Morgan reviews amended 2025 budget; council discusses West Young Street project, $500,000 transfer and MET tax timing

City staff walked the Morgan City Council through an amended 2025 budget at the June 24 work meeting, saying the document primarily captures capital and road-project timing rather than a sharp rise in operations.

"This is kind of just an annual process where at the end of the year, we look at where we're at and, you know, it's a timing game," said Ty, city finance staff, explaining the amended budget. He said the biggest change is in the road department, where about $1 million of increased appropriation represents using beginning fund balance to finish the West Young Street project.

Staff also reported the council has already transferred $500,000 from the general fund to capital improvements; that transfer was described as complete. The amended budget presented shows the overall increase driven by appropriating fund balance and capital outlay, including raising capital outlay from roughly $1 million to $2 million to contemplate property purchases and other acquisitions.

Council members asked whether the amended budget factored in a proposed municipal energy tax (MET) and the certified tax rate. Ty said the final budget will include the proposed 6% MET tax where applicable, and that the council will discuss the MET tax and the certified tax rate before taking final action. Depending on the certified rate and decisions on MET tax adoption, the city may need to delay final budget adoption until required truth-in-taxation procedures in August.

The council and staff also discussed an item the city expects to finance in part through intergovernmental coordination: the city reported approval from the regional council of governments (COG) to recommend that the county provide $400,000 in corridor preservation funding toward purchasing property near the state maintenance facility (UDOT shed) for a future station/garage site. Staff said the capital plan contemplates purchasing up to two properties and that one of them may be partially offset by the COG-recommended $400,000.

Other notes from the budget review: staff noted a completed generator project previously reflected in grant revenue; interest-rate assumptions raised some revenue estimates in the final budget compared with the tentative budget; and much of the amended budget is a paper adjustment to match actuals rather than new operating spending.

The city scheduled the final budget for the council meeting where members will have time to discuss MET tax and the certified tax rate before deciding whether to adopt the final budget or postpone until required hearings.

The work meeting continued with item-by-item questions on capital and enterprise funds.