[1:59] Mhm. [3:54] » Mhm. [5:32] » Let's bring to order. It is the Provo Municipal Council, Provo RDA [5:37] Governing Board, and the Provo Storm [5:39] Water District Governing Board. [5:41] It's May 5th, 2026 at 5:31 [5:45] p.m. [5:46] We will do a roll call of the officials. [5:48] We have Marsha Judkins with us. [5:50] And we have Gary Garrett, myself Patrice [5:53] Mackay, Becky Bogden, and Counselor Jeff [5:57] Whitlock. Is anyone on Zoom, Kevin? [6:02] Okay. [6:03] Others are on their way and we do have [6:05] Rachel Whipple and Craig Christiansen [6:07] excused today. [6:10] And we will have a opening prayer by [6:13] Julie Rose. [6:19] My dear Father in Heaven, we are [6:20] grateful for this chance that we have to [6:21] gather as a community. We're grateful [6:23] for the service of [6:24] our city council members and our [6:26] administration and we ask [6:30] the guidance of thy spirit as we [6:32] I know that our leaders seek to make [6:34] decisions in the best interest of [6:37] the residents of Provo. [6:39] We're grateful for this beautiful city [6:40] that we live in. [6:41] We say this in the name of Jesus Christ. [6:42] Amen. [6:43] Thanks, Julie. We'll have the [6:45] Pledge of Allegiance by Counselor [6:47] Whitlock. [6:52] I pledge allegiance to the flag of the [6:54] United States of America and to the [6:57] republic for which it stands, one nation [7:00] under God, indivisible, with liberty and [7:04] justice for all. [7:08] » [clears throat] [7:11] » All right. Um, first of all, we're going [7:13] to have a presentation of the tentative [7:14] budget for Provo City for the fiscal [7:16] year beginning July 1st, 2026 and ending [7:19] June 30th, 2027. [7:22] And it will be presented by Mayor Marsha [7:24] Judkins and then Kelsey Zarba, our [7:27] budget officer. [7:31] Thank you. Dear members of the Provo [7:33] City Council, I'm happy to provide the [7:35] mayor's proposal for the tentative Provo [7:37] City budget for fiscal year 2027. [7:40] I'm proud to deliver a balanced budget [7:42] that does not include a property tax [7:43] increase. As you know, I began my [7:45] service as mayor in January, and we got [7:48] to work immediately with our finance [7:50] team to review sales tax projections, [7:52] discuss supplemental requests, and hone [7:55] in on the details to ensure we delivered [7:57] on one goal. A balanced budget that [7:59] improves Provo residents' quality of [8:01] life. [8:02] The proposed budget successfully [8:03] achieves this goal by focusing on fiscal [8:05] discipline, operational efficiency, and [8:08] long-term investments. [8:10] I was consistently impressed by the [8:12] dedication of our department directors, [8:13] our outstanding finance team, Dan [8:16] Follett, Kelsey Zabriskie, and Andrew [8:18] Wright, and CAO Scott Henderson. [8:21] I appreciated their willingness to [8:22] explain the process, think creatively, [8:24] and ask important questions. As we spent [8:27] hours together, I appreciated the [8:28] opportunity to find efficiencies and [8:30] employ best employ best practices [8:32] throughout Provo City. [8:34] One important directive we utilized was [8:36] to approach supplemental appropriations [8:38] with greater discipline. [8:40] Rather than simply submitting requests, [8:42] department directors were asked to [8:43] identify potential funding sources for [8:45] every proposed project. This innovation [8:48] saved hundreds of thousands of dollars [8:50] in general fund expenses, and encouraged [8:52] creative problem-solving across [8:54] departments. [8:56] We applied that same discipline to major [8:57] cost centers like our vehicle fleet. [9:00] By establishing a defined annual fleet [9:02] budget for the first time, we're [9:03] ensuring these resources are managed [9:05] with the same accountability and [9:07] prioritization as the rest of the [9:08] general fund. [9:10] We addressed consistent operational [9:12] overtime within the fire department. [9:14] Working closely with Fire Chief Hedman, [9:16] we added positions to improve coverage [9:18] and reduce reliance on overtime. [9:21] These increased positions improve [9:22] quality of service without a cost [9:24] increase to taxpayers. [9:26] We continue to benefit from our general [9:28] fund transfer from our utilities. [9:30] Absorbing