Spanish Fork council approves FY26 budget revision, adopts crime-insurance requirement and completes parkway reimbursement cleanup

Spanish Fork City Council voted Tuesday evening to adopt its first fiscal-year 2026 budget revision, replace the municipal treasurer’s surety bond requirement with crime-insurance language, and approve an agreement addendum to finish reimbursements for the Spanish Fork Parkway railroad crossing.

The actions came during the Oct. 7 meeting in the council chambers at the Spanish Fork Library, where the council approved the budget ordinance and two resolutions by recorded roll-call votes.

The budget revision increases several carryover and construction line items and includes a proposal to accelerate repayment of an interfund loan. Jordan Hales, staff member, told the council the changes are largely carryovers from projects not completed last fiscal year and routine cost-of-service updates. “Carryover project is something where we budget for the project last year, we didn't complete it, the funds were not used, they fell to reserves. Now, in order for us to spend those funds, we have to re-budget them,” Hales said.

Why it matters: the revision moves funds for multi-year capital work and adjusts the city’s projected general-fund balance. The council and staff said the change keeps construction projects and reimbursement schedules aligned with actual cash flows while preserving overall budget sustainability.

Key budget details cited by staff include: - A proposed early payoff of an interfund loan totaling $1,200,000 tied to a previous water/general-fund transfer made to pay for golf-course irrigation; council discussion characterized this as paying the loan off six years early. - A $5,400,000 carryover for infrastructure work in Burke Industrial Park (near the airport). - Rec center construction carryover moving from the prior $9.1 million budget to about $15.9 million (carryover from last fiscal year was cited). - River-reclamation/trails work reallocated into the streets and storm-drain fund for a trail bridge project; staff said $13–$14 million has been secured for that project and the current year’s budget shows about $2.5 million allocated. - Developer impact-fee reimbursements increased to roughly $2.7 million.

Jordan Hales summarized the general fund effect: the unrestricted fund balance is projected to fall from about $13.9 million to about $12.38 million and the fund’s percentage of revenues is projected to drop to about 23 percent from a previously targeted 25–30 percent range. Hales noted the decrease reflects one-time items and that the city budgets conservatively.

Council action and votes - Consent items A–E were approved by motion of Councilwoman Beck, seconded by Councilman Euler (voice vote: all in favor). - Motion to approve the ordinance for Fiscal Year 2026 budget revision No. 1: moved by Councilman Took, seconded by Councilman Euler; roll-call vote recorded as yes from Councilman Marshall, Councilwoman Beck, Councilman Euler, Councilman Carden and Councilman Took. The ordinance passed.

Treasurer bond/code change The council also voted to amend city code to require crime insurance for the municipal treasurer in place of a traditional surety bond. Vaughn Pickell, staff member, told the council that recent state legislation and guidance from the State Money Management Council make crime insurance a broader protection. “Crime insurance gives more coverage, broader coverage for criminal acts or potential fraud and dishonesty of employees,” Pickell said, and staff proposed setting the coverage amount by the State Money Management Council formula (approximately 2% of the city’s aggregated budget figure cited by staff). The ordinance was moved by Councilwoman Beck, seconded by Councilwoman Marshall; roll-call votes recorded as yes from the council majority and the ordinance was adopted.

Spanish Fork Parkway interlocal addendum Council approved Addendum No. 2 to the Spanish Fork Parkway interlocal agreement to extend the date for final reimbursements tied to construction and landscaping at the railroad crossing. Corey, staff member, described the item as a cleanup measure to allow final draw requests to be processed now that project construction is complete. The resolution was moved and approved by roll-call vote.

What the council did not act on Tuesday Item A (the public hearing on employee compensation ranges) was the subject of an informational public hearing required by state law; no adoption vote on compensation ranges occurred at the meeting. Staff described salary-range methodology and an approximate 10 percent increase for the mayor and council wage midpoint (effective January), annual market-based range adjustments for employees, and separate ranges for executive/municipal employees as required by recent state legislation.

Next steps and context Staff will proceed with the accounting transfers and contract closeouts described in the revision. Councilmembers and staff said they expect to continue monitoring general-fund balances and project schedules and to report back in future meetings on implementation items tied to the budget revision.

Votes at a glance (formal recorded actions from the meeting): - Consent Items A–E: approved (mover: Councilwoman Beck; second: Councilman Euler; voice vote: all in favor). - Ordinance: Fiscal Year 2026 Budget Revision No. 1 — approved (mover: Councilman Took; second: Councilman Euler; roll-call: Marshall, Beck, Euler, Carden, Took — yes). - Ordinance/Code amendment: Treasurer bonds replaced with crime-insurance requirement — approved (mover: Councilwoman Beck; second: Councilwoman Marshall; roll-call: recorded yes by council majority). - Resolution: Spanish Fork Parkway Interlocal Agreement Addendum No. 2 — approved (motion and roll-call; yes votes recorded).