000 or 1.5 million which John
[1:15:34] Borgett that was kind of we didn't want
[1:15:36] to go below that under his leadership
[1:15:38] and so that's kind of what we were
[1:15:40] aiming to get it higher than that with
[1:15:42] the um surplus in fiscal year 25. We
[1:15:46] were able to bring it up almost to 2
[1:15:47] million which is about remembering the
[1:15:51] math like 36% of our operating budget.
[1:15:53] So, um, that feels a lot more
[1:15:56] comfortable. And our legacy endowment
[1:15:58] fund continues to grow. We haven't had
[1:15:59] to pull any of that out this year. We
[1:16:01] were saving that to help with the boiler
[1:16:03] next year and then we found out about
[1:16:06] elevators, but it's
[1:16:09] so just the building maintenance fund
[1:16:10] for fiscal year 27. We kind of talked
[1:16:12] about this in the CIP, but um, we do
[1:16:16] have the two projects coming up this
[1:16:18] year. We need to replace our one
[1:16:19] elevator and then we need to replace our
[1:16:23] boiler and we do plan on paying for that
[1:16:26] using the library legacy endowment of at
[1:16:28] least $140,000. You don't or you don't
[1:16:30] know exactly what that interest is going
[1:16:32] to build to but when we pull it out it
[1:16:33] should be at least $140,000 and then we
[1:16:36] would like an appropriation from the
[1:16:38] ending fund balance of 285,000 to cover
[1:16:42] those two projects in our nest. Carl
[1:16:44] bank has to stay about two million.
[1:16:47] >> That is the as far as I can tell verbal
[1:16:50] agreement that was made. So we are we
[1:16:53] have tried to keep it at at that and
[1:16:55] just pulled out the interest.
[1:16:58] Any questions about that at all?
[1:17:01] >> Um
[1:17:03] we do have unfunded future CIP needs.
[1:17:05] Again in our capital improvement plan
[1:17:06] presentation we kind of talked about
[1:17:08] those. We have projects coming up. Um
[1:17:12] the elevators in total about another
[1:17:14] $600,000.
[1:17:16] Air handlers are going to be need to be
[1:17:18] replaced. The parking structure does
[1:17:19] need to be upgraded some to keep the
[1:17:22] leaks to a minimum. And um the brick
[1:17:26] work still does need some attention. So
[1:17:27] that's about $1.8 million over the next
[1:17:30] five years that we will need to find a
[1:17:32] way to find that funding.
[1:17:35] But we have done some really good things
[1:17:37] this last year. So I just wanted to
[1:17:38] throw in some of that good news. Um, we
[1:17:42] continue to provide service. We had that
[1:17:45] $800,000 drop. You guys helped us back
[1:17:48] with that. So, we did drop $300,000, but
[1:17:50] I don't believe our patrons noticed that
[1:17:53] we had cut them some things back, which
[1:17:55] we worked really hard to do that to
[1:17:57] sustain our programming. Our hours
[1:17:59] didn't change, nothing like that. We
[1:18:00] kept all of our staff and we continue to
[1:18:03] provide quality services. Um
[1:18:08] some of the other things we have two
[1:18:10] years ago we didn't do hardly any
[1:18:12] fundraising. We have been building that.
[1:18:14] It is not budget changing necessarily
[1:18:19] >> but it is building and it does allow us
[1:18:21] to do some of the smaller building
[1:18:23] maintenance projects that we would
[1:18:24] really like to do. Next year we're
[1:18:26] hoping to raise money to replace some
[1:18:28] couches in the children's department
[1:18:29] that are cracking and being less
[1:18:31] comfortable to sit on. And it's just not
[1:18:33] part of our budget right now. So, we're
[1:18:34] hoping that some of that fundraising
[1:18:35] helps us do some of those upkeep
[1:18:38] projects. Um, we did an a comprehensive
[1:18:43] staff efficiency audit and I can't point
[1:18:45] to any huge again budget changing
[1:18:47] things, but we asked everybody to find
[1:18:49] just something they felt like they could
[1:18:50] do a little bit better and it was really
[1:18:54] good exercise for all of us. We found
[1:18:55] little things that we could do better,
[1:18:57] little ways. And it also actually
[1:18:59] brought out some training gaps that we
[1:19:01] had when like now why is this taking you
[1:19:03] that long? Oh, you didn't know we had
[1:19:04] this tool. Let's do this. And so with
[1:19:06] each individual, we were having those
[1:19:08] conversations and trying to find better
[1:19:09] ways to do things. Um, we're always
[1:19:12] trying to stay safety and prepared. Um,
[1:19:14] our library emergency communication plan
[1:19:16] was something we focused on last year.
[1:19:18] So, we've improved that and made sure
[1:19:19] that our staff all know how that would
[1:19:21] go where something to go down. And then
[1:19:24] we've launched a new ABC This book's for
[1:19:26] me, which was kind of a big initiative
[1:19:27] this last year, and we hope to continue
[1:19:28] that in the next few years to make sure
[1:19:30] that people are able to find things that
[1:19:32] match with their values. It's a big
[1:19:34] thing in libraries. Not every book is
[1:19:36] for every person, and we want to make
[1:19:37] sure we're communicating how to find the
[1:19:38] best books for your family. Um, we
[1:19:41] implemented an evaluation process for
[1:19:43] our programming just so that we're
[1:19:45] reviewing what we're doing and making
[1:19:46] sure everything is hitting the impact
[1:19:48] that we want it to. And um we started
[1:19:51] mailing new mover postcards out to new
[1:19:53] Provo residents to try to help them know
[1:19:55] that the library is there for them. They
[1:19:56] can come in and get a library card. And
[1:19:59] we went for some grants. And we kind of
[1:20:00] threw this in here because we really are
[1:20:02] just finding little pieces of money
[1:20:04] wherever we can. Even if it's a little
[1:20:05] $500 grant, we're going to go for it so
[1:20:08] that we can have a parent baby program
[1:20:10] that we didn't just have that $500 for
[1:20:12] the moment. Um, we improved some of our
[1:20:15] technology and um, council. We went for
[1:20:19] one of their grant
[1:20:19] >> question from council.
[1:20:21] >> What? You didn't cut her off. But um,
[1:20:24] who's doing the grant writing?
[1:20:25] >> All of us.
[1:20:26] >> Okay.
[1:20:27] >> I've done I've done some of it. A lot of
[1:20:28] it's through the state library. I do
[1:20:30] most of those. But the different
[1:20:31] departments, they keep their eyes out
[1:20:33] for grants that might fit a project they
[1:20:36] have or something they've had on the
[1:20:38] back burner that I don't feel like we
[1:20:39] have money for this. And this um, baby
[1:20:40] project was kind of one of that. They
[1:20:42] wanted to do that. they saw a grant from
[1:20:45] >> it's an early learning um organization
[1:20:47] that does those and so they got that
[1:20:49] money. So we kind of just put it out
[1:20:50] there and said everybody look for look
[1:20:52] for grants and we share the
[1:20:53] responsibility. If you want it for your
[1:20:55] things then
[1:20:57] >> we work together because not everybody's
[1:20:59] written a grant before.
[1:21:00] >> Yeah. Good use of resources. I'm
[1:21:01] curious, pardon my ignorance on this. Do
[1:21:04] we have a grant write up for the city
[1:21:05] that helps the various departments with
[1:21:08] different grants and
[1:21:10] something to consider maybe for the
[1:21:12] future? There's a concerted effort and
[1:21:16] focus and you can actually track an ROI
[1:21:19] pretty well on a grant writer, right?
[1:21:20] Like you paid X amount and you've
[1:21:22] generated X amount.
[1:21:25] So might be something
[1:21:27] >> they have. No, yeah,
[1:21:30] >> gone a lot the last few years.
[1:21:31] Everybody's I'm
[1:21:32] >> no
[1:21:33] >> not saying there's anything wrong with
[1:21:34] our grant writing, but it might be
[1:21:36] something to look at because usually you
[1:21:38] do get a pretty good ROI because it's
[1:21:40] something they're just steadily focused
[1:21:41] on, right?
[1:21:43] >> Yeah. I think the thing we just had to
[1:21:44] watch a little bit of we've had people
[1:21:46] find a grant and then try to shoehorn
[1:21:49] something into it and we've been trying
[1:21:51] really hard to make sure we're matching
[1:21:52] a community need to that. So we're not
[1:21:54] just doing a project because we have a
[1:21:56] grant that'll cover it, but we're
[1:21:58] projects and matching them with grants
[1:21:59] that can help.
[1:22:00] >> Free money. Yeah.
[1:22:01] >> Yeah.
[1:22:03] >> Thank you.
[1:22:04] >> I was going to say I had a
[1:22:06] former fire chief that said the same
[1:22:08] thing about a just a communal somebody
[1:22:11] that could help the different
[1:22:12] departments write these grants because I
[1:22:14] do know that the departments are experts
[1:22:16] in writing the grants they've written
[1:22:17] for years but sometimes they need help
[1:22:21] and can collaborate right with somebody
[1:22:27] » add it to the list.
[1:22:37] And that's pretty much it. We haven't
[1:22:38] changed our budget much the last year.
[1:22:40] We've found ways to cover the things
[1:22:41] that have increased. And again, when we
[1:22:44] looked at that surplus, wherever we
[1:22:46] weren't spending money, we used it to
[1:22:48] help balance our budget the next year.
[1:22:49] And we've adjusted some of the revenues.
[1:22:51] Great.
[1:22:52] >> Any questions for Carla? Yeah. Councilor
[1:22:54] Christensen.
[1:22:55] >> Mind putting up the CIP projects again?
[1:22:59] Um, I I just want to call out that the
[1:23:02] city made a decision years ago to save
[1:23:06] this building and anytime you do that,
[1:23:09] it's more expensive. It's easier to just
[1:23:11] level it, put up a steel girder
[1:23:12] building, maybe uh something inexpensive
[1:23:15] and made out of metal on the outside.
[1:23:18] The decision was to make this a
[1:23:19] remarkable place and it's just more
[1:23:23] expensive to do that. And so when we
[1:23:24] look at these expenses coming up, we do
[1:23:26] need to anticipate as a city
[1:23:29] um
[1:23:31] looking out for these things because
[1:23:33] we've already made the decision. You
[1:23:34] pick up one end of the stick, you pick
[1:23:35] up the other beautiful, iconic, you
[1:23:38] know, historical building. Well, the
[1:23:39] other end of the stick is just more
[1:23:41] expensive. And so I appreciate you
[1:23:43] calling out what's coming up because we
[1:23:45] need to anticipate this. Some of this,
[1:23:47] yes, you might be able to address your
[1:23:49] existing budget. Others just going to
[1:23:50] have to come uh from additional funds.
[1:23:52] But I just I just wanted to call out
[1:23:54] that we made this choice a long time ago
[1:23:58] and
[1:23:58] >> it was a good choice.
[1:23:59] >> Yeah.
[1:24:00] >> Um I was thinking about this too and I
[1:24:01] was wondering and this might be a Brian
[1:24:04] question but I was wondering
[1:24:08] we can use city funds. Can we use
[1:24:10] general fund funds at the library?
[1:24:13] >> Yeah.
[1:24:15] I I was thinking about that too
[1:24:18] because the library involved some
[1:24:21] private fundraising and everything to
[1:24:22] save that building. The cubby also
[1:24:24] involved a lot of private fundraising,
[1:24:26] but when you look at the wrap tax, which
[1:24:30] will be coming later, we're putting in
[1:24:33] like $1.3 million of wrap funds into the
[1:24:36] cubby for their fiveyear CIP, but we're
[1:24:39] not doing a similar thing for the
[1:24:42] library for very similar
[1:24:44] >> Yeah. That's not
[1:24:45] >> facility, but it's still not an arts
[1:24:47] building.
[1:24:49] >> Well,
[1:24:49] >> doesn't meet arts or parks.
[1:24:51] >> It it doesn't in some ways. They do lots
[1:24:54] of art programs at the library as well.
[1:24:56] But what I'm saying is, you know, these
[1:24:58] are both two kind of public institutions
[1:25:01] for culture and value and we have been
[1:25:04] treating them differently with the funds
[1:25:06] that we have. Um, and so looking looking
[1:25:10] at that and trying to address Craig's
[1:25:13] point that we we pay for the building
[1:25:16] that we asked for.
[1:25:17] >> Yeah,
[1:25:18] >> I think that's good.
[1:25:19] >> It's more expensive.
[1:25:20] >> Yeah,
[1:25:21] >> we Marca,
[1:25:22] >> we didn't acknowledge you. You came.
[1:25:24] You've been here a while.
[1:25:25] >> That's okay.
[1:25:26] >> And Travis, too. Um, so just just a
[1:25:29] couple of comments because I agree. We
[1:25:31] looked at the rap text to see but when
[1:25:33] you have the language that they voted on
[1:25:37] and we can't change the language. Right.
[1:25:41] >> The park tax.
[1:25:42] >> Well, there's a there's also a um
[1:25:44] library arts and parks tax. Yeah. So,
[1:25:46] there's a lap tax, but I think even if
[1:25:48] we had worded the wrap text in such a
[1:25:50] way, I I don't know that it could have
[1:25:52] gone to library, but we didn't. And then
[1:25:56] the other thing is that you're
[1:25:57] absolutely right about the building and
[1:26:00] it's more expensive to maintain and
[1:26:02] people it's a beautiful iconic building
[1:26:04] that we want to maintain
[1:26:05] >> but um but they also have a very stable
[1:26:09] funding source and that they have
[1:26:12] property tax that that can support them.
[1:26:14] And so one of the things that um Carla
[1:26:17] uh has found that like that I know with
[1:26:20] the board um they want to be do best
[1:26:23] practice and if if there is a need to um
[1:26:28] not wait until it's you know a big huge
[1:26:32] increase that they need but to you know
[1:26:34] build it up. Um I it's actually from me
[1:26:39] that that's not something that I don't
[1:26:41] think we need this year because there is
[1:26:43] money to cover
[1:26:45] >> the stuff right so that is something to
[1:26:47] look at in the future
[1:26:49] >> I think
[1:26:51] councelor Bogdan
[1:26:53] >> I'm glad you brought that up because
[1:26:54] that's what I was going to say to
[1:26:55] Rachel's counterpoint to Rachel's death
[1:26:57] is the library has a steady source of
[1:27:02] funding does and what I would rather see
[1:27:06] is a certain percentage of those tax
[1:27:08] funds set aside for her repairs because
[1:27:11] that's what you have. And so generally
[1:27:15] we've just been using it as operational
[1:27:17] budget and then you've been using what
[1:27:19] the endowment for repairs. But what
[1:27:22] needs to happen is you need to carve out
[1:27:25] a section of your taxes just for for
[1:27:28] repairs and then have your operational
[1:27:30] budget on the rest of it. So, I don't
[1:27:32] think it's fair comparison because they
[1:27:35] have had that ability for
[1:27:38] years.
[1:27:39] >> Well,
[1:27:41] I I think what we would need in order to
[1:27:43] do that is to raise the property taxes
[1:27:45] so that it would accommodate that
[1:27:47] because they've already had operations
[1:27:49] as as much as they can. Um, and the
[1:27:52] ability to raise those taxes lies with
[1:27:54] us, not the library.
[1:27:56] >> It does, but I haven't seen that from
[1:27:58] them in years. And so I think it's going
[1:28:00] to ever actually.
[1:28:02] >> So would you like to see a budget that
[1:28:04] says we want to be able to have this
[1:28:06] much money to put in for the repair fund
[1:28:09] and to do that we would need council to
[1:28:12] approve a property tax raise of x amount
[1:28:14] for this year. She probably not this
[1:28:17] year but look at it in the future for
[1:28:18] the future years.
[1:28:19] >> I think that makes sense.
[1:28:20] >> I would rather crew it than like let's
[1:28:23] wait till all this falls apart then got
[1:28:25] 1.8 million. Let's let's be smart and
[1:28:28] stay ahead. So yes, I I would agree with
[1:28:30] that point.
[1:28:30] >> But Ryan, how would we could we word
[1:28:32] that that she can't touch that for
[1:28:34] operational funds that she has to have a
[1:28:36] certain amount of that property tax only
[1:28:39] to go to forge repairs?
[1:28:41] >> Can I just jump in for a second? And
[1:28:44] with the revenue adjustments and some of
[1:28:46] the things that we are with this budget,
[1:28:48] I didn't go into the weeds into it, but
[1:28:49] it was about $300,000 more through the
[1:28:52] adjustments and new build and all that we got this year above what we got
[1:28:57] last year. and over half of it is being
[1:29:00] set aside for building things like so we
[1:29:03] are we are moving that way. We cut so
[1:29:06] much back that one year that every year
[1:29:08] I'm trying to put more money back. Like
[1:29:10] we had just zero maintenance money even.
[1:29:13] So I believe about 150,000 at least of
[1:29:18] the additional funds that we have. But
[1:29:20] we haven't seen our chargebacks. Like
[1:29:22] there's a lot of numbers I don't have
[1:29:23] yet for my overall budget, but I'm
[1:29:25] hoping at least half of it goes to and
[1:29:27] if every year I can just keep moving
[1:29:29] more of that over, I think we can get a
[1:29:31] lot of that. But I didn't want these
[1:29:35] costs to come out of nowhere.
[1:29:37] >> Yeah.
[1:29:38] >> And it's hard to know. Some of the
[1:29:41] adjustments were made to our revenue
[1:29:44] stream, which is great, but there are
[1:29:45] some years when it comes in below comes
[1:29:48] in when there's a surplus and there's
[1:29:49] some below. And um property taxes is a
[1:29:52] very stable revenue, but plus or minus 3
[1:29:55] or 4%, which is several hundred,000. So,
[1:29:59] I'm trying to build that in so that we
[1:30:02] aren't in the black. we still have that
[1:30:03] and that we are when we can putting
[1:30:05] money aside in the ending fund balance
[1:30:07] so that we can cover those building
[1:30:09] costs and keep building that up. So I
[1:30:11] don't want you to think that we're
[1:30:12] ignoring that because that was a big
[1:30:13] concern that you guys had years ago when
[1:30:15] you gave us the increase that building
[1:30:17] cost and it's not something I have
[1:30:19] forgotten. That's something that's
[1:30:20] really important. So it was important to
[1:30:22] community that we didn't cut services
[1:30:24] and I felt like it was important to you
[1:30:25] guys that we made sure and take care of
[1:30:26] our building and I've really tried to
[1:30:28] balance those two as we are going
[1:30:30] forward. So go ahead, councelor
[1:30:31] Woodlock.
[1:30:32] >> So I just want to make sure I
[1:30:33] understand. So for this 1.8 million of
[1:30:35] needs, you're saying some of these you
[1:30:38] expect to be able to chip away with
[1:30:40] operating surplus, but is there a plan
[1:30:43] for the gap? How much do you think that
[1:30:44] gap is? Because I think that's what
[1:30:45] we're talking about, like how do we meet
[1:30:46] that gap? Is it a transfer from the
[1:30:48] general fund? Is it a property tax
[1:30:49] adjustment?
[1:30:51] >> Those are all options. And I just don't
[1:30:54] know based on our I just I don't know if
[1:30:57] we'll have surpluses or deficits in our
[1:31:00] revenues. I I can't tell you. I would
[1:31:02] love to say that every year we'll have a
[1:31:04] couple hundred thousand that we are able
[1:31:05] to put aside for that. Though it's more
[1:31:09] like $400,000 a year to cover these. So
[1:31:12] there is a gap and that's kind of what
[1:31:14] I'm bringing to you is there is going to
[1:31:15] be a gap. I've got it covered next year.
[1:31:17] I feel like we're in a really good
[1:31:18] place. I think our budget again trying
[1:31:20] to set money aside for the building and
[1:31:22] if if um new build continues to more
[1:31:26] than cover what our personnel like merit
[1:31:29] increase and all that like that's a big
[1:31:30] chunk of where a lot of that goes. If
[1:31:32] that covers that and we're able to
[1:31:33] continue to stash away 500 100,000 every
[1:31:36] year into that building fund so that
[1:31:38] we're building that that is what I would
[1:31:39] love. I just can't guarantee that that's
[1:31:41] going to happen again because while that
[1:31:44] revenue stream is very constant, it
[1:31:46] isn't 100%.
[1:31:50] >> For sure. So, councelor Bogen, in answer
[1:31:52] to your question, just to go back to
[1:31:53] that, no, you can't bind future
[1:31:56] councils. And so, I now having said
[1:31:58] that, city budgets have a lot of inertia
[1:32:01] and it's pretty rare for things to go
[1:32:04] out of where they want them to be. But
[1:32:05] to answer your question directly, if you
[1:32:07] raised property taxes enough to generate
[1:32:10] $200,000 more a year with the idea that $200,000 goes into a CIP budget for
[1:32:16] the library, the only thing that forces
[1:32:19] that money to stay in that CIP budget is
[1:32:21] the council every year putting that
[1:32:23] money into the CIP budget. If 10 years
[1:32:26] from now a new director and a new
[1:32:28] council says, "We want to host rock
[1:32:32] concerts at the at the library and we
[1:32:34] want to take all the money out of CIP to
[1:32:36] fund it." There's nothing to prevent
[1:32:38] them from doing that.
[1:32:40] >> But isn't also my library board is the
[1:32:43] one that approves my budget. They are the ones
[1:32:47] >> that technically have the yes or no for
[1:32:49] where the money goes.
[1:32:50] >> Us.
[1:32:53] >> We're the ones that approve your budget.
[1:32:54] No, we do the tax increase, but her
[1:32:57] board
[1:32:58] >> decides where
[1:32:59] >> we don't approve her.