the risk of running public [9:32] utilities comes with a 12 and 1/2% [9:34] dividend to Provo residents, making us a [9:36] making up approximately 18% of overall [9:39] general fund expenses. [9:41] These transfers help maintain one of the [9:43] lowest property tax rates in the state, [9:45] while also presenting some of the lowest [9:47] utility fees. It's a key reason we were [9:49] able to avoid a tax increase this year. [9:52] This budget also makes strategic [9:54] investments in areas where we know we [9:55] need to do more. Cybersecurity is one of [9:57] them. [9:59] Provo has only one time one full-time [10:02] cybersecurity professional. [10:04] For a city of our size, that opens us up [10:05] to greater threats, even with excellent [10:07] staffing. [10:09] To prioritize safety more directly, our [10:11] budget funds another full-time position. [10:14] We're also continuing our focus on [10:15] making Provo more business-friendly. [10:17] Improving the building permitting [10:19] process has been a priority since day [10:20] one. [10:21] This budget adds a building inspector at [10:23] no cost to the general fund. We're also [10:25] investing in technology to better [10:27] monitor processes, identify bottlenecks, [10:30] and improve efficiency at a fraction of [10:31] the cost of adding additional staff. [10:34] The hard work in each department to [10:36] identify efficiencies allowed us to [10:38] prioritize our employees who are the [10:39] heartbeat of Provo City. [10:41] We funded a 2% cost of living [10:43] adjustment, providing support for each [10:45] Provo City employee during a time of [10:47] rising costs and global uncertainty. [10:49] We also extended parental leave for new [10:51] parents, showing our commit- commitment [10:53] to being family-friendly and maintaining [10:55] a healthy work-life balance. [10:57] Finally, this budget reflects your [10:58] priorities as members of the City [11:00] Council. [11:01] We worked together to prioritize [11:02] investments in your key priorities: [11:04] increasing home ownership, improving [11:06] Provo's economic development, and [11:08] optimizing investments in code [11:10] enforcement. [11:11] Our team worked tirelessly to deliver [11:13] fast turnaround on each of these council [11:15] priorities, and with your help, secured [11:16] appropriations which allowed us to fund [11:18] some of them this fiscal year, [11:20] generating savings for the FY27 budget. [11:23] By making strategic investments across [11:25] these areas, we are delivering long-term [11:27] savings while improving quality of life [11:28] for those who live, work, and play in [11:30] Provo. I could not be more excited for [11:32] the year ahead and the opportunities we [11:34] have to strengthen Provo. Thank you for [11:36] your partnership and collaboration. I'm [11:38] going to turn the time over to Kelsi. [11:47] Thank you, Mayor. I'm Kelsi Zabriskie, [11:49] the budget officer for Provo City. And [11:52] as the Mayor [11:53] already said, we're pleased to submit [11:54] the proposed budget for the city for [11:56] fiscal year fiscal year beginning July [11:58] 1st, 2026 and going through June 30th, [12:01] 2027. The budget is a result of many [12:04] hours of contributions from the council. [12:06] Thank you for sitting through so many [12:07] budget presentations during your work [12:08] meetings. [12:10] Also, city staff, we've had department [12:12] directors very involved with budgets. [12:14] Their staff have been integral to [12:16] getting all the numbers put together. [12:18] And then, of course, city leadership in [12:20] the mayor's office with Scott and Mayor [12:22] Jenkinson, [12:23] Deputy Mayor Kyle Frient, helping us [12:26] through the whole process. [12:28] Dan Fola is the administrative services [12:30] director who's integral in leading the [12:32] process and also providing invaluable [12:36] feedback. He's at a conference this [12:38] week, otherwise he would be here, but [12:40] we're very grateful for Dan's support. [12:41] And then, I have to give a major [12:43] shout-out to Andrea Wright, our budget [12:45] analyst. She is [12:47] absolutely invaluable. She is very good [12:49] at digging into details, asking hard [12:51] questions, working with the departments, [12:52] and she put