MSD briefs Emigration Canyon on funding, road costs and emergency planning

Marla, general manager for the Greater Salt Lake Municipal Service District (MSD), told Emigration Canyon officials at a work session that the district is funded by member sales tax, class B and C road funds and fees, and that Emigration Canyon currently runs a deficit because it lacks a commercial sales-tax base while bearing high road-maintenance costs.

The briefing outlined why the MSD was created, how it manages services for small cities and unincorporated communities, and what options communities such as Emigration Canyon can use to address recurring costs. Marla said the MSD can pool funds and bond to finish large capital projects faster than an individual member could on its own; she cited the canyon road project as an example of a project completed more quickly through pooled MSD resources.

Nut graf: The presentation matters because Emigration Canyon has a large share of capital and road expenses but a limited local retail tax base. That imbalance leaves smaller members subsidized by larger ones in the MSD, and officials pressed staff for clearer financial reports, possible revenue options and emergency-preparedness training.

Marla described the district’s structure and recent changes: the MSD was created under a county-level proposal and, since a 2015 law change referenced as House Bill 35, members that converted from metro township to city gained authority to levy certain taxes. She said the MSD itself has the authority to assess property tax but does not assess property tax for services; instead the MSD’s operating revenue comes from member sales taxes, fees (for example, planning and permit fees), class B and C road funds and grants.

On accounting and transparency, Marla said the MSD uses a consolidated accounting system (Polaris) that keeps each member’s funds separate by state-assigned identification numbers. She said the district spends about $30,000 annually for a single audit that covers all members. The MSD has moved roughly 43 contracts from Salt Lake County to itself and is finishing two remaining agreements with third parties.

On roads and capital projects, MSD staff said roads are the primary driver of Emigration Canyon’s deficit. The district pools capital funding and sometimes uses bonded financing so communities do not have to save for many years to complete projects. Marla said that pooling allowed Emigration Canyon’s recent road work to be completed in about a year rather than over a long local saving period. She also noted broader regional issues, including collapsing storm drains in Magna and Sandy and major UDOT-managed reconstruction projects that can run into the tens of millions of dollars.

On possible additional local revenue, Marla discussed the municipal energy tax (MET). She said Rocky Mountain Power has infrastructure ready to collect a MET and that implementing the tax for Emigration Canyon could generate roughly $86,000 annually, but the community has not yet completed the local steps needed to put it in place. Marla said: “You’re missing out on revenue. Pure and simple. You’re missing out on revenue.”

Officials raised that some grant requests have been denied; one councilmember said a tourism grant application to help maintain a canyon restroom was denied. On justice-court costs, staff said current arrangements charge the MSD for court-related overhead and that justice-court expenses are notably high for some members; staff suggested communities could explore alternatives, including approaching other jurisdictions or the state administration for courts.

Emergency planning and training were a second key topic. Marla described MSD coordination with the county Emergency Coordination Center, UFA (Unified Fire Authority) for response, and FEMA training programs (including tabletop exercises). She said a FEMA course and tabletop exercises are being scheduled and that MSD staff and local officials should participate to understand roles in an incident. “MSD doesn’t take over. We help allocate resources,” she said, describing MSD’s coordination role with response agencies.

On reporting and next steps, MSD staff said they will produce a more informative quarterly financial packet with trend charts and that they will email the presentation materials to the council. Staff also said they will follow up on whether criminal-coverage insurance required by recent legislation is budgeted for each member. Officials requested that meeting minutes and the list of follow-up items be made more complete and accurate.

No policy changes were adopted at the session. The only recorded formal action was a motion to adjourn the work session, which passed by voice vote.

Ending: MSD staff committed to share the slide packet and to schedule tabletop emergency exercises; Emigration Canyon officials asked staff for clearer quarterly financial reporting and said they will consider the MET and other options before taking any fiscal action.