[1:33:00] >> Well, it's
[1:33:02] >> Sorry, Jean and I have some differences
[1:33:05] of opinion about this. Actually, state
[1:33:06] code is a little bit in my view
[1:33:08] ambiguous. State code gives a lot of
[1:33:10] power to the library board. Um the
[1:33:16] my personal opinion is that it's a mix
[1:33:17] of the two because uh the library is
[1:33:21] still part of the city. I I don't
[1:33:23] necessarily think that the library board
[1:33:25] could do something that the city council
[1:33:28] could not change, but
[1:33:32] the state code on it is in my view not
[1:33:34] completely clear and it does grant a lot
[1:33:36] of power to the library board. So, it's
[1:33:38] a different institution than any other
[1:33:41] part of the city because of that.
[1:33:45] Councelor Whitlock,
[1:33:46] >> I just wanted to follow up on a few
[1:33:48] things in the budget report that to get
[1:33:50] your perspective on them. Um, so you
[1:33:52] said it says that like there's been a
[1:33:54] decline in circulation and that's made
[1:33:57] fewer items built for checkout and
[1:33:59] basically this I kind of get the sense
[1:34:01] maybe it's leading to like a negative
[1:34:02] cycle a little bit where it's like
[1:34:04] because things are not available, we're
[1:34:05] not getting as much um circulation.
[1:34:09] Can you just speak more to that?
[1:34:10] >> Yeah. Yeah. when we two years ago when
[1:34:12] we had big budget cuts, we cut 10% of
[1:34:14] our of our material buying budget. So,
[1:34:17] we were buying fewer things and we have
[1:34:18] seen about a 10% decrease in our
[1:34:20] checkouts.
[1:34:22] So, I do feel like those things are
[1:34:23] linked and that's one place where we're
[1:34:25] putting every year one or two% like
[1:34:27] trying to get it back up to that because
[1:34:30] if you have fewer items that people want
[1:34:32] to check out, people will check out
[1:34:33] fewer things. So, we want to get back to
[1:34:35] where we're supplying the community what
[1:34:37] they need so they're not waiting on hold
[1:34:39] for a really long time.
[1:34:42] And then another thing I wanted to
[1:34:43] double click on is we cut the streaming
[1:34:46] services and we're getting a lot of
[1:34:48] community feedback from that. Can you
[1:34:50] say more to that? And like how much did
[1:34:51] we save by cutting it? How much have we
[1:34:53] quantified the demand of people wanting
[1:34:54] it back?
[1:34:55] >> Yeah, we cut um the music streaming was
[1:34:57] 20,000 and also the video streaming was
[1:35:00] $20,000 a year. The music streaming we
[1:35:03] have had less feedback that people care
[1:35:06] about that as much. Um, but the movie
[1:35:08] streaming we have, we actually found
[1:35:10] about $5,000 to do a very limited
[1:35:12] streaming account. But, um, they would
[1:35:14] like, we have received quite a bit of
[1:35:16] feedback. They would like full thing
[1:35:17] back. And nobody
[1:35:19] was enraged. Like, everybody understood
[1:35:20] that we were cutting and this is kind of
[1:35:23] a place where we could cut a whole
[1:35:25] bunch. Um, that is something that we
[1:35:27] really want to put back in the next
[1:35:28] couple years as we hopefully find
[1:35:31] additional um, new build revenue and
[1:35:34] stuff like that. That's just slowly
[1:35:35] we're building to try to put put that
[1:35:37] back because it's something that
[1:35:38] libraries more and more are being
[1:35:40] expected to to provide.
[1:35:43] >> Thank you. And then one last question is
[1:35:46] and and maybe I I just want to make sure
[1:35:48] I got my numbers here is basically the endowment's generating about 100k
[1:35:51] per year. Correct.
[1:35:52] >> If we have good interest rates, which we
[1:35:55] do,
[1:35:56] >> right,
[1:35:56] >> until we don't,
[1:35:57] >> right? But then we're drawing like 140k
[1:36:00] from it.
[1:36:01] >> Uh we didn't touch it at all this year.
[1:36:03] So it's in the past we have
[1:36:05] >> we have
[1:36:06] >> we did the last the two years before
[1:36:08] that um when it was only earning like
[1:36:11] one or two% a year um it was much less
[1:36:14] and we let it build up for several years
[1:36:16] I think it helped pay for carpet and
[1:36:18] then we let it build up for five years
[1:36:19] it helped pay for um roofing and stuff
[1:36:21] like that. So it just kind of depends on
[1:36:22] what our needs are and
[1:36:24] >> and so there's not like a plan to
[1:36:25] continue drawing from it or it just kind
[1:36:27] of as as needed.
[1:36:28] >> It's been as needed which has been
[1:36:31] needed a lot.
[1:36:32] >> Right. So just if we've had a project
[1:36:35] that came up, we weren't sure where that
[1:36:36] money was coming from. We looked to see
[1:36:38] how much would we be drawing out if we
[1:36:40] left it at two million and just brought
[1:36:41] out that interest. So we have used it
[1:36:44] pretty regularly over the last three
[1:36:47] years, but not this.
[1:36:49] >> What's been like the secular trend of
[1:36:50] the balance beyond the window provided
[1:36:52] in this report?
[1:36:56] >> Uh that's a good question. I haven't
[1:37:00] been watching it more than for the last
[1:37:01] four years. So, I'm not sure. I know
[1:37:03] that it took about 15 years to get to 2
[1:37:06] million. So, it took quite a while
[1:37:08] because the endowment originally was, I
[1:37:12] think, closer to 1.5 million. And so,
[1:37:14] they let it grow over a whole bunch of
[1:37:16] years until it reached that 2 million.
[1:37:19] And then the only draws that I know of
[1:37:22] were again the carpet and the roofing.
[1:37:24] And then I've drawn it out um for some
[1:37:27] parking structure repair and then
[1:37:31] uh the gutters. We used it for the
[1:37:33] gutters the year before and then hoping
[1:37:35] to let it build up again so we could
[1:37:36] help it pay for the boiler.
[1:37:38] >> Okay. Thank you.
[1:37:39] >> We had we saw that on the horizon and
[1:37:40] knew that we would need that money.
[1:37:42] >> Yeah.
[1:37:43] >> Just wanted to build on the um
[1:37:45] circulation question. So you've seen it
[1:37:47] go down a little bit. How does it trend
[1:37:48] with other libraries in the state?
[1:37:51] Um,
[1:37:53] I haven't looked at them this year.
[1:37:55] Overall, circulation has been nationally
[1:37:59] going down. People are using libraries
[1:38:02] less. Um, we've always been really proud
[1:38:05] because ours continues to grow. Our
[1:38:07] print checkouts do go down, but our
[1:38:09] digital checkouts go up. And we have
[1:38:13] overall gone up until the last couple of
[1:38:15] years
[1:38:18] » because I think people are are checking
[1:38:20] out pure print books, but everybody
[1:38:22] likes downloadable ebooks.
[1:38:26] » Yeah, that's what I'm hoping.
[1:38:27] >> I was just curious how it's going with
[1:38:28] the ballroom rentals. We had increased
[1:38:30] price. We're trying to find an
[1:38:32] equilibrium of like what people would
[1:38:33] pay but not pay, you know, not charge
[1:38:35] too much. I know it's not a huge,
[1:38:38] >> you know, budget breaker or anything,
[1:38:39] but I was just curious how that went.
[1:38:41] >> Yeah, it's our usage has not gone down.
[1:38:43] In fact, I was just told the last couple
[1:38:45] of months have been our highest months
[1:38:47] ever for revenue brought in by our
[1:38:50] meeting rooms. We did, and maybe I
[1:38:52] should put this in the report, but it's
[1:38:53] in the um consolidated fee schedule, but
[1:38:56] we did increase it again another 5% for
[1:38:58] almost all of our meeting rooms and
[1:39:00] included that in our in our revenues as
[1:39:02] well. at 5% up and I kind of like that
[1:39:06] just in incremental we did do we did
[1:39:08] compare it to the other meeting spaces
[1:39:10] in the community just to make sure and
[1:39:12] they were all doing between a three and
[1:39:14] 10% increase this last year too so it
[1:39:16] stayed in
[1:39:17] >> okay it makes sense to just kind of keep
[1:39:20] pinching it and seeing you know what the
[1:39:23] elasticity is right the price elasticity
[1:39:26] and such go econ 101
[1:39:29] >> also looking to make sure that it's
[1:39:31] covering the cost of the staff that make
[1:39:33] it run because that was kind of a big
[1:39:36] moment for us that that it is and so
[1:39:38] we're we're watching that as well.
[1:39:39] >> Thanks for that update.
[1:39:40] >> Yeah.
[1:39:41] >> All right. Anything else for Carla?
[1:39:43] >> Hey, thanks so much.
[1:39:44] >> We are one last little thing. It's our
[1:39:46] 25th year in the building.
[1:39:48] >> Oh,
[1:39:50] we have some little goodie bags. These
[1:39:51] are actually um prizes that we're giving
[1:39:53] out for a anniversary challenge at the
[1:39:56] library. So, if they do six challenges,
[1:39:57] they get these. But, I bought one for
[1:39:59] each of you.
[1:39:59] >> Love it. help us celebrate. It's now an
[1:40:02] extensive building
[1:40:04] >> because it's 25 years old. Thank you
[1:40:06] guys so much.
[1:40:06] >> Thanks, Carla.
[1:40:07] >> You guys put the banner over the street.
[1:40:11] >> All right.
[1:40:14] >> Next, we have a presentation for the
[1:40:15] 2027 budget parks and wreck. This will
[1:40:19] be presented by our interimm director of
[1:40:20] parks recy.
[1:40:31] Hey,
[1:40:42] » sorry I got to wait for the riff raff to
[1:40:44] get into the room. So, appreciate your
[1:40:46] time.
[1:40:48] Um,
[1:40:51] thanks for having us out. We're the
[1:40:52] parks and recreation department. Uh I'm Foster in the department
[1:41:00] currently uh but we've brought some of
[1:41:02] our division staff members. So uh many
[1:41:04] of our managers that are here that if we
[1:41:06] have questions uh specifically to speak
[1:41:07] to that they can. Um,
[1:41:10] as always, we've approached this budget
[1:41:12] with a deep sense of responsibility,
[1:41:14] recognizing that every dollar entrusted
[1:41:16] to us is precious and then and that it
[1:41:20] represents the hard work um of our
[1:41:22] residents and the priorities of this
[1:41:23] council. So, this budget year is very
[1:41:26] simple. It resembles very closely uh
[1:41:29] years previously, and we only have two
[1:41:30] supplemental requests. So, we'll go over
[1:41:32] those when we get to those and then I'll
[1:41:34] point those out. Um, just as a general
[1:41:37] outline, if you want Oh, this is it,
[1:41:39] isn't it? Just as a general outline. Um,
[1:41:42] we've answered all the questions as far
[1:41:43] as needs and and other uh appropriations
[1:41:46] here. And then we'll talk about the
[1:41:49] performance measures and then we'll go
[1:41:50] over key accomplishments as we as as we
[1:41:53] do for each of our different divisions.
[1:41:55] We've got about eight of them. So,
[1:41:57] starting at the Peace Ice Arena,
[1:41:59] um the ice arena continues to operate
[1:42:02] effectively with no uh additional under
[1:42:04] un unfunded or underfunded needs.
[1:42:07] Services or initiatives that need to be
[1:42:08] funded are none and appropriations as
[1:42:10] well none. Uh the only thing to note
[1:42:12] here is that um the Peaks Iceize Arena
[1:42:15] will host will be a host venue for the
[1:42:16] 2034 Olympics and because of that we're
[1:42:19] planning uh for needed upgrades
[1:42:22] and uh but we are doing this very
[1:42:24] responsibly and with the assistance from
[1:42:25] the state and we just wanted to note
[1:42:27] that for future obligations it says on
[1:42:29] there long-term visions. So that's one
[1:42:31] for the Peaks Ice Arena. So many of you
[1:42:32] know about
[1:42:35] uh the performance measures for the ice
[1:42:36] arena. uh we have a good balance of
[1:42:39] programming and public activities,
[1:42:41] rentals, tournaments uh that diversify
[1:42:44] uh our offerings and currently we're at
[1:42:46] 98% booking capacity. So that's very
[1:42:48] high. Um almost every free hour is used
[1:42:51] that we have of ice and turf
[1:42:53] availability. Uh it's 100%
[1:42:56] self-sustaining operation with no
[1:42:58] operational subsidy and we return about
[1:43:00] uh it's about 109% total cost recovery.
[1:43:03] Public skating is very popular still in
[1:43:06] Provo. And the ice arena tracks uh
[1:43:09] numbers of the ice arena tracks the
[1:43:12] number of ice resurfaces every year. And
[1:43:14] while that might seem like an
[1:43:15] insignificant number, it's the number of
[1:43:17] zams we do every year. But that also
[1:43:19] tells us it's an indicator of how
[1:43:20] popular and how busy they are in Provo.
[1:43:22] Uh and then according to the visitors
[1:43:24] bureau with the tournaments that we do
[1:43:26] run, we we generate about $5 million of
[1:43:28] economic impact.
[1:43:31] Some of the key accomplishments this
[1:43:32] year we hosted the Olympic listening
[1:43:34] tour. So some of you may have heard
[1:43:35] about that. We had um uh those from the
[1:43:38] commission from uh the parolympic winter
[1:43:41] games organizing committee that came in
[1:43:43] uh and then they also at the peak ice
[1:43:45] arena funded a chiller replacement
[1:43:46] completely on their own about half
[1:43:48] million dollars turf replacement and
[1:43:50] then they are 100% self-sustaining and
[1:43:52] they host about seven tournaments. So,
[1:43:53] we talked about $5 million of economic
[1:43:55] impact and these are just some of the
[1:43:58] Olympic preparations that they're getting ready for.
[1:44:01] Um,
[1:44:04] yeah, one of the other amazing things to
[1:44:06] note here at the ice arena is that
[1:44:08] they're having a record setting year.
[1:44:09] Uh, just very bannered year as far as uh
[1:44:12] their revenues are concerned. So, this
[1:44:14] purple line is the one that we're
[1:44:15] following here forations.
[1:44:18] >> Oh, nice.
[1:44:19] >> So, um many of these numbers like these
[1:44:22] are their banner months. Some of these
[1:44:23] months right here are historic months
[1:44:25] that they have up there which are really
[1:44:26] cool to see. So this year I think
[1:44:28] they'll have a record setting revenue
[1:44:29] years. They've got a couple months left
[1:44:31] uh to bank that out. But they do put
[1:44:33] away a lot of that and we plan on doing
[1:44:35] a lot of those renovations ourselves if
[1:44:37] we can and then as we go into the
[1:44:39] Olympics we'll see some of that.
[1:44:41] >> What do you attribute the revenue to?
[1:44:43] >> There's a huge increase. Well, we are
[1:44:45] the only ice arena in Utah County. So
[1:44:46] that's one. You kind of have the
[1:44:47] monopoly there as well as the increase.
[1:44:50] It's an Olympic year. So that's always
[1:44:52] drives more ice winter related sports as
[1:44:56] well as we have the mammoth here
[1:44:58] >> which is our NHL hockey team. So those
[1:45:01] two things are just
[1:45:02] >> so just interest generally is higher due
[1:45:04] to
[1:45:04] >> in ice sports and
[1:45:06] >> have we has has our pricing gone up at
[1:45:08] all or
[1:45:09] >> uh for rentals or
[1:45:12] >> we are we have put
[1:45:13] >> the little the little uh push things
[1:45:16] that I use to keep myself from falling
[1:45:18] >> the walkers.
[1:45:19] used to all those walkways even though
[1:45:21] they're skating.
[1:45:22] >> Uh we do have a few uh fee increases
[1:45:24] that you'll you'll probably see in the
[1:45:26] consolidated fee schedule. So we're
[1:45:28] looking at raising ice costs there. Um
[1:45:30] this is even with u let's see the new
[1:45:33] mammoth practice facility that's online
[1:45:36] there. There is plenty of need I think
[1:45:38] in the county and some of the county
[1:45:39] commissioners have have mentioned that
[1:45:40] there's need this here and I think Lehi
[1:45:43] had a a feasibility study for ice.
[1:45:45] >> Yes.
[1:45:45] >> Well, they they denied it but
[1:45:48] >> Right. Right. They were talking about
[1:45:49] doing that.
[1:45:50] >> Um, is there still talk about possibly
[1:45:53] expanding the ice like doing an ice rink
[1:45:56] or ice ribbon or something just because
[1:45:58] it is so popular?
[1:45:59] >> Uh, we can always dream. We we don't
[1:46:02] have anything currently in the CIP. Uh,
[1:46:05] we we would Yes, there is a need. So, if there's any opportunities there, uh
[1:46:10] there's things that we could do. Yeah,
[1:46:11] >> that was what I wrote for the big idea
[1:46:14] for getting the regional funding speed
[1:46:16] skate rivet showing.
[1:46:18] >> Yeah, we've done some concepts. We've
[1:46:20] looked at it before of of ways to
[1:46:22] incorporate this. One of the things that
[1:46:23] we thought of is maybe creating a plaza
[1:46:25] out front of the facility where we could
[1:46:27] have the a watch party so others could participate in Olympic type
[1:46:33] activities but still be close enough to
[1:46:35] the venue if they can't get in. So,
[1:46:36] those are some things that we've talked
[1:46:37] about. Yeah.
[1:46:39] >> Okay. Okay, so that's the ice arena uh
[1:46:41] sports and epic sports park complex. Uh
[1:46:43] this is just one of our first uh
[1:46:45] supplementals that I wanted to point
[1:46:46] out. Uh sports is requesting a part-time
[1:46:49] sports coordinator to run the additional
[1:46:51] programming. We're looking at adding
[1:46:52] pickle ball, ultimate frisbee, and rugby
[1:46:54] uh are a couple of them. And but as far
[1:46:57] as everything else, they're not asking
[1:46:58] for any any other appropriations or
[1:47:00] anything else. The fees to the to to run
[1:47:02] these programs would essentially cover
[1:47:03] the cost of that employee. So there's no
[1:47:05] net or any increase there. Yeah. Are we
[1:47:07] increasing fees for this too?
[1:47:09] >> So the fees would just be built in. So
[1:47:11] we we calculate within sports about a
[1:47:13] 25% buffer 15 to 25% buffer and that
[1:47:17] covers the cost of the employees wages.
[1:47:18] >> Right. Right. But this next year for
[1:47:22] budgets in 27 are we increasing the fees
[1:47:25] here too
[1:47:26] >> for sports programming?
[1:47:27] >> Yes.
[1:47:27] >> I don't think we have anything. Do you
[1:47:29] >> for the
[1:47:32] may asking
[1:47:32] >> well for for all of it because I didn't
[1:47:34] see any any increases here. So that's in
[1:47:37] the consolidated fee schedule which we I
[1:47:39] think we submit submit.
[1:47:41] >> We haven't seen any of that. Have you
[1:47:42] not seen that?
[1:47:42] >> Yeah. And normally when we're seeing
[1:47:44] these these presentations will be
[1:47:47] >> we Yeah, we we like energy just showed
[1:47:49] us theirs. Um the airport just showed us
[1:47:52] theirs, but I haven't seen anything from
[1:47:54] yours yet.
[1:47:54] >> Got it. So separately we do we do the
[1:47:57] consolidated fee schedule which we put
[1:47:59] together the different fees. That's
[1:48:01] never been part of our budget
[1:48:02] presentation, but we'd be happy to speak
[1:48:03] to it. Currently in sports, I don't
[1:48:05] think they are adding any additional
[1:48:07] fees to any of the sports programming or
[1:48:08] the rentals at the IC or sorry at the
[1:48:11] Epic Sport. So, does that help answer
[1:48:13] that?
[1:48:14] >> Yeah.
[1:48:15] >> All right. Um, no underfunded needs or
[1:48:17] anything else in sports. Um, and we'll
[1:48:20] move to their performance measures. Uh,
[1:48:23] their performance measures here. One one
[1:48:25] thing that I did want to note is that
[1:48:26] they use an MPS score uh in their
[1:48:29] performance measures which just
[1:48:30] basically tracks um it's a metric to see
[1:48:33] the satisfaction of the participants
[1:48:35] included and a average score would be
[1:48:38] around a 30 and their performance
[1:48:39] metrics are generally around a 45 to 55
[1:48:42] score and so they do have high
[1:48:44] engagement and satisfaction from the
[1:48:46] different participants that are in their
[1:48:47] programs. So that's always fun to see.
[1:48:50] Uh as far as key accomplishments in the
[1:48:52] sports and epic sports park this year,
[1:48:55] uh the economic impact is looking to be
[1:48:57] close to 18.5 million in actual local
[1:49:00] spending. And so that's also come this
[1:49:02] number we've uh help been helped by the
[1:49:06] uh visitors bureau to help put these
[1:49:08] numbers together. Uh as you know they
[1:49:11] were awarded the sports complex of the
[1:49:12] year and this July they're hosting the
[1:49:15] US youth soccer premier tournament. And
[1:49:18] then we've also seen an uptick in
[1:49:20] programming such as girls softball at
[1:49:22] Fort Utah. They've seen multiple team
[1:49:23] growth. So that's been fun to see.
[1:49:25] >> Yeah.
[1:49:28] >> Um on the just a couple questions on the
[1:49:31] Epic Sports Park. So you list out
[1:49:34] numbers for like economic impact, but I
[1:49:36] didn't see numbers on like the actual
[1:49:39] performance of the park. Can you share
[1:49:42] anything on that?