the whole budget book [12:53] together. So, thank you, Andrea. [12:57] I want to just [12:58] Tonight is the delivery of the tentative [13:01] budget to the council. The tentative [13:03] budget is kind of the state code's way [13:04] of saying proposed budget. So, this is [13:07] not the final budget by any means. I [13:09] want to give a timeline of what that's [13:11] going to look like just so the public [13:12] and the council are all aware. [13:14] So, tonight is the delivery of the [13:16] proposed budget. It's available online [13:18] now. I'll go to that in a minute. May [13:20] 12th, next council meeting, the council [13:23] will tentatively adopt the tentative [13:24] budget. Again, it's just a fancy [13:27] code state code way of saying the [13:29] council is acknowledging through a [13:31] resolution that they've received the [13:34] mayor's proposed budget. It's still not [13:36] the final budget next week, okay? [13:39] Then we skip ahead to June 9th. There's [13:41] a public hearing for the budget on June [13:44] 9th. [13:45] And then there's a second public hearing [13:47] on June 23rd. [13:48] And that June 23rd meeting is most [13:50] likely when the budget would be adopted. [13:53] June 30th is the state deadline for [13:55] actually making sure that budget is [13:57] adopted and ready to go for the July 1st [13:59] start of the fiscal year. [14:01] So, there's still 7 weeks of time to [14:04] review the budget, get public input. [14:06] It's not final, um but we are very proud [14:10] of the work that we've done and it is a [14:12] balanced budget and we're excited for [14:14] everyone to dive in and look at it. [14:16] Now, how do you access the tentative [14:18] budget now that it's available? [14:20] You can go to provo.gov and just [14:22] straight from the home page there's a [14:24] transparency portal link. You click on [14:27] that and there's a financial section. [14:28] It's the second drop down. [14:30] From there you can go to budget and [14:32] financial reporting. It's an icon with a [14:34] bar graph. And then you can [14:37] uh see the annual budget section and [14:39] under there there's a link for the 2027 [14:41] tentative budget. [14:42] So, it's there and the mayor's letter [14:45] that she just read is included in that [14:46] document. There's a budget highlight [14:49] section that finance puts together [14:51] starting on page 19 of the tentative [14:53] budget. It's a six-page summary that [14:55] basically captures the bulk of what is [14:58] included in the budget in terms of new [15:00] changes, new requests that were added, [15:03] any fee um updates, and so on. [15:07] And I just kind of want to [15:08] walk through a few of the categories in [15:10] the budget highlights. I'm not going to [15:11] read the whole letter, [15:12] but just thought it would be useful for [15:14] people to know what they can find in [15:15] there as a starting point. [15:17] So, it goes through funding sources. It [15:20] identifies um Oh, thank you, Kevin. [15:23] This is page 19. [15:26] I think actually page 20 is [15:29] where you can like see where the fees uh [15:31] it talks about fees and how you can [15:32] access a summary of fee changes in the [15:34] appendix, the very back of the budget [15:36] sheet. That appendix is on page 41 page [15:39] 149. So, feel free to dive into there. [15:42] You don't have to go to that page right [15:44] now, Kevin, but um it just summarizes [15:47] all the changes. So, if you have [15:48] questions about fees after reading that, [15:49] we're happy to answer any questions, but [15:51] we tried to go through and show what the [15:54] impact is and what the reason for fee [15:56] changes were. [15:58] um [16:00] The budget highlights talks about [16:01] utility rate changes. It talks about [16:04] property taxes, which to emphasize what [16:06] the mayor already said, there are no [16:08] recommended property tax increases in [16:10] the budget. That applies to property [16:12] taxes that contribute to general [16:13] operations in the general fund, and it [16:15] also applies to property taxes that [16:17] contribute to the library. So, no [16:19] recommended property tax increases in [16:21] the proposed budget. [16:23] um It talks about personnel elements [16:25] that are funded, and then