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Brighton reports modest revenue gains, plans two‑year budget and reserve drawdown for 2026
Summary
City finance staff told the council the city’s governmental funds show higher year‑to‑date revenues through June but spending and planned reserve drawdowns will shape the 2026 budget; council heard that the city is pursuing a two‑year budgeting approach and a long‑term plan to avoid a future “inflection point.”
Brighton city officials told the City Council at a study session Aug. 26 that governmental revenues through the second quarter are up from last year, but spending and planned capital projects will require drawing down reserves as the council weighs the 2026 budget.
Finance staff said in the presentation that the financial snapshot — unaudited and compiled Aug. 8 — covers governmental funds through June and shows higher revenue year‑to‑date driven largely by timing of receipts. “This data was pulled as of August 8. It is unaudited,” a finance presenter said. City Manager Michael Martinez said the council is working from a two‑year budgeting framework that “gives us 24 months instead of 12 months.”
City finance staff said revenues excluding internal transfers in the governmental funds totaled about $43.9 million through the second quarter, roughly 10.5% above the same period last year, but they cautioned that some increases are timing related. Property tax collections were described as temporarily elevated because of payment timing; sales tax appears higher in cash terms but filings show a smaller increase. The report shows the city has used roughly $3.87 million of reserves to date and the 2026 plan anticipates drawing reserves as part of previously approved capital work, with $28 million in planned reserve spend across several funds.
Across spending categories, personnel costs are up about 10% year over year, reflecting new positions and market adjustments, and operating expenses are also higher. Capital outlay increased in the prior quarter and remains project‑driven; staff cited ongoing work such as the Bridge Street widening, the Brighton RecPlex expansion and the Lehi Reservoir project as major drivers of capital spending.
The finance presentation emphasized sales tax as Brighton’s largest unrestricted revenue source and noted both short‑term fluctuations and a longer‑term trend toward more remote and online sales. Staff reported sales‑tax filings through the second quarter were up about 5.1% compared with the prior year on a filing basis, down from earlier quarterly comparisons, and flagged that November–December collections historically produce the largest sales‑tax receipts.
Why it matters: City officials said the two‑year budget process provides more runway for planning large capital projects and helps reduce year‑to‑year pressure on staff. Martinez and finance staff presented a 10‑year forecast that, after adjustments proposed for 2026, showed no near‑term “inflection point” where revenues fall short of expenses — a result staff said reflects revised assumptions, timing of large capital costs and a plan to restore certain internal charges from utility funds back to the general fund over time.
Council members asked questions about particular revenue lines — utilities, use taxes, oil and gas royalties — and about how the cemetery perpetual care fund is handled; staff said the cemetery perpetual care fund budget reflects a planned transfer of prior‑year interest and that no additional spending is expected from that fund this year. Staff also told the council that grant opportunities have decreased overall and cautioned that the county may seek additional contributions for countywide programs in 2026, a contingency the council should expect to see in later budget discussions.
Looking ahead: Staff said the October budget adoption will include the formal fee and rate resolution and requested council feedback on the assumptions presented at the study session.