[1:49:43] >> Yes. What specifically would you like to
[1:49:44] know about? um how's it have fees and is
[1:49:47] it self- sustaining from that
[1:49:49] perspective and just yeah financial
[1:49:50] performance.
[1:49:51] >> So good questions. So financially the
[1:49:54] operations are covered they budget and
[1:49:55] they fall within their budget. So if
[1:49:57] they don't hit their revenues they still
[1:49:58] won't spend up to them that that amount
[1:49:59] they'll balance their budgets internally
[1:50:02] uh if they don't hit their revenues but
[1:50:03] they are on track to hit their revenues.
[1:50:05] It's close to half a million I think in
[1:50:06] revenue that the Epic Sports Park brings
[1:50:08] in. uh and they are uh their booking
[1:50:12] window is also very high meaning the
[1:50:13] hours that they have aotted to book not
[1:50:15] very many and not much interest I guess
[1:50:17] during the early and afternoon parts of
[1:50:20] the day but in the evening time uh when
[1:50:22] coaches are available they are booked
[1:50:23] out most of the time so yes
[1:50:26] >> what's the rough utilization
[1:50:28] >> uh it's 80 to 90% in the evening time
[1:50:31] >> in the within the hours
[1:50:32] >> within yes and then we have that one
[1:50:35] designated field that we have open for
[1:50:36] local play so we've been keeping that
[1:50:38] um so that neighbors and others can come
[1:50:41] through and use that field. Yeah. Does
[1:50:43] that answer your question? And I can get
[1:50:45] you more specific numbers if you'd like
[1:50:46] to see.
[1:50:46] >> Yeah, I'd be interested to see those.
[1:50:48] Yeah.
[1:50:48] >> Okay.
[1:50:48] >> Could you send those to the council?
[1:50:50] >> Okay. Yeah. Can John, can you make a
[1:50:53] note of that?
[1:50:53] >> Okay. Thanks,
[1:50:55] >> counselor.
[1:50:57] >> Um has there been any negative impact to
[1:50:59] the quality of the fields that the field
[1:51:01] that is open for community?
[1:51:03] >> Certainly, we haven't seen much. Right.
[1:51:05] And I think
[1:51:06] >> how the usage been on that
[1:51:08] >> of the field, the open field that we
[1:51:10] have, it's minimal. It has been minimal.
[1:51:12] I don't think there's been a major
[1:51:13] announcement that it's been open. And I
[1:51:16] think maybe that's strategic to make
[1:51:17] sure that the local people know about it
[1:51:19] instead of just massively letting
[1:51:21] everybody know, but um it hasn't been
[1:51:24] overly utilized and there hasn't been
[1:51:27] any major damage to the fields that we
[1:51:29] know of yet. Yeah.
[1:51:32] >> Yeah. So, how many fields are
[1:51:34] operational right now?
[1:51:36] >> We have 15 15 fields.
[1:51:37] >> Okay. So, a tournament can use up to 15
[1:51:39] at one time.
[1:51:40] >> Correct.
[1:51:40] >> And how much is it again once it's
[1:51:42] totally done?
[1:51:43] >> 21 fields is the goal is the target.
[1:51:45] >> Are we finding there's a lot of
[1:51:48] tournaments where we don't have enough
[1:51:49] space for them?
[1:51:50] >> Correct. So, this US youth soccer
[1:51:53] premier tournament that we're hosting,
[1:51:54] we are splitting that with Salt Lake.
[1:51:56] So, part of it will be up at the rack
[1:51:58] and part of it will be here. Oh,
[1:51:59] >> okay. So, yes. If we had 21, could we
[1:52:01] host the whole thing?
[1:52:03] >> Most likely. Yes.
[1:52:05] >> And how often does that happen?
[1:52:06] >> So, they're looking at to contract with
[1:52:08] us for two years. So, this may be this
[1:52:10] year and the next, although we don't
[1:52:12] have an official uh contract agreement
[1:52:14] with them yet,
[1:52:14] >> but there's lots of other tournaments.
[1:52:16] >> Oh, yes. Yes.
[1:52:18] >> That's just one weekend out of the year,
[1:52:19] right?
[1:52:19] >> Yeah. This is actually one month out of
[1:52:21] the year. This is this will be a big one
[1:52:22] that we've booked aside for about a
[1:52:24] month for the year. So, yeah.
[1:52:26] >> Yeah.
[1:52:27] >> Sorry, random question. um flies,
[1:52:31] mosquitoes. Have we had any complaints
[1:52:33] from you know
[1:52:35] >> actually very little
[1:52:36] >> participants about those types? I know
[1:52:37] there was a lot of concern around that
[1:52:40] deterrent.
[1:52:41] >> No, I would say the bigger challenge for
[1:52:43] us out there is actually wind just
[1:52:44] because it's so open and where it's at
[1:52:46] on
[1:52:47] >> complaints about wind.
[1:52:48] >> Yeah, wind. Wind will come. It'll affect
[1:52:49] our sprinklers. It will do some other
[1:52:51] things to us. Wind wind has been the the
[1:52:53] bigger factor. I don't think there's a
[1:52:54] lot that draws the flies and mosquitoes
[1:52:56] there. We don't have any lights there
[1:52:57] and so we very conscientious of that uh
[1:53:00] in the initial design of that. So,
[1:53:01] >> and tournaments don't have a desire to
[1:53:03] have night play.
[1:53:04] >> I'm sure they would. We just don't have
[1:53:06] lights. And then it also allows us to
[1:53:08] kind of cap the time that they're able
[1:53:10] to use so that we don't ruin or destroy
[1:53:12] fields. We need some growback time in
[1:53:13] there as well.
[1:53:15] >> So, yeah. Uh well, another question is
[1:53:18] on these economic impact numbers. Could
[1:53:21] you just give us a summary of like the
[1:53:22] key assumptions that go into that?
[1:53:26] the economic impact numbers that go into
[1:53:29] >> the for specifically on your sports
[1:53:30] performance measures. I think they're
[1:53:32] specifically epic sports park related
[1:53:33] economic impacts.
[1:53:37] » Yes. Um
[1:53:40] is there one specific that you're
[1:53:43] >> is that row where it's had 3.5 million
[1:53:45] in 2025 12.5 million this year and then
[1:53:49] a and then an assumption of 24.5
[1:53:51] million. I'm just curious if you could
[1:53:52] like kind of walk us through the
[1:53:54] assumptions to
[1:53:54] >> So the first year that we opened we
[1:53:56] opened in the fall and so that's why you
[1:53:58] only saw 3.5 million so it wasn't a full
[1:54:00] season worth of of usage and then this
[1:54:03] uh 12.5 uh was our is our current rate
[1:54:07] and then that that's our target for this
[1:54:08] year. So with the additional turns that
[1:54:10] we have spring of this year into right
[1:54:13] before July that will add to the 18.5
[1:54:15] that we're projecting and then 24.5 is
[1:54:18] our target for 27 is what we want to
[1:54:21] accomplish in 27.
[1:54:22] >> Yeah. What what
[1:54:23] >> we're asking though is that that's
[1:54:24] helpful context but kind of like what
[1:54:25] are the assumptions in the model that to
[1:54:28] come up with those numbers?
[1:54:30] >> What goes into making that number?
[1:54:32] >> Right. So the way that uh there's two
[1:54:36] things we've been using placer AI data
[1:54:38] one to to calculate these numbers and
[1:54:39] the second thing is also um we're kind
[1:54:42] of corroborating that with the numbers
[1:54:45] that we get from the visitors bureau and
[1:54:46] the visitors bureau's model from what I
[1:54:49] understand from uh explore Utah Valley
[1:54:51] is that they get their numbers based on
[1:54:52] hotel room nights and so there's a calculation that goes in that
[1:54:56] says if you stay overnight then this is
[1:54:58] the amount that you would spend in food
[1:55:00] hotel lodging rental are and so that
[1:55:03] those are the assumptions that go into
[1:55:05] those numbers is that calculation and I
[1:55:07] don't have the exact numbers in that
[1:55:08] calculation but I know that theirs is
[1:55:10] based there's one calculation that's
[1:55:12] based on hotel room nights and there are
[1:55:14] others that we pull based on economic
[1:55:16] impact from placer AI and we kind of
[1:55:18] compare those two to make sure that
[1:55:19] they're pretty similar
[1:55:22] >> yeah okay
[1:55:26] » so last year I didn't know I noticed
[1:55:28] that there was quite a few weekends
[1:55:30] without tournaments are we more filling
[1:55:34] that role. So, we have tournaments more
[1:55:36] there or are we still vacant for quite a
[1:55:38] bit of this season?
[1:55:39] >> We're more full. And I guess that goes
[1:55:40] back to the previous question as well.
[1:55:42] Almost all of our bookable times are
[1:55:45] full, meaning that good weekends, where other sports don't
[1:55:49] conflict. And there are some weekends
[1:55:50] that other tournaments are happening in
[1:55:52] other locations and so they're not as
[1:55:54] popular. Or it if it's a more Memorial
[1:55:56] Day tournament or things like that, it
[1:55:58] might be a more heavily soughtafter
[1:56:00] weekend. And so they calculate all of
[1:56:01] that in uh for the ice world it's
[1:56:03] President's Day, right? Certain certain
[1:56:05] times they'll have certain tournaments
[1:56:07] that happen. Those that have kids in
[1:56:08] sports probably recognize that there are
[1:56:10] certain times that they definitely have
[1:56:12] certain
[1:56:14] uh set tournaments that happen. And ours
[1:56:17] for those tournament weekends are
[1:56:18] generally booked. So we don't have every
[1:56:20] weekend booked, but it's almost one a
[1:56:22] month uh at the Epic Sports Park.
[1:56:24] >> One weekend a month.
[1:56:25] >> Almost one a month. Yeah. If not more
[1:56:27] for those times. Yeah. Okay.
[1:56:31] Uh recreation center recreation center
[1:56:34] has no uh asks. Um
[1:56:38] and uh our recreation center performance
[1:56:41] measures uh are currently
[1:56:45] down uh compared to current years just
[1:56:47] to be completely honest. Uh several
[1:56:50] factors that go into that. Um
[1:56:53] uh but we're hopeful. There is our
[1:56:55] upcoming season. So, their busy season
[1:56:57] has kind of broken into two with the
[1:56:58] summertime. So, we're coming into that
[1:57:00] busy season as the summer goes along.
[1:57:02] They've always been a self-sustaining
[1:57:03] facility. We're looking to hopefully uh
[1:57:05] accomplish that again this year. Um
[1:57:09] and uh the other thing to note is that
[1:57:12] our weekly and our fitness classes and
[1:57:14] class attendance and our programs have
[1:57:15] been up. So, those are a couple of our
[1:57:17] performance measures.
[1:57:18] >> So, so what is down then? Memberships.
[1:57:21] >> Memberships are down and revenue looks
[1:57:23] like it's a little down compared to
[1:57:24] previous years. Um, did we implement
[1:57:26] automatic renewal on memberships?
[1:57:30] >> Yes and no. Yes.
[1:57:34] >> Just trying to think.
[1:57:35] >> Okay. What do you mean yes and no and
[1:57:37] yes?
[1:57:37] >> So we switched to a new software explore
[1:57:39] software and that's one of our key
[1:57:40] metrics.
[1:57:41] >> And so that now does automatic renewals.
[1:57:43] >> It will. But we have
[1:57:44] >> that might help.
[1:57:45] >> We have different memberships that don't
[1:57:46] do automatic. So we have various
[1:57:48] memberships. So ones that we do have
[1:57:50] memberships that roll over. Yes, they do
[1:57:52] continue in memberships that don't that
[1:57:53] are just month-to-month. And we
[1:57:54] >> So, it looks like day passes sold is way
[1:57:56] down.
[1:57:57] >> Day passes are also a little low. Yeah.
[1:58:00] >> Uh to that to that point, which one?
[1:58:02] Because I I know historically your
[1:58:04] monthly has autorenewed, but your
[1:58:05] annually have not autorenewed. Has that
[1:58:08] been corrected?
[1:58:08] >> We've just made a change. So, you can
[1:58:10] get a monthtomonth you can. And then
[1:58:12] we've got a three-month and a yearly
[1:58:13] membership. And for the yearly
[1:58:15] membership, it's like paid in full when
[1:58:17] you start and a three-month is paid in
[1:58:19] full uh for the three months. And
[1:58:21] there's different price breaks and
[1:58:22] discounts that come along with those
[1:58:24] different um fees that are associated
[1:58:26] with that. The ones that will roll over
[1:58:28] were our yearly ones, our annual ones
[1:58:30] that we would continue to roll over.
[1:58:32] >> Okay. I have a question just I think in
[1:58:34] general, what is the time period on the
[1:58:37] current column in all these charts?
[1:58:39] >> It's as current as meaning year to date.
[1:58:42] >> It's like last month.
[1:58:43] >> It's is it is it the year of 2026 or is
[1:58:46] the budget year of 2026? It's this year
[1:58:49] of 26. So budget
[1:58:51] >> January to December.
[1:58:53] >> Sorry.
[1:58:53] >> Budget.
[1:58:55] >> It's the fiscal year.
[1:58:58] >> Okay.
[1:58:59] >> We've been going.
[1:59:00] >> Sorry. Are we We're compare. I assume we
[1:59:01] were comparing year to date.
[1:59:03] >> No, it's I don't I think that was the
[1:59:05] question.
[1:59:06] >> 2025. That's all of 2025, but 2026 is
[1:59:09] how much?
[1:59:10] >> Correct. So that's up to this last
[1:59:12] month. So this would be February of this
[1:59:14] year for this budget for this fiscal
[1:59:16] year. still July. So
[1:59:18] >> So we're way behind run rate to get to
[1:59:20] 100% cost recovery. That's correct.
[1:59:22] >> Yes.
[1:59:23] >> But most of your most of most of the
[1:59:26] action happens in the summer, right?
[1:59:28] Isn't that what we're talking about?
[1:59:29] >> Correct. Okay.
[1:59:30] >> But does the month Oh, sorry. Sorry.
[1:59:32] >> Go ahead.
[1:59:33] >> Um I was just going to say and so we are
[1:59:35] going to raise fees across the board for
[1:59:37] this one as well.
[1:59:38] >> These we're looking at for our
[1:59:39] consolidated fee. We've suggested some
[1:59:41] fee changes there at the recreation
[1:59:43] center. Can we can we get just your
[1:59:47] consolidated fee stages? Sure.
[1:59:48] >> I would like to see those in the budget
[1:59:51] presentations
[1:59:52] >> because we're we're the ones that have
[1:59:54] to
[1:59:54] >> absolutely
[1:59:55] >> approve that. Absolutely.
[1:59:56] >> And we're the ones that are accountable
[1:59:58] to our residents and so when these
[2:00:00] things start going up, we need to know
[2:00:01] what we're improving and why.
[2:00:03] >> Yeah.
[2:00:03] Let's make a note of that, Justin,
[2:00:05] for next year.
[2:00:07] >> Absolutely.
[2:00:08] >> Thanks.
[2:00:09] >> Yeah. Um so fiscal year on this year-to-
[2:00:12] date current ends in end of June.
[2:00:15] >> Correct.
[2:00:15] >> So it does not count July.
[2:00:17] >> Correct.
[2:00:17] >> So we have effectively
[2:00:20] Mar is March in this numbers because I I
[2:00:21] know like for example the golf course
[2:00:23] was halfway through March. So that
[2:00:25] >> is not in the numbers yet.
[2:00:26] >> So it's February
[2:00:27] >> right?
[2:00:28] >> So we have March, April, May, June. So
[2:00:30] we have four months to recover 60% of
[2:00:32] cost. Seems like that might not happen.
[2:00:35] >> Correct. Now these are based on recovery
[2:00:38] of hitting 100%.
[2:00:41] There is a way that if our revenues
[2:00:43] don't hit that much we bal we self
[2:00:44] balance right so which means we spend
[2:00:46] less we we um we balance that budget
[2:00:49] based on the amount of revenues that we
[2:00:50] bring in. So even though it might
[2:00:54] >> So what we working specifically what
[2:00:56] would you balance that with? Take us
[2:00:57] through what that looks like.
[2:01:00] Uh so for instance if um
[2:01:04] uh we've recognized that there is a
[2:01:07] trend that we are not making as much as
[2:01:09] we as we have in previous years. So we
[2:01:11] would recognize that and then spend
[2:01:13] less. So our expenses don't utilize the
[2:01:16] necessarily what was budgeted before if
[2:01:18] the revenues do not make the amount that
[2:01:20] we could spend towards those budgeted
[2:01:22] items.
[2:01:23] >> And that would assume that you have a
[2:01:25] very high variable cost instead of a
[2:01:27] high fixed cost.
[2:01:29] Correct.
[2:01:30] >> Is that accurate?
[2:01:31] >> Yeah, I think so. Yeah.
[2:01:35] » Um I'd just be interested to see the
[2:01:37] numbers in terms of how you make up that
[2:01:39] kind of balance.
[2:01:42] Yes, it it will be tough and we may need
[2:01:44] to balance some of this throughout the
[2:01:46] department. We're hopeful that that can
[2:01:47] happen. Uh we've been very responsible
[2:01:50] in some of the things that we've been
[2:01:51] doing. Um and hopefully uh we don't need
[2:01:55] to ask for anything anything
[2:01:56] additionally, but that we can pounce
[2:01:57] that. Yeah.
[2:01:59] Well, I was just going like on the day
[2:02:01] passes, what percentage of your day
[2:02:04] passes end up getting sold in the months
[2:02:06] of like May and June? Like how much do
[2:02:09] you think you're going to be able to
[2:02:10] catch up with the start of summer on
[2:02:13] that portion?
[2:02:14] >> Day passes and memberships make up a
[2:02:16] majority of what we do. So memberships
[2:02:18] is the high amount. I think that's John,
[2:02:20] do you remember the numbers on that?
[2:02:25] I think that's over 40 or 50% of our our revenues and then day passes is
[2:02:30] follows that up very heavily with the
[2:02:32] amount of revenues that we bring in. So
[2:02:34] that is very high. So we are
[2:02:35] anticipating and hoping that our day
[2:02:36] passes will help uh catch us up
[2:02:39] >> and I I've had numbers last or neighbors
[2:02:42] last year talk about you know you can
[2:02:43] get just a three-month pass for the
[2:02:46] summertime and so there may be you know
[2:02:49] those sales that we have coming up
[2:02:52] pretty soon. I'm just wondering like how
[2:02:54] close we anticipate we'll be by the the
[2:02:57] end of the fiscal year because we have
[2:02:59] these seasonal demand issues.
[2:03:04] » We are also wondering the same thing.
[2:03:06] >> Okay,
[2:03:07] >> there are there are a lot of variables
[2:03:08] and a lot of new nuances here. Uh Provo
[2:03:11] has done an amazing job and our
[2:03:13] recreation center is amazing and I think
[2:03:15] there's an appetite for many that we've
[2:03:17] seen throughout the years to duplicate
[2:03:19] and replicate this. So there are um
[2:03:24] there are additional pressures that I
[2:03:26] that we see outside of here that are
[2:03:28] drawing patrons to other areas. Right.
[2:03:30] Spanish Fork has a new recreation
[2:03:31] center. Springville has come online
[2:03:32] since then. Right. We've got Vasa's
[2:03:35] 24-hour fitnesses, things that are
[2:03:37] attracting patrons in other directions
[2:03:39] that we are Yes. managing. And this
[2:03:40] looks like it's the first year that
[2:03:42] we're looking to see maybe an
[2:03:43] interesting uh effect of those types of challenges that we have.
[2:03:49] >> Yeah. just, you know, that's that's
[2:03:50] where what's behind my questions is like
[2:03:52] the competitive landscape has clearly
[2:03:54] changed and as we're seeing it in the
[2:03:56] early indicators and I just want to make
[2:03:58] sure that we have like a plan so that
[2:04:00] this doesn't become a cost center for
[2:04:01] the city.
[2:04:02] >> Correct. Correct.
[2:04:03] >> Yeah. In fact, what I would find helpful
[2:04:06] is to actually see what your projections
[2:04:09] are.
[2:04:09] >> Yeah.
[2:04:10] >> Um consolidated fee schedule and then
[2:04:12] also to break down what you're seeing
[2:04:14] the trends and what you plan to do.
[2:04:17] >> Correct. Um again I don't think anyone
[2:04:19] questions that it's a tremendous asset
[2:04:21] to the city. It it it's absolutely a
[2:04:24] wonderful asset
[2:04:25] >> right
[2:04:26] >> and um I just still have maybe others I
[2:04:28] don't know if others feel the same but I
[2:04:30] would find it helpful to have more data
[2:04:32] especially in terms of what you're
[2:04:33] seeing and what you're planning and what
[2:04:35] the contingencies are.
[2:04:37] >> Right. So I' I'd love to see
[2:04:38] >> so Foster if you could come back again
[2:04:40] before budget time like arrange it with
[2:04:42] Justin
[2:04:43] >> but see your c your CIP stuff or your
[2:04:46] consolidate schedule with it
[2:04:48] >> and then to see more of your forecasting
[2:04:50] and compare those percentages of how
[2:04:51] much did you make up the last three
[2:04:53] months historically or that kind of a
[2:04:55] thing and stats maybe on like what
[2:04:57] you've lost to I know I talked to
[2:04:59] Spanish Fork too they said
[2:05:01] >> they they opened one too. Yeah.
[2:05:03] >> And they said, "You guys are very
[2:05:04] helpful and a huge asset to them." But
[2:05:06] they
[2:05:06] >> stop helping these guys.