if you go to [16:27] page [16:29] 22, [16:30] there are some tables that start to talk [16:33] about the funded supplemental requests. [16:35] So, the mayor talked about this. Uh any department [16:40] that had a need for increased budget [16:44] needed to submit what we call a [16:45] supplemental request, and that was [16:47] basically saying, "Here's our need, [16:50] here's the cost." And this was a big [16:52] push this year from the mayor's office [16:54] was to make sure that any request [16:56] included proposals for offsetting the [16:58] cost increases. And so, the tables that [17:01] you can you can see on the bottom of [17:02] that page, um there's a few different [17:05] columns. There's a column that shows [17:06] what department or division made the [17:08] request, what the request was, the [17:10] amount, the proposed funding source, [17:13] the benefit, and then if there was a [17:15] full-time equivalent impact in terms of [17:17] personnel. So, hopefully that's a great [17:19] place to start looking and seeing what [17:21] requests were funded. And just know that [17:23] there were a lot of requests that were [17:25] granted because departments were able to [17:27] successfully identify offsets to those [17:30] funding increases, whether that was [17:33] through strategic cuts in their budgets [17:35] that they already had or through some [17:37] identified revenue sources. [17:41] Ultimately, we welcome you and encourage [17:44] you to carefully review the budget [17:46] highlights in the entire budget [17:47] document. [17:48] We welcome the input of Provo residents [17:50] as we proceed through the process of [17:51] adopting the city's annual budget. And [17:53] as always, finance staff is at your [17:55] disposal to respond to questions and [17:57] assist the council [17:59] in any way you'd like over the next [18:00] several weeks. We believe that you'll [18:01] find this budget responsive to your [18:03] concerns and aspirations and [18:04] forward-thinking as we plan for the [18:06] future of the Provo community. And with [18:08] that, [18:11] we give you the FY27 budget. Thank you. [18:17] Kelsey. [18:18] And I know there's a lot of um work that [18:20] goes into this. [18:22] Um is there any council discussion on [18:24] this [18:25] item? [clears throat] [18:26] Just a couple of questions. Councilor [18:28] Garrett. [18:30] Um Kelsey, you reported in our work [18:32] session last uh Tuesday [18:36] that um [18:37] the estimated increase in sales tax and [18:40] other revenue was about 6.2 million, but [18:44] that that estimate had not been was 2 [18:46] months old. Mhm. [18:48] And we would anticipate the uh current [18:51] estimate by this week. I see here you're [18:54] showing an increase [18:56] in sales tax revenue of 3.6. Where did [18:59] that figure land overall? [19:02] Did it go from 6.2 to 3.6 or were there [19:04] other revenues included? I think I I'm [19:07] trying to remember the 6.2 number. I [19:09] know [19:10] that sales tax we had originally [19:12] projected higher, but just based on what [19:14] we were seeing, we wanted to make it [19:15] [clears throat] a little bit more [19:16] conservative. [19:17] >> Higher than 3.6 where it landed? [19:19] 3.6 is where it did a 3.6 million dollar [19:22] increase compared to the fiscal year 26 [19:24] budget. [19:24] >> Yeah. So sales tax did go up quite a [19:26] bit. I I'd have to look back at that [19:29] presentation. It might have been like an [19:30] overall like amount Yeah. [19:33] >> on that slide. I'm trying to remember [19:34] the slide. [19:35] >> Right. But yes, sales tax did definitely [19:38] um go up in the fiscal year 27 budget [19:41] compared to fiscal year 26 budget. And [19:43] we were there are a few reasons for that we discussed in the last work [19:47] meeting. [19:48] Okay. [19:48] >> help answer your question? I don't know [19:50] if I fully got there. Uh yes. Um that's [19:53] a good start. And then can we anticipate [19:56] that uh [19:57] we have here this [19:59] summary of positions that have been [20:01] added. It is it fair to say that most of [20:04] the um increased budget was allocated [20:07] for um [20:09] additional position staffing positions [20:11] or [20:12] um I I would say well, personnel costs [20:16] those those were built in