**fy2022 citizens budget**
TRANSCRIPT
PR
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PREPARED BY MUNICIPAL COUNCILSTAFF WITH INFORMATION BASED ONTHE ADOPTED BUDGET FOR THE 2022FISCAL YEAR
20
22
FISC
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YEA
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PROVO MUNIC IPAL COUNCIL351 W CENTER STREET , PROVO801-852-6120
The City uses General Fund revenues to pay for Cityservices provided by various City departments. TheGeneral Fund derives its revenues from threeprimary sources: taxes, fees, and transfers in (eachyear, 11% of utility revenues are transferred into theGeneral Fund, which helps to keep property taxeslower). The total amount of revenues in the GeneralFund this budget year is $73.9M (see graph).
Fees approved by the Council as part of the annualbudget are listed on the Consolidated Fee Schedule(CFS). The City charges fees to offset costsassociated with these services. The CFS can befound here. (https://bit.ly/3vw5Bl6)
GENERAL FUND REVENUES: $73.9M
TOTAL REVENUES: $328.6MFor fiscal year 2022, the estimated amount of Provo’s total revenues is approximately $328.6 million (M) (FY2022 Provo City Adopted Budget pg. 32). The most significant revenues come from sales for utility services($113.4M), grants ($42M), and fees ($27M).
The table below shows a historical graph of sales and propertytaxes as compared to population growth. Sales tax revenue hasoutpaced population since the 2008 recession, even whenadjusting for inflation. Property tax, when adjusted for inflation,has remained remarkably flat despite new development andincreased home values.
REVENUE SUMMARY
P R O V O C I T Y ’ S F Y 2 0 2 2 A D O P T E D B U D G E T A S S U M M A R I Z E D B Y C O U N C I L S T A F F
Source: FY 2022 Provo City Adopted Budget p. 36
Source: FY 2022 Provo City Adopted Budget p. 36; census.gov
SALES AND PROPERTY TAX REVENUES: $29.6M (COMBINED)
pg. 2
The General Fund pays for functions typicallyassociated with municipal government (e.g.police, fire, streets, parks & recreation, etc.) andreceives its revenues from taxes, fees, andtransfers in.
Enterprise Funds are government-ownedfunds that sell goods and services to the public(e.g. power, water, airport, etc.) and must abideby the same generally accepted accountingprinciples that private companies do.
Internal Service Funds primarily provide eitherbenefits or goods and services to other fundsand departments within the city on a cost-reimbursement basis with the goal to breakeven rather than turn a profit.
TOTAL EXPENSES: $333M
EXPENSE SUMMARY
P R O V O C I T Y ’ S F Y 2 0 2 2 A D O P T E D B U D G E T A S S U M M A R I Z E D B Y C O U N C I L S T A F F
The City budget is split into six funds to helporganize and track expenses and revenues.
Source: FY 2022 Provo City Adopted Budget p. 32
The breakdown of the General Fundbelow shows the 11 departments acrossProvo City and the funding they receivein order to continue their duties andoperation. Transfers out of the GeneralFund go to other funds for differenttypes of activities. Major transfersinclude $3M for roads and $1.8M foremergency response.
GENERAL FUND EXPENSES: $73.9M
Source: FY 2022 Provo City Adopted Budget p. 39-40
Capital Improvement Funds are used to account for resources designated to construct governmentalcapital assets that may require more than one fiscal year for completion. More detailed information isfound on pg. 4 with a summary of capital project expenditures.
Special Revenue Funds are accounts established by a government to collect money that must beused for a specific project. These funds provide an extra level of accountability and transparency totaxpayers and signify that their tax dollars will go to an intended purpose.
Debt Service Funds are presented thoroughly on pg. 5 with a summary of all bonds issued by the city.
pg. 3
PUBLIC SAFETY &ADMINISTRATION
BUILDINGSReplacement of City
Administration and PublicSafety (Police, Dispatch,
Emergency Operations) buildings
Estimated ExpenditureFY2022:
$38.7M
The Capital Improvement Plan consists ofthe construction and maintenance of theCity’s infrastructure and capital assets(tangible property with a useful life of at leastthree years that costs more than $5,000).