[2:05:08] >> I know. But they know that some of their
[2:05:09] residents use art, which seems crazy to
[2:05:11] me to drive that far for a gym. But
[2:05:14] >> we have the nicest pool. I mean, I've
[2:05:17] >> My kids love to swim and I've driven
[2:05:19] this whole state looking for good pools
[2:05:20] for these kids. And we have the nicest
[2:05:23] rec center.
[2:05:24] >> People came from Spanishport and
[2:05:25] Springville regularly and now they
[2:05:26] don't. So,
[2:05:26] >> correct. I'm saying that's what I'm
[2:05:27] saying.
[2:05:28] >> The secret sauce is out, right? people
[2:05:30] have known that we've I mean years past
[2:05:32] we've always contributed back to the
[2:05:34] general fund right from our recreation
[2:05:36] center. So these are things that we are
[2:05:38] very much aware of. We're trying to
[2:05:39] mitigate and I can get you more details.
[2:05:41] We we actually do talk and we have very in-depth conversations on these.
[2:05:45] Great.
[2:05:45] >> I heard there was a measles outbreak in
[2:05:47] Springville. So
[2:05:48] >> I I absolutely
[2:05:49] >> just start spreading those rumors.
[2:05:54] » Oh shoot. That is hot mics.
[2:06:01] Hey, I'm still here.
[2:06:05] » Uh, some of the amazing things that
[2:06:07] we've done, uh, we did transition to
[2:06:08] explore software, uh, and we repl our
[2:06:11] outdoor wave pool. So, those are some
[2:06:12] cool things at the rec center. Special
[2:06:14] events. Special events continue to be,
[2:06:17] uh, some of our high highest, uh, most
[2:06:19] valued city services as as part of our
[2:06:22] surveys. Uh, connecting residents and
[2:06:24] promoting civic pride, bringing the
[2:06:25] community together in meaningful ways.
[2:06:27] Um the uh the fees that are involved
[2:06:30] with special events don't completely
[2:06:32] cover the cost. We have many free events
[2:06:33] that we do, but we use every efficiency
[2:06:35] possible uh to make sure that they're as
[2:06:37] affordable as possible to residents.
[2:06:42] Cubby Center for the Arts. Uh there are
[2:06:43] no asks or needs for the CVY Center. Uh
[2:06:46] these are their performance measures. Um
[2:06:49] and some of their key accomplishments
[2:06:52] are I think some of their great lineups
[2:06:55] that they have this year. Mrs.
[2:06:56] Doubtfire, Tony Ganza, Colani Pa uh were
[2:06:58] some of the few to speak about. Uh but
[2:07:01] they have had an amazing time. Any
[2:07:03] questions? Yeah,
[2:07:04] >> just overall economic health of the CVY.
[2:07:07] >> Yes,
[2:07:08] >> we making money. Is it a cost center?
[2:07:10] You know, just give me a high level
[2:07:11] overview.
[2:07:12] >> Yes. So, the CVY center does have a have
[2:07:14] a subsidy. I think it's close to
[2:07:15] $500,000 subsidy. Um and also, uh wrap
[2:07:20] tax funding goes to that through the
[2:07:21] arts. Uh the CVY Center is doing well,
[2:07:24] healthy operationally. they've never
[2:07:25] been better. Uh they probably have seen
[2:07:28] would have liked to see more uh or
[2:07:32] better attendance or ticket sales as far
[2:07:34] as the bigger shows that they
[2:07:35] >> So so that's the main. It's not like we
[2:07:37] don't have enough programming. It's that
[2:07:38] the programming isn't attended well
[2:07:40] enough.
[2:07:41] >> It there isn't there the way
[2:07:44] >> or do we have open slots throughout the
[2:07:46] year?
[2:07:47] >> No, the booking is very competitive.
[2:07:49] Right. So if you're a dance company or
[2:07:50] if you're people come here I think
[2:07:53] historically we've seen the CVY as as
[2:07:55] >> half my year is spent at the CVY.
[2:07:56] >> Yes.
[2:07:57] >> Personal programming doesn't fill.
[2:07:59] >> That is correct.
[2:07:59] >> Doesn't sell seats.
[2:08:00] >> So a lot of time and everybody sees the
[2:08:02] CVY center programs as the CVY center.
[2:08:04] So anything that we do produce or how it
[2:08:06] comes in is seen as the Cubby Center
[2:08:08] regardless of whether or not that's a
[2:08:09] rental or something that we've invited
[2:08:11] to come in. And so there's a difference
[2:08:12] there. And then some of the bigger shows
[2:08:14] that we've had, we just haven't seen the
[2:08:15] ticket sales that maybe some other
[2:08:17] places do. Like it's weird because like
[2:08:19] I watched Mrs. Doubtfire at Eckles in
[2:08:21] Salt Lake last year. Sold out like for a
[2:08:23] whole week.
[2:08:24] >> Exactly.
[2:08:24] >> I went to the one here in Cubby. It was
[2:08:27] better than the one at Eckles and it was
[2:08:28] like half empty. Like I can't figure it
[2:08:30] out.
[2:08:31] >> Then Tony Danza was amazing. Yes.
[2:08:33] >> And he wasn't full.
[2:08:34] >> Yes.
[2:08:35] >> But it's interesting.
[2:08:37] >> Was it Oh, counselor Bogdan. Just to
[2:08:40] make sure I understand the reason why
[2:08:41] it's being subsidized is because these
[2:08:43] shows are not selling out.
[2:08:45] >> No, it's always carried a sub. In fact,
[2:08:47] that's come down. Actually, our
[2:08:48] subsidies come down. So, the subsidies
[2:08:50] always
[2:08:51] >> So, what would it take just for my my
[2:08:53] brain wave to make that thing net zero?
[2:08:57] >> Uh,
[2:08:58] >> these types of shows need to sell out,
[2:09:00] right?
[2:09:00] >> Yes.
[2:09:01] >> So, it is not attendance having any
[2:09:03] shows that is making this
[2:09:06] >> right now. I think from the CVY Center's
[2:09:08] perspective, it might be seen as a
[2:09:10] rental hall. Your children perform
[2:09:12] there. You get to see the Nutcracker in
[2:09:14] the winter time and things like that.
[2:09:15] But it's is it a performance hall? Those
[2:09:17] were some of the things that we've been
[2:09:18] diving into. So in dabbling through
[2:09:20] there, we've seen we just haven't seen
[2:09:22] the ticket sales that we were hoping to
[2:09:24] see.
[2:09:24] >> So what are we doing to better that?
[2:09:27] >> We're making sure that we balance those
[2:09:29] evenly. So we'll have some rentals,
[2:09:31] we'll have some performances, and we'll
[2:09:32] make sure that we uh we anticipate we
[2:09:35] make sure that we cover those costs
[2:09:36] responsibly. meaning that if we need to
[2:09:39] diversify more so that we don't send all
[2:09:42] our eggs in one basket with a
[2:09:44] performance or show that we're still
[2:09:45] covered with the rentals that we have.
[2:09:46] >> It's also important to acknowledge that
[2:09:49] none of them make money. They're all
[2:09:50] subsidized. All all performing arts
[2:09:55] centers are subsidized in the whole
[2:09:57] country. They're all subsidized
[2:09:59] and ours gets way less subsidy than
[2:10:01] most.
[2:10:02] >> Yeah, that's legit. But we are looking
[2:10:05] at that and trying to
[2:10:08] >> up our programming and down fees. Then
[2:10:11] >> the cost of having arts is that you do
[2:10:12] support it. It's not something that
[2:10:14] covers itself.
[2:10:15] >> Right. We get as close to coming to to
[2:10:17] covering those with our fees as
[2:10:18] possible. Just like
[2:10:19] >> Right. But what I'm asking is are we
[2:10:22] looking at doing more rentals and less
[2:10:24] of these shows?
[2:10:27] >> Yes.
[2:10:27] >> That's what we did this year.
[2:10:28] >> Yes.
[2:10:29] >> That's what we did this year and we're
[2:10:30] looking at more of that next year. So,
[2:10:32] we're being very strategic on the ones
[2:10:33] that we plan to bring in, the cost that would be, as well as weighing that
[2:10:37] against the cost of bringing a rental
[2:10:38] in, and then we would evaluate those two
[2:10:40] and see whether or not we would make
[2:10:42] money. We're always or break even. We're
[2:10:44] always trying to make sure that we're
[2:10:45] fiscally responsible there.
[2:10:47] >> Okay.
[2:10:48] >> For sure. Stephen, did you want to add
[2:10:49] anything?
[2:10:50] >> Good.
[2:10:51] >> Okay.
[2:10:51] >> Council Whitlock.
[2:10:53] >> Yeah. um kind of a similar line of
[2:10:56] questioning, but I just what would you
[2:10:57] say were some of our and the key lessons
[2:11:00] we learned from this last season?
[2:11:02] >> Yeah, you want to speak to that?
[2:11:04] >> Sure. Um
[2:11:05] >> Mike,
[2:11:12] » um certainly uh having
[2:11:16] sponsor and donor support is going to be
[2:11:19] important. That's what we spent the last
[2:11:21] three four months working almost
[2:11:23] exclusively on is bringing in
[2:11:26] sponsorships and donors to support this
[2:11:28] kind of programming. As uh Foster said,
[2:11:31] we were very disappointed in the and the
[2:11:33] ticket sales um and Patrice said um Mrs.
[2:11:37] Dfire and other shows because it's such
[2:11:40] an intimate space. People enjoy it so
[2:11:43] much more. We had one of the big theater
[2:11:45] bloggers, video vloggers, I guess. um in
[2:11:49] the state came and was just raving over
[2:11:52] the fact that she got to see this big
[2:11:54] show in this really intimate little
[2:11:56] space. But for next year, for instance,
[2:11:59] we are focusing almost entirely on
[2:12:02] rentals. That's been our bread and
[2:12:04] butter for for many many years. And even
[2:12:06] our season that we're putting together
[2:12:08] next year is a partnership with key
[2:12:11] rentals. So, we're not putting any
[2:12:15] of the city's money into next year's
[2:12:17] season. We're putting uh we're not
[2:12:20] putting any city money into it. We're
[2:12:22] looking at partnerships with renters,
[2:12:25] clients that we will provide additional
[2:12:28] marketing for, and additional support
[2:12:29] for, but we won't have the spending that
[2:12:32] we did this year.
[2:12:33] >> Could you give an example of a renter?
[2:12:36] Well, for like for instance like Utah
[2:12:38] Metropolitan Ballet, it's a big
[2:12:41] professional ballet company. They come
[2:12:42] in four times a year. Their biggest show
[2:12:44] is Nutcracker. In December, they come in
[2:12:46] for 13 performances.
[2:12:48] >> Um they might bring in uh half million
[2:12:51] dollars with Nutcracker.
[2:12:53] >> And we take um an 11% cut of all ticket
[2:12:58] sales. And we also uh charge rental fees
[2:13:01] and labor fees. So those things uh
[2:13:04] really do turn out to be rather
[2:13:07] profitable for us. It's great. And we
[2:13:11] have we have next to no I believe we
[2:13:14] have
[2:13:16] five or six open dates next year. We're
[2:13:19] that booked. You know, if you're a dance
[2:13:22] company and we turn people away all the
[2:13:24] time, unfortunately they're happy to go
[2:13:26] to high schools. They're happy to go to
[2:13:29] wherever. There are really we are the
[2:13:32] only professionally run venue in Yuakan.
[2:13:35] There is no other place where a dance
[2:13:37] studio or an academy can come and get
[2:13:40] completely professional support on a
[2:13:42] completely professional stage of
[2:13:44] professional ushers and uh front of
[2:13:48] house, back of house. So we're very
[2:13:52] popular. It's it's it's hard to get a
[2:13:54] date there. We get phone calls all the
[2:13:56] time people wanting to get a date. But
[2:13:59] we're fortunate in that we are almost
[2:14:02] full.
[2:14:04] >> Um,
[2:14:05] none of us are performing arts
[2:14:07] management, you know, uh, graduates
[2:14:10] here, I don't think. But I'm just
[2:14:11] curious, what about like high-end
[2:14:13] incremental sales, high margin
[2:14:14] incremental sales, like concessions? Are
[2:14:16] we thinking about adding concessions at
[2:14:19] all?
[2:14:20] >> Sure.
[2:14:21] >> Okay. It was
[2:14:22] >> looking very well.
[2:14:24] >> Where where was that? Where were the
[2:14:26] concessions? Just on the side there
[2:14:27] where they were out on the kids.
[2:14:30] >> They probably worked at the dance stage
[2:14:31] he went to, right?
[2:14:32] >> Well, no, they wouldn't be at the dance
[2:14:33] things like But Mrs. Doire, where was
[2:14:37] it?
[2:14:39] >> On the side.
[2:14:40] >> Candy bars and stuff.
[2:14:41] >> When you're looking at the the
[2:14:43] ticket window,
[2:14:44] >> I kind of remember just some candy bars
[2:14:46] pretty much.
[2:14:47] >> Candy bars.
[2:14:48] >> Yes.
[2:14:48] >> Okay. How did that do?
[2:14:50] >> It's done very well.
[2:14:51] >> Okay. Would you look to expand that and
[2:14:53] offer more offerings or
[2:14:55] >> Yeah, we're actually um thinking about
[2:14:58] having an upstairs because the people
[2:15:01] that come up the other thing the other
[2:15:03] thing we're looking at is is requiring.
[2:15:06] >> Yes.
[2:15:07] >> For our clients
[2:15:07] >> 100%. Yeah. People get really frustrated
[2:15:11] that there is nothing a 90minut
[2:15:13] performance but for some of our elders
[2:15:16] >> or guys like me.
[2:15:19] >> Yeah. Um, so that's when you sell the
[2:15:22] majority of your concession,
[2:15:25] not before the show, certainly not after
[2:15:27] the show.
[2:15:28] >> Okay.
[2:15:28] >> So, we imagine that with that policy in
[2:15:30] place next year,
[2:15:31] >> we'll do a lot better even better than
[2:15:33] we did this year, which was quite good.
[2:15:35] >> Were you were you asking about alcohol
[2:15:37] sales or were I just wondering that is
[2:15:40] topic that we want to approach. Okay.
[2:15:41] Thank you. Uh, the Cubby, just so you
[2:15:44] know, the CVY has brought in an
[2:15:45] additional $55,000 this year in grants
[2:15:48] and sponsorships. So, they've really
[2:15:49] been hustling, bringing a lot into the
[2:15:51] table. Okay. Cemetery. Um, this is the
[2:15:54] second of the supplemental requests for
[2:15:56] the cemetery. The cemetery is asking for
[2:15:58] $14,000 uh in their waterline item
[2:16:01] budget. Uh, that's just one supplemental
[2:16:02] that they are asking for. Everything
[2:16:04] else is covered. If you want more
[2:16:05] details about that, I'm happy to to
[2:16:07] oblige. Uh, there's just a financial
[2:16:10] mistake that happened there. Questions?
[2:16:12] Okay, moving on. Cemetery
[2:16:14] accomplishments uh and performance
[2:16:16] measures. We're going to skip through
[2:16:18] some of those unless somebody has any
[2:16:19] questions. Cemetery key accomplishments
[2:16:21] this year. Uh they installed the second
[2:16:24] phase of their internment options at the
[2:16:25] cremation garden. Respectfully conducted
[2:16:27] 311 internments and then partnered with
[2:16:29] Provo Veterans Council at American Pria
[2:16:31] Festival to host the memorial day
[2:16:33] celebrations that we do that annual
[2:16:34] annually. That's a an amazing tribute.
[2:16:37] Uh in December they collaborated with
[2:16:38] the Daughters of the American Revolution
[2:16:39] and they hosted the wreath laying
[2:16:41] ceremony and another tradition that they
[2:16:43] uh proudly continue. Uh the golf course is doing well uh really
[2:16:48] well. Uh almost 100,000 rounds of golf
[2:16:51] being played there uh this year
[2:16:53] hopefully uh and with this warm weather
[2:16:55] only only looking upwards. Uh they're
[2:16:58] asking for no appropriations. No
[2:16:59] additional uh budget needs there. Uh
[2:17:01] total rounds of of golf. So hopefully
[2:17:03] they'll hit theirund uh thousand,000
[2:17:06] played rounds target. Uh they they
[2:17:09] tracked the number of range balls. Youth
[2:17:10] participation has been up. Cost recovery
[2:17:12] has been over expectations. This is
[2:17:15] another U enterprise fund. Uh and then
[2:17:18] oh another good note is their economic
[2:17:20] impact on their tournaments that they
[2:17:21] hold about $4.5 million worth of
[2:17:24] economic impact there.
[2:17:26] Uh Temponos Golf Club uh some of the key
[2:17:28] performance uh key accomplishments that
[2:17:30] they had uh they replaced uh the driving
[2:17:33] net the driving range netting that goes
[2:17:35] around the driving range converted to
[2:17:36] 100% electrical golf carts. I don't know
[2:17:38] if you know, but they finished their
[2:17:40] golf shack last year and then they
[2:17:41] converted this year to 100% fleet uh
[2:17:44] 100% uh self-sustaining operation and on
[2:17:47] pace to over 100,000 rounds and they
[2:17:49] renovated 13 sand bunkers this year and
[2:17:51] they used zero gallons of potable or
[2:17:54] culinary water. So,
[2:17:57] good job. Uh parks and grounds uh parks
[2:18:00] and grounds is not uh asking for
[2:18:02] anything in addition. Um although it
[2:18:04] should just be noted uh with parks and
[2:18:06] grounds that as we do put on new parks
[2:18:08] and as we do put on new areas uh we use
[2:18:11] every opportunity um uh and every
[2:18:14] efficiency possible to maintain what we
[2:18:16] do and what we gain. So we're constantly
[2:18:18] adding acreages to our parks as you know
[2:18:20] Delta Gateway and some of these other
[2:18:21] parks that come online. Um and it that
[2:18:23] brings challenges with it. Um but the
[2:18:25] parks department does a good job of
[2:18:26] balancing the additional workload. Um,
[2:18:28] again, utilizing all those efficiencies.
[2:18:31] Some of their performance measures that
[2:18:32] they have this year, uh, trail use
[2:18:34] continues to rise with over about 10,000
[2:18:37] additional trips to the back country and
[2:18:39] Rock Canyon and other local trails. Uh,
[2:18:41] which also highlights the strong
[2:18:42] utilization of our parks. Uh, and the
[2:18:45] other, I think, key feature to note here
[2:18:47] is their volunteer hours. Uh, volunteer
[2:18:50] hours are very critical for them.
[2:18:51] Thousands of residents contribute dozens
[2:18:53] uh to projects each year and they play a
[2:18:55] vital role in maintaining and improving
[2:18:57] the parks and trails and public spaces.
[2:18:59] And then key accomplishments within the
[2:19:02] parks uh department. They've organized
[2:19:05] over 3,500 volunteers receiving uh the
[2:19:08] monetary value would be $184,000 in
[2:19:10] value. And they approved over one mile
[2:19:13] natural surface trails with three acres
[2:19:15] of native grasses and wildflower seating
[2:19:16] and over 460,000 trips to the Palmetrop
[2:19:19] River Trail. love that
[2:19:21] >> we this they are amazing. The amount of
[2:19:25] acreage that they can cover with the
[2:19:27] same amount of employees that they have
[2:19:29] is phenomenal. Okay, our projects and
[2:19:31] we'll get into a little bit of projects
[2:19:33] as we talked about the wraps as well. Uh
[2:19:35] the wrap tax uh no significant needs or
[2:19:37] asks, no additional costs or
[2:19:39] supplemental requests. These up here are
[2:19:41] all the grants that they have been
[2:19:42] awarded this past year. Uh and with the
[2:19:44] exception of the Utah County grant, all
[2:19:46] the others uh do require matching funds.
[2:19:49] uh the recreation park arts parks tax
[2:19:52] revenue and parks de development impact
[2:19:54] fees are primarily what we use uh to
[2:19:57] replace parks and recreational admin
[2:19:58] amenities.
[2:20:00] Um, and then some of the key department
[2:20:03] features, key accomplishments, uh, or
[2:20:05] sorry, this is again from, uh, the
[2:20:07] project's team. Rap tax renewal was
[2:20:09] amazing for us. Beaks ice arena. They
[2:20:12] improved the ADA parking out front of
[2:20:13] the ice arena. Made improvements to that
[2:20:15] entrance way. They regraded landscaped
[2:20:17] around the entrance to Tibonogus Golf
[2:20:19] Club and excavated and graded the
[2:20:21] Gillespie substation. That was kind of a
[2:20:22] one privile project that we worked on.
[2:20:25] Departmentwide, some of our
[2:20:26] accomplishments. Agency accreditation.
[2:20:28] every five years we apply for agency
[2:20:30] accreditation uh in order to be part of
[2:20:33] our uh national accreditation and we
[2:20:36] applied for that and awarded last uh
[2:20:38] this this year. Um and then the other is
[2:20:41] our wrap tax renewal. So 85% voter
[2:20:44] support which we think is amazing and a
[2:20:46] good um uh sense of community support
[2:20:49] that we put there. Any questions? Any
[2:20:52] other questions?
[2:20:53] >> Okay. And we're we're gonna see you
[2:20:55] again. You're good.
[2:20:55] >> Yeah. Okay.
[2:20:57] >> Yes.
[2:20:58] So, it's just asked of me, are we still
[2:21:00] charging for parking at the Epic?
[2:21:02] >> Only during certain tournaments.
