Cottonwood Heights holds public hearing on tentative 2025-26 budget; officials outline revenues, debt service and planned transfers

Cottonwood Heights city staff reviewed the city’s tentative fiscal year 2025-26 budget during the June 3 business meeting, outlining projected revenues, expenditures, transfers and a revised debt service obligation after a recent bond sale.

Scott Georges, administrative and fiscal services director, told the council the general fund beginning balance is projected at about $6,500,000, revenue is expected to be $27,572,000 and expenditures just over $24,000,000. Transfers out were listed at $6,143,000, producing a budgeted ending fund balance of about $3,862,000 for the fiscal year, a net decrease of roughly $2,600,000 in the budgeted fund balance.

Georges also noted personnel changes in the tentative budget: a 2% cost-of-living adjustment for employees, a 1% merit increase for civilian employees and an average 3.63% increase for eligible sworn employees not at top of their ranges. He said those compensation decisions reduce costs by about $75,002.94 compared with a prior calculation.

The director told council members the city sold $20 million of its $30 million authorized bonds and closes on that sale the day after the meeting; the proceeds will be wired to escrow to pay off the 2023 bond. Because of the sale, Georges said the city now knows its debt service obligation for the coming fiscal year: $1,314,009.55, updated from an estimate of $1,325,000.

Georges said the certified property tax rate and new growth figure — which will affect property-tax revenue — were expected to be available around June 10 and that staff would update the budget then. He described other major fund summaries: a capital projects fund beginning balance near $1,200,000 with planned roadway and sidewalk projects and approximately $2.1 million in planned expenditures; a stormwater fund maintaining a policy reserve of roughly $500,000; and a community development and renewal fund beginning near $1,900,000, driven by tax increment and rental revenue tied to local redevelopment areas.

A council member raised a question about how the council travel and training budget would be allocated; that council member said they could only support an increase if staff provided a policy dividing the new funds among the five council members and the mayor. Georges responded staff is working on related details and that final adjustments would be made before adoption. The mayor opened the public hearing and, with no in-person comment and no submissions online, closed it.

Staff said the tentative budget is posted on the city website and that the only anticipated changes before final adoption are the certified tax rate/new-growth numbers and any direction the council gives staff in the next two weeks.

The council did not take a final vote on the budget during the June 3 meeting; staff indicated they expect to return with final numbers for adoption at a later meeting once the certified tax rate is available.