Orem City Council adopts FY2025–26 budget, compensation ordinance and related fund transfers

The Orem City Council held required public hearings and adopted multiple budget and personnel actions for fiscal year 2025–26 during its regular meeting.

The council opened and closed several required public hearings and enacted ordinances and resolutions that together establish the city’s FY2025–26 budget, approve specified compensation increases for certain city officers and adopt related budgets for the Redevelopment Agency and the Special Service Lighting District.

What passed (at a glance):

- Consent agenda: Council approved consent items that included appointments to the library advisory commission and the Utah Valley HOME Consortium interlocal agreement (resolution). The consent motion passed on a voice vote with ayes recorded.

- Ordinance enacting compensation increases (agenda item 9.2): Council held the required public hearing and enacted an ordinance to adopt compensation increases for specified city officers; the presenter said most increases follow standard step increases (approximately 3%) and that these adjustments are included in the adopted budget. The council adopted the ordinance by voice vote.

- FY2025–26 budget adoption (agenda item 9.3): After a presentation of highlights and required public hearings, the council approved the FY2025–26 budget by ordinance. Staff described total revenues increasing by $17 million year-over-year, of which roughly $15 million is new revenues; about $3 million of the increase is in the general fund, roughly $3 million in the water fund and approximately $9 million in the water-reclamation (sewer) fund. The budget increases capital spending substantially, and staff said the largest single capital increase is in the water-reclamation fund to support upcoming treatment-facility work.

Related rate and fee notes included in the adopted budget materials: - Water: staff added a new “water source” fee to recover costs tied to Jordanelle and Deer Creek water-supply projects; base and tiered water rates were also increased. - Water reclamation (sewer): a base-rate and a volume charge increase were included to fund capital improvements at the treatment facility; staff said Linden agreed to pay its share up front and Vineyard will pay over time. - Stormwater: the Equivalent Service Unit (ESU) rate increases from $8.49 to $9.00 to cover operations and inflation. - Recreation: admission fees were budgeted to increase by $0.50 while membership rates were held steady. - Solid waste: no rate increase was proposed for the upcoming year.

Redevelopment Agency and special districts: The council separately adopted the Redevelopment Agency (RDA) FY2025–26 budget and amended the FY2024–25 RDA budget where required. The council also adopted the Special Service Lighting District (SSLD) budget; staff described that SSLD now focuses on repair-and-replace operations after completing LED conversions and that a portion of holiday-lighting costs are borne by the district.

Process and oversight: City staff said the enterprise fund transfer disclosures required by state law were presented for transparency; staff explained the transfers reflect accounting of city-owned facilities and services (for example, water and sewer services used by parks) and that the transfers were already built into utility rates prior to the state’s disclosure requirement. Several council members asked for continued and routine reporting on litigation and claims (related to IRMA presentation) and asked staff to provide required budget reporting to the public and council on the schedule discussed.

Votes and procedure: Most actions were approved by voice vote as recorded on the meeting transcript. Where a roll-call tally or named vote was not recorded in the transcript, the ordinance or resolution was noted as approved in the meeting minutes and the agenda.

Ending: With the ordinances and resolutions adopted, the council adjourned to its related RDA, SSLD and MBA meetings as indicated on the agenda.