[2:21:04] Actually, I don't know. Ryland's out in
[2:21:05] the hallway. Let me He's probably
[2:21:06] listening right here on a delay. Let me
[2:21:08] have him come in. And
[2:21:09] >> my understanding is just certain
[2:21:10] tournaments that it's a contract. It's
[2:21:12] part of their contract and they that's
[2:21:15] the profit share thing.
[2:21:16] >> Yeah, he's right here. Do we have any
[2:21:17] this year that have
[2:21:19] >> We have uh two tournaments right now in
[2:21:21] the fall
[2:21:22] >> that will have parking.
[2:21:24] Yeah.
[2:21:25] >> Yeah.
[2:21:28] Yes,
[2:21:31] >> we have just two tournaments in the fall
[2:21:33] that have contracted as part of their
[2:21:35] event.
[2:21:36] >> What is our portion of that?
[2:21:40] >> Uh that's negotiated groupto group. So
[2:21:43] it depends on uh their size of their
[2:21:45] event, how many cars we expect uh and
[2:21:48] how much uh overhead we'd have to cover
[2:21:51] with the employees that help implement
[2:21:53] that process. So, it's not always the
[2:21:55] same.
[2:21:58] >> It's not always the same and that's why
[2:21:59] we don't have standard rates for it.
[2:22:02] >> Yeah, it varies based on the event. So,
[2:22:03] in our contract, we have verbiage that
[2:22:05] just allows us to negotiate that because
[2:22:07] it depends on um the group is
[2:22:10] determining whether or not that's
[2:22:12] something they want to impose on their
[2:22:13] um participants as well. So, the price
[2:22:17] might change, the number of people might
[2:22:19] change, the percentage might change.
[2:22:20] It's all dependent on the group and
[2:22:22] whether or not we allow them to do it
[2:22:24] based on how many uh local teams versus
[2:22:27] out of state teams are coming to the
[2:22:29] event.
[2:22:29] >> Are we still selling things like ice
[2:22:32] pops and stuff like that out there?
[2:22:34] >> We have not done that yet ourselves. Uh
[2:22:36] we do have local food truck vendors that
[2:22:39] come for all the events that we
[2:22:40] coordinate that come and sell any food
[2:22:43] concessions at the park.
[2:22:45] >> That's good to know. Thanks.
[2:22:49] Right. Thank you so much, Foster.
[2:22:51] >> Thank you.
[2:22:53] >> All right. Next, a presentation
[2:22:55] regarding the wrap packs. Oh, Foster,
[2:22:58] this is you, too.
[2:22:58] >> It is.
[2:23:10] » So, we watched through uh the previous C
[2:23:12] uh work meeting where the question was
[2:23:15] asked, do we have a breakdown of what
[2:23:16] where everything is going for the wrap
[2:23:18] taxes? That was the major question that
[2:23:20] wanted to be answered. And so, do you
[2:23:21] want to bring up the Excel spreadsheet?
[2:23:24] >> Yes. So, if you can bring up the
[2:23:26] spreadsheet. Let's start there.
[2:23:30] » The Excel spreadsheet.
[2:23:32] >> Do you have the ex is this? This is
[2:23:34] >> This is the Excel. I made a little for
[2:23:36] you.
[2:23:37] >> Okay. Go ahead, John.
[2:23:42] » Thank you for
[2:23:44] having us here to talk more about the
[2:23:46] wrap tax. We did have our capital
[2:23:49] improvement plan 5-year uh outlook
[2:23:52] presented a couple months ago, but as a
[2:23:55] reminder, parks and recreation has over
[2:23:57] $200 million in identified capital
[2:23:59] projects.
[2:24:01] Historically, the department relied on
[2:24:03] $500,000 annual appropriations to
[2:24:06] address the aging infrastructure and
[2:24:08] build new parks.
[2:24:10] Uh the department of city went to work a
[2:24:12] little over 10 years ago to build a
[2:24:14] better funding sources to address the
[2:24:16] funding gaps. First source of funding is
[2:24:18] impact fees. These are dedicated to
[2:24:21] increasing the amount of park space and
[2:24:24] trails and cannot be used for existing
[2:24:26] facilities.
[2:24:28] The second funding source, the wrap tax,
[2:24:31] fills the gaps in what impact fees and
[2:24:33] other funding sources can't get. Um, I'm
[2:24:37] going to give some highlights of what
[2:24:39] the RAP tax has been able to do. Uh, the
[2:24:42] last 10 years it averaged 1.5 million a
[2:24:46] year in revenues. So, initially that was
[2:24:49] a little less and towards the end of
[2:24:50] that 10 years a little more, but it was
[2:24:53] about $15 million in revenues over the
[2:24:55] 10 years and it helped to make over 100
[2:24:59] park capital improvements. That includes
[2:25:02] over 21 existing parks um that were
[2:25:05] impacted by these funds. Five new parks,
[2:25:09] 10 playgrounds uh were replaced, 10 new
[2:25:12] playgrounds added, 15 restrooms replaced
[2:25:14] or improved,
[2:25:16] six new restrooms added, nine miles of
[2:25:19] trails and pathways resurfaced or
[2:25:20] widened, six tennis courts replaced, 16
[2:25:24] new pickle ball courts added, and arts
[2:25:29] projects and grants given to the CVY
[2:25:31] Center, the library, and local arts um
[2:25:35] groups.
[2:25:40] So
[2:25:42] this last year RAP tax was renewed for
[2:25:44] another 10 years and the current funding
[2:25:47] is around 2 million a year. We expect
[2:25:50] that to increase over time because if
[2:25:53] Provo does well economically, the WAP
[2:25:56] tax does well. It's a nice balance.
[2:26:01] So, our third source of funding, you
[2:26:04] know, let's see what's on slide two
[2:26:06] here.
[2:26:06] >> Y I'd like to go to the grants. You have
[2:26:09] the grants.
[2:26:10] >> These are the only two in the
[2:26:13] spreadsheet.
[2:26:14] >> Okay.
[2:26:14] >> I have to say available.
[2:26:17] >> No, I'll just cover verbally if that's
[2:26:18] okay. Um, so using these two internal
[2:26:22] funding sources of impact fees and wrap
[2:26:24] tax, we use that to go out and get
[2:26:27] grants, source more money because
[2:26:29] remember we've got a $200 million nut
[2:26:31] that we're trying to crack every year
[2:26:33] and uh whittle at. So we've been very
[2:26:36] successful in the last uh couple years
[2:26:40] of pairing that money with grant funds
[2:26:42] that are strategically placed with the
[2:26:45] projects that are selected.
[2:26:49] So, with the approximately $13 million
[2:26:52] in the last six years since I've been
[2:26:54] here, we've been able to contribute an
[2:26:56] additional $27 million in grant funds,
[2:27:00] accomplishing over $40 million in
[2:27:02] projects.
[2:27:07] » And it and it all happens because of the
[2:27:09] team that Provo has uh in within the
[2:27:11] department, within the city government,
[2:27:13] and we all work together to make this
[2:27:15] better than what we have today.
[2:27:18] So when we select these projects
[2:27:20] strategically, we go back to our parks
[2:27:23] and recreation master plan that has
[2:27:25] identified over 200 different projects
[2:27:28] throughout the city that community
[2:27:30] surveys have contributed to prioritizing
[2:27:33] this. It's a document that comes before
[2:27:35] the council for approval as well. And
[2:27:39] each year when we put together our CIP,
[2:27:42] we're adjusting slightly based on
[2:27:44] current world conditions of what those
[2:27:46] projects will be for that upcoming
[2:27:48] fiscal year, as well as looking into the
[2:27:51] future so that we're strategically
[2:27:54] sourcing grants and external funding
[2:27:57] sources to be able to move these things
[2:27:59] forward faster.
[2:28:02] And
[2:28:06] so these are ranked annually
[2:28:08] and that's what we have here. This just
[2:28:12] represents the wrap tax funds that we
[2:28:15] are proposing to move these projects
[2:28:18] forward. Some are paired with grant
[2:28:21] funds
[2:28:22] such as
[2:28:25] the Fort Utah all wheels park, the Provo
[2:28:27] River Trail Central, Harmon Park
[2:28:30] playground and field lighting and the
[2:28:32] parks and recreation master plan with
[2:28:34] the recreational trails component.
[2:28:37] The others are the funding source for
[2:28:40] that project are coming from RAP tax.
[2:28:44] So with that
[2:28:47] I wanted to start our discussion.
[2:28:52] » All right.
[2:28:55] Any questions on the wrap tax?
[2:28:58] I know I've got a lot of feedback from
[2:29:00] citizens and a common thread that I hear
[2:29:04] is using the wrap tax for um shade sales
[2:29:10] and especially shade at existing parks,
[2:29:14] you know, that aren't going to be redone
[2:29:15] anytime soon. But that's something I've
[2:29:18] heard. Just an FYI.
[2:29:22] » Yes,
[2:29:25] >> I do have a question. So, can we go to
[2:29:27] the arts part of it? Instead, we're just
[2:29:30] looking at the part, right?
[2:29:32] >> Yeah. So, you have to we make that
[2:29:34] bigger.
[2:29:35] >> Yeah. So, these dollar amounts here are
[2:29:38] reflected in this more granular
[2:29:41] breakdown up here.
[2:29:43] >> So, they're the same numbers year to
[2:29:44] year.
[2:29:45] >> Can we zoom up on that, Kevin?
[2:29:47] >> Yeah.
[2:29:48] >> So, why do we have so much money going
[2:29:50] to the library? We talked about the
[2:29:51] library having their own funding source.
[2:29:54] Yeah,
[2:29:55] >> that's a great question. Um,
[2:29:57] >> why are we subsidizing the library here?
[2:30:00] >> The library has historically been
[2:30:03] applying for the local arts grant funds.
[2:30:06] So, let me back up just a little bit.
[2:30:08] Um,
[2:30:09] >> RAP doesn't just do our capital
[2:30:11] projects, it also supports our local
[2:30:14] arts programs. And as part of that, we
[2:30:17] have uh put funding set aside for um
[2:30:23] local arts projects. So external to
[2:30:25] Provo City projects, local arts projects
[2:30:28] of 25,000 a year has historically been
[2:30:31] the amount of funds set aside. And there
[2:30:33] was a competitive or is a competitive
[2:30:35] grant process where people apply for
[2:30:38] those funds. and the library was one of
[2:30:40] those applicants um for and my
[2:30:44] understanding is is that there's art
[2:30:46] exhibits within the library that they
[2:30:48] would apply for those funds and in
[2:30:52] recent discussions with between the
[2:30:54] directors to save the effort of the
[2:30:57] library applying for those funds. There
[2:31:00] was an agreement that there would be a
[2:31:02] set aside amount to go to those art
[2:31:04] exhibits within the library.
[2:31:07] >> Right. But the library was only getting
[2:31:08] only 2,000 a year through those grant
[2:31:10] programs. This is five times the amount.
[2:31:13] This is 10,000 instead of 2,000 set
[2:31:15] aside.
[2:31:16] >> Oh, so and it was purposely set aside by
[2:31:18] us as opposed to the art board picking
[2:31:20] it.
[2:31:21] >> Yes.
[2:31:23] >> And
[2:31:25] there there may have been an award of
[2:31:27] 2,00 there's oftent times a request for
[2:31:29] more and it's whittleled down because of
[2:31:32] the limiting available funds. So, also
[2:31:35] with the renewal of the wrap tax, we
[2:31:37] have tripled the amount of arts grants
[2:31:40] that we're setting aside each year. So,
[2:31:42] going from 25,000 a year to 75,000 a
[2:31:45] year for local arts grants to help fill
[2:31:47] the need that of requests that are
[2:31:50] coming in.
[2:31:51] >> I think it's too much. I I think that's
[2:31:53] too much for the library.
[2:31:55] Um, honestly, if you even tripled it,
[2:31:59] that's 6,000 versus 10,000. This is five
[2:32:01] times the amount that they were getting
[2:32:03] previous.
[2:32:05] I So I I don't agree with that one.
[2:32:08] What's music festivals? What's that? Why
[2:32:10] is that up there?
[2:32:12] >> There's no money in it.
[2:32:13] >> Okay.
[2:32:15] >> Um
[2:32:17] with the
[2:32:19] wrap tax funding availability.
[2:32:22] Make sure I've got my note on this.
[2:32:25] the
[2:32:27] ability to appropriate funds for uh
[2:32:31] musical performances or or cultural
[2:32:35] uh performances within the city is an
[2:32:37] allowable usage of the arts funds with
[2:32:40] within the realm of the RAP tax write up
[2:32:43] for the uh
[2:32:48] it's not a bond that everybody voted on
[2:32:50] but the uh
[2:32:50] >> it could be but it's that there's
[2:32:52] nothing in it for the next
[2:32:53] >> Well, I realize there's nothing in it
[2:32:54] but it's still a a category on there.
[2:32:56] >> I'm assuming it's like the rooftop
[2:32:57] concert series or things like that. I'm
[2:33:00] saying it could be that could be a music
[2:33:02] festival.
[2:33:02] >> So, can I ask a question? Um, we have an
[2:33:05] arts council and don't don't they get
[2:33:07] together and talk about this kind of
[2:33:09] thing, right? I mean,
[2:33:12] >> so the arts council will get together
[2:33:14] and approve the applications for those
[2:33:16] arts grants as they are. So, the set
[2:33:19] aside amount that we have and John will
[2:33:21] show there's an increasing amount for
[2:33:23] the community art grants. Those are seen and heard by that Rex,
[2:33:27] >> right? So I guess there is a process by
[2:33:29] how
[2:33:30] >> right that's what the 75,000
[2:33:32] >> has to be.
[2:33:32] >> But this 10,000's new that was done
[2:33:34] purposely just for them as opposed to
[2:33:37] council dipping it out like it's usually
[2:33:39] been done in the past.
[2:33:40] >> Thank you.
[2:33:41] >> And there had been lots of community
[2:33:44] feedback and support during the campaign
[2:33:46] for the wrap tax indicating that the
[2:33:48] community wanted to have more funds
[2:33:50] going for arts. you know, parks has been
[2:33:53] using it well, but they wanted a a
[2:33:56] greater percentage to go to art specific
[2:33:59] things. So, tripling the community art
[2:34:02] grants and adding for the library art
[2:34:04] gallery is part of that response to the
[2:34:07] public feedback. That was
[2:34:09] >> that's definitely not the feedback I've
[2:34:11] heard.
[2:34:12] >> I've heard parks is all they care about.
[2:34:14] >> Yep. Parks. That's me, too. So in in
[2:34:17] general that's the way that we have used
[2:34:18] our wrap tax funding uh is for capital
[2:34:21] improvement projects something that will
[2:34:23] last for a long time and be able to
[2:34:24] benefit the community as a whole over
[2:34:26] time. That's kind of been the philosophy
[2:34:27] that we've been using up until now that
[2:34:30] it is there are approved uses of it.
[2:34:32] Yeah.
[2:34:33] >> So what percentage of the art tax of the
[2:34:36] bra tax goes to the arts and how do we
[2:34:39] break that out? In the past, the the
[2:34:41] prior 10 years, I believe it was 12% was
[2:34:45] our target for the full distribution. So
[2:34:48] that $15 million, 12% was what we were
[2:34:51] targeting to the arts and trying to hit
[2:34:54] that every year. That's where the 330
[2:34:57] well was 330,000. It's increase this
[2:35:00] year um each year for both the arts
[2:35:04] grants and the CVY Center for the Arts.
[2:35:07] Um, that's where those funds were
[2:35:09] targeted for that. Now we're targeting
[2:35:11] 18%.
[2:35:14] >> I I do think in our code it can't be
[2:35:16] divvied out. The arts council has to
[2:35:18] vote on that 10,000. It has to be done
[2:35:20] all by the arts council. I think in our
[2:35:22] code, do you know if that's the case?
[2:35:26] >> Well, wrap tax perhaps not the percent
[2:35:30] for the arts fund which is separate.
[2:35:32] Okay.
[2:35:32] >> And comes from CIP internal CIP
[2:35:35] projects. Okay,
[2:35:37] >> that is money strictly dedicated to arts
[2:35:40] projects which is then has to go through
[2:35:42] the arts council and can only be spent
[2:35:44] on art as
[2:35:46] >> okay so that's different than this
[2:35:47] >> but it's overlaps because it overlaps
[2:35:51] with wrath tax because wrap tax is also
[2:35:54] art funding and then percent for the
[2:35:56] arts is another fund that is just arts
[2:35:58] fun
[2:35:58] >> so there is an overlap
[2:36:01] not the same funds
[2:36:03] >> where's a percent do we have a percent
[2:36:05] of the arts
[2:36:06] breakdown of where that's been going.
[2:36:08] Can we get that emailed to us?
[2:36:12] >> From my understanding that it is in the
[2:36:14] capital improvement plan. It's one of
[2:36:16] the line items on each project.
[2:36:18] >> But Becky, are you asking about the
[2:36:21] percent for the arts program that Malia
[2:36:23] just mentioned or the percent in the
[2:36:24] wrap?
[2:36:24] >> The percent of the arts that Malia just
[2:36:26] mentioned because it's going somewhere.
[2:36:28] It'd be nice to get where that is going
[2:36:31] to because I realize that
[2:36:34] you it it happens when capital
[2:36:37] improvement programs are uh construction
[2:36:40] happens. It's a percent of the project.
[2:36:43] >> I don't know that we've had this current
[2:36:45] fiscal year first year that we've paid
[2:36:48] into it. So FY26 there should be fund
[2:36:50] balance that the arts council is then
[2:36:52] looking at and figuring out how to
[2:36:54] spend. FY27 also has I believe Justin
[2:36:57] sent out a report on the finance when we
[2:37:00] went over CIP over the next five years
[2:37:03] how much funding will go into the
[2:37:05] percent for the arts fund but then the
[2:37:07] arts council will need to divide up
[2:37:09] among arts projects
[2:37:12] across the city but I think this fiscal
[2:37:14] year was the first one that money got
[2:37:16] added
[2:37:17] >> 26
[2:37:17] >> yes money got added into that fund
[2:37:20] balance
[2:37:21] >> so is it just sitting in the fund
[2:37:22] balance or has it been distributed
[2:37:24] Hey, that's a great question. I had
[2:37:26] understood that the funds needed to
[2:37:29] either be used on the project for art
[2:37:31] enhancements on the project to that
[2:37:33] amount or it went into an account.
[2:37:40] » So, it's it's sitting in an account at
[2:37:41] this point in time and it has not been
[2:37:43] used towards anything else
[2:37:45] >> or it's still in the project account.
[2:37:48] >> Yeah. So, this is the first year that a
[2:37:49] project is available for that funding.
[2:37:52] So, it hasn't been
[2:37:55] started yet. Um, and it's just the new
[2:37:58] city street lighting.
[2:37:59] >> So, it is still sitting in an arts
[2:38:01] account and it hasn't been busy yet.
[2:38:03] >> Well, it technically isn't anywhere yet
[2:38:06] because we haven't even started this
[2:38:07] week.
[2:38:08] >> Oh, so it's for 27, not 26.
[2:38:11] >> Okay, I got it. I thought it was 26, not
[2:38:13] 27.
[2:38:14] >> Okay, so this right here is is accounts
[2:38:17] for 18% of the RAV tax.
[2:38:20] >> Yes. And this is how it's
[2:38:23] going to be spent.
[2:38:26] Okay. And we we've traditionally used it
[2:38:28] for maintenance for the cubby as well.
[2:38:30] >> Yes. For capital improvements around the
[2:38:33] that either increase efficiencies of the
[2:38:35] facility or our safety uh things that
[2:38:38] need to be addressed.
[2:38:39] >> So is a portion of this also going to
[2:38:41] that percent for the arts because it is
[2:38:43] a capital improvement?
[2:38:44] >> Yes, it is considered part of that
[2:38:45] percent for the arts.
[2:38:48] >> Okay. the 18% from raft tax not from the
[2:38:52] project
[2:38:54] specific account
[2:38:56] >> but but this is in CIP so is this a
[2:39:00] percent of the arts
[2:39:02] is a percentage of this
[2:39:04] >> we have we have overlapping terms here
[2:39:07] >> the yeah the percent for the arts is a line item in the capital
[2:39:11] improvement plan that is specific to
[2:39:13] every project in the capital improvement
[2:39:15] plan this is wrap tax allocation
[2:39:19] for the arts out of rap tax only.
[2:39:23] >> Right.
[2:39:23] >> So this this is that 18% that we are
[2:39:26] targeting of the overall revenues of rap
[2:39:29] tax to be used for art.
[2:39:31] >> But it's not going to overlap in and a
[2:39:33] percentage of this go back. Right.
[2:39:34] >> Correct.
[2:39:35] >> It's just going to be used for this only
[2:39:37] and no percent for the arts.
[2:39:40] >> Thank you.
[2:39:42] >> Council Hoben.
[2:39:43] >> So what's the dollar amount difference
[2:39:45] between the 12% and the 18% like
[2:39:47] year-over-year? How much more is going
[2:39:49] to arts?
[2:39:50] >> Well, you have an increase of revenue.
[2:39:52] >> Sure.
[2:39:53] >> Is one thing. So, we averaged 1.5
[2:39:56] million a year the past 10 years. So,
[2:39:58] that's where the $330,000
[2:40:02] a year for arts comes from. This next
[2:40:05] forecast is we're going to be somewhere
[2:40:06] about 2.5 million is our estimate on
[2:40:10] average for the next 10 years. Um, you
[2:40:13] know, part of that's just inflation and
[2:40:15] part of that's just Provo doing well
[2:40:16] economically.
[2:40:18] So that's that's where this number
[2:40:21] incrementally just keeps growing with
[2:40:22] it.
