South Salt Lake staff outline contingency plans as federal grant timing delays FY26 budget

South Salt Lake work-meeting leaders and staff on June 11 told the City Council that uncertainty in a federal tax bill and delayed grant notifications have left portions of the proposed fiscal year 2025–26 budget unsettled, and they outlined contingency plans to cover potential shortfalls.

City staff said the most immediate example is a $10,000 Best Buy Tech Center refresh grant that was applied for in November and awarded in January but will arrive on a different cycle than the city’s budget and therefore was not included in the FY26 baseline. The staff presentation also identified a planned $100,000 increase in the arts council salary line to create and fund an executive director position following the retirement of Leslie Allen.

"We did not lose it. We actually applied for it later in the year in November, and then we were awarded it in January," Staff member Crystal told councilmembers when asked why the Best Buy grant does not appear in the current budget. "Later on, when we do receive it, hopefully, then we'll adjust the budget to include that." Councilman Mitchell submitted the questions that prompted the staff update.

Staff told the council that many anticipated grant awards are tied to a federal tax bill moving through Congress and that the bill’s timing — and changes to it — have delayed final grant notifications. "Much of this spending is [tied] in the tax bill that Congress is working through right now," Crystal said. "Our grant providers have been slow to let us know what grants we've received." She said the city expects that bill to take about another month to pass through the process.

To manage the uncertainty, staff said they are pursuing multiple contingency actions: applying for additional grants not previously pursued, seeking foundation funding to diversify revenue, and maintaining internal contingency plans so programs can continue if a grant does not arrive. "We know how much we need to run our programs as they are, and we've been very aggressive in looking for sources of funding for those," Crystal said.

Council members and staff discussed which programs are most at risk. Staff said that first-century program funding (identified in the meeting as a significant uncertain source) is the most vulnerable, but the city has structured its Promise program so that different grants cover separate elements (for example, one grant for salaries and another for programming) to reduce single-point failures at individual centers. Crystal said that in some cases two or three grants may cover salaries at a single site to ensure operations can continue if one award is delayed.

Councilmembers asked for updates when awards are finalized. "We can definitely provide an update when we have more solid numbers," Crystal said, noting that she received multiple award notices on the same day the budget materials were compiled.

No formal budget action or vote occurred during the work meeting. The council excused one member (Paul Sanchez) for the session and noted that Councilmember Bynum was participating online. Staff said they will return with updated numbers to reflect awards that come in after the FY26 budget is finalized.

Details provided during the discussion included the $10,000 Best Buy Tech Center refresh grant (applied for in November, awarded in January) and a $100,000 increase in the arts council salary line to fund a new executive director following Leslie Allen’s retirement. Staff said an approximately $4,000 technology sub-grant was referenced during the presentation for internal replacements but the exact phrasing in the transcript was not fully clear; staff should be asked to confirm the specific amount before publication or budget reconciliation.

The council moved on to other agenda items and did not take formal action on the pending grants or the arts council position during the work meeting.