Lehi reviews tentative 2025 budget; officials flag insurance, litigation and utility pressures

Lehi officials reviewed a tentative budget at a June 12 work session, saying the town is currently well under its projected general-fund spending but noting several cost pressures that could require changes before final adoption.

The budget packet presented at the meeting showed projected general-fund spending of $802,000 compared with roughly $416,000 actually spent to date. Presenters said that difference is largely attributable to expected grant revenue and grant-funded spending that did not materialize this fiscal year. Enterprise funds such as water and electric were discussed separately because state/local rules require amendments if specific enterprise line items are exceeded.

Why it matters: council members and staff said the tentative budget will be refined before the council considers formal adoption later this month, and some enterprise accounts may require amended budgets if actual spending exceeds the line-item limits. Among items highlighted for 2026 planning were an anticipated pay adjustment, higher insurance costs and funding set aside for two pending litigation matters.

Key details

- Adoption timeline: Staff said the council would consider approving the budget at a regular meeting scheduled for late June (referred to in the meeting as “the 20 sixth”). Officials said they expect additional fine-tuning between the work session and that meeting.

- General fund: The packet compares the adopted 2025 budgeted general-fund expenditures of $802,000 to year-to-date actual spending of about $416,000. Presenters attributed much of the gap to grants that were expected but not received and to grant-funded expenses that therefore were not spent.

- Enterprise funds: The town's enterprise funds (water, electric, gas) are treated like businesses in the budget. Staff noted an example in the water utility: a line-item budget of roughly $238,000 versus year-to-date spending of about $151,000. The presenters cautioned that if a line item in an enterprise fund exceeds its appropriation, the council must adopt an amended budget for that fund.

- Utilities and substation: Officials described a nearly completed substation project intended to roughly double local distribution capacity because the town’s existing substation is at about 98% capacity. The substation had been estimated previously at about $350,000; presenters said the project has come in materially below that estimate but did not provide a final total during the work session.

- Personnel and pay: Staff proposed a 2.5% cost-of-living adjustment across staff in the draft budget. Separately, presenters asked council members to consider a small hourly raise for a part‑time employee, Elena, who was described in the meeting as earning $14 an hour. No formal compensation action was taken in the work session.

- Insurance and litigation: Presenters said employee insurance premiums rose substantially; the draft budget includes a roughly 13% insurance increase to provide cushion. Staff also proposed additional budget capacity for two ongoing litigation matters and said they had increased litigation-related line items in the 2026 draft.

- Rodeo and arena maintenance: The packet retains a $5,000 rodeo line (characterized in the meeting as largely money in/money out). Council and staff discussed whether increasing the rodeo budget and paying a contractor to manage the event could make the event sustainable. They also discussed basic arena maintenance — adding sand, replacing panels that form the riding arena and potentially acquiring or contracting for a smaller tractor to groom the arena. No procurement or contract decisions were made at the work session.

Process, next steps and constraints

Staff emphasized that the general fund must balance across line items but that within the general fund some line items can be over or under so long as the bottom line remains within the adopted general-fund appropriation. By contrast, enterprise fund line-item overruns generally require a formal amended budget. Presenters said they would continue to refine line items and bring the tentative budget to the regular meeting for possible adoption in late June; they also said the council can amend budgets later if necessary.

The work session closed with a motion that carried by voice vote to end the session; the meeting record does not list individual vote names or a roll-call tally.

Ending

Staff and council members said they will continue fine-tuning the budget packet before the regular meeting later this month and will return to the council with any recommended amendments or clarifications.