Santaquin City reports midyear FY2024-25 budget health; council to consider amendment to finish ballfield lights

Santaquin City staff presented a midyear fiscal-year 2024–25 budget update at a Jan. 21 council work session, reporting that general-fund revenues were roughly 56% of the annual projection as of Dec. 31 while expenditures were about 44.76%.

Shannon, a city staff member, told the council that the city received a large portion of its property-tax receipts in December and that an additional payment of about $265,000 posted in January. She said interest earnings were “trending above normal,” and that those combined factors are behind revenues running somewhat ahead of expenditures at midyear.

Why it matters: the midyear position affects several capital projects and a budget amendment the council will consider at its regular meeting. Staff flagged a planned $8 million sewer project coming to council for a guaranteed-maximum-price decision in the next few months, and said finishing carryover projects will draw on savings and affect future interest earnings.

Key figures and near-term items - General fund: revenues ~56% (as of Dec. 31); expenditures ~44.76%. - Enterprise funds: water and sewer revenues reported around 51% with expenditures near 37–38%; some planned meter-change projects have not yet started, making expenditures appear low. - Interest earnings: reported at a high share relative to midyear (Shannon noted interest earnings were “almost 90% at 50% of the year” in one line item), increasing available revenue in the short term.

Budget Amendment No. 3 Shannon summarized Budget Amendment No. 3, which staff plans to place on the council’s regular-agenda public hearing. The amendment contains two items: authorization to spend donated police funds that will send officers to Police Week in Washington, D.C., in honor of Bill Hoosier; and an additional transfer of park impact fees to complete lighting work at Orchard Hills Elementary ball fields.

On the Orchard Hills lights, council and staff said the project has spanned three fiscal years and that a carryover accounting error left insufficient budgeted funds to finish the remaining electrical work. The lights themselves and Rocky Mountain Power infrastructure are in place, but the city needs the final electrical tie-in. Staff estimated the project is about 17% over earlier estimates; Shannon said the additional request is roughly $140,000 to finish the work. She told the council the lights will create a “fully functional nighttime venue” for the coming season once the last electrical work is completed.

Contract award and follow-up Staff told the council that, should the council approve Budget Amendment No. 3, staff would award the final electrical contract to IEC (listed in the agenda packet as IEC contractors) to complete the tie-in. That award is contingent on the amendment’s approval at the regular meeting public hearing.

Other budget notes and operational items - Police vehicles: staff said ordered police vehicles have been delayed by the manufacturer and are now expected “sometime in February.” - Capital purchases: capital funds included recent purchases such as a tire changer and balancer; two Ford F-150s were received after Dec. 31 and are recorded outside the presented snapshot. - Water shares and assessments: Shannon said the city acquired 19 water shares with the Smith property purchase and that the additional shares will increase assessments. In Shannon’s words: “we do have a few more water shares this year because of the purchase of the Smith property and having that those 19 shares come to us. So that's gonna increase at another 22,000 something like that.” - Grants and fire: the fire department reported additional revenue from wildland deployments and two grants not budgeted initially; staff said a budget amendment will likely be used to recognize and spend those revenues.

What’s next Budget Amendment No. 3 will be the subject of a public hearing on the council’s regular meeting agenda; the council will decide whether to authorize use of the donated police funds, transfer the additional park impact fees, and allow staff to award the IEC contract if approved. Staff also flagged the upcoming sewer project GMP decision in the coming months.

Ending Council members thanked staff for the midyear overview and for conservative revenue projections. No formal budget votes were taken at the Jan. 21 work session; the items described above are expected to return for formal action at the regular meeting.