Provo City Council adopts $319.7 million FY2026 budget; approves retirement, public-safety and housing measures

The Provo City Council on June 3 adopted a $319,675,508 fiscal year 2026 budget and approved a set of ordinances and resolutions that the council said will fund city operations and align several regulatory provisions.

The budget ordinance passed 5-2, with Councilors McKay and Hogan voting no. Council members also unanimously approved: an ordinance amending parking requirements for historic landmark properties to facilitate accessory dwelling units; a resolution to continue Provo’s participation in the Utah Valley HOME Consortium; an ordinance to raise supplemental retirement contributions for sworn personnel who do not participate in Social Security; and an ordinance consolidating police and fire impact fees into a single public-safety impact fee.

Why it matters: the budget and associated ordinances set spending levels and fee schedules that affect city services, utility transfers to the general fund, and personnel compensation for the coming year.

Human resources director Daniel Softley told the council the retirement ordinance would raise the city’s supplemental retirement match for employees who do not participate in Social Security, “allow[ing] Provo City employees who do not participate in the Social Security program, namely sworn police officers and sworn firefighters, to receive up to a 4% match for their 401(k).” The ordinance passed unanimously.

Finance director Dan Follett summarized disclosures required by state law about transfers from utility enterprise funds to the general fund, saying, “The transfer totals $16,362,425 in the proposed 2026 budget.” Follett and other staff explained those transfers and franchise-fee revenues are used to help pay for police, fire, parks and other general-fund services.

Water-rate and tiering debate: council discussion on the budget included extended debate about proposed water-rate tiers and the level of general increases. Councilor McKay urged caution on what she described as punitive treatment of larger residential lots and said, “It makes no sense to me logically that we're gonna punitively hit the larger lots because they are the problem.” McKay said she supported tiering but opposed the larger 3.3% revenue increase she had earlier warned could be excessive; the final budget passed with a majority vote.

Votes at a glance: - Ordinance amending city code on covered parking for historic landmark properties (passage): ordinance adopted, vote 7–0. - Resolution authorizing continued participation in the Utah Valley HOME Consortium (HUD HOME program) (passage): approved, vote 7–0. - Ordinance amending supplemental retirement contributions for employees who do not participate in Social Security (Provo City Code change) (passage): adopted, vote 7–0. - Ordinance consolidating police and fire impact fees into a public-safety impact fee (code amendment) (passage): adopted, vote 7–0. - FY2026 budget ordinance (adoption): adopted, vote 5–2 (McKay, Hogan — no). - Stormwater service district budget (adoption): adopted, vote 7–0. - Redevelopment Agency FY2026 budget (adoption): adopted, vote 7–0.

What’s next: staff will implement the adopted fee schedules and budget allocations. Specific policies referenced during debate — for example, an urban-farming exemption to water rates that council members discussed — were described by staff as draft policy work that will return to the council for ordinance-level action before rate changes take effect.

Council members and department directors said the budget reflects months of presentations and adjustments; they described the package as a balance between retaining staff, funding capital needs and complying with state budget and public hearing requirements.