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Council reviews FY26 tentative budget amendments; leaves local government disaster‑fund language for annual decision
Summary
Finance staff presented tentative budget corrections and amendments and asked the council whether to retain language earmarking carryover savings for a local government disaster fund. Councilors signaled support for leaving the language and reviewing the carryover annually in September.
City finance staff presented tentative budget amendments and corrections and discussed carryover language for the local government disaster fund during the June 3 Provo City Council work session.
Budget analyst Andrea Wright explained yellow highlights in the packet represented corrections to the tentative budget and blue highlighted items were new information. She noted the certified tax rate would be available June 9 and that the city would return with final figures. Wright said the amendments reflected actual award amounts for rental rehab and HOME/CDBG programs, payroll corrections and energy capital improvements.
Finance presenter John Burton summarized the ordinance to adopt the Provo City budget for July 1, 2025–June 30, 2026, and flagged a provision from the prior year’s work that would direct “20% or the maximum amount allowed under state law” of remaining general-fund savings to a local government disaster fund. Burton explained the fund’s purpose: to position the city to qualify for low-interest state disaster loans and to hold a portion of fund balance for disaster preparedness.
Council discussion focused on whether to retain the language in the ordinance. Councilor Barton said she preferred keeping the language so it would remain a year-to-year discussion and not be forgotten. Staff clarified the city rather than the state administers the local government disaster fund and that earnings would add to the fund. Staff also noted the fund requires a qualifying disaster declaration to access the state program and that September is the normal time to present carryover recommendations at the end of the fiscal year.
Council members asked about flexibility and restrictions: staff confirmed the fund is restrictive — usable for declared disasters or disaster preparation under state rules — but said leaving the ordinance language in place would trigger an annual September report in which the council could decide whether to transfer any carryover to the disaster fund.
Outcome: Councilors expressed support for keeping the language in the ordinance and reviewing carryover and fund transfers during the September carryover process; staff will return with the revised ordinance and the final budget exhibits (including the updated consolidated fee schedule and pay table) at the June 17 meeting.
Why this matters: The choice affects how year-end general-fund savings are classified — retained in general fund or placed into a restricted disaster fund that could make Provo eligible for state low-interest disaster loans but limits how the money can be spent.
What’s next: Staff will bring the revised budget ordinance, updated exhibits, and any updated fee schedule or revenue changes back to the council for public hearings on June 3 (evening) and the June 17 adoption date.