[2:40:24] >> I would say the average there about 375.
[2:40:26] >> So maybe we went up 100 to 150K for
[2:40:29] arts.
[2:40:30] >> Yes.
[2:40:31] >> And um can is are there uh new line
[2:40:35] items on here? I mean the maybe the
[2:40:38] library art gallery might be new might
[2:40:39] be part of that 150 additional
[2:40:42] >> and the increase the library art grants
[2:40:44] by 25,000 to 75,000.
[2:40:47] Okay. I'm just curious maybe like a side
[2:40:50] by side like what has been added?
[2:40:54] Could we see that
[2:40:56] like highlight what's new? What are we
[2:40:58] spending that extra 150k on?
[2:41:02] >> Is that easy to provide?
[2:41:04] >> I this this is the projected use. So
[2:41:07] you're asking for prior years. Well, so
[2:41:10] if if we were to see something like this
[2:41:12] from a prior year, what's the variance
[2:41:14] between that year and what you're
[2:41:16] projecting now? And what is different?
[2:41:19] You know, what have you added?
[2:41:20] >> Like how much more is being used at the
[2:41:22] cubby or how much more is in a library
[2:41:24] in the community arts grants?
[2:41:26] >> Yeah, the majority of the increase is
[2:41:28] those um
[2:41:31] can be going on percentage for the arts,
[2:41:33] but it's the um
[2:41:35] >> I got you messed up.
[2:41:35] >> You've got an community arts grants.
[2:41:38] That's that's 50,000 increase
[2:41:40] >> and then the 10,000
[2:41:41] >> 10,000 increase for library that's
[2:41:42] 60,000 and then there's um the CVY
[2:41:46] center program
[2:41:46] >> and the rest would be
[2:41:48] >> probably okay
[2:41:49] >> so it's about half
[2:41:50] >> all right thank you
[2:41:53] >> um councelor Christensen
[2:41:54] >> I'm sorry to be sorry to be slow
[2:41:58] I can see exactly what we're talking
[2:41:59] about when you talk about the CVY center
[2:42:02] because it's listed right there
[2:42:05] I I don't know what community arts
[2:42:07] grants and the library specifically what that's being spent on. Can you tell
[2:42:13] me that? Is it just not listed or you
[2:42:15] don't?
[2:42:15] >> No. No. I'm going to start with the
[2:42:16] library because my understanding is they
[2:42:18] have art displays exhibits in a room or
[2:42:22] two in the library that can be walked by
[2:42:24] the public
[2:42:25] >> like the National Geographic thing
[2:42:26] >> like the attic.
[2:42:27] >> Yeah, they have the attic. Okay.
[2:42:29] >> And so this this funds the u artist or
[2:42:34] the the use of the room for that period
[2:42:36] of time. Got it. Okay. Now,
[2:42:38] >> and a quick note on that is they like to
[2:42:40] be able to bring in shows from outside
[2:42:42] artists and they've had to cut back on
[2:42:44] that with the budget cut and so they've
[2:42:46] only done local artists for the most
[2:42:49] recent one, but in order to bring in art
[2:42:52] shows for the community, that's part of
[2:42:54] what this
[2:42:54] >> Okay. So, the library art gallery is
[2:42:57] Yes.
[2:42:57] >> bring in uh shows or exhibits.
[2:43:00] >> Yes.
[2:43:00] >> Okay. Um how about the community arts
[2:43:03] grants?
[2:43:04] >> Yes. It varies. The submissions come
[2:43:08] from the community and they have
[2:43:10] historically been up to $5,000 awards
[2:43:13] for grants. These could go towards
[2:43:15] performing arts um like dance or um
[2:43:21] people who can't afford tickets to the
[2:43:22] Nutcracker. They would cover the cost of
[2:43:25] entry for those people in it. They
[2:43:27] specifically asked for that in their
[2:43:29] grant application.
[2:43:30] >> Downtown Murals.
[2:43:31] I've got another
[2:43:34] >> Bear in the Park. This is what the arts
[2:43:36] council is deciding on.
[2:43:38] >> Yes. From the grand.
[2:43:40] It's like CDBG.
[2:43:41] >> Yeah. Yeah.
[2:43:43] >> We have the last say in SBG
[2:43:46] >> and we don't ours.
[2:43:48] >> Yeah. Got that. Thank you. That's
[2:43:49] helpful.
[2:43:52] >> I also want to point out that there's
[2:43:54] also an art gallery and exhibits that
[2:43:57] happen in the CVY center. So very
[2:44:00] similar uh between the library and the
[2:44:04] cubby center for those displays. Please
[2:44:06] say one or the other.
[2:44:07] >> Thank you.
[2:44:10] >> All right. Any more questions?
[2:44:13] Okay. Thanks you guys.
[2:44:16] >> Thank you.
[2:44:16] >> All right. Are you guys okay if we forgo
[2:44:18] the break?
[2:44:21] >> But you're okay. Five minutes then. Five
[2:44:24] minutes. Otherwise, keep going. We'll
[2:44:26] >> see you.
[2:44:30] Recording stopped.
[2:44:32] >> All right, we're going to start.
[2:44:36] >> Recording in progress.
[2:44:39] >> All right, next we have a presentation
[2:44:40] regarding debts and revenues. And this
[2:44:42] be presented by Dan Flet, our
[2:44:44] administrative services interimm
[2:44:45] director.
[2:44:49] » Welcome, Dan.
[2:44:50] >> Thank you, councel. Um, I'm going to
[2:44:54] talk about debt first and then Kelsey's
[2:44:56] going to talk a little bit about
[2:44:57] revenue. Can you bring up the
[2:45:03] » This is one of my favorite spreadsheets
[2:45:05] and every year I apologize to the
[2:45:08] council for how small it is. I'll um
[2:45:12] I'll I'll let me just start and I'm
[2:45:14] going to talk about each column first
[2:45:16] and then um we can look at some of the
[2:45:18] details. But in the lefth hand column is
[2:45:20] a description of the debt and and uh it
[2:45:24] we've tried to include in the
[2:45:26] description um what the debt was
[2:45:28] utilized for. So for instance these
[2:45:31] first two items here are general obl
[2:45:33] obligation bonds. The city has two sets
[2:45:36] of general obligation bonds. One was for
[2:45:40] um the rec center one set of bonds and
[2:45:42] the other is for city hall and fire two
[2:45:45] for instance. Um the the first set of
[2:45:49] bonds listed here, rec center
[2:45:50] refinancing bond for instance, it says
[2:45:54] uh series 2017.
[2:45:56] Uh most of you know that the rec center
[2:45:59] came online much before that. That's
[2:46:02] this was a refinancing that was done. It
[2:46:05] saved the taxpayers
[2:46:08] approximately $2.8 million when we
[2:46:10] refinanced them in 2017.
[2:46:13] What I'll mention along those lines is
[2:46:16] as we move across, we'll see interest
[2:46:18] rates and I'll talk about those, but we
[2:46:20] continually monitor
[2:46:23] uh what the interest rates are on all of
[2:46:25] our debt and how that compares to the
[2:46:27] market and whether or not it would make
[2:46:29] sense to refinance the debt at any point
[2:46:32] in time. Unfortunately, as you can
[2:46:34] imagine, right now, um the interest rate
[2:46:37] environment is not necessarily in our
[2:46:39] favor for refinancing. That's the bad
[2:46:41] news. The good news is if you look at
[2:46:43] our interest rates um they're all very competitive uh in today's market.
[2:46:49] Um so moving down the list um the next
[2:46:52] one I'll mention uh is telecom 2004
[2:46:56] sales tax bonds. These were the bonds
[2:46:58] that were issued uh 20 years ago to
[2:47:01] finance uh the fiber network that
[2:47:04] ultimately was acquired by and operated
[2:47:07] by Google Fiber. The good news is um
[2:47:11] those bonds,
[2:47:13] the other thing I should mention is all
[2:47:15] of these numbers are as of June 30th,
[2:47:17] 2025, the date of our last audited
[2:47:20] financial statements. They tie to those
[2:47:22] audited financial statements. Uh when
[2:47:25] you go across, you can see the final
[2:47:27] maturity date, uh the telecom bonds,
[2:47:30] final maturity date, February 15th,
[2:47:33] 2026. Those are paid off. Um now there
[2:47:37] are no more payments on those. So that's
[2:47:39] kind of exciting to have um debt drop
[2:47:41] off. Um moving down, we have cemetery
[2:47:45] bonds that were were issued to expand
[2:47:48] the cemetery uh several years ago. Uh
[2:47:52] and then um we move into notes payable.
[2:47:56] We have a section 108 note payable that
[2:47:59] was utilized um for airport
[2:48:02] improvements. We have leases. These
[2:48:04] leases are the first two fire apparatus
[2:48:08] leases are taxexempt leases.
[2:48:11] Um, and they're utilized to
[2:48:15] they're leases under the Internal
[2:48:17] Revenue Code. Think of them as the
[2:48:20] reason they're leases is so that they
[2:48:22] can be taxexempt. Um, meaning the
[2:48:24] investor is willing to accept a lower
[2:48:26] interest rate, meaning Provo City pays a
[2:48:29] lower interest rate and it's more
[2:48:31] cost-effective. Um, but they're not
[2:48:33] leases like a car lease where you turn
[2:48:36] the car in at the end of the lease.
[2:48:38] They're really financing leases where we
[2:48:41] own the fire trucks at the end of of the
[2:48:44] lease. And so we have two of those. And
[2:48:47] then we have just a regular lease. We
[2:48:49] pay monthtomonth. We commit uh several
[2:48:52] years at a time for the justice court
[2:48:55] building premises. Moving down into the
[2:48:58] business type activities,
[2:49:00] um you can see that most of these are
[2:49:02] utilities or they're the airport or
[2:49:05] they're the golf course. And these are
[2:49:08] what are known as revenue bonds. They're
[2:49:10] repaid with revenues from uh the various
[2:49:13] systems. Um and if you look across, we
[2:49:18] uh again the principal balance as of
[2:49:20] June 30th, 2025
[2:49:22] is listed um for each one of them. The
[2:49:25] annual payment is principal and interest
[2:49:29] um that we pay on an annual basis for
[2:49:32] each of these debt um items that are
[2:49:35] issued. And then um you can see the
[2:49:38] original issue amount um and that gives
[2:49:41] you an idea of what we originally
[2:49:43] borrowed, what we've paid down to at
[2:49:45] this point in time. The next column is
[2:49:48] interest rate and then the next column
[2:49:51] is repayment terms. uh the the long so
[2:49:55] we have uh 20 years uh on each one of
[2:49:59] those is the longest on this schedule.
[2:50:02] The final maturity date meaning the date
[2:50:05] that we make the last payment. And then
[2:50:07] the next column is uh where is the
[2:50:11] payment funding source derived from as
[2:50:13] you can see for the utility revenue
[2:50:15] bonds um they come from the various
[2:50:18] systems. Um the U dot airport bonds uh
[2:50:21] will receive MAG revenues to repay those
[2:50:25] and then um golf course revenues for
[2:50:27] both the golf carts uh and the golf
[2:50:30] course maintenance equipment.
[2:50:31] >> Wait, Dan.
[2:50:32] >> Yes.
[2:50:32] >> Did you say that there were revenue
[2:50:34] bonds for the golf course?
[2:50:36] >> The the golf course ones
[2:50:39] >> leases
[2:50:40] >> are um they're actually leases,
[2:50:42] >> right?
[2:50:43] >> And there's two types of leases here.
[2:50:45] The golf course maintenance equipment
[2:50:47] lease. We own the equipment at the end
[2:50:49] of the lease. It's a taxexempt lease as
[2:50:52] you can see in the next column. The next
[2:50:55] one is just a regular lease. And I'll
[2:50:57] compare it to like if you lease a car.
[2:50:59] We've leased the golf carts uh for
[2:51:04] essentially 5 years and then at the end
[2:51:06] of at the end of the lease we turn them
[2:51:10] back in and start a new lease on new
[2:51:13] golf carts is how we've done that. And
[2:51:14] that way um it's been more cost
[2:51:17] effective to do it that way and it
[2:51:19] ensures that we keep um reasonably new
[2:51:23] equipment available for golf carts. It
[2:51:26] also has enabled us to move from gas to
[2:51:30] electric uh to where the fleet's all
[2:51:32] electric at this point in time.
[2:51:34] >> So that is very helpful. But there are
[2:51:36] no revenue bonds for the golf.
[2:51:38] >> There's no revenue bonds for the golf
[2:51:40] course. you know, it's strictly the
[2:51:42] maintenance equipment and the golf
[2:51:44] carts. Uh, it's all that's there. And
[2:51:46] then the last uh I mean the second to
[2:51:48] last column is the tax status. And I'll
[2:51:51] just highlight a couple of items there.
[2:51:53] So, as I mentioned, um, in most cases,
[2:51:58] we're eligible as a city to issue debt
[2:52:01] on a tax exempt basis, meaning um that
[2:52:04] the investor does not pay uh income tax
[2:52:08] on the interest income they receive um
[2:52:12] from buying these bonds. And and because
[2:52:15] they don't pay tax, they're willing to
[2:52:16] accept a lower rate and therefore the
[2:52:18] city pays a lower rate in some cases. So
[2:52:23] you'll see three wastewater well these
[2:52:25] two wastewater revenue bonds and the
[2:52:28] water revenue bonds
[2:52:30] um are taxable
[2:52:33] and um the reason that those are taxable
[2:52:37] is they the investor is the department
[2:52:40] of water quality and so when we issued
[2:52:43] those bonds because the department of
[2:52:45] water quality doesn't pay income tax
[2:52:47] they're indifferent as to whether or not
[2:52:50] it's taxexempt or Uh and from our
[2:52:53] perspective because they were
[2:52:54] indifferent and it didn't it didn't have
[2:52:57] any impact on the rate uh because they
[2:52:59] don't plan on selling those bonds. They
[2:53:01] can't sell those bonds. Um we asked that
[2:53:05] they be taxable
[2:53:07] uh because
[2:53:09] um you have a much lower likelihood of
[2:53:13] an IRS audit on a taxable bond versus a
[2:53:16] tax exempt bond. I think since I've been
[2:53:20] at Provo, we've had three different
[2:53:21] audits of our taxexempt issuances. Um,
[2:53:25] and so it's fairly common that the IRS
[2:53:28] looks at those and so we structure them
[2:53:29] that way because there was um not a
[2:53:32] benefit to the investor and only a
[2:53:35] detriment to us and it didn't change the
[2:53:37] overall interest rate. As you can see,
[2:53:39] two of them are one half of 1% and the
[2:53:42] other's at 1%. So um it was the
[2:53:44] department of water quality
[2:53:46] incentivizing the city to make
[2:53:48] improvements to the wastewater system
[2:53:50] and also uh the water system.
[2:53:53] Um the one column I think I miss missed
[2:53:56] is the call date call feature. Um,
[2:53:59] generally when you issue publicly traded
[2:54:01] debt, um, the investor wants to know
[2:54:06] that they'll get, if it's a 20-year
[2:54:08] issuance, that they'll get at least 10
[2:54:09] years, um, before you refinance the bond
[2:54:14] away from them. And so we, um, when we
[2:54:18] issue debt, um, generally there's a call feature that's 10 years
[2:54:23] down the road. So, we can't refinance
[2:54:25] the debt during the first 10 years, but
[2:54:28] during the second 10 years, we can. And
[2:54:30] that's where we analyze all the time.
[2:54:32] Uh, if there um is an opportunity to
[2:54:35] refinance at a lower rate when there's
[2:54:38] no prepayment penalty, we could actually
[2:54:41] do it at any point in time. Um, I I
[2:54:45] doubt we're going to be refinancing
[2:54:47] these two at one half of 1%, you know.
[2:54:50] um that would be a very different
[2:54:52] environment than we're in today.
[2:54:54] Finally, the last column is the the
[2:54:56] ratings on each of the bonds that are
[2:54:59] publicly issued, publicly traded, um
[2:55:02] sold in the public markets. And there's
[2:55:04] three rating agencies. Uh S&P, standard
[2:55:07] and pores, Moody's, and Fitch. And you
[2:55:09] can see for each of our issuances
[2:55:12] um what the ratings are. Um, AAA is the
[2:55:15] top rating. Um, and and um the we've
[2:55:20] received AAA ratings on most of our
[2:55:23] sales tax related bonds. These airport
[2:55:26] sales tax bonds, they're backed by
[2:55:29] collateralized by sales tax. Uh, and so
[2:55:32] overall, Provo's ratings um are
[2:55:35] excellent. They're considered investment
[2:55:37] grade or above. Um and it just reflects
[2:55:41] u the overall management of the city um
[2:55:44] from the administration and councils
[2:55:46] over time. So that's uh a very high
[2:55:50] level overview of of where the debt is.
[2:55:54] I'd be happy to answer any questions.
[2:55:57] >> Thanks Dan. And I think an important
[2:55:59] thing to your mind, I think we talked
[2:56:00] about this last year, but this the state
[2:56:05] controls how much debt we're even
[2:56:06] allowed to have based on our assessed
[2:56:07] value. And we are like roughly 10% of
[2:56:10] what the state would allow us in debt.
[2:56:12] And that's huge.
[2:56:13] >> And I should have brought that. But we
[2:56:14] are very very low very low
[2:56:17] >> in terms of what we could legally issue.
[2:56:19] We could issue hundreds of millions of
[2:56:21] dollars more than we've issued uh in
[2:56:24] debt. Um but um that's not how Provo has
[2:56:28] been managed. So
[2:56:29] >> yeah, which is how we like it. Um any
[2:56:31] questions for Dan?
[2:56:34] Delta uh is going to I think
[2:56:37] >> oh present
[2:56:38] >> councelor Bogdan has a question for you.
[2:56:40] No I just I just wanted to make a point
[2:56:41] to we're also
[2:56:44] have a limit on how much we can tax the
[2:56:47] public too and we're very low on that
[2:56:48] too, aren't we?
[2:56:49] >> We are.
[2:56:50] >> very very low.
[2:56:51] >> So that means that we're running pretty
[2:56:52] efficiently, right?
[2:56:53] >> We are.
[2:56:54] >> Yes.
[2:56:55] >> We're not going to go bankrupt in 10
[2:56:56] years or anything. Um, I can tell you so
[2:57:00] we meet generally um at least once a
[2:57:04] year if not twice a year with the rating
[2:57:06] agencies um on all of these ratings and
[2:57:09] they reanalyze whether or not um the
[2:57:13] rating should be maintained
[2:57:15] uh um decreased or improved or whether
[2:57:20] um they should issue any kind of
[2:57:21] warnings or anything like that. And the
[2:57:24] comments are consistently
[2:57:26] positive about
[2:57:29] um they usually run along the lines of
[2:57:34] Utah overall. Um the municipalities in
[2:57:38] Utah are wellmanaged and conservatively
[2:57:43] operated
[2:57:45] and Provo kind of leads uh in that in within Utah. Provo is considered
[2:57:53] um a very very good and safe
[2:57:58] uh investment risk for investors. So and our ratings reflect that. I mean the
[2:58:05] in general the only reason that we don't
[2:58:07] have AAA ratings across the board is
[2:58:11] just the overall size of our
[2:58:13] municipality.
[2:58:15] But as as our population grows and as um
[2:58:19] our our economic environment diversifies
[2:58:24] um I think the day will come that we'll
[2:58:26] start to see more AAA ratings for non-
[2:58:29] sales tax backed issuances.
[2:58:32] Um but that'll just take some time.
[2:58:35] Right now, Salt Lake City is really um
[2:58:39] is the only city I'm aware of in Utah
[2:58:42] that for non- sales tax issuances has
[2:58:45] received AAA ratings. So,
[2:58:47] >> Oh, wow.
[2:58:48] >> Um the state of Utah, of course, is huge
[2:58:51] and they've um historically been AAA
[2:58:54] rating.
[2:58:54] >> Do they have like B's and Fs?
[2:58:57] Um, it goes down to
[2:59:01] um I should have the full ratings, but
[2:59:03] it's like C's and D's, you know, um that
[2:59:06] go down, but you're in junk bonds, you
[2:59:09] know, you get below like B minus and you
[2:59:13] start to move into
[2:59:15] uh questionable
[2:59:17] um investment grades. Uh, and then you
[2:59:20] get down to like D and you're, you know,
[2:59:23] you're you're gambling from an investor
[2:59:26] perspective, it's it's considered junk
[2:59:28] bonds.
[2:59:29] >> Yeah. But if you repackage those and
[2:59:30] sell them as a group, you can sell them
[2:59:32] as Triple A.
[2:59:32] >> Yeah.
[2:59:34] >> Remember when that was done?
[2:59:35] >> Yeah,
[2:59:35] >> that ended up well.
[2:59:36] >> That didn't work out well in in 0809.
[2:59:39] >> I got a movie to show you.
[2:59:43] >> Any other questions?
[2:59:45] >> Thank you.
[2:59:49] diversification.
[2:59:50] >> Yeah,
[2:59:53] you
[2:59:53] >> mind pulling up the other PDF?
[2:59:55] >> I'm definitely not getting after all
[2:59:57] these comments today.
[3:00:00] >> Oh, good.
[3:00:02] >> I had some slides.
[3:00:05] >> I missed it at one point.
[3:00:10] » Okay, I can tell you give you a revenue
[3:00:13] update without some slides. Um,
[3:00:16] this is just a preview of how the FY27
[3:00:19] budgeted revenues are looking for the
[3:00:21] upcoming budget. So, this is giving you
[3:00:23] a little sneak peek. And I will say it's
[3:00:25] preliminary. We are not sure exactly
[3:00:28] where everything's going to land, but
[3:00:29] we're getting a lot closer. Um,
[3:00:33] basically the takeaway is that, sorry, I
[3:00:37] wish I had some numbers for you up here,
[3:00:38] but the takeaway is that the FY27
[3:00:41] budgeted revenues are looking strong.