there there in [20:18] the budget highlights, there's a [20:19] personnel elements that kind of goes [20:21] through the personnel cost. We could get [20:23] a breakdown of the exact impact of [20:24] personnel cost increases. In terms of [20:27] like new positions being added, [20:29] yes. [20:31] I I would have to go through and like [20:32] add everything up, but there were some [20:34] full-time positions added. [20:36] There were also [20:40] But again, it's hard cuz there were [20:41] offsets. You know, like the firefighter [20:43] positions were a good example of how we [20:46] added [clears throat] positions, [20:47] but we also reduced overtime. [20:50] >> Okay. [20:52] Yeah, I'm just looking for some helps as [20:54] I look through this to kind of [20:55] anticipate where those additional [20:57] revenues might have been placed. I saw [20:59] in the mayor's letter several references [21:02] to new positions and cost of living [21:05] adjustment. And so just interested to [21:08] anticipate where we can see that [21:11] increased revenue reflected. And I guess [21:14] this might be helpful, but each of the department pages, they have [21:19] tables that show his historical like the [21:22] actuals and then it shows the FY26 [21:25] adopted budget numbers. [21:28] Then there's an adjusted budget column [21:29] which accounts for any carryovers or [21:31] mid-year appropriations from the council [21:33] that have been built in. And then it [21:35] shows the FY27 budget, but you can kind [21:37] of see like if revenues have gone up a [21:38] lot between the FY26 numbers and FY27. [21:42] That's a good starting point and we can [21:44] also [21:45] provide a summary if that's helpful, [21:47] too. Okay. Well, I'll let you I'll let [21:48] you know. Okay. Thank you to you, to [21:51] staff who have worked with you on this [21:52] budget. Um a special thanks to the [21:55] administration for um highlighting [21:58] council priorities and for presenting a [22:01] balanced budget that will not require [22:03] tax property tax increase, so [22:06] um special bonus. [22:08] Right. [22:09] Thank you. [22:11] Councilor Bogda. [22:12] Kelsey, [22:14] when will we get the consolidated fee [22:15] schedule? [22:17] I have a redlined version that I can [22:19] send to council tonight if you'd like. [22:22] Please. But there is also I mean, the [22:25] consolidated fee schedule is really [22:27] long, so I would definitely start with [22:28] the summary of fee changes at the very [22:30] back of the budget book just to start to [22:32] understand what they would be. [22:34] Great. But we asked for the rec for [22:37] parks and recs 3 weeks ago and we still [22:40] have not received it. [22:41] >> Oh, I have all of that. I'm happy to [22:42] give it to you. And so yeah, they they [22:45] haven't followed up on what they were [22:47] supposed what they were asked to bring. [22:49] So yeah, if we could see that, that [22:51] would be great cuz I'm noticing here [22:52] that there's stuff in the rec center, [22:54] but it's not like exact numbers or s- [22:56] Yeah, there were quite a few changes and [22:58] so it just seemed [22:59] better to summarize it in the actual [23:01] budget book, but I did I have the whole [23:02] schedule, so I'm happy to send that to [23:04] you. [23:05] Thanks. I appreciate that. And thank you [23:07] for your time and effort on this. [23:11] Anyone else? [23:15] All right. Thanks, Kelsey. Thanks, [23:16] Mayor. [23:19] All right, there's no objection. We will [23:20] now adjourn the Provo City Council and [23:22] convene as the RDA Governing Board by [23:24] unanimous consent. [23:27] Next, a presentation of Oh, we'd like to [23:29] recognize that Travis Hoban has joined [23:31] us. [23:32] Next, a presentation of the tentative [23:33] budget for the Redevelopment Agency of [23:35] Provo City for the fiscal year beginning [23:37] July 1st, 2026 and ending June 30th, [23:40] 2027. [23:41] They'll be presented by Kelsey Zaruba [23:43] again. [23:48] Thank you. This is pretty short. [23:50] Basically, the Redevelopment Agency [23:52] budget is listed in the Provo City [23:53] budget document on page 143. [23:57] Again, this is not a final budget. It's [23:58] just a proposal. Um I know Melissa [24:01] McNally, our Redevelopment Agency [24:03] Director, worked to put this together, [24:05] so we're grateful for her input on that. [24:09] Any questions? [24:14] Does it look like it? Thanks, Kelsey. [24:15] >> Thank you. [24:20] All right. Any discussion on that? [24:24] There's no objection. We will now [24:25] adjourn the RDA Governing Board and [24:27] convene as the Storm Water Service [24:28] District Governing Board by unanimous [24:30] consent. [24:32] Uh presentation of the tentative budget [24:34] for the Provo City Storm Water Service [24:36] District for the fiscal year beginning [24:37] July 1st, 2026 and ending June 30th, [24:40] 2027 will also be presented by Kelsey [24:43] Zaruba. [24:46] Okay. [24:47] This is the Storm Water Service District [24:49] budget, which is also at the end of the [24:51] Provo City budget on page 142. [24:54] And again, it's just up for council [24:57] review at this point or stormwater board [24:59] review and [25:01] wouldn't be adopted until the second [25:03] council meeting in June. [25:07] Thanks Kelsey. Um [25:09] there was a question, why do we still [25:11] have the storm water service district? [25:13] Is that something we're planning on [25:14] keeping indefinitely [25:16] or now that our [25:18] you know, cuz our building that we [25:19] originally [25:23] formed this district for, we've we've [25:25] done that project. So I'm just wondering [25:27] what the plan is. Yeah, I think the [25:28] board and what we're using this for. [25:31] Really it's it's its own entity [25:34] that was created to help pay off some [25:36] bonds that were paid off a year or two [25:38] ago and I would leave it up to legal [25:40] honestly to decide when [25:42] this is no longer needed. From my [25:45] perspective, we're not really using it [25:47] except to have a lovely little extra [25:50] item on the council agendas, so. [25:52] what are we running through this? [25:54] Like what is So it's anything for the [25:56] stormwater division in public works. [25:58] It's paying, you know, just for the [26:00] storm drain operations and any [26:02] maintenance on the system. And so it is [26:05] part of [26:06] the public works department, but it's [26:07] technically considered its own entity [26:09] just because of the way those bonds were [26:11] structured oh I don't even know 20, 30 [26:13] years ago. So. Okay. [26:15] Thank you. Any questions for Kelsey? [26:20] Councilor Bogdan. [26:22] Gary. [26:25] Any insight on the storm water service [26:26] district? [26:29] Uh not in particular. I think we would [26:30] have to take a look at [26:34] what would need to be done to wind up a [26:36] special service district and [26:38] consult with public works. [26:41] But once we do that, I think we could [26:43] give some advice on [26:45] whether and when. [26:48] Thank you. [26:49] Good. [26:51] Cuz what I'm hearing is it was created [26:53] for paying [26:54] for getting bonds. Those bonds are paid [26:56] off operationally, it's not different [26:58] and so it's kind of an artifact at this [27:00] point. Is that fair? [27:02] Certainly sounds that way to me. [27:06] I mean, I imagine how the money is used [27:08] is a budgeting question [27:11] which I would throw back to [27:13] finance. [27:14] But in terms of what we need to do to [27:17] unwind the district, we would need to [27:19] take a look at that, I think. [27:24] Okay. [27:25] Can you get back with Justin and let him [27:27] know [27:29] about that? Certainly. [27:31] Thank you. [27:31] >> Be happy to do that. [27:35] Anything else on this item? [27:39] All right. [27:41] And I guess for the public's sake, if [27:43] anyone's listening, [27:45] is [27:46] we This is our first time seeing this, [27:48] like us [27:50] um [27:51] presenting it and [27:53] taking it is is nothing is decided. And [27:56] so we will go through and study this and [27:59] make sure that [28:01] everything aligns with whatever our [28:02] priorities are. And so just the public [28:04] knows this is still like the mayor [28:06] mentioned, I think Kelsey mentioned, [28:07] it's still like a 7-week process and [28:09] this is just the beginning. [28:11] But um [28:13] if there's no objection, we will now [28:14] adjourn the Stormwater Service District [28:15] Governing Board by unanimous consent. [28:22] Recording stopped. [28:25] Hey, Kelsey.