Capital projects are funded through differentrevenue streams (i.e, bonds, loans, grants).The replacement of the Public Safety andCity Administration buildings will be fundedby the bond authorized in 2018. The AirportTerminal construction will be funded by grants, and the Wastewater projects arefunded through the Capital ImprovementPlan Fund balance and grants.
CAPITAL PROJECTS
The circles below shows significant capital projects scheduled to take place during fiscal year 2022.The five-year Capital Improvement Plan for 2022 can be viewed here. (https://bit.ly/3hSZoM7)
FY2022 CAPITAL PROJECTS: $168M
Source: Provo City Five-Year Capital Improvement Plan, 2022
REGIONALSPORTS PARK
Construction of a new 22 fieldsports park with supporting
facilities for tournaments and recreation programs
Estimated ExpenditureFY2022:
$9.1M
WASTEWATERRECLAMATION
PLANTBuilding of new wastewatertreatment plant on existing
property
Estimated ExpenditureFY2022:
$28M
CANYONROAD PARK
Creation of a neighborhoodpark in Canyon Road that
will also function as a basinfor storm water runoff
Estimated ExpenditureFY2022:$4.7M
P R O V O C I T Y ’ S F Y 2 0 2 2 A D O P T E D B U D G E T A S S U M M A R I Z E D B Y C O U N C I L S T A F F
Airportconstruction
during FY2022 isbeing covered by
grants.
pg. 4
State statute limits the amount of generalobligation debt a governmental entity may issueto 4% of its total assessed valuation.
As of 2019, Provo City; estimated propertymarket value of $10.5 billion. Calculating thedebt limit at 4% of estimated market value givesan estimated debt limit for the City of $418.6M.
This debt limit is higher than the City’s June 30,2020 current outstanding general obligationdebt of $99.2M which is 24% of the City’s legallimit (see graph on the right). That leaves anunused legal debt margin of $319.3M.
TOTAL CITY BONDED DEBT: $147.5MThe City has bonded debt outstanding of $147.5 million (M). Of this amount, $108.1M is general obligation debtbacked by the full faith and credit of the Provo City government. The remainder of the City’s bonded debt,$39.4M, represents bonds secured by specified revenue sources (i.e., revenue bonds, whose principal andinterest are payable exclusively from a designated revenue source or enterprise fund) (see table below).
General Obligation (GO) bonds are funded through property taxes paid by citizens, which is the case of the2018 City Hall/Public Safety Headquarters and Fire Station 2 Building Replacement bond and the 2011Recreation Center Bond, both voted on and approved by voters. Revenue bonds are funded by eachdepartment with revenue from services they provide (e.g., water and power that come from the EnterpriseFund (EF). The exception is the Sales Tax Revenue Bond, which was made feasible by an additional taxincrement.
Debt LimitRemaining: 76%$319.3M
CITY DEBT
P R O V O C I T Y ’ S F Y 2 0 2 2 A D O P T E D B U D G E T A S S U M M A R I Z E D B Y C O U N C I L S T A F F
Source: FY 2022 Provo City Adopted Budget p. 117
BONDCity Center and Fire Station
Recreation Center
Telecom Fiber Network Construction
Energy Facility Building
Water System Improvements
Wastewater System Improvements
Sales Tax Revenue (Airport Improvements)
Stormwater System Expansion
Cemetery Expansion
YEAR2019
2011/2017
2004
2015
2015
2015
2017
2010
2014
TYPEGO
GO
Revenue
Revenue (EF)
Revenue (EF)
Revenue (EF)
Revenue (EF)
Revenue (EF)
GO
BALANCE$63.7M
$26.4M
$16.1M
$15.7M
$8.8M
$7.4M
$7.4M
$2.7M
$1.8M
GENERAL OBLIGATION DEBT FIGURESActual DebtUsed: 24%$99.2M
pg. 5
New Reclamation Plant ProjectsWest Side Sewer Lines
New WellsTreatment Plant Diversion Design and Construction
Water Treatment PlantAquifer Storage and Recovery Pilot Program
Utility infrastructure is any physical or organizational structure that has to do with how your utilities get toyou. Poles, pipes, cables, wires, conduits, and tunnels, along with associated facilities, all are examples of
infrastructure that supplies, distributes, and reticulates crucial utilities throughout the city.
UTILITY INFRASTRUCTURE
P R O V O C I T Y ’ S F Y 2 0 2 2 A D O P T E D B U D G E T A S S U M M A R I Z E D B Y C O U N C I L S T A F F
For the fiscal year of 2022, utility rate increases are intended to keep up with inflation and appropriately maintainpublic infrastructure, with the exception of water and wastewater rates, which are being increased to fundongoing and future utility infrastructure improvements throughout the city. More details on the water and
wastewater fee changes can be found on pg. 149 of the Adopted Budget for FY2022 here. (https://bit.ly/2ToOu6M)
Average monthly water rate
increase of 5% or $2.37
Average monthly wastewater
rate increase of 10% or $6.98
Significant Infrastructure Projects
pg. 6
In response to the economic repercussions ofCOVID-19, in March of 2020, the federalgovernment passed the Coronavirus Aid, Relief,and Economic Security (CARES) Act. This wasthe largest economic stimulus bill in Americanhistory, amounting to $2.2 trillion. A portion ofthese funds were distributed to the City of Provothrough Utah County, amounting to $8,445,460.CARES Act money funded unbudgeted projectsor expenses necessitated by the pandemic if itcould be used or implemented prior toDecember 31, 2020. The City used this money topay for projects designed to keep citizens andCity workers safe while ensuring that essentialCity operations would not be disrupted by thepandemic.
In an effort to speed up the United States’ economic recovery from the pandemic, the federalgovernment recently passed the S1.9 trillion stimulus package known as the American Rescue Plan Act(ARPA). Congress has allocated $45.57 billion to be distributed directly to state and local governmentsacross the country. Cities and counties above a certain size will receive funds directly. While a lot of thedetails are yet unknown and spending guidance is still being finalized, Provo expects to receive about$31.6 million total, divided into two equal payments this year and next. Funds can be used in areasrelated to public health, essential workers, revenue loss based on general revenues, water and sewer,and broadband. The City has until December 31, 2024, to obligate the funds and until December 31,2026, to spend its allocation. The Mayor and Council will be discussing the potential uses of these fundsonce details are made certain.
CARES Act funds were used primarily to coverexpenditures for public safety during thepandemic – one of the approved uses for CARESAct funding. Since those funds covered expensesthat would normally come from the GeneralFund, that displaced monies already budgetedfor public safety. City leaders reappropriatedthese saved dollars to a new fund—the LegacyCIP (Capital Improvement Program) Fund—andproposed several uses for the funds that wouldprovide long term (legacy) benefits to the city.
FEDERAL COVID-19 AID
P R O V O C I T Y ’ S F Y 2 0 2 2 A D O P T E D B U D G E T A S S U M M A R I Z E D B Y C O U N C I L S T A F F
Coronavirus Aid, Relief, and Economic Security (CARES) Act
American Rescue Plan Act
Legacy CIP Fund
Public SafetyTechnologySanitation efforts andequipmentCapital improvements related to physicaldistancing
FUNDED
PROJECTS
FUNDED
PROJECTS
A new Fire Station 1Airport terminal upgradesTools, data, and incentivesto help attract a grocerystore to the West SideCanyon Road Park
pg. 7
Mayor
Michelle [email protected]
ELECTED OFFICIALS
To see the full FY 2022 Adopted Budget, click here. (https://bit.ly/2SBYwkk)City Council • 351 W. Center Street • Provo, UT 84601 • 801-852-6120 • [email protected]
P R O V O C I T Y ’ S F Y 2 0 2 2 A D O P T E D B U D G E T A S S U M M A R I Z E D B Y C O U N C I L S T A F F
Council District 1
Bill Fillmore [email protected]
Council District 2
George [email protected]
Council District 3
Shannon [email protected]
Council District 4
Travis Hoban [email protected]
Council District 5
David [email protected]
City-Wide District 1
David Sewell (Chair)[email protected]
City-Wide District 2
David Shipley (Vice-Chair) 801-427-3989 [email protected]
pg. 8