Mount Pleasant staff present tentative budget; council asked to scrutinize pay, utilities and capital requests

Mount Pleasant staff presented a tentative municipal budget at a council work session, highlighting higher employee health insurance costs, proposed capital purchases and potential utility rate changes while asking council members to review specific items before final budget hearings.

City staff said the tentative plan balances projected revenue with a combination of operating adjustments and use of retained earnings. "Insurance across the city on the health plan is increasing by about $2,000 per employee," a city staff member said, citing one of the larger pressures on the general fund. Staff also flagged higher bank and payment processing fees tied to online transactions and permit payments.

The tentative budget includes several one-time or discretionary items staff asked the council to examine. Staff identified a $16,000 street tractor lease or purchase, a proposed roofing project and rec-center bathroom remodels estimated at about $75,000, and a $400,000 placeholder for street capital that could be mobilized or left in reserve. Staff said retained earnings are being used in part to balance the tentative budget and that council review could reduce or remove some of these items.

On compensation, staff reported a proposed baseline cost-of-living adjustment of about 3.1 percent and additional merit increases averaging about 2.5 percent for some departments. During the work session a staff member said that, in the tentative document, the mayor and council wages were doubled; staff presented that change as part of the tentative package for council consideration.

Utility funds drew separate attention. The water fund includes two new loan payments that staff said are driving a noticeable increase in the waterfront/water budget. Staff recommended considering a small sewer rate increase in the coming months, saying the sewer fund is projecting an operating loss of about $129,000 and is underfunded for depreciation. On irrigation and metering, staff described a potential state grant program and an alternative path: pursuing an exemption from required household meters because the city already meters water at bulk points and has fewer than the threshold number of customers. Staff cautioned that installing household meters could cost about $1,600,000 and that the state would reimburse roughly 70 percent, creating both timing and battery-life concerns for meters if installation and downstream projects are staggered.

Parks and recreation items were discussed as well. Staff said Wasatch (a partner/operator) has asked the city to reduce its annual pool subsidy; staff reported the budget currently includes $30,000 for pool support but said Wasatch requested a lower amount. Staff urged the council to consider resurfacing the city's splash pad (staff estimated about $5,000 budgeted for repainting and resurfacing to maintain a non-slip surface) and approved maintenance items such as an exhaust fan replacement for the pool mechanical system.

Public safety and grants: staff reported the police department has been approved for an $80,000 grant; because a neighboring city (Fairview) also received an award, staff said the two awards total about $160,000 but that use of those funds could be constrained by how and when the city merges or coordinates services with other jurisdictions. The police presentation also noted a continuing obligation to provide mental-health counseling to first responders under recent law/policy, and that grant funds have covered some of those costs to date.

Staff emphasized that the document presented was tentative. They asked council members to identify items they want removed, scaled back or studied further before the formal budget adoption process. Councilmembers and staff discussed possible next steps, including vendor review for online payment fees, timing of grant funding, and whether to pursue the irrigation-metering exemption.

The work session included routine departmental updates on equipment, pond levels and planned maintenance but no final votes on the budget; staff said formal budget hearings and final council action remain to come.