Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Finance topic
No spam. Unsubscribe anytime.
Council declines to move FY25 surplus into local disaster fund; instructs fund balance treatment instead
Summary
Budget staff presented the city's fiscal‑year 2025 carryover report Sept. 23 and recommended several routine carryovers. Council voted 7–0 not to appropriate the year‑end surplus into the state's local government disaster fund and instead to allow the surplus to increase general fund balance. Staff will complete audit year‑end close and report a
Provo budget staff presented the city’s fiscal‑year 2025 budget carryover report Sept. 23 and asked the council whether to place a portion of the FY25 surplus into Utah’s local government disaster fund or leave it in general fund balance.
Budget analyst Andrea Wright reviewed the carryover and year‑end process and said the city closed FY25 with an operating surplus. After accounting for carryovers and statutorily allowed allocations, Wright presented a recommended approach and asked the council whether to place the discretionary portion (approximately $144,000) into the local government disaster fund or to retain that amount in general fund balance. Staff noted the state disaster fund has narrower allowable uses but can help the city qualify for state matching funds during emergency declarations.
Council members discussed the tradeoffs. Several members said the city’s audited general fund balance is healthy (staff estimated the fund balance will remain in the low‑to‑mid 30‑percent range under preliminary numbers) and that leaving the funds in general fund balance preserves local flexibility. After discussion, a council motion to keep the surplus in the general fund (i.e., not appropriate the FY25 discretionary amount to the local government disaster fund) passed unanimously, 7–0.
Why it matters: the decision determines whether a modest year‑end surplus will remain available for local appropriation (general fund) or be earmarked for the restricted state disaster fund, which has limited eligible uses but can secure state matching resources in a declared emergency.
What happens next: staff will finish the FY25 audit and return final audited balances; the council’s motion stands and staff will not move the $144,000 discretionary surplus to the state local government disaster fund.
