City staff propose $118.4 million budget opening to fund waterline, airport, IT and capital projects

South Ogden City staff presented a proposed budget opening totaling $118,395,800 at the May 6, 2025, council work session, saying the package would recognize loan proceeds, grant revenues and excess investment income and move funds across city accounts.

The proposal matters because it would recognize a WIFIA/state loan for the city’s waterline project, provide FAA match and equipment funding for the airport, accelerate IT and facilities replacements, and move money into several capital projects and holding accounts that administration says are needed to proceed with planned work.

“It’s total increase to the city budget of a hundred and 17,000,000 with an additional 646,000 also being increased to the strike force funds. So the total budget action is a hundred and 18,395,800,” the staff presenter said. The package combines amounts carried forward from investment gains with newly recognized state and federal awards.

Key elements described by staff include:

- Water fund: Recognition of state/WIFIA loan proceeds for the waterline project, described in the presentation as an $87,500,000 increase to the water fund to reflect funds received for the project and associated project activity in the canyon.

- General fund transfers and investment earnings: Staff said the city exceeded the 35% fund-balance threshold in the audit by roughly $4,000,000 and now expects to recognize about $3,000,000 in excess interest this year; the two amounts (roughly $7,000,000) would be appropriated and transferred into targeted funds.

- Airport: Staff proposed transferring about $1,400,000 into the airport fund to provide local matches and recognize grant awards for runway and apron work and equipment. The presentation said the city would look to purchase a surplus ARFF (airport rescue and firefighting) truck from Salt Lake City for about $120,000 to add redundancy.

- IT and facilities: A $650,000 transfer to the IT fund was proposed to replace computers that cannot be updated to supported operating systems and to sustain a 3–5 year replacement cycle. Another $400,000 was proposed for facilities to fund HVAC improvements and equipment for a police virtual training room after an unsuccessful grant application.

- Golf fund and Mount Ogden: Staff proposed $400,000 toward irrigation CIP work and $350,000 for replacement of the fence between Mount Ogden Golf Course and Mount Ogden Park. Of the $350,000 fence cost, staff said $260,000 is available from three years of municipal ramp funds and the remaining need is $88,000.

- CIP and buildings: The package includes $700,000 toward roof replacements (Union Station and Golden Hours) and a $2,800,000 holding allocation for Union Station campus and museum work.

- Refuse and fleet: Staff proposed appropriating money to replace refuse trucks in groups (five this year, five next year) and recognizing fleet purchases tied to airport and other equipment needs. The fleet fund increase was described as $1,600,000.

- Grants and other recognitions: The proposal recognizes more than $1 million in newly awarded grants across departments, a clean-fuel grant covering roughly 25% of a new fire truck (about $300,000), and Narrow Gauge Preservation Foundation funds tied to a locomotive inventory. Staff also proposed increasing the strike force fund budget by $646,000 to address an audit finding.

Staff said some funds would be transferred to RDA accounts to cover asbestos removal and demolition for the Aspen Care facility at 2225 Madison and to recognize reimbursements for RDA projects. The RDA budget opening discussion noted $480,000 to be used toward airport terminal improvements from an expired Hinckley-area RDA balance.

Council members asked questions about investment terms, planned materials for the Mount Ogden fence (staff said steel posts and schedule 40 pipe would be used), the timing of refuse truck orders and the source of Centennial celebration funding. Staff explained the Centennial expenses were covered by a mix of general fund contingency and previously recognized grant awards and said the detailed ordinance and budget documents would be before council for formal action.

The item was described as scheduled for formal consideration at the upcoming council meeting on May 20; at the work session it was a staff presentation and discussion only, not a formal council vote.

Administration and staff repeatedly emphasized that portions of the proposed appropriations represent transfers between internal funds and the recognition of grant or loan proceeds rather than new taxes.

The work session packet includes project photos and more line-item detail that staff said would be part of the agenda materials when the council is asked to consider the ordinance.

The council did not take a final vote on the budget opening at the May 6 work session; staff said the ordinance would appear on the May 20 agenda for council consideration.