[3:00:43] Um, it's not like the past two years.
[3:00:45] >> We actually have a thought. Yeah. Do you
[3:00:47] want to reschedule this and bring back
[3:00:48] what the numbers next? We didn't have
[3:00:49] this in our packet either.
[3:00:51] >> Yeah. I'm sorry. I I know I had spent it
[3:00:54] might have been. We're running behind
[3:00:56] anyway.
[3:00:56] >> Okay, great.
[3:00:58] >> So, Justin, could we have rescheduled
[3:00:59] Kelsey?
[3:01:00] >> I'd almost at this point recommend just
[3:01:02] doing after the tenative budget just
[3:01:04] because we'll have better numbers and
[3:01:06] >> we'll be that much closer to it if if
[3:01:09] that's okay.
[3:01:10] >> What is that? May
[3:01:16] weeks or
[3:01:18] >> Yeah, just in two weeks.
[3:01:19] >> Okay, we can. Thank you. Thanks, Kelsey.
[3:01:21] >> Thanks.
[3:01:23] >> All right. Um, next a presentation
[3:01:25] regarding property tax presented by
[3:01:27] Justin Harrison.
[3:01:32] » All right. Thanks, council. Sorry to go
[3:01:35] from
[3:01:37] um
[3:01:39] what could have been a cheery
[3:01:41] presentation from Kelsey to talking
[3:01:42] about taxes, but
[3:01:45] it's what you got.
[3:01:49] » Okay, you're good.
[3:01:52] >> Um
[3:01:53] there's quite a few slides here. I'm not
[3:01:55] going to go through all of them in
[3:01:57] depth. you all read read through them,
[3:01:58] but if there are
[3:01:59] >> like just general overview, this is
[3:02:01] mostly
[3:02:02] >> for since he's new and just anyone if
[3:02:05] they have any questions, pipe up. But
[3:02:07] >> if there are any questions, feel free
[3:02:09] jump in whenever. Um if you really have
[3:02:13] a sleepless night, want to read about
[3:02:14] the history of property tax, I encourage
[3:02:16] you to look at this historical thought
[3:02:18] was implemented 130 years ago when Utah
[3:02:20] became a state. Um I'm waiting for the
[3:02:23] Netflix documentary, but hasn't happened
[3:02:26] yet. Um, property tax reg is regulated
[3:02:29] by the state um, as far as what
[3:02:32] municipalities can do under Utah State
[3:02:35] Code Chapter 59. Um, but really what you
[3:02:39] need to know for our purposes is how are
[3:02:43] certified tax rates created? Uh, the
[3:02:45] simple equation is prior year revenue
[3:02:48] divided by taxable property values gives
[3:02:50] you your property tax rate. Um and we'll
[3:02:53] go through a little little scenario on
[3:02:55] this. Um but in order to get that
[3:02:59] equation, um what many citizens or
[3:03:03] property owners or property taxpayers
[3:03:05] don't know is is how that equation is
[3:03:08] created and it starts with the
[3:03:10] valuation. So valuation is assessed
[3:03:13] locally by county assessors. Um
[3:03:20] and that valuation is determined at
[3:03:22] least in Utah County in this way. So by
[3:03:24] sales in the market, income that could
[3:03:26] be generated by the property or cost of
[3:03:29] replacement.
[3:03:35] Uh other determining factors that they
[3:03:37] take in when determining the valuation
[3:03:40] of residential or commercial property
[3:03:42] are things such as land use, uh the
[3:03:44] location of the property, the size, and
[3:03:47] also the property condition.
[3:03:55] This is from Utah County, so I feel
[3:03:57] comfortable saying this. Um but there
[3:04:00] are bound to be heirs
[3:04:03] Um
[3:04:03] >> in fairness in fairness to
[3:04:06] the assessor less less than 1% of
[3:04:10] properties are challenged. Assessments are
[3:04:14] challenged, right? So it's
[3:04:16] >> and I don't just mean the errors like last year
[3:04:21] » I'm just saying from an assessor
[3:04:23] standpoint that's this is a high
[3:04:25] percentage and I I've tal I have I I do
[3:04:28] think that's shockingly high that if you
[3:04:29] do appeal you're almost certainly you
[3:04:31] know especially if you have an appraisal
[3:04:33] >> last year was was a little different but
[3:04:35] to kind of put it in perspective so
[3:04:38] there's over 200,000 parcels in Utah
[3:04:41] County um
[3:04:42] >> 800 or something
[3:04:44] >> they have said part uh appeal success
[3:04:46] rate is about 70% that's of those who
[3:04:49] appeal.
[3:04:50] >> Now kind of their rule of thumb that
[3:04:53] Utah County has given is to for you as a
[3:04:56] property owner to ask yourself could I
[3:04:57] sell this property for what it has been
[3:04:59] assessed at. Now
[3:05:04] I would argue well I would encourage you
[3:05:06] all to look at your property tax
[3:05:07] assessments.
[3:05:09] I personally think they're all very low,
[3:05:10] but
[3:05:12] >> I think they're generous and I will take
[3:05:13] that. Thank you, Utah County. Um, but
[3:05:16] that's just kind of general rule of
[3:05:17] thumb as you're talking to constituents.
[3:05:19] If they're wondering, you know, about
[3:05:21] their property taxes, about their
[3:05:22] valuation, that's a simple question to
[3:05:24] ask yourself, could I sell this property
[3:05:26] for the assessed value?
[3:05:29] Um,
[3:05:32] now kind of going back to the equation,
[3:05:34] back to the the property tax rate
[3:05:36] making. Um so this chart sorry this is a
[3:05:40] little difficult to see. You see our
[3:05:42] general operations rate in the city and
[3:05:44] how it has gone down. You see the the
[3:05:46] bottom chart and average average average
[3:05:48] residential property value and this is
[3:05:51] specific to Provo City has gone up and
[3:05:53] you see how those trend lines are
[3:05:55] inverse. So as valuations go up, rates
[3:05:58] go down. And just the opposite, as
[3:06:00] valuations go down, rates would go up
[3:06:02] because um the whole
[3:06:06] policy argument
[3:06:09] um that has been created in Utah for
[3:06:11] property taxes is that revenue stays the
[3:06:14] same. It stays flat minus new growth.
[3:06:17] We'll pretend we didn't talk about that.
[3:06:19] Um but revenue stays the same and it
[3:06:21] forces um taxing entities,
[3:06:25] municipalities, school districts, water
[3:06:27] districts to go before the taxpayers and
[3:06:30] give a reason for the rate increase.
[3:06:34] Um this is my favorite chart in the
[3:06:37] world. It's going to be framed on the
[3:06:38] wall one day.
[3:06:40] Um,
[3:06:43] this is the breakdown of a dollar in
[3:06:45] property taxes on a Provo citizen
[3:06:48] citizens property tax bill. 60% of every
[3:06:51] dollar that they pay in property taxes
[3:06:53] goes to the school district. So, love
[3:06:56] the school district, but take their
[3:06:58] anger elsewhere, I promise. Um, that's
[3:07:01] where a majority of those funds go to.
[3:07:03] Uh, just under 15% of every dollar or 15
[3:07:06] cents of every dollar goes to the city.
[3:07:09] uh 13% to the state, about nine to the
[3:07:12] county, and then 3 and a.5% to central
[3:07:16] Utah water.
[3:07:20] Uh broken down a little further, and
[3:07:22] we'll get into this. So, Provo City's
[3:07:24] rate is broken up into three specific
[3:07:28] categories. So, we've got a specific
[3:07:31] line item for library, a specific line
[3:07:35] item for general operations or what
[3:07:37] funds the general fund, and then bonds.
[3:07:40] It's listed on the state tax commission
[3:07:43] website as interest in syncing. Um, and
[3:07:46] that's not a rate that the city can
[3:07:47] adjust. That's adjusted based off of
[3:07:50] that principal amount that Dan talked
[3:07:52] about on our general obligation bonds.
[3:07:54] So, that is automatically updated each
[3:07:56] year. Um, and any way to have that
[3:08:00] increased would be to go before the the
[3:08:02] voters for general obligation bonds. Um,
[3:08:06] and so it's
[3:08:07] >> they choose that piece.
[3:08:09] >> What's that?
[3:08:09] >> They choose that piece.
[3:08:10] >> Yes, they choose that piece. They also
[3:08:12] choose all use.
[3:08:14] >> They have choice on everything.
[3:08:17] >> Yeah. Um
[3:08:19] this is not as scary as it looks, but
[3:08:21] this is the um the state um Utah tax
[3:08:25] commission certified tax rate system. Um
[3:08:27] it's very small, so we'll skip through
[3:08:29] this, but you'll see um so this was
[3:08:34] maybe I'll I'll touch on this before. So
[3:08:35] you've got fiscal year and tax year. Um
[3:08:38] so we're going into fiscal year 2027.
[3:08:41] That'll be tax year 2026. So you'll see
[3:08:44] a couple of numbers on here that say
[3:08:45] FY26 referring to the current fiscal
[3:08:48] year and tax year 2025.
[3:08:51] So
[3:08:53] this shows how rates went down, but
[3:08:57] property taxes actually revenue stayed
[3:08:59] about the same minus growth. And this is
[3:09:02] where if the city chooses to um to
[3:09:06] increase property taxes or any taxing
[3:09:08] entity, they would input these rates in
[3:09:09] this system. Um,
[3:09:13] jumping into
[3:09:17] our specific breakdown in Provo City on
[3:09:20] how our our rates are broken up. Not all
[3:09:22] cities have a library and have a
[3:09:24] specific library tax line item. There
[3:09:27] are a few um, but this is this is the
[3:09:31] FY26 revenue projections from the
[3:09:34] current year budget for the library. So
[3:09:36] you can see almost well over 91% of
[3:09:39] their revenue comes from property tax.
[3:09:41] They're very uh property tax reliant. Um
[3:09:45] their other revenues come from charges
[3:09:48] for service and then they've got a
[3:09:49] couple miscellaneous and then their
[3:09:51] investment income that we talked about
[3:09:53] earlier today.
[3:09:56] This is what their rate breakdown looks
[3:09:58] like currently. So their property their
[3:10:01] mill rate is 0.0000419.
[3:10:05] There's a state capped rate of 0.001. So
[3:10:08] they're at about 42% of their state
[3:10:11] capped rate. So that's the green is what
[3:10:14] they've used up. The orange is what they
[3:10:16] have available. Um and so current
[3:10:18] property tax revenue brings in about
[3:10:20] $4.6 million. Um that maximum allowable
[3:10:24] rate would bring in roughly $11 million
[3:10:27] just to kind of give you some
[3:10:28] perspective on what what that looks
[3:10:30] like.
[3:10:32] Um,
[3:10:34] and this is what the rate has looked
[3:10:36] like over the last 25ish years. So, as
[3:10:41] um, Carla mentioned earlier, they're
[3:10:43] celebrating 25 years of the building.
[3:10:46] When the library moved to Academy
[3:10:48] Square, did the renovation,
[3:10:51] they brought the mill rate up to not
[3:10:53] quite the maximum, but close in order to
[3:10:56] do a lot of those renovations and to
[3:10:58] bring the library there. And as
[3:11:00] valuations have consistently gone up
[3:11:02] over the last 25 years, the rates come
[3:11:04] down other than a couple of times where
[3:11:08] uh tax rates have been adjusted.
[3:11:12] Shifting over to our general operations
[3:11:15] rate. Um this is a comparison of our
[3:11:20] general operations rate to other like cities in both Utah and Salt
[3:11:28] Lake County. You see us
[3:11:30] >> right down here.
[3:11:33] >> There's Provo. As far as general
[3:11:35] operations rate or the property taxes
[3:11:37] that go to fund the general fund in
[3:11:40] Provo City,
[3:11:44] this is our general property tax or our general fund revenue breakdown from
[3:11:49] the current fiscal year.
[3:11:51] >> Hold on a second.
[3:11:52] >> Yep.
[3:11:53] >> Trying to get my head around Woodland
[3:11:54] Hills. Can you go back?
[3:11:56] >> You want to move? So, but does that
[3:11:58] reflect that instead of like bonding for
[3:12:01] something, they raise rates to do
[3:12:03] something? It
[3:12:04] >> it could um
[3:12:05] >> because this could be I'm not sure that
[3:12:07] this is
[3:12:07] >> Well, they also have no commercial.
[3:12:10] They're just big houses. They're just
[3:12:12] mansions,
[3:12:12] >> but they're not that.
[3:12:14] >> Yeah. I guess what I'm saying is there
[3:12:16] could be a lot of factors that go into
[3:12:18] that.
[3:12:18] >> There are.
[3:12:19] >> Because we could like Heramman may be
[3:12:21] amazing and they've got a bajillion
[3:12:24] dollars in bonds.
[3:12:25] >> Yes. Yes. Right.
[3:12:27] >> Yep.
[3:12:27] >> Okay.
[3:12:27] >> All I know is we're doing terrible. We
[3:12:29] got to get to the top of that list,
[3:12:30] guys.
[3:12:31] >> So, you helping yourself.
[3:12:34] >> Lots of quotes.
[3:12:35] >> You can make any graph, babe.
[3:12:40] » I would say to that point, councelor
[3:12:43] Christensen, take this with a grain of
[3:12:44] salt. You can make it say what you want
[3:12:46] to say. You can say,
[3:12:47] >> um, you know, look, look how great we're
[3:12:49] doing. We don't bring any revenue in.
[3:12:52] >> Salt Lake City has a lot of commercial.
[3:12:53] >> Yes. And it's it's very different based
[3:12:56] off the municipality and what your you
[3:12:58] know are you a bedroom community? Do you
[3:12:59] have a lot of commercial? How much sales
[3:13:00] tax do you bring in? Do you bring in no
[3:13:02] sales tax? That's going to be very
[3:13:04] dependent on what you do with your your
[3:13:06] property tax.
[3:13:08] >> Um
[3:13:09] but if you look at the pie chart, um
[3:13:12] you'll see this is current fiscal year
[3:13:15] from from the budget. Uh what our
[3:13:18] projected revenues were. Uh you'll see
[3:13:21] the largest kind of light green square
[3:13:24] sales tax at 30%. That's our largest
[3:13:27] income stream in the general fund. The
[3:13:29] light blue is property tax at 8%. Now um
[3:13:34] it's not to say any of this is is good
[3:13:37] or bad or indifferent. Uh but generally
[3:13:40] sales taxes are more um
[3:13:46] there is more variable there. They are
[3:13:50] what do I want to call them?
[3:13:53] >> They are.
[3:13:54] >> Yes.
[3:13:56] Yeah, they're they're more volatile. Um
[3:13:58] where property tax is more stable.
[3:14:02] >> So just something to to think about and
[3:14:04] keep in mind. But it is it's a balance
[3:14:06] of all these different revenues that
[3:14:07] make up that pie of our roughly $90
[3:14:11] million general fund.
[3:14:13] >> Justin, can I ask a question on that?
[3:14:14] >> Y on this chart. So uh for example like
[3:14:19] um Provo Powers transfers to the general
[3:14:22] fund. Does that categorize as franchise
[3:14:23] fees or transfers in?
[3:14:24] >> Nope. Transfers in.
[3:14:26] >> Okay.
[3:14:26] >> So yeah.
[3:14:28] >> And that's one way to look at it.
[3:14:33] » Yeah. Different people who use our our
[3:14:37] you probably have some breakdown. The
[3:14:39] other
[3:14:41] >> at 10% that would be $30 million. That's
[3:14:44] fairly
[3:14:46] I don't have that offhand, but I can get
[3:14:48] it. That's just from the the budget
[3:14:50] book, so we can we can look into that.
[3:14:54] >> A lot of that's fees and charges, isn't
[3:14:56] it?
[3:14:57] >> Oh, you've got fees already listed at
[3:14:59] 14%.
[3:15:00] >> Yeah.
[3:15:00] >> Okay.
[3:15:01] >> So, we can get a breakdown of that
[3:15:03] though.
[3:15:03] >> I would love to see a breakdown of each
[3:15:05] of those subcategories at some point. Be
[3:15:08] really useful.
[3:15:09] >> As far as the the
[3:15:11] >> dollar amount or No, for example, like
[3:15:13] transfers in. Yep.
[3:15:14] >> Obviously, we know proto power is a huge
[3:15:16] component of that.
[3:15:17] >> That's largely banners.
[3:15:20] >> That's our big revenue.
[3:15:22] We need to sell more banners.
[3:15:24] >> Yeah. Subsidiz
[3:15:27] fees would be another interesting one to
[3:15:28] see how that's broken down. And then and
[3:15:30] then franchise fees.
[3:15:32] >> So, just do a pie chart of each one of
[3:15:34] these.
[3:15:34] >> Pretty much
[3:15:37] >> you just love pie charts.
[3:15:38] >> I love pie charts. There you go.
[3:15:40] >> I love pie.
[3:15:41] >> I think you should do a graph, you know.
[3:15:43] Oh boy.
[3:15:46] >> All right. Um, and then similar to
[3:15:48] library, so this is our breakdown of
[3:15:52] >> that general operations rate. So the
[3:15:54] state caps this rate as well.
[3:15:57] >> Uh, but it's capped at 0.007
[3:16:00] and we're at 0.00534.
[3:16:03] So less than 8% 7 and a half% of what is be feasible. So, anytime anyone
[3:16:12] complains about property tax, just say
[3:16:14] we could charge 700 or $77 million.
[3:16:18] >> So, there's a separate mill rate for
[3:16:19] each of the categories.
[3:16:20] >> There is. Yep. Separate mill rate and
[3:16:23] then that's combined. That's what gets
[3:16:24] that big 14% piece on that dollar
[3:16:29] breakdown. Um, but they are broken down
[3:16:31] individually.
[3:16:33] Um
[3:16:34] >> I and just I just can't remember each
[3:16:37] chart but this is the lowest
[3:16:40] >> of all them
[3:16:41] >> uh percent as a percent of the possible
[3:16:46] >> of each.
[3:16:49] Yeah. Is that right?
[3:16:50] >> Of our mill rates which is the lowest.
[3:16:53] >> It is
[3:17:01] I want to say it's the library.
[3:17:14] Yeah. Library is 0419.
[3:17:18] Um,
[3:17:21] general operations is 534 and then
[3:17:27] our our bonds is the highest.
[3:17:31] So,
[3:17:31] >> and the double question, but the mill
[3:17:33] rate are set by state law, right?
[3:17:35] >> Um,
[3:17:35] >> the high max
[3:17:37] >> the cath is set by by the state. Yep.
[3:17:39] >> And is that is that like is it set as a
[3:17:42] percent or is it set as a
[3:17:46] >> No, it's not. It's set as as the mill
[3:17:48] rate. I don't know. I don't know what
[3:17:50] got them there, but we do.
[3:17:52] >> Does it like does it say periodically
[3:17:55] we'll reset we'll change that or is it
[3:17:57] just like forever
[3:17:58] >> that that I'm not sure. I will look into
[3:18:00] some history on that.
[3:18:01] >> It changes.
[3:18:05] » That's why the the um graph we go down
[3:18:09] so much.
[3:18:11] >> I thought it was a mistake go up.
[3:18:12] >> I was going to say just to be popular
[3:18:14] like Travis, it probably just keep moves
[3:18:16] up. So Salt Lake City doesn't look like
[3:18:17] it's getting too close to it.
[3:18:24] » Race to the top, baby.
[3:18:27] >> You got some in trouble.
[3:18:29] >> Uh this is just kind of historical look
[3:18:31] the last 25 years on the general
[3:18:34] operations motor rate. So again, as
[3:18:36] values have gone up, rate um
[3:18:39] automatically goes down. There have been
[3:18:41] a few times where rates have been
[3:18:43] increased, but generally it's built in
[3:18:46] that way so that revenue stays flat
[3:18:49] minus new growth.
[3:18:51] Um,
[3:18:53] and then this last slide, this is just a
[3:18:55] couple of of truth and taxation changes
[3:18:57] that came out of this legislative
[3:18:58] session out of HB 236. Um, so
[3:19:04] there were a number of of changes that
[3:19:07] were instituted last legislative
[3:19:08] session. These are additional, we'll
[3:19:10] call them new new changes um because
[3:19:13] many people didn't get the memo on the
[3:19:15] new changes um and had some had some
[3:19:17] trouble. So those are all still in
[3:19:19] effect. Um but the goal of this was to
[3:19:22] increase again some transparency for um
[3:19:26] for taxpayers. So again, when the when
[3:19:28] the tenative budget is presented, if
[3:19:30] there is a request or in the tenative
[3:19:34] budget, there's a there's an increase
[3:19:36] proposed to property tax, um
[3:19:40] that has to be stated by the budget
[3:19:42] officer, the mayor in in that meeting.
[3:19:46] Um an impact schedule has to be
[3:19:51] presented. Now, what impact schedule is
[3:19:54] defined as is not super clear. And so
[3:19:56] that's being kind of worked on um with
[3:19:59] municipalities, but essentially what the
[3:20:02] intent of the state was to show
[3:20:04] taxpayers what that increase is being
[3:20:07] used for instead of just we're
[3:20:09] increasing taxes, however little or or
[3:20:13] much as it may be, the intent is for
[3:20:15] that to be public on what that
[3:20:17] additional
[3:20:19] um money is going to be used for. Um
[3:20:22] there also has to be a separate agenda
[3:20:23] item included. Uh so it can't just be
[3:20:26] you know presentation and adoption of
[3:20:28] the tenative budget but there has to be
[3:20:29] a separate agenda item. Um
[3:20:34] also has to be an announcement of the
[3:20:35] approximate dollar amount of the
[3:20:37] increase the percentage of the increase.
[3:20:40] It gets into quite a few of these
[3:20:41] specifics. Um and hearing information um
[3:20:46] that that happens between May 1st and
[3:20:48] June 13th. Um and then adoption of the
[3:20:51] interim budget um is done. This is where
[3:20:54] it gets a little weird. Um, with a
[3:20:57] restricted
[3:20:59] account for those potential dollars that
[3:21:02] could be passed um if truth and taxation
[3:21:05] were approved. So um and likewise um
[3:21:11] this was contemplated um
[3:21:15] for those presenting the budget. So
[3:21:17] whether that's that's our form of
[3:21:19] government in a council mayor form where
[3:21:21] you got a budget officer or mayor
[3:21:22] presenting the same things would need to
[3:21:24] be done should the legislative body or
[3:21:27] the council choose to increase those
[3:21:28] rates. These would then need to be
[3:21:31] followed if there were no proposed
[3:21:34] increase and the council chose to do so.
[3:21:35] just some
[3:21:38] new requirements to be aware of. Um
[3:21:40] >> we'll expect you to stay on top of that.
[3:21:43] >> We got it. Um, councelor,
[3:21:46] >> a few years ago, we did very modest
[3:21:48] increases, but we weren't sure the exact
[3:21:51] amount that we were increasing. So, we
[3:21:53] noticed the maximum that we would and
[3:21:55] then as we went through the process, we
[3:21:58] settled on kind of a lower number or we
[3:22:00] could settle on a lower number. Do we
[3:22:03] still have that flexibility with this
[3:22:05] new law?
[3:22:06] >> Yes. Yeah. Still able to to change that
[3:22:08] amount um
[3:22:10] >> downward, not upward.
[3:22:11] >> Not upward. Yeah.
[3:22:12] >> Okay. And so if I don't know that we
[3:22:16] want to do that this year, but if we
[3:22:17] were doing it another year, then we
[3:22:20] would have a counselor or you present
[3:22:24] the thing
[3:22:25] >> dependent whoever it came from. If it
[3:22:27] came from um the administration
[3:22:30] in their tenative budget, it would need
[3:22:32] to be presented. If it was presented to
[3:22:34] the council and you said
[3:22:36] >> there's not a rate increase, but we want
[3:22:38] to do one or there's not enough of one,
[3:22:39] it would need to come from from that
[3:22:41] body as well. Do the timelines apply too
[3:22:43] because we may not know if we wanted to
[3:22:46] do that kind of supplemental thing when
[3:22:48] we're presented that tentative budget in
[3:22:50] May.
[3:22:51] >> Yes. Um so you would have until
[3:22:55] June 13.
[3:23:01] Not much time but
[3:23:03] >> Okay.
[3:23:04] >> So we don't have to do the property
[3:23:07] impact schedule at the first meeting in
[3:23:09] May. No.
[3:23:10] >> Okay.
[3:23:11] All right. Again, I don't know that we
[3:23:13] want to do this this year, but I want to
[3:23:15] understand what would happen in a future
[3:23:17] year if we needed to do it.
[3:23:18] >> All right. Well, thanks, Justin. Any
[3:23:20] other questions for Justin?
[3:23:23] >> All right. Thank you.
[3:23:23] >> Yep. Thanks, Justin.
[3:23:25] >> Okay. Um, a resolution appropriating
[3:23:29] 75,000 general fund for an economic
[3:23:30] development study for the fiscal year
[3:23:32] ending June 30, 2026.
[3:23:37] and they'll be presented by Cody Hill,
[3:23:39] the division director of economic
[3:23:41] development.
[3:23:45] » Is the home consortium ready? Who's
[3:23:47] presenting?
[3:23:53] » You're up. You're up.
[3:23:58] » No notes, huh? Wow. Just going to wing
[3:24:01] it.
[3:24:02] We've discussed it at length, so I think
[3:24:04] we're all pretty well informed about
[3:24:05] this item. Cody Hill, uh, Pro City
[3:24:08] Economic Development Division Director.
[3:24:09] So, this appropriation request is for
[3:24:11] 75,000 to fund a citywide economic
[3:24:14] development strategy and that has been
[3:24:18] from the beginning of the year a high
[3:24:20] priority that has been clearly
[3:24:22] identified by city council and supported
[3:24:25] by administration. We have met with um
[3:24:28] several council members and
[3:24:29] administration to craft the request for
[3:24:31] proposals that is out right now. It
[3:24:34] closes in 4 days on the 18th. Um as of
[3:24:37] now we have one complete application
[3:24:39] submitted. 26 entities have downloaded
[3:24:43] the RFP, the request for proposal, and
[3:24:46] I've heard from uh another group that
[3:24:48] they're intending to uh respond to it.
[3:24:51] And so that is looking good. But yeah,
[3:24:53] the the request is for $75,000 for for
[3:24:56] that study and it's coming from general
[3:24:58] fund uh money for a onetime
[3:25:00] appropriation.
[3:25:02] >> Can you remind me what we how we
[3:25:03] evaluate those who submit RFPs or
[3:25:06] respond to RFPs?
[3:25:08] >> That's a great question. So, we have a a
[3:25:10] set of criteria that are outlined in the
[3:25:14] request for proposals. And um Caitlyn,
[3:25:18] who's sitting behind you, she actually
[3:25:19] just sent out an email reminder to
[3:25:22] everyone that's on the selection
[3:25:23] committee to provide weights for all of
[3:25:25] the different criteria. Um but it's
[3:25:27] basically how long has this entity
[3:25:30] existed? What is their experience? Um
[3:25:32] >> there is some qualitative stuff.
[3:25:34] >> Oh yeah. Yeah. Absolutely.
[3:25:35] >> Okay.
[3:25:36] >> Right.
[3:25:38] How do do we how do we feel about the
[3:25:39] response so far? It's still early, but
[3:25:42] >> yeah, in speaking with Stephanie Green
[3:25:44] in finance, who who kind of overlooks
[3:25:46] the request for proposal, she says
[3:25:48] you'll get the most all of your
[3:25:51] responses the last day and a handful of
[3:25:53] them the last minute.
[3:25:56] >> And as a former consultant, I can attest
[3:25:58] to that. That's
[3:25:59] >> okay.
[3:26:00] >> You said there's there's a total of 20
[3:26:02] >> 26 downloaded completed.
[3:26:05] >> Yes. No, 26 downloaded. So, just
[3:26:08] basically 26 have shown interest in it.
[3:26:10] >> Yeah. And then one has been submitted
[3:26:12] and then
[3:26:14] >> another entity that I've spoken with
[3:26:15] said they're planning on joining with
[3:26:16] another consulting group and kind of
[3:26:18] working on it together.
[3:26:19] >> Well, I doubt
[3:26:20] >> and they haven't submitted. So,
[3:26:21] >> yeah,
[3:26:22] >> we won't get off. But
[3:26:24] >> what would you consider a good number of
[3:26:25] responses?
[3:26:28] >> Any any more than 10 I'll be very happy
[3:26:31] with. If we get all 26, I'll be a little
[3:26:33] overwhelmed. That's a lot of RFPs to go
[3:26:36] through. Yeah, that that would be great.
[3:26:40] >> All right. Um, any discussion on the
[3:26:43] item?
[3:26:44] >> Thank you for
[3:26:45] >> Go, go, go. Yes.
[3:26:46] >> Perfect. Thank you so much.
[3:26:48] >> Well, there's only one go-getter so far.
[3:26:50] >> Stop it.
[3:26:52] >> Not the last day either.
[3:26:54] >> Well, those are the ones that are
[3:26:57] procrastinators, right?
[3:26:58] >> All right. Next, I have a presentation
[3:26:59] regarding the Provo City and Utah Valley
[3:27:01] Home Consortium Program.
[3:27:03] 2026 annual action plan presented by
[3:27:05] Melissa McN, our community grants
[3:27:07] administrator.
[3:27:16] » Hey, good afternoon everyone.
[3:27:19] Um so this year our annual action plan
[3:27:23] um and since I submitted this we did get
[3:27:25] our final um numbers from HUD. So some
[3:27:28] of these numbers have changed a little
[3:27:29] bit. So I did bring um updated
[3:27:33] numbers for you. Um
[3:27:40] maybe.
[3:27:44] » Okay. So, in our community development
[3:27:46] block grant, um we have so it went down
[3:27:51] a little bit. We have $1,130,200
[3:27:56] um available. And for our home funding,
[3:27:58] we have 1,528,425
[3:28:03] um so that went up a little. So um our
[3:28:07] total funding um combined is about just
[3:28:11] over 3.9 million.
[3:28:15] And let's see.
[3:28:20] Okay. Um and this just goes over the the
[3:28:23] process. So, we do have new council
[3:28:27] members um who maybe have not done this
[3:28:30] or been through this process before, but
[3:28:32] so just a brief reminder is in the fall
[3:28:35] we put out a notice of funding available
[3:28:37] so that we have um entities that come um
[3:28:40] we have like a little workshop where we
[3:28:43] educate them on how how to access the
[3:28:46] application and then what to expect. We
[3:28:48] have a pre-application and then an
[3:28:50] application. Um the pre-application is
[3:28:53] to make sure that their pro project
[3:28:56] proposed project is um meeting HUD
[3:28:59] guidelines and can move forward. Um then
[3:29:02] they come and and submit their
[3:29:05] applications and then we have um staff
[3:29:08] does on-site interviews with them um to
[3:29:12] just kind of determine their um capacity
[3:29:14] and ability to um deliver the projects.
[3:29:18] And then we have scoring. So, we have um
[3:29:21] and we just finished this part up. We
[3:29:23] have um citizen committees um that come
[3:29:27] and listen to all the presentations
[3:29:30] and some of that some of our counselors
[3:29:32] were able to come to these
[3:29:33] presentations. Um I think it's always
[3:29:36] interesting to see how many just how
[3:29:39] much good is done with not a whole lot
[3:29:41] of money in our um in our community. Um,
[3:29:45] so we have our committees um rank all of
[3:29:48] the all of the projects and then they
[3:29:50] come up with funding recommendations
[3:29:52] which um you'll see in the annual action
[3:29:55] plan and then um today I'm just here to
[3:29:58] talk about our public comment period.
[3:30:00] So, there is a draft of the annual
[3:30:02] action plan available on our website.
[3:30:04] Um, and we um invite all interested
[3:30:08] parties to to review it and leave
[3:30:11] comments about what we're doing, what
[3:30:13] you maybe what you'd like to see
[3:30:14] different. Um, and then we'll have a
[3:30:17] public hearing. I have one scheduled on
[3:30:20] the 28th of this month and then another
[3:30:22] one um in June. And the June um public
[3:30:27] hearing is when we'll we'll close the
[3:30:29] comment period and and council will um
[3:30:31] make a final vote um by resolution on
[3:30:34] adopting the plan or making any um
[3:30:37] adjustments to funding that they might um deem necessary. And then um I
[3:30:44] will submit everything to HUD and then
[3:30:46] we wait for our little um award
[3:30:49] contracts from HUD and then move forward
[3:30:51] into the year.
[3:30:53] Um, and so this is just kind of a an
[3:30:56] overall um what we do for our citizen
[3:30:59] engagement. We have regional meetings.
[3:31:01] That's when we get together um up in the
[3:31:04] MAG offices in ORM. We work with ORM. Um
[3:31:08] Utah County uh is doing something
[3:31:11] different. So, we're hoping that they
[3:31:13] will um start participating again next
[3:31:15] year in the in the regional um
[3:31:20] process because that just kind of makes
[3:31:21] it easier on our applicants um so that
[3:31:25] so they go to one place to apply for all
[3:31:29] of these all of us that provide CDBG
[3:31:31] funding. Um then we had local meetings.
[3:31:34] So those are just for our Provo only
[3:31:36] projects. Um and we have our um provo
[3:31:40] citizens committee that's uh made up of
[3:31:43] um neighborhood representatives from uh
[3:31:45] mostly our CDBG eligible neighborhoods.
[3:31:48] Um and then we have our home consortion
[3:31:50] board. So um our home consortium we uh
[3:31:53] administer that program. It is for the
[3:31:56] entire county. So the consortion board
[3:31:58] is made up of um other entities within
[3:32:01] the county um that come and do decide on
[3:32:04] funding um throughout the county.
[3:32:09] Um and this is just kind of describes um
[3:32:12] our role um in in the regional process.
[3:32:16] Um we are the lead entity in the Utah
[3:32:18] Valley Home Consortium. So we um
[3:32:23] help make the um funding decisions for
[3:32:26] the home dollars and then we are
[3:32:28] responsible for all the administration
[3:32:30] of um of the home of the home dollars.
[3:32:35] Um, and we are a a member of the
[3:32:38] Mountainland Continuum of Care. Um, this
[3:32:40] is just like a little um just to bring
[3:32:44] to your attention this this these are
[3:32:46] the numbers from 2025. We don't have the
[3:32:48] 2026 point in time count and I don't
[3:32:50] know if you are familiar with the point
[3:32:52] in time count. I I imagine some of you
[3:32:54] are. Um, and that's just to uh count our
[3:32:59] the the people who are experiencing
[3:33:01] homelessness. Um last year we had a rise
[3:33:05] in of 34% and I'm told by the in the
[3:33:08] last continuum of care meeting that
[3:33:09] they're seeing more um unhoused families
[3:33:12] than they have ever before. So um a lot
[3:33:16] of work to do with with our HUD funding
[3:33:19] and um especially with our our home
[3:33:21] dollars to to try and keep people housed
[3:33:24] and uh and taken care of. Um
[3:33:30] uh and this is the summary of where all
[3:33:31] of the the funding comes from for each
[3:33:34] year. Um again, these numbers are are a
[3:33:36] little bit different because
[3:33:38] um of our funding adjustment. So the
[3:33:41] program income, that's money that we get
[3:33:43] from loans that are repaid. Um we put
[3:33:46] them back into the system to be used
[3:33:48] again. and reprogram funds. That's when
[3:33:50] if a project finishes up and they
[3:33:52] haven't used all the funding, we put it
[3:33:54] back in to be used um by some other
[3:33:57] project. Um our public services cap is
[3:34:00] 15%. So 12 we um obligate about 12% to
[3:34:04] the regional process and we keep 3% just
[3:34:08] for organizations that are doing work
[3:34:10] only in Provo City.
[3:34:14] Um okay. And this is our home funding.
[3:34:18] Um so and again we have our our program
[3:34:22] income and the home um receipts. This is
[3:34:26] another these are both pro considered
[3:34:28] program income. They're just kind of
[3:34:30] different different buckets. So they're
[3:34:32] just separated so that HUD can see those
[3:34:34] different buckets. Um and then we had
[3:34:37] reprogrammed funds come back in. Um and
[3:34:40] so this year this is kind of the
[3:34:41] breakdown of where all of that's going.
[3:34:43] Um the the CHTO set aside is a 15% that we um it's automatically assigned
[3:34:52] to a CHTO. We have one CHTO organization
[3:34:55] which stands for community housing
[3:34:57] development organization. Um and so that
[3:35:01] money automatically goes to that
[3:35:03] organization every year. Um and then we
[3:35:06] have
[3:35:06] >> which organization is it?
[3:35:07] >> Um it is self-help homes.
[3:35:10] So, are is does anyone need um
[3:35:13] clarification on what self-help homes
[3:35:14] is? Because they're pretty fabulous.
[3:35:17] They're they um get together and in
[3:35:20] groups and build each other's homes. Um
[3:35:22] and they're doing a lot of work. Yeah. A
[3:35:24] lot of work um down in PAC and the Salem
[3:35:27] area right now. So, um this year we have
[3:35:30] our our loan to own
[3:35:33] was given the the largest amount of
[3:35:35] money. We've changed our down payment
[3:35:37] assistance programs. um a little bit to
[3:35:40] allow for more down payment assistance
[3:35:41] to help um those families get into their
[3:35:44] first home. Um so a lot more money was
[3:35:47] dedicated to that. And Home Purchase
[3:35:49] Plus, so Loan to own is a countywide
[3:35:51] program. Home Purchase Plus is strictly
[3:35:54] Provo. Um and the Home Purchase Plus
[3:35:58] does allow um for a larger down payment
[3:36:02] um because we really want to incentivize
[3:36:03] people to live in Provo. It's pretty
[3:36:05] great. So
[3:36:06] >> it's the 60 now, right? Yes, it is
[3:36:08] 60,000 um down payment assistance for
[3:36:11] first-time home buyers. And then
[3:36:12] Building Beginnings um does the TBR
[3:36:16] stands for tenant based rental
[3:36:17] assistance. So they uh do a lot of work
[3:36:20] for people who are transitioning back
[3:36:23] into housing. Um some a lot of their
[3:36:26] clientele are exiting the um
[3:36:29] correctional facilities and going into
[3:36:32] their program. um they're they only take
[3:36:35] um certain um offenders um non-violent
[3:36:39] offenders into their program um and help
[3:36:42] them um build skills to succeed and um
[3:36:46] and provide that rental assistance while
[3:36:48] they're building those skills, those
[3:36:50] life skills.
[3:36:51] Um and then this is this is the
[3:36:54] breakdown of all of our um everything
[3:36:56] that was awarded in CDBG. And again,
[3:36:59] these are um going to be a little bit
[3:37:01] different. the refuge and mountain
[3:37:03] community or Mountlands Community Health
[3:37:05] Center are both um less than that and
[3:37:09] that's based on contingency plans that
[3:37:12] our citizen committees come up with in
[3:37:15] case the funding is lower or higher.
[3:37:17] They decide where those adjustments are
[3:37:19] going to be made. So, those two are
[3:37:21] going to be a little bit lower and the
[3:37:22] community garden uh is a little bit
[3:37:25] lower. And then in the um and down here
[3:37:30] in the United Way, that's also a little
[3:37:32] bit lower because of the the reduced
[3:37:34] CDBG funding that we got. And then over
[3:37:37] here in the home awards, they um opted
[3:37:40] to put the excess any excess that we
[3:37:43] got, which was yay, we did get some this
[3:37:45] year um in the loan to own um pod. So
[3:37:49] those are the differences here.
[3:37:53] Um so the next steps are um
[3:37:58] uh well this is probably a later step
[3:38:01] but um you will um potentially adopt the
[3:38:05] annual action plan in June. Um, we do
[3:38:08] have the public comment period that will
[3:38:10] end um in that June public hearing and
[3:38:15] then we will have certifications that um
[3:38:19] the mayor gets to sign for us and then
[3:38:21] we submit everything um to HUD in the in
[3:38:24] the HUD in the federal reporting system
[3:38:27] which is what the IDIS is. Um then
[3:38:29] they'll review and either say this is
[3:38:32] great or um this needs some revisions or
[3:38:36] um and then our new uh program year
[3:38:39] begins July 1st.
[3:38:42] >> All right.
[3:38:44] >> And I think that's it. And Kevin, did
[3:38:48] you get that? Okay. Okay.
[3:38:50] >> Yeah, that'd be great. Okay. And just in
[3:38:53] case somebody's viewing and wants to see
[3:38:54] it, this is the so we I had Kristen just
[3:38:58] posted the new um annual action plan.
[3:39:01] This is the one that council got updated
[3:39:04] since um last week. So this is the this
[3:39:08] is a link to the new annual action plan
[3:39:10] with the new numbers and all those
[3:39:11] revisions um are within there. Um it
[3:39:14] goes right to the website so you can
[3:39:15] look at the action plan and there is a
[3:39:17] comment box um just to make leaving a
[3:39:20] comment easier. And there's also
[3:39:22] information on um on the website on if
[3:39:26] you don't want to do a comment box, if
[3:39:28] you want to email me or call me or mail,
[3:39:30] all that information is on the website.
[3:39:32] Great.
[3:39:33] >> So, do you guys have any any questions
[3:39:35] for me at this point?
[3:39:39] >> All right.
[3:39:40] >> Fantastic. Good job.
[3:39:42] >> Thank you.
[3:39:45] >> All right. You uh municipal council will
[3:39:47] consider a motion for closed meeting.
[3:39:48] Brian
[3:39:51] There are a handful of matters uh or to
[3:39:54] be discussed in closed meeting. They all
[3:39:55] deal with character and competence of
[3:39:57] individuals which is one they approved
[3:39:58] recently. Be appropriate to move to
[3:40:00] close the meeting like this.
[3:40:01] >> Great. Do you have a motion for a closed
[3:40:03] meeting?
[3:40:04] >> Motion to post.
[3:40:05] >> Second.
[3:40:07] >> Great. Um
[3:40:09] that we take a vote on motion to close
[3:40:12] the meeting. Councelor Gary Garrett.
[3:40:13] >> Yes.
[3:40:14] >> Councelor Bogd. Yes. Councelor Hogan.
[3:40:16] >> Yes.
[3:40:16] >> Councelor McKay. Yes. Councelor
[3:40:18] Christensen.
[3:40:19] >> Yes. Ma'am. Councelor Whitlock.
[3:40:20] >> Yes.
[3:40:21] >> Councelor Whipple.
[3:40:22] >> Yes.
[3:40:23] >> That passes 70. Um, we will now recess
[3:40:26] appointment council work meeting and
[3:40:28] reconvene in the pre-unction room for
[3:40:30] the closed meeting.
[3:40:36] » Recording